What is a Sales Budget? Definition: A sales budget is essentially a projection of the amount of goods and services that a firm expects to sell in a given period. The estimate includes figures for monthly as well as quarterly figures that the firm expects to make on executing a given sales strategy. The statement,
What is A Retailer? Definition: A retailer is an individual or an entity that deals directly with consumers. In this case, it can be a business that sells and goods and service to consumers through brick and mortar store or an online platform. Retailer Examples A Retailer can be a small store or a large
What is a Risk Taker? Definition: A risk taker in the business world is anyone willing to take calculated risks, so that they can achieve a specific goal. There is always some level of risk involved in everything we do as human beings. Stepping out of your house every day exposes you to quite a
What is Run Rate? Definition: Run rate is a financial estimate that businesses use to predict future performance, assuming that the conditions currently allowing the business to thrive will also be the same in the future. The run rate uses a company’s current or latest performance figures to estimate how the company will perform in
What is Sales mix? Definition: Sales mix is a financial metric that ascertains the proportion that each product or service sold, contributes to total sales. In its purest form, it is the ratio for each product relative to the overall sales volumes of products. Likewise, it is a collection of all the products and services
What is Marginal Analysis? Definition: Marginal analysis refers to the examination of costs and benefits upon the introduction of a new unit of production. The analysis comes into play when businesses want to ascertain whether they are getting the most value out of resources. Conversely, businesses must ensure that changes in the production process result
What is a Company Merger? Definition: A company merger can best be described as the union between two companies in the same industry to form one corporate entity. Mergers are common in many sectors, especially competitive segments, where a merger makes sense in terms of synergies and operational efficiencies. Often mergers involve two smaller companies
What is a Master Budget? Definition: A master budget is a document that details all expected sales, production levels as well as future expenses and purchases, among other things. Departments in large organizations prepare budgets and hand them over to the finance or accounts department for consideration. Aggregation of divisional budgets gives rise to what
What is Minority Interest In Business? Definition: Minority interest refers to a situation where a shareholder or a group of shareholders own less than 50 percent of a company’s shares with voting rights. This means that this individual or individuals do not have controlling interest over the company. Every company that operates within the legal
What is Normal Profit? Definition: Normal profits in business refer to a situation where a company generates revenue that is equal to the total costs incurred in its operation, thus allowing it to remain operational in a competitive industry. Normal profit is considered an important factor in a business’s production process because it is the