Tag: Definition

What Is Business Math? Real Estate Definition #incorporating #a #business

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What You Need to Know About Business Math

By Deb Russell. Mathematics Expert

What is Business Math?
Put quite simply, Business Math deals with Money! Who can t benefit from having a better understanding of money and finance? Everyone can! Business math is for the individual who wants to fully understand everything about personal finance and it s also for the business person who wants to learn about business finance. You simply can t take business without taking math, business and math go hand in hand.

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Some passionate business math enthusiasts will tell you, if you don t take any other math or if you don t like math, you still need business math and because it deals with money, you might just like it. Everyone needs to manage money on some level which is what makes business math important for everyone to take.

What Math Do I Need to Take Business Math?
If you decide that business math is for you or that you need business math for your career goal, you will benefit from having an understanding of the following topics along with the ability to solve word problems:
-Fractions, Decimals and Percents (use the four operations with fractions, convert between fractions and decimals and percents, calculate percents of a number with and without a calculator, convert and simplify fractions, reduce and convert fractions
-Whole Numbers (to a million, read, write, round and estimate numbers) and Integers (understand how to use the four operations with integers
-Basic Equations in Early Algebra (solve equations involving more than 1 unknown term, solve proportions, solve equations using more than one operation, use the problem solving plan
-Be Able to Use a Variety of Formulas
-Understand and Work with the Mean, Median and the Mode
-Read Charts and Graphs

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In Summary
Business math is not just for the business owner or for personal finance. Business math is also important for the real estate profession, they need to know how to financially close a deal, and to understand mortgages, calculate commission rates, taxes and fees and use a variety of formulas effectively. Wealth managers and advisers, bankers, investment consultants, stock brokers, accountants and tax consultants all need to understand the financial transactions for investment purposes along with having an understanding about growth or loss over time. Business owners need to understand payroll applications and deductions. Then there s goods and services. Whether it s buying or selling, an understanding of discounts, markups, overhead, profits, revenues and costs are all an essential components of the math needed to manage inventory whether it be goods and services or property, which also needs to be financially managed.

Having a background in math opens opportunities and the job prospects are promising. Now is the time to embark on business math.

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What is business process outsourcing (BPO)? Definition from #harvard #business #publishing

#business process outsourcing

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business process outsourcing (BPO)

Business process outsourcing (BPO) is the contracting of a specific business task. such as payroll, human resources (HR) or accounting, to a third-party service provider. Usually, BPO is implemented as a cost-saving measure for tasks that a company requires but does not depend upon to maintain their position in the marketplace.

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BPO services

Two categories BPO is often divided into are back office outsourcing. which includes internal business functions such as billing or purchasing, and front office outsourcing, which includes customer-related services such as marketing or tech support.

Back office outsourcing offers organizations services to help manage tasks like data entry. data management. surveys, payment processing, quality assurance and accounting support. Back office tasks are integral to a company’s core business process and help keep business running smoothly.

Front office outsourcing services deal with customer interactions. Examples of front office tasks include phone conversations, email. fax and other forms of communication with customers. Front office outsourcing providers’ service lists include:

Outsourcing options

BPO that is contracted outside a company’s own country is sometimes called offshore outsourcing. BPO that is contracted to a company’s neighboring country is sometimes called nearshore outsourcing. and BPO that is contracted with the company’s own county is sometimes called onshore outsourcing .

Pros and cons of BPO

The top advantages of BPO are saved money and increased time to focus on the core business. Some other benefits include:

  • Speed and efficiencies of outsourced business processes are enhanced
  • Organizations using BPO get access to the latest technology
  • Freedom and flexibility to choose the most relevant services for the company’s operations
  • Quick and accurate reporting
  • Save on resources related to staffing and training

Some disadvantages of outsourcing business processes include:

This was last updated in May 2016

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Related Terms

data collection Data collection is a process for gathering information from different sources. In business, data collection helps organizations. See complete definition e-procurement (supplier exchange) E-procurement is the business-to-business purchase and sale of supplies and services over the Internet. See complete definition workflow Workflow is the series of activities that are necessary to complete a task. See complete definition

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Business Model Definition #register #business

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Business Model

What is a ‘Business Model’

A business model is the way in which a company generates revenue and makes a profit from company operations. Analysts use the metric gross profit as a way to compare the efficiency and effectiveness of a firm’s business model. Gross profit is calculated by subtracting the cost of goods sold from revenues .

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BREAKING DOWN ‘Business Model’

During the dotcom boom analysts went in search of net income. The internet is a disruptive technology with the ability to revolutionize certain industries, but where was the cash flow? When analysts couldn’t find the cash flow, they settled for the business model to legitimize the industry. Instead of looking at net income, calculated as gross profit minus operating expenses, analysts concentrated on gross profit. If the gross profit was high enough, analysts theorized, the cash flow would come.

Business Model Components

The two primary levers of a company’s business model are pricing and costs. A company can raise prices and it can find inventory at reduced costs. Both actions increase gross profit. Gross profit is often considered the first line of profitability because it only considers costs, not expenses. It focuses strictly on the way in which a company does business, not the efficiency of management. Investors that focus on business models are leaving room for an ineffective management team. They believe the best business models can run themselves.

Comparing Business Models

As an example, assume there are two companies and both companies rent movies. Prior to the internet, both companies made $5 million in revenues and the total cost of inventory sold was $4 million. Gross profit is calculated as $5 million minus $4 million, or $1 million. Gross profit margin is calculated as gross profit divided by revenues, or 20%.

After the advent of the internet, company B decides to offer movies online instead of renting or selling a physical copy. This change disrupts the business model in a positive way. The licensing fees do not change, but the cost of holding inventory is down considerably. In fact, the change reduces storage and distribution costs by $2 million. The new gross profit for the company is $5 million minus $2 million, or $3 million. The new gross profit margin is 60%, which is much higher than 20%.

Company B isn’t making more in sales, but it figured out a way to revolutionize its business model, which greatly reduces costs. Managers at company B have an additional 40% more in margin to play with than managers at company A. Managers at company A have little room for error.





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What is e-business (electronic business)? Definition from #business #plan #samples

#e business

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e-business (electronic business)

E-business (electronic business) is the conduct of business processes on the Internet. These electronic business processes include buying and selling products, supplies and services; servicing customers; processing payments; managing production control; collaborating with business partners ; sharing information; running automated employee services; recruiting; and more.

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Business To Business (B To B) Definition #china #business

#business to business

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Business To Business – B To B

What does ‘Business To Business – B To B’ mean

Business to business, also called B to B or B2B, is a type of transaction that exists between businesses, such as one involving a manufacturer and wholesaler, or a wholesaler and a retailer. Business to business refers to business that is conducted between companies, rather than between a company and individual consumers. Business to business stands in contrast to business to consumer (B2C) and business to government (B2G) transactions.

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BREAKING DOWN ‘Business To Business – B To B’

A typical supply chain involves multiple business to business transactions, as companies purchase components and products such as other raw materials for use in the manufacturing processes. Finished products can then be sold to individuals via business to consumer transactions. In the context of communication, business to business refers to methods by which employees from different companies can connect with one another, such as through social media. This type of communication between the employees of two or more companies is called B2B communication.

B2B Relationship Development

Business to business transactions require planning to be successful. Such transactions rely on a company’s account management personnel to establish business client relationships. Business to business relationships also must be nurtured, typically through professional interactions prior to sales, for successful transactions to take place. Traditional marketing practices also help businesses connect with business clients. Trade publications aid in this effort, offering businesses opportunities to advertise in print and online. A business’s presence at conferences and trade shows also builds awareness of the products and services it provides to other businesses.

B2B E-Commerce

The internet provides a robust environment in which businesses can find out about products and services and lay the groundwork for future business to business transactions. Company websites allow interested parties to learn about a business’s products and services and initiate contact. Online product and supply exchange websites allow businesses to search for products and services and initiate procurement through e-procurement interfaces. Specialized online directories providing information about particular industries, companies and the products and services they provide also facilitate business to business transactions.

B2B Examples

Business to business transactions are the backbone of the automobile industry. Many vehicle components are manufactured independently and auto manufacturers purchase these parts to assemble automobiles. Tires, batteries, electronics, hoses and door locks, for example, usually are manufactured by various companies and sold directly to automobile manufacturers. Service providers also engage in business to business transactions. Companies specializing in property management, housekeeping and industrial cleanup, for example, often sell these services exclusively to other businesses, rather than individual consumers.





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What is business continuity management (BCM)? Definition from #weekend #business #ideas

#business continuity

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business continuity management (BCM)

Business continuity management (BCM) is a framework for identifying an organization’s risk of exposure to internal and external threats.

The goal of BCM is to provide the organization with the ability to effectively respond to threats such as natural disasters or data breaches and protect the business interests of the organization. BCM includes disaster recovery. business recovery, crisis management, incident management, emergency management and contingency planning .

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According to ISO 22301. a business continuity management system emphasizes the importance of:

  • Understanding continuity and preparedness needs, as well as the necessity for establishing business continuity management policy and objectives.
  • Implementing and operating controls and measures for managing an organization’s overall continuity risks.
  • Monitoring and reviewing the performance and effectiveness of the business continuity management system.
  • Continual improvement based on objective measurements.




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Current Price Definition #on #line #business

#current stock market

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Current Price

What does ‘Current Price’ mean

The current price is the actual selling price of a security trading on an exchange, as well as the most recent price of a security listed in an investment portfolio. In the case of a bond, a bond’s current price will often be quoted as 10% of the par value of $1000. A bond that currently trades at $99 is really priced at $990. Current price also refers to the present price of a stock, currency, commodity, stamps or a precious metal.

BREAKING DOWN ‘Current Price’

Also known as the market value. the current price is the price at which goods are currently being sold in the market. Similar to market price. which is the price determined by buyers and sellers in an open market. the current price of a security is the price at which a security last traded. In that regard, the current price can function as a baseline when estimating the price a buyer would be willing to pay and the seller would be will to accept for a subsequent transaction involving the purchase and sale of the same security.

Current Price on Stock Exchanges

On a stock exchange, the current price of a security is determined by the last amount that was paid by an investor during a trade. The current price does not dictate the next sale price as changes to the supply and demand associated with the security will shift prices accordingly.

Often, the current price can be used as an indicator to approximate what would be considered a fair price in the open market, but this is not a guarantee that any subsequent transactions will be completed at that price.

Current Price in Over-the-Counter Trades

When a security is listed over the counter instead of on an exchange, the current price is based on the current bid price listed by buyers and the current ask price listed by sellers. Considered dynamic in nature, the current price fluctuates based on the principles of supply and demand.

Current Price in the Bond Market

A bond’s current price is determined by comparing the current interest rate to the interest rate associated with the bind. The face value is then adjusted based on the remaining interest payments due until the bond reaches maturity. The closer a bond is to maturity, the closer the current price will be to the face value listed on the bond.

Current Price in Retail Environment

Within a retail environment, the current price reflects the amount actively being charged to customers at that moment. This can be separate from the retail price, such as where an item is on sale, and can fluctuate depending on the store from which the item is purchased.





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Definition of Stock Market – The Economic Times #financing #a #new #business

#stock markets

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Definition of ‘Stock Market’

Definition: It is a place where shares of pubic listed companies are traded. The primary market is where companies float shares to the general public in an initial public offering (IPO) to raise capital.

Description: Once new securities have been sold in the primary market, they are traded in the secondary market—where one investor buys shares from another investor at the prevailing market price or at whatever price both the buyer and seller agree upon. The secondary market or the stock exchanges are regulated by the regulatory authority. In India, the secondary and primary markets are governed by the Security and Exchange Board of India (SEBI).

A stock exchange facilitates stock brokers to trade company stocks and other securities. A stock may be bought or sold only if it is listed on an exchange. Thus, it is the meeting place of the stock buyers and sellers. India’s premier stock exchanges are the Bombay Stock Exchange and the National Stock Exchange.

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What is business analytics (BA)? Definition from #business #journal

#business analytics

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business analytics (BA)

Business analytics (BA) is the practice of iterative. methodical exploration of an organization’s data with emphasis on statistical analysis. Business analytics is used by companies committed to data-driven decision making.

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BA is used to gain insights that inform business decisions and can be used to automate and optimize business processes. Data-driven companies treat their data as a corporate asset and leverage it for competitive advantage. Successful business analytics depends on data quality. skilled analysts who understand the technologies and the business and an organizational commitment to data-driven decision making.

Examples of BA uses include:

  • Exploring data to find new patterns and relationships (data mining )
  • Explaining why a certain result occurred (statistical analysis, quantitative analysis)
  • Experimenting to test previous decisions (A/B testing, multivariate testing)
  • Forecasting future results (predictive modeling. predictive analytics )

Once the business goal of the analysis is determined, an analysis methodology is selected and data is acquired to support the analysis. Data acquisition often involves extraction from one or more business systems, cleansing, and integration into a single repository such as a data warehouse or data mart. The analysis is typically performed against a smaller sample set of data. Analytic tools range from spreadsheets with statistical functions to complex data mining and predictive modeling applications. As patterns and relationships in the data are uncovered, new questions are asked and the analytic process iterates until the business goal is met. Deployment of predictive models involves scoring data records (typically in a database) and using the scores to optimize real-time decisions within applications and business processes. BA also supports tactical decision making in response to unforeseen events, and in many cases the decision making is automated to support real-time responses.

While the terms business intelligence and business analytics are often used interchangeably, there are some key differences:

Answers the questions:

Why did it happen?

Will it happen again?

What will happen if we change x ?

What else does the data tell us that never thought to ask?

Reporting (KPIs, metrics)

Automated Monitoring/Alerting (thresholds)

OLAP (Cubes, Slice Dice, Drilling)

Recognizing the growing popularity of business analytics, business intelligence application vendors are including some BA functionality in their products. More recently, data warehouse appliance vendors have started to embed BA functionality within the appliance. Major enterprise system vendors are also embedding analytics, and the trend towards putting more analytics into memory is expected to shorten the time between a business event and decision/response.

This was last updated in August 2010

Next Steps

Expert Wayne Kernochan provides an overview of the different types of business intelligence analytics tools on the market.

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Related Terms

data science Data science is the study of where information comes from, what it represents and how it can be turned into a valuable resource. See complete definition metadata management Metadata management is the oversight of data associated with data assets to ensure that information can be integrated, accessed. See complete definition process intelligence (business process intelligence) Process intelligence is data that has been systematically collected to analyze the individual steps within a business process or. See complete definition

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Turnkey Business Definition #small #business #administration

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Turnkey Business

What is a ‘Turnkey Business’

A turnkey business is a business that is ready to use, existing in a condition that allows for immediate operation. The term “turnkey” is based on the concept of only needing to the turn the key to unlock the doors to begin operations. To be fully considered turnkey, the business must function correctly and at full capacity from when it is initially received.

BREAKING DOWN ‘Turnkey Business’

A turnkey business is an arrangement where the provider assumes responsibility for all required setup and ultimately provides the business to the new operator only upon completion of the aforementioned requirements. A turnkey business often already has a proven, successful business model and merely requires investment capital and labor.

Turnkey Business and Franchises

Often used in franchising, a firm’s high-level management plans and executes all business strategies to ensure that individuals can buy a franchise or business and start operating immediately. Most franchises are built within a specific pre-existing framework, with predetermined supply lines for the goods required to begin operations. Franchises may not have to participate in advertising decisions, as those may be governed by a larger corporate body.

The advantage of purchasing a franchise is that the business model is generally considered to be proven, resulting in a lower overall failure rate. Some corporate entities ensure that no other franchise is set up within the territory of an existing franchise, limiting internal competition.

The disadvantage of a franchise is that the nature of the operations may be highly restrictive. A franchisee may be subject to contractual obligations, such as items that can or cannot be offered, or where supplies may be purchased.

Direct Sales and Multi-Level Marketing

Direct sales and multi-level marketing (MLM) businesses, such as Mary Kay, can also be seen as turnkey businesses based on how little it takes to have them up and running. Often, a person only needs to sign up with the particular service as a consultant and pay fees for the inventory required to perform the work. A consultant is not an employee of the company; instead, the consultant functions as an independent entity. Profits are made based on the difference between the supply costs and the price at which the items are ultimately sold.

Other Turnkey Businesses

Aside from franchises, any existing business that’s already up and running successfully or a new business whose doors are ready to be opened could be considered a turnkey business. In these cases, if the business has a proven track record, the risk may be lower compared to starting a new business from scratch, and it may also provide more control over business decisions than a franchise model.

However, it may be challenging to get an accurate valuation before the business is purchased, as well as information about why the business is for sale. There are no preset methods for increasing the likelihood of success in cases where the current performance of the business is lacking in some way.





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