Entrepreneur's Business Dictionary: 15 Business Terms You Need to Know It's time to brush up your basics, for it is important to become an aware entrepreneur along with being a successful one!

A successful business doesn't just need timing or luck or funding. Just knowing the tricks of the trade is not enough. Entrepreneurs need to educate themselves and most importantly, constantly reiterate the basics for a better outlook in 2019! Here are 15 business terms to begin 2019 with towards a more aware year.

Franchise

A type of license a franchisee needs to acquire in order to have access and control over the workings of business including its proprietary, trademarks, patents etc.

Stakeholder

Stakeholders are those individuals which are affected by the operations, policies and objectives of a business enterprise. Creditors, employees, shareholders and investors are all stakeholders.

Net Worth

The total value of your business (assets exceeding liabilities) is its net worth.

B2B

B2B stands for Business to Business. It is a type of business wherein transactions happen between different businesses without any interaction with the customers.

Collateral

Collateral is an asset that the borrowers offer as a security to the lender in order to acquire a loan.

Lien

Lien gives a creditor the legal right to seize a debtor's assets and use the proceeds to pay off the debts

Articles of Association

It is a legal document that specifies the regulations along with the mission and purpose of the company. This document works as a guiding light for any business clearly stating the principles on which the company is built

Turnover

Turnover is the net sales generated by a company, unlike profit which is generated after the residual expenses are churned out.

Business Plan

It is the financial blueprint of a plan that states how a company is going to achieve its goal in the future.

Series A Funding

It is the first round of financing that start-ups and businesses receive from a venture capital firm. The investors also get a chance to get ownership of the company through allotment of stocks.

Venture Capitalists

Venture Capitalist is an investor who provides capital to businesses which are in their initial stages or tries to help those small businesses that wish to expand.

Angel Investor

Also called as private investors, angel funders, informal investor, seed investor, this is a category of individuals who provide capital to start-ups or business enterprises in exchange of convertible debt or ownership equity.

Insurance Claim

A formal request to an insurance company urging to compensate or cover losses incurred by a person under specific policies.

Banking Fraud

It is an illegal practice done by individuals or organizations to unethically obtain money and other assets from banks or a financial institution.

Outsourcing

A common business practice, outsourcing is when firms hire people from outside the company to perform tasks such as production, manufacturing, supplying etc which could have been performed within the premises as well.