Glossary
With over 300 terms, our business dictionary is designed to help you better understand the terms that you will come across daily while running your business or dealing with your accountant and your bank.
Accelerated payment
Accelerated payments reduce the borrower’s interest costs (the total fee paid to the lender for the loan). This can...
Accounting Standards for Private Enterprises (ASPE)
The Accounting Standards for Private Enterprises (ASPE) are accounting...
Accounts payable
Managing accounts payable is one of the most important financial responsibilities for any business...
Accounts receivable
Accounts receivable refer to the money a company’s customers owe for goods or services they have received...
Accrual cash accounting
Accrual- and cash-based accounting are two different methods that accountants use to prepare financial...
Accrued expenses
Accrued expenses are those incurred for which there is no invoice or other documentation. They are classified...
Acid-test ratio
The acid-test ratio compares a company’s “quick assets” (cash and accounts receivable) to its current liabilities...
Administration expenses
Administration expenses are the costs of paying wages and salaries and providing benefits to non-sales personnel...
Advisory board
An advisory board is a group of people chosen to give expert and unbiased advice to a business. Members arel...
Amortization
Amortization expenses account for the cost of long-term assets (like computers and vehicles) over the lifetime of their...
Amortization period
The amortization period is the length of time it takes a borrower to pay back the full amount of a loan principal plus ...
Angel investor
An angel investor is a wealthy person who invests his or her own money in a company—usually a start-up...
Asset-backed securities
When investors invest in companies, they are issued a “security” to represent the money they have invested. The most...
Asset-based lending
Asset-based lending occurs when a loan is granted primarily on the value of the assets the borrower offers as...
Assets
Assets are the economic resources a business uses to increase sales, reduce costs or otherwise generate...
Audited, accountant-reviewed and notice-to-reader financial statements
Audited, accountant-reviewed and notice-to-reader are three types of financial statements—documents that show...
Average collection period (receivables turnover)
The average collection period is the average number of days it takes a business to collect and convert its accounts...
Balance sheet
A balance sheet is one of the fundamental documents that make up a company’s financial statements, along with...
Balloon payment loan
With a balloon payment loan, the final payment includes a large portion of the principal (the original amount...
Bank debt
Bank debt is a long-term liability a business takes on by borrowing money from its bank. It appears under liabilities...
Bankruptcy
Bankruptcy is a process governed by the Bankruptcy and Insolvency Act (BIA). It is initiated when a company that is unable...
Barriers to trade
A barrier to trade is anything that makes it harder to trade goods and services across borders...
Bill of lading
A bill of lading (BoL) is a legal document that describes what’s being shipped between a shipper and a logistics...
Blended payment
Blended payments are a way of repaying a loan that sets equal monthly payments of principal and interest (blended)...
Board of directors
A board of directors is a group of people who represent the interests of a company’s shareholders. It also...
Bonded warehouse
A bonded warehouse is a warehouse operated by a private company in a foreign country under the regulatory...
Borrower
A borrower is a person or business that receives money from a lender with the agreement to pay it back within a specified...
Break-even point
The break-even point is when total costs are equal to total revenue. Below that point, you’re operating at a loss...
Bridge capital
Bridge capital is temporary funding that helps a business cover its costs until it can get permanent capital from equity...
Business accelerator
A business accelerator is a program that gives developing companies access to mentorship, investors and other...
Business bank account
Operating a business entails managing a number of different types of transactions on a regular basis, including...
Business incubator
Business incubators work with early-stage companies to get them to move beyond their embryonic phase...
Business plan
Good business plans are based on real knowledge of the solutions customers want and how they’ll use them. They...
Canada-Europe Trade Agreement (CETA)
The Canada-Europe Trade Agreement (CETA) is Canada’s most comprehensive free trade agreement. It was...
Capital cost allowance (CCA)
Capital cost allowance (CCA) is the amount of amortization expense that the government will allow a company...
Capital structure
Capital structure is the mix of debt and equity on a company’s balance sheet. It shows how much of a company...
Cash
Cash is the amount of actual money a business has at its disposal. It is classified on the balance sheet as a current...
Cash flow
Cash flow measures how much cash a company takes in versus how much it expends. More cash coming in than...
Change management
Change management is a way to move an organization to a new state of operating to better meet demands...
Collateral
The use of collateral reduces repayment risk for the lender. If the borrower cannot pay a debt on time and goes into...
Commercial letter of credit
A commercial letter of credit (CLC) is a bank-issued document that ensures a supplier to a company gets paid...
Commercial mortgage
Owning your place of business can give you more freedom to shape and control your operations and let you build...
Commodities
A commodity is any good or service that is interchangeable with another good or service of the same type...
Common shares
Common shares are issued to business owners and other investors as proof of the money they have paid...
Competitive advantage
A competitive advantage is anything that gives a company an edge over its competitors, helping it attract more...
Competitive forces
Competitive forces are the factors and variables that threaten a company’s profitability and prevent its growth. They...
Content Marketing
Content marketing is an online marketing strategy that helps companies attract and engage customers by publishing...
Content syndication
With content syndication, companies post or promote their own blogs, articles, videos and other online content...
Contract employment
Contract employment involves hiring a person for a specific job under particular terms for a fixed period of...
Contributed surplus
Contributed surplus is the accounting term used whenever shares are sold at a price above their stated par value...
Controlling interest
A shareholder has controlling interest in a business when he or she owns more than 50% of the company’s voting...
Conversion rate
Conversion rate is the percentage of visitors to a company’s website who take a desired action. For example, the...
Convertible debt
Convertible debt (also called convertible notes) is a form of financing that is often used by high-growth early-stage...
Copyright
In general, copyright means the sole right to produce or reproduce a work or a substantial part of it in any form. It...
Corporate governance
Corporate governance is the practice of ensuring a corporation conducts itself accountably, fairly and openly in all...
Corporate social responsibility
Corporate Social Responsibility (CSR) is the idea that a company should play a positive role in the community and ...
Corporation
A corporation is a legally established entity that can enter into contracts, own assets and incur debt, as well as...
Cost advantage
A company has a cost advantage when it can produce a product or provide a service at a lower cost than its...
Cost of capital
A company’s cost of capital is the cost of all its debt (borrowed money) plus the cost of all its equity (common...
Cost of goods sold (COGS)
Cost of goods sold (COGS) is the direct cost of making a company’s products. It is an important line on your...
Cost of sales
Cost of sales (COS) indicates how much a retail or wholesale business spends on the products it purchases from...
Covenants
When giving out a business loan, a lender will often ask a borrower to respect certain conditions that go beyond...
Cover letter
The cover letter introduces a company’s financial statements and is written by the business’s accountants. It...
Credit card debt
Credit card debt is money a company owes for purchases made by credit card. It appears under liabilities on the...
Credit insurance
Credit insurance guarantees a lender will be repaid if a borrower is unable to pay his or her debt due to, for example...
Crowdfunding
Crowdfunding usually entails a private company asking large numbers of people for small contributions. This differs...
Currency hedging
Currency hedging helps businesses protect themselves against changing currency exchange rates (the rates that...
Current assets
Current assets (also called short-term assets) are assets a business uses, replaces and/or converts to cash within..
Current liabilities
Current liabilities (also called short-term liabilities) are debts a company must pay within a normal operating cycle...
Current portion of long-term debt
The current portion of long-term debt (CPLTD) is the amount of unpaid principal from long-term debt that has accrued...
Current ratio
Current ratio compares a company’s current assets to its current liabilities. It is one of six main calculations...
Customs
Customs authorities (agencies) control the flow of goods in and out of their respective countries. These goods can...
Customs Union
A customs union is an agreement between two or more countries to remove trade barriers and lower or eliminate...
Debenture
A debenture is a type of long-term business debt not secured by any collateral. It is a funding option for companies...
Debt service coverage ratio
The debt service coverage ratio (DSCR) is a key measure of a company’s ability to repay its loans, take on new...
Debt-to-equity ratio
The debt-to-equity ratio shows how much of a company is owned by creditors (people it has borrowed money...
Debt-to-total assets ratio
The debt-to-total-assets ratio shows how much of a business is owned by creditors (people it has borrowed money...
Default
The first two are indicators of default. If the third is true, the lender may take steps to reduce losses by...
Demand loan
A demand loan is a loan that a lender can require to be repaid in full at any time. This condition is understood by...
Depreciation
angible assets, such as buildings, equipment, vehicles and so on, are purchased in large lump sums. The value...
Developed country
A developed country—also called an industrialized country—has a mature and sophisticated economy, usually...
Developing country
A developing country—also called a less developed country or emerging market—has a lower...
Differentiation
Differentiation occurs when a company, product or service stands out from the competition by meeting a unique...
Digital marketing
Digital marketing is marketing that uses the Internet to reach customers and learn about them...
Direct costs
Direct costs are the expenses a business incurs to make a product or deliver a service, or when it buys a wholesale...
Direct marketing
Direct marketing is any marketing activity that communicates directly with a potential customer through mail, emails...
Diversification
Diversification is a strategy companies and investors use to ensure they are not dependent on a single source of income...
Dividend payout ratio
The dividend payout ratio shows how much of a company’s earnings after tax (EAT) are paid to shareholders...
Dividends
Companies pay dividends to shareholders in return for using their capital. Dividends are paid out of the company’s...
Duty
A duty is an import fee (tariff) charged on goods entering a country, as specified in the country's tariff schedule...
Early-stage investing
Early-stage investing funds the first three stages of a company’s development. It is divided into three distinct funding...
Earnings after tax (EAT)
Earnings after tax (EAT) is the measure of a company’s net profitability. It is calculated by subtracting all expenses...
Earnings before interest and taxes (EBIT)
Earnings before interest and taxes (EBIT) indicate how effectively a company generates earnings over a specific...
Earnings before tax (EBT)
Earnings before tax (EBT) measures a company’s profitability before income taxes are factored. It is the amount...
Earnings per common share
Earnings per common share (EPS) is a measure of profitability that shows how much of a company’s profit...
EBITDA
EBITDA is short for earnings before interest, taxes, depreciation and amortization. It is one of the most widely used...
E-commerce
E-commerce (electronic commerce) is the process of buying, selling or exchanging products and services...
Economic environment
The term economic environment refers to all the external economic factors that influence buying habits of consumers...
Economic union
An economic union is an agreement between two or more nations to allow goods, services, money and workers to...
Efficiency, effectiveness and flexibility
The terms “efficiency,” “effectiveness” and “flexibility” are used to describe the way a company operates in its...
Emerging markets
An emerging market (sometimes also called a developing economy) is a country with a fast-growing economy. It has...
Employee buyout
An employee buyout occurs when employees purchase the company they work for. To do so, they usually take on a...
Employee coaching
Employee coaching for performance happens when a manager helps an employee achieve his or her performance...
Entrepreneur
An entrepreneur is someone who starts or owns a business. Whether it’s in farming, retail, manufacturing...
Enterprise resource planning software
Companies use enterprise resource planning (ERP) software to manage the various aspects of their operations...
Equipment
Equipment is a tangible long-term asset that benefits a business over several years of use. Computers, trucks and...
Equity dilution
Equity dilution occurs when a company issues new shares to investors and when holders of stock options exercise...
Equity financing
When companies sell shares to investors to raise capital, it is called equity financing. The benefit of equity financing...
Exchange rate
An exchange rate indicates how much it costs to buy units of one currency using a different currency. It also shows...
Exit
An exit occurs when an investor sells part or all of his or her ownership. In a healthy or growing company, an investor...
Export plan
An export plan outlines how a company will establish or grow its business internationally, and usually identifies...
Exports / Exporting
Selling goods and services to buyers in another country is called exporting. To ensure they follow all appropriate laws...
Financial statements
Financial statements are a key tool for running your business. They’re a snapshot of your company’s finances...
Fiscal year end
The fiscal year end is the date on which a company finishes a 12-month business cycle. Most companies’ fiscal years...
Fixed costs
A fixed cost is an expense that does not change when sales or production volumes increase...
Fixed-rate (term) loan
In a fixed-rate loan (also called a term loan), the interest rate stays the same for the loan’s entire term. For example...
Floating-rate loan
In a floating-rate loan (also called a variable-rate loan), the interest rate varies over the term of the loan...
Foreign sales agent
A foreign sales agent represents a business in a market outside of its home country (i.e., a foreign market)...
Franchise
With a franchise, a company licences its processes, intellectual property (e.g., trademarks), trade secrets...
Free cash flow
Free cash flow is a way to measure the amount of cash a business generates in a specific period.
Free on board (FOB)
Free on board (FOB), also referred to as freight on board, is a commercial shipping term used in overseas...
Free Trade Agreement (FTA)
A free trade agreement (FTA) is a treaty between two or more countries to facilitate trade and eliminate...
Free trade zone
A free trade zone is any location where goods can be shipped, handled, manufactured, reconfigured...
Freight bill
A freight bill, like any other invoice, informs you of what your business owes the logistics company for...
General expenses
General expenses are the costs a business incurs as part of its daily operations. They can be found in the selling...
General partnership
In Canada, two or more people can start a business as a general partnership. It is one of the three most common...
Global business
A global business is a company that operates facilities (such as factories and distribution centres) in many countries...
Global strategy
A global strategy is a plan to help a company grow from an international business (which sells products or...
Global supply chain
A global supply chain covers all the steps involved in manufacturing and delivering a product or service when...
Global value chain
Global value chain refers to five interrelated activities, taking place in more than one country, that...
Globalization
Globalization is a process of increasing social and economic integration among countries around the world...
Goods and Services Tax (GST) / Harmonized Sales Tax (HST)
The GST/HST is a sales tax on supplies of most goods and services in Canada, as well as many supplies...
Goodwill
Goodwill refers to the value a company gets from its brand, customer base and reputation associated...
Gross domestic product
Gross domestic product (GDP) is a broad measure of a country’s economic activity based on the total cash...
Gross margin
Gross margin is one of the most important indicators of a company’s financial performance. It’s the portion of business...
Gross profit margin
The gross profit margin tells you what your business made after paying for the direct cost of doing business...
Guerrilla marketing
Guerrilla marketing refers to unconventional approaches to promote products or services. Its purpose...
Import
An import is a good, product or service brought into a country from another country...
Inbound marketing
Inbound marketing is a marketing strategy designed to generate interest in a company’s products or services...
Income statement
An income statement is a key financial document for your business. It shows what your company earns...
Income tax
Governments collect income tax on the profit earned by businesses in their territory—whether those businesses...
Indirect costs
Indirect costs are the costs of going to market with a product or service that cannot be directly traced to the...
Industrial design
Industrial designs are about how things look. Industrial design registrations protect a new or original...
Information technology
Information technology (IT) refers to a company’s networks, hardware, software and data storage and...
Inflation
Inflation can have a significant impact on the profitability of your business. It's a very good idea to learn how...
Initial public offering (IPO)
An initial public offering (IPO) refers to the first time a company sells shares publicly. It is a form of equity...
Insolvent
A business is insolvent when it has both a negative debt service coverage ratio—meaning it can’t make its...
Intellectual property
Intellectual property (IP) covers products, artistic or literary works, inventions, logos and other things...
Interest
Interest is the fee a business pays a lender (creditor) to borrow money. Interest payments are usually based on...
Interest-only loan
With an interest-only loan, the borrower’s regular payments include only interest, not the principal amount of the...
International business
An international business is one that sells products or services in other countries but operates facilities
International certification standards
An international certification standard outlines the requirements and specifications a product, process or...
International commercial terms
International commercial terms (Incoterms) are rules and standards for commercial transactions published...
International Financial Reporting Standards (IFRS)
International Financial Reporting Standards (IFRS) are the rules, standards and procedures accountants use...
International market
An international market is any market outside a company’s home country—which is its domestic market. For...
International trade
International trade is the exchange of goods or services between countries. Free trade agreements facilitate...
International trade show
An international trade show is an event where companies from different countries showcase and demonstrate...
Inventory
Inventory includes finished units of a product being held for sale, as well as unfinished works in process...
Inventory management
Inventory management is the practice companies follow to ensure they have enough raw material, parts...
Inventory turnover (number of days in inventory)
Inventory turnover shows how many times per year a company converts its inventory into sales. It is one of six...
Investments
A company’s balance sheet may show funds it has invested in other companies. Investments appear on a...
ISO 9001
ISO 9001 is an international standard that sets out the requirements for a quality management ...
Joint venture
In a joint venture, two or more companies join together to collaborate on a particular project. Through...
Kaizen
The Japanese word “kaizen” means “continuous improvement” and refers to a structured process for...
Kanban
Kanban is a tool and scheduling system for managing interdependent manufacturing processes. Invented...
Key success factors
Key success factors (also known as competitive emphasis or strategic posture) state the important elements required...
Labour expenses
While all companies pay for labour (in the form of the wages they pay to people who work for them), labour...
Labour productivity
Labour productivity is the value a business adds in goods, services or both and is calculated by the...
Land and buildings
Land and buildings are tangible, long-term assets companies use and benefit from over time. They are...
Late-stage investing
Late-stage investing supports companies that have moved beyond the start-up phase of development...
Leadership
Leadership is the ability to clearly define a vision for your business and to motivate people to achieve that...
Lean manufacturing
Lean manufacturing is a systematized approach to production that helps companies manufacture the most goods...
Lender
A lender gives money to a borrower with the agreement that it will be paid back within a certain time...
Lending agreement
A lending agreement (loan agreement) is a formal contract between a lender and a borrower...
Letter of guarantee
A letter of guarantee is a document issued by your bank that ensures your supplier gets paid for the goods or services...
Leverage
Leverage is the amount of debt a company has in its mix of debt and equity (its capital structure). A company...
Leveraged buyout (LBO)
A leveraged buyout (LBO) occurs when the buyer of a company takes on a significant amount of debt as part...
Liabilities
Liabilities are the legal debts a company owes to third-party creditors. They can include accounts payable...
Limited partnership
A limited partnership is a form of general partnership, which is one of three ways of organizing a business...
Line of credit
A line of credit is convenient for bridging gaps between the points when accounts payable are settled and accounts...
Liquidity
Liquidity is a company’s ability to convert assets to cash or acquire cash—through a loan or money in the...
Loan
A loan is a sum of money borrowed by a company with the agreement to pay the lender back within a...
Loan acceptance
Loan acceptance occurs when a borrower accepts the terms and conditions of a loan in writing. The details...
Loan authorization
Loan authorization occurs when a lending institution completes its “due diligence” (comprehensive...
Loan maturity date
Loan maturity date refers to the date on which a borrower’s final loan payment is due...
Loan-to-value ratio
The loan-to-value ratio (LTV) determines the maximum amount of a secured loan based on the market...
Local culture
Local culture is the set of behaviours, beliefs and customs that exist in a country—everything from how...
Logistics
AS one component of supply chain management, logistics is the process of coordinating and managing the flow of material goods as they make...
Long-term assets (fixed assets)
Long-term assets (also called fixed or capital assets) are those a business can expect to use, replace and/or...
Long-term liabilities (long-term debts)
Long-term liabilities, also called long-term debts, are debts a company owes third-party creditors that are...
Managerial preferences
Managerial preferences are the likes, dislikes, beliefs and perceptions that influence a manager’s contributions...
Market capitalization
Market capitalization refers to the total value of a publicly traded company’s outstanding common...
Market entry
Market entry includes all the activities involved in bringing a product or service to a new market—whether...
Market entry strategy
A market entry strategy is a company’s plan for delivering goods or services to a new market (a new country...
Marketing mix
A company’s marketing mix is the combination of products, pricing, places and promotions it uses to differentiate...
Marketing plan
A company’s marketing plan outlines its intended marketing and advertising activities for a specific period...
Market research
Market research is information about customers, competitors and emerging trends that helps companies...
Mergers and acquisitions (M&A)
Mergers and acquisitions (M&A) combine two business entities into one. A merger occurs when the two...
Mezzanine financing
Mezzanine financing is a business loan that offers repayment terms adapted to a company’s cash flows. It is a...
Most favoured nation
The most favoured nation (MFN) principle is based on the idea that countries should treat all their trade partners...
Multinational corporation
A multinational corporation is a company that does business in a select few countries around the world and operates...
National Treatment
National treatment is a principle that says countries should treat imported goods, services and intellectual...
Net profit margin ratio
The net profit margin ratio shows the percentage of sales revenue a company keeps after covering all of...
Net revenue
Net revenue is the revenue a company earns in a given period after any purchaser discounts or allowances...
Notes payable
Notes payable are long-term liabilities that indicate the money a company owes its financiers—banks...
Notes to financial statements
Notes to the financial statements disclose the detailed assumptions made by accountants when preparing...
Offer advantage
A company has an offer advantage when its product or service stands out from the competition by meeting...
One-time expenses/revenues
One-time expenses or revenues arise from non-operating activities, that is, those outside a company’s usual...
Online marketing
Online marketing (also called Internet marketing or web marketing) is marketing and advertising on the...
Operating activities/non-operating activities
Operating activities are all the things a company does to bring its products and services to market on an...
Operating expenses (selling, general & administrative expenses)
Operating expenses, also known as selling, general and administrative expenses (SG&A), are the fixed costs...
Operating profit margin
The operating profit is the difference between the revenues of a business and its costs and expenses, excluding...
Operations
Operations refers to all the tasks a company performs to turn raw materials into finished goods or services...
Opportunity cost
Opportunity cost (also known as “alternative cost,”) is the difference between a project’s cost estimate...
Organizational behaviour
Organizational behaviour refers to the ways people communicate and work together to accomplish the...
Organizational culture
Organizational culture is generally understood as all of a company’s beliefs, values and attitudes, and how...
Overhead
Overhead is a general term describing indirect costs—i.e., all costs not directly related to manufacturing...
Pari-passu
When several lenders jointly finance the same assets, this is referred to as co-lending. A co-lending...
Par value of shares
Par value is the value of a single common share as set by a corporation’s charter. It is not typically related...
Patents
Patent protection applies in the country or region that issues the patent. In Canada, a patent lasts for 20 years...
Patient capital
Patient capital is money a small or medium-sized private business raises. Its name refers to its lenient...
Pay per click
With pay-per-click (PPC) advertising, companies are charged for online ad space only when users click on their ads...
Payables turnover
Payables turnover shows how many times a year a company pays its suppliers. It is one of six main calculations...
Performance appraisal
Performance appraisal is a process for evaluating and documenting how well an employee is carrying out his...
Performance management
Performance management is a process of continuing, in-person dialogue between an employee and a manager...
Personal loan
A personal loan (also known as a consumer loan) describes any situation in which an individual borrows money...
Personal objectives
Personal objectives refer to the job-specific goals of each individual employee. They are important because...
Point of sale (POS)
Point of sale systems help businesses conduct transactions with their customers, primarily for...
Preferred shares
Preferred shares are issued to business owners and other investors as proof of the money they have paid...
Pre-paid expenses
Pre-paid expenses are intangible assets a company has already paid for and expects to benefit from in the short...
Price-earnings ratio (P/E multiple)
The price-earnings ratio (also called PE multiple or P/E) helps shareholders understand what their portion of...
Pricing decisions
Pricing decisions are the choices businesses make when setting prices for their products or services...
Prime interest rate
The prime interest rate is used as a reference rate by financial institutions to set the variable interest rate for...
Principal
Principal is the amount of money a company borrows when it takes a loan. This amount is recorded on a...
Principal + Interest payments
In a principal + interest loan, the principal (original amount borrowed) is divided into equal monthly amounts...
Private company
A private company is a business with private ownership. Typically, private companies have one or a small number...
Procurement
Procurement is the activity of finding and acquiring goods and services. Its aim is to ensure a company makes...
Product adaptation
Product adaptation is the process of changing a product to meet the needs of customers in a market other than...
Promissory note
A promissory note is a written promise to pay a sum of money, to a specified individual or organization, at a...
Public company
A public company is a company whose shares trade on a stock exchange. Typically, public companies have sold...
Purchase discounts and allowances
Businesses use discounts and allowances to encourage customers to buy from them or to pay an outstanding bill...
Ratio analysis
Business owners, managers and financiers use ratio analysis to understand how effectively a business is...
Raw material expenses
Raw material expenses refer to the cost of the components that go into a final manufactured product. They...
Retailer
A retailer is a business that finds, buys and gathers products or services from multiple suppliers and sells them...
Retained earnings
Retained earnings are the amount of profit a company has left over after paying all its direct costs...
Return on common equity ratio
The return on common equity ratio measures how much money common shareholders receive from a company...
Return on investment (ROI)
Return on investment (ROI) is the broadest measure of profitability used by shareholders to gauge how efficiently...
Return on shareholders’ equity ratio
The return on shareholders’ equity ratio shows how much money is returned to the owners as a percentage of...
Return on total assets ratio
The return on total assets ratio is obtained by dividing a company’s earnings after tax by its total assets. This...
Revenue
Revenue is a dollar figure that indicates how much money a company has earned by selling its products and...
Reward and recognition
Companies use rewards and recognition to motivate employees and demonstrate that they are appreciated...
Role descriptions
A role description explains the work an employee is expected to perform. It covers the activities and accountability...
Rules of origin
Rules of origin are laws, regulations and procedures that identify where an imported product originally came...
Search engine
A search engine is a software program that helps people find the information they are looking for online using...
Search engine optimization (SEO)
Search engine optimization (SEO) is the practice of using keywords and other techniques to ensure a company’s...
Seasonal payment
A seasonal payment (seasonal loan) is a loan that is repaid in keeping with a company’s seasonal cash flow...
Secured loan
In a secured loan, the lender has a legal claim against a borrower’s assets. If the borrower defaults, the lender...
Securitization
Securitization is the process used to create asset-backed securities (ABS). It takes the illiquid assets...
Seed capital
Seed capital is the initial amount of money an entrepreneur uses to start a business. Often, this money comes...
Segmentation
Segmentation is the process of dividing a company’s target market into groups of potential customers with...
Self-employed worker
A self-employed worker is an individual hired by a company to perform a specific service. According to the...
Selling expenses
Selling expenses are the costs associated with distributing, marketing and selling a product or service. They are...
Semi-variable costs
Semi-variable costs are expenses that include a mixture of fixed and variable costs.
Senior debt
Senior debts are loans secured by collateral (assets) that must be paid off before any other debts when a...
Share capital
The term “share capital” refers to the amount of money the owners of a company have invested in the business...
Shareholder
A shareholder is a person or institution that has invested money in a corporation in exchange for a “share”...
Shareholder injections/redemptions
A shareholder injection occurs any time a company’s existing shareholders put cash into the business. In return...
Shareholders' equity
Shareholders’ equity is the amount that the owners of a company have invested in their business. This includes...
Shares authorized, issued and outstanding
he term “authorized, issued and outstanding” refers to shares in a company that have been sold publicly...
Short selling
Short selling is a strategy used by stock market traders to make a profit on shares they expect will lose value...
Six Sigma
The Six Sigma program was created to help companies continuously improve the quality of their products and...
SKUs (stock keeping units)
A stock keeping unit, also known as a SKU (pronounced "skew"), is an internal identification code for a...
SMART objectives
SMART is an acronym that defines important criteria for setting ideal goals and objectives to manage your staff...
Social entrepreneur
A social entrepreneur is a businessperson whose goal is to create long-term social or environmental value...
Social media marketing
Social media marketing is the use of social media platforms such as Facebook, LinkedIn, Twitter, Instagram...
Sole proprietorship
A sole proprietorship is a business with a single owner who is solely responsible for all liabilities. In the eyes...
Standard operating procedures
A standard operating procedure is a step-by-step set of instructions that communicate to employees the...
Start-up
A start-up is a business in the earliest stages of getting established. Companies may stay in start-up mode for as...
Statement of changes in financial position
The statement of changes in financial position (sometimes called a “cash flow statement”) shows a company’s...
Statement of retained earnings
The statement of retained earning shows the accumulated profit of a company after dividend are paid...
Statement of work
A statement of work (SoW) is a document that describes the products or services one party will provide another...
Stepped payment
With a stepped-payment loan, a borrower’s monthly payments start low and increase gradually over time...
Strategic goals
Strategic goals are the specific financial and non-financial objectives and results a company aims to achieve...
Strategic plan
A strategic plan is a document that summarizes how a company plans to operate and grow over the next three to...
Strategic planning
Strategic planning is a process that helps a company decide what market opportunities to pursue and how to do...
Strategic scope
Strategic scope refers to the products and services a company plans to offer over a specific period, and...
Subordinate financing
Subordinated financing (junior debt) is a loan secured by collateral (assets) that are to be paid if a company goes...
Subsidiary
A subsidiary is a legal entity controlled by another legal entity. Subsidiaries are often used to facilitate...
Succession planning
Succession planning is a process for identifying, recruiting, training and mentoring high-performing employees...
Supply chain management
Supply chain management refers to the ways a company controls all the steps involved in manufacturing...
SWOT analysis
A SWOT analysis breaks down a company’s strengths, weaknesses, opportunities and threats (SWOT) to inform...
Syndicated loan
A syndicated loan is a substantial loan provided to a large borrower ($1 million or more) by several lenders together...
Tangible and intangible assets
Assets can be tangible or intangible. An intangible asset is a non-monetary asset that cannot be seen or...
Target market
A company’s target market is the set of customers it chooses to serve out of all the possible customers it could...
Tariffs
A tariff is a fee on goods and services being imported into a country. It is usually imposed and collected by a...
Taxes payable
Taxes payable are the amount of money a company owes in federal, provincial and municipal taxes. Harmonized...
Technical barriers to trade
A technical barrier to trade (TBT) is any regulation, standard or procedure that could make exporting goods...
Total cost of ownership
The total cost of ownership (TCO) is the cost to buy something plus the cost to operate it over its useful life...
Total quality management (TQM)
Total quality management (TQM) is a management philosophy that asks all of a company’s employees...
Trade credit insurance
Businesses buy trade credit insurance to protect against the risk of non-payment when selling goods and services...
Trade mission
In a trade mission, government officials and businesspeople from one country travel to another to promote...
Trade secret
Trade secrets include any valuable business information that derives its value from secrecy. In Canada, there...
Trademark
A trademark is one or many words, sounds or designs used to distinguish the goods or services of one...
Trend analysis
A trend analysis examines the factors that drive business success. The analysis is used to make projections for...
Valuation
Valuation is a process used to establish a company’s worth in dollars. A variety of methods are used...
Values
Values are what a company stands for—the beliefs that drive its organizational behaviour and the characteristics...
Variable costs
Variable costs are the expenses a business incurs that change with the amount of goods produced or services...
Venture capital
Venture capital is a form of early-stage financing sought by companies with high-growth ambitions and significant...
Venture Capital Action Plan
The Venture Capital Action Plan (VCAP) was created by the Government of Canada to encourage investment...
Venture capital fund
A venture capital (VC) fund is a sum of money investors commit for investment in early-stage companies...
Viral marketing
Viral marketing is an online marketing strategy that involves the creation of engaging and entertaining content...
Vision and mission statements
A vision statement expresses a company’s main goal for the future while a mission statement concisely explains...
Web analytics
Web analytics allow a company to collect, measure and evaluate data on visitor traffic that comes to and...
Weighted average cost of capital
The weighted average cost of capital (WACC) is the average rate that a business pays to finance its assets...
Wholesaler
A wholesaler is a company that sources, buys or stores products and services from multiple suppliers and sells...
Working capital
Working capital is the amount of cash and other current assets a business has available after all its current...
Working capital loan
A working capital loan is used to finance the everyday operations of a business such as sales and marketing...
World Customs Organization (WCO)
The World Customs Organization (WCO) is an international group of more than 180 customs agencies. The WCO...
World Trade Organization (WTO)
The World Trade Organization (WTO) is an international body dedicated to making trade flow smoothly, predictably...