Business Angel An individual investing in businesses, especially start-up businesses.

Business incubator: This is a form of mentoring in which workspace, 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 Expenditure Money spent on the purchase of an asset.
Capital: Cash or goods used to generate income. For entrepreneurs, capital often refers to the funds and other assets
invested in the business venture.
Cash Book A daily record of payments and receipts.
Cash flow statement: A summary of a company's cash flow over a period of time.
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.
Collateral: An asset pledged as security for a loan.
Companies A Company is a type of business structure created and regulated by state law. What sets the company apart
from all other types of businesses is that a company is an independent legal entity, separate from the people who own,
control and manage it.
Conditions of Payment The written terms under which one must make payment or could seek payment if it was due to
him/her.
Copyright: Copyright is a form of legal protection for published and unpublished literary, scientific, and artistic works that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.
Cost of Sales A term used in a trading account representing the cost of the materials used which, when taken from the sales
figures, gives the gross profit.
Cost Plus Pricing Selling a range of products/services by setting the price on the basis of adding a fixed mark-up to the
total costs of production and associated costs.
Credit Account An agreement made with a trusted customer so that he or she can buy goods or services and pay for them
later.
Credit The period allowed, or taken, to pay for goods or services.
Creditor A party to whom money is owed by the business.
Current Asset A cash balance and other assets intended for conversion in cash.
Current Liability A temporary debt which is capable of being paid off within one year, e.g. creditors, bank overdraft and
short term loans.
Debtors A party who owes money to the business.
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.
Differentiation To make one’s product/service different from others in the market place.
Direct (variable) Costs Expenses, such as materials, which vary according to the number of goods produced or services
offered.
Drawings Money taken out of the business by the owner for personal purposes (sole trader & partnership only).
E-Commerce Conducting business over electronic networks, usually via the Internet.
Economics of Scale Rationalising a business operation to maximise the use of each individual resource so that each is cost
effective; to ensure there is no competition or waste of activities.
Entrepreneur: A person who organizes, operates, and assumes the risk for a business venture.
Entrepreneurship is an activity which leads to the creation and management of a new organisation designed to pursue a
unique, innovative opportunity. Fundamentally, it is about using enterprise to create new business, new businesses and
'can-do' organisations and services.
Equity: An ownership interest in a business.
Exit Route How the company plans to leave the market and possibility, sell up.
Expenditure Expenditure is money that is spent in the course of the business.
Facility Usually a loan or overdraft offered to the business by a bank.
Financial Year The accounting year of a business, the period covered by the accountant.
Fire Fighting Having so much work and so few resources we can only react to events and hence “fire fight” rather then
working to plan.
Fixed Assets Assets such as machinery, land and buildings which the company do not intend to sell and which are intended
for use within the business.
Focus Groups A professionally moderated discussion among a group (four or more participants) of individuals whose
opinions are thought to reflect those of the product's intended purchasers.
Franchise The right to use the name of another company, and to sell its products or services in exchange for a royalty. The
franchisee agrees to abide by the conditions set out in the franchiser’s agreement.
Gearing Gearing is an indicator of a company's ability to service its debt. The higher the proportion of debt to equity, the
higher the gearing.