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Tools for Business Building |
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The BLACKNJ Business Glossary is a resource that enables you to define business
terms you may find in business documents and contracts. Browse through or
click alpha links to jump to any term:
Partnering: A mutually beneficial business-to-business
relationship based on trust and commitment and that enhances the capabilities
of both parties.
Partnership: A legal relationship
existing between two or more persons contractually associated as joint principals
in a business.
Patent: A patent secures to an
inventor the exclusive right to make, use and sell an invention for 17 years.
Inventors should contact the U.S. Department of Commerce Patent Office.
Payment Bond: A type of surety bond wherein the
surety company guarantees payment from the contractor to parties who furnish
labor, materials, equipment and supplies for a contract.
Performance
Bond: A type of surety bond where the surety company guarantees
the contractor will fulfill the contract in accordance with its terms.
Petty Cash: A small fund maintained for incidental
expenses.
Pollution Control Loan Program: Pollution
Control Loans are intended to provide loan guarantees to eligible small
businesses for the financing of the planning, design, or installation of
a pollution control facility. This facility must prevent, reduce, abate,
or control any form of pollution, including recycling.
Precautionary Balances: Cash held for emergencies or unexpected
outflows of funds. Also known as "contingency fund."
Preferred Lender Program (PLP): The most active and expert
lenders qualify for the SBA's streamlined lending programs. Under these
programs, lenders are delegated partial or full authority to approve loans,
which results in faster service from SBA. Preferred lenders are chosen from
among the SBA's best lenders and enjoy full delegation of lending authority
in exchange for a lower rate of guaranty.
Prequal:
The Prequalification Pilot Loan Program uses intermediaries to assist prospective
borrowers in developing viable loan application packages and securing loans.
Once the loan package is assembled, it is submitted to the SBA for expedited
consideration; a decision usually is made within three days. If the application
is approved, the SBA issues a letter of prequalification stating the SBA's
intent to guarantee the loan.
PRIME: Program
for Investment in Microentrepreneurs Act: The U.S. Small Business Administration
plans to issue Federal grants awards to qualified organizations under PRIME
to provide training and technical assistance to disadvantaged microentrepreneurs.
These organizations include: non-profit microenterprise development organizations
or programs; intermediaries; other microenterprise development organizations
or programs that are accountable to a local community, working in conjuction
with a State or local government or Indian tribe; or Indian tribes acting
on their own, with proper certification that no other qualified organization
exists within their jurisdiction.
Prime Rate: Interest
rate which is charged business borrowers having the highest credit ratings,
for short term borrowing. As published daily in the Wall Street Journal,
it is the basis for rates to other lenders.
Product Liability:
Type of tort or civil liability that applies to product manufacturers
and sellers.
Professional And Trade Associations:
Non-profit, cooperative and voluntary organizations that are designed to
help their members in dealing with problems of mutual interest. In many
instances professional and trade associations enter into an agreement with
SBA to provide volunteer counseling to the small business community.
Proprietorship: The most common legal form of business
ownership; about 85 percent of all small businesses are proprietorships.
The liability of the owner is unlimited in this form of ownership.
Protest: A statement in writing by any bidder or offeror
on a particular procurement alleging that another bidder or offeror on such
procurement is not a small business concern.
Quick Ratio: Current assets less inventories divided by
current liabilities. Also called "acid ratio." Ratio: Denotes
relationships of items within and between financial statements, e.g., current
ratio, quick ratio, inventory turnover ratio and debt/net worth ratios.
Receivable Conversion Period (RCP): Time btween the sale
of the final product on credit and cash rescipts for the accounts payable.
Regulatory Flexibility Act (RFA): The Regulatory Flexibility
Act (5 U.S.C. 601-612) requires federal agencies to consider the effects
of their regulatory actions on small businesses and other small entities
and to minimize any undue disproportionate burden. The chief counsel for
advocacy of the U.S. Small Business Administration is charged with monitoring
federal agencies' compliance with the act and with submitting an annual
report to Congress.
Request For Proposal (RFP): A solicitation issued by the
government to prospective offerors. An RFP describes what the government
requires and how the offerors will be evaluated. Negotiations may be conducted
with offers. Award is based on a combination of lowest price and technical
merit.
Request For Proposals: Solicitations for offerings for
competitive negotiated procurements when it is impossible to draft an invitation
for bids containing adequate detailed description of the required property
and services. There are 15 circumstances in the Federal Acquisition Regulations
(FAR) which permit negotiated procurements.
Request For Quotation (RFQ): A request for market information
by the government, used for planning purposes.
Return On Investment: The amount of profit (return) based on the
amount of resources (funds) used to produce it. Also, the ability of a given
investment to earn a return for its use.
Revolving Credit Account: A formal line of credit offered
to larger businesses in exchange for up-front fees and standard interest
payments.
RFP (Request For Proposal): A solicitation issued by the government
to prospective offerors. An RFP describes what the government requires and
how the offerors will be evaluated. Negotiations may be conducted with offers.
Award is based on a combination of lowest price and technical merit.
RFQ (Request For Quotation): A request for market information
by the government, used for planning purposes.
SBA (Small Business Administration): An independent agency of the
federal government and not to be confused with Small Business Association
or variations thereof. The U.S. Small Business Administration (SBA) was
created by Congress in 1953 to help America's entrepreneurs form successful
small enterprises.
SBA Loan: The SBA enables its lending partners to provide
financing to small businesses when funding is otherwise unavailable on reasonable
terms by guaranteeing major portions of loans made to small businesses.
SBAExpress: The SBAExpress - Makes it easier and faster
for lenders to provide small business loans of $150,000 or less; allows
lenders to use their own forms and processes to approve loans guaranteed
by the U.S. Small Business Administration; provides a rapid response from
the SBA - within 36 hours of receiving your complete application; lets lenders
take advantage of electronic loan processing; and helps lenders provide
smaller revolving loans.
SBIR Contract (Small Business Innovative Research Contract): A
type of contract designed to foster technological innovation by small businesses
with 500 or fewer employees. The SBIR contract program provides for a three-phased
approach to research and development projects: technological feasibility
and concept development; the primary research effort; and the conversion
of the technology to a commercial application.
SCORE: A volunteer association sponsored by the SBA. SCORE
matches volunteer business-management counselors with present prospective
small business owners in need of expert advice.
Secondary Market: Entities who purchase an interest in
a loan from an original lender, such as banks, institutional investors,
insurance companies, credit unioins and pension funds.
Selling a Business: Selling a business is different than selling
any other asset because a business is more than an income-earning asset
-- it is a life-style as well. Therefore, the decision to sell can be emotional.
Personal ambitions should be weighed against economic consequences in reaching
a decision.
Service Mark: A word, name, symbol or device used to identify
and distinguish a business that provides services rather than goods. Like
a trademark, it can be registered.
Shareware: Free or evaluation computer software.
Short Term: Period usually one year or less.
Signage: Effective signage is a critical component of your
retail business' success, and can contribute to the success of all businesses.
To provide in depth information about signage and your business, we have
divided signage information into categories in our Signage web area.
Simple Interest Rate Loan: One which provides the borrower
the face value of the loan; the borrower repays the principal plus interest
at maturity.
Size Standards: The term "size standard" describes
the numerical definition of a small business. In other words, a business
is considered "small" if it meets or is below an established "size
standard."
Small Business: A business smaller than a given size as
measured by its employment, business receipts, or business assets.
Small Business Development Center (SBDC): The SBDC is a
center for the delivery of joint government, academic and private sector
services for the benefit of small business and the national welfare. It
is committed to the development and productivity of business and the economy
in specific geographical regions.
Small Business Innovation Research (SBIR) Contract: A type
of contract designed to foster technological innovation by small businesses
with 500 or fewer employees. The SBIR contract program provides for a three-phased
approach to research and development projects: technological feasibility
and concept development; the primary research effort; and the conversion
of the technology to a commercial application.
Small Business Investment Company (SBIC): SBICs, licensed
by the Small Business Administration, are privately owned and managed investment
firms. They are participants in a vital partnership between government and
the private sector economy. With their own capital and with funds borrowed
at favorable rates through the Federal Government, SBICs provide venture
capital to small independent businesses, both new and already established.
Small Business Technology Transfer Program (STTR): STTR
is an important new small business program that expands funding opportunities
in the federal innovation research and development arena. Central to the
program is expansion of the public/private sector partnership to include
the joint venture opportunities for small business and the nation's premier
nonprofit research institutions. STTR's most important role is to foster
the innovation necessary to meet the nation's scientific and technological
challenges in the 21st century.
Small Disadvantaged Business (SDB): SBA certifies SDBs
to make them eligible for special bidding benefits. SDBs are at least 51
percent owned by one or more individuals who are both socially and economically
disadvantaged. This can include a publicly owned business that has at least
51 percent of its stock unconditionally owned by one or more socially and
economically disadvantaged individuals and whose management and daily business
is controlled by one or more such individuals.
Solvency: The financial ability to continue business.
SOPS: Standard Operating Procedures.
Speculative Cash Balances: Cash necessary to take advantage
of special opportunities.
Standard Industrial Classification (SIC) Code: A code representing
a category within the Standard Industrial Classification System administered
by the Statistical Policy Division of the U.S. Office of Management and
Budget. The system was established to classify all industries in the US
economy. A two-digit code designates each major industry group, which is
coupled with a second two-digit code representing subcategories.
Subcontract: A contract between a prime contractor and
a subcontractor to furnish supplies or services for the performance of a
prime contract or subcontract.
Surety Bond: A three-way agreement between a surety company,
a contractor and the project owner. If the contractor fails to comply with
the contract, the surety assumes responsibility and ensures that the project
is completed.
Taxes: The contribution required of persons, groups, or
businesses within a governmental jurisdiction for the support of governmental
programs. Tech-Net: Tech-Net is an electronic gateway of technology information
and resources for and about small high tech businesses. It is a search engine
for researchers, scientists, state, federal and local government officials,
a marketing tool for small firms and a potential "link" to investment
opportunities for investors and other sources of capital.
Trade Name: The term used to identify a company. Any type
of business may call itself a company.
Trademark: Words, names, symbols or devises, or any combination
of these, used to identify the goods of a business and to distinguish these
goods from the goods of others.
Transaction Balances: Cash held to cover day-to-day transactions.
Treasury Bills (T-Bills): Short term obligations of the
U.S. government.
True Lease: A type of transaction that qualifies as a lease
under the Internal Revenue Code. It allows the lessor to claim ownership
and the lessee to claim rental payments as tax deductions.
Turnover: Turnover is the number of times that an average
inventory of goods is sold during a fiscal year or some designated period.
Care must be taken to ensure that the average inventory and net sales are
both reduced to the same denominator; that is, divide inventory at cost
into sales at cost into sales at cost or divide inventory at selling price
into sales at selling price. The turnover when accurately computed, is one
measure of the efficiency of a business.
U.S. Export Assistance Centers (USEACS): USEACs offer a
full range of federal export programs and services from a number of federal
agencies under one roof. Find your closest USEAC at SBA's International
Trade website.
Undelivered Orders: The amount of orders for goods and
services outstanding for which, the liability has not yet accrued. For practical
puproses represents obligations incurred for which goods have not been delivered
or services not performed.
Unfair Labor Practice: Action by either the employer or the union
which violates the provisions of Executive Order 11491 as amended.
Uniform Commercial Code: Codification of uniform laws concerning
commercial transactions. In SBA parlance generally refers to a uniform method
of recording and enforcing a security interest or charge upon existing or
to be acquired personal property.
Usury: Interest which exceeds the legal rate charged to
a borrower for the use of money.
Variable Costs: Those costs of doing business such
as cost of goods, shipping, handling and storage, sales commissions, etc.,
which are directly related to the sales of goods or services.
Vendor Identification Program (VIP): The Vendor Identification
Program (VIP) assists small businesses by identifying government purchasers
for the items they produce for large defense contractors.
Venture Capital (VC): Money used to support new or unusual
commercial undertakings; equity, risk or speculative capital. This funding
is provided to new or existing firms that exhibit above-average growth rates,
a significant potential for market expansion and the need for additional
financing for business maintenance or expansion.
Very Small Business Program (VSB): The Very Small Business
(VSB) program is an extension of the small business set-aside program, administered
by SBA as a pilot to increase opportunities for VSB concerns. Procurement
requirements, including construction requirements, estimated to be between
$2,500 and $50,000 must be reserved for eligible VSB concerns in designated
pilot SBA districts.
Workers' Compensation: A state-mandated form of insurance
covering workers injured in job-related accidents. In some states the state
is the insurer; in other states insurance must be acquired from commercial
insurance firms. Insurance rates are based on a number of factors including
salaries, firm history and risk of occupation.
Working Capital: Cash and short-term assets that can be
used for current needs -- bills, etc.
Zip: files compressed for web downloading or archiving.
A common utility is needed to uncompress/decompress the zipped files.
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| DISCLAIMER:
The information provided in the BLACKNJ Business Center is not a substitute for legal and other professional advice where the facts and circumstances warrant. If any user in Customer's organization requires legal advice or other professional assistance, each such user should always consult his or her own legal or other professional advisors and discuss the facts and circumstances that apply to the user. We recommend you consult a lawyer or professional in the subject matter if you want professional assurance that our information, and your interpretation of it, is appropriate to your particular situation. The materials (including all software) and services at this site are provided "as is" without warranties of any kind including warranties of merchantability, accuracy, completeness, fitness for a particular purpose, or non-infringement of intellectual property. You must indemnify and defend BLACKNJ against any claims or lawsuits, including attorneys' fees, that arise from or result from the use or distribution of the templates as modified by you. |
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| © 2005 BLACKNJ, Inc. All Rights Reserved |
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