INTERNET MARKETING

INTERNET MARKETING

INTERNET MARKETING

 

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GDP Growth:   0.7% (1st QTR 2017)
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BUSINESS TERMS (N-O)

 

 


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

Net Assets, Net Income, Net Profit Margin, Net Worth, Non-Disclosure Agreement, Non-Recurring Expenses, Open-Ended Credit, Operating Expenses, Operating Income, Outsourcing, Overhead


 

Net Assets
Net Asset is assets minus liabilities.  Net Assets is also referred to as shareholder equity.

Net Income
Net Income is income after all expenses and taxes have been taken out.   


Net Profit Margin
Net Profit Margin is Net Income divided by Revenue times 100. 


Net Worth
Networth is the same as Net Assets.  It is the difference between Net Assets and Liabilities.


Non-Disclosure Agreement
A Non-Disclousre Agreement (NDA) is an agreement between two parties to keep certain information confidential.  It is normally used when parties need to share information but want to ensure that it is restricted to certain individuals they specify.


Non-Recurring Expenses
Non-Recurring expenses are expenses that occur as a one time charge and is not expected to re-occur in the reporting period.  For example, the cost of cleaning up from a natural disaster, the cost of repair a damaged vehicle from an accident.


Open-Ended Credit
A pre-approved loan between a financial institution and borrower that may be used repeatedly up to a certain limit and can subsequently be paid back prior to payments comign due. The pre-approved amount will be set out in the agreement between the lender and the borrower.

Open-end credits is also referred to as a "Line of Credit" or "Revolving Line of Credit".  Source:  Investopia


Operating Expenses
These are expenses associated with administering a business on a day to day basis. Operating costs include both fixed costs and variable costs. Fixed costs, such as overhead, remain the same regardless of the number of products produced; variable costs, such as materials, can vary according to how much product is produced. Source:  Investopia


Operating Income
Operating Income is the difference between operating revenues and operating expenses.  Operating Income is also referred to as Earnings Before Income and Taxes (EBIT).


Outsourcing
Outsourcing is the process of contracting out a business process, chich an organization may have previously performed internally or which the company deems necessary or important, to an independent organization, where the process is purchased as a service.  Source:  Wikipedia


Overhead
An accounting term that refers to all ongoing business expenses not including or related to direct labor, direct materials or third-party expenses that are billed directly to customers. Overhead must be paid for on an ongoing basis, regardless of whether a company is doing a high or low volume of business.  Source:  Investopia


Oversell
An accounting term that refers to all ongoing business expenses not including or related to direct labor, direct materials or third-party expenses that are billed directly to customers. Overhead must be paid for on an ongoing basis, regardless of whether a company is doing a high or low volume of business.  Source:  Investopia















 

 

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