Archive for the ‘Word of the Day’ Category

Long-Term Liability

A liability that is payable more than 12 months into the future. Opposite of current liability.

Usage: A 15-year traditional mortgage is both a current liability and a long-term liability.

Annual Review

A review of a firm’s financial statements by an outside company that is not as thorough as an audit.

Usage: Many small companies get an annual review because it is cheaper than an audit.

Affordability

Aug 16, 2016

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In: Meme, Word of the Day

Affordability

Estimate as to how much a person can afford in order to purchase a home.

Usage: The broker gave us an affordability estimate with a price range and approximate mortgage payments.

Fixed Asset

An asset that cannot be easily converted into cash within a short period of time, such as office equipment, buildings, and vehicles. Sometimes referred to as Property, Plant, and Equipment (PP&E).

Usage: The department store listing of fixed assets included shelving, counters, and clothing racks.

Organic Growth

Growth that comes from within the organization through increased sales, new products, or product extensions.

Usage: Organic growth is a strategy that implies that there will be no mergers or acquisitions.

Thought Leader

A well-regarded professional who is able to express new ideas and new thinking on a particular subject. An innovator who influences others.

Usage: Many believe that Jack Welch was an outstanding CEO and a thought leader in the field of management.

Competitive Intelligence

Ongoing market research activity that assembles secondary research and information, as it becomes available, to monitor changes in the marketplace.

Usage: According to our competitive intelligence, our key competitor just hired two more salespeople.

Pass the Buck

Pass-the-Buck

To claim that someone else is responsible in order to avoid responsibility.

Usage: Everyone was passing the buck when the contract was canceled.

Freemium

A business strategy that depends on giving away basic services for free and charging for premium services.

Usage: The web entrepreneurs wanted to use the freemium business model.

Market Value

The amount of money for which an asset could be sold in the open market.

Usage: The market value of an asset is rarely the same as book value.

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