Return on Investment

Infrastructure

Relatively permanent and foundational capital investment of a country, firm, or project that underlies and makes possible all its economic activity. It includes administrative, telecommunications, transportation, utilities, and waste removal and processing facilities.

Business Processes

A collection of linked tasks which find their end in the delivery of a service or product to a client. A business process has also been defined as a set of activities and tasks that, once completed, will accomplish an organizational goal.

Business Performance

A combination of management and analytic processes that allows managers of an organization to achieve pre-determined goals.

Management Information Systems

A field of study that deals with effective systems for the development and use of information in an organization. The complete information system includes not just computers but also the people who use this information.

Profit

A financial gain, especially the difference between the amount earned and the amount spent in buying, operating, or producing something.

Corporation

A legal entity that is separate and distinct from its owners. Corporations enjoy most of the rights and responsibilities that an individual possesses; that is, a corporation has the right to enter into contracts, loan and borrow money, sue and be sued, hire employees, own assets and pay taxes. The most important aspect of a corporation is limited liability. That is, shareholders have the right to participate in the profits, through dividends and/or the appreciation of stock, but are not held personally liable for the company's debts.

Paradigm

A pattern or example. In business it is a framework of behaviors or set of rules action governing people's actions and assumptions.

Bottleneck

A phenomenon where the performance or capacity of an entire system is limited by a single or limited number of components or resources.

Franchise

A privilege granted to make or market a good or service under a patented process or trademarked name. A business operating under such privilege.

Partnership

A type of business organization in which two or more individuals pool money, skills, and other resources, and share profit and loss in accordance with terms of the partnership agreement.

Non Profit Organization

A type of organization that focuses on providing services, but not to make profit.

Business

An organization or economic system where goods and services are exchanged for one another or for money. Every business requires some form of investment and enough customers to whom its output can be sold on a consistent basis in order to make a profit.

Board of Directors

Governing body (called the board) of an incorporated firm. Its members (directors) are elected normally by the subscribers (stockholders) of the firm (generally at an annual general meeting or AGM) to govern the firm and look after the subscriber's' interests.

Limited Liability

Holds a firm's owners responsible for no more than the capital that they have invested in it.

Cooperative

Is an organization that is owned and operated by its members.

Return on Investment

Is usually expressed as a percentage and is typically used for personal financial decisions, to compare a company's profitability or to compare the efficiency of different investments. The return on investment formula is: ROI = (Net Profit / Cost of Investment) x 100.

Unlimited Liability

Means the owner is responsible for the company's debt.

Manufacturing Business

Sells goods made from raw materials, ex: automobiles, clothing, and soft drinks.

Merchandising Business

Sells products to customers. Ex: grocery stores, sporting good stores.

Service Business

Sells services to customers. Ex: Law Firms, restaurants.

Sole Proprietorship

Simplest, oldest, and most common form of business ownership in which only one individual acquires all the benefits and risks of running an enterprise. In a sole-proprietorship there is no legal distinction between the assets and liabilities of a business and those of its owner.

Entrepreneur

Someone who exercises initiative by organizing a venture to take benefit of an opportunity and, as the decision maker, decides what, how, and how much of a good or service will be produced. An entrepreneur supplies risk capital as a risk taker, and monitors and controls the business activities. The entrepreneur is usually a sole proprietor, a partner, or the one who owns the majority of shares in an incorporated venture.