Nebraska Glossary of business terminologies

Search Glossary of Business Terms The following business glossary is a list of terminologies for businesses applying for grants. A B C D E F G H I J K L N N O P Q R S T U V W X Y Z A Acquisition Acquiring supplies or services by the federal government with money or assets through purchase or lease. Affiliates Business concerns, organizations, or individuals that are a subsidiary of or controlled by control another or that are controlled by a third party. Control may include shared management or ownership; common use of facilities, equipment, and employees; or family interest. B B/E (Business EIDL) Loan A business loan that incorporates physical losses and economic injury for the same legal entity or individual. Balance Sheet or Statement of Financial Position Reports an organization's Assets, Liabilities and Equity (net worth) at a specific time. Assets = Liabilities + Equity. Break-even Analysis A break-even point analysis is used to determine the number of units or dollars of revenue needed to cover total costs - Fixed and Variable Costs. Cost is something that can be classified in several ways depending on its nature. One of the most popular methods is classification according to fixed costs and variable costs. C Capital Leases are for the purchase of fixed assets (machinery/equipment) and these assets are shown on the company’s balance sheet and represent a fixed debt. If the lease is a capital lease, the debt should be shown as a Note Payable. Certified 8(a) Firm A firm owned and operated by socially and economically disadvantaged individuals and eligible to receive federal contracts under the Small Business Administration’s 8(a) Business Development Program. Contract A mutually binding legal relationship obligating the seller to furnish supplies or services (including construction) and the buyer to pay for them. Collateral Assets pledged by a borrower to secure a loan or other credit, and subject to seizure in the event of default. The preferred collateral for an SBA disaster loan is real estate Comparative Analysis Is designed to point out significant trends that occur from year to year by using more than one set of financial statements of comparable dates and time periods. A comparative analysis allows you to arrive at a more complete evaluation of an applicant’s financial position. Corporation (C-corp.) The most common form of business organization, and one, which is chartered by a state and given many legal rights as an entity separate from its owners. Characterized by the limited liability of its owners, the issuance of shares of easily transferable stock, and existence as a going concern. Current Assets A balance sheet item that equals the sum of cash and cash equivalents, accounts receivable, inventory, marketable securities, prepaid expenses, and other assets that could be converted to cash in less than one year. Current Liabilities A balance sheet item, which equals the sum of all money owed by a company and due within one year. D Days Payable A measure of the average time a company takes to pay vendors, equal to accounts payable divided by annual credit purchases times 365. Days Receivable A measure of the average time a company's customers take to pay for purchases, equal to accounts receivable divided by annual sales on credit times 365. DBA Doing Business As - generally a trade name such as “Libby’s Lawn Service” is used, instead of the legal name. Defense Acquisition Regulatory Council (DARC) Representatives from each Military Department, the Defense Logistics Agency, and the National Aeronautics and Space Administration and that is in charge of the Federal Acquisition Regulation (FAR) on a joint basis with the Civilian Agency Acquisition Council (CAAC). Defense Contractor Someone who enters into a contract with the United States for the production of material or for the performance of services for the national defense. Depreciation A non-cash operating expense that reduces the value of a tangible asset as a result of wear and tear, age, or obsolescence. Depreciation is recorded in the financial statements of an organization as a reduction in the carrying value of the asset in the balance sheet and as an expense in the income statement. Duplicated Interest The amount of interest expensed that is added back to cash flow to prevent understating CASAD. E Economic Injury Disaster Loan (EIDL) a working capital loan that provides necessary operating funds to enable eligible businesses to overcome the financial impact of a declared disaster. Normally, This loan may not be used to purchase long-term assets. Emerging Small Business A small business concern whose size is no greater than 50 percent of the numerical size standard applicable to the Standard Industrial Classification code assigned to a contracting opportunity. Equity An accounting term used to describe the net investment of owners or stockholders in a business. Under the accounting equation, equity also represents the result of assets minus liabilities. Extraordinary Items Additional expenses that are not considered “normal” operations and caused directly by the disaster. F Fair and Reasonable Price A price that is fair to both parties, considering the agreed-upon conditions, promised quality, and timeliness of contract performance. "Fair and reasonable" price is subject to statutory and regulatory limitations. Full and Open Competition This refers to contract action. "Full and open" competition means that all responsible sources are permitted to compete. G GPM% Gross Profit (GP) Net Sales (NS). The measure of every sales dollar left after paying for the product; what percent of the sales dollar is left to cover operating costs and to create a profit. H I Income Statement Shows an organization's income and expenses. (similar to a Profit & Loss Statement) Injury Analysis Measures the effects of the disaster on the overall financial condition of the business. Injury Period The time period during which the business fe