THE KISS PRINCIPLE IN MICROBUSINESS

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GLOSSARY


ACCOUNTING
The science of keeping track of business transactions, of analyzing them and of reporting their results in a systematic manner, through the use of books and journals of accounts.
ASSETS
The wholly owned property of a person or business.
BALANCE SHEET
A document summarizing the state of a business at a given date and doing this with a presentation of assets, liabilities and owner's equity.
BANKRUPTCY
A situation arising from an individual or business ceding its assets to pay for its liabilities or when assets are frozen following a court order, in order to pay for debts.
BUDGET
Document drawn up in order to forecast the future operations of a business and to plan and control these operations.
BUILDING IMPROVEMENTS
Repairs, changes or improvements made to a building owned by an individual or a business. These usually result in increasing the value of a property.
BUSINESS PLAN
A list of future activities presented in an orderly fashion in order to reach the goals of a business.
CAPITAL
The amount supplied by each shareholders in a business. It also refers to the net worth of shareholders or owners of a business.
CIRCULATION
The number of potential clients likely to buy from a business.
CORPORATION or COMPANY
A legal entity separate from its owners or shareholders.
DEPRECIATION
An amount taken from business operations and representing a systematic reduction of the value of an asset. This amount is taken regularly from the residual value of the said asset over the expected life of the asset.
DIVIDENDS
A portion of profits divided equally among the shares and paid out to shareholders according to the number of shares belonging to each.
FINANCIAL STATEMENTS
All the accounting statements summarizing the situation or evolution of the financial status of a business, presented in an accepted form on a regular basis.
FORECAST(ing)
A recognition of present trends and an appreciation or estimation of their future impact and consequences.
FRANCHISE
A contractual right granted by a franchiser (the one with the idea or product) to a franchisee (the one who will exploit this right) . This right usually is limited to a specific territory and explicitly determines the methods of operation.
GOODWILL
The amount exceeding the value of tangible assets, when buying an established business concern. This is an intangible asset, as its value is determined by the amount a buyer is willing to pay, in excess of the true value of tangible assets.
GROSS RENT PER SQUARE FOOT
Rental cost of premises expressed annually in dollars per sq. ft., not including the costs incurred by common areas, such as maintenance, security, lobby and corridors, toilets and cleaning costs and supplies, or heating and power.
IMPROVEMENTS (LEASEHOLD)
Repairs, changes or improvements made to rented premises by the person or business renting this space.
INCOME
The annual amount a business derives from sales of goods or services. It also means a person's annual remuneration.
INCOME TAX
A tax imposed directly on individuals and businesses, accordČing to the size of income.
INVENTORY
The sum of the merchandises, raw materials or semi-finished goods in the possession of a business. These sums are usually expressed in quantity and in dollar value.
LEASE
A contractual agreement between individuals or businesses where one party, the lessor, agrees to rent a given asset to a lessee, for a given period of time, at a given price. The lessor provides the asset and the lessee pays to use it.
LIABILITIES
The sum of a business' debts (by extension for an individ-ual's).
LIQUIDATION
The operations that are necessary to terminate the existence of a business, sell its assets, pay off its debts and, if any, distribute the excess money to the owners.
LOSS
The excess of operating costs over operating income, over a specific period of time (usually one year) . (Note: le texte etait incomplet, MP)
MARKETING
The art of offering people what they want while making a profit.
NET RENT PER SQUARE FOOT
Rental cost of premises expressed in annual dollars per sq. ft., including all costs incurred by common areas.
PARTNER
One who joins forces, talents and assets, with one or more individuals to operate a business.
PARTNERSHIP AGREEMENT
The contractual arrangement spelling out that two or more individuals (partners) will combine talents and assets to run a business.
PARTNERSHIP INSURANCE
Life insurance purchased by partners on one another's life to compensate surviving partners and allow them to buy back from the estate of a deceased partner his share in the business.
PROCESS
A method of doing a task, of making a product or of performing a service.
PROFIT
The excess of operating income over operating costs, over a given period of time.
RECEIVABLES
Amounts due to a seller, resulting from sales on credit. It is considered an asset in business and can serve as a means to borrow money. Future collections serve as the loan guarantee.
REGISTERED SOLE OWNERSHIP
A business enterprise belonging to one owner and registered as such according to the law of the area where the business operates.
RENT
An amount paid to the owner of an asset by the user of this asset. A rental agreement will usually set the amount to pay, when to pay and for how long, for the use of what asset owned by whom, and to be used by who else.
RESIDUAL INSURANCE
What is left of insurance coverage, from a life insurance policy, once the person subscribing to the policy has borrowed money, against the accumulated cash value of the policy.
SHAREHOLDER
The owner of one or more shares of a company or corporation.
SHAREHOLDER'S EQUITY
The excess of assets over liabilities is called shareholder's or owner's equity in business. This information is found in the balance sheet.
WORKING CAPITAL
The excess of short term assets over short term liabilities. It expresses the ability of a business to pay its debts and to have some short term assets (liquidities) left over for operations.