Absolute Advantage: Occurs when a country uses the same level of resources to produce more goods than another country.
Accounting: The recording analysis and reporting of financial transactions of a business.
Accounts Payable: Money owed by a company for goods and services purchased on credit from vendors.
Accounts Receivable: Money owed by customers for goods or services purchased on an open account.
Accrued Interest: Interest that has accumulated and is added to a loan.
Adjustable Rate Mortgage (ARM): A Mortgage in which the interest rate is adjusted periodically based on a preselected index.
Advertising: Placement of announcements and persuasive messages(in time or space) communicated through media or nonmedia forms; used to inform or persuade members of a target market or audience about a good, service, organization or idea.
Advertising Campaign: Series of coordinated advertising vehicles in various media, scheduled for a certain time period, and related by verbal and/or visual themes or common objectives.
Advertising Strategy: An overview of the competitive frame, target market and message to be used in an advertising campaign.
Affiliate Marketing: An on-line marketing strategy that shares revenue between on-line advertisers/merchants and on-line publishers/salespeople; compensation is usually based on performance (sales, clicks, registrations).
Agents: Intermediaries who negotiate the purchase or sales of goods for the clients, but who do not take title to the goods.
Amortization: Payment of a debt that allows the borrower to reduce debt through regular payments over a certain period of time.
Annual Percentage Rate (APR): An interest rate that reflects the cost of a loan as a yearly rate.
Appreciate: To Increase in value or price.
Asset: Everything owned that has value, including tangible items like cash, accounts receivable, inventory, land, buildings and equipment.
Audit: An examination of verification of a business's accounting records and procedures by a trained accountant or CPA (certified public accountant).
Awareness: First Stage in the process of learning about a new good or service that the costumer has gotten information about but not yet formed an opinion on.
Back Order: An item not currently in stock but to be sold nor delivered when it becomes available.
Balance Of Trade: The difference between an country's total imports and exports.
Balance Sheet: A summary of a company's financial condition at a specific period of time; indicates the company's assets, liabilities and net worth.
Bankruptcy: A Legal Process in which a company (or person) owes more than its assets and is relieved from payment of debts by transferring those assets to a trustee.
Banner Ad: A graphical Internet advertising tool; users click on the graphic to be directed to another website.
Behavioral Analysis: An evaluation method used to monitor sales force performance; involves evaluating the behavior of salespeople and sales performance.
Benchmark: Something that serves as the standard to which all other like items can be measured or compared.
Beneficiary: A person who is designated to receive benefits, profits or advantages.
Beta: A measure of an asset's risk in relation to the market.
Bill Of Lading: A contract between shipper and carrier, detailing what is being shipped, how it is being shipped, and terms of delivery.
Bill Of Materials: Document used by a company to authorize a set of purchases to be made or to be taken from inventory to fulfill an order.
Blended Payment: A loan payment, consisting of principal and interest, that is the same amount every month.
Blog: An Internet communication that combines a diary, column and directory; short articles on various subjects with links to other resources; updated often.
Blue-Chip Stocks: Common stock of well-known companies with a history of growth and dividend payments.
Board Of Directors: Individuals elected by shareholders; responsible for managing the president and high-level managers.
Body Copy: The section of a print ad that contains text and more detailed information than the headlines and subheads.
Bond: A government- or corporation-issued certificate of debt guaranteeing payment of the original investment plus interest by a certain future date.
Bond Mutual Fund: Investment company that invests it shareholders' monies in bonds.
Book Value: Total assets minus intangible assets and liabilities; can be more or less than market value.
Bottom Line: An accounting term for the net profit or loss.
Brand: A mark, symbol, word or combination that separates one company's product from another's.
Brand Awareness: Having knowledge that a brand exits; considered first step in the sales process.
Brand Category: Generic classification of goods or services; like goods or services in the same brand category.
Brand Extension: Addition of a new product to an already established line of products under the same brand name; new product benefits from the older products' established reputation.
Brand Loyalty: Loyalty a customer has to a specific brand over a period of time.
Branding: A method of identifying products and differentiating them from competing products.
Break-Even Point: The level of sales where revenue equals total costs; can also be expressed in terms of units of product.
Budget Deficit: Point at which spending exceeds revenues.
Business: The activity of making, buying, selling, or supplying goods or services for currency.
Business Cycle: Period of time composed of a business upswing or expansion, peak, downturn, trough and recovery.
Business Plan: A document fully describing and analyzing a particular business; provides complete, detailed information about short- and long-term plans.
Bylaws: A set of regulations used by an organization to conduct its business.
Call Feature: A feature that gives the right to the issuer to repurchase a bond before maturity.
Call To Action: Statement normally found at the end of a commercial message that encourages the consumer to act.
Cannibalization: Reduction in the sales volume, sales revenue or market share of one product as a result of the introduction of a new product by the same producer.
Capital: Wealth in the form of currency or other assets owned by a person or organization or available or contributed for a particular purpose such as starting a company or investing.
Capital Budget: Allocated amount of funds to be used on purchasing assets such as machinery, building, equipment, computers, etc., that are needed for longer than one year.
Capital Gain: Profit from the sale of an investment; the price received from the sale of an investment minus the price paid.
Capitalism: Private ownership of the means of production.
Carrying Cost: Expense of keeping inventory on hand.
Cash: Paper currency used for transactions in sales.
Cash Cow: Good or service that generates a steady and predictable income.
Cash Flow Statement: Financial statement that shows when cash flows are received and disbursed by a business.
Category Killer: A destination store, normally large, that concentrates on one category, enabling it to carry a broad assortment and deep selection at a low price.
Certificate Of Deposit (CD): A document written by a financial institution that show a deposit with the issuer's promise to return the deposit plus earnings at a certain interest rate within a period of time.
Channel Of Distribution: Route a product follows to link producer to end customer.
Chapter 7: Part of U.S. Bankruptcy Code that deals with liquidations of a company's assets.
Chapter 11: Chapter in the U.S. Bankruptcy Code that allows a business, an individual or a partnership to declare bankruptcy and postpone debt payments while the reorganization takes place.
Charter: Document issued to incorporate a business; details important aspects of the corporation.
Circulation: Number of copies distributed of a print advertisement.
Click-Through Rate (CTR): Number of clicks-through per ad impression. (refers to on-line ads)
Co-Branding: Pairing of two or more brands on a single good or service.
Cold Call: Unscheduled contact by phone or in person between seller and prospective customer.
Commercial Bank: Financial institution that raises funds by collecting deposits from businesses and customers; makes loans to businesses and customers; purchases corporate and government bonds.
Commercial Paper: Short-Term unsecured note (2 to 270 days) issued by companies with good credit standings.
Commissions: Compensation for meeting specific sales objectives.
Commodity: Bulk goods, such as wheat or metal, that investors buy or sell usually via futures contracts.
Common Stock: Type of security that gives partial ownership in a company; has a vote in electing board of directors; entitles the holder to share in company's success through dividends and/or capital appreciation.
Communism: State ownership of the means of production.
Company: A business organization that makes money by producing or selling goods or services.
Comparative Advertising: Persuading an audience to purchase a specific product by showing a brand's superiority in comparison with competing brands.
Competitive Advantage: Advantage gained that makes a product more desirable than the competition; persuading customers to buy it instead; can include lower prices and superiority of goods or services.
Conglomerate Merger: When two companies in unrelated industries join together.
Consumer: Person who uses a product but does not necessarily buy it.
Consumer Markets: Individuals or households that purchase goods or services for consumption or use.
Consumer Price Index (CPI): Monthly government statistical measure that shows the trend of prices of goods and services purchased by consumers; measures inflation.
Consumer Product: Product intended for and purchased by households for their use.
Contribution Margin: Difference between variable revenue and variable cost.
Conventional Mortgage: Mortgage not insured or guaranteed by the federal government.
Corporation: State-chartered entity that pays taxes and is legally distinct from its owners.
Cost Of Goods Sold (COGS): Cost of materials used in producing a product or service.
Cost Per Click (CPC): Cost that advertisers pay each time a user clicks an ad or link.
Creditors: Financial institutions (or individuals) that provide loans.
Critical Path: Sequence of events in a project, listed in order according to completion time.
Current Assets: Represents cash, accounts receivable, inventory, prepaid expenses and other assets that can be converted to cash within one year.
Current Liabilities: Operating loans, accounts payable and accrued charges (including outstanding checks, wages, long-term debt payments and taxes) due within a year.
Current Ratio: Indication of a company's ability to meet short-term debt obligations; the greater the ratio, the more liquid the company; current assets divided by current liabilities. CURRENT RATIO = CURRENT ASSETS / CURRENT LIABILITIES
Customer: Person who buys a product but doesn't necessarily use it.
Customer Profile: Characteristics of the typical customer (based on demographics).
Customer Relationship Management (CRM): Integrated information system designed to build customer loyalty by having customer information in a central database.
Cyclical Unemployment: Unemployment due to a recession; happens when the demand for labor declines.
Debt-To-Equity Ratio: Measures the amount of long-term financing provided by debt relative to equity; long-term debt divided by owner's equity. Debt-To-Equity Ratio = Long-Term Debt / Owner's Equity
Demand-Pull Inflation: Increases in prices that occur when demand exceeds supply.
Demand Schedule: Table or Schedule Indicating Quantity of a product that would be demanded at a certain price point.
Demographics: Characteristics of the human population or specific segments of the population.
Depreciate: To decreases in value or price.
Depreciation: Decrease in the value of fixed assets because of deterioration of assets over a period of time.
Direct Marketing Channel: Goods and services sold directly from the producer to end user without involvement of an intermediary.
Earnings Per Share (EPS): Company's income for a period divided by the number of shares outstanding at the end of the period.
E-Commerce: Use of electronic media (i.e. the Internet) to produce or sell goods and services.
Economic Growth: Change in the general level of economic activity.
Economies of Scale: As the quantity produced increases, the cost per unit decreases in the long run.
Electronic Data Interchange (EDI): Exchange of standardized document forms between computers for business use.
Embargo: Government action stopping the import or export of a certain commodity or commodities.
Entrepreneur: One who assumes all financial risk of the initiation, operation and management of a given business undertaking.
Environmental Analysis: Gathering and examining data about a company, including political, cultural, social, demographics, economic, legal, international and ecological factors.
Equal Employment Opportunity (EEO): Federal legislation prohibiting employment discrimination based on race, sex, religion or ethnic background,
Equilibrium Price: Price at which the quantity of a good supplied by firms equals the quantity of the product demanded by customers.
Equity: Difference between the fair market value of property and the amount still owed; ownership interest in a business.
Equity Contribution: Cash that the owner(s) or investor(s) has (have) invested in the business in return for a share of ownership.
Esteem Needs: Self-esteem, attention and recognition from others.
Exclusive Distribution: Product distributed through one specific wholesaler or retailer in a market area.
Exporting: Selling products or services to other countries.
Exposure: Any opportunity for customers to see and/or hear an advertising message in a certain media vehicle.
Federal Budget Deficit: When federal government spending exceeds the amount of taxes and other revenue received by the federal government.
Federal Deposit Insurance Corporation (FDIC): Federal government agency that insures accounts at most commercial banks and savings banks.
Federal ID Number: Identification number the IRS (or a state taxing authority) assigns to businesses for taxpaying purposes.
Federal Reserve System ("The Fed"): Central bank of the U.S.; responsible for implementing the nation's monetary policy and assisting the nation in attaining its economic and financial goals.
Finance Companies: Companies that make loans to individuals or businesses.
Financial Analysis: Analysis of a company's financial statement.
First In, First Out (FIFO): Inventory system in which the first goods purchased are the first ones sold.
Fixed Annuity: Investment contract sold by insurance company that guarantees fixed payments for life (or a specified period) to the annuitant.
Fixed Assets: Long-term, tangible assets held for business use and not expected to convert to cash in the current or upcoming fiscal year; items include real estate, equipment and furniture.
Fixed Costs: Operating expenses that do not change in response to the number of products produced.
Forecast: Predicated amount of revenue generation over a specified period of time.
Foreclosure: Legal process by which mortgaged property is sold to pay loan of defaulting borrower.
Forward Contract: Contract that states an exchange of currency will occur at a specified exchange rate at a future time.
Forward Rate: Exchange rate a bank will offer at a future time.
Franchise: Business arrangement under authorization to sell or distribute a company's goods or services; the owner allows others to use its trademark, trade name or copyright.
Franchisee: Purchaser of a franchise; agrees to sell the product according to the franchiser's requirements.
Franchiser: Company that allows a license to individuals to operate under the trademark and operating systems of that company.
Frictional Unemployment: Temporary unemployment that occurs when people are between jobs or in seasonal employment.
Futures: Contract to buy or sell a commodity or financial instrument at a specific price on a specified date.
Gantt Chart: Bar graph that measures how long each task in production process will take.
Generic Brand: Product named by its generic class.
Goodwill: Amount representing the excess paid for a company, its shares, or other assets over and above its net asset value.
Going Public: Company's initial stock issue to the public
Gross Domestic Product (GDP): Total value of goods and services produced by a nation's national in said nation and abroad in a given period of time.
Gross Profit: Net sales minus cost of goods and services sold.
Gross Sales: Total value of sales prior to deducting returns, allowances or discounts.
Hierarchy Of Needs Model: Human behavior theory proposed by Abraham H. Maslow
Horizontal Merger: Merger of two or more companies in same industry that produce the same type of good(s) or service(s).
Income Statement: Financial statement that reports revenue, cost and profits over a period of time.
Incorporation: Process that makes a business a separate legal entity from its owner.
Incremental Cost: Additional business expense incurred by taking a certain action.
Inflation: Rise in general level of prices of goods and services over a specific period of time; can be estimated by measuring percentage change in consumer price index (CPI).
Infomercial: Program-length televised commercial advertising goods and/or services; often includes a direct response offer.
Initial Public Offering (IPO): Company's first sale of stock to the public.
Insertion Order: Instructions to publisher detailing the placement of material for a print ad.
Inside Board Members: Board members who are also managers in the company.
Inside Sales: Sales done via phone.
Integrated Marketing: Coordination of all promotion vehicles to ensure consistent marketing message.
Intensive Distribution: Product is distributed through all or most wholesalers or retailers selling that product in the marketplace.
Interest: Fee charged for using an institution's or individual's money or credit; expressed as percentage rate over a time period.
International Licensing Agreement: Agreement that allows a foreign entity to produce another company's product according to the exact standard of that company.
Inventory Cost: Process of maintaining sufficient inventory at a level that minimizes costs.
Job Analysis: Determining the skills and attributes needed for a specific employment position.
Joint Venture: Agreement between two or more companies to take on same business strategy and plan of action
Just-In-Time (JIT): Strategy that reduces inventory levels by working closely with suppliers to coordinate delivery of materials just before use in manufacturing or supply process.
Last In, First Out (LIFO): Inventory system in which the last item purchased is the first item used.
Law Of Demand: Increase in price causes decrease in quantity demanded.
Law Of Supply: Increase in price causes increases in quantity supplied.
Lease: Written agreement renting assets for specified period of time in exchange for payment, normally in form of rent.
Leasehold improvement: Improvement(s) made on leased property.
Liability: Anything that a company owes.
Limit Order: Order to buy or sell a security at a specified price or better.
Limited Liability Company (LLC): Type of business ownership combing features of a corporation and partnership; has limited liability; avoids double taxation.
Limited Partnership: Partnership with one general partner and any number of limited partners; they can purchase interest and be held liable only to the extent of their interest and not risk personal liability.
Line Of Credit: Agreement with bank or financial institution that extends credit up to a certain amount and period of time a specified borrower.
Liquid: Asset that can be converted into cash quickly and without any price discount.
Loan-to-value ratio (LTV): Relationship between the amount of mortgage lean and appraised value of property(expressed as a percentage).
Macroeconomics: Study of economic aggregates, such as national production and price level.
Macroenvironment: Factors that influence an organization but are outside that organization's control.
Management: Administration and policymakers of company or organization; utilizing employees and other resources in the way that best archives company's plans and objectives.
Managers: Employees responsible for managing work tasks of other employees, as well as for making key business decisions.
Market: Actual and potential buyers of a good or service.
Market Coverage: Degree of product distribution among outlets.
Market Research: Gathering, recording and analysis of data in regard to specific customer group; used to make marketing decisions.
Market Share: Company's total sales as proportion of the total market.
Marketing: Operations needed to get goods or services developed, priced, distributed and promoted to customers.
Marketing Channel: Set of companies necessary to transfer title to goods and move goods from point of production to point consumption.
Marketing Concept: Philosophy that guides the attitude of everyone in a company to stimulate and satisfy needs and wants of every customer.
Marketing Environment: Environments within and outside an organization's control that can directly or indirectly affect the activities of that organization (includes macroenvironment, microenvironment and internal environment).
Marketing Intermediaries: Independent firms that help the flow of goods and services from producers to end users (includes agents, wholesalers, retailers, marketing service agencies and financial institutions).
Marketing Mix: Variables (4 Ps: product, place, price, promotion) used to achieve sales in target market.
Maslow's Hierarchy Of Needs: Human behavioral theory that ranks needs into five categories (physiology needs, safety needs, social or belonging & love needs, esteem needs, self-actualization); as each need is surmounted, motivation sets achieve next category.
Merchant: Marketing intermediary that takes title to and resells merchandise.
Merger: Two or more companies combining to become one; assets and liabilities of the selling firm(s) are absorbed by the purchasing company.
Microeconomics: Study of the behavior of consumers and producers operating in the individual markets of the economy.
Mission Statement: Statement that communicates an organization's purpose, goals, values and functions.
Money: Coin or currency considered in reference to its value or purchasing power; hence, property or possessions of any kind viewed as convertible into money or having value expressible in terms of money.
Money Supply: Amount of money in circulation.
Monopoly: Market for a good or service that only has one seller/supplier.
Mutual Fund: Company that invests shareholders' monies in securities.
National Association Of Securities Dealers Automated Quotation System (NASDAQ): Computerized system that provides price quotations for securities traded over-the-counter (OTC).
Net Present Value (NPV): Used in a capital budget when the present value (PV) of cash flow is subtracted from the initial investment (I). NPV = PV - I
Net Profit Margin: Measures how effective a company is at cost control; usually expressed as a percentage, net profits divided by net revenue. NET PROFIT MARGIN = NET PROFITS / NET REVENUE
Net Sales: Gross sales minus returns, allowances and discounts.
New York Stock Exchange (NYSE): Located on Wall Street in New York City; also called the "Big BOard'; 2000 common and preferred stocks traded.
Operating Expenses: Expense incurred in normal day-to-day business.
Organizational Chart: Graphic showing positions within a company(by name and title) and the reporting relationship.
Organizational Structure: Way company is organized; identifies functions for each position within a company and reporting relationships between those positions.
Outside Board Member: Board members who are not managers within the company.
Outside Sales: Sales made by individuals visiting others in person.
Outsourcing: Purchasing service(s) from outside vendor(s) to replace having the task(s) done within an organization's internal operations.
Owner's Equity: Total Assets minus total liabilities of a company or individual.
Par Value: Amount an issuer of a bond agrees to pay at the bond's maturity; also, the stated issue price of a security.
Partnership: Business ownership involving two or more people who are fully liable for all business debts.
Pay-Per-Click (PPC): Online advertising pricing model where advertisers pay agencies based on the number of clicks on a promotion.
Personal Selling: Sales presentation that involves face-to-face interaction with a customer.
Physiological Needs: Basic needs for survival (food, water, air, health and sleep).
Points: Prepaid interest charged by a lender to lower the interest rate of a loan; 1 point is equal to 1% of the loan amount.
Policies: Guidelines for how certain tasks should be completed.
Preferred Stock: Capital Stock that represents a partial ownership in a company; provides a specific dividend paid prior to any dividends paid to common stockholders.
Premium: Gift to consumers who purchase a specific product.
Price Index: Average Level of prices relative to average level in base time period.
Prime Rate: Interest rate banks charge on loans to low-risk borrowers.
Private Company: Company whose shares are not traded on the open market.
Private Mortgage Insurance (PMI): Required on almost every conventional loan with less than 20% down payment; protects lender in case borrower defaults on loan.
Privatization: Process of selling government-owned businesses to private companies.
Producer Price Index (PPI): Measure of average price of goods bought by producers.
Product: Goods or Services that satisfy a need.
Product differentiation: Attributes that make one product different from another.
Product Life Cycle: Stages a product is thought to go through from creation to death; introductory, growth, maturity and decline.
Product Line: Related goods or services offered by a single company.
Product Mix: Variety of goods or services offered by a company.
Profit and Loss Statement (P&L): Summary of a company's revenues, costs and expenses within an accounting period.
Program Evaluation And Review Technique (PERT): Method for analyzing tasks needed to complete a project and time estimates to complete each task.
Promotion Budget: Money reserved to pay for all promotion methods over a given period of time.
Promotion Mix: Communication techniques used to achieve specific goals; include advertising, personal selling, sales promotion and public relations.
Prospect: Company or individual in need of a particular good or service; to seek out (through personal contact) potential buyers of a good or service and try to sell to them.
Prospectus: Legal document that describes the securities offered for sale, including information on investment objective, policies, fees and services.
Proxy: Documents that provide shareholders with the necessary information to vote in an informed manner on matters to be brought up at a stockholders' meeting; shareholders often give management their proxy (i.e. responsibility and right to vote their shares outlined in the proxy statement).
Public Company: Company whose shares are traded on the open market, following a public offering.
Public Offering: Selling of securities to the public; must be registered with the Securities and Exchange Commission (SEC).
Public Relations: Using Publicity and other nonpaid forms of promotion and information to create a positive public image.
Public Sector: Government-owned businesses.
Pull Strategy: Promotion specifically directed at the target market; used to build consumer demand for product.
Push Strategy: Promotion of product directed at the wholesaler or retailers; they, in turn, promote to consumer.
Quality: Degree to which a good or service meets the specifications of the customer.
Quality Control: Process that determines if a good or service meets the desired level of excellence.
Quick Ratio: Measures a company's liquidity; used to evaluate creditworthiness; equals quick assets (cash, marketable securities, accounts receivable) divided by current liabilities. QUICK RATIO = CASH + MARKETABLE SECURITIES + ACCOUNTS RECEIVABLE / CURRENT LIABILITIES
Ratio Analysis: Evaluation: Evaluation and interpretation of the relationship between financial statement variables.
Rebate: Return of a portion of the purchase price from the manufactacturer.
Recession: Two or more consecutive quarters of decline of the gross domestic product (GDP).
Reminder Advertising: Used to keep customers thinking about a product.
Return on Asset (ROA): Measures a company's profitability; net profits divided by total assets. Return on Assets = Net Profits / Total Assets
Return on Equity (ROE): Measures the return to the stockholder as a percentage of his/her investment; net profit divided by owner's equity. Return on Equity = Net Profit / Owner's Equity
Return on Investment (ROI): Monetary Value created or expected to be achieved by an investment of money.
S-Corporation: Corporation whose income is taxed to its shareholders; does not directly pay federal income tax on earnings.
Sales Promotion: Marketing activities designed to encourage sale of product or service; rebates, coupons, sampling, displays and premiums.
Salvage Value: Value of an asset at the end pf the asset's useful life, which a company can receive from selling it.
Sampling: Process that assesses quality by randomly selecting products and testing them to see if they meet the standard of excellence; a promotional technique that offers free goods to encourage consumers to purchase new brand or product.
Seasonal Unemployment: Unemployment that occurs due to change of season that affects demand for certain kinds of labor.
Secondary Market: Market where securities are traded among investors after they were initially offered in the primary market (e.g., NYSE, AMEX and NASDAQ).
Secured Bonds: Bonds issued by borrowers backed by collateral number of wholesalers or retailers in a market area.
Selective Distribution: Product is distributed through a limited number of wholesalers or retailers in a market area.
Self-Actualization: When an individual has reached his/her full potential as a human being.
Shortage: Quantity supplied by company is less than quantity demanded by customers.
Social Need: need to be accepted in a group.
Social Responsibility: Awareness of how business decisions can affect society.
Socialism: Worker ownership of the means of production.
Sole Proprietorship: Unincorporated business owned and operated by one individual.
Span Control: Number of people managed by a manager or supervisor.
Sport-Exchange Rate: Exchange rate quoted for immediate transactions.
Stakeholders: Individuals that have an interest in a business, including customers, owners, creditors, employees and suppliers.
Stock: Certificate representing share of ownership in a company.
Stockholders: Investors who are partial owners of a company because they purchased stock in said company.
Strategic Business Unit (SBU): Division or product line within parent company but with seperate goals and objectives.
Strategic Plan: Set of plans that describes company's goals and objectives.
Structural Unemployment: Long-term unemployment caused by workers not having adequate skills.
Supply Chain: Process from beginning of production until product reaches end consumer.
Supply Schedule: Table or schedule that shows the relationship between the price and quantity of a good or service that producers can supply.
Surplus: Quantity supplied by company exceeds quantity demanded by customers.
SWOT Analysis: Research that is broken down into four areas: strengths (internal), weakness (internal), opportunities (external) and threats (external).
Target Market: Selected group of customers (or potential customers) at which to focus marketing efforts to sell a particular good or service.
Telemarketing: Using the telephone for promoting and selling goods and services.
Times Interest Earned Ratio (TIER): MEasures the ability of a company to cover its interest payments; earnings before interest and taxes (EBIT) divided by annual interest expense. Times Interest Earned = Earnings Before Interest and Taxes (EBIT) / Annual Interest Expense
Total Quality Management (TQM): Philosophy based on idea that successful companies continuously improve the quality of their products; quality defined by the customer.
Trade Deficit: Amount of imports exceeds amount of exports.
Treasury Bills (T-Bills): Short-term debt security issued by The U.S. Treasury Department; has maturity of one year or less and low risk.
Treasury Notes(T-Notes): Debt obligations of the U.S. government; have maturities of 1 to 10 years.
Two-Level Channel: Two Marketing intermediaries between producer and customer.
Underwriting: Evaluating a loan application to determine risk for a lender.
Unlimited Liability: No limit on the debt for which the owner is liable.
Up-sell: Selling Customers a good or service of higher value.
Value added reseller (VAR): Company that sells another company's product by adding features to it.
Variable Costs: Operating expenses that vary directly with the number of products being produced.
Variable Rate: Interest rate that changes periodically in relation to the index.
Venture Capital Firm: Investment firm that invests shareholders' money in startup companies, companies that are expanding, and other risky but potentially profitable ventures.
Vertical Merger: Merger of two companies in the same industry but at different stages in the production cycle.
Credits for terms and definitions: BarCharts, Inc. and Oxford Dictionary.
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