Business

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Glossary of Business and Financial Terms

GLOSSARY P


A legal business relationship of two or more people who share responsibilities, resources, profits and liabilities.

A right given by government to a person or business, giving a patentee right to exclude others from making, using or selling his or her invention.

Something ready to be paid.

The conditions you give for payment of your invoice.

A guarantee to the bank that you will be personally responsible for repaying the loan to your business. This is most often supported by a fixed charge on a personal asset.

The number a person uses for identification when carrying out a banking machine transaction.

Persons collectively in the employ of a business.

A plan is a formal decision to do something, then figuring out how you are going to do it before you start.

To enter in an account; transferring debits and credits from the journal to the ledger.

To set the selling price.

Revenue obtained from the main source of business operations.

The rate set by each bank, charged to its most creditworthy customers.

Property or capital assets as opposed to income; also, one who is directly concerned in a business enterprise.

A loan payment with a fixed amount of principal and interest portion that varies monthly.

What is left when expenses are subtracted from the amount of revenue taken in.

A projection or estimate. Pro-forma financial statements project future performance if certain conditions are met. When preparing these, it's good idea to look at best and worst case scenarios.

The difference between your selling price and your cost. The ratio of profits (generally pre-tax) to sales. To calculate, divide pre-tax profit by sales.

A list of the total amount of sales (revenues) and total costs (expenses). The difference between revenues and expenses is your profit or loss. It is also called an "income statement".

Subject to exclusive ownership. A proprietor is one who owns a business and a business owned by one person is called a proprietorship.

A copy of the invoice, received by the buyer, to show evidence of the purchase transaction.


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How True

No one appreciates the value of constructive criticism more thoroughly than one who's giving it.
A fool can earn money, but it takes a wise man to dispose of it to his own advantage.
Stores hire extra help for the holidays. This way, customers who don't know what they want are helped by people who don't know where it is.

"One must not always think so much about what one should do, but rather what one should be.
Our works do not ennoble us; but we must ennoble our works." ~ Meister Eckhart

The Power of Appreciation

Team work is the best tool for any business. Show some appreciation to your workers. Employee appreciation and personal thanks, whether in a small business or large corporation works magic. Every employee wants acknowledgment and personal appreciation, which is also the best way to keep them more productive, engaged, loyal and eager to contribute. Employee recognition is a powerful tool to create culture of engagement, so don't forget to offer personal thanks to your older team members. For people new in the business, experienced and older team members can provide support and guide every step of the way, if they are motivated.



Promote locally
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Add personal touch
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use online and offline marketing

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