Business Word Definitions and usage Business & Marketing Paper

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Business word definitions and usage
1 Marketing entails communicating the value of goods or services to prospective clients with the aim of selling, and at a profit.
Marketing is a process that involves many aspects in the business staring from research to the actual selling of the product to the clients.
2 R&D is defined as research and development activities a company undertakes to develop new technology, systems, product or a service for personal use or marketing purposes
The R&D department is responsible for encouraging creativity and innovation in an organization.
3 Market is an arrangement involving buyers and sellers where they exchange information, goods and services for money
The ancient traditional markets were mostly characterized by the exchange of goods and services with goods but this was changed with the introduction of monetary value.
4 Quarter is referred to as a three-month period on a corporation's financial calendar in which firms use for budgeting and accounting activities especially when paying dividends or presenting frequent financial reports
In the second quarter of the year, the company made hay (take advantage of the situation to make profits) through the selling facemasks that were in high demand following COVID-19 outbreak.
5 Asset is an item or resource of monetary value that a particular business owns.
The company’s assets were frozen following claims of corruption in the organization.
6 Liability is a legal debt or financial obligation a business incurs and needs to pay.
The loans and mortgagees are part of the liabilities that the company needs to pay at the end of the financial year.
7 Contract is a legal agreement among two or more people concerning the buying and selling of commodities or services.
Company A entered into a contract with company B to supply it raw materials for its production process.
8 Venture Capital is a form of financing an investor offers to a promising startup entity in exchange for partial equity in the same business.
The government has offered venture capital to youths who want to open a company worth $1 million with a 40% ownership of the business.
9 Angel Investor is a wealthy person who offers financial backup to up-coming entrepreneurs in exchange for a percentage ownership of the company
Angel investors play a great role in not only offering financial support to start-ups but also in guiding them to achieve their potential and stability in running a business.
10 Opportunity Cost is defined as possible benefits a company or an investor overlooks when preferring an idea to another.
In choosing partnership over merger, the company lost over $2 million as opportunity cost.
Window of Opportunity is a specified duration during which a company has a chance to join a new market to attain a desired result.
The company did not hesitate to venture into the Asian market as soon as a window of opportunity presented itself. It was a low hanging fruit (easily achieved) for the organization.
CAGR or Compound Annual Growth Rate is mean average growth rate which businesses calculate yearly to determine revenue for personal assets, a fluctuating valuable item or investments over a certain period.
The company’s annual growth rate was at 12% compared to the previous year where it recorded a 8% growth rate.
Capital is defined as financial assets a company needs to establish, fund or grow a business.
To start a business, one needs enough capital to put everything in place before they can start
Net Profit is a firm’s total earnings less their operating costs, interest, taxes and depreciation.
The company’s net profit dropped significantly in the second quarter of 2020 to $3million as compared to $5.2million that was recorded at the same period in 2019.
Gross Profit is total sales of a business less goods ‘total cost.
As a businessman, you should never celebrate high gross profit until the time you less other expenses to arrive at the net profit.
Revenue is a total income a business generates without deducting any expenses.
Traffic jam costs the state $1 billion every year.
Inventory is finished goods or property a business holds in stock for selling
Maintaining an inventory is key in keeping track of the items in store against those that have been sold out.
Terms is primary business information which controls a contract between an entrepreneur and a customer...