- Assets- resources, owned or controlled by a company, that have future benefits. These benefits must be quantifiable in monetary terms.
- Balance Sheet- a list of company’s assets, liabilities and owner’s equity of a particular point in time.
- Break Even- the unit volume where total revenue equals total cost; there is neither profit nor loss.
- Capacity- the amount of goods or work that can be produced by a company given its level of equipment, labor and facilities
- Capital- the funds necessary to establish or operate a business.
- Cash Flow- the movement of money into and out of a company; actual income received and actual payments paid out.
- Cash Flow Statement- a presentation of the cash inflows and outflows for a particular period of time. These flows are grouped into major categories of cash from operations, cash investing activities and cash-financing activities.
- Collateral- assets pledged in return for loans
- Conventional Financing- financing from established lenders, such as banks rather than from investors/debt financing
- Debt Financing- raising money for a business by borrowing, often in the form of bank loans, (see Conventional Financing above)
- Debt Service- money being paid out on a loan; the amount necessary to keep a loan from going into default
- Disbursements-money paid out
- Equity- shares of stock in a company; ownership interest in a company
- Expenses- outflows of resources to generate revenues
- Fixed Costs- those costs that are not responsive to changes in volume over the relevant range of time
- SCDED- South Carolina Department of Economic Development
- SCDOL- South Carolina Department of Labor
- Income Statement- a matching of a company’s accomplishments (i.e.sales) with effort (expenses from operations) during a particular period of time (revenues-expenses=net income.
- Leasehold Improvements- the changes made to a rented store, office or plant, to suit the tenant and make the location more appropriate for the conduct of the tenant’s business
- Letter of Intent- a letter or other document by a customer indicating the customer’s intention to buy from a company
- Liabilities- commitments to pay out assets (typically cash) to or render services for creditors
- Licensing- the granting or permission by one company to another to use its products, trademark or name in a limited, particular manner
- Liquidity- the ability to turn assets into cash quickly and easily
- Market Share- the percentage of the total available customer base captured by a company
- Net Worth- the total ownership interest in a company, represented by the excess of the total amount of assets minus the total amount of liabilities.
- Partnership- a legal relationship of two or more individuals to run a company
- Profit Margin- The amount of money earned after the cost of goods or all operating expenses are deducted; usually expressed in percentage terms
- Pro Forma Statements- a financial statement detailing management’s predictions
- Receipts- funds coming into the company; the actual money paid to the company for its products or services; not necessarily the same as a company’s actual receipts
- SBA- Small Business Administration
- SBDC- Small Business Development Center
- Sole Proprietorship- company owned and managed by one person
- Variable Costs- those costs that are directly responsive to changes in volume over the relevant range of time
- Venture Capitalists- individuals or firms who invest money in new enterprises
- Working Capital- the cash available to the company forthe ongoing operations of the business