List of Acronyms & Abbreviations used in BUSINESS & FINANCE

Assist in developing a relative weight for project objective that reflect the organization's priorities for time,cost, scope, quality.

Annual Percentage Rate (APR), is a financial term used to represent the annual cost of a loan, taking into account the interest rate, fees, and other charges. It provides a more accurate representation of the true cost of borrowing than just the interest rate, as it includes all the associated expenses. APR helps borrowers compare different loan offers and make informed decisions about which one is more affordable.

Example:

• The store will be providing 3 offers seasonally, leave it to the b.o.
• Consider b.o., before making final decisions.

Business to Business (B2B), refers to commercial transactions between two businesses rather than between a business and a consumer. B2B relationships can involve the sale of goods, services, or both, and often involve complex contracts and agreements. B2B transactions may be conducted through various channels such as online marketplaces, trade shows, or direct sales. B2B relationships are typically characterized by a focus on long-term partnerships, collaboration, and mutual benefits.

Business-to-Business-to-Consumer (B2B2C ) refers to business transactions that involve multiple companies and consumers. It involves a company selling products or services to another company, which then sells those products or services to consumers. B2B2C transactions are becoming increasingly common in industries such as retail, where companies partner with other businesses to provide their products or services to a wider audience.

Business to Consumer (B2C), refers to the commercial transactions between a company and an individual consumer. In a B2C transaction, the company is selling a product or service directly to the end-user, who is an ordinary consumer. This type of business model is common in retail, e-commerce, and service industries, where the company aims to meet the needs and preferences of a broad customer base. B2C businesses often use marketing strategies that focus on branding, advertising, and customer engagement to attract and retain consumers.

Business-to-Employee (B2E) refers to business transactions between a company and its own employees. It involves the sale of products or services internally within an organization for use by employees in their roles. B2E transactions are becoming increasingly common as companies seek to provide their employees with access to specialized products or services that can improve their productivity and job satisfaction.

Business-to-Government(B2G) refers to business transactions between a company and a government entity. It involves the sale of products or services to government agencies, departments, or organizations for public use. B2G transactions can be complex due to the need for compliance with government procurement policies, bidding processes, and contractual agreements.

Business-to-Individual (B2I) refers to business transactions between a company and an individual in their capacity as a business owner or entrepreneur. It involves the sale of products or services directly to small business owners for use in their operations. B2I transactions are similar to B2B transactions in terms of complexity due to the need for detailed product specifications, pricing negotiations, and contractual agreements.

The Bank Secrecy Act (BSA) is a legislative act in the United States aimed at preventing and combating money laundering, as well as financing of terrorist activities and other financial crimes. Enacted in 1970, it requires financial institutions to establish and maintain programs to detect and report suspicious transactions and activities.

Under the BSA, financial institutions like banks, credit unions, and other businesses involved in financial transactions must implement internal controls and report any suspicious transactions to the Financial Crimes Enforcement Network (FinCEN), which is a part of the U.S. Department of the Treasury. This helps authorities identify potential money laundering, fraud, or other illicit activities.

The BSA also includes provisions for the reporting of currency transactions, such as the Currency Transaction Report (CTR), which is filed for cash transactions over a certain threshold. Additionally, financial institutions must maintain records related to these transactions for a specified period.

By implementing the Bank Secrecy Act, the United States aims to protect its financial system from being used for criminal activities and to enhance national security.

Consumer-to-Business (C2B) refers to business transactions where consumers provide products or services directly to companies in exchange for compensation or rewards. C2B transactions are becoming increasingly common in industries such as crowdsourcing, where companies solicit ideas, feedback, and content from their users in exchange for payment or recognition. C2B transactions can be mutually beneficial as they allow companies to tap into the creativity and expertise of their users while providing consumers with opportunities for financial gain or recognition.

Consumer-to-Consumer (C2C) refers to business transactions between individual consumers selling products or services directly to other individual consumers for personal use. C2C transactions are typically facilitated through online marketplaces such as eBay, Amazon Marketplace, and Etsy, where buyers can browse and purchase items from individual sellers around the world. C2C transactions can be more risky than other types of e-commerce due to the lack of established brands and quality control measures.

A method used in project planning and management.

Someone who have equal contribution in building an organization

Example:

1. The 2023 Business Excellence Conclaves was won by Brenden & co.
2. Mr. Philip is the current CO of Brenden & co.

Close of Business (COB) refers to the end of a trading day or the time when financial markets and stock exchanges close for business. The exact time of COB can vary depending on the specific market or exchange, but it typically falls between 3:00 PM and 4:00 PM in major financial centers such as New York, London, and Tokyo. After COB, no new trades can be executed until the next trading day begins.

The Debt-Equity Ratio (DER) is the ratio between your net worth and liabilities. 

DER = TTL/TNW

TTL - Total Term Liabilities

TNW - Tangible Net Worth

Define Measure Analysis Design Validate (DMADV)  is a common DFSS methodology used to implement a new process or to develop a new product.

DFSS - Design for Six Sigma

Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA), refers to a financial metric that measures a company's operating profitability before accounting for interest, taxes, depreciation, and amortization expenses. In other words, EBITDA represents the amount of money a company generates from its core operations before considering the effects of financing decisions, tax obligations, and capital expenditure requirements. It is often used as a quick measure of a company's ability to cover its debt obligations and generate cash flow for reinvestment in the business or distribution to shareholders. However, EBITDA should be interpreted with caution as it does not take into account certain important financial items such as interest payments, taxes, and capital expenditures that are necessary for a company's long-term financial health.

Free Trade Agreement (FTA), is a trade agreement made between countries to eliminate tariffs, import quotas, and preferences on almost all goods and services they trade in the Free Trade Area. 

Generally Accepted Accounting Principles (GAAP) refer to a set of accounting rules, standards, and procedures that provide a framework for preparing financial statements. GAAP is designed to ensure consistency, accuracy, and transparency in financial reporting, making it easier for investors, creditors, and other stakeholders to understand and compare financial information across different organizations. GAAP covers various aspects of financial reporting, including revenue recognition, expense recognition, asset valuation, and liability measurement. Adherence to GAAP is mandatory for publicly traded companies in the United States and many other countries.

Gross Working Capital (GWC), is the level of  capital required to maintain level of current asset.

Interest Coverage Ratio (ICR), is measured to find the company's operating cash flow coverage of interest expenses. An ICR of 5 is considered satisfactory.

ICR = EBIT-DA/AIO

EBIT-DA : Earnings before interest, Tax, Depreciation & Amortisation

AIO : Annual Interest Obligation

A Letters of Credit is a letter from the bank guaranteeing that a buyer's payment to a seller will be received on time and for the correct amount.

Mergers and acquisitions (M&A) refer to the strategic business combinations between two existing companies or the acquisition of one company by another. Mergers involve the combining of two companies to form a new entity, while acquisitions involve one company taking over another company and becoming its sole owner. M&A transactions can be motivated by various factors, such as expanding market share, diversifying product lines, accessing new technologies, reducing costs through synergies, and enhancing financial performance. The success of M&A deals depends on factors such as strategic fit, cultural compatibility, management capabilities, regulatory approvals, and financial considerations.

M&A transactions can have significant impacts on stakeholders, including shareholders, employees, customers, suppliers, and competitors. Successful M&A deals can create value for shareholders through synergies, operational efficiencies, and revenue growth. However, failed M&A deals can result in significant financial losses and reputational damage for the companies involved.

Month over Month (MoM) is a financial term that refers to the comparison of financial data or performance between two consecutive months. It is used to analyze and measure the changes in a company's financial position, revenue, expenses, profits, or any other financial metric from one month to the next. MoM analysis is commonly used in financial reporting, forecasting, and decision-making processes to identify trends, seasonality, and fluctuations in business activities. It helps companies to monitor their performance, make informed decisions, and take appropriate actions to mitigate risks and maximize opportunities.

Out of Office (OOO) is an automated email response that is sent to people who send emails to a recipient's email address when the recipient is away from their email or unable to respond to emails in a timely manner. The OOO message typically includes information about the recipient's absence, the expected return date, and contact details of a substitute or emergency contact if available. The purpose of OOO messages is to inform the sender that the recipient is unavailable and provide them with alternative options for their request or inquiry.

A matrix which allows to prioritize project risk. 

A point of contact (POC) refers to a person or entity designated as the primary point of communication and coordination between two organizations or departments. The POC is responsible for managing the relationship, addressing issues, and facilitating collaboration between the parties involved. This role is particularly important in complex projects or initiatives that require close coordination and communication between multiple stakeholders.

Purchasing Power Parity (PPP), is an economic theory and a technique used to determine the relative value of currencies, estimating the amount of adjustment needed to the exchange rate betwwen countries in order for the exchange to be equivalent to each currency's purchasing power.

A Request for Discussion (RFD) is a formal document submitted to a governing body, such as a board of directors or a committee, requesting that a specific issue or topic be discussed and potentially acted upon during a future meeting. The RFD typically includes a brief summary of the issue, its significance, and any proposed actions or recommendations. The purpose of an RFD is to provide advance notice of the proposed discussion and to allow other members of the governing body to prepare for the discussion and provide input.

Strategic Human Resource Management (SHRM) is a forward-thinking approach to managing an organization's people, aligning HR policies, practices, and strategies with business goals. Key components include strategic planning, workforce planning, talent management, employee engagement, performance management, employee relations, change management, succession planning, compensation and benefits, and legal compliance. This approach aims to create a competitive advantage, enhance performance, and ensure long-term success by fostering a high-performing workforce.

Total Ouside Liabilities (TOL), is the difference in total liabilities of the organization with net worth of the company. 

Terms of service (TOS) refer to the set of rules and guidelines that govern the use of a particular website, app, or service. These terms outline the rights and responsibilities of both the user and the company providing the service, and cover various aspects such as privacy policies, intellectual property rights, user conduct, and dispute resolution mechanisms. Users are required to agree to these terms before using the service, and any violation of these terms may result in account suspension, termination, or legal action. It is essential for users to read and understand these terms carefully before using any online service.

Word of Mouth(WOM ) is a marketing strategy that relies on personal recommendations and conversations among people to promote a product, service, or brand. It involves encouraging satisfied customers to spread the word about their positive experiences to their friends, family, and social networks. WOM marketing can be highly effective because people trust the opinions and recommendations of people they know and respect. It can also be more cost-effective than traditional advertising methods as it leverages existing relationships and networks.