GLOSSARY of Business Terms — N through Z |
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N
Negotiated Grievance Procedure – process used by employers and their employees when filing grievances or disputes.
Negotiation Dispute – The point at which both parties cannot come to a compromise.
Net Worth – Assets minus total liabilities and debts.
Notes and Accounts Receivable – Money owed to a company for goods purchased by credit, often involving liquidation.
O
Obligations – Any debts requiring present or future payment.
Ordinary Interest – Interest based on 360 days a year.
Outlays – Cash payments for loans and costs pertaining to them.
Overhead – The continuing expenses of a business not directly related to production such as rent and insurance.
P
Partnership – wo or more people who manage an unincorporated business. They share profits, losses, assets, and liabilities.
Patent – he right to exclusive use of an invention you created. You must file with the United States Patent and Trademark Office (USPTO).
Power of Attorney – Gives a person the right to act on behalf of another person.
Preferred Lenders – The SBA allows a bank (preferred lender) to grant a loan without first approving it with the SBA.
Prime Rate – The interest rate that lenders charge their highest credit rating borrowers.
Procurement Automated Source System (PASS) – A central referral system managed by the SBA that tells the government you are interested in selling to them.
Product Liability – A type of liability that applies to sellers and manufacturers of goods.
Professional and Trade Associations – Non–profit or voluntary companies that promote help with common interests.
Profit and Loss Statement (P&L) – An income statement that shows earnings, expenses, and net profit.
Protest – A statement in writing of a payment disagreement by a bidder.
Ratio – Relationship of one item divided by another item within financial statements.
Request for Proposal – Solicitations by companies to bidders for a proposed plan of action to solve a specific problem.
Return on Investment (ROI) – The income that an investment returns. Profit based on the funds spent to reach it.
S
Secondary Market – An investor who purchases the interest from another lender.
Simple Interest – Interest that is paid on the loan principal.
Sole Proprietorship – A single entity consisting of an owner and his or her company who are 100% liable. This is the most common type of business today.
Standard Industrial Classification Code (SIC) – A 4–digit number used to identify a business and its activities. The 4–digit code identifies the sector specific industry that a company is a member of. The first two digits identify the broad industrial sector (such as SIC code 37, Transportation Equipment) and the last two digits identify the company's specialty within this broad sector (such as 3716, Motor Homes).
Surety Bonds – A pledge used to back a company if a firm does not complete a contract.
Sweat Equity – The investment a company's executives make and will continue to make with no compensation.
T
Tax Number – A number used by a business so that it does not have to pay sales tax on goods and products bought at wholesale.
Turnover – The ratio of annual sales to average inventory of goods per fiscal year. If you have a high turnover rate, your business is running efficiently
U
Undelivered Orders – The amount of goods that have been purchased or have an agreement to purchase that have not been given to the consumer as of yet.
Usury – An illegal, high interest rate charged to a buyer.
V
Variable Cost – Costs that do not stay consistent based on the output level of production of goods and services.
Venture Capital – Money given to a new, extremely promising business with growth potential.
W
Workers' Compensation – A state-mandated form of insurance covering workers injured in job-related accidents.
