Glossary of Businesses

This is a compilation of terms used in the businesses, some come in English but with his meaning in Spanish.

Action

Anyone of the equal portions in which the capital of a corporation is divided whose property is pronounced through a certificate.

Shareholder

To title of one or more action, which gives the condition him of determined Partner of a company acquiring right.

Assets

Resources on which it counts the company, like: goods, investments, accounts to receive, monetary resources in banks.

Working capital

One talks about the assets that are considered will become liquid in a period of considered time. (as stocks and accounts to receive).

Fixed assets

They are the assets that remain in the company. (like equipment, offices).

Leverage

Degree of indebtedness. In English Leverage. When the benefits obtained by an investment are majors to the cost of the indebtedness to realise it.

Balance sheet

It is balance that is realised to reflect the economic-fianciera situation of a little while determined of the company.

Benchmarking

One talks about the action to compare our company with the competition in terms of quality, processes, activity, etc.

Branding

Strategies of marketing and tools that are used to crar a mark or to support one already existing one.

Business Intelligence

They are the tools or strategies that are implemented to make the process more efficient of decision making.

Canon of Entrance

Sum that pays the franchise-holder to acquire a tax exemption from which acquires rights and covers certain costs.

Canon of Publicity

Sum that pays the franchise-holder to participate in the expenses that incur of the advertising strategy that realises the chain of tax exemptions.

Co

When two marks of unite because they complement and they generate meetings a value added.

Capital

Material resources that can generate a benefit or rent.

Cash

In effective Spanish, used frequently to talk about to that the payment is going away to do of counted.

Cash flow

Produced flows of box and resources.

Service life of a product

One talks about to the sales of a product in his different stages, that they are identified like: introduction, growth, maturity and declivity.

Partnership of export

Organization created through an agreement of cooperation with the intention of promoting the export of products or services of the participant companies.

Control of management

Activity of support to the direction that consists of compiling, processing and to present/display excellent information for the decision making. The management control is based traditionally on instruments of type accountant-financier, but nonfinancier contemplates to nature information more and more.

Enterprise cooperation

When two or more independent companies share capacities, knowledge or resources to improve their position in the market and to reinforce their competitive advantages, whenever they do not get to megre.

Cost of the debt

It is the cost of a company that goes to other people's resources to finance.

Cost of opportunity

Benefit that is stopped obtaining to place monetary resources in alternative investments.

Direct costs

Those that are related or imputed, independent of voumen of activity, to a product or certain department (for example, the raw material).

Fixed costs

Those that are not affected by variations in the volume of production and noticeably remain fixed during a period of time (for example, the amount of the rent of the facilities are independent of the number of units that make).

Indirect costs

Factors or resources of production that, to affect a process as a whole, cannot be imputed to the products (for example, the amount of the expenses originated in the administration department of a company that make several products).

Semi-portable semivariable costs or

They are the costs that vary in agreement with increases in jumps of the production.

Variable costs

This form leaves from the total cost, is determined based on the volume of production (for example, manpower that is not in group, energy, et cetera).

Curve of Demand

It indicates the amount of a product or service that the individuals are prepared to buy to a certain price.

Curve of supply

It shows to the relation between the price and the offered amount of this good.

Customer Relationship Management (CRM)

Information system that it has like objective as well as possible to manage the relations with the clients. It allows the clients to contact itself with the company through any channel. Usually it consists of three great modules: Marketing, Sales, Attention to the Client.

Default

Action to fail to the decided payments.

Demand

In economic terms, this is defined as the amount of goods and services that the consumers are prepared to acquire under determined conditions of time and price.

Deviations

Difference between the real value of a variable and its established objective value.

Direction by objectives

System of work based on the evaluation of the yield on the basis of the objectives and I put established between workers and supervisors.

Diversification

Direction of development that can take an organization from its market and of present products. It is distinguished between related and not related diversification.

Earnings statement

Financial report that shows the income, the expenses and the result of a company or business, or as benefit or loss, during the countable period.

Economies of scale

An economy of scale in an activity exists or factor of a company, when as it increases the volume of production, diminishes the unit costs by made or made product.

Elasticity

Measurement of sensitivity of the offered amount or the demanded amount, before changes in some of its determinants. It are expressed in percentage terms. The elasticity price of the demand is the percentage variation that occurs on the basis of changes in the price.

Empowerment

To equip with authority and control to the employees so that they by themselves make decisions in the normal execution from his tasks.

Entreprise Resource Schedule (ERP)

Information system for the effective and integral management of the most important parts of the business. Their sections are: Finances, Production, Logistic, Human Resources, and Sales and Marketing.

Financial balance

Coordination between the availability of the investments and the exigency of means used for its financing.

Scalability

Capacity of a software or a hardware to grow, adapting to new requirements as changes the needs of the business.

Countable states

Information in which the obtained economic result in a determined period is reflected, as well as its financial and patrimonial situation.

States of origin and application of bottoms

Report that compares the patrimony between two countable exercises, with the aim of identifying the sources of obtained financial resources in a cycle of operation and the form in which these have been applied.

Commercial strategy

It includes the analysis and selection of markets, the definition of commercial objectives and the combination of marketing instruments (product, price, distribution and promotion).

Corporative strategy

Plan of action that defines the scope of the company on the basis of sectore and market in which it competes.

Structure of capital

Combination of the average employees for the financing of the investments. The capital structure is reflected in the liabilities, and must distinguish between fixed capitals or permanent, and operating capitals or with victories in the short term.

Critical factor of success

They are the objectives that necessarily are due to reach to fulfill the lines strategic of the emprendimiento.

Necessary financing

They are the bottoms necessary in a company to be able to develop its activity.

Float

Time that passes since a commercial operation begins until its effective liquidation (date in which the value in our account is paid).

Flow of box

Entrances and exits of box that take place within an organization in a certain period. Liquidity (in English: cash flow).

Flows of bottoms

They represent the income and real debits of money that happens during a time.

Franquiciatario

Person who receives the elements that compose a model of business and a continuous attendance to begin in an own commercial activity. Normally, the franquiciatario contributes to investment and work, through the management and direct operation of the business.

Franchisor or franquiciante

Person, physics or moral, proprietor of a mark, a product or a service and of a know-how (to know how to do). It puts all.

System of franchise

Method of collaboration between two companies, by means of which one of them (franchisor) yields to another one (franquiciatario), in exchange for an economic compensation, the right to make or to use a trade name, service or product already credited. Three types exist: of distribution, services and industrialist. These elements at the disposal of the franquiciatario so that it duplicates the business model, in exchange for a canon of entrance plus an exemption on his sales or benefits, according to are stipulated in the contract.

Freelance

Independent worker.

Fusion

Action to unite two companies, establishing a new model of business to coordinate efforts, to eliminate duplicated activities in order to create a synergy.

Management of operations

Area of enterprise management that coordinates all those activities that carry out in the physical flow of products and materials, from the supplier to the client.

Hypothesis

In financial projections or within the Plan of Business, hypothesis is called to them or supposed to those values that we adjudged to certain variables and that, although exist an uncertainty degree on the same, allow us to analyze future results. The variation to the rise or the loss of the hypotheses on the Plan of Business allows to realise what we called sensitivity analysis.

Individual incentives

Directed incentives to foment the effort over the minimum, through a system that articulates the delivery of tie prizes with the conduct of the subject.

Remuneratorios incentives

Stimuli of diverse nature, as they could be the social pay, payments in species, benefits, et cetera, that act like stimulus in the hiring, and reinforce the permanence of the personnel in an organization.

Indicator of management

Value that allows to know the behavior a company before a certain critical factor of success to control its state and its evolution.

Insourcing

To revert the process of Outsourcing.

Investor

That one that gives money in exchange for a proportion of the company.

Joint Venture

Agreement of cooperation that implies the creation of a new company with own legal personality, by means of the investment of several companies.

Just in Time

Management of operations of Japanese origin, by means of which the philosophy of zero inventories is adopted (stock): the necessary material is given just in time.

Know-how

Knowledge that the franchisor to the franquiciatario and its equipment transmits.

Leasing

Contract of personal renting of property or an immovable one, with option of built-in purchase.

Financial Leasing

The leasing society commits itself to give or, but to his maintenance or repair and the client is not forced to pay the amount during all the life of the contract, without being able to terminate it unilaterally. In the end, he will be able or not to decide on the purchase.

Operative Leasing

Renting of a good, that can at any time be revocable by the renter, with price warning. The landlord is the own distributing manufacturer or of the good.

Daily book

It reflects the daily operations.

License

It is a contract by which a person unfolds in systematic form her influence on external activities, such as direction and organization of the work carried out by the subordinates.

Line of products

Product set that satisfies a same type with needs.

Logo

Emblem formed by letters or abbreviations, symbol of a company, marks or products.

Mark

Certifica name that the authenticity of a product, and allows the company to distinguish itself against the competition.

Margin

Benefit between the price of cost and the one of sale.

Gross margin of utilities

It arises when remaining of the income by sales, the expenses of raw materials, personnel, services, repair and maintenance, financiers, of publicity and promotion, tax.

Marketing mix

Mixture of controlable táctivas variables by the company, that are used to produce the result wished in the objective market.

Merchandising

Directed actions and techniques to look for the suitable disposition of the product assortment, furniture, means, advertising and promotional supports, within the establishments of sale to the public. Commercialization is also called to him.

Promotional mixture

Main activity of communication of a company and is formed by the specific mixture of publicity, public promotion of sales, relations and personal sales that this company uses to reach its objectives of publicity and marketing.

Mission

This mark a course, is neither a goal, nor an intention. It contributes to the profit of the objectives of the company establishing his identity.

Motivation

General predisposition that directs the behavior towards the obtaining of an objective. It is that one necessity that drives the individual.

Samples

Promotional technique by which a product is given free of charge to be proven by the consumer.

Objectives

Goals or profits that are tried to obtain in a company, and whose measurement of attainment serves to value the reached yield.

Social object

Activity for which a society is created.

Outsourcing, sub-contracting, or externalisation

Hiring of the services of an other people's company, for the execution of some processes that were realised within the organization.

Plan of Business

Document in which it is identified, describes and analyzes a business opportunity with the purpose of to evaluate its technical, economic and financial viability.

Price of balance

Price to that demanded amount is equaled and amount offered in the graph that intersect the curves of demand and supply.

Productivity

Increase or diminution of the final yields based on the productive factors.

Promotion

Activity that has like aim giving to know or to make feel the necessity of a product.

Promotion of sales

Commercial law action, whose objective is to increase the short term sales of a product or service, offering better conditions than those of the habitual ones.

Financial projection

Document that reflects from an accounting point of view, the economic plan of a company being based on macroeconomic scenes and the position of the company in the market.

Publicity:

Promotion payment of ideas, products or services, whose objective is to obtain the attention of the public to whom it is directed.

Point of balance

One talks about the point in which the company the same amount of costs that income, reason why the result of is 0.

Ratio

Relation between two elements or quantitative sets of the balance of a company, to judge its structure and evolution.

Public relations

Activity of communication and relation with the different public from the company, by means of which it is tried to form a favorable image of the same.

Economic yield (Yield)

Relation between the benefit (before interests and taxes) and the total assets.

Financial yield

Relation between the net benefit and loa equity capitals.

Renting:

One talks about an operative leasing by means of which a rented good renews or replaces periodically, by another new one.

Operative result

Result that arises from the own activity of the business, that arises to reduce the expenses of all the obtained income.

Extraordinary result

One talks about to the income or expenses originated from activities or facts noncontemplated in the own activity of the company.

Credit risk

It reflects the possibility that to a debt or its interests is pleased.

Rotation of Inventory

It is the number of times that an inventory is sold totally and it becomes to replace, in an established period.

Royalty

Amount that must pay the franchise-holder periodically to the franchisor, that calculates proportionally on its sales, by concept of the support and control that receives.

Segmentation of the Market:

Action to classify the market in homogenous groups, to know it and to establish a suitable strategy of marketing.

Start up:

Activity stage of or company talks about to the initial.

Stock

The amount of goods that prepares a company, this term is used generally to talk about to stored products.

Control board

One talks about the indicators that through their pursuit and periodic control, facilitate essential information on the company.

Rate of Discount

It is the rate of return that an investor by his participation in a business requests.

Tele-marketing

Strategy of marketing, by means of which products or services are offered and sold by telephone.

Target

Objective public. Term that is frequently used in marketing and publicity.

Competitive advantage: Characteristic

of a product or activity of the company that is better than the competition, and that the client perceives like important.

Capital Venture

Money invested by a group of investors on a project or business of high risk, in exchange for a percentage of property of the business.

Vision

It makes reference to the identity reach about the medium company to or long term, that settles down from the beginning of the same.