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Essential Business Terms

Revenue

The total income a business earns from its products or services before any expenses are deducted.

Expenses

The costs a business incurs to operate, including salaries, rent, utilities, and materials.

Profit

The financial gain remaining after all expenses are subtracted from revenue.

Cash Flow

The movement of money in and out of your business, critical for daily operations.

Assets

Resources owned by a business that have economic value, such as cash, inventory, and equipment.

Liabilities

Financial obligations or debts that a business owes to others.

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