Definition of Terms

Basic Salary –amount paid to an employee before any additions as a result of overtime

or bonuses and before any reductions such as taxes and premium payment

Cash flow – the net amount of cash and cash equivalents moving out of a business,

classified into operating, financing or investing activities. Positive cash flow indicates that a

company’s liquid assets are increasing enabling it to settle debts, reinvest in its business, return

money to shareholders, pay expenses and provide a buffer against future financial challenges

while negative cash flow indicates that a company’s liquid assets are decreasing signalling the

need for borrowing to satisfy the business’ operating requirements

Cashier – person primarily responsible for the collection of purchases made by

customers

Consultant – someone who has expertise in a specific area or areas and offers unbiased

opinion and advice for a fee

Contract of Lease – formal document that identifies the lessor, the lessee and the leased

property. It also states the lease terms, rent and the detailed terms and condition of the lease

agreement

Demand – an economic principle that describes a consumer’s desire and willingness to

pay a price for a specific good and service

Depreciation – gradual conversion of the cost of a tangible capital asset or fixed asset

into an operating expense over the asset’s useful life, the objective of which is to reflect

reduction in the book value of the asset due to obsolescence over a fixed period

External Auditor – an independent person that perform an audit in the company in

accordance with specific laws or rules, of the financial statements

 Hiring Policy – is a set of rules and regulations to be followed in hiring the personnel

best qualified for the position

Location –particular place or position

Mission statement – written declaration of organization’s core purpose and focus that

normally remain unchanged over time

Organization – group of people who work together for a particular purpose, especially a

business, society, association, etc

Organizational chart –visual depiction of how a firm intends authority, responsibility,

and information to flow within its formal organization structure

Project Feasibility Study –an analysis of the ability to complete a project successfully,

taking into account legal, economic, technological, scheduling and other factors

Reception – area for receiving and assisting customer

Statement of financial position – financial statement that summarizes a company’s

assets, liabilities and shareholder’s equity at a specific point in time

Target Market – particular group of consumers a company wants to sell its products and

services to, and to whom it directs its marketing efforts

Token – disk of metal used in playing on a machine instead of using money

Vision Statement – defines the optimal desired future state – the mental pictures – of

what an organization wants to achieve over time

Working Capital – financial metric which represents business operating liquidity

computed by deducting current liabilities from current assets