Business Terms II

1. Marketing - the strategic functions involved in identifying and appealing to particular

groups of consumers, often including activities such as advertising, branding, pricing, and sales.

2. Product - something produced by human or mechanical effort or by a natural process, an

item that is made or refined and marketed.

3. Price - the amount as of money or goods, asked for or given in exchange for something else,
the cost at which something is obtained.

4.Wholesaling - the sale and distribution of goods to specific customer types such as those
most commonly referred to as resellers.

5. Retailing - a distribution channel function where one organization buys products from
supplying firms or manufactures the product themselves, and then sells these directly to
consumers.

6. Advertising - the activity of attracting public attention to a product or business, as by paid

announcements in the print, broadcast, or electronic media.

7. Accounting - the system of recording and summarizing business and financial transactions
and analyzing, verifying, and reporting the results.

8. Balance sheet - one of the major financial statements used by accountants and business
owners, also referred to as the statement of financial position.

9. Bookkeeping - involves the process of recording, analysing and interpreting the financial
transactions of a business or individual, the discipline of bookkeeping accounts for a large
proportion of the accounting process.

10. Assets - the entries on a balance sheet showing all properties, both tangible and intangible,
and claims against others that may be applied to cover the liabilities of a person or business; can
include cash, stock, inventories, property rights, and goodwill.

11. Liabilities - is defined as the future sacrifices of economic benefits that the entity is
obliged to make to other entities as a result of past transactions or other past events, the
settlement of which may result in the transfer or use of assets, provision of services or other
yielding of economic benefits in the future.

12. Owners equity - the owner's investment in the business minus the owner's draws or
withdrawals from the business plus the net income (or minus the net loss) since the business
began.
13. Financial Statement - are a collection of reports about an organization's financial results,
financial condition, and cash flows.

14. Money - is any item or verifiable record that is generally accepted as payment for goods
and services and repayment of debts in a particular country or socio-economic context, or is
easily converted to such a form.

15. Banking - is a financial institution that accepts deposits from the public and creates credit.

16. Bond - is an instrument of indebtedness of the bond issuer to the holders; is a debt security,
under which the issuer owes the holders a debt and, depending on the terms of the bond, is
obliged to pay them interest (the coupon) and/or to repay the principal at a later date, termed the
maturity date.

17. Securities - is a tradable financial asset; the term commonly refers to any form of financial
instrument, but its legal definition varies by jurisdiction.

18. Share - is a unit of account for various investments; it often means the stock of a
corporation, but is also used for collective investments such as mutual funds, limited
partnerships, and real estate investment trusts.

19. Shareholder - is an individual or institution (including a corporation) that legally owns a

share of stock in a public or private corporation.

20. Insurance - is a means of protection from financial loss; it is a form of risk management
primarily used to hedge against the risk of a contingent, uncertain loss.

21. Risk - can be manifested in lower incomes or higher expenditures than expected; the causes
can be many, for instance, the hike in the price for raw materials, the lapsing of deadlines for
construction of a new operating facility, disruptions in a production process, emergence of a
serious competitor on the market, the loss of key personnel, the change of a political regime, or
natural disasters.