Complicated Business Terms Simplified PART 2 1๏ธโฃ Equity: ๐ The ownerโs share in a company after subtracting liabilities from assets. 2๏ธโฃ Cash Flow: ๐ The actual movement of money in and out of a business, crucial for daily operations. 3๏ธโฃ Revenue: ๐ The total money a business earns before expenses. (Top line) 4๏ธโฃ Profit: ๐ What remains after deducting all costs from revenue. (Bottom line) 5๏ธโฃ Scalability: ๐ The ability of a business to grow without being constrained by resources. 6๏ธโฃ Market Capitalization (Market Cap): ๐ The total value of a company's outstanding shares. 7๏ธโฃ Valuation: ๐ The estimated worth of a company based on factors like revenue, assets, and market trends. Often used in funding rounds. 8๏ธโฃ Burn Rate: ๐ The rate at which a company spends its capital before generating positive cash flow. A key metric for startups.
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