Accounting Standards for Private Enterprises (ASPE) The Accounting Standards for Private Enterprises (ASPE) are accounting...
Audited, accountant-reviewed and notice-to-reader financial statements Audited, accountant-reviewed and notice-to-reader are three types...
Average collection period (receivables turnover) The average collection period is the average number of days...
Bank operating loan A bank operating loan (also called a line of credit) is a short-term, flexible loan that a business...
Bonded warehouse A bonded warehouse is a warehouse operated by a private company in a foreign country...
Competitive forces Competitive forces are the factors and variables that threaten a company’s profitability...
Content syndication With content syndication, companies post or promote their own blogs, articles, videos...
Cost of capital A company’s cost of capital is the cost of all its debt (borrowed money) plus the cost...
Cost of goods sold (COGS) The cost of goods sold (COGS) is the sum of all direct costs associated with manufacturing a product...
Cost of sales (COS) Cost of sales (COS) indicates how much a retail or wholesale business spends on the products it...
Current liabilities (short-term liabilities) Current liabilities (also called short-term liabilities) are debts...
Current portion of long-term debt (CPLTD) The current portion of long-term debt (CPLTD) is the amount...
Debt-to-total assets ratio (debt-to-total capital ratio) The debt-to-total-assets ratio shows how much of a business...
Direct costs Direct costs are the expenses a business incurs directly to make a product or service, or buy a…
Direct marketing Direct marketing is any marketing activity that communicates directly with a potential customer...
Diversification Diversification is a strategy companies and investors use to ensure they are not dependent on a single...
Dividend payout ratio The dividend payout ratio shows how much of a company’s earnings after tax (EAT) are paid to...
Dividends Companies pay dividends to shareholders in return for using their capital. Dividends are paid out of...
Duty A duty is an import fee (tariff) charged on goods entering a country, as specified in the country's...
Early-stage investing Early-stage investing funds the first three stages of a company’s development. It is divided into...
Earnings after tax (EAT) Earnings after tax (EAT) is the measure of a company’s net profitability. It is calculated by subtracting...
Earnings before interest and taxes (EBIT) Earnings before interest and taxes (EBIT) indicate how effectively a company generates earnings...
Earnings before tax (EBT) Earnings before tax (EBT) measures a company’s profitability before income taxes are factored...
Earnings per common share Earnings per common share (EPS) is a measure of profitability that shows how much of a...
EBITDA Earnings before interest, taxes, depreciation and amortization (EBITDA) is the primary calculation...
E-commerce E-commerce (electronic commerce) is the process of buying, selling or exchanging products and...
Economic environment The term economic environment refers to all the external economic factors that influence buying...
Economic union An economic union is an agreement between two or more nations to allow goods, services, money...
Efficiency, effectiveness and flexibility The terms “efficiency,” “effectiveness” and “flexibility” are used to describe the way a company operates...
Emerging markets An emerging market (sometimes also called a developing economy) is a country with a...
Employee buyout An employee buyout occurs when employees purchase the company they work for. To do so, they...
Employee coaching Employee coaching for performance happens when a manager helps an employee achieve his or...
Enterprise resource planning software Companies use enterprise resource planning (ERP) software to manage the various aspects of their...
Equipment Equipment is a long-term asset that benefits a business over several years of use. Computers, trucks...
Equity dilution Further, their share of the company’s profits is also diluted. This happens because the total number...
Equity financing When companies sell shares to investors to raise capital, it is called equity financing. The benefit of...
Exchange rate An exchange rate indicates how much it costs to buy units of one currency using a different currency...
Exit An exit occurs when an investor sells part or all of his or her ownership. In a healthy or growing...
Export plan An export plan outlines how a company will establish or grow its business internationally, and...
Exports / Exporting Selling goods and services to buyers in another country is called exporting. To ensure they follow...
Financial statements Financial statements are a set of documents showing a company’s current financial status...
Fiscal year end The fiscal year end is the date on which a company finishes a 12-month business cycle. Most companies’...
Fixed costs Fixed costs are costs that do not change when sales or production volumes increase or decrease...
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...
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 market Foreign markets are any markets outside of a company’s own country.Selling in foreign markets...
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...
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...
General expenses General expenses are the costs a business incurs as part of its daily operations, separate from...
General partnership A general partnership is a business established by two or more owners. It is one of three ways of...
Global business A global business is a company that operates facilities (such as factories and distribution centres)...
Global strategy A global strategy is a plan to help a company grow from an international business (which sells...
Global supply chain A global supply chain covers all the steps involved in manufacturing and delivering a product or service...
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...
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...
Gross margin Gross margin is the amount of money a company has left after subtracting all direct costs of producing...
Gross profit margin ratio The gross profit margin ratio shows the percentage of sales revenue a company keeps after it covers...
Guerrilla marketing Guerrilla marketing refers to unconventional approaches to promote products or...
Hedging Companies use hedging to minimize the impact of potentially negative financial events on their...
Import An import is a good, product or service brought into a country from another country. The person...
Inbound marketing Inbound marketing is a marketing strategy designed to generate interest in a company’s products or...
Income statement An income statement (also called a profit-and-loss statement) shows the profitability of a business...
Income tax Governments collect income tax on the profit earned by businesses in their territory — whether those...
Indirect costs Indirect costs are the costs of running a business and going to market with a product or...
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...
Initial public offering (IPO) An initial public offering (IPO) refers to the first time a company sells shares publicly. It is a form of...
Intellectual property (IP) Intellectual property (IP) is anything created by human minds: Inventions, literary and artistic works...
Interest Interest is the fee a business pays a lender (creditor) to borrow money. Interest payments are usually...
Interest-only loan With an interest-only loan, the borrower’s regular payments include only interest, not the principal...
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,...
International commercial terms International commercial terms (Incoterms) are rules and standards for commercial transactions...
International Financial Reporting Standards (IFRS) International Financial Reporting Standards (IFRS) are the rules, standards and procedures accountants...
International market An international market is any market outside a company’s home country—which is its...
International trade International trade is the exchange of goods or services between countries. Free trade agreements...
International trade show An international trade show is an event where companies from different countries showcase and...
Inventory A company’s inventory includes any finished units of product it is holding for sale, any unfinished units...
Inventory management Inventory management is the practice companies follow to ensure they have enough raw material...
Inventory turnover (number of days in inventory) Inventory turnover shows how many times per year a company converts its inventory into sales...
Investments A company’s balance sheet may show funds it has invested in other companies. Investments appear...
Joint venture In a joint venture, two or more companies join together to collaborate on a particular project. Through...
Key success factors Key success factors (also known as competitive emphasis or strategic posture) state the important...
Labour expenses While all companies pay for labour (in the form of the wages they pay to people who work for them)...
Land and buildings Land and buildings are tangible, long-term assets companies use and benefit from over time. They...
Late-stage investing Late-stage investing supports companies that have moved beyond the start-up phase of development...
Lean manufacturing Lean manufacturing is a systematized approach to production that helps companies manufacture the...
Lender Lean manufacturing is a systematized approach to production that helps companies manufacture the...
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...
Leverage Leverage is the amount of debt a company has in its mix of debt and equity (its capital structure)...
Leveraged buyout (LBO) A leveraged buyout (LBO) occurs when the buyer of a company takes on a significant amount of...
Limited partnership A limited partnership is a form of general partnership which is one of three ways of organizing a...
Liquidity Liquidity is a company’s ability to raise cash when it needs it. There are two major determinants of...
Loan A loan is a sum of money borrowed by a company with the agreement to pay the lender back within...
Loan acceptance Loan acceptance occurs when a borrower accepts the terms and conditions of a loan in writing. The...
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. Once that...
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...
Logistics Logistics is the practice of coordinating processes and managing materials to create products or...
Long-term assets (fixed assets) Long-term assets (also called fixed or capital assets are those a business can expect to use, replace...
Long-term liabilities (long-term debts) Long-term liabilities, also called long-term debts, are debts a company owes third-party creditors that...
Managerial preferences Managerial preferences are the likes, dislikes, beliefs and perceptions that influence a manager’s...
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...
Market entry strategy A market entry strategy is a company’s plan for delivering goods or services to a new market (a...
Market research Market research is information about customers, competitors and emerging trends that helps...
Marketing plan A company’s marketing plan outlines its intended marketing and advertising activities for a...
Mergers and acquisitions (M&A) Mergers and acquisitions (M&A) combine two business entities into one. A merger occurs...
Mezzanine financing Mezzanine financing is a business loan that offers repayment terms adapted to a company’s cash...
Most favoured nation The most favoured nation (MFN) principle is based on the idea that countries should treat all...
Multinational corporation A multinational corporation is a company that does business in a select few countries around the...
National Treatment National treatment is a principle that says countries should treat imported goods, services and...
Net profit margin ratio The net profit margin ratio shows the percentage of sales revenue a company keeps after covering...
Net revenue Net revenue is the revenue a company earns in a given period after any purchaser purchase discounts...
Notes payable Notes payable are long-term liabilities that indicate the money a company owes its financiers...
Notes to financial statements Notes to the financial statements disclose the detailed assumptions made by accountants when...
Offer advantage A company has an offer advantage when its product or service stands out from the competition...
One-time expenses/revenues One-time expenses or revenues arise from non-operating activities, that is, those...
Online marketing Online marketing (also called Internet marketing or web marketing) is marketing and advertising...
Operating activities/non-operating activities Operating activities are all the things a company does to bring its products and services to market...
Operating expenses (selling, general & administrative expenses) Operating expenses—also called selling, general and administrative expenses...
Organizational behaviour Organizational behaviour refers to the ways people communicate and work together to accomplish...
Organizational culture Organizational culture is generally understood as all of a company’s beliefs, values and attitudes...
Overhead Overhead is a general term describing indirect costs—i.e., all costs not directly related to manufacturing...
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...
Pari-passu Pari-passu—Latin for “equal footing”—is a financing arrangement that gives multiple lenders...
Patient capital Patient capital is money a small or medium-sized private business raises. Its name refers to...
Pay per click With pay-per-click (PPC) advertising, companies are charged for online ad space only when users...
Performance appraisal Performance appraisal is a process for evaluating and documenting how well an employee is...
Performance management Performance management is a process of continuing, in-person dialogue between an employee and...
Personal loan A personal loan (also known as a consumer loan) describes any situation in which an individual...
Personal objectives Personal objectives refer to the job-specific goals of each individual employee. They are important...
Preferred shares Preferred shares are issued to business owners and other investors as proof of the money they...
Pre-paid expenses Pre-paid expenses are intangible assets a company has already paid for and expects to benefit...
Price-earnings ratio (P/E multiple) he price-earnings ratio (also called PE multiple or P/E) helps shareholders understand what their...
Prime interest rate The prime interest rate, also known as the “prime rate,” is the interest rate commercial banks charge their...
Principal Principal is the amount of money a company borrows when it takes a loan. This amount is recorded...
Principal + Interest payments In a principal + interest loan, the principal (original amount borrowed) is divided into equal monthly...
Procurement Procurement is the activity of finding and acquiring goods and services. Its aim is to ensure a...
Product adaptation Product adaptation is the process of changing a product to meet the needs of customers in...
Promissory note A promissory note is paper evidence of a debt that a borrower owes a lender. It outlines the amount...
Public company A public company is a company whose shares trade on a stock exchange. Typically, public companies...
Purchase discounts and allowances Businesses use discounts and allowances to encourage customers to buy from them or to pay...
Quick assets Quick assets include cash on hand or current assets like accounts receivable that can be converted to...
Ratio analysis Business owners, managers and financiers use ratio analysis to understand how effectively a business...
Raw material expenses Raw material expenses refer to the cost of the components that go into a final manufactured product...
Return on common equity ratio The return on common equity ratio measures how much money common shareholders receive...
Return on investment (ROI) Return on investment (ROI) is the broadest measure of profitability used by shareholders to gauge how...
Return on shareholders’ equity ratio The return on shareholders’ equity ratio shows how much money is returned to the owners as a percentage...
Return on total assets ratio The return on total assets ratio compares a company’s total assets with the amount...
Reward and recognition Companies use rewards and recognition to motivate employees and demonstrate...
Role descriptions A role description explains the work an employee is expected to perform. It covers the activities and...
Rules of origin Rules of origin are laws, regulations and procedures that identify where an imported product originally...
Search engine A search engine is a software program that helps people find the information they are looking for online...
Search engine optimization (SEO) Search engine optimization (SEO) is the practice of using keywords and other techniques to ensure a...
Seasonal payment A seasonal payment (seasonal loan) is a loan that is repaid in keeping with a company’s seasonal...
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...
Segmentation Segmentation is the process of dividing a company’s target market into groups of potential customers...
Self-employed worker A self-employed worker is an individual hired by a company to perform a specific...
Semi-variable costs Semi-variable costs go up when sales and production increase and fall when sales and production...
Senior debt Senior debts are loans secured by collateral (assets) that must be paid off before any other debts...
Share capital The term “share capital” refers to the amount of money the owners of a company have invested...
Shareholder A shareholder is a person or institution that has invested money in a corporation in exchange for...
Shareholder injections/redemptions A shareholder injection occurs any time a company’s existing shareholders put cash into the business...
Shareholder’s equity Shareholders’ equity (or business net worth) shows how much the owners of a company have invested...
Shares authorized, issued and outstanding The term “authorized, issued and outstanding” refers to shares in a company that have been sold...
Short selling Short selling is a strategy used by stock market traders to make a profit on shares they expect will lose...
Social entrepreneur A social entrepreneur is a businessperson whose goal is to create long-term social or environmental...
Social media marketing Social media marketing is the use of social media platforms such as Facebook, LinkedIn, Twitter...
Sole proprietorship A sole proprietorship is a business with a single owner who alone is responsible for all liabilities...
Start-up A start-up is a business in the earliest stages of getting established. Companies may stay in start-up...
Statement of changes in financial position The statement of changes in financial position (sometimes called a “cash flow statement”) shows a...
Statement of retained earnings The statement of retained earnings shows the relationship between a company’s...
Stepped payment With a stepped-payment loan, a borrower’s monthly payments start low and increase gradually over...
Strategic plan A strategic plan is a document that summarizes how a company plans to operate and grow over the next...
Strategic planning Strategic planning is a process that helps a company decide what market opportunities to pursue and...
Subordinate financing Subordinated financing (junior debt) is a loan secured by collateral (assets) that are to be paid if a...
Succession planning Succession planning is a process for identifying, recruiting, training and mentoring...
Supply chain management Supply chain management refers to the ways a company controls all the steps ...
SWOT analysis A SWOT analysis breaks down a company’s strengths, weaknesses, opportunities and threats (SWOT)...
Syndicated loan A syndicated loan is a substantial loan provided to a large borrower ($1 million or more) by several...
Tangible and intangible assets Assets are everything a company owns. Tangible assets are physical; they include cash, inventory...
Target market A company’s target market is the set of customers it chooses to serve out of all the possible customers...
Tariffs A tariff is a fee on goods and services being imported into a country. It is usually imposed and collected...
Taxes payable Taxes payable are the amount of money a company owes in federal, provincial and municipal...
Technical barriers to trade A technical barrier to trade (TBT) is any regulation, standard or procedure that could make exporting...
Total quality management (TQM) Total quality management (TQM) is a management philosophy that asks...
Trade credit insurance Businesses buy trade credit insurance to protect against the risk of non-payment...
Trade mission In a trade mission, government officials and businesspeople from one country travel to another to...
Trade secret Trade secrets include any valuable business information that derives its value from secrecy...
Trademark A trademark is one or many words, sounds or designs used to distinguish the goods or services...
Trend analysis A trend analysis examines the factors that drive business success. The analysis is used to make...
Unit selling price The unit selling price is the amount a company charges for a single item of a product or use of a service...
Unsecured loan In an unsecured loan, a lender provides money to a borrower without any legal claim to the borrower’s...
Values Values are what a company stands for—the beliefs that drive its organizational behaviour and...
Variable costs Variable costs rise when sales and production go up and they fall when sales and production volumes go down...
Venture Capital Action Plan The Venture Capital Action Plan (VCAP) was created by the Government of Canada to encourage...
Viral marketing Viral marketing is an online marketing strategy that involves the creation of engaging and entertaining...
Web analytics Web analytics allow a company to collect, measure and evaluate data on visitor traffic that comes...
Wholesaler A wholesaler is a company that sources, buys or stores products and services from multiple suppliers...
Working capital Working capital is the amount of cash and other 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...
World Customs Organization (WCO) The World Customs Organization (WCO) is an international group of more than 180 customs...
World Trade Organization (WTO) The World Trade Organization (WTO) is an international body dedicated to making trade flow...