Accounting period - a period of time (month, quarter, year) for which a financial statement is produced.
Accounts payable - represents what a business owes to its suppliers and other creditors at a given time.
Accounts receivable - represents the amount due to a business by its customers at a given point in time.
Accounts receivable aging - this is a scheduling of accounts receivable in order of the length of time that they have been outstanding.
Accrual accounting - a method of bookkeeping in which income and expenses are allocated to periods to which they apply, regardless of when they are actually received or paid. For example, when an invoice is rendered, its value is added to income immediately, even though it has not been paid.
Ad Recall - the measured ability of readers or audiences to remember ads they have viewed in various media and programs.
Address - An address specifies the location of a Web page on the Internet.
Assets - something that your business owns e.g. cash, equipment, inventory or a patent.
Attachment - An attachment is a file that is sent along with an e-mail message. When you include a file with an e-mail message, you are said to be attaching the file, or sending it as an attachment.
Balance sheet - a financial statement showing assets (things you own) and liabilities (things you owe on) at a specific time.
Bandwidth - The amount of data that a communications system can carry.
Bookmark - A bookmark is a link to a Web page, displayed in a menu in your browser. Almost all Web browsers can save links to Web pages so they can be visited later.
Break-even point - this is the point at which sales equal total costs.
Browser - A software application that allows you to surf the Internet. Browsers are also used for e-mail.
Buy-sell agreement - an agreement between partners that gives either party the right to offer to buy all of the other party’s shares in the event of death, retirement, or a disagreement.
Capital - account that represents real ownership and is the difference between the value of the assets and the liabilities. Includes owner's original investment, subsequent investments and profit derived from the business less losses incurred and withdrawals from the owner.
Capital asset - an asset that is purchased for long-term use, such as machinery or equipment.
Cash accounting - a method of bookkeeping in which income is considered earned when received and expenses are not taken into account until paid.
Cash flow statement - a worksheet that shows the flow of cash in and out of a company over a month by month period.
Collateral - an asset can be sold for cash and which has been pledged to a creditor to secure a future obligation. (For example, if you finance a car it is the collateral for the loan).
Consumer Behavior - research that focuses on psychographics, e.g. the criteria for segmenting consumers by life-style, attitudes, beliefs, values, personality, and buying motives.
Cookie - A cookie is a small text file that is put on your hard drive by a Web page to be retrieved later by subsequent Web pages. For instance, if you fill out an online form, the information you enter can be stored in a cookie and retrieved and displayed on another Web page.
Copyright - the legal registration and ownership of the product of a writer, painter, singer, musician, choreographer, photographer or other original creator. The owner of the copyright owns all rights to use the copyrighted material.
Corporate identity - how a particular business is perceived by it’s customers and the rest of the marketplace.
Cost of goods sold - determined for the period by counting the merchandise left at the end of the period (physical inventory) and subtracting its cost from the total cost of merchandise available for sale.
Credit report - a listing of an individual or company’s history of repaying past loans and other liabilities.
Current Assets - Includes cash and other resources that can be converted into cash or used within the normal operations of a business within a relatively short period of time, usually less than one year.
Current Liabilities - debts and other amounts owed to creditors by the business entity due within one year. Includes wages payable, accounts payable, dividends payable, taxes payable, and so forth.
Current ratio - a commonly used method of measuring a firm's short term solvency by indicating its ability to pay current debts from current assets. Current ratio is calculated by dividing current assets by current liabilities.
Cyberspace - Term used to describe the virtual three-dimensional environment created by computer networks in which textual, audio and video electronic signals travel.
Daily cash sheet - form used to track daily all cash coming into a business and all cash going out.
Debt/Equity Ratio - a measure of long-term financial solvency of a firm showing the relationship between borrowed capital and owner's equity. Debt/Equity ratio is calculated by taking long-term debt and dividing it by Total Equity. A high ratio might indicate room for capital expansion.
Debt financing - this is financing in which you get a loan and go into debt. You are obligated to repay the loan at a predetermined interest rate.
Demographics - statistics based on population related factors eg. age, gender, marital status.
Depreciation - decrease in the value of equipment over time. Depreciation of equipment used for business is a tax-deductible expense.
Direct Mail - advertising that uses person-to-person communication through the mail rather than mass media. Advertising is sent via fliers, letters, brochures or reprints.
Distribution channels - elements of the system of delivery of merchandise to customers from the manufacturer or wholesaler, including retailers, brokers, and shipping companies; also includes discussions of store merchandising and cross-merchandising.
Domain name - A domain name is a standard system of names to refer to computers on the Internet. Domain names provide a convenient way for people to keep track of internet computers, and also provide a recognizable presence for organizations on the Internet. The last part is usually a three-letter extension like .com, or a two-letter extension, like .ca.
Download - To download is to transfer a file from a computer on the Internet to your computer. Your browser downloads a file every time it displays a Web page.
Electronic Commerce - Conducting business activities - buying, selling and other transactions - via communications and computer technologies. It includes transactions done by telephone, fax, ABM, credit card, debit card, television shopping, EDI and the Internet.
Encryption - Encryption is the process of scrambling a message so that is can only be read by the party it is intended for. Business transactions on the web and e-mail messages are scrambled, or encrypted, for security reasons.
Entrepreneur - someone who is willing to assume the responsibility, risk and rewards of starting and operating a business.
Equity financing - this involves selling a portion of your company in order to receive funds. In general, venture capital firms such as "angels" provide this type of financing.
Firewall - A firewall is a system (software or hardware or both) used to prevent unauthorized access to a private network from the rest of the Internet.
Fixed cost - a production cost which does not vary much with the volume of output eg. administrative costs.
Focus group - a research discussion group conducted by a moderator that is used to discuss one or more issues about a product or service.
Franchisee - the party that is purchasing the franchise.
Franchiser - the party that is offering the franchise for sale.
Goodwill - an intangible asset that attaches to the successful operation of a business. Favorable factors such as location, product superiority, service reputation, and quality personnel often generate goodwill.
Gross profit - also known as gross margin, determined by subtracting cost of goods from net sales.
Guarantee - pledge by a third party to repay a loan if the borrower cannot. A special case is a PERSONAL guarantee in which you personally guarantee an obligation.
Guerilla marketing - using unconventional methods to make sales.
Home page - A home page is the main Web page of a person, organization, business or collection of Web pages. Also, the Web page that your browser is set to display at start-up.
Income statement - a financial document that shows how much money (revenues) came in and how much money (expenses) was paid out. Subtracting the expenses from the revenue gives the net profit.
Internet - A worldwide, public network of computers where digital information can be displayed and buying and selling of products and services can be conducted. Access is available with telecommunications equipment (e.g. a modem and a telephone line, or cable connection) and appropriate computer hardware and software.
Internet service provider - A company that provides individuals and businesses with access to the Internet.
Inventory Control - the process of maintaining sufficient inventory measures to meet customer needs, weighted against the cost of carrying inventory to determine an appropriate inventory level.
Inventory Turnover (or Turn) - measures the movement of how rapidly inventory can be converted into cash within a period. Turn is calculated by dividing the cost of goods sold by an average inventory amount.
Liabilities - debts and other amounts owed by the business to creditors.
Lien - legal right to hold property of another party or to have it sold in the event that a loan is not paid.
Line of Credit - a revolving form of credit where a bank loans a business up to a specified amount as needed by the firm.
Link - A link is an area on a Web page (often underlined text or a graphic) that, when clicked, instructs the browser to display another Web page.
Login - As a verb, to login is the action of entering a network such as the Internet. As a noun, a login is the actual profile used to access a network and usually consists of a name and a password.
Loyalty - includes programs for increasing customer loyalty including frequent flyer programs, frequent shoppers, etc.; also includes general discussions of consumer brand loyalty and how to increase it.
Marginal Cost - additional cost associated with producing one or more unit of output.
Market - a specific group of people who have needs to satisfy and the ability to pay (purchasing power).
Market Potential - the maximum achievable combined sales volume for all sellers of a specific product during a specific time period, in a specific market.
Market Segmentation - the process of dividing a heterogeneous market into several homogeneous sub-markets.
Market research - the systematic collection, analysis and reporting of data to provide information needed to make marketing decisions.
Marketing - this is the process of planning and executing the conception, pricing, promotion and distribution of ideas, goods and services to satisfy customers.
Marketing Mix - the four sets of tools the entrepreneur may combine to shape market demand and facilitate transactions: Product, Price, Promotion, Distribution.
Marketing Research - the process of systematically gathering, analyzing and interpreting data pertaining to the company's market, customers and competitors, with the goal of improving marketing decisions.
Media Costs - the price of advertising through various channels of communication, such as print, electronic, out-of-home (e.g. billboards) and direct mail.
Media plan - the distribution of a business’s advertising budget to different advertising mediums.
Modem - A piece of equipment that allows computers to communicate through telephone lines or cable.
Net profit - the profit after deducting all expenses from sales.
Net Sales - dollar sales amount remaining when reduced by sales tax and any returns or allowances.
Net Working Capital - the difference between current assets and current liabilities.
Networking - meeting people who can be of help to you and being a help to them.
Non-disclosure statement - this is a form that stipulates that the information that has been revealed is confidential.
Operating costs - what it costs you to do business for any period of time eg. salaries, electricity.
Operating Expenses - expenses incurred directly with the sale of merchandise (selling expenses) and/or those expenses incurred in the general operation of a business (general or administrative expenses).
Overhead - business expenses not directly related to a particular good or service produced. An example would be utilities.
Owner’s equity - the amount of money that owners have directly invested in the business.
Patent - the legal right to ownership of an invention.
Periodic inventory - a physical count of all stocks to determine what is on hand.
Perpetual inventory - a method of keeping up to date records on all inventory items by recording every time an item enters or leaves inventory.
Petty cash - small fund eg. $200 that a company keeps on hand to cover smaller, miscellaneous expenses.
Plug-in - A plug-in is a relatively small piece of software that expands the functionality of a computer application. Browser plug-ins can allow your browser to display video and play sounds.
Point-of-purchase - advertising that targets shoppers within the retail environment. Often aimed at impulse purchases. POP includes counter displays, window displays, store banners, aisle displays, etc.
Portal - A web site that becomes a user's primary starting point for access to the Internet. AOL and Yahoo! are examples of portal sites.
Primary Data - new data gathered to help solve the problem at hand. As compared to secondary data which is previously gathered data. An example is information gathered by a questionnaire.
Primary research - this is when you conduct the marketing research yourself.
Print Advertising - discussions of print advertising that targets members of a profession such as law, medicine, engineering, architecture.
Product mix - the set of all products and items that a particular seller offers for sale to buyers.
Profit & Loss (P&L) Statement - (also income statement) A listing of income, expenses, and the resulting net profit or loss. This is also called an income statement.
Qualifying prospects - process of determining if a person or business is a legitimate candidate to purchase your goods or services.
Quick ratio - assets that can quickly be converted into cash divided by current (payable within a year) liabilities. Shows how much cash could be found quickly if a company gets into trouble.
QuickTime - QuickTime is a technology for presenting video on computers. The QuickTime plug-in lets you view video on Web pages.
RealPlayer - RealPlayer, formerly known as RealAudio, is a browser plug-in that lets you listen to and view sound and video as it is downloaded to your computer.
Sales forecasting - estimates of future sales arrived at by past experience and market research.
Sales Promotion - activities, materials, and techniques used to supplement traditional advertising, includes trade advertising, and in-store media.
Sampling - products offered to consumers usually for free to introduce a new product.
Search engine - Search engines are Web sites that search the Web for information.
Secondary Data - information that has already been assembled, having been collected for some other purpose. Sources include census reports, trade publications, and subscription services.
Secondary research - this is when you use information that has already been conducted for your marketing research.
Secure - If transfer of information over the Internet is secure, it means that encryption software is used to protect the information and prevent it being read or tampered with.
Shockwave - Shockwave (also known as Shockwave & Flash) is a browser plug-in that gives you sound, video, and animation on Web pages.
Shrinkage - loss in inventory or money, due to customer or employee theft.
Smart Card - Sometimes referred to as a chip card is a card containing an integrated circuit that gives it a limited amount of "intelligence" and memory. Smart cards are being used in a variety of ways including identification and to encode information such as a persons medical history.
Sole proprietorship - the simplest (and most popular) form of business organization. The individual is personally liable for all debts of the business to the full extent of his or her property. On the other hand, the owner has complete control of the business.
Solvency - the ability to meet financial obligations on time.
Sweat equity - a common form of investment. Refers to the investment in time owners make, with no salary, to a new business.
Target customer - this is the portion of the target market that you have defined as your prime customers.
Target Market - a specific group of customers at which a company aims its products and services.
Teaser Campaign - advertising intended to tease the public by offering only bits of information without revealing either the sponsor of the ad or the product being advertised. The purpose of a teaser ad is to arouse curiosity and generate attention for the campaign that follows.
Telemarketing - use of the telephone as a medium to generate sales.
Trademark - a name, symbol or other mark that identifies a product to customers, and is legally owned by its manufacturer or inventor.
Transit Advertising - advertising on signs that are located outdoors in public places. Examples include billboards, posters, buses, taxis and painted displays.
Variable cost - any costs that change significantly with the level of output eg. cost of materials.
Venture capital - money used to support a new or unusual undertakings; equity, risk or speculative investment capital. This funding is provided to new or existing businesses which exhibit potential for above-average growth.
Web site - A document or collection of documents stored on a server and accessible to users of the world wide web. Web sites of individuals, organizations or governments are typically accessed first through a home page. Commercial web sites often include software applications that allow consumers to order and pay for products advertised on the site.
Wholesaler - party that distributes manufacturers’ products to retailers and other distributors. Usually, they do not sell to the end-user.
World wide web (www) - A database made up of linked documents. It allows users to jump from screen to screen to view pages with graphics, text and multimedia features.