Business

Ltd. (Limited) 

• It is a form of corporate structure available in countries like the U.K., Ireland, and Canada. 
• In a limited company, shareholders' liability is limited to the capital they originally invested.
• If such a company becomes insolvent, the shareholder's personal assets remain protected.
• It has one or more members, also called shareholders or owners, who but in through private sales.
• Directors are employees who keep up with all administrative tasks and tax fillings but do not need to be shareholders.
• The company's finances are separate from the owners and are taxed separately.
• The company owns all profits and pays takes on them, distributes a portion to shareholders as dividends, and retains the rest as working capital.
• A director may withdraw funds only for a salary or dividend payment or loan.
• By setting up a private limited company, it becomes separate from the people who run it.
• Investopedia

Fast-Moving Consumer Goods (FMCG)

• These goods are purchased frequently, are consumed rapidly, are priced low, and are sold in large quantities.
• They are products that sell quickly at a relatively good cost.
• These goods are also called consumer packaged goods.
• FMCG's have a short shelf life because of high consumer demand or because they are perishable.
• Examples - Soft drinks, meat, dairy products, baked goods, fruits, and vegetables.

Cost of Customer Acquisition (COCA)

• It means the price you pay to acquire a new customer.
• It is a critical metric for growing and maintaining your profitability.
• It is calculated as - Marketing Costs / New Customers in a given period.
• It is the most important metric for any e-commerce store.
• Of course, COCA should be as low as possible in your business.

Bankruptcy

• It is a legal proceeding involving a person or business that is unable to repay their outstanding debts.
• The process begins with a petition by the debtor, or on behalf of creditors.
• All of the debtor's assets are measured and evaluated, and the assets may be used to repay a portion of outstanding debt.
• It can allow you a fresh start, but it will stay on your credit reports for a number of years and make it difficult to borrow in the future.
• When a debtor receives a discharge order, they are no longer legally required to pay the debts specified in the order.
• Any creditor listed on the discharge order cannot legally undertake any type of collection activity against the debtor.
• Investopedia

Acquisition

• An acquisition is when one company purchases most of all of another company's shares to gain control of that company.
• Purchasing more than 50% of the stock and other assets allows the acquirer to make decisions without the approval of the company's shareholders.
• Companies acquire other companies for economies of scale, diversification, greater market share, cost reductions, increased synergy, or new niche offerings.
• They can take a long time to market, negotiate, and close.
• It is a great way for a company to achieve rapid growth over a short period of time.
• It is less expensive, less risky, and faster compared to traditional growth methods.
• Unfriendly acquisitions occur when the target company does not consent to the acquisition.

Patent

• A patent is the granting of a property right by a sovereign authority to an inventor.
• This grant provides the inventor exclusive rights to the patented process, design, or invention for a designated period in exchange for a comprehensive disclosure of the invention.
• The patent system is designed to encourage inventions that are unique and useful to society.
• For an invention to qualify for a patent, it must be both "novel" and "non-obvious".
• It also must not have been publicly used, sold, or patented by another inventor within a year of the date the patent application was filed.
• Abstract principles, fundamental truths, calculation methods, and mathematical formulas also are not patentable.
• Utility Patents - It covers anyone who invents a new and useful process, the machine, or composition of matter.
• Design Patents - They include an original, new, and ornamental design for a manufactured product.
• Plant patents - They go to anyone who produces, discovers, and invents a new kind of plant capable of reproduction.

Trademark

• It refers to a recognizable phrase, word, or symbol that denotes a specific product and legally differentiates it from all other products of its kind.
• A trademark exclusively identifies a product as belonging to a specific company and recognizes the company's ownership of the brand.
• They are generally considered a form of intellectual property and may or may not be registered.
• Using a trademark prevents others from using a company or individual's products or services without their permission.
• Trademarks do not expire.
• The owner must make regular use of it in order to receive the protections associated with them.
• They can be bought and sold.

Copyright

• It refers to the legal right of the owner of intellectual property.
• Copyright is the right to copy.
• They assure that the original creators of products and anyone they give authorization to are the only ones with the exclusive right to reproduce the work.
• Copyright does not protect ideas, discoveries, concepts, theories, slogans, logos, or titles.
• It is usually given for a limited time.
• Copyrights can be granted by public law and are in that case considered "territorial rights", which means that copyrights granted by the law of a certain state, do not extend beyond the territory of that specific jurisdiction.

KeyWords

• Payday Loan - A small amount of money lent at a high rate of interest on the agreement that it will be repaid when the borrower receives their next wages.
• Redemption Premium - It is the amount over par value that a bond issuer must pay an investor if the security is redeemed early.
• Asset - It is a resource with economic value that an individual, corporation, or country owns with the expectation that it will provide a future benefit.
• Intellectual Property (IP) - It is a broad categorical description for the set of intangible assets owned and legally protected by a company from outside use or implementation without consent.
• Bear Market - It is when a market experiences prolonged price declines.
• Collateral - The term refers to an asset that a lender accepts as security for a loan.
• Copyright Infringement - It is the use or production of copyright-protected material without the permission of the copyright holder. The rights of the holder are being breached by a third party.
• Buyback - Also known as a share repurchase, is when a company buys its own outstanding shares to reduce the number of shares available on the open market.
• Cost of Goods Sold (COGS) - It refers to the direct costs of producing the goods sold by a company.
• Command Economy - It is a system where the government, rather than the free market, determines what goods should be produced, how much should be produced, and the price at which the goods are offered for sale.
• Firm - It is a for-profit business organization such as a corporation, or partnership that provides professional services. They exist to maximize profits.
• Consumer Price Index (CPI) - It is a measure that examines the weighted measure of prices of a basket of consumer goods and services. It is calculated by taking price changes for each item in the predetermined basket of goods and averaging them.
• Debt Ratio - It is defined as the ratio of total debt to total assets. It is a financial ratio that measures the extent of a company's leverage.
• Days Payable Outstanding (DPO) - It is a financial ratio that indicated the average time that a company takes to pay its bills and invoices to its trade creditors, which include suppliers and vendors.
• Days Sales Outstanding - It is a measure of the average number of days that it takes a company to collect payment after a sale has been made.
• Debt-To-Equity Ratio (D/E) - It is calculated by dividing a company's total liabilities by its shareholder equity.
• Debenture - It is a type of bond or other debt instrument that is unsecured by collateral.
• Demand Elasticity / Price Elasticity of Demand - It is an economic measure of the change in the quantity demanded or purchased of a product in relation to its price change. It is the ratio of the % change in demand by % change in the price.
• Direct Selling Association (DSA) - It is the national trade association for companies that market and services directly to consumers through an independent, entrepreneurial sales force.
• Delivered Duty Paid (DDP) - It is a delivery agreement whereby the seller assumes all of the responsibility, risk, and cost associated with transporting goods until the buyer receives the product.
• Delivery-at-Place (DAP) - It is used to describe a deal in which a seller agrees to pay all costa and suffer any potential losses of moving goods sold to a specific location.
• Due Diligence - It is an investigation, audit, or review performed to confirm the facts of a matter under consideration.
• Deferred Compensation - It is a portion of an employee's compensation that is set aside to be paid at a later date. They include retirement plans, pension plans, and stock-option plans.
• Economies of Scale - They are cost advantages reaped by companies then production becomes efficient. Companies can achieve that by increasing production and lowering costs. The larger the business, the more the cost savings.
• Enterprise Value (EV) - It is a measure of a company's total value. It is calculated as -  EV = Market Cap + Total Debt - Cash and Cash Equivalents.
• Earnest Money - It is a deposit to a seller that represents a buyer's good faith to buy a home.
• Employee Stock Ownership Plan (ESOP) - It is an employee benefit plan that gives workers ownership interest in the company. They give the selling shareholder and participants receive tax benefits.
• Equivalent Annual Cost (EAC) - It is the annual cost of owning, operating, and maintaining an asset over its entire life.
• Endowment Fund - It is an investment fund established by a foundation that makes consistent withdrawals from invested capital.
• Fiat Money - It is a government-issued currency that is not backed by a physical commodity, such as gold or silver, but rather by the government that issued it. The value of the money is derived from the relationship between supply and demand and the stability of the issuing government.
• FAANG Stocks - It refers to the stocks of - Facebook, Amazon, Apple, Netflix, and Alphabet.
• Fixed-Income Security - It is an investment that provides a return in the form of fixed periodic interest payments and the eventual return of principal at maturity.
• Fiscal Policy - It refers to the use of government and tax policies to influence economic conditions including employment and inflation.
• Fiduciary - It is a person or organization that acts on behalf of another person(s), putting their client's interests ahead of their own, with a duty to preserve good faith and trust.
• Fringe Benefits - They are additions to compensation that companies give their employees. To help them recruit and motivate them.
• Free Market - It is an economic system based on supply and demand with little or no government control.
• Free On Board (FOB) - It is a shipment term used to indicate whether the seller or the buyer is liable for goods that are damaged or destroyed during shipping.
• Free Trade Agreement - It is a pact between two or more nations to reduce barriers to imports and exports among them.
• Guarantor - It is a financial term describing an individual who promises to pay a borrower's debts in the event that the borrower defaults on his or her loan obligation.
• Hurdle Rate - It is the minimum rate of return on a project or investment requires by a manager or investor.
• Housing Bubble / Real Estate Bubble - It is the rise in housing prices fueled by demand, speculation, and exuberant spending to the point of collapse.
• Hostile Takeover - It is the acquisition of one company by another that is accomplished by going directly to the company's shareholders or fighting to replace management to get the acquisition approved.
• Homestead Exemption - It is a legal provision that helps shield a home from some creditors following the death of a homeowner spouse or the declaration of bankruptcy.
• Insurance Premium - It is the amount of money an individual or business pays for an insurance policy.
• Inverted Yield Curve - It represents a situation in which long-term debt instruments have lower yields than short-term debt instruments of the same credit quality.
• Inventory Turnover - It is a ratio showing how many times a company has sold and replaced inventory during a given period. (IT = 2 * Sales / Beginning Inventory + Ending Inventory)
• Inferior Good - It is an economic term that describes a good whose demand drops when people's income rise.
• Initial Public Offering (IPO) - It refers to the process of offering shares of a private corporation to the public in a new stock issuance.
• Joint Venture (JV) - It is a business arrangement in which two or more parties agree to pool their resources for the purpose of accomplishing a specific task.
• White Paper - It is an informational document, usually issued by a company or organization, to promote or highlight the features of a solution, product, or service.
• Wire Fraud - It is a type of fraud that involves the use of some form of telecommunications or the internet.
• White-Collar Crime - It is a nonviolent crime committed for financial gain. These crimes are characterized by deceit, concealment, or violation of trust.
• Trustee - It is a person or firm that holds and administers property or assets for the benefit of a third party. Trustees are trusted to make decisions in the beneficiary's best interests.
• Triple Bottom Line (TBL) - In economies, believes that companies should commit to focusing on social and environmental concerns as they do on profits. It posits that instead of one bottom line, there should be three: profit, people, and the planet.
• Trade Deficit - A trade deficit occurs when a country's import exceeds its export during a given time period. It is also referred to as a negative balance of trade.
• Pre-Market - It is the period of trading activity that occurs before the regular market session. You watch the pre-market to judge the strength and direction of the market in anticipation of the regular trading session.
• Penny Stock - It typically refers to the stock of a small company that trades for less than $5 per share.
• Ponzi Scheme - It is a fraudulent investing scam promising high rates of return with little risk of investors. It generates returns for earlier investors with money taken from later investors.
• Money Laundering - It is the illegal process of making large amounts of money generated by criminal activity, such as drug trafficking, and appears to have come from a legitimate source.
• Monetary Policy - It refers to the actions undertaken by a nation's central bank to control the money supply and achieve macroeconomic goals that promote sustainable economic growth.
• Opportunity Cost - It represents the potential benefits an individual, investor, or business misses out on when crossing one alternative over another. It helps us understand the potential missed opportunities.
• Leverage - It results from using borrowed capital as a funding source when investing to expand the firm's asset base and generate returns on risk capital. It can also refer to the amount of debt a firm uses to finance assets.
• Line of Credit (LOC) - It is a preset borrowing limit that can be used at any time. The borrower can take money out as needed until the limit is reached, and as money is repaid, it can be borrowed again in the case of an open line of credit.
• Mixed Economy - It is a system that combines aspects of both capitalism and socialism.
• Letter of Intent (LOI) - It is a document declaring the preliminary commitment of one party to do business with another. The letter outlines the chief terms of a prospective deal.
• Value-Added Tax (VAT) - It is a consumption tax placed on a product whenever a value is added at each stage of the supply chain. from production to the point of sale.
• Labor Union - It is an entity formed by workers in a particular trade, industry, or company for the purpose of improving pay, benefits, and working conditions. Also called a "trade union" or a "worker's union".
• Spinoff - When a company creates a new independent company by selling or distributing new shares of its existing business. A company creates a spinoff expecting it will be worth more as an independent entity.
• Amortization - It is an accounting technique used to periodically lower the book value of a loan or intangible asset over a set period of time. For a loan, amortization focuses on spreading out loan payments over time. For an intangible asset, it is similar to depreciation.

1. If you cannot beat your competitor then acquire it. 
2. Timing is the most important factor in the beginning.
3. Innovation is the most imp thing afterward. 
4. Define your USP's completely and communicate it clearly well in your brand.