Download 4.04 KEY TERMS Advertising: A non-personal promotional message

4.04 KEY TERMS
1. Advertising: A non-personal promotional message paid for by an identified sponsor
utilizing media such as television, radio, magazines, newspapers, billboards, and direct mail
2. Financial plan: provides projected financial statements
3. Loss: More money going out than coming in
4. Net profit: amount of money that remains when expenses are paid
5. Opportunity cost: When resources are limited, the option that is given up when a consumer
chooses one product/service over another
6. Personal selling: a form of promotion that uses planned, personalized communication in
order to influence customer buying decisions and ensure satisfaction
7. Promotion: Any form of communication a business or organization uses to inform,
persuade, or remind consumers about its products/services
8. Public relations: Any activity designed to create a favorable image toward a business, its
products, or its policies
9. Visual merchandising/display: Coordination of the physical elements of a business or a
product to project the desired image to the consumer
10. Vender: supplier of goods or services to a business
4.05 KEY TERMS
1. Collateral: Evidence of the ability to repay debt
2. Economic outlook: Trends associated with the economy that can impact your business’s
sales
3. Forecast: A look into the future to determine, sales, staffing, and other unknowns
4. Nonprofit corporation: Legal entities that make money for reasons other than the
owner’s profit
5. Policy: Guiding principle, rules or strategy
6. Portfolio: A collection of documents, photographs, and work samples which is used to
demonstrate to potential employers an individual’s skills, knowledge, abilities, and
professional growth in order to obtain a job
7. Sales projection: Forecast of future sales
8. Short-term loan: Borrowed money that must be repaid within one year
9. Start-Up cost: One-time expenses an entrepreneur incurs when starting a business (for
example, the initial inventory and consultations with lawyers)
10. Variable costs: Expenses that may change from month to month depending on the needs
of the business; costs that increase and decrease with the quantity of the good or service
produced/sold (for example, ingredients and advertising)