Glossary of Business Terms – “P”
Partnership – A legal business relationship of two or more people who share responsibilities, resources, profits and liabilities.
Passive Investment Management – The managing of a mutual fund or other investment portfolio by relying on automatic adjustments such as indexation instead of making personal judgments.
Patent – A type of copyright granted as a fixed-term monopoly to an inventor by the state to prevent others copying an invention, or improvement of a product or process.
Payable – Ready to be paid. One of the standard accounts kept by a bookkeeper is “accounts payable.” This is a list of those bills that are current and due to be paid.
Payment Gateway – A company or organization that provides an interface between merchant’s point-of-sale system, acquirer payment systems, and issuer payment systems.
Payment-in-kind – An alternative form of pay given to employees in place of monetary reward but considered to be of equivalent value. A payment in kind take the form of a car, purchase of goods at cost price, or other nonfinancial exchange that benefits an employee.
PayPal – A Web based service that enables Internet users to send and receive payments electronically. To open a PayPal account, users register and provide their credit card details. When they decide to make a transaction via PayPal, their card is charged for the transfer.
Perception – The process of selecting, organizing and interpreting information received through the senses.
Performance Appraisal – A face-to-face discussion in which one employee’s work is discussed, reviewed, and appraised by another, using an agreed and understood framework.
Petty cash – A small store of cash used for minor business expenses.
Phantom income – Income that is subject to tax even though the recipient never actually gets control of it, for example, income from a limited partnership.
Pink slip – Get your pink slip to be dismissed from employment
Piracy – Illegal copying of a product such as software or music.
Placement fee – A fee that a stockbroker receives for a sale of shares.
Planning – The process of setting objectives, or goals, and formulating policies, strategies, and procedures to meet them.
Poaching – The practice of recruiting people from other companies by offering inducements.
Podcasting = online audio content that is delivered via an RSS feed. Many people equate podcasting to “radio on demand”. However, in reality, podcasting offers far more options in terms of content and programming than radio does. In addition, podcast listeners can determine the time and the place of their listening, meaning that they decide what programming they want to receive and when they want to listen to it. Listeners can retain audio archives to listen to at their leisure. While blogs have turned many bloggers into journalists, podcasting has the potential to turn podcasters into radio personalities. Read the following articles:
- 5 Benefits of Podcasting
- Why Add Podcasting to Your Marketing Mix
- How Podcasting Can Benefit Your Small Business
Point of Purchase – The place at which a product is purchased by the customer. The point of sale can be a retail outlet, a display case, or even a legal business relationship of two or more people who share responsibilities, resources, profits and liabilities.
Postdate – To put a later date on a document or check than the date when it is signed, with the effect that it is not valid until the later date.
Prebilling – The practice of submitting a bill for a product or service before it has actually been delivered.
Prepaid Expenses – Expenditures that are paid in advance for items not yet received.
Prepaid Interest – Interest paid in advance of its due date.
Prepayment Penalty – A charge that may be levied against somebody who makes a payment before its due date. The penalty compensates the lender or seller for potential lost interest.
Price – The exchange value of a product or service from the perspective of both the buyer and the seller.
Price Ceiling – The highest amount a customer will pay for a product or a service based upon perceived value.
Price Control – Government regulations that set maximum prices for commodities or control price levels by credit controls.
Price Discrimination – The practice of selling of the same product to different buyers at different prices.
Price Floor – The lowest amount a business owner can charge for a product or service and still meet all expenses.
Price Planning – The systematic process for establishing pricing objectives and policies.
Price war – A situation in which two or more companies each try to increase their own share of the market by lowering prices.
Principal – The amount of money borrowed in a debt agreement and the amount upon which interest is calculated.
Probability – The quantitative measure of the likelihood that a given event will occur.
Probation – A trial period in the first months of employment when the employer checks the suitability and capability of a person in a certain role, and takes any corrective action.
Producers – The components of the organizational market that acquire products, services that enter into the production of products and services that are sold or supplied to others.
Product – Anything capable of satisfying needs, including tangible items, services and ideas.
Product life cycle (PLC) = The stages of development and decline through which a successful product typically moves.
Product line – A group of products related to each other by marketing, technical or end-use considerations.
Product mix – All of the products in a seller’s total product line.
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.
Profit – Financial gain, returns over expenditures.
Profit Margin – The difference between your selling price and all of your costs.
Pro-forma – A projection or estimate of what may result in the future from actions in the present. A pro forma financial statement is one that shows how the actual operations of the business will turn out if certain assumptions are achieved.; a document issued before all relevant details are known, usually followed by a final version.
Pro-forma Invoice – An invoice that does not include all the details of a transaction, often sent before goods are supplied and followed by a final detailed invoice.
Promotion – The communication of information by a seller to influence the attitudes and behavior of potential buyers.
Promotional Pricing – Temporarily pricing a product or service below list price or below cost in order to attract customers.
Psychographics – The system of explaining market behavior in terms of attitudes and life styles.
Publicity – Any non-paid, news-oriented presentation of a product, service or business entity in a mass media format.