Glossary of Business Terms - N

net present value. A calculation of what future dollars are worth today.

net profit. Sales minus variable costs and fixed costs. Net profit is used as a starting pour to measure return on investment for specific products or businesses.

networking. Making contact with a variety of people in related fields to foster communication with additional contacts, or to provide information that goes beyond the reason for the initial contact.

net worth. The total assets of a business minus its total liabilities.

NGOs. See nongovernmental organizations

niche market. A special segment of a market, often defined in terms of particular buyer characteristics, which a given business is particularly well suited to target.

noncompetition agreement. A contract that restricts an employee or owner from competing against a former business or employer. These contracts are permitted if they are limited in time and geographical area.

nondisclosure agreement. A contract whereby a person or company agrees not to disclose trade secrets.

nongovernmental organizations (NGOs). International organizations that take a position of advocacy on social, economic, or political issues.