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Glossary a c c e s s o r y g o o d s Products used in operations, for example, office copiers, auxiliary power supplies and air compressors. a c c o u n t s p a y a b l e Short-term debts incurred as the result of day-to-day operations such as the purchase of goods for resale. a c c o u n t s r e c e i v a b l e Monies owed to a company as the result of day-to-day operations such as from the sale of goods. a c c r u a l b a s e d a c c o u n t i n g An accounting method that records income and expenses at the time of contract rather than when payment is received or expenses paid. a m o r t i z a t i o n Allocation of a fraction of the original cost of long-term intangible assets to those periods benefited. a n g e l i n v e s t o r A private investor willing to advance funds to an enterprise under favorable terms and conditions. a s s e t s Tangible and intangible property having positive financial value. b 2 b Acronym for business-to-business. A company that provides goods or services to other businesses. b 2 c Acronym for business-to-consumer. A company that provides goods or services to ultimate consumers. b a l a n c e s h e e t Also called Statement of Financial Position. A company’s primary financial statement showing resources of a business on a particular date as well as claims against those resources on that same date (Assets, Liabilities, Owner’s Equity). b a r r i e r s t o e n t r y Conditions that make it difficulty for competitors to enter a market, for example, copyrights, trademarks, patents, exclusive distribution channels and high initial investment requirements. b r e a k - e v e n p o i n t The point at which revenues equal expenses.
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b r i c k s a n d m o r t a r A business with a physical location (building) open to the public; especially a retail business location. b u r n r a t e The rate at which a start-up company spends its investment capital before it becomes profitable. c a p i t a l Financial investment used to start and operate a business. c a s h b a s e d a c c o u n t i n g An accounting method that records income and expenses at time payment is received or expenses paid (opposite of Accrual Accounting). c a s h f l o w s t a t e m e n t Schedule of expected cash receipts and disbursements during a stated period of time. c a s h p i t Slang term used to describe an enterprise that requires a great deal of investment capital prior to its making a profit. chief executive officer (ceo) The individual who is responsible for the day-to-day management of a business enterprise. In some countries called a managing director. chief financial officer (cfo) The individual responsible for the day-today management of financial issues for a business enterprise. chief information officer ( c i o ) The individual responsible for the day-to-day management of information technology for a business enterprise. c o l l a t e r a l a s s e t s Assets pledged to guarantee a loan. c o n f i d e n t i a l i t y a g r e e m e n t An obligation to protect the confidentiality of proprietary information exchanged between parties exploring a commercial relationship. Also referred to as a nondisclosure agreement (NDA). Use of a confidentiality agreement is generally a condition to the availability of trade secret protection in most countries.
