This section has been created, to provide you with an understanding of some terms (words) that are used regularly in business. We explain these words in two ways. First, we have used a traditional business-type of explanation (from a dictionary). Secondly, we have explained the term as it relates to TeachingKidsBusiness.com and in plain language that kids can understand. Once the “business language” is learned, you will find it much easier to talk to business people, read about businesses and actually do business.
Terms in Business
Explanations of the terms as used in businessas well as in a way that kids can relate to.
Advertising includes any printed or broadcast message that is sent and paid for by an identified organization to a target market via television, radio, newspapers, magazines, direct mail, billboards, website banners and transit cards.
This is a term for a wealthy individual who invests in private companies.Someone that provides you with the money to start your business is an “Angel” in business terms. Angel investors normally have a net-worth of approximately $1,000,000.00 and income of in excess of $200,000.00 per year.
We have created a Kids-As-Angels-Program to provide opportunities for kids to be angels .
This refers to laws that protect investors from being misled by investment people who misrepresent (lie about) the value of investments to trick people into taking their money.
A brand is a name, term, symbol, or design that is intended to identify clearly and differentiate a seller’s product from the products of his or her competitors.
TeachingKidsBusiness.com is a brand that clearly tells people what the website is doing.
It is a summary statement (report) of accounting values of assets (things you own – bike) ; liabilities (money you owe – borrowed money); stock (ownership in the company) and retained earnings (assets less liabilities)
This is a measure of consumer knowledge that a particular brand exists.If you were to talk to a friend about TeachingKidsBusiness.com and he/she had seen the website and checked some things out, the result would be good brand awareness. The goal for any company is to make sure everyone knows about your brand.
This is a marketing strategy that takes the brand name of one product category and extends it to another for purposes of acquired credibility and recognition for the new product category.”Just for Clicks Business Game™” is a brand extension for TeachingKidsBusiness.com. We have taken our name and created other related products/activities that benefit from being connected to TeachingKidsBusiness.com. The “Caddie for Kids Business™” is another brand extension.
A market in which stock prices are expected to rise.
A trade, a profession; a person’s usual occupation.
Buying and selling, trade. A commercial firm or a shop. Business is really as simple as coming up with a product or service and finding a way for people to buy it from you.
TeachingKidsBusiness.com helps kids explore business and gain confidence and preparation for the many opportunities in business.
The amount by which the selling price of an asset exceeds the seller’s initial purchase price is the capital gain.
Progress through life, especially in a profession; an occupation, a way of making a living, especially one with opportunities for advancement or promotion.
TeachingKidsBusiness.com helps kids gain experience and helps kids prepare for careers by exploring careers and learning to think about careers and start asking questions.
This refers to a selling technique in which a salesperson approaches a customer with little or no warning.
This is an asset that is used to secure a loan. The asset would be taken from you in the event that you can’t pay the loan back.
A copyright is a legal proviso, indicating ownership of written or drawn material such that the material cannot be reproduced without the expressed consent of the author.
The primary and essential function that a good or service is providing to a consumer is the core product.
For example, in TeachingKidsBusiness.com our core product is the website experience. The start of our business was based on the creation and success of a website focused on teaching kids business.
Is a type of business. A separate entity from those persons who run it. A corporation provides limited liability, easy transfer of ownership and unlimited life.
Any individual, household, or company representative that acts as a buyer of goods and services offered to the mass market is a customer. Anytime you purchase a product (food, toys, entertainment) or service (hair cut)
A covenant is a set of restrictions by a lender on a borrower regarding how the borrower must operate the business. Violation of debt covenants is grounds for recalling (requesting back) a loan.
The act of making up one’s mind; resolution.
This is a marketing tool designed to attract immediate action from the consumer through direct customer contact.
This refers to a situation in which an entrepreneur’s main source of income and net worth depend on the entrepreneur’s business.
This refers to the investigation process an investor should conduct into the operations and business plan assumptions of a company soliciting investors.Before you even buy stock in a company, you should do your homework on who is running the company and how well the company has done in the past, present and in the future.
An entrepreneur is a person who organizes and manages a business undertaking, assuming the risk for the sake of the profit.
Someone who perceives an opportunity and creates an organization to pursue it or simply someone who is looking to build a company.
It is important to understand that an entrepreneur is not necessarily someone that is self-employed (works for themselves). As more and more people become self-employed we need to understand what makes people entrepreneurs.
This refers to the means by which, investors in a company realize all or part of their investment.
If you buy stock in a company you want to understand how, when and how much you will get back.
Focus Group Interview
This is an interview conducted with a number of people who represent a target market for a product, in which the group is asked specific questions related to a product and its use.If you wanted to test an idea for a product before you start a business, you may want to invite a number of friends and family in to discuss your product. From your discussions with them, you should learn some ways of making changes to your product that will make it more enjoyable to your customers.
A ghost shopper is someone posing as a regular consumer, who is hired by a company who wants to know how their product is being sold at a store. Kind of like a shopping spy.
A company with the intent of growing quickly and has the potential to have a firm-commitment IPO.
Initial Public Offering (IPO)
This refers to the process by which a company raises money, by issuing equity and gets listed on a stock exchange. This is when a company sells stock, that can be bought and sold by many people. It is the dream of many people when they start businesses. TeachingKidsBusiness.com is planning an IPO someday. Since we plan to have Kids own the company, there is be a possibility that you will learn about IPO’s soon.
Life-skills are those qualities of character that have proven to contribute to productive, joyful lives. They include: integrity, initiative, flexibility, perseverance, organization, sense of humor, common sense, friendship, curiosity, cooperation, responsibility and caring.
Skill is an ability to do something from training, knowledge and practice. Life skills is the ability to do something to help you in your everyday life. Examples range from feeding yourself, time management, thinking, reading and looking after yourself.
TeachingKidsBusiness.com has develop the resources to help develop a range of skills that will help kids in business some day and help kids in their daily lives now.
Liquidity is the ability of an asset to be converted into cash as quickly as possible and without any reduction to its value.
The opportunity to buy or sell. A region where goods can be sold. A space or building in which provisions, cattle, vegetables are shown for sale.
The process of planning and executing the conception, pricing, promotion and distribution of ideas, goods and services to create changes that satisfy individual and organizational objectives.
Marketing is an approach to doing business that focuses on identifying the customer’s needs and preferences. Using this information, a company can shape the goods and services it provides, as well as the strategy it uses to bring these goods and services to the public, based on satisfying the customer.
A marketplace is a place where goods are offered for sale.
In KidsE-Marketplace.com we have created a website that allows kids to create and display digital products for other kids to enjoy.
This refers to the process of breaking up the mass market into discernible subgroups, by geography, behavior, or demography.
Market share is the total number of units sold or dollars earned by one product or company in relation to the total number of products sold or dollars earned in an entire product class.
Basically, money allows products and services to be exchanged. If you want to buy a product such as a music CD, it is the payment of money that completes the transaction and allows the ownership of the CD to be transferred to you.
A person’s business; employment; trade.
This refers to a pricing strategy that dictates that the price of an item being introduced into a market should be set as low as possible to generate the greatest possible sales volume for that product.
The “Just for Clicks Business Game™” is applying this strategy with the Kid business owners. The zero pricing will attract customers to the marketplace and develop a relationship with them that will evolve to returned visits, referrals and eventually purchasing products in the next version of the game.
Perceived Value Pricing
This refers to a pricing strategy that dictates that the price of a given item should be set based on the customer’s perception of the value of that item, not on the seller’s costs. If you spent a lot of money developing your product you would expect to recover all those costs. If your customer is not willing to pay your price because they don’t think it is worth it, you will have to change your pricing strategy.
Think out beforehand how something is to be made or done.
Make ready; get ready
The amount for which a thing is sold or can be bought; the cost to the buyer.
A good or service a company makes to sell is a product.
A prospectus is a document containing all relevant investors information regarding a company issuing shares.
Is a term for the part of each of us that governs our thoughts and feelings, both consciously and subconsciously. It is our psyche that shapes what we think, how we behave, what we dream. It is who we are.
A preliminary prospectus used to gauge investor interest in a planned offering (issuing of stock), which has yet to gain final approval from the SEC. (Security Exchange Commission)
We created a “Kids’ Red Herring” in our Kids-As-Angel-Investors program to give kids an investor like experience.
Seed Capital Financing
The small amount of initial capital (money) required to fund the research and development necessary before a company is set up. The capital should enable a business plan to be drawn up.
TeachingKidsBusiness.com created a kid’s Seed Capital Program to take kids through the process of raising money for a business.
Exchange for money or other payment. Be given in exchange.
This consists of capital provided to companies that have been in operation for less than one year, to facilitate all phases of bringing their products to market.
If you borrow the money to start your business you have just completed your first start-up financing deal.
This is the right of a seller to exclusive use of an identifying symbol or brand. For example, “e-Mentoring for Kids Program™” is trademarked. The “™” at the end of the phrase tells you that it is trademarked. There are laws to protect other people from using this trademarked phrase.
This is the collection or population of customers or consumers that a company has in mind as the primary audience for its goods or services and to whom the company gears its marketing efforts to sell the good or service.
In the case of TeachingKidsBusiness.com, our target market is Kids. It is very clear that our users are kids but we also have to communicate well with parents and our community involvement people, to ensure they are comfortable with our services and will participate.
This refers to a friendly acquirer sought by a company threatened by a less welcome buyer.