Day 2 Flashcards
(25 cards)
Stakeholder
A person or group with an interest or concern in a business.
Example: “We need to keep our stakeholders informed about the new project.”
Revenue
Income generated from normal business operations.
Example: “The company’s revenue increased by 15% last quarter.”
Profit margin
The difference between the cost of producing something and the price at which it is sold.
Example: “We need to increase our profit margin to remain competitive.”
Market share
The portion of a market controlled by a particular company or product.
Example: “Our goal is to capture a larger market share this year.”
Assets
Resources owned by a company that have economic value.
Example: “The company’s assets include real estate, equipment, and inventory.”
Liability
A company’s legal debts or obligations.
Example: “The firm has been reducing its liabilities to improve its financial health.”
ROI (Return on Investment)
A measure used to evaluate the efficiency of an investment.
Example: “We expect a higher ROI from this new marketing campaign.”
Dividend
A portion of a company’s earnings distributed to shareholders.
Example: “The board decided to increase the dividend payout this year.”
Capital
Wealth in the form of money or assets available for a purpose.
Example: “We need more capital to expand our operations.”
Merger
The combination of two or more companies into one.
Example: “The merger between the two tech giants shocked the industry.”
Acquisition
The act of acquiring control of another company.
Example: “Our company’s latest acquisition will expand our market presence.”
Liquidity
The availability of liquid assets to a company.
Example: “The company has enough liquidity to cover its short-term obligations.”
Equity
The value of shares issued by a company.
Example: “He has a significant amount of equity in the company.”
Fiscal year
A one-year period that companies use for accounting purposes.
Example: “The company’s fiscal year ends in December.”
Benchmarking
The process of comparing one’s business processes to industry bests.
Example: “Benchmarking helps us identify areas for improvement.”
KPI (Key Performance Indicator)
A measurable value that shows how effectively a company is achieving its goals.
Example: “Customer satisfaction is a crucial KPI for our team.”
Cash flow
The total amount of money being transferred into and out of a business.
Example: “Positive cash flow is essential for the sustainability of a business.”
Break-even point
The point at which total revenue equals total costs.
Example: “We reached our break-even point within the first six months.”
Brand equity
The value derived from consumer perception of the brand.
Example: “Strong brand equity allows us to charge premium prices.”
Supply chain
The sequence of processes involved in the production and distribution of a product.
Example: “Improving the supply chain efficiency can reduce costs.”
Outsourcing
Obtaining goods or services from an external source.
Example: “The company is outsourcing its customer service to reduce expenses.”
Scalability
The capability of a business to grow and manage increased demand.
Example: “The new software offers great scalability for our operations.”
Overhead
Ongoing business expenses not directly attributed to creating a product or service.
Example: “Reducing overhead costs can significantly increase profits.”
Market penetration
The extent to which a product is recognized and bought by customers in a particular market.
Example: “We’re focusing on market penetration strategies to increase sales.”
