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Glossary of Business Terms

assets items of value owned by a business or an individual.

balance sheet a statement showing the financial worth of a business at a particular point in time.
blog is short for weblog and is an online diary. It is regularly updated and 'postings' appear in chronological
order. Some blogs are kept by one person, others by a group.
break-even point at which a business makes neither a profit or a loss.
business mix the combination of products and/or services that a business offers and the different types of
clientele that a business provides for.

capital money or assets put into a business by the owner (also known as owner's equity).
cash book record of cash receipts and payments.
cash flow the pattern of money coming in and out of a business.
cash flow budget shows the predicted cash inflows and outflows for a specific period of time.
codes of practice provide advice on how to meet regulatory requirements.
credit sell or buy expecting to make or receive a payment at a future time.
creditor person or business to whom money is owed.

debt amount that is owed.
debt finance method of raising finance by taking out a loan that will be repaid.
debtor person or business who owes you money.
demographic issues issues relating to social factors used to segment a market during market research.
drawings amounts taken out of a business by the owner for personal use.

equity amount of an asset actually owned by a person or business.
equity finance method of raising finance by offering a share of the business.
establishment costs all expenses associated with getting a business started (also known as start-up costs)
expenses outgoing costs for a business.
experts can provide invaluable assistance due to their position and/or understanding of a specific market.

freight transport of goods from one place to another.
fixtures and fittings assets such as shelving, counters, cabinets and light fittings.

goodwill a saleable asset that is based on the relationship that the business has built up with customers and

hire purchase method of paying off an asset by making regular repayments while having the full use of the

income amounts received from the sale of goods or services.
inflow describes cash coming in to a business.

lease a contract between a person who owns an asset and a person who uses an asset that sets out the terms
and conditions of use.
liabilities money owed that under law must be repaid.

market people who might purchase goods or services from a business.
market player a business operation that caters for a particular market.
market research investigation into the characteristics of potential customers.

New Enterprise Incentive Scheme (NEIS) a commonwealth government program that helps eligible
unemployed people start their own businesses
niche market a relatively small but profitable market

outflow describes cash going out of a business.
owner's equity money or assets put into a business by the owner (also known as capital).

premises place from which a business operates.
preventative maintenance regular or scheduled servicing of particular items.

primary source data that has been collected first hand for research purposes.
procedure a set of steps that clearly identifies actions to be taken to achieve a desired outcome.
profit and loss statement financial statement showing the overall profit or loss made by a business for a
particular time period.

regulations legally enforceable rules about how business is conducted.
resources items necessary for a business to operate which can include people (human resources) as well as
machinery, equipment, premises, etc.
risk chance of something happening that will impact upon the business.

secondary sources data that has been collected by someone else and used by you for research purposes.
start-up costs all expenses associated with getting a business started (also known as establishment costs).
stock goods that a business has purchased for future sale.
supplier a business that sells the resources required by another business to carry out its business operations.
SWOT analysis a process where a person looks at personal strengths and weaknesses so as to take
advantage of external opportunities while minimising threats.

taxable income amount of money for which tax is payable after allowable deductions have been made.
trademark a word of mark that indicates legal ownership.

viability how practical or workable a business idea or business operation is.

working capital cash needed to run a business on a day-to-day basis.

zoning divisions used to determine allowed usage of an area, eg commercial, residential.