College+Ready+Vocabulary+-+Business

= Basic Business Terms  = by Nicholas Tart March 18, 2009 []

In order for a young business person to be successful, they have to learn a new set of vocabulary. Certain terms are applicable to all businesses, no matter the size. I have compiled a list of 27 basic business terms all teen businesses should use.


 * 1)  **Accounting –** a system that provides quantitative information about finances.
 * 2)  **Assets –** the value of everything a company owns and uses to conduct their business.
 * 3)  **Business –** an organization that operates with the intention of making a profit.
 * 4)  **Business to Business (B2B) –** one business sells goods or services to another business.
 * 5)  **Business to Consumer (B2C) –** a business sells goods or services directly to the end user.
 * 6)  **Contract –** a formal agreement to do work for pay.
 * 7)  **Depreciation –** the degrading value of an asset over time.
 * 8)  **Entrepreneur –** someone who organizes, manages and takes on the risk of starting a new business.
 * 9)  **Expense –** money spent on supplies, equipment or other investments.
 * 10)  **Finance –** the management and allocation of money and other assets.
 * 11)  **Fixed Cost –** a one-time expense that doesn’t vary with business volume.
 * 12)  **Industry –** a category of like businesses.
 * 13)  **Liabilities –** the value of what a business owes to someone else.
 * 14)  **Management –** the act of organizing and conducting a business to accomplish goals and objectives.
 * 15)  **Marketing –** the process of promoting, selling and distributing a product or service.
 * 16)  **Net Income/Profit –** revenues minus expenses.
 * 17)  **Net Worth –** the total value of a business.
 * 18)  **Payback Period –** the amount of time it takes to recover the initial investment of a business.
 * 19)  **Product –** something produced or manufactured to be sold; a good.
 * 20)  **Profit Margin –** the ratio of profit divided by revenue displayed as a percentage.
 * 21)  **Return on Investment (ROI) –** how much money a business gets in return from an investment.
 * 22)  **Revenue –** the entire amount of income before expenses are subtracted.
 * 23)  **Sales Prospect –** a potential customer.
 * 24)  **Service –** work done for pay that benefits another.
 * 25)  **Supplier –** an organization that provides supplies to a business.
 * 26)  **Target Market –** a specific group of customers at which a company aims its products and services.
 * 27)  **Variable Cost –** expenses that change in proportion to the activity of a business.