V

VALUATION

The process of appraising the worth of a product, service or business

VALUE

Worth expressed in money units; the equivalent amount of money that would be exchanged for a product or service; the power of a good or service to command an exchange of money for another good or service.

VALUE-ADDED

The increase in worth of a product due to change in its form or function by manufacturing, packaging or other method; the difference between the amount a company sells a product for and what was paid for materials and labor used to manufacture the product.

VALUE-ADDED TAX

A tax on the difference between the purchase cost and the selling cost, mostly due to labor required to change the form or function of a product plus profit.

VARIABLE COST

A cost that is dependent on quantity of output; a cost that varies in proportion to the quantity produced and is incurred as a direct result of operation of the business. Theoretically, variable costs are zero if there is no production. As opposed to FIXED COST.

VARIABLE EXPENSES

See VARIABLE COST.

VARIABLE INCOME

An income that depends on the amount of products or services delivered (SOLD) during a period. As opposed to FIXED INCOME, which is received on a regular periodic basis and is a constant amount.

VARIANCE ANALYSIS

An evaluation of the causes of deviations from a planned outcome. In marketing, a variance results from either a price change or a volume of sales change.

VAT

See VALUE ADDED TAX.

VENDOR

A supplier of goods or services of a commercial nature; a seller of merchandise. Also a retailer; especially a retailer without an established place of business, such as a sidewalk vendor.

VENTURE

See BUSINESS VENTURE.

VENTURE CAPITAL

A source of business investment associated with a relatively high-risk opportunity. Sources of financing for small and start-up businesses. Usually, the risk is of a higher order than conventional financial institutions are willing or able to bear. About $1 billion is invested yearly in venture capital. In return for taking the higher investment risk, a VENTURE CAPITALIST is usually rewarded with some combination of equity ownership rights in the business. Stages of risk levels from start-up (highest risk) are SEED MONEY, SECOND ROUND, MEZZANINE LEVEL and INITIAL PUBLIC OFFERING (least risk, but still there is significantly more risk than for conventional lending). Yet venture capital is less risky than ADVENTURE CAPITAL. Also called RISK CAPITAL.

VENTURE CAPITAL FIRM

A business operated by a VENTURE CAPITALIST. See also VENTURE CAPITAL.

VENTURE CAPITALIST

An individual or firm that invests in relatively high-risk business situations. A venture capitalist seeks to invest in firms with rapidly growing sales and expects substantial profits, often investment in new developments is desired. A venture capitalist provides equity financing as opposed to a loan. Therefore, the venture capitalist is an owner of the business and seeks to exercise control over the business. See VENTURE CAPITAL. See also ADVENTURE CAPITAL, which is a more speculative investment than venture capital. VESTED INTEREST A present right to a thing; title to property; ownership although perhaps without current possession, such as a renter. Time and effort devoted to a project.

VICE-PRESIDENT

The second highest ranking EXECUTIVE officer in a company, reporting to the PRESIDENT. In the absence of the president, the vice-president is in charge of day-to-day company operation.

VOICEMAIL

The use of a recording device on the receiving end of a computer telephone transmission that records incoming information. Similar to a letter but computer-generated and transmitted by wire.

VOID

To have no legal force or binding effect; an annulment; not enforceable. A void agreement is no contract at all. To void a previously valid contract eliminates the enforceability of the contract.

VOLUME

An amount or quantity. Often the expression of the GROSS SALES of the business.

VOLUNTARY BANKRUPTCY

A legal proceeding of bankruptcy when a debtor brings a petition to a court by his or her own action. The objective is an orderly and equitable settlement of obligations. See BANKRUPTCY; INVOLUNTARY BANKRUPTCY.

VOLUNTARY TRADE RESTRAINT

A quota by an exporting country that limits the quantity of exports.

VOTING RIGHTS

Usually, the shares of stock in a corporation that entitle the shareholder to vote on issues of the corporation. Also applies to individual officers who sit at Board of Directors meetings.

VOUCHER

A document serving as evidence (proof) that money was received or that payment was made. In some types of businesses, a voucher is issued as evidence that work was completed, permitting payment by a third party, such as a bank.

VOUCHER SYSTEM

A method of paying for work completed by the use of VOUCHERS. See VOUCHER.

 

All definitions were taken from www.small-business-dictionary.org.