In accounting, what method records inventory at the lower of its original cost or net realizable value?
Answer
Lower of cost and net realizable value
80 Business Terminology Trivia Questions with Answers
80 public questions with answers, drawn from the well. How many can you answer?
In commercial law, what contract protects confidential business information from unauthorized disclosure?
Answer
Non-disclosure agreement
In management theory, what conflict arises when owners’ goals differ from those of hired managers?
Answer
Principal-agent problem
In production economics, what cost advantage comes from increasing output so average cost falls?
Answer
Economies of scale
In corporate finance, what cash remains after a company pays for capital expenditures?
Answer
Free cash flow
In public-company valuation, what is the total market value of all a company’s outstanding shares called?
Answer
Market capitalization
In stock-market terminology, what is a company’s first sale of shares to the public called?
Answer
Initial public offering
In corporate finance, what does EBITDA measure before interest, taxes, depreciation, and amortization?
Answer
Earnings before interest, taxes, depreciation, and amortization
In corporate performance analysis, what does ROE stand for?
Answer
Return on equity
In corporate acquisitions, what term describes a deal financed largely with borrowed money?
Answer
Leveraged buyout
In business strategy, what term describes the customer benefit a company promises to deliver?
Answer
Value proposition
In business accounting, what term describes money owed to a company by customers who bought on credit?
Answer
Accounts receivable
In business finance, what term describes current assets minus current liabilities?
Answer
Working capital
In business terminology, what does B2C describe when a company sells directly to individual consumers?
Answer
Business-to-consumer
In marketing, what term describes the total value of a customer’s expected relationship with a business?
Answer
Customer lifetime value
In corporate takeover defense, what is a poison pill designed to do?
Answer
Make a takeover more expensive