It helps to answer the question, “If revenues stopped, could the business meet current obligations with assets that are readily convertible into cash?

In international trade, joint ventures are often mandated by national laws to prohibit majority ownership by a foreign company. For example, Tesla Motors Inc.

In a business plan, a business owner projects revenues and expenses for a certain period of time, and describes operational activity and costs related to the business. As opposed to fixed cost. Collateral Assets business plan definition business dictionary can be pledged to guarantee a loan. In any business venture, there are always unforeseen factors that can affect the profitability business plan definition business dictionary a business.

Small Business Encyclopedia Offers a wealth of information on business terminology. Companies regularly experience recurring periods of profitability and poor cash flow often the result of annual fluctuations in economic activity due to seasonal variations or holiday periods.

Golden Rules in Business.

A complete business plan must also include a set of financial projections for the business. Glossarist A comprehensive directory of business dictionaries and glossaries that contain business terms and terminology.

Undercapitalization Starting a new business without enough money to carry through the start-up phase, especially business plan definition business dictionary the business is likely to initially operate at a loss.

Purchasing Agent An employee of a large company who primary duty is to purchase goods or services for the company.


Revolving Line busihess Credit A credit limit at a specified interest rate that is readily available to a company for immediate borrowing. Executive Summary A brief synopsis at the beginning of a business plan or business document that highlights key facts, issues, and conclusions.

As contrasted with corporate or partnership business plan definition business dictionary. Accounting Cycle The basic steps in processing accounting data during an accounting period: Venture Capital A source of business investment associated with a higher-risk opportunity than conventional financial institutions are willing to bear.

Fashion Goods Goods such as jewelry, clothing, definigion, and kitchenware where style is important and price is secondary. On a balance sheetequity represents assets less liabilities.

Keogh Plan A federal tax law giving substantial tax advantages to small-self employed business owners and others who do not have a company pension plan. ROI sefinition of particular importance to owners because it can be used to compare with other investments.

Partnership As defined by The Uniform Partnership Act, a partnership is “an association of two or more persons who carry on a business for profit as co-owners. Here, aggressive selling processes are usually required.

Business Plan

Gross Profit The profit before overhead fixed operating expenses has been deducted. Assets All business plan definition business dictionary or intellectual property owned by the enterprise that has a positive financial value.

The acid-test ration is a measure of the liquidity of a business. Purchase Order A written authorization prepared by a buyer for the purchase of goods or services at a specified price.


Customer Base The total list of customers for a business, as well as the total number of potential customers with specific classification or buying characteristics. An analysis of ROI for the current period with other periods can reveal positive or negative trends. In return for the business plan definition business dictionary investment risk, a venture capitalist usually expects some business plan definition business dictionary of equity ownership in the business.

Self-Service Retail Outlet A retail outlet where products are sold directly to the end user at discount prices with few or no sales personnel to help definitiom explain the value and purpose of the products.

Also included are links to four of the top business dictionary resources on the Web. Trademarks grant the owner the right to prevent competitors from using similar marks in selling or advertising.

It is their Net Profit or Net Loss.