1. ENTREPRENEURSHIP VOCABULARY

2. AUTOMATION The use of machines, control systems, and information technology to optimize productivity

3. BALANCE SHEET Financial statement which tells entrepreneur what the business is worth at a given time Summary of financial balances includes assets, liabilities, and equity

4. BREAK EVEN POINT Sale equal to cost of producing the product

5. BUSINESS CONCEPT Statement of an idea

6. BUSINESS PLAN Document that describes the business concept, operations, forecasts, and justification for financial backing

7. CASH FLOW STATEMENT Statement which shows the rate at which money is received and spent

8. COMPETITION Product that is similar or the same that is sold by another company

9. CUSTOMER PROFILE A description of a customer or a set of customers that include demographic, psychographic and geographic characteristics as well as buying patterns, credit worthiness and purchase history

10. ENTREPRENEUR Someone willing to assume risks for starting a business

11. FINANCIAL PLAN Forecast for determining acquisition of funding, profits, and sales projection

12. FIXED COSTS Expenses that vary little if any

13. FEASIBILITY ANALYSIS Study to determine if idea is practical

14. GROSS PROFIT Income made before expenses are paid or all revenue collected

15. INCOME STATEMENT (POFIT AND LOSS STATEMENT) An accounting record of monies received

16. INVENTORY CONTROL Management of costs through strict accounting of raw materials and products sold

17. JUST IN TIME INVENTORY A cost effective method of managing out going product to manage cash flow

18. LIABILITY Accountability and responsibility for business risks

19. MARKET ANALYSIS Study of current trends in consumer behavior

20. MARKET SURVEY Research measuring feelings and preferences of customers in a given market. (usually a list of questions)

21. MARKET NICHE Target group of customers who are most likely to buy a product

22. MARK-UP Amount business adds to the cost of producing the producing the product. Cost + Markup=Price

23. NET PROFIT Amount of monies that remains after expenses are paid

24. OBJECTIVE A desired result, something that one’s efforts or actions are intended to attain

25. OHSA Occupational Safety and Hazards Administration-federal agency that monitors safe workplaces

26. POLICY Guiding principle, rules, or strategy

27. PORTFOLIO Collection of works, strategies, research, business proposal

28. PRODUCT STANDARDS Process that must be followed every time to control uniform/consistant outcome

29. PRODUCT MIX Product, place, promotion, price, etc.

30. PROTOTYPE Sample product/ working model

31. QUALITY CONTROL Process oversight that manages consistent superior products

32. RETAIL PRICES Amount the consumer pays

33. SALES PROJECTION ( FORECAST) Forecast of future sales

34. TARGET CUSTOMER Group of consumers expected to purchase product

35. VARIABLE COSTS Expenses that change. Example electricity cost

36. VENDOR Supplier of goods or service to a business

37. COLLATERAL An asset that can be sold by a creditor to settle financial obligation

38. CORPORATION Type of business ownership that grants individuals or group a charter of legal rights and protection

39. DEMOGRAPHICS Market characteristics such as gender, location, income, ethnicity, etc.

40. FRANCHISE A licensed right to use name, recipes, trademarks, and other property of another company

41. MARKETING The conception, pricing, promotion and distribution of products and services to satisfy customer wants and needs