Business Dictionary:


5 min read

Business Dictionary:
  • Acquisition:

    Definition: The purchase of one company by another, often resulting in the acquiring company gaining control.

  • B2B (Business-to-Business):

    Definition: Commerce transactions between businesses, involving the exchange of products, services, or information.

  • B2C (Business-to-Consumer):

    Definition: Commerce transactions between a business and individual consumers.

  • Benchmarking:

    Definition: The process of comparing a company's performance and practices against industry standards or competitors.

  • Business Angel:

    They are known in business to those people who individually decide to invest their money in companies that they consider that have economic potential. They are often the first investment a startup receives, obviously after the founder's investment. The amount they contribute is not too high, but just the amount needed to help you grow as a business and then expand into other markets. They can invest in companies at any level of development. The amount of their contribution will depend on the potential and needs of the startup. The relationship that finally remains between the parties will be the one they decide in the agreement.

  • Cash Flow:

    Definition: The movement of money into and out of a business, reflecting its liquidity and ability to meet financial obligations.

  • Diversification:

    Definition: The strategy of expanding a company's business activities into new products, services, or markets to reduce risk.

  • E-commerce:

    Definition: The buying and selling of goods and services over the internet.

  • Investment Phases:

    “Series” is understood as the different stages that a company goes through at the time of obtaining investment in it. In the 1st Investment Phase (also known as series D), the company secured its fifth round of investments. This is followed by three more series of performances:

    • Series A: It is the first round of financing for a Startup from a Venture Capital firm. A case of this would be the first investment in exchange for a part of the company. These are usually single-digit million-dollar investments.

    • Series B: At this point, the Startup product is already on the market. Now the company is looking to scale its business and needs the investment to face its competitors and increase its market share and net profit. The investor's risk is lower and, in turn, the invested capital is higher.

    • Series C: When the Startup's public is already consolidated and has proven its worth, it is time for the company to seek, through Venture Capital, an investment to increase its market share and better develop its products and services. A Series C round may involve preparing for a Short to Medium Term Company Selling.

  • KPI (Key Performance Indicator):

    Definition: Quantifiable metrics used to evaluate the success of an organization or a specific activity.

  • Leverage:

    Definition: The use of various financial instruments or borrowed capital to increase the potential return of an investment.

  • Market Share:

    Definition: The percentage of the total market that a company or product controls.

  • Merger:

    Definition: The combining of two or more companies to form a new entity.

  • Outsourcing:

    Definition: The practice of contracting out certain business functions or processes to external service providers.

  • Profit Margin:

    Definition: The percentage of revenue that represents a company's profit after expenses are deducted.

  • Revenue:

    Definition: The total income generated by a company from its primary operations, usually the sale of goods and services.

  • ROI (Return on Investment):

    Definition: A financial metric that calculates the return generated on an investment relative to its cost.

  • Stakeholder:

    Definition: An individual or group with an interest or concern in the success and activities of a business.

  • Strategic Planning:

    Definition: The process of defining an organization's direction and making decisions on allocating its resources to pursue this direction.

  • Supply Chain:

    Definition: The entire process of producing and delivering a product, from raw materials to the final consumer.

  • SWOT Analysis:

    Definition: An evaluation tool used to assess a company's Strengths, Weaknesses, Opportunities, and Threats.

  • Return on Investment (ROI):

    Definition: A measure of the profitability of an investment, expressed as a percentage of the initial investment.

  • Net Income:

    Definition: The total amount of money a company has earned or lost after all expenses, taxes, and other financial factors have been accounted for.

  • Organizational Culture:

    Definition: The values, beliefs, and behaviors that shape how employees interact and work within an organization.

  • P&L Statement (Profit and Loss Statement):

    Definition: A financial statement that summarizes the revenues, costs, and expenses incurred during a specific period, indicating the company's profitability.

  • Quality Control:

    Definition: The processes and procedures implemented to ensure that a product or service meets specified requirements and standards.

  • Risk Management:

    Definition: The identification, assessment, and prioritization of risks followed by coordinated and economical application of resources to minimize, control, and monitor the impact of these risks.

  • Sustainability:

    Definition: The practice of conducting business in a way that is environmentally friendly, socially responsible, and economically viable for the long term.

  • Target Market:

    Definition: A specific group of consumers or businesses at which a company aims its products and marketing efforts.

  • Upselling:

    Definition: The strategy of encouraging customers to purchase a higher-end or more expensive product or service than what they initially intended.

  • Value Proposition:

    Definition: A unique set of benefits that a product or service offers to customers, differentiating it from competitors.

  • Venture Capital:

    A company that has already demonstrated its potential and scalability becomes a valuable target for investors, as in the case of Venture Capital. In this particular case, they are companies that invest large amounts of money. They are generally not interested in early-stage startups. They choose companies that have already proven that they get benefits, and which have income due to it being easier for that project to expand rapidly. They usually require shares and contribute large amounts of more than a million euros.

  • Workforce Diversity:

    Definition: The range of differences among people in an organization, including but not limited to race, gender, age, ethnicity, and cultural background.

  • X-efficiency:

    Definition: The degree to which a firm minimizes its costs and operates efficiently.

  • Yield:

    Definition: The return on an investment, typically expressed as a percentage, considering dividends, interest, and capital gains.

  • Zero-Based Budgeting:

    Definition: A budgeting approach where each expense must be justified for each new period, starting from a "zero" base, rather than using the prior budget as a reference.

Fidestamp Editorial Team.

Image by Tung Nguyen - Pixabay

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