Glossary
Business management glossary
Plain-language definitions for strategy, finance, and operations terms.
Glossary
Business management
7 terms
Finance & budgeting
3 terms
-
Continuously updated financial projection that extends the plan horizon each period. Unlike static annual budgets, rolling forecasts adapt to changing conditions and keep leadership focused on the months ahead rather than outdated assumptions.
-
Ratio of net gain to cost, used to evaluate the profitability of an investment or initiative. ROI is one of the most widely used financial metrics because it provides a simple, comparable measure of return regardless of investment size.
-
Accounting principle governing when earned income is recorded, following standards like IFRS 15 or ASC 606. Revenue recognition rules ensure that income is reported in the period it is earned, not when cash is received, giving stakeholders an accurate view of financial performance.
R
4 terms
-
The number of months a company can operate at its current burn rate before cash runs out. Extending runway through cost control or fundraising is a constant priority for pre-revenue and early-stage companies.
-
An annualized view of current performance, projecting recent results over a full year. While useful for quick forecasting, run rate can be misleading if based on seasonal peaks or one-off revenue events.
-
Identifying, assessing, and mitigating threats to objectives across finance, operations, and compliance. Effective risk management balances potential impact against likelihood and assigns clear ownership for each identified risk.
-
A responsibility grid that clarifies who is Responsible, Accountable, Consulted, and Informed for tasks. RACI matrices prevent duplicated effort, reduce confusion about ownership, and are especially useful in cross-functional initiatives.
