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             BUSINESS TERM GLOSSARY
 
  Depreciation:

The gradual erosion of the usability and value (possibly due to obsolescence) of an enterprise's fixed assets. In some cases depreciation can be declared as a tax deduction.


Direct Sales Method:

Selling direct to the end user with promotional efforts using advertising, direct mail or telephone sales.


Distributor:

An enterprise that purchases your products for resale to their customers who are usually retail outlets. The distributor expects to receive a significant price discount for providing the distribution service.


Distributor Channel:

The path your product follows to be delivered to the end user. This may be through distributors, retail outlets, self service outlets, vending machines, telephone sales, direct mail sales, etc.


Fashion Goods:

Goods where style is important and price is secondary. These products could include clothing, jewelry, furniture, draperies, and dishes, but can sometimes be stretched into other areas such as umbrellas, walking canes, cigarette holders, etc.


Fixed Assets:

Sometimes called long term assets, these are usually non-liquid assets that are integral to the enterprise's day-to-day business operations such as plants, equipment, furniture and real estate.


Fixed Cost:

The day-to-day cost of doing business that is pre-committed, such as salaries, insurance, lease expenses, utilities, etc.


Full Service Retail Sales Method:

Aselling from a sales outlet directly to the end user at retail prices with sales personnel who can explain the purpose and value of the product or service.

 
 

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