Business Words Every Student Should Know

Business Words Every Student Should Know

| Article by Hemal Amarasekara
 

As a student, when you hear a business word, you should be able to know more about the concept than merely its definition and usage. I believe we all need to continue learning on understanding business terms that will benefit us today and tomorrow.

Business Term

Explanation

Accelerated Depreciation

Depreciation at a higher rate in the early years of an asset’s
life; an accounting method.

Accounts Receivable Turnover

A measurement of how quickly customer pays their bills. The ratio
of net credit sales to average accounts receivable.

Action Learning

A process in which a group of people comes together more or less
regularly to help each other to learn from their experience.

Activity Sequencing

Identifying how activities affect each other and determining the
best order to perform them in order to complete the project

Adhocracy

 

A form of organization, usually with little or no structure that
allows for greater creativity and innovation around capturing opportunities,
solving problems, and getting results.

Advertising based Model

A business model in which a firm generates revenue by charging
advertisers for space (Ex in a magazine or on a website) or in radio or TV

Affinity

An organization is made up of businesses with common interests, such
as an industry trade association or another group of entrepreneurs.

Alliance

Any formal, inter-organizational, collaborative relationship with
competitors or suppliers of complementary products and services, aimed at
avoiding capital investment and gaining market entry or core competencies.

Angel Capital

Start-up money provided to entrepreneurs by friends, family, or
wealthy individuals (Often referred to as the 3Fs Friends, Family, Fools)
whose motives may be non-monetary as well as financial.

Appendix

An addiction to the end of a document. In a business or
feasibility plan, it may include copies of product/service information, legal
agreements, resumes of principal owners, and so on.

Arbitrage

The opportunity to profit from a simultaneous purchase and sale
of an asset; a rare and short-lived situation because market forces will
close the gap between the purchase and sale price, thus ending the
opportunity.

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