The following definitions are meant to help individuals become more familiar with any terms they may hear when dealing with an existing business issue or when beginning their business venture.
Accounting: The classifying and recording of things that go on in the company from a financial aspect.
Accounts Payable: Obligations that must be paid related to the business.
Accounts Receivable: Money that is due to the business from services or items being sold.
Acquisition: To acquire something from the company, whether through a lease or purchase.
Affiliates: Control that is in the hands of a third party.
Assets: Things such as property and money that are worth value to the business.
Assumption: To undertake someone's obligations or debt.
Ancillary Bond: A bond that guarantees factors that are essential and incidental to the performance of a contract.
Balance Sheet: A financial statement that lists a company's equity, assets and liability on a certain date.
Book Value: The value of something after depreciation is deducted from the original cost.
Capitalization: One of the five C's of credit; one of the basic resources of a business which include retained earnings, the owner's equity, and fixed assets.
Collateral: Something of value that is used the support the repayment of a loan. Another one of the five C's of credit.
Capitalized Property: Personal property of a company which has a life expectancy of one year or more and is worth $300 or more.
Cash Flow Statement: A statement that shows how much money generated by the company remains after obligations are repaid, such as loans and other expenses.
Contract: A written promise that legally binding.
Contracting: Obtaining services or supplies by renting, purchasing, or leasing from a non-federal source.
Debt To Total Assets Ratio: The total debt a business has accured divided by the total assets.
Deferred Loan: A loan that has interest installements and/or principal that is post-poned for a specific amount of time.
Entrepreneur: An individual who starts a new business.
Easement: A privilege or right that an individual may have on someone else's land.
Enterprise: An organization that is created for business ventures.
Equity: The net investment of an owner in a business, or the results of assets less liabilities.
Escrow Account: An account in which funds are placed in trust with a third party.
Establishment: A business that is owned by a parent enterprise.
EDI: Also known as electronic data interchange, EDI is the transmission of information between computers while using standardized electronic versions of common business documents.
EEOC: Abbreviation for Equal Employment Opportunity Commission. The EEOC enforces laws that protect employees from discrimination against religion, gender, age, race, disability, or ethnic background.
Fixed Assets: Things such as buildings and equipment that have been purchased for long-term purposes.
Fixed Costs: The
costs of doing business. These costs can include utilities, taxes, and
more. These costs generally remain the same each month.
Flow Chart: A graph that represents a number of different things and data such as problem solutions and analyzations.