BUISNESS TERMS

EQUITY STAKE

• The percentage of a business owned by a holder
• Example: Timmy asked for 25% of Bob's company.

VALUATION

• An estimate of how much something is worth
• Example: I valuate that my net worth is 400K

INVESTMENT

• Goods purchased today that are not used then selled later for more money.
• Example: I will give you 50000$ for 35% of my profit.

PROPIETARY

• Relating to an owner or ownership
• Example: The company has proprietary right to the property

ADVISORY BOARD

• An advisory board is a body that provides strategic advice to a company.
• Example: The advisory board suggested that we invest more.

PERPETUITY

• A perpetuity is an annuity that has no end, or a stream of cash payments that continues forever.
• Example: the business was so good, that it seemed like they had a perpetuity.

MARKET SHARE

• Market share is the percentage of a market (defined in terms of either units or revenue) accounted for by a specific entity.
• Example: the market share covered 25% of my money.

MONTHLY OVERHEAD

• an ongoing expense of operating a business
• Example: I have to pay 600K a year to hold up my business.

COMMISSION

• To do something and get paid
• I was commissioned to wash the car and got 5$.

STOCK MARKET

• A stock exchange.
• Example: I invested 1000 stocks for 10000$.

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• Cash flow: Money getting turned into a business
• Profit: The process of gaining money.
• Earnings: the amount of money earned.
• Interest: Gaining money over time.
• Budget: The amount of money you can spend.
• Marketing: promoting and selling business.
• Advertising: showing other people your product.
• Customer service: assistance from the company about the product.
• Supply and demand: the in stock/sell rate of an item.
• Entrepreneur: someone who makes a company.