Familiarize yourself with Veteran-level financial literacy terminology! Can you complete the entire set?
1
Break-even point is the point where total revenue equals total expenses, meaning the business is neither making a profit nor a loss
2
Bootstrapping refers to funding a business using personal savings, revenue, or minimal external capital
3
Venture capital refers to investment funds provided by firms or individuals to high-growth startups in exchange fore equity
4
Retention rate is the percentage of customers who continue to buy from a business over time
5
Revenue is a measure of profitability, calculated as (net profit/revenue) x 100
6
Operating expenses are the costs necessary for running a business, such as rent, utilities, and payroll
7
Affiliate marketing refers to the use of online chanels such as social media and emails to promote a business
8
Market research is a specific group of consumers most likely to buy a company's product or service
9
A freemium model offers a basic version of a product for free while charging for premium features
10
Target audience is the process of gathering and analyzing data about competitors and industry trends
11
A value proposition is the unique benfit a product or service offers to customers, differentiating it from competitors
12
Leverage is borrowing more money to invest more money, hoping for higher returns
13
A business credit score is a measure of a company's creditworthiness based on payment history, debt usage, and financial stability
14
A LLC is a business structure that protects owners from personal liability while providing flexibility
15
A patent is a legal right granting the inventor exclusive ownership of a product or innovation
16
A corporation is a business owned and operated by one person, with no legal distinction between the owner and the business
17
Digital marketing is a system where businesses reward partners for referring customers
18
A business license is a legal permit allowing a company to operate in a specific location
19
Contract law is the legal framework governing agreements between businesses, clients, or vendors
20
Debt financing is raising capital by selling shares of the business
21
Crowdfunding is raising small amounts of money from many people, often through online platforms like Kickstarter or GoFundMe
22
Cash flow refers to the movement of money in and out of a business
23
Profit margin is the total income a business earns before expenses
24
Valuation is the process of determining how much a company or asset is worth
25
Branding is a symbol, logo, or name legally registered to protect a brand's identity
26
An exit strategy is a plan for how business owners will sell their stake or transition out of the company
27
A sole proprietorship is a legal business entity separate from its owners, offering lliability protection and tax benefits
28
Scalability is a fundamental shift in a business strategy to better align with market needs
29
A trandmark is the process of creating a unique identity for a business through name, logo, messaging, and customer experience
30
A negotiation is a strategic discussion between two parties to reach a mutually beneficial agreement
31
A pivot is the ability of a business to grow and handle increased demand without a proportional increase in costs
32
Equity financing is borrowing money, usually in the form of business loans, that must be repaid with interest
33
A competitive advantage is a feature or capability that allows a business to outperform competitors
34
Accounts receivable is money a business owes to suppliers and vendors
35
Accounts payable is the money owed to a business by customers for goods or services provided
36
A sales funnel is the process of guiding potential customers from awareness to purchase
37
A business plan is a framework that describes how a company creates, delivers, and captures value
38
Conversion rate refers to the percentage of website visitors or leads who complete a desired action, such as making a purchase
39
A business model is a written document outlining a company's goals, strategies, target market, financial projections, and operational plan
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