Doers Only Allowed. We Rehabilitate Procrastinators too.

11819 Members
594 Friendships
Tuwaze Youtube

Common Terms Every Entrepreneur will Encounter

ArticleID 118  
Writer Isaac Thuku
Category Personal Article

Every field of business has a wide variety of terms that are commonly used in daily operations. Here are some terms an entrepreneur faces everyday;

 Angel investors: Individuals who have capital that they are willing to risk. Angels are often successful entrepreneurs who in¬vest in emerging entrepreneurial ventures, often as a bridge from the self-funded stage to the point in which a business can attract venture capital.

 Assets: Items of value owned by a company and shown on the balance sheet, including cash, equipment, inventory, etc.

 Balance sheet: Summary statement of a company’s financial position at a given point in time, listing assets as well as liabilities.

 Break even point: Dollar value of sales that will cover, but not exceed, all of the company’s costs, both fixed and variable.

 Bridge finance: Short-term finance that is expected to be repaid quickly.

 Browser: A computer program that enables users to access and navigate the World Wide Web.

 Business incubator: This is a form of mentoring in which work¬space, coaching, and support services are provided to entrepreneurs and early-stage businesses at a free or reduced cost.

 Business plan: A written document detailing a proposed venture, covering current status, expected needs, and projected results for the enterprise. It contains a thorough analysis of the product or service being offered, the market and competition, the marketing strategy, the operating plan, and the management as well as profit, balance sheet, and cash flow projections.

 Capital: Cash or goods used to generate income. For entrepreneur, capital often refers to the funds and other assets invested in the business venture.

 Cash flow: The difference between the company’s cash receipts and its cash payments in a given period. It refers to the amount of money actually available to make purchases and pay current bills and obligations.

 Cash flow statement: A summary of a company’s cash flow over a period of time.

 Collateral: An asset pledged as security for a loan.

 Copyright: Copyright is a form of legal protection for published and unpublished literary, scientific, and artistic works that have been fixed in a tangible or material form. It grants exclusive rights to the work’s creator for a specified period of time.

 Corporation: A business form that is an entity legally separate from its owners. Its important features include limited liability, easy transfer of ownership, and unlimited life.

 Depreciation: The decrease in the value of assets over their expected life by an accepted accounting method, such as allocating the cost of an asset over the years in which it is used.

 E-commerce: The sale of products and services over the Internet.

 Entrepreneur: A person who organizes, operates, and assumes the risk for a business venture.

 Equity: An ownership interest in a business.

 Home-based business: A business, of any size or type, whose primary office is in the owner’s home.

 Income statement: Also known as a “profit and loss statement,” it shows a firm’s income and expenses, and the resulting profit or loss over a specified period of time.

 Intangible assets: Items of value that have no tangible physical properties, such as ideas.

 Internet: The vast network of networks connecting millions of individual and networked computers worldwide.

 Inventory: Finished goods, work in process of manufacture, and raw materials owned by a company.

 Joint venture: A legal entity created by two or more businesses joining together to conduct a specific business enterprise with both parties sharing profits and losses.

 Liabilities: Debts a business owes, including accounts payable, taxes, bank loans, and other obligations. Short-term liabilities are due within a year, while long-term liabilities are due in a period of time greater than a year.

Common Terms Every Entrepreneur will Encounter
Back   | Next Article  



Post Your Comment Here

Copyright Tuwaze.com© 2013 - 2020 All rights reserved Privacy - Report Bug - Jobs