Business Basics
Practical definitions and examples for common financial and sales terms.
Entries
Important limitation
These explanations are educational. Tax treatment, contract enforceability, bookkeeping methods, and required disclosures depend on facts and jurisdiction. Use a qualified professional for advice about a particular business decision.
See an error? Please use the correction process and include a source or other evidence that helps us check the claim.
5 results
Alphabetical by title. Inclusion is not an endorsement.
Estimates, Quotes, and Invoices
An estimate is an informed approximation, a quote commonly states a proposed price for a defined scope and period, and an invoice requests payment for goods or services. Legal effect depends on wording, acceptance, facts, and jurisdiction.
Read & understandBusiness basicsHow to Compare Service Quotes Without Comparing Unlike Work
A practical cross-industry method for turning different proposals into an honest comparison.
Read & understandBusiness basicsLeads vs. Customers
A lead is a person or organization showing potential interest under a stated definition. A customer has completed the business’s threshold for a purchase or active paid relationship.
Read & understandBusiness basicsMarkup vs. Margin
Markup measures profit relative to cost; gross margin measures gross profit relative to selling price. They are not interchangeable percentages.
Read & understandBusiness basicsRevenue vs. Profit
Revenue is income generated before relevant expenses are deducted. Profit is what remains after a defined set of expenses. Gross, operating, and net profit answer different questions.
Read & understand