Directions:
Purpose: The purpose of this assignment is to aid students in understanding common business terms so they are better able to analyze business problems and make better decisions.
Create explanations of the following terms as if you were teaching them a seventh grader. To make your explanations more clear, you may use graphics or illustrations in addition to the text you use.
For example, if I were going to explain inventory to a seventh grader, I would use the following:
Inventory – This is what a company or store sells to its customers. If we go to Walmart to buy a bicycle, all the bicycles in the store that are for sale are the inventory. Walmart wants you to buy the bicycle so it can reduce its inventory and get the money you would pay for the bicycle.
Business Terms from Cases
Case 1
Inventory
Costs
Markup Percentage
Annual Sales
Gross Profit
Case 2
Income
Investment
Profitability
Internal Rate of Return
Discount Rate
Case 3
Amortization
Interest Rate
Revenue
Quote
Loan
Case 4
Taxes
Base Period
Pro Forma Financial Statement
Income Statement
Net Income