Startup Glossary

Startup Glossary

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A program that supports early-stage, growth-driven companies through education, mentorship, and financing.


The process of one company purchasing most or all of another company’s shares to gain control of that company.

Angel Investor

An individual who provides capital for a business startup, usually in exchange for convertible debt or ownership equity.

Annual Report

A comprehensive report on a company’s activities throughout the preceding year.


Anything of value that a company owns, such as cash, equipment, real estate, or intellectual property.


An official inspection of an individual’s or organization’s accounts, typically by an independent body.

Anti-Dilution Provision

A clause in an option, security, or merger agreement that gives the investor the right to maintain his or her percentage ownership of a company by buying a proportionate number of shares of any future issue of the security.

Accounts Payable (AP)

Money owed by a business to its suppliers shown as a liability on a company’s balance sheet.

Accounts Receivable (AR)

Money owed to a company by its debtors shown as an asset on the company’s balance sheet.


The process of gradually writing off the initial cost of an asset.

Asset Turnover Ratio

The amount of sales or revenues generated per dollar of assets.

Angel Round

A financing event in which an angel investor invests capital in a startup in exchange for equity in the company.

Agile Development

A method of software development that values responding to change over following a plan.

Ask Price

The minimum price that a seller is willing to accept for a share of stock or other security.

Advisory Board

A body that provides non-binding strategic advice to the management of a corporation, organization, or foundation.

Accrued Expenses

Costs which a company has incurred but has not yet paid.


When a company is acquired primarily for the skills and expertise of its staff, rather than for its products or services.


The process of dividing and distributing, can refer to company resources, stocks, revenues, and more.


The practice of taking advantage of a price difference between two or more markets.

Adjusted Earnings

Company’s earnings that are related to its core operations and excludes any one-off, irregular or non-recurring transactions.

Abandonment Option

The option to terminate an investment or project earlier than originally planned.

Absentee Business

A business that is owned by an individual who does not participate in the operation or management of the business.

Absorption Costing

A method in cost accounting where all manufacturing costs, both variable and fixed, are treated as product costs, regardless whether the units are sold or in inventory.

Acid Test Ratio (Quick Ratio)

A measure of a company’s ability to cover its current liabilities with its most liquid assets.


An attachment added to a document such as an insurance policy that alters its terms or details.

Adjustable Rate

An interest rate on a loan or security that fluctuates over time because it is based on an underlying benchmark interest rate or index.

Adverse Selection

A situation where sellers have information that buyers do not have, or vice versa, about some aspect of product quality.

Agency Cost

A type of internal company expense which comes from the actions of an agent acting on behalf of a principal.

Affiliate Marketing

A marketing strategy where an affiliate earns a commission for marketing another company’s products or services.


The merger of one or more companies into a new entity.


Money that is owed and should have been paid earlier.


A method of resolving disputes outside of court in which a neutral third party makes a decision.

Artificial Intelligence (AI)

Technology that enables a machine or system to mimic human intelligence.

Asset Management

The process of developing, operating, maintaining, and selling assets in a cost-effective manner.

Audit Trail

A record that shows who has accessed a computer system, when it was accessed, and what operations were performed.

Augmented Reality (AR)

An interactive experience of a real-world environment where the objects that reside in the real world are enhanced by computer-generated perceptual information.


The process of verifying the identity of a person or device.

Automated Clearing House (ACH)

An electronic network for financial transactions in the United States, that processes large volumes of credit and debit transactions in batches.

Autonomous Vehicles

Vehicles capable of sensing its environment and operating without human involvement.

Average Cost

The total cost of production divided by the number of goods produced.


A negotiated and typically legally binding arrangement between parties.

Attrition Rate (Churn Rate)

The rate at which employees leave a company or customers stop subscribing to a service over a given period.

Asymmetric Information

A situation in which one party in a transaction has more or superior information compared to another.


A system of buying and selling goods or services by offering them up for bid, and then selling to the highest bidder.


A group of people who participate in a show or encounter a work of art, literature, theatre, music, video games, or academics.

Availability Bias

The human tendency to think that examples of things that come readily to mind are more representative than is actually the case.

Average Revenue

The revenue recognized for every unit sold.

Auxiliary Revenue

Revenue derived from non-core business activities, such as the sale of scrap, rent from surplus space etc.

Alpha Test

The initial phase of testing in software development, where users try out the software in a controlled environment to spot any bugs or issues.


A set of rules to be followed in calculations or problem-solving operations, often used by a computer.


Any digital cryptocurrency similar to Bitcoin. The term is said to stand for “alternative to Bitcoin”.


The systematic computational analysis of data or statistics. It is used for the discovery, interpretation, and communication of meaningful patterns in data.

Annual General Meeting (AGM)

A mandatory yearly gathering of a company’s interested shareholders where they get a chance to ask questions and vote on important issues.

Application Programming Interface (API)

A set of rules and protocols for building and interacting with software applications.


The process of estimating the value of an asset or liability.


A person chosen to settle a dispute or make a decision in a matter, often used in contract disputes.

Asset Class

A group of securities or investments that have similar characteristics and behave similarly in the marketplace.

Asset Utilization Ratio

A metric used to understand the efficiency of a company’s utilization of its assets to generate revenue.

Asynchronous Communication

Communication that doesn’t require all parties to be available at the same time, such as email or message boards.

Audit Risk

The risk that an auditor issues an incorrect opinion on the financial statements.

Automatic Exercise

A procedure where the Option Clearing Corporation (OCC) will automatically exercise an “in the money” option for the holder.

Autonomous Corporation

A company that operates with minimal human intervention and uses artificial intelligence (AI) and other advanced technology to perform tasks.


In business, it refers to the ability of a customer to purchase a desired quantity of goods or services when and where they are needed.

Average Daily Rate (ADR)

A metric widely used in the hospitality industry to indicate the average realized room rental per day.

Average Fixed Cost

A per unit cost that represents the fixed costs of production distributed over the total quantity of output produced.

Aversion to Risk

The behavior of humans, especially consumers and investors, who, when exposed to uncertainty, attempt to lower that uncertainty.

Auxiliary Department

A department that provides support to the main, income-producing departments of a business.

Axial Age

A historical concept expressing the radical shift of thought in a period from the 8th to the 3rd century BC, seen in multiple civilizations.

Balance Sheet

A financial statement that reports a company’s assets, liabilities, and shareholders’ equity at a specific point in time.


A legal proceeding involving a person or business that is unable to repay outstanding debts.


A standard or point of reference against which things may be compared or assessed.

Beta Testing

The second phase of software testing in which a sampling of the intended audience tests the product.

Big Data

Extremely large data sets that may be analyzed computationally to reveal patterns, trends, and associations, especially relating to human behavior and interactions.

Blue Ocean Strategy

A marketing theory in which a company creates a new, uncontested market space, as opposed to competing in an existing industry.


To start a company with personal finances or operating revenues, which are initially low.


A type of product manufactured by a particular company under a particular name, or the unique image and name associated with a company.

Breakeven Point

The point at which total cost and total revenue are equal, i.e., the business has neither made a profit nor incurred a loss.

Bridge Loan

A short-term loan that provides immediate cash flow until the business can secure more permanent financing.

Business Model

A company’s plan for how it will generate revenues and make a profit.

Business Plan

A formal written document containing the goals of a business, the methods for attaining those goals, and the time-frame for the achievement of the goals.


The purchase of a controlling percentage of a company’s stock.


The rules and regulations enacted by an association or a corporation to provide a framework for its operation and management.

Burn Rate

The rate at which a new company spends its initial capital.

Business-to-Business (B2B)

A type of commerce transaction that exists between businesses, such as those involving a manufacturer and wholesaler, or a wholesaler and a retailer.

Business-to-Consumer (B2C)

Business or transactions conducted directly between a company and consumers who are the end-users of its products or services.

Business Intelligence (BI)

Technologies, applications and practices for the collection, integration, analysis, and presentation of business information to support better business decision making.

Business Process Outsourcing (BPO)

A method of subcontracting various business-related operations to third-party vendors.

Business Development

Tasks and processes concerning analytical preparation of potential growth opportunities, and the support and monitoring of the implementation of growth opportunities.

Bull Market

A market in which share prices are rising, encouraging buying.

Bear Market

A market in which prices are falling, encouraging selling.


An estimate of income and expenditure for a set period of time.


In the context of software design, the back end is the server-side, which includes the server, the database, and the server-side applications.

Bounty Program

In the tech world, a bounty program is a deal offered by websites, organizations, and software developers where individuals can receive recognition and compensation for reporting bugs.

Business Cycle

The fluctuation in economic activity that an economy experiences over a period of time, characterized by periods of economic expansion and contraction.


The price a potential buyer is willing to pay for a product or service.


A system in which a record of transactions made in bitcoin or another cryptocurrency are maintained across several computers that are linked in a peer-to-peer network.

Brand Equity

The commercial value that derives from consumer perception of the brand name of a particular product or service, rather than from the product or service itself.

Break-Even Analysis

A calculation of the approximate sales volume required to just cover costs, below which production would be unprofitable and above which it would be profitable.

Business Angel

An affluent individual who provides capital for a business start-up, usually in exchange for convertible debt or ownership equity.

Buyer's Market

A market which has more sellers than buyers. Low prices result from this excess of supply over demand.

Business Continuity Planning (BCP)

The process involved in creating a system of prevention and recovery from potential threats to a company.

Business Ethics

The study of appropriate business policies and practices regarding potentially controversial issues, such as corporate governance, insider trading, bribery, discrimination, corporate social responsibility, and fiduciary responsibilities.

Business Operations

Activities that businesses engage in on a daily basis to increase the value of the enterprise and earn a profit.

Buzz Marketing

A viral marketing technique that is focused on maximizing the word-of-mouth potential of a particular campaign or product.


A fixed income instrument that represents a loan made by an investor to a borrower (typically corporate or governmental).

Bottom Line

The final total of an account or balance sheet. In the context of business, the bottom line is the net income that is calculated after subtracting the expenses from revenue.

Brick and Mortar

A traditional “street-side” business that deals with its customers face-to-face in an office or store that the business owns or rents.


Wealth in the form of money or other assets owned by a person or organization or available for a purpose such as starting a company or investing.

Capital Expenditure (CapEx)

Funds used by a company to acquire or upgrade physical assets such as property, industrial buildings, or equipment.

Cash Flow

The total amount of money being transferred into and out of a business, especially as affecting liquidity.

Chief Executive Officer (CEO)

The highest-ranking executive in a company, whose primary responsibilities include making major corporate decisions, managing the overall operations and resources of a company.

Chief Financial Officer (CFO)

A senior executive with responsibility for the financial affairs of a corporation or other institution.

Chief Operating Officer (COO)

An executive who is responsible for the daily operation of the company, and routinely reports to the highest-ranking executive, usually the chief executive officer (CEO).

Chief Technology Officer (CTO)

An executive who is responsible for managing the technical aspects of a company’s strategy, to ensure that it aligns with its business goals.


The practice of funding a project or venture by raising small amounts of money from a large number of people, typically via the Internet.

Management (CRM)

Customer Relationship Strategies and technologies that companies use to manage and analyze customer interactions and data throughout the customer lifecycle, with the goal of improving business relationships with customers.

Customer Acquisition Cost (CAC)

The cost associated with convincing a customer to buy a product/service.

Corporate Social Responsibility (CSR)

A self-regulating business model that helps a company be socially accountable — to itself, its stakeholders, and the public.

Cash Burn Rate

The rate at which a company is losing money.

Convertible Note

A type of short-term debt that converts into equity, typically in conjunction with a future financing round.

Cost of Goods Sold (COGS)

The direct costs attributable to the production of the goods sold by a company.


An agreement in which a borrower receives something of value now and agrees to repay the lender at a later date with consideration.

Churn Rate

The annual percentage rate at which customers stop subscribing to a service.

Conversion Rate

The percentage of users who take a desired action.

Closed-End Fund

A portfolio of pooled assets that raises a fixed amount of capital through an initial public offering (IPO) and then lists shares for trade on a stock exchange.


An asset or property that a borrower offers as a way for a lender to secure the loan.


A basic good used in commerce that is interchangeable with other goods of the same type.

Content Marketing

A strategic marketing approach focused on creating and distributing valuable, relevant, and consistent content to attract and retain a clearly defined audience — and, ultimately, to drive profitable customer action.

Credit Rating

An evaluation of the credit risk of a prospective debtor, predicting their ability to pay back the debt and an implicit forecast of the likelihood of the debtor defaulting.


A digital or virtual currency that uses cryptography for security and operates independently of a central bank.

Customer Lifetime Value (CLV)

A prediction of the net profit attributed to the entire future relationship with a customer.

Customer Retention

The ability of a company or product to retain its customers over some specified period.

Competitive Analysis

Identifying your competitors and evaluating their strategies to determine their strengths and weaknesses relative to those of your own product or service.

Cost Leadership

A strategy that aims to provide a product or service at as low a price as possible to a broad audience.

Cost-Benefit Analysis

A systematic approach to estimating the strengths and weaknesses of alternatives used to determine options which provide the best approach to achieving benefits while preserving savings.


The action or practice of selling an additional product or service to an existing customer.


The practice of engaging a ‘crowd’ or group for a common goal — often innovation, problem-solving, or efficiency.

Corporate Culture

The beliefs and behaviors that determine how a company’s employees and management interact and handle outside business transactions.

Corporate Identity

The manner in which a corporation, firm or business presents themselves to the public, such as customers and investors as well as employees.

Credit Risk

The risk of default on a debt that may arise from a borrower failing to make required payments.

Critical Success Factor (CSF)

An element that is necessary for an organization or project to achieve its mission.

Customer Experience (CX)

The product of an interaction between an organization and a customer over the duration of their relationship.

Capital Asset Pricing Model (CAPM)

A model that describes the relationship between systematic risk and expected return for assets, particularly stocks.

Closed Loop Marketing

A marketing approach that is based on data and insights derived from customer interactions.

Collaborative Consumption

The sharing, swapping, trading, or renting of products and services, enabling access over ownership.

Cash Conversion Cycle (CCC)

A metric that expresses the time (in days) it takes for a company to convert its investments in inventory and other resources into cash flows from sales.


The process of bringing new products or services to the market.

Debt Financing

A method of raising capital by borrowing, typically through the issuance of bonds or obtaining a loan.


The reduction in the value of an asset over time, particularly in relation to its useful life.


The reduction in the ownership percentage in a company faced by existing investors, due to the issuance of new equity.

Discount Rate

The interest rate used to determine the present value of future cash flows.


The disposal or sale of an asset by a company.

Due Diligence

An investigation or audit of a potential investment or product to confirm all facts, such as reviewing all financial records, plus anything else deemed material.

Demand Generation

The focus of targeted marketing programs to drive awareness and interest in a company’s products and/or services.


Statistical data relating to the population and particular groups within it which are used to identify markets and make marketing strategies.

Direct Sales

Selling products directly to customers in a non-retail environment.

Disruptive Innovation

An innovation that significantly alters or creates a new industry and disrupts an existing one.


A distribution of a portion of a company’s earnings to its shareholders.

Down Round

A fundraising round where companies sell shares at a lower price than in the previous round, resulting in dilution for existing investors.

Drag-Along Rights

A provision that enables a majority shareholder to force a minority shareholder to join in the sale of the company.

Due Diligence Checklist

A comprehensive list used by investors and entrepreneurs to evaluate a business opportunity.


A tool used for information management and business intelligence, presenting key metrics and performance indicators for a business or project.

Data Mining

The practice of examining large databases to generate new information and insights.

Data Security

The practice of protecting digital data from unauthorized access, corruption, or theft.


Failure to fulfill an obligation, especially to repay a loan.


The reduction of the general level of prices in an economy.


A tangible or intangible object produced as a result of a project that is intended to be delivered to a customer.

Data Breach

An unauthorized access and retrieval of sensitive information by an individual, group, or software system.

Debt-to-Equity Ratio (D/E)

A financial metric indicating the relative proportion of shareholders’ equity and debt used to finance a company’s assets.

Deferred Revenue

Payment received by a company in advance for services it has not yet provided or goods it has not yet delivered.


A term used to describe a failure to meet legal obligations or conditions, such as paying debts on time.


The quantity of a good that consumers are willing and able to purchase at various prices over a given period of time.

Deming Cycle (Plan-Do-Check-Act, PDCA)

A continuous quality improvement model consisting of a logical sequence of four repetitive steps for continuous improvement and learning.


A financial security with a value that is reliant upon or derived from, an underlying asset or group of assets.

Direct Cost

A price that can be directly tied to the production of specific goods or services.


The reduction in the use of intermediaries between producers and consumers, for example by investing directly in the securities market rather than through a bank.


The process of a business enlarging or varying its range of products or field of operation.

Down Payment

An initial payment made when something is bought on credit.


A reorganization of a company with an aim to improve efficiency and cost-effectiveness that often involves layoffs or reducing the workforce.

Dutch Auction

An auction in which the auctioneer begins with a high asking price, and then lowers it until someone accepts the price, or it reaches a predetermined minimum price.

Earned Media

Any publicity you haven’t paid for that’s owned and created by a third party.

Earnings Before Interest and Taxes (EBIT)

An indicator of a company’s profitability, calculated as revenue minus expenses, excluding tax and interest.

Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA)

A measure of a company’s operating performance, calculated as revenue minus expenses excluding tax, interest, depreciation, and amortization.

Earnings Per Share (EPS)

The portion of a company’s profit allocated to each outstanding share of common stock, serving as an indicator of the company’s profitability.

Economic Order Quantity (EOQ)

The number of units that a company should add to inventory with each order to minimize the total costs of inventory—such as holding costs, order costs, and shortage costs.

Economic Value Added (EVA)

A measure of a company’s financial performance based on the residual wealth calculated by deducting its cost of capital from its operating profit, adjusted for taxes on a cash basis.

Economies of Scale

The cost advantage that arises with increased output of a product.

Elevator Pitch

A brief, persuasive speech that you use to spark interest in what your organization does.

Employee Stock Option (ESO)

A stock option granted to specified employees of a company. ESOs offer the options holder the right to buy a certain amount of company shares at a predetermined price for a specific period of time.


Ownership interest in a corporation in the form of common stock or preferred stock.

Equity Financing

The process of raising capital through the sale of shares.

Exit Strategy

A strategy a business owner uses to sell their stake in a company to investors or another company.


An economic cost paid immediately, which reduces business equity and earnings.


The phase of the business cycle when the economy moves from a trough to a peak.

External Analysis

The evaluation of the external environment that affects the performance of a company, including industry and market analysis.

Executive Summary

A short document or section of a document produced for business purposes that summarizes a longer report or proposal or a group of related reports.


An individual who creates a new business, bearing most of the risks and enjoying most of the rewards.

Exchange Rate

The price of one country’s currency in terms of another currency.

Endowment Effect

A psychology theory in which individuals value something more when they own it.


The degree of attention that consumers show to a brand, product, or service.

Early Adopters

The first group of consumers to adopt a new technology or product.

Early Majority

The group of consumers who start using a new product or technology just before the average person.


A contractual provision stating that the seller of a business is to obtain additional compensation in the future if the business achieves certain financial goals.

EBIT Margin

A profitability measure equal to EBIT divided by revenue.

Edge Computing

A distributed computing paradigm that brings computation and data storage closer to the location where it is needed, to improve response times and save bandwidth.


The degree to which a demand or supply is sensitive to changes in price or income.

Email Marketing

The use of email to promote products or services and develop relationships with potential customers or clients.

Employee Retention

An organization’s ability to keep its employees.


Granting employees power and resources to make decisions and solve problems without having to seek approval from management.


The conversion of data into a code to prevent unauthorized access.

End User

The person or organization that uses a product or service.

Planning (ERP)

Enterprise Resource Business process management software that allows an organization to use a system of integrated applications to manage the business and automate many back-office functions related to technology, services, and human resources.

Entrepreneurial Ecosystem

The social and economic environment affecting local or regional entrepreneurship.

Environmental Scan

The analysis of external forces that affect an organization’s success and ability to compete in the marketplace.

Equity Crowdfunding

A method of raising capital through the collective effort of friends, family, customers, and individual investors.

Evergreen Content

Content that continues to be relevant long past its publication so that it always remains valuable to readers.

Feasibility Study

An assessment of the practicality of a proposed project or system.


A person or organization that owes to another the duties of good faith and trust.

Financial Forecast

An estimate of future financial outcomes for a company or project.

Financial Leverage

The use of borrowed money to increase the potential return of an investment.

First Mover Advantage

The advantage gained by the initial significant occupant of a market segment.

Fixed Costs

Costs that do not change with the level of production or output.

Flexible Work Arrangements

Work arrangements in which employees have flexibility in scheduling and location.

Focus Group

A diverse group of people assembled to participate in a guided discussion about a product before it is launched.


The process of estimating future trends or outcomes based on historical data.


A type of license that a party (franchisee) acquires to allow them to have access to a business’s (franchisor) proprietary knowledge, processes, and trademarks in order to allow the party to sell a product or provide a service under the business’s name.


A business model where a product is provided free of charge, but money is charged for additional features, services, or virtual goods.

Funding Round

A stage of startup investment, wherein investors purchase equity from a company.


The act of collecting or producing money for a particular purpose, especially for a charity or other nonprofit organization.

Future Value (FV)

The value of an asset or cash at a specified date in the future that is equivalent in value to a specified sum today.

Fixed Assets

Long-term tangible pieces of property or equipment that a firm owns and uses in its operations to generate income.

Fiscal Year

A one-year period that companies and governments use for financial reporting and budgeting.

Face Value

The nominal or dollar value of a security stated by the issuer.


A financial transaction and a type of debtor finance in which a business sells its accounts receivable to a third party (called a factor) at a discount.

Fair Market Value

The price at which a good or service would change hands between a willing buyer and willing seller, neither being under any compulsion to buy or sell and both having reasonable knowledge of the relevant facts.


Industries composed of companies that use technology to make financial services more efficient.

Family and Friends Round

An early round of business financing from family and friends.

Fast Follower

A company that quickly imitates the innovations of its competitors.

Feasibility Analysis

An evaluation and analysis of the potential of a proposed project to support the process of decision making.

Federal Reserve (Fed)

The central bank of the United States, which regulates the U.S. monetary and financial system.


A financial grant for advanced study or research, usually given to a researcher.

Fiduciary Duty

A legal responsibility to act in the best interests of another.

Fiscal Policy

Government policy relating to setting tax rates and spending levels to monitor and influence a nation’s economy.

Fixed Interest Rate

An interest rate on a liability, such as a loan or mortgage, that remains the same either for the entire term of the loan or for part of the term.


The number of shares available for trading of a particular stock.

Foot Traffic

The presence and movement of people walking around in a particular space, especially considered in terms of its potential for sales, as in a retail environment.

Forward Integration

A business strategy that involves a form of vertical integration whereby business activities are expanded to include control of the direct distribution or supply of a company’s products.

Full-Time Equivalent (FTE)

A unit that indicates the workload of an employed person in a way that makes workloads or class loads comparable across various contexts.

Fully Diluted Shares

The total number of shares that would be outstanding if all possible sources of conversion, such as convertible bonds and stock options, were exercised.


The process of completing an order to the satisfaction of the customer, including all activities from processing the order to delivery.

Gap Analysis

The process of comparing actual performance with potential or desired performance, to determine the necessary steps to meet the desired performance.

Gig Economy:

A labor market characterized by the prevalence of short-term contracts or freelance work, as opposed to permanent jobs.

Gross Income

The total income from all sources before deductions and taxes.

Gross Profit

The profit a company makes after deducting the costs associated with making and selling its products, or the costs associated with providing its services.

Growth Hacking

A process of rapid experimentation across marketing channels and product development to identify the most effective, efficient ways to grow a business.

Guerrilla Marketing

An advertisement strategy concept designed for businesses to promote their products or services in an unconventional way with little budget to spend.

Go-To-Market (GTM) Strategy

The plan of an organization, utilizing their inside and outside resources, to deliver their unique value proposition to customers and achieve competitive advantage.


An intangible asset that represents the non-physical assets, such as brand name, reputation, or customer relationships, that a business has built up over time.

Greenfield Investment

A type of foreign direct investment where a parent company builds its operations in a foreign country from the ground up.

Gross Margin

A company’s total sales revenue minus its cost of goods sold, divided by the total sales revenue, expressed as a percentage.

Gross National Product (GNP)

The total value of all finished goods and services produced within a country’s borders in a specific time period.


A person who guarantees to pay a borrower’s debt if they default on a loan obligation.

Growth Capital

Capital invested in a company to help it expand, develop new products, or otherwise grow its business.

Gantt Chart

A type of bar chart that illustrates a project schedule and shows the dependency relationships between activities and current schedule status.

General Ledger

The primary accounting record used to track all financial transactions of a business.

General Partner

A person who joins with at least one other person to start and carry on a business and who is responsible for managing the business.


The process by which businesses or other organizations develop international influence or start operating on an international scale.

Golden Handcuffs

Financial allurements and benefits that have the objective to encourage highly compensated employees to remain within a company instead of moving from company to company.

Golden Parachute

An agreement between a company and an employee specifying that the employee will receive certain significant benefits if employment is terminated.


The system of rules, practices, and processes by which a firm is directed and controlled.

Hard Launch

Official release of a product to the public after a series of testing and trial periods.

Hard Skills

Specific, teachable abilities or skill sets that can be quantified, such as data analysis or computer programming.


A corporation or individual that provides employment recruiting services.


Making an investment to reduce the risk of adverse price movements in an asset.

Holding Company

A company created to buy and possess the shares of other companies, which it then controls.

Human Capital

The skills, knowledge, and experience possessed by an individual or population, viewed in terms of their value or cost to an organization or country.

Human Resource Management (HRM)

The formal systems for the management of people within an organization.


A state of great activity, typically in the context of entrepreneurial or freelance work.

Hybrid Model

A blended approach to organizational structure that combines both traditional and innovative strategies.


An extremely rapid and steep period of growth for a business.


Offering an asset as collateral for a loan.

Harvest Strategy

A business plan for either canceling or reducing marketing spending on a product.

Horizontal Integration

The process of a company increasing production of goods or services at the same part of the supply chain.

Hostile Takeover

A type of corporate takeover which is carried out against the wishes of the board (and usually management) of the target company.

House Brand (or Store Brand)

A brand owned by a retailer or supplier who gets its goods made by a contract manufacturer under its own label.

Heads of Agreement

Non-binding document outlining the main issues relevant to a tentative partnership agreement.

High Net Worth Individual (HNWI)

A classification used by the financial services industry to denote an individual or a family with high net worth.

Hybrid Financing

A method of financing where a company will use different modes to raise finances.

Hybrid Securities

Securities that combine the elements of the two broader groups of securities known as equity (stocks) and debt (bonds).


A type of advertising that is narrowly focused and targeted to a very specific local area.


An organization designed to help startup businesses grow and succeed by providing free or low-cost workspace, mentorship, expertise, access to investors, and in some cases, working capital in the form of a loan or investment.

Initial Public Offering (IPO)

The first sale of stock by a company to the public to raise capital for the company.


The process of translating an idea or invention into a good or service that creates value or for which customers will pay.

Intangible Assets

Non-physical assets such as patents, copyrights, goodwill, and brand recognition that are long-term resources of a company.


The raw materials, work-in-process products, and finished goods that a company has on hand.

Investor Relations (IR)

A department of a company devoted to handling inquiries from shareholders and investors, as well as others who might be interested in a company’s stock or financial stability.


An itemized bill issued by a seller listing the goods or services provided to the buyer, their prices, and the total amount to be paid.

Income Statement

A financial statement showing the revenue, expenses, and profits over a certain period.


Security or protection against a loss or financial burden.


The rate at which the general level of prices for goods and services is rising and subsequently eroding the purchasing power.

Information Technology (IT)

The use of computers to store, retrieve, transmit, and manipulate data, or information.


The basic physical and organizational structures and facilities needed for the operation of a society or enterprise.

Initial Coin Offering (ICO)

A type of crowdfunding using cryptocurrencies, often used as a form of capital raising for startups.


The state of being unable to pay the money owed, by a person or company, on time.

Intellectual Property (IP)

Creations of the mind, such as inventions, literary and artistic works, designs, symbols, names, and images used in commerce.

Interest Rate

The amount charged by lenders to borrowers for the use of money expressed as a percentage of the principal.

Internal Rate of Return (IRR)

A metric used in financial analysis to estimate the profitability of potential investments.

International Business

Commercial transactions that occur across country borders.


The act of behaving like an entrepreneur while working within a large organization.

Inventory Turnover

A ratio showing how many times a company’s inventory is sold and replaced over a period.

Joint Venture (JV)

A business arrangement in which two or more parties agree to pool their resources for the purpose of accomplishing a specific task or business activity.

Job Description

A written statement of the duties, responsibilities, required qualifications, and expected outcomes of a particular job or position.

Job Rotation

A technique used by some employers to rotate their employees’ assigned jobs throughout the company.

Just-in-Time (JIT)

An inventory strategy that aligns raw material orders from suppliers directly with production schedules, reducing inventory costs.

Job Enlargement

Increasing the tasks associated with a certain job to add variety.

Job Evaluation

A systematic process used within companies to determine the relative value of one job to another.

Job Sharing

An arrangement in which two or more employees share the responsibilities of one full-time position, such as splitting a 40-hour-a-week job into two 20-hour-a-week jobs.

Joint Stock Company

A type of company or partnership involving two or more individuals that own shares of stock in the company.

Judgment Proof

A description of a person who does not have enough assets for a creditor to seize when a judgment is made against the person.

Junk Bond

A high-yield or non-investment grade bond or debt security that has a higher risk of default than more creditworthy alternatives.

Job Analysis:

The process of gathering, documenting, and analyzing information about a job to create a job description.

Job Specification

A statement of employee characteristics and qualifications required for satisfactory performance of defined duties and tasks comprising a specific job.


The official power to make legal decisions and judgments, often relating to where a particular case should be decided.

Just Cause

A standard of reasonableness used to evaluate a person’s actions in a given set of circumstances.


Justifiable Termination

Ending an employee’s employment because of the employee’s unacceptable behavior or work performance.

Junior Debt

Debt that has a lower priority for repayment than other debt claims in the case of default.

Joint Account

A bank account held by more than one person, each individual having the right to deposit and withdraw funds.

Joint Liability

When two parties are jointly responsible for a debt or obligation.

J-curve Effect

Refers to the trend of a country’s trade balance following a devaluation or depreciation under a certain set of assumptions.


A wholesaler or distributor purchasing goods from manufacturers and selling them to retailers.

Key Performance Indicator (KPI)

A measurable value that demonstrates how effectively a company is achieving key business objectives.


A crowdfunding platform focused on creativity and merchandising, allowing people to raise funds for various projects.

Knowledge Base:

A centralized repository for information, a data management system, or a part of software for managing information.


A scheduling system for lean manufacturing and just-in-time manufacturing. It helps manage work by balancing demands with available capacity.


A set of companies with interlocking business relationships and shareholdings, often seen in Japan.

Key Account

A large organization’s account which holds strategic importance in business.

Key Employee

An employee whose skills, talents, and overall job performance are essential to the success of a business.

Key Man Insurance

A life insurance policy that a company purchases on the life of a key executive, which is payable to the company.

Key Rate

An interest rate that serves as a benchmark for other interest rates.

Key Success Factors

The most important areas in which a company must perform well in order to achieve its mission or objectives.

Know Your Customer (KYC)

The process of a business identifying and verifying the identity of its clients.

Knowledge Economy

An economy where knowledge is the primary raw material and source of value.

Knowledge Management

Strategies and processes designed to identify, capture, structure, value, leverage, and share an organization’s intellectual assets.


A small physical structure (often including a computer and a display screen) that displays information for people walking by.

Kinetic Chain

The concept that certain body parts or segments have an effect on others during movement.


The act of using funds from one bank deposit to fund a withdrawal in another bank, typically an illegal activity related to check fraud.


A product that is designed to imitate or closely resemble a more popular and often more expensive product.


An extra feature of a debt security or preferred stock; a right, warrant, or small amount of common stock or another security.


A statistical measure that indicates the distribution of data points in a dataset.

Killer Application (or Killer App)

A software application that’s so desirable or effective that it proves the value of some underlying technology, like a gaming console or software platform.