B C E

Break-Even

Definition: Break-even analysis is a financial tool used by businesses to determine the point at which their total revenue equals their total costs, resulting in neither profit nor loss. It helps businesses understand the minimum level of sales or units they need to achieve in order to cover their expenses and start generating profits. Break-even…

Business Plan

Definition: A business plan is a written document that outlines the goals, objectives, strategies, and financial projections of a business. It serves as a roadmap for the business owner, providing a comprehensive overview of the company’s current status and future direction. Importance of a Business Plan: A business plan is crucial for both new startups…

Corporation

Definition: A corporation is a legal entity that is separate from its owners. It is formed by individuals, known as shareholders, who invest capital in the business in exchange for ownership shares. Corporations have their own rights, liabilities, and legal obligations, providing shareholders with limited liability protection. They are managed by a board of directors…

Customer Retention

Definition: Customer retention refers to the ability of a business to keep existing customers engaged, satisfied, and loyal over a period of time. It focuses on strategies and efforts aimed at reducing customer churn, increasing repeat purchases, and fostering long-term relationships with customers. Importance of Customer Retention: Customer retention is essential for the success and…

EBITDA

Definition: EBITDA stands for Earnings Before Interest, Taxes, Depreciation, and Amortization. It is a financial metric used to evaluate a company’s operating performance by excluding certain non-operational expenses and income. Calculation: EBITDA is calculated by starting with a company’s net income and adding back interest expenses, taxes, depreciation, and amortization. The formula for calculating is…