The Ten3 Glossary serves also as an Alphabetical Directory of the Ten3 Business e-Coach
A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
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Absolute Liability Liability that is incurred due to product defects or negligent actions. Manufacturers or retail establishments are held responsible, even though the defect or action may not have been intentional or negligent. Accessory Goods Products required by commercial operations to conduct business, such as: office copiers, automobile wheel balancers, auxiliary power suppliers and air compressors. Account Statement A record of transactions, including payments, new debit and deposits, incurred during a defined period of time. A marketing tool used to capture public attention and influence purchasing decision for a product or service. Utilizes various forms of media to generate consumer response, such as flyers, magazines, newspapers, radio, television and Internet. Agribusiness The production and sale of commodities and products from the commercial farming industry. Applied Research Scientific study targeted to use in a product or process. A B C D E F G H I J K L M N O P Q R S T U V W X Y Z Balance Sheet A financial statement listing the total assets and liabilities of a company at a given time. Break-even Point The point at which revenues exceed expenses. Bridge Financing A short-term loan made in expectation of intermediate-term or long-term financing. Can be used when a company plans to go public in the near future. Broker One who matches resources available for innovation with those who need them. A group session where employees contribute their ideas for solving a problem or meeting a company objective without fear or retribution or ridicule. Wealthy individuals who are usually former entrepreneurs or executives who invest in entrepreneurial companies. Business architect is a person that initiates new business ventures or leads business innovation, designs a winning business model, and builds a sustainable balanced business system for a lasting success. Business Birth The formation of a new establishment or enterprise. Business Conditions Outside factors that can affect the financial performance of a business. Business Cycle A period of economic recession and recovery. These cycles vary in duration. Business Death The voluntary or involuntary closure of a firm or establishment. Business Failure Closure of a business causing a loss to at least one creditor. Business Format Franchising The purchase of the name, trademark and an ongoing business plan of the parent corporation or franchiser by the franchisee. Business License A legal authorization issued by municipal and state governments and required for business operations. Business Line A distinct product or service, sold to a uniform set of customers facing a well defined set of competitors, offering products or services that are similar to each other. Business model converts innovation to economic value for the business. It describes how a business positions itself within the value chain of its industry and how it intends to sustain itself, that is to generate revenue. Business Name Enterprises must register their business names with local governments. The procedure is part of the business licensing process and prevents any other business from using that same name for a similar business in the same locality. A document that spells out a company's expected course of action for a specified period, usually including a detailed listing and analysis of risks and uncertainties. For the small business, it should examine the proposed products, the market, the industry, the management policies, the marketing policies, production needs and financial needs. Frequently, it is used as a prospectus for potential investors and lenders. Business portfolio analysis is a strategy development tool based primarily on the market share of businesses and the growth of markets in which businesses exist. The complete and dynamically coordinated set of collaborative and transactional activities that deliver value to customers. Business Service Firm An establishment primarily engaged in rendering services to other business organizations on an fee or contract basis. Business Services Services offered to commercial enterprises, such as: equipment maintenance, supplying of part time personnel, engineering design and management consulting. A B C D E F G H I J K L M N O P Q R S T U V W X Y Z Convertible Preferred Stock A class of stock that pays a reasonable dividend and is convertible into common stock. Generally the convertible feature may only be exercised after being held for a stated period of time. This arrangement is usually considered second-round financing when a company needs equity to maintain its cash flow. Convertible Securities A feature of certain bonds, debentures, or preferred stock that allows them to be exchanged by the owner for another class of securities at a future date and in accordance with any other terms of the issue. A legal form of protection available to creators and authors to safeguard their works from unlawful use or claim of ownership by others for a limited period. Copyrights may be acquired for works of art, sculpture, music and published or unpublished manuscripts. Cross-license A license in which a licensor and licensee reciprocally grant to each other the rights for the use of patented objects of industrial property and know-how, belonging to each. Cultural intelligence (CQ) is your capability to grow personally through continuous learning and good understanding of diverse cultural heritage, wisdom and values, and to deal effectively with people from different cultural background and understanding. A B C D E F G H I J K L M N O P Q R S T U V W X Y Z Demonstration Showing that a product or process has been developed or modified sufficiently to meet the needs of users. Differentiation is a strategy that focuses on making an organization more competitive by developing a product or products that customers perceive as being different from products offered by competitors. Due Diligence (a form of research) A reasonable investigation conducted by the parties involved in preparing a registration statement to form a basis for believing the statements contained therein are true and that no material facts are omitted. A B C D E F G H I J K L M N O P Q R S T U V W X Y Z A widely recognized tool that is used to measure the efficiency with which a company has used its resources. In other words, EVA is the difference between return achieved on resources invested and the cost of resources. Emerging Technologies (or Pacing technologies) Technologies not yet in use but whose potential could be significant in replacing technologies used in current products or in generating new products. Enterprise An aggregation of all establishments owned by a parent company. An enterprise may consist of a single, independent establishment or include subsidiaries and other branches under the same ownership and control. Enterprise Zone A designated area, usually found in inner cities and other areas with significant unemployment, where business receive tax credits and other incentives to entice them to establish operations there. A person who takes the risk of organizing and operating a new business venture. Entrepreneurial creativity is about coming up with innovative ideas and turning them into value-creating profitable business activities. Entrepreneurial leadership is leadership that is based on the attitude that the leader is self-employed. Equity The ownership interest. Financing in which partial or total ownership of a company is surrendered in exchange for capital. An investor's financial return comes from dividend payments and from growth in the net worth of business. Equity Financing (also Equity midrisk venture capital) An unsecured investment in a company. Usually a purchase of ownership interest in a company that occurs in the latter stages of a company development. Equity Partnership A limited partnership arrangement for providing start-up and seed capital to businesses. Evaluation Determining the potential success of translating an invention into a product or process. A B C D E F G H I J K L M N O P Q R S T U V W X Y Z Fair Share Agreement An agreement reached between a franchiser and a minority business organization to extend business ownership to minorities by either reducing the amount of capital required by setting aside certain marketing areas for minority business owners. Feasibility Study A study to determine the likelihood that a proposed product or development will fulfill the objectives of a particular investor. Fiduciary An individual or group that holds assets in trust for a beneficiary. Financial Analysis The techniques used to determine money needs in a business. Techniques include ratio analysis, calculation of return on investment, guides for measuring profitability and break-even analysis to determine ultimate success. Financial Intermediary A financial institution that acts as the intermediary between borrowers and lenders. Banks, savings and loan associations, finance companies and venture capital companies are major financial intermediaries. Financial Statement A written record of business finances, including balance sheets and profit and loss statements. First-stage Financing (also known as Early stage financing and First-round financing) Financing provided to companies that have expended their initial capital and require funds to start full-scale manufacturing and sales. Fixed Assets Usually non-liquid assets that are integral to the enterprise's day-to-day business operations such as plants, equipment, furniture and real estate. Fixed Costs The day-to-day cost of doing business that is pre-committed, such as salaries, insurance, lease expenses and utilities. Flexible Benefit Plan A plan that offers a choice among cash and/or qualified benefits such as group term life insurance, accident and health insurance, group legal services, dependent care assistance and vacations. Fortitude The capacity to say 'yes' when the whole world wants to say, 'NO, it can't be done'. Four Ps Marketing terms referring to Product, Price, Place and Promotion. Franchising A form of licensing by which the owner - the franchiser - distributes or markets a product, method, or service through affiliated dealers called franchisees. The product, method, or service being marketed is identified by a brand name and the franchiser maintains control over the marketing methods employed. The franchisee is often given exclusive access to a defined geographic area. Free on Board (FOB) A pricing term indicating that the quoted price includes the cost of loading goods into transport vessels at a specified place. Fulfillment The system necessary for accurate delivery or an ordered item, including subscriptions and direct marketing. A B C D E F G H I J K L M N O P Q R S T U V W X Y Z Gatekeeper A key contact point for entry into a network. Gazelles are publicly traded companies that have grown at least 20% for each of the last four years, starting with at least US$ 1 million in sales. A B C D E F G H I J K L M N O P Q R S T U V W X Y Z Holding company A corporation that owns either a controlling interest in another company or all of its shares. The accounts of a wholly-owned subsidiary may be consolidated with those of the parent company. Normally a company whose main assets are securities in other companies. A B C D E F G H I J K L M N O P Q R S T U V W X Y Z Informal capital Financing from informal, unorganized sources; includes informal debt capital such as trade credit or loans from friends and relatives and equity capital from informal investors. Initial Public Offering (IPO) A corporation's first offering of stock to the public. Conversion of new knowledge into new products and services. Any idea or work that can be considered proprietary in nature and is thus protected from infringement by others. Invention The tangible form of a technological idea, which could include a laboratory prototype, drawings or formulas. A B C D E F G H I J K L M N O P Q R S T U V W X Y Z Venture in which two or more people combine efforts in a particular business enterprise, usually a single transaction or a limited activity and agree to share the profits and losses jointly or in proportion to their contributions. A B C D E F G H I J K L M N O P Q R S T U V W X Y Z Kaizen means "improvement". Kaizen strategy calls for never-ending efforts for improvement involving everyone in the organization – managers and workers alike. A B C D E F G H I J K L M N O P Q R S T U V W X Y Z Leadership is the process of directing the behavior of others toward the accomplishment of some common objective. Lean Production or Lean Manufacturing – the philosophy of continually reducing waste in all areas and in all forms; an English phrase coined to summarize Japanese manufacturing techniques (specifically, the Toyota Production System). A permission granted by a competent authority to engage in a business, occupation or activity that is otherwise unlawful Licensee A person or an organization receiving a license Licensing Agreement A legal contract in which the licensor grants the the licensee rights to use specific property, in return for which royalties will be paid. Licensor A person or an organization giving or "granting" a license A B C D E F G H I J K L M N O P Q R S T U V W X Y Z Market Capitalization The value of a company's stock. Market Evaluation The use of market information to determine the sales potential of a specific product or process. Market Value Added (MVA) The difference between the market value of the company and the total capital invested in the company. Matchmaker Company A company that specializes in brokering publicly traded shell companies, which have a valid securities registration but little or no business activity, for acquisition by privately-held companies in reverse mergers. Mezzanine financing A layer of money, either debt or equity, after the initial investment, during the early growth stages, to finance operations until the firm is ready to go to market for its long-run financing. A B C D E F G H I J K L M N O P Q R S T U V W X Y Z Net income The amount remaining from earnings and profits after all expenses and costs have been met or deducted. Also known as Net earnings. Net profit Money earned after production and overhead expenses have been deducted. Net worth The difference between a company's total assets and its total liabilities. Network A chain of interconnected individuals or organizations sharing information and/or services. A B C D E F G H I J K L M N O P Q R S T U V W X Y Z Ordinary shares Proprietor's capital, normally carry voting rights. They also carry the greatest risk and potentially the greatest reward, for twp reasons. The first is that they are rewarded in the form of dividends after all other costs have been met. The second is that they are entitled to any surplus that remains after all claims to capital have been met is the company wound up. Certain classes of ordinary shares may carry deferred or preferred rights in certain respects. Overhead Expenses, such as employee benefits and building utilities, incurred by a business that are unrelated to the actual product or service sold. A B C D E F G H I J K L M N O P Q R S T U V W X Y Z A right given to an inventor for a limited period of time; this right allows the inventor to treat an idea as his/her property and to prevent anyone else from using it without his/her permission. In a hierarchy every employee tends to rise to his level of incompetence. Preference Shares Give their holders certain rights in priority to the ordinary shareholders, especially as regards entitlement to dividends and entitlement to repayment of capital is the company is wound up. They are normally rewarded at a fixed rate of dividend but may have rights to participate in profits by way of further dividend. Except in special circumstances, they do not normally carry voting rights. Sometimes, preference shares carry conversion and/or redemption rights enabling the holders either to convert their investment into ordinary shares or to realize it at some future date. Private Placement (also known as Private financing or Private offering) A method of raising capital by offering for sale an investment or business to a small group of investors (generally avoiding registration with securities registration agencies). Pro Forma The use of hypothetical figures (based on future expectations) in financial statements to represent future expenditures, debts and other potential financial expenses. The stage of the innovation process where research is translated into a product or process through evaluation, adaptation and demonstration. Product Family Advertising Advertising designed to convince the prospect that they have a wide range of functionality to choose from today and after they buy will not be locked into a single product or service environment in the future. Product Franchising An arrangement for a franchisee to use the name and to produce the product line of the franchiser or parent corporation. Productivity A measurement of the number of goods produced during a specific amount of time. Profit Margin Total revenues less total expenses. Proprietary Technology Technology that is unique and legally owned by an enterprise. The technology may be integral of the product or service being offered or it may be used in the production of the product or service. Proprietorship The most common legal form of business ownership; the majority of all small business are proprietorships. The liability of the owner is unlimited in this form of ownership. A model that demonstrates the validity of the concept of an invention (laboratory prototype); a model that meets the needs of the manufacturing process and the user (production prototype). Prudent Investor Rule or Standard A legal doctrine that requires fiduciaries to make investments using the prudence, diligence and intelligence that would be used by a prudent person in making similar investments. Because fiduciaries make investments on behalf of third-party beneficiaries, the standard results in very conservative investments. Until recently, most regulations required the fiduciary to apply this standard to each investment. Newer, more progressive regulations permit fiduciaries to apply this standard to the portfolio taken as a whole, thereby allowing a fiduciary to balance a portfolio with higher-yield, higher-risk investments. Public Company A company whose shares are sold to the public at large. Public Equity Markets Organized markets for trading in equity shares such as common stocks, preferred stock and warrants. Includes markets for both regularly traded and non-regularly traded securities. Public Offering General solicitation for participation in an investment opportunity. A B C D E F G H I J K L M N O P Q R S T U V W X Y Z Quality Control The process by which a product is checked and tested to ensure consistent standards of high quality A B C D E F G H I J K L M N O P Q R S T U V W X Y Z Rate of Return The yield obtained on a security or other investment based on its purchase price or its current market price. The total rate of return is current income or minus capital appreciation or depreciation. Relationship Responsibility The moral responsibility of every manager to communicate reasons and plans. Research The initial stage of the innovation process, which includes idea generation and invention. Research and Development Financing A tax-advantaged partnership set up to finance product development for start-ups as well as more mature companies. Revolving Credit An agreement with a lending institution for an amount of money, which cannot exceed a set maximum, over a specified period of time. Each time the borrower repays a portion of the loan, the amount of the repayment may be borrowed yet again. A B C D E F G H I J K L M N O P Q R S T U V W X Y Z Scale Economies The decline of the production cost per unit of output (average cost) as the volume of output increases. Second-stage Financing (also known as Second-round financing) Working capital for the initial expansion of a company that is producing, shipping and has growing accounts receivable and inventories. Seed Capital Venture financing provided in the early stages of the innovation process, usually during product development. A new business, at the earliest stages of development and financing. Start-up Costs Costs incurred before a business can commence operations. Strategic Business Unit (SBU) In business portfolio analysis, a significant organizational segment that is analyzed to develop organizational strategy aimed at generating future business or revenue. SBUs vary in form, but all are a single business (or collection of businesses), have their own competitors and a manager accountable for operations, and can be independently planned for. Strategic Relationships An agreement between two or more enterprises to conduct specified business process in a joint manner. This usually relates to technology development or marketing and distribution efforts. Surety Bonds Bonds providing reimbursement to an individual, company or a government is a firm fails to complete a contract. Sustainable Competitive Advantage Sustainable competitive advantage is the prolonged benefit of implementing some unique value-creating strategy based on unique combination of internal organizational resources and capabilities that cannot be replicated by competitors. SWOT (Strengths, Weaknesses, Opportunities, Threats) Analysis A strategy development tool that matches internal organizational strengths and weaknesses with external opportunities and threats. Synergy is the energy or force created by the working together of various parts or processes. Synergy in business is the benefit derived from combining two or more elements (or businesses) so that the performance of the combination is higher than that of the sum of the individual elements (or businesses). Systems thinking is the ability to things as a whole (or holistically) including the many different types of relationships between the many elements in a complex system. A B C D E F G H I J K L M N O P Q R S T U V W X Y Z Team is a group whose members influence one another toward the accomplishment of (an) organizational objective(s). Technical Evaluation Assessment of technological feasibility Technology The method in which a firm combines and utilizes labor and capital resources to produce goods or services; the application of science for commercial or industrial purposes. Technology Management Application of managerial techniques most suitable for ensuring that the technological factor is exploited for achievement of an enterprise's goals. The movement of information about a technology or intellectual property from one party to another for use. Time Management Skills and scheduling techniques used to maximize productivity. Tool Box Slang for instruments, tactics, and methods available to a manager for making a deal. The person who is unfamiliar with the tools one has for use is handicapped in cutting deals. Some tools are: money, securities, rights, options, perquisites, tax benefits, employment, licenses, distribution rights, leases, royalties, etc. A graphic symbol, device or slogan that identifies a business. A business has property right to its trademark from the inception of its use (in USA) or since its registration (in Europe). Trademark laws guarantee that a special mark placed on a certain kind of goods indicates the origin of the goods; more specifically the manufacturer of the goods or a service provider. A commercially valuable idea that is not disclosed to the public. Competitive advantage gained by a business through use of a unique manufacturing process or formula. A B C D E F G H I J K L M N O P Q R S T U V W X Y Z Underwriting A process by which an insurer determines whether or not and on what basis it will accept an application for insurance. In an experience-rated plan, premiums are based on a firm's or group's past claims; factors other than prior claims are used for community-rated or manually rated plans. Unique Selling Proposition (USP) A unique selling proposition (USP) defines your competitive advantage. Your must identify what makes you different from your competitors and emphasize these advantages in your marketing. A B C D E F G H I J K L M N O P Q R S T U V W X Y Z Value Investing Buying stock for less than what they are worth. Value proposition is a description of the customer problem, the solution that addresses the problem, and the value of this solution from the customer's perspective. Money used to support new or unusual business ventures that exhibit above-average growth rates, significant potential for market expansion and are in need of additional financing to sustain growth or further research and development; equity or equity-type financing traditionally provided at the commercialization stage, increasingly available prior to commercialization. A company organized to provide seed capital to a business in a formation stage, or in its first or second stage of expansion. Funding is obtained through public or private pension funds, commercial banks and bank holding companies, small business investment corporations, private venture capital firms, insurance companies, investment management companies, bank trust departments, industrial companies seeking to diversify their investment and investment bankers acting as intermediaries for other investors or directly investing on their own behalf. Venture Capital Limited Partnerships Designed for business development, these partnerships are institutional mechanisms for providing capital for young, technology-orientated business. The investor's money is pooled and invested in money market assets until venture investments have been selected. The general partners are experienced investment managers who select and invest the equity and debt securities of firms with growth potential and the ability to go public in the near future. Venture capital network (VCN) A computer database that matches investors with entrepreneurs. An entrepreneur building a high-risk-high-return venture around a new-to-the-world product or service. A B C D E F G H I J K L M N O P Q R S T U V W X Y Z The cash available to an enterprise for day-to-day operations. This can be a firm's short-term investment of current assets, including cash, short-term securities, accounts receivable and inventories. A B C D E F G H I J K L M N O P Q R S T U V W X Y Z A B C D E F G H I J K L M N O P Q R S T U V W X Y Z Yield The rate of income returned on an investment, expressed as a percentage. Income yield is obtained by dividing the current dollar income by the current market price of the security. Net yield or yield to maturity is the current income yield minus any premium above par or plus any discount from par in purchase price, with the adjustment spread over the period from the date of purchase to the date of maturity. A B C D E F G H I J K L M N O P Q R S T U V W X Y Z Zero-base Budgeting Requires managers to justify their entire budget request in detail rather than simply referring to budget amounts established in previous years. ZOPA (zone of possible agreement) The range of investment terms or amounts open to possible negotiation, ranging from the lowest the entrepreneur is willing to accept (the minimum) to the most the investor is willing to pay (the maximum). |
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