PARTNERSHIP
- A legal
business relationship of two or more people who share responsibilities,
resources, profits and liabilities.
PATENT
- A right given
by government to a person or business, giving a patentee right to
exclude
others from making, using or selling his or her invention.
PAYABLE
- Something
ready to be paid.
PAYMENT
TERMS - The
conditions you give for payment of your invoice.
PERSONAL
GUARANTEE
- A guarantee to the bank that you will be personally responsible for
repaying
the loan to your business. This is most often supported by a fixed
charge
on a personal asset.
PERSONAL
IDENTIFICATION
NUMBER (PIN) - The number a person uses for identification when
carrying
out a banking machine transaction.
PERSONNEL
- Persons
collectively in the employ of a business.
PLAN
- A plan is a
formal decision to do something, then figuring out how you are
going to do it
before you
start.
POSTING-
To enter
in an account; transferring debits and credits from the journal
to the ledger.
PRICING
- To set the
selling price.
PRIMARY-TYPE
REVENUES
- Revenue obtained from the main source of business operations.
PRIME
RATE - The rate
set by each bank, charged to its most creditworthy customers.
PRINCIPAL
- Property
or capital assets as opposed to income; also , one who is directly
concerned in a
business
enterprise.
PRINCIPAL
AND INTEREST
PAYMENT - A loan payment with a fixed amount of principal and
interest
portion that varies monthly.
PROFIT
- What is left
when expenses are subtracted from the amount of revenue taken in.
PRO-FORMA
- A projection
or estimate. Pro-forma financial statements project future
performance if
certain conditions
are met. When preparing these, it's good idea to look at best and worst
case scenarios.
PROFIT
MARGIN - The
difference between your selling price and your cost. The ratio of
profits
(generally pre-tax) to sales. To calculate, divide pre-tax profit by
sales.
PROFIT
AND LOSS STATEMENT
- A list of the total amount of sales (revenues) and total costs
(expenses).
The difference between revenues and expenses is your profit or loss. It
is also called an "income statement".
PROPRIETORSHIP
- Subject
to exclusive ownership. A proprietor is one who owns a business and a
business
owned by one person is called a proprietorship.
PURCHASE
INVOICE -
A copy of the invoice, received by the buyer, to show evidence of the
purchase
transaction.
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