Business Terms

What Does the Term “Mutually Exclusive” Mean

The term “mutually exclusive” is a term used to describe two events that cannot both be true to occur. A coin flip is an example of a mutually exclusive event. A flipped coin cannot read both heads and tails at the same time. The probability of a coin flip reading both heads and tails would be zero, but the probability of a coin flip reading heads or tails would be the sum of … [Read more...]

What is a Mission Statement, and How is it Different Than a Vision Statement?

A mission statement, which is different from a vision statement, defines the purpose and objectives of a company in the present. A mission statement explains why does the company do what it does, for whom and how. Its focus is on the present leading to the future. The main purpose of a mission statement is to guide the day-to-day decision making by defining the purpose and … [Read more...]

What is a Seasonal Business?

Often a seasonal business is thought of as business that is incrementally more busy during a holiday season. For example: a florist sells more flowers during Valentine’s Day. But a seasonal business is technically, any business which gains incremental sales during any measurable time period. Like a restaurant which gains  5% more sales during the winter time or a parking lot … [Read more...]

What is social media?

Social media are web-based, digital tools and applications that allow people to interact, create, share or exchange information, ideas, and pictures/videos in online virtual communities and networks. Some popular social media sites include: Twitter, Facebook, Wikipedia, Google+, LinkedIn, YouTube, Pinterest, and Instagram. Blogs are also considered social media sites. The total … [Read more...]

What is Cash Flow?

Cash flow is the net amount of cash and cash-equivalents flowing in and out of a business. In accounting terms, if the amount of cash at the end of a period is greater than the amount of cash at the start of the period, the company is said to have “positive” cash flow. Cash flow is principally a measure of liquidity, and does not indicate any level of profitability. … [Read more...]

What is a P&L, or Profit and Loss Statement?

A P&L is a financial statement that summarizes all the revenues, costs and expenses that a business has incurred over a period of time.  The P&L is a helpful snapshot of the company’s ability to generate profits, either by increasing revenues or by reducing costs and expenses. Usually P&Ls are reported quarterly or on an annual basis, as part of a company’s … [Read more...]

What is an Infographic and What Are They Used For?

An infographic is a data-rich, graphical representation of a story or thesis. It combines text and graphics to convey a message in a more interesting medium than an article or single photo. Research shows infographics to be around 30 times more likely to be read than plain text articles. The purpose of an infographic is to educate or inform on a unique topic in an interesting … [Read more...]

What is a Domain Name?

A domain name is an identifying name in a URL and represents the IP address of a server. For example, in the URL http://businessingmag.com/tag/business-success, the domain name is businessingmag.com, which represents the IP address of the server on which it resides.  Every domain name has a suffix (eg. .com, .edu, .org) that represents the top level domain (TLD) it belongs to. … [Read more...]

What is Digital Marketing?

Digital marketing is a collective strategy of promoting and marketing products or services through digital channels to generate leads and convert those leads into sales. The core medium utilized to accomplish the strategic goals of digital marketing is internet technologies. With the proliferation of internet connected devices, digital marketing efforts are growing at an … [Read more...]

What is the Cloud?

Basically, the cloud is the internet. More specifically, the cloud is a vast network of servers that allows people to access information from an internet-connected device like a smartphone, tablet, or PC. Some examples of cloud-based services and applications: Google Drive, Apple’s iCloud, Netflix, Dropbox and Office 365. These services and applications are in the cloud, and … [Read more...]