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BALANCE SHEET
Financial statement showing assets and liabilities at a specific time.
BANKRUPTCY
A condition in which a business cannot meet its debt obligations and petitions a federal district court for either reorganization of its debts or liquidation of its assets. In the action the property of a debtor is taken over by a receiver or trustee in bankruptcy for the benefit of the creditors. This action is conducted as prescribed by the National Bankruptcy Act, and may be voluntary or involuntary.
BOND
A third party obligation promising to pay if a vendor does not fulfill its valid obligations under a contract. Types of bonds include BID, INDEMNITY, LICENSE, PAYMENT, PERFORMANCE & SURETY.
BREAK-EVEN POINT
The break-even point in any business is that point at which the volume of sales or revenues exactly equals total expenses -- the point at which there is neither a profit nor loss -- under varying levels of activity. The break-even point tells the manager what level of output or activity is required before the firm can make a profit; reflects the relationship between costs, volume and profits.
BUSINESS INFORMATION CENTER (BIC)
One of more than 50 specialized U.S. Small Business Administration units which offer the latest in high-technology hardware, software and telecommunications to assist small business PLUS one-on-one counseling with seasoned business veterans through the Service Corps of Retired Executives (SCORE). Each BIC offers electronic bulletin boards, computer data bases, on-line information exchange, periodicals and brochures, counseling, video tapes, reference materials, texts, start-up guides, application software, computer tutorials and interactive media.
BUSINESS PLAN
A comprehensive planning document which clearly describes the business developmental objective of an existing or proposed business seeking assistance in the form of debt or equity. The plan outlines what and how and from where the resources needed to accomplish the objective will be obtained and utilized.
BUY
To obtain ownership of an asset in exchange for money or value.
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