Basic Business Term

Question 1

Accounts payable

Answer 1

Outstanding business obligations that are owed to others

Question 2

Accounts receivable

Answer 2

Outstanding obligations owed to the business by other

Question 3

Accounting

Answer 3

A system that provides quantitative information about finances

Question 4

Assets

Answer 4

The value of everything a company owns and used to conduct their business

Question 5

Business

Answer 5

An organization that operates with the intention of making a profit

Question 6

Business plan

Answer 6

The ability to create business goals, how they are believed to be attained, and the plan to achieve them

Question 7

Business to business (B2B)

Answer 7

One business sells goods or services to another business

Question 8

Business to consumer (B2C)

Answer 8

A business sells goods or services directly to the end user/consumer

Question 9

Cash flow statement

Answer 9

A picture of all cash flow inflows and outflows within the business

Question 10

Company

Answer 10

Usually considered a business that has employees

Question 11

Contract

Answer 11

A formal agreement to do work for pay

Question 12

Delivery

Answer 12

When a product is delivered to a customer completely finished

Question 13

Depreciation

Answer 13

The degrading value of an asset over time

Question 14

E-commerce

Answer 14

Buying and selling over the internet

Question 15

Employee

Answer 15

A person working with a company

Question 16

Entreteneur

Answer 16

Someone who organizes, manages, and takes on risk of starting a new business

Question 17

Expense

Answer 17

Money spent on supplies, equipment, or other investments

Question 18

Finance

Answer 18

The management and allocation of money and other assets

Question 19

Fixed cost

Answer 19

A one-time expense that does not vary

Question 20

Gross profit

Answer 20

The percentage of business income before expenses

Question 21

Industry

Answer 21

A category of like businesses

Question 22

Just in time (JIT)

Answer 22

A strategy to improve a business return on investment; such as reviewing regularly ROI, creating a new plan to obtain better return, eliminating or improving areas of poor performance and reducing inventory and cost

Question 23

Liabilities

Answer 23

The value of what a business owes to someone else

Question 24

Management

Answer 24

The act of organizing and conducting a business to accomplish goals and objectives

Question 25

Marketing

Answer 25

The process of promoting, selling, and distributing a product or service

Question 26

Net income/profit

Answer 26

Revenue minus expenses

Question 27

Net worth

Answer 27

The total value of a business

Question 28

Payback period

Answer 28

The amount of time it takes to recover the initial investment of a business

Question 29

Payroll taxes

Answer 29

Monies required by law to be withheld from an employees paycheck each pay period. This includes social security, Medicare, federal income tax, state unemployment tax, state income tax

Question 30

Product

Answer 30

Something produced or manufactured to be sold; a good

Question 31

Profit margin

Answer 31

The ratio of profit divided by revenue displayed as a percentage

Question 32

Quality assurance

Answer 32

Management of the quality of materials and service for maintaining a high standard of performance; such as good coordination of proper data collection from patients, including history of insurance info