Plain-English definitions for the terms you'll encounter on your financial journey.
The practice of starting and growing a company using personal savings and revenue rather than seeking external investment.
A financial calculation used to determine the exact point where total revenue matches the total cost of doing business. Reaching this threshold means the company is neither making a profit nor losing money.
The stage at which a business's total sales revenue exactly covers its total expenses, resulting in zero profit or loss.
Internal Revenue Service: This is the government agency responsible for collecting taxes and making sure people and businesses follow federal tax laws. Think of them as the people who manage the country's piggy bank by ensuring everyone pays their fair share.
A theoretical relationship between rates of taxation and the resulting levels of government revenue.
A valuation ratio that compares a company’s stock price to its revenues.
A financial ratio that shows the percentage of revenue that remains as profit after all costs are paid.
The total amount of money brought in by a company through its normal business operations before any expenses are subtracted.
An IRS official who specializes in examining and auditing tax returns to ensure compliance with the law.
Taxes imposed by a government on imported goods. They are used to protect domestic industries from foreign competition and to generate government revenue.