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Business Terms – R


Short for Account Receivables; Debts owed to your company, usually from sales on credit. Accounts receivable is a business asset, the sum of the money owed to you by customers who haven’t paid. The standard procedure in business-to-business sales is that when goods or services are delivered they come with an invoice, which is to be paid later. Business customers expect to be invoiced and to pay later. The money involved goes onto the seller’s books as accounts receivable, and onto the buyer’s books as accounts payable.

receivables turnover

Sales on credit for an accounting period divided by the average accounts receivables balance.

regional marketing

The practice of using different marketing mixes to accommodate unique preferences and competitive conditions in different geographical areas.

relevant cost

Expenditures that are expected to occur in the future as a result of some marketing action and differ among other potential marketing alternatives.


The process of strategically changing the perceptions surrounding a product or service.

resource requirements

(Websites): Your resource requirements are the personnel, time, space and equipment necessary to create and maintain your website. Remember that a website is never done; it will always require resources, some of which will be used to periodically create new content.

retained earnings

Earnings (or losses) that have been reinvested into the company, not paid out as dividends to the owners. When retained earnings are negative, the company has accumulated losses.

return on assets

Net profits divided by total assets. A measure of profitability.

Return On Investment (ROI)

Net profits divided by net worth or total equity; yet another measure of profitability. Also called ROI.

return on sales

Net profits divided by sales; another measure of profitability.

return visitors

In online marketing, a website visitor who has made at least one previous visit to the site or page in question.

rich-gumpert evaluation system

A method of analysis that associates a numeric value between 1 and 4 regarding the spectrums of product development and the entrepreneur and management team. For example, the most desirable “4/4″ rating represents a fully developed product with an established market that is supported by a fully staffed and experienced management team.

Rogers, Everett

Author who studied and published information on the theory of diffusion of innovation.

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