27 Basic Business Terms

• Tweet

• Tweet

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.

1. Accounting – a system that provides quantitative information about finances.
2. Assets – the value of everything a company owns and uses to conduct their business.
3. Business – an organization that operates with the intention of making a profit.
4. Business to Business (B2B) – one business sells goods or services to another business.
5. Business to Consumer (B2C) – a business sells goods or services directly to the end user.
6. Contract – a formal agreement to do work for pay.
7. Depreciation – the degrading value of an asset over time.
8. Entrepreneur – someone who organizes, manages and takes on the risk of starting a new business.
9. Expense – money spent on supplies, equipment or other investments.
10. Finance – the management and allocation of money and other assets.
11. Fixed Cost – a one-time expense that doesn’t vary with business volume.
12. Industry – a category of like businesses.
13. Liabilities – the value of what a business owes to someone else.
14. Management – the act of organizing and conducting a business to accomplish goals and objectives.
15. Marketing – the process of promoting, selling and distributing a product or service.
16. Net Income/Profit – revenues minus expenses.
17. Net Worth – the total value of a business.
18. Payback Period – the amount of time it takes to recover the initial investment of a business.
19. Product – something produced or manufactured to be sold; a good.
20. Profit Margin – the ratio of profit divided by revenue displayed as a percentage.
21. Return on Investment (ROI) – how much money a business gets in return from an investment.
22. Revenue – the entire amount of income before expenses are subtracted.
23. Sales Prospect – a potential customer.
24. Service – work done for pay that benefits another.
25. Supplier – an organization that provides supplies to a business.
26. Target Market – a specific group of customers at which a company aims its products and services.
27. Variable Cost – expenses that change in proportion to the activity of a business.

Still curious about basic business concepts?

Dig up these basic business concepts that will rule your business:
10 Basic Business Rules for Young Entrepreneurs >>

Photo by: Here’s Kate

Tagged as: Entrepreneurship, List