Business Glossary

This is a compilation of terms used in business, some are in English but with its meaning in Spanish.

Actions
Either equal portions in which divides the capital of a corporation whose ownership is manifested through a certificate.
Shareholder
Holder of one or more shares, giving it the status of member of a company acquired certain rights.
Active
Resources are there in the company, such as property, investments, accounts receivable, bank monetary resources.
Assets
Refers to active estimated become liquid over a period of time estimated. (Such as stocks and receivables).
Fixed Assets
Are assets remaining in the company. (Such as equipment, office).
Leverage
Degree of indebtedness. In English Leverage. When the profits of an investment are higher than the cost of borrowing to do it.
Balance Sheet
The balance is to be made to reflect the economic situation-fianciera of one point in the company.
Benchmarking
It refers to the act of comparing our company with the competition in terms of quality, process, activity, etc..
Branding
Marketing strategies and tools that are used to give CRAR a brand or support an existing one.
Business Intelligence
They are the tools or strategies that are implemented to streamline the decision making process.
Canon Entry
Amount paid by the franchisee to acquire a franchise from which acquires rights and cover certain costs.
Canon of Advertising
Amount paid by the franchisee to participate in the costs incurred for the advertising strategy that takes the franchise chain.
Co-Branding
When two brands together because they complement and together generate added value.
Capital
Material resources that can generate a profit or income.
Cash
In Spanish cash, often used to refer to the payment is to be made in cash.
Cash Flow
Cash flows and resources produced.
Lifecycle of a product
Refers to sales of a product at different stages, which are identified as: introduction, growth, maturity and decline.
Export Consortium
Entity created through a cooperative agreement with the object of promoting the export of the products or services of the participating companies.
Management Control
Activity management support that is to gather, process and present information relevant to decision-making. Management control is traditionally based on equity-type instruments business, but increasingly seen such nonfinancial information.
Business cooperation
When two or more independent companies share skills, knowledge and resources to improve their market position and strengthen its competitive advantages, that do not go to merge.
Cost of debt
Is the cost of a company that goes to borrowings to finance.
Opportunity Cost
Benefit that is left to get to place monetary resources in alternative investments.
Direct Costs
Those related or charged, regardless of voumen activity, a product or department (eg, raw materials).
Fixed Costs
Those who are not affected by changes in the volume of production and remain substantially fixed for a period of time (for example, the rental of the facility is independent of the number of units to be manufactured).
Indirect Costs
Factors of production or resources, to affect a process as a whole can not be imputed to the products (for example, the amount of expenses incurred in the administration department of a company that manufactures various products).
Semi-variable or semi-fixed costs
These are costs that vary with increases in production breaks.
Variable costs
This is part of the total cost is determined by the volume of production (eg, labor is not on staff, energy, etc.).
Demand Curve
Indicates the quantity of a product or service that people are willing to buy at a given price.
Supply curve
Shows the relationship between price and quantity supplied of that good.
Customer Relationship Management (CRM)
Information system that aims to optimally manage the customer relationship. Enables customers to contact the company through any channel. Usually consists of three major modules: Marketing, Sales, Customer Service.
Default
Action agreed payments fail.
Demand
In economic terms, this is defined as the amount of goods and services that consumers are willing to purchase under certain conditions of time and money.
Deviations
Difference between the actual value of a variable and its target value.
Management by objectives
Working system based on performance assessment based on the objectives and goals between workers and supervisors.
Diversification
Direction of development that can take an organization from your market and existing products. We distinguish between related and unrelated diversification.
Statement
Financial report showing revenues, expenses and results of a company or business, whether profit or loss during the reporting period.
Economies of scale
There is an economy of scale in an activity or factor of an undertaking as the volume of production increases, lower unit costs for products manufactured or produced.
Elasticity
Measure of the sensitivity of the quantity supplied or quantity demanded to changes in some of its determinants. It is expressed in percentage terms. The price elasticity of demand is the percentage change is given based on price changes.
Empowerment
Provide authority and control to employees to make decisions for themselves in the normal execution of their tasks.
Enterprise Resource Planning (ERP)
Information system for effective and comprehensive management of the most important parts of the business. Its sections are: Finance, Production, Logistics, Human Resources, and Sales and Marketing.
Financial balance
Coordination between the availability of investments and the demand for the means to finance it.
Scalability
Capacity of a software or hardware to grow, adapting to new requirements as business needs change.
Financial Statements
Information reflected in the financial result achieved in a given period and its financial and asset situation.
States of source and application of funds
Heritage report comparing two financial years, with the aim of identifying the sources of financial resources obtained in a cycle of exploitation and how they have been applied.
Business Strategy
It covers the analysis and selection of markets, defining business objectives and marketing instrument mix (product, price, distribution and promotion).
Corporate strategy
Action Plan which defines the scope of the company based on sectore and market in which it competes.
Capital Structure
Combination of the means used to finance investments. The capital structure is reflected in the liability, and should distinguish between fixed or permanent capital and circulating capital or short-term maturities.
Critical Success Factor
Are the objectives necessarily be achieved to meet the strategic lines of endeavor.
Finance needed
Are the funds necessary for a company to develop its business.
Float
Time elapsed from the beginning of commercial operation until settled (date when the value is credited to our account).
Cash Flow
Cash inflows and outflows that occur within an organization in a given period. Liquidity (in English: cash flow).
Cash flows
Represent actual revenues and expenditures of money that occur over time.
Franchisee
Person receiving the elements of a business model and ongoing support to start a business in itself. Normally the franchisee provides investment and work, through the management and operation of the business directly.
Franchisor or franchisor
Person or entity, owner of a brand, a product or service and know-how (skills). She puts everyone.
Franchise System
Method of collaboration between two companies, whereby one (franchisor) to another (franchisee), in exchange for financial compensation, the right to manufacture or use a trademark, service or product already accredited. There are three types: distribution and industrial services. These elements available to the franchisee to double the business model in exchange for an entry fee plus a royalty on its sales or profits, as stipulated in the contract.
Freelance
Independent worker.
Fusion
Action of merging two companies, establishing a new business model to coordinate efforts, eliminate duplicate activities in order to create synergy.
Operations Management
Business management area that coordinates all activities are carried out in the physical flow of products and materials from the supplier to the customer.
Hypothesis
In financial projections or within the Business Plan are called hypotheses or assumptions to those values ​​we attach to certain variables and that, although there is a degree of uncertainty about them, let us analyze future results. The upward or downward from the assumptions about the business plan allows what is called sensitivity analysis.
Individual Incentives
Incentives designed to encourage the effort above the minimum, through a system that links the delivery of "prizes" linked the subject's behavior.
Remunerative incentives
Stimuli of various kinds, such as might be the salary, payment in kind, benefits, etc., which act as a stimulus in hiring, and strengthen retention in an organization.
Management indicator
Value that allows to know the behavior of a company to a certain critical success factor to monitor your condition and its evolution.
Insourcing
Reverse the process of outsourcing.
Investor
He who gives money in exchange for a share of the company.
Joint Venture
Cooperation Agreement that involves creating a new company with its own legal, by investing in several companies.
Just in time
Management operations of Japanese origin, which is adopted by the philosophy of zero inventory (stock): the necessary material is delivered "just in time".
Know-how
Knowledge transmitting the franchisor to the franchisee and his team.
Leasing
Lease of movable or immovable, built-purchase.
Financial Leasing
The leasing company is committed to deliver the goods, but not maintenance or repair and the customer is obliged to pay the amount for the life of the contract, unable to terminate unilaterally. In the end, may or may not choose to purchase.
Operating Leasing
Leases of property, which may be revoked by the lessee at any time, with notice price. The lessor is the manufacturer or distributor of the well.
Journal
Reflects the daily operations.
License
It is a contract whereby a person systematically deploys its influence on outside activities, such as management and organization of the work of subordinates.
Product Line
Set of products that meet the same type of needs.
Logo
Emblem consist of letters or abbreviations, mark of a company, brand or product.
Brand
Name that certifies the authenticity of a product, and allows the company to distinguish itself from the competition.
Margin
Benefit between the cost price and the selling price.
Gross profit margin
Surge by subtracting from the sales revenue, costs of raw materials, personnel, service, repair and maintenance, financial, advertising and promotion, tax.
Marketing mix
Mix táctivas controllable variables the company, which are used to produce the desired result in the target market.
Merchandising
Actions and techniques to find the proper disposal of the product range, furniture, media, advertising and promotional within retail establishments. Also called marketing.
Promotional mix
Principal activity and communication of a company consists of the specific blend of advertising, sales promotion, public relations and personal selling that company uses to achieve its goals of advertising and marketing.
Mission
This marks a course, is not a goal or a purpose. Contributes to achieving the objectives of the company establishing its identity.
Motivation
General predisposition directs behavior toward achieving a goal. It is this need that drives the individual.
Samples
Promotional technique by which a product is delivered free to be tested by the consumer.
Objectives
Goals or achievements to be achieved in a company, and whose achievement measure used to assess the performance achieved.
Purpose
Activity for establishing a society.
Outsourcing, subcontracting or outsourcing
Hiring the services of an outside enterprise, running some processes that took place within the organization.
Business Plan
Document which identifies, describes and analyzes a business opportunity to assess their technical, economic and financial.
Equilibrium price
Price is equal to the quantity demanded and quantity supplied in the graph intersects the demand and supply curves.
Productivity
Increase or decrease depending on the final yields of productive factors.
Promotion
This activity is aimed to make known or to feel the need for a product.
Sales promotion
Business action, which aims to increase sales of a product or service in the short term, offering better conditions than the usual.
Financial Projection
Accounting document that reflects the economic plan of a company based on macroeconomic scenarios and the company's position in the market.
Advertisement:
Promotion pays ideas, products or services, which aims to ensure the public's attention is directed.
Breakeven
Refers to the point where the same amount of company that revenue costs, so the result is 0.
Ratio
Relationship between two elements or sets quantitative balance of a company, to prosecute their structure and evolution.
Public Relations
Communication activity and relationship with the different audiences of the company, through which it seeks to form a favorable image of the same.
Economic Profitability (Performance)
Relationship between profit (before interest and taxes) and total assets.
Financial Performance
Ratio of net income and shareholders' equity loa.
Renting:
Refers to an operating lease whereby renewed or replaced periodically rented well, with a new one.
Operating Income
Income arising from the activity of the business, which comes from subtracting the costs of all income earned.
Extraordinary Results
Refers to income or expenses arising from activities or events not covered by the activity of the company.
Credit Risk
Reflects the possibility that a debt is paid or interests.
Inventory Turnover
The number of times inventory is sold fully and adequately replaced, in a certain period.
Royalty
Amount to be paid by the franchisee to the franchisor periodically, calculated proportionately on their sales, support and control concept received.
Market Segmentation:
Action to classify the market into homogeneous groups to meet and establish a marketing strategy.
Start up:
It refers to the initial stage of an activity or business.
Stock
The amount of assets available to a company, this term is generally used to refer to the products stored.
Dashboard
Refers to indicators through regular monitoring and control, provides essential information on the company.
Discount rate
Is the rate of return that an investor asks for his role in a business.
Telemarketing
Marketing strategy, in which are offered and sold products or services by telephone.
Target
Target Audience. A term frequently used in marketing and advertising.
Competitive Advantage: Feature
activity of a product or company that is better than the competition, and that the customer perceives as important.
Venture Capital
Money invested by a group of investors on a project or high risk business, in exchange for a percentage of business ownership.
Vision
It refers to the identity of the company to achieve medium to long term, which is set from the start of it.