Balance Sheet

A balance sheet is what accountants call a financial Statement. Many accountants will assert that it is the most important of the various kinds of “statements’’ that they prepare. However, there’s much uncertainty as to just how one arrives at the dollar figures that are assigned to the various assets. This could mean that not only are the individual asset valuations unacceptable to certain users of the statements but so also is the amount that we labeled “ net worth’’ (Since it was found by subtracting the liability total from the asset total as listed.)

In spite of disagreement on the matter of the dollar valuations (e.g., is our house worth $160,000 Exactly or approximately) the balance sheet is considered to be a statement of the “financial position” of the enterprise (or of the person or any other “entity” depicted) on the date noted in the heading of the statement. It goes without saying that the dollar measures that are assigned to the various assets must all be “as of” the same date; otherwise, we would have a mishmash and the total would have no meaning.

Balance Sheet Gearing

Balance Sheet Gearing is the ratio of interest-bearing debt to equity.

Balanced scorecard

is a performance measurement system that, in addition to financial measures, quantifies items that had previously been considered as Intangible assets, such as brand image, customers, reputation, Human capital, Information, Innovation, and Corporate culture. See also: Customer relationship management, Intellectual property.

Banker’s acceptance

A short-term credit investment created by a non-financial firm and guaranteed by a bank as to payment. Acceptances are traded at discounts to face value in the secondary market. These instruments have been a popular investment for money market funds. They are commonly used in international transactions.


is a continuous, systematic process for evaluating and comparing an organization’s activities, products, services, and work processes with those of organizations that are recognized as representing best practices for the purposes of performance improvement. A secondary purpose is to reveal useful practices or ideas that may be adopted or adapted with advantage.


A term used to indicate an advantage, profit, or gain attained by an individual or organization.

Break Even Analysis

Break-Even Analysis is an analysis method used to determine the number of jobs or products that need to be sold to reach a break-even point in a business.

Break Even Point

Break-Even Point is the volume point at which revenues and costs are equal; a combination of sales and costs that will yield a no profit/no loss operation.


This is a term used to describe a point at which cost or expenses and income are equal.

Break-even Analysis

Break-even analysis is the calculation of the sales needed to cover costs. Break-even analysis provides the owner with information necessary to determine whether a proposed new product or service can reasonably be expected to become profitable.


A more detailed breakdown of resources (required to either sustain a business or implement a particular initiative.

Budgeting Cycle

The cycle or integrated process of planning, Budgeting for the plan, reporting on the results and analysis of the results which in its turn feeds the tuned plan. (corrective steering) More general approaches can be implemented with the aid of BI products supporting not only budgeting and Actuals Reporting; but also Long Range Plan, Annual Plan, needed resources, performance standards, compare actuals with annual plan, compare results with the long range plan and assist analysis for tuning the Lang Range Plan. This is mostly implemented in a single closed-loop BI-Product.


The preparing and allocation of the available resources in order to implement the objectives based on a strategic plan. This goes far beyond the mere control of costs.

Business Angels

Informal investors, private individuals who in addition to providing capital, offer their expertise on business development for start-ups and growing enterprises.

Business environment

Encompasses all those factors that affect a company’s operations; and includes customers, competitors, stakeholders, suppliers, industry trends, regulations, other government activities, social and economic factors, and technological developments. Also known as Operating environment.

Business intelligence (BI)

is any combination of Data, Information, and Knowledge concerning the Business environment in which a company operates that, when acted upon, will confer a significant Competitive advantage or enable sound decisions to be made. Thus, for practitioners, the term encompasses both Competitive intelligence and Knowledge management. Involvement in business intelligence operations will enable the organization to, inter alia:

* anticipate and manage risk;
* seek Opportunities and new markets;
* take action before competitors;
* Innovate;
* exploit competitors’ weaknesses;
* improve Planning and decision-making.

The term is also widely accepted as being concerned with Information technology solutions for transforming the output from large Data collections into so-called Intelligence; usually through the integration of sales, marketing, servicing, and support activities. Also loosely referred to as Customer relationship management, it covers such activities as Data mining and Enterprise reporting, and the associated software. Those involved in this form of business intelligence tend to regard it as simply one aspect of Knowledge management. Systems based on such software have replaced the term Executive information systems.

Business Objectives

Strategic goals and objectives of a business organization.

Business plan

A Business plan gives a detailed study of the current and anticipated future activities of an enterprise, and of all the factors (such as marketing, development and production, and financial aspects) that will have a bearing on those activities. Since it is also the normal mechanism for attracting investment, it should provide potential investors with the Information they need in order to evaluate the risks and the potential Returns on Investment (RoI).

Business process management (BPM)

The term Business Process Management (or BPM) refers to a set of activities which organizations can perform to either optimize their business processes or adapt them to new organizational needs. As these activities are usually aided by software tools, the term BPM is synonymously used to refer to the software tools themselves.

Business process outsourcing (BPO)

Business process outsourcing is the leveraging of technology vendors to provide and manage a company’s critical and/or non-critical enterprise applications. BPO covers three broad areas of activity: sales, marketing, and customer care; administration and finance; operations processes (which may include materials management, procurement, distribution, or manufacturing). BPO may be partial (management or operation only) or complete (management, operation, and ownership). Business process outsourcing can use off-shore resources, but is not required.

Business risk

The risk that the cash flow of an issuer will be impaired because of adverse economic conditions, making it difficult for the issuer to meet its operating expenses.