qprev_HBB Manual 2.qxd - Small Business BC

Appendix AList of Business TermsAccounts payable: Money owed by a person orbusiness accounts to be paidAccounts receivable: Money owed to a person orbusiness by customersAgent: A person authorized to act for anotherperson, referred to as the principal, in dealingwith a third personAssets: Everything that money value can beassigned to, such as equipment, land, cash, andmoney to a person or business (accountsreceivable)Balance sheet: The liabilities of a businesssubtracted from the assets; what is owned minuswhat is owed to a business. Sometimes thebalance sheet is called a “statement of net worth”because the figure that results from assets minusliabilities is net worthBusiness plan: A written summary of a businessand its plans for reaching its goalsCapital: Money or property owned or used inbusinessCollateral: Things with value used to secure orguarantee a loan; most lending institutions willnot loan money that is not secured by collateralCompany-owned: An outlet owned and operatedby a parent company unit:Confidentiality: Keeping an idea or invention toones self so it doesn’t get copiedCopyright: Protection from being copied orstolen; given by law to creative works such aswriting, songs, computer software, video andother images; one of four forms of protection forideas available in CanadaDealer: A person or firm that markets a productin a particular areaDistributor: Middle person, wholesaler; agent orbusiness firm that distributes goods to dealers orto other companiesEntrepreneur: A person who organizes, operates,assumes the risk for and gets the benefits of abusiness ventureFinances: MoneyFranchise: A kind of business involving threeessentials: a franchise fee, a common trade name,and a continuous relationship with a parentcompanyGrant: Money that does not usually have to bepaid back, provided that the rules under whichthe grant was given are followedGross profit: Profit before income tax has beenpaidIncome: Money or revenue coming into abusinessIndustrial design: Protection for an invention’sshape and appearance against anyone making onelike it; one of four protections for ideas inCanadian lawInvention: A new product, process, or way ofdoing something. To be patentable, an inventionhas to be new, useful, not obvious beforehandand a technological improvement over whatexisted beforeInvest: Put money into business to get a profitLeads: Names and contact information forpotential customersManufacturer: A person or business who makesor manufactures a productMarket: A group of buyers; trade, buying andselling110solutions for small business home-based business