Business Terminology Quiz

Business Terminology

• Acquisition Costs: Costs a business incurs for property or equipment.
• Angel Investor: An investor who prioritizes the business's future profitability over immediate return. They typically accept a lower return compared to regular investors.
• Asset: Tangible items owned by a business; examples include office furniture, fixtures, vehicles, and inventory.
• Balance Sheet: A financial document that balances assets against liabilities and owner's equity.
• Benefits: Perks or provisions offered to employees in addition to salary; such as health insurance, retirement plans, and stock options.
• Brand Recognition: Familiarity with a brand of item, service, or company.
• Break-Even Point: The point where a business's revenue equals its expenses.
• Budget: Planned spending for a specific time period.
• Business Milestone: A significant goal or standard achieved by a business, often designated by management.
• Business Opportunity: A potential venture that an entrepreneur evaluates to assess its viability.
• Business Plan: A document outlining a business's concept, target market, and financial needs.
• Business Sustainability: Strategies for long-term profitability and competitiveness.
• Corporation: A business structure suitable for international activities.
• Cash: Government-backed currency used for transactions.
• Cash Balance: Amount of cash a business has on hand.
• Cash Flow: Analysis of cash inflows and outflows over a specified period.
• Chamber of Commerce: Local organization providing information about businesses.
• Check: Written instrument instructing a payment.
• Collateral: Tangible assets pledged as security for a loan.
• Communication: The exchange of information between parties, such as businesses and customers.
• Compensation: Monetary payment for services rendered.
• Compound Interest: Interest calculated on principal and accumulated interest.
• Confidentiality Agreement: A contract ensuring non-disclosure of confidential information.
• Consultation: A meeting between a professional and client to discuss a service.
• Contingency Amount: Extra funds set aside for unexpected start-up costs.
• Copyright: Legal protection for creative works, including print, music, and film.

Business Finances and Operations

• Corporate Structure: How a company is organized for its objectives and management.
• Cost of Goods Sold: Expenses directly linked to the inventory sold.
• Credit Rating: Assessment of a business's ability to meet financial obligations.
• Credit Score: A numerical representation of an individual's creditworthiness.
• Customer: Individual or entity purchasing goods/services.
• Customer Retention: Strategies to retain existing customers.
• Debit Card: Card for electronic funds withdrawal.
• Debt Ratio: Ratio of expenses to revenue over a period.
• Demand: Consumer desire for a product/service.
• Demographics: Statistical data about population groups.
• Earnings Statement: Document that reports profit or loss over a time period.
• Enthusiasm: Passion for work through challenges.
• Entrepreneur: Person starting and running a business.
• ESOP (Employee Stock Ownership Plan): Plan allowing employees to purchase company stock.
• Financial Statements: Documents detailing a business's financial health. These include earning statements, income statements, cash flow statements, and balance sheets.
• Fixed Costs: Expenses that remain constant over a period.
• Franchise: Business using an existing brand with some autonomy.
• Future-Oriented: Focus on future opportunities and challenges.
• General/Limited Partnership: Partnership dissolved on a partner's death.
• Gross Profit: Revenue less cost of goods sold.
• Gross Sales: Total sales before deductions like returns.
• Growth Strategy: Method to develop and expand profitability.
• Harvesting: Acquisition of one company by another to merge them.
• Incentive: Offer (discount, free item) to encourage customer return.
• Income Statement: Financial report of revenue & expenses over a period.
• Inventory: Goods held by a business for sale.
• Investor: Person or entity investing in a business.
• IPO (Initial Public Offering): Public sale of a privately held company's shares.
• Liability: Amount owed to an entity.
• Limited Liability Corporation (LLC): Business with liability protection, similar to a sole proprietorship but less taxed.
• Line of Credit: Pre-approved amount of credit accessible for business use.
• Loan: Money borrowed by a business with interest payments.
• Location: Place of business operations.
• Management Buyout: Business ownership transfer to its operational team.
• Marketing: Promoting goods/services to customers.
• Minimum Wage: Lowest hourly wage permitted.

Business Interactions, Practices and Strategies

• Negotiated Costs: Agreed-upon costs of services/resources between businesses.
• Net Profit: Profit after deducting expenses & taxes.
• Net Sales: Revenue after deducting returns.
• Networking: Sharing business information through various channels.
• Nonprofit Corporation: Tax-exempt business with no owners.
• Online Networking: Networking via social media or direct email.
• Operating Costs: Day-to-day expenses for running a business.
• Opportunity: Chance for a positive outcome.
• Outsourcing: Obtaining goods/services from external providers.
• Patent: Legal protection for inventions.
• Permit: License for building or expansion.
• Price: Amount paid for goods/services.
• Probability: Likelihood of an event occurring.
• Profit: Financial gain.
• Referral: Satisfied customer recommending a business.
• Revenue: Total sales & income.
• Risk: Potential for negative outcomes.
• Risk Tolerance: Level of willingness to accept risk.
• Royalty Fees: Payments for using a brand name or image.
• Sales Call: A phone call with potential customers.
• Sales Lead: Prospective customer.
• Sales Meeting: Interaction to influence a sale.
• Sales Pitch: Persuasive presentation for a sale.
• Sales Returns: Revenue losses due to product returns.
• SBA (Small Business Administration): US agency assisting small businesses.
• SCORE (Counselors to America's Small Business): Mentoring and counseling for business owners.

Business Characteristics and Analysis

• Segmentation Methods: Grouping potential customers based on demographics, behavior, geography, or psychology.
• Self-Assessment: Evaluating entrepreneurial strengths, weaknesses, and risk tolerance.
• Self-Reliant: Confidence in one's business ventures.
• Separation of Duties: Division of responsibilities within a company.
• Simple Interest: Interest calculated only on the principal.
• Social Media: Online platforms for content sharing & advertising.
• Sole Proprietorship: Business with a single owner.

Business Resources & Support

• Startup Capital: Funds needed to launch a business.
• Statement of Cash Flows: Document analyzing cash inflows and outflows.
• Supply Chain: Linkages between a company and its suppliers.
• Tax Implications: Potential taxes based on business structure.
• Taxes: Charges on goods/income.
• Trade Show: Industry event for business presentations and networking.
• Trademark: Legal protection for company symbols.
• Transaction: Business deal or sale of a service or good.

Business Goals & Concepts

• Value Achievement: Prioritizing success over profit.
• Value Proposition: Reason for attracting customers and investors.
• Variable Costs: Expenses that change with production.
• Zoning Variance: Permit to use a building for a different purpose.

Test your knowledge on essential business terminology with this quiz. Explore terms ranging from acquisition costs to break-even points and gain a clearer understanding of fundamental concepts in the business world. Perfect for students and professionals alike!