INTERNET MARKETING

INTERNET MARKETING

INTERNET MARKETING

 

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Key Economic Indicators 
Item  Rate 
CPI: 0.3% (Mar 2017) 
GDP Growth:   1.2% (1st QTR 2017)
Prime Interest Rate:   4%
Consumer Confidence:  120.3% (Apr 2017) 
Small Biz Confidence:  104.5% (Apr 2017) 
Avg Gas Price:  $2.38 
 
 
 
 
 

 

 

 

 

 

 

 

 

 

BUSINESS TERMS (E-I)

 

 



 

Understanding business terms is the key to learning about business. Terms E-I are listed below:

Earnings (EBIT, EBITDA), Equity, Expenses, Fiscal Year (FY), Fixed Asets, Fixed Expenses, Forecasting, Holding Company, Inflation, Insolvency, Income Statement, Intellectual Property, Interest Rate, Inventory, Invoice  

 

Earnings (EBIT, EBITDA)
Earnings and profits are often used interchangeably.  Earnigns represents the amount of money the company made after paying taxes.  There are two type of earnings, EBIT and EBITDA .

Earnings Before Interest and Taxes (EBIT):  This is the difference between operating revenue and operating expenses before taking out interest and taxes.

Earnings Before Interest, Taxes, Depreciation and Ammortization (EBITDA):  This is the difference between operating income and operating expenses before taking out interest, taxes, depreciation and ammortization.


Efficiency
In business efficiency means minimizing losses and expenditures while maximizing profits.  It is reducing cost while increasing performance.

 



Equity
Equity represents the difference between liabilities and assets.  When the value of assets exceeds liabilities this is called equity.  It is also used to describe ownership in stocks or other forms of securities.

 

Expenses (Expenditure)
Expenses or Expenditure are cost the company incurrs in order to do business.  These costs includes, rent, office supplies, wages, raw material cost, marketing cost, etc.


Fiscal Year (FY)
Fiscal Year is the 12 month period used for calculating financial statements and filing corporate income tax reports.  Unlike the calendar year that begin on 1 January and ends on 31 December, the Fiscal year for most corporations in the U.S. is from July to June.  Each company will determine their own fiscal year.  The federal government uses October to September as it's fiscal year.


Fixed Assets
Fixed Assets are long term, tangible assets held for business use and not expected to be converted to cash in the current or upcoming fiscal year, such as manufacturing equipment, real estate, and furniture.  Source:  Investor Words


Fixed Expenses
Fixed expenses are expenses that do not change as a function of the activity of the business within a short timeframe.  They remain the same over time.  Expenses such as interest on a loan and rent is considered fixed.  While other cost such as electricity, administrative cost are not fixed because they can change from month to month.

Forecasting
Forecasting is making predictions about future events.  Forecasting your business earnings is about making an informed prediction about future earnings.  The foundation for forecastign is past performance.  You can start by using the company's past performance and make some assumptions about how future events will impact what happened in the past.

Fulfillment Center
A Fulfillment Center is a site where purchased items are packaged and shipped on behalf of a seller.  Companies provide fulfillment services whereby they maintain an inventory of a seller's products and whenever a customer purchases the item from the seller's website, the fulfillment service company gets the order and package and ships the item to the customer for a fee.  The seller pays the fulfillment service company the fee.  Businesses use fulfillment centers to save the cost of warehousing and personnel.


Growth
Growth is the increasse in the business' revenues, sales or income.



Globalization (Economic)
Globalization is the increasing interdependence between economies.  It is the increasing flow of goods and services between countries.  Through trade agreements and lifting of tariffs and trade barriers companies are able to more freely offer their goods and services to consumers in other countries and provide opportunities for growth amongst all participants.


Holding Company
A Holding Company is a company that owns enough voting stock in another firm to control management and operations by influencing or electing its board of directors.  Holding Companies are also called Parent Companies.  Source:  Investor Words


Inflation
The overall general upward price movement of goods and services in an economy (often caused by an increase in the supply of money), usually as measured by the Consumer Price Index and the Producer Price Index. Over time, as the cost of goods and services increase, the value of a dollar is going to fall becuase a person won't be able to purchase as much with that dolar as he/she previously could.  Source:  Investor Words


Insolvency
Insolvency is when an organization is no longer able to meet its debt obligations.


Income Statement
An income statement shows the bottom line or net profit.  It shows whether or not a company made or lost money during a specific period of time. It shows revenues minus expenses and other costs.

Intellectual Property
Any intangible asset that consists of human knowledge and ideas. Some examples are patents, copyrights, trademarks and software.

Interest Rate
A rate which is charged or paid for the use of money. An interest rate is often expressed as an annual percentage of the principal. It is calculated by dividing the amount of interest by the amount of principal. Interest rates often change as a result of inflation and Federal Reserve Board policies.  Source: Investor Words

Inventory
A company's merchandise, raw materials and finished and unfinished products which have nto yet been sold. These are considered liquid assets, since they can be converted into cash quite easily.   Source:  Investor Words

Invoice
An invoice is a bill you issue to a customer for products delivered or services rendered to the customer.  Invoices that are not paid become accounts receivables.













 

 

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