Category:
Law and Taxation
For someone who wants to initiate a business or who is already a business owner, it is essential that they are aware of the particular terms in business law as often these terms can be quite confusing. It is vital that you familiarize yourself with the more common business law terms as it leaves your clients with a very good impression that you know what you are talking about.
Appreciation - When an asset increases in value it is said to have appreciated.
Bankruptcy - Bankruptcy is declared when a business/individual cannot meet its/his/her business obligations and formally requests the court system to intervene and aid in canceling out their debts or repaying them over a period of time.
Balance of payments - Balance of payments is a record of the income and expenditure transactions of business organizations during a stipulated period of time.
Compensation - Where as compensation is commonly referred to as a monetary reward for services preformed by an employee, it can also be non-monetary in nature and is usually based on job performance and overall work contribution of an employee.
Cash flow - Cash flow is the record of a business's money income and payments over a given period of time.
Depreciation - Depreciation means spreading the cost of an asset that has been purchased over the lifetime of the usefulness of the asset.
Deflation - A reduction in a country's national income and output is known as deflation.
Division of labor - Division of labor is the allocation of a particular task to a particular person/group. Here the task is 'divided' or broken down into smaller pieces.
Employer ID Number (EIN) - An EIN is an id number given by the IRS to businesses for taxpaying purposes. It is required for partnerships, corporations, trusts, and for sole proprietorships that have employees.
Entrepreneur - Is a person who single-handedly takes on the entire financial risk of starting, operating and managing a business.
Joint Venture - A joint venture is an agreement between two or more partners/persons to manage a business/project with a predetermined share of the profits and losses.
Liability - Liability is a state of being financially obligated.
Proprietorship - It is the most common business structure wherein the owner of a business has unlimited liability.
Prospect - A prospect is a prospective customer/client who is the intended target of a marketing campaign as he/she has the capacity /ability to buy the product/service on offer.
Return on Investment (RoI) - Return on Investment is the amount of profit that is based on the total amount of resources that is used to produce it.
Stock Options - Stock options are usually given to regular clients of a business, and are the right to buy a given amount of stock at a given price for a certain period of time.
Tax Deduction - A tax deduction is a reduction in the gross amount on which tax is calculated of an individual or business.
Venture Capital - Is the money used to support new commercial undertakings.
Working Capital - Is the money/assets that a business/individual has on hand to further the production process.
Particular terms in business law
For someone who wants to initiate a business or who is already a business owner, it is essential that they are aware of the particular terms in business law as often these terms can be quite confusing. It is vital that you familiarize yourself with the more common business law terms as it leaves your clients with a very good impression that you know what you are talking about.
Some particular terms in business law include:
Assets - Assets are anything of value that a person or a business owns, such as cash, stocks, bonds, property etc.Appreciation - When an asset increases in value it is said to have appreciated.
Bankruptcy - Bankruptcy is declared when a business/individual cannot meet its/his/her business obligations and formally requests the court system to intervene and aid in canceling out their debts or repaying them over a period of time.
Balance of payments - Balance of payments is a record of the income and expenditure transactions of business organizations during a stipulated period of time.
Compensation - Where as compensation is commonly referred to as a monetary reward for services preformed by an employee, it can also be non-monetary in nature and is usually based on job performance and overall work contribution of an employee.
Cash flow - Cash flow is the record of a business's money income and payments over a given period of time.
Depreciation - Depreciation means spreading the cost of an asset that has been purchased over the lifetime of the usefulness of the asset.
Deflation - A reduction in a country's national income and output is known as deflation.
Division of labor - Division of labor is the allocation of a particular task to a particular person/group. Here the task is 'divided' or broken down into smaller pieces.
Employer ID Number (EIN) - An EIN is an id number given by the IRS to businesses for taxpaying purposes. It is required for partnerships, corporations, trusts, and for sole proprietorships that have employees.
Entrepreneur - Is a person who single-handedly takes on the entire financial risk of starting, operating and managing a business.
Joint Venture - A joint venture is an agreement between two or more partners/persons to manage a business/project with a predetermined share of the profits and losses.
Liability - Liability is a state of being financially obligated.
Proprietorship - It is the most common business structure wherein the owner of a business has unlimited liability.
Prospect - A prospect is a prospective customer/client who is the intended target of a marketing campaign as he/she has the capacity /ability to buy the product/service on offer.
Return on Investment (RoI) - Return on Investment is the amount of profit that is based on the total amount of resources that is used to produce it.
Stock Options - Stock options are usually given to regular clients of a business, and are the right to buy a given amount of stock at a given price for a certain period of time.
Tax Deduction - A tax deduction is a reduction in the gross amount on which tax is calculated of an individual or business.
Venture Capital - Is the money used to support new commercial undertakings.
Working Capital - Is the money/assets that a business/individual has on hand to further the production process.
