In order for a young business person to be successful, they have to learn a new set of vocabulary. Certain terms are applicable to all businesses, no matter the size. I have compiled a list of 27 basic business terms all teen businesses should use.
- Accounting – a system that provides quantitative information about finances.
- Assets – the value of everything a company owns and uses to conduct their business.
- Business – an organization that operates with the intention of making a profit.
- Business to Business (B2B) – one business sells goods or services to another business.
- Business to Consumer (B2C) – a business sells goods or services directly to the end user.
- Contract – a formal agreement to do work for pay.
- Depreciation – the degrading value of an asset over time.
- Entrepreneur – someone who organizes, manages and takes on the risk of starting a new business.
- Expense – money spent on supplies, equipment or other investments.
- Finance – the management and allocation of money and other assets.
- Fixed Cost – a one-time expense that doesn’t vary with business volume.
- Industry – a category of like businesses.
- Liabilities – the value of what a business owes to someone else.
- Management – the act of organizing and conducting a business to accomplish goals and objectives.
- Marketing – the process of promoting, selling and distributing a product or service.
- Net Income/Profit – revenues minus expenses.
- Net Worth – the total value of a business.
- Payback Period – the amount of time it takes to recover the initial investment of a business.
- Product – something produced or manufactured to be sold; a good.
- Profit Margin – the ratio of profit divided by revenue displayed as a percentage.
- Return on Investment (ROI) – how much money a business gets in return from an investment.
- Revenue – the entire amount of income before expenses are subtracted.
- Sales Prospect – a potential customer.
- Service – work done for pay that benefits another.
- Supplier – an organization that provides supplies to a business.
- Target Market – a specific group of customers at which a company aims its products and services.
- Variable Cost – expenses that change in proportion to the activity of a business.
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Photo by: Here’s Kate