INTERNET MARKETING

 
INTERNET MARKETING

 

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BUSINESS TERMS (A-B)

 

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

Accounts Receivable, Accrual Basis, Ammortization, Assets, Balance Sheet, Bankruptcy, Bonus, Bottom Line, Brand, Branding, Break-Even, Budget

 

Account Receivables
Accounts Receivables are money owed to your business by your clients.  For the most part when you sell a product you receive payment right away.  In some instances when you sell to certain customers (such as certain types of businesses) you will not get paid right away.  These outstanding payments become Accounts Receiveables

 

Accrual Basis
Accrual basis is one of the methods of accounting.  It is a method of accounting whereby income and expenses are recognized as they are earned or incurred. 

In other words, if you sold a product this month and will not be paid until next month you will asses the payment as occurring this month because that is the time at which you earned the revenue. 

Also, if you have an expense such as IT service that you incurred this month but may not pay for it until next month, you will assess the expense to occur this month because that is the time at which you incurred it.  See more.

Alpha Testing
Alpha testing is done on a product or service internally by employees or by an independent test team.  The next test that follows is Beta Testing (see below).

 

Ammortization
Ammortization is the deduction of capital expenses for "intangible" assets over a specific period of time.  This deduction ususally takes place over the life-span of the asset.

Intangible assets are intellectual property such as copyrights and patents.

For example, let's say that IBM spent $60 million dollars to develop and patent a new computer device and the patent on the equipment last 15 years.  IBM could record $4 million each year as an ammortization expense.


Assets
Assets represents everything owned by a corporation that can be converted to cash value.  Cash is also an asset.   There are two types of assets, tangible and intangible.  Tangible assets are physical items such as buildings, automobiles, furniture, etc.  Intangible assets are non physical items such as stocks and bonds, intellectual property (copyright & patents),  trademarks, etc.

B2B (Business to Business)
B2B which stands for Business to Business refers to businesses that sells to other businesses.  Some businesses sell to consumers (B2C), some sell to other businesses while others sell to both consumers and businesses.

B2C (Business to Consumers)
B2C means Business to Consumers.  It refers to businesses whose focus is selling their products to consumers.

Balance Sheet
The Balance Sheet is a snapshot of a company's financial condition at a specific moment in time.  It is also referred to as the statement of financial condition.  The balance sheet list assets, liabilities and ownership equity.  Balance sheet for the current year is normally presented alongside the balance sheet for the previous year for comparison.  The balance sheet, along with the income statement, cash flow statement, and state of stockholders' equity.  are the essential parts of any company's financial statements.


Bankruptcy
 Bankruptcy is a legal proceeding that an organization can take when it can no longer repay the debit it owes to it's creditors.



Beta Testing
Beta Testing is conducting external testing of your product or service.  This is where you release your product or service to a limited audience outside of the organization so that you can get realistic feedback from actual users.  Beta testing is the final testing that is conducted before releasing the product to the public.  Beta Testing is done before Alpha Testing (see above).

Bonus
Bonus is extra pay you receive above your normal pay.  It is usually given as an incentive for reaching certain accomplishments (length of service, good performance, achieving certain milestones, etc.). 


Bottom Line
The bottom line is the difference between sales, expenses and taxes.  It is the bottom line  on the balance sheet and shows whether or not the company is profitable.


Bootstrapping
The process of funding a stgartup through your own funding.  That means not taking investment from any other source such as Angel Investors, Venture Capitalists, borrowing from a bank, etc.


Brand
A brand is a name, term, design, symbol or other features that distinguishes one company's goods or services as being distinct from others.


Branding
Branding is the methods and means by which you propel your business into the public consciousness.


Break Even
Accounting is the backbone of business. Ethical and professional accounting forms a clear financial image of a business, and allows managers to make informed decisions, keeps investors abreast of developments in the business, and keeps the business profitable. It is also one of the oldest professions

Broker
A Broker is an individual that arranges transactions between buyers and sellers in return for a commission.  Brokers specialize in a particular field of work such as Real Estate, Import/Export, etc.


Budget
Accounting is the backbone of business. Ethical and professional accounting forms a clear financial image of a business, and allows managers to make informed decisions, keeps investors abreast of developments in the business, and keeps the business profitable. It is also one of the oldest professions




 

 

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