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| Those that respond directly and proportionately to changes in activity level or volume, such as raw materials, hourly wages and commissions, utilities, inventory, office supplies, packaging mailing and shipping costs |
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| Those that do not fluctuate with changes in production activity level or sales volume, such as rent, insurance, equipment leases, payments on loans, depreciation, management, salaries and advertising |
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| The aquisition of funds by borrowing |
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| The acquisition of funds in exchange for ownership |
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| Internally generated financing |
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| Funds generated through profit and/or management of the firms assets and liabilities |
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| Assets that can be converted to cash or consumed within one year. This includes cash, investments, accounts receivable, and Inventory |
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| Items that are used over a longer period of time (beyond one year) and are not easily converted to cash. This includes buildings, equipment, automobiles, etc |
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| Monies you owe that are to be paid within one year. This includes- Accounts payable, wages/salaries payable, taxes payable, and the current portion (within one year) of long term loans, etc. |
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| Monies you owe that are to be paid beyond one year. This includes- some bank loans, mortgage loans, equipment loans, other notes payable, etc. |
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| Defined as net worth. The difference between assets and liabilities, aka the things of value that you own versus the amount you owe your creditors |
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| Another definition for owners equity, consists of paid-in-capital (the amount of money invested by the ventures owners) and the retained earnings |
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| A document generated monthly and/or annually that reports the earnings of a company by stating all relevant income |
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| The financial statement that lists the assets, liabilities and equity of a company at a specific point in time and is used to calculated the net worth of a business. A= L + E |
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| The difference between cash coming into the venture and cash going out of the venture. DIFFERENT than profit due to accounting rules. Cash flow statement reflects actual cash position, and the sources and uses of cash |
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An intangible asset created by human intellect that has commercial value and confers rights to the owner
Or any patent, trademark, copyright, or trade secret held by the entrepreneur |
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| An exclusive right granted by the government for an invention (product,process, or design) that provides a new way of doing something; offers a new solution to a problem; and/or a design representing a product. |
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| A Distinctive name, symbol, motto or design that legally identifies a company, a companys products or services, and the sources or sponsorship of goods/services |
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| An orignal work of authorship conferring rights to the author preventing others from copying, publishing or printing the original work. |
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| Information that is not generally known to the public, confers economic benefit on its holder, and it's the subject of reasonable efforts to maintain its secrecy |
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| Specific group of potential customers toward which the venture aims its marketing |
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| Process of dividing a market into small, homogenous, definable, and measurable groups for purposes of targeting marketing strategy. |
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| A binding agreement between two or more parties for performing or refraining from performing some specified acts in exchange for lawful consideration |
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| A budget for asset items that have a useful life of more than one year |
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| Those expenses that are necessary for the operation and maintenance of an enterprice, but not directly associated with the production |
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| Estimate of production by month or by the year expressed in units, Units sold= # units produced - desired inventory balance |
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| Organized by activity (Marketing, Sales, Finance, Development) |
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| Organized by product, market, geography, or combinations |
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| Organized by both function and division |
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| Strict reporting relationships |
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| Lose reporting relationships |
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| Money made available by professional investors who fund innovative enterprises or research, especially in high technology, in which both the risk of loss and the potential for profit is deemed considerable. AKA risk capital |
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| Financing of new ventures by wealthy individuals often called business angels, who fund the ventures in exchange for equity for the venture |
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| To finance your companys start up and growth with the assistance of input from others |
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| Virtually invisible group of wealthy individuals who invest in start ups, more patient in their investment horizons and do not have a problem waiting for a period of 7 to 10 years to cash out |
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| Break Even Analysis Formula |
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| Total Fixed Costs / (Sales price-Variable cost per unit or cont marg) |
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