BAD DEBTS Funds owing to a business which are determined to be uncollectible.

BALANCE SHEET Financial statement listing a company’s assets, liabilities, and equity on a specific date.

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.

BEST AND FINAL OFFER For negotiated procurements, a contractor’s final offer following the conclusion of discussions.

BID BOND A type of surety bond wherein the surety company guarantees the bidder will enter into a contract and furnish the required payment and performance bonds.

BOOK VALUE The value of an item or property at a specific time after deducting depreciation from original cost.

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 BIRTH Formation of a new establishment or enterprise.

BUSINESS CARD(S) A card identifying a business and an individual associated with that business.

BUSINESS CONCERN A business concern eligible for assistance as a small business is a business entity organized for profit, with a place of business located in the United States, and which operates primarily within the United States or makes a significant contribution to the U.S. economy through payment of taxes or use of American products, materials, or labor.

BUSINESS DEATH Voluntary or involuntary closure of a firm or establishment.

BUSINESS DISSOLUTION For enumeration purposes, the absence from any current record of a business that was present in a prior time period.

BUSINESS FAILURE The closure of a business causing a loss to at least one creditor.

BUSINESS PLAN A comprehensive planning document which clearly describes the business developmental objective of an existing or proposed business. The plan outlines what and how and from where the resources needed to accomplish the objective will be obtained and utilized.

BUSINESS START For enumeration purposes, a business with a name or similar designation that did not exist in a prior time period.