Archive for the ‘Word of the Day’ Category

IASB

International Accounting Standards Board. An independent board of experts that develops International Financial Reporting Standards, which are used internationally.

Usage: The global economy has increased the importance of the IASB.

Market Share

The percent of the potential customers that are actually purchasing a specific product or service.

Usage: The product manager’s new marketing plan was designed to increase market share.

Slack

An increase or decrease in an estimate to make it easier to achieve.

Usage: Managers include slack in their budget numbers in case something unexpected happens.

Metrics

Sep 13, 2016

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In: Meme, Word of the Day

Metrics

Measurements and measurement systems used to evaluate individual or company performance.

Usage: The goal was to exceed all metrics and prove that the company was the best.

Non-Compete

A prohibition against an individual competing with another company, usually a former employer.

Usage: The company required the new sales manager to sign a non-compete clause.

EBITDA

Earnings Before Interest, Taxes, Depreciation, and Amortization. Pronounced as ee-bit-da. A line on the income statement.

Usage: EBITDA is an indicator of profitability and cash flow.

Business Case

An organized report with financial analysis and supporting documentation to support a business proposition. Sometimes refers only to the financial justification for a business opportunity. Sometimes used interchangeably with “business plan.”

Usage: The business case demonstrates that our idea will be profitable within three years.

Primary Research

Research and data collected for a specific purpose.

Usage: Focus groups and telephone surveys are a type of primary market research.

OPM

Other People’s Money. Bank or personal loans, venture capital, investment, or grants that might be made available to a business.

Usage: The business owner was looking for OPM instead of putting his own money at risk.

Beta Test

The trial run. A term used by techie types to describe the test that makes sure that your equipment, software, and systems actually work as expected.

Usage: The installer ran a beta test before teaching the customer how to use their new home theater.

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