Archive for the ‘Word of the Day’ Category
International Accounting Standards Board. An independent board of experts that develops International Financial Reporting Standards, which are used internationally.
Usage: The global economy has increased the importance of the IASB.
The percent of the potential customers that are actually purchasing a specific product or service.
Usage: The product manager’s new marketing plan was designed to increase market share.
An increase or decrease in an estimate to make it easier to achieve.
Usage: Managers include slack in their budget numbers in case something unexpected happens.
Measurements and measurement systems used to evaluate individual or company performance.
Usage: The goal was to exceed all metrics and prove that the company was the best.
A prohibition against an individual competing with another company, usually a former employer.
Usage: The company required the new sales manager to sign a non-compete clause.
Earnings Before Interest, Taxes, Depreciation, and Amortization. Pronounced as ee-bit-da. A line on the income statement.
Usage: EBITDA is an indicator of profitability and cash flow.
An organized report with financial analysis and supporting documentation to support a business proposition. Sometimes refers only to the financial justification for a business opportunity. Sometimes used interchangeably with “business plan.”
Usage: The business case demonstrates that our idea will be profitable within three years.
Research and data collected for a specific purpose.
Usage: Focus groups and telephone surveys are a type of primary market research.
Other People’s Money. Bank or personal loans, venture capital, investment, or grants that might be made available to a business.
Usage: The business owner was looking for OPM instead of putting his own money at risk.
The trial run. A term used by techie types to describe the test that makes sure that your equipment, software, and systems actually work as expected.
Usage: The installer ran a beta test before teaching the customer how to use their new home theater.