Archive for the ‘Word of the Day’ Category
A liability that is payable more than 12 months into the future. Opposite of current liability.
Usage: A 15-year traditional mortgage is both a current liability and a long-term liability.
A review of a firm’s financial statements by an outside company that is not as thorough as an audit.
Usage: Many small companies get an annual review because it is cheaper than an audit.
Estimate as to how much a person can afford in order to purchase a home.
Usage: The broker gave us an affordability estimate with a price range and approximate mortgage payments.
An asset that cannot be easily converted into cash within a short period of time, such as office equipment, buildings, and vehicles. Sometimes referred to as Property, Plant, and Equipment (PP&E).
Usage: The department store listing of fixed assets included shelving, counters, and clothing racks.
Growth that comes from within the organization through increased sales, new products, or product extensions.
Usage: Organic growth is a strategy that implies that there will be no mergers or acquisitions.
A well-regarded professional who is able to express new ideas and new thinking on a particular subject. An innovator who influences others.
Usage: Many believe that Jack Welch was an outstanding CEO and a thought leader in the field of management.
Ongoing market research activity that assembles secondary research and information, as it becomes available, to monitor changes in the marketplace.
Usage: According to our competitive intelligence, our key competitor just hired two more salespeople.
To claim that someone else is responsible in order to avoid responsibility.
Usage: Everyone was passing the buck when the contract was canceled.
A business strategy that depends on giving away basic services for free and charging for premium services.
Usage: The web entrepreneurs wanted to use the freemium business model.
The amount of money for which an asset could be sold in the open market.
Usage: The market value of an asset is rarely the same as book value.