Business Terms Glossary

What Are Assets?

Assets are property that a business owns, including cash and receivables, inventory, and so on. Assets are any possessions that have value in an exchange. The more formal definition is the entire property of a person, association, corporation, or estate applicable or subject to the payment of debts. What most people understand as business assets...

What Is an Asset Turnover?

Asset turnover is sales divided by total assets. Important for comparison over time and to other companies of the same industry. This is a standard business ratio.  

What Is an Agent?

An agent is a business entity that negotiates, purchases, and/or sells, but does not take title to the goods. Check out our latest articles on law and taxes for more information on the legal side of setting up and managing your business.

What Is Adventure Capital?

Adventure capital is capital needed in the earliest stages of the venture’s creation before the product or service is available to be provided. If you’re considering your funding options, our funding guide is a great place to start.

What Is an Adaptive Firm?

An adaptive firm is an organization that is able to respond to and address changes in their market, their environment, and/or their industry to better position themselves for survival and profitability. To be adaptive, it’s smart to look at your business critically—and a tool like a SWOT analysis can be helpful here. Check out our...

What Are Acquisition Costs?

Acquisition costs are the incremental costs involved in obtaining a new customer. To learn more about what metrics to track within your business, check out The 7 Key Metrics Every Business Owner Should Monitor.

What Is an Acid Test?

An acid test is a business’s short-term assets minus accounts receivable and inventory, divided by short-term liabilities. This is a test of a company’s ability to meet its immediate cash requirements. It is one of the more common business ratios used by financial analysts. To learn more about how to manage your cash, check out...

What Is Accumulated Depreciation?

Total accumulated depreciation reduces the formal accounting value (called book value) of assets. Each month’s accumulated balance is the same as last month’s balance plus this month’s depreciation. Be sure to read up on depreciation, and check out the entry on EBITDA (earnings before interest, taxes, depreciation, and amortization) as well.

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