As you enter the business world, you will notice a lot of terms and abbreviations being used. While you may be familiar with some, others may leave you scratching your head. Below are just a few of the most common abbreviations.
Accounts Payable (AP)
These are the bills your business needs to pay.
Accounts Receivable (AR)
These are the amounts people owe you for products purchased or services performed
B Corp
A B Corp is a type of for-profit corporate entity that includes positive impact on society and the environment in addition to profit as its legally defined goals. In many cases, the majority of profits are reinvested in the business. Canadian companies must register as a regular corporation but can apply for B Corp certification.
Cost of Goods Sold (COGS)
The direct costs attributable to the production of the goods sold by a company. This amount includes the cost of the materials used in creating the good along with the direct labor costs used to produce the good. It excludes indirect expenses such as distribution costs and sales force costs.
Features, Advantages, and Benefits (FAB)
What are the features, advantages and benefits of your product or service?
Initial Public Offering (IPO)
Stock market launch
Key Perfomance Indicators (KPI)
How you measure your business success. KPI can also be applied to various parts of business such as social media.
Original Equipment Manufacturer (OEM)
A company whose products are used as components in another company’s product. The OEM will generally work closely with the company that sells the finished product (often called a “value-added reseller” or VAR) and customize the designs based on the VAR’s needs.
Point of Purchase Advertising (POP)
Advertising done at point of sale such as signs and displays of products, displays at cash registers, online bonus sales (customers who bought this have also bought that).
Product Life Cycle (PLC)
The expected life duration of your product before it breaks or becomes obsolete.
Return on Investment (ROI)
ROI is the benefit to the investor resulting from an investment of some resource.
SWOT analysis
Strengths, Weaknesses, Opportunities, Threats for your product, service or company. A SWOT analysis should be conducted regularly.
Value Added Reseller
A company that sells the finished product using OEM parts.
