Glossary

A

assets – items of value owned by a business or an individual.

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B

balance sheet – a statement showing the financial worth of a business at a particular point in time.

blog – is short for weblog and is an online diary. It is regularly updated and 'postings' appear in chronological order. Some blogs are kept by one person, others by a group.

break-even – point at which a business makes neither a profit or a loss.

business mix – the combination of products and/or services that a business offers and the different types of clientele that a business provides for.

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C

capital – money or assets put into a business by the owner (also known as owner's equity).

cash book – record of cash receipts and payments.

cash flow – the pattern of money coming in and out of a business.

cash flow budget – shows the predicted cash inflows and outflows for a specific period of time.

codes of practice – provide advice on how to meet regulatory requirements.

credit – sell or buy expecting to make or receive a payment at a future time.

creditor – person or business to whom money is owed.

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D

debt – amount that is owed.

debt finance – method of raising finance by taking out a loan that will be repaid.

debtor – person or business who owes you money.

demographic issues – issues relating to social factors used to segment a market during market research.

drawings – amounts taken out of a business by the owner for personal use.

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E

equity – amount of an asset actually owned by a person or business.

equity finance – method of raising finance by offering a share of the business.

establishment costs – all expenses associated with getting a business started (also known as start-up costs)

expenses – outgoing costs for a business.

experts – can provide invaluable assistance due to their position and/or understanding of a specific market.

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F

freight – transport of goods from one place to another.

fixtures and fittings – assets such as shelving, counters, cabinets and light fittings.

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G

goodwill a saleable asset that is based on the relationship that the business has built up with customers and suppliers.

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H

hire purchase method of paying off an asset by making regular repayments while having the full use of the asset.

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I

income – amounts received from the sale of goods or services.

inflow – describes cash coming in to a business.

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J

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K

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L

lease – a contract between a person who owns an asset and a person who uses an asset that sets out the terms and conditions of use.

liabilities – money owed that under law must be repaid.

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M

market – people who might purchase goods or services from a business.

market player – a business operation that caters for a particular market.

market research – investigation into the characteristics of potential customers.

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N

New Enterprise Incentive Scheme (NEIS) – a commonwealth government program that helps eligible unemployed people start their own businesses

niche market – a relatively small but profitable market

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O

outflow – describes cash going out of a business.

owner's equity – money or assets put into a business by the owner (also known as capital).

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P

premises – place from which a business operates.

preventative maintenance – regular or scheduled servicing of particular items.

primary source – data that has been collected first hand for research purposes.

procedure – a set of steps that clearly identifies actions to be taken to achieve a desired outcome.

profit and loss statement – financial statement showing the overall profit or loss made by a business for a particular time period.

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Q

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R

regulations – legally enforceable rules about how business is conducted.

resources – items necessary for a business to operate which can include people (human resources) as well as machinery, equipment, premises, etc.

risk – chance of something happening that will impact upon the business.

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S

secondary sources – data that has been collected by someone else and used by you for research purposes.

start-up costs – all expenses associated with getting a business started (also known as establishment costs).

stock – goods that a business has purchased for future sale.

supplier – a business that sells the resources required by another business to carry out its business operations.

SWOT analysis – a process where a person looks at personal strengths and weaknesses so as to take advantage of external opportunities while minimising threats.

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T

taxable income – amount of money for which tax is payble after allowable deductions have been made.

trademark – a word of mark that indicates legal ownership.

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U

 

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V

viability – how practical or workable a business idea or business operation is.

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W

working capital – cash needed to run a business on a day-to-day basis.

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X

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Y

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Z

zoning – divisions used to determine allowed usage of an area, eg commercial, residential.

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