🧠 You Use These Acronyms Every Day — But Do You Know What They Really Mean?

What is an acronym?

An acronym is a word formed from the initial letters of a series of words or phrases. For example, CEO stands for Chief Executive Officer, and GPS stands for Global Positioning System. Acronyms are used to make long terms easier to say, remember, and write — but only if you actually know what they mean.

As business owners, we throw around acronyms every day — LLC, EIN, CEO, ROI — but most of us never actually stop to ask what they really mean.

I can’t tell you how many times I’ve heard people refer to an EIN as an “employee identification number,” when that’s not even close to the correct definition.

Why am I bringing this up? Because when we don’t know what acronyms stand for, we often use them out of context — and worse, we make important business decisions based on false assumptions. That’s how you end up structuring your company wrong, filing your taxes incorrectly, or applying for something you don’t even qualify for — all because you were too afraid to say, “I don’t know” in the conversation. We don’t want to look inexperienced, so we stay quiet — but in doing so, we actually prove we don’t understand what we’re talking about.

Let’s fix that. Here are a few acronyms you’ve probably used — and what they actually mean:

📍1. GPS – Global Positioning System

What it means: A satellite-based navigation system that provides location and time information.

Where it came from: Developed by the U.S. Department of Defense in the 1970s for military use. It was made available to civilians in the 1980s and became fully operational in 1995.

What it’s used for: GPS is in your phone, car, smartwatch, delivery apps — pretty much anything that tracks movement or helps with directions.

Real-life example: “I used GPS to get directions to the venue.”

Why it matters: Think about this — your Uber driver, Amazon delivery, or even your fitness app wouldn’t work without GPS. And as a business owner, if you offer services like delivery or transportation, GPS is your best friend.

📍2. ATM – Automated Teller Machine

What it means: A machine that allows customers to complete basic banking functions without a teller.

Where it came from: The first ATM was installed in 1967 at a Barclays Bank in London. It changed the game by giving people access to cash 24/7.

What it’s used for: Withdrawing or depositing money, checking balances, or transferring funds — all without stepping inside a bank.

Real-life example: “I stopped at an ATM to get some cash.”

Why it matters: You might not think of this as business-related, but if you’re managing a storefront or service business, understanding ATM deposits and withdrawals can be important for handling cash flow.

📍3. DVD – Digital Video Disc

What it means: A disc used to store digital data, especially movies or software.

Where it came from: Invented in 1995 through a collaboration between major tech giants like Sony and Panasonic.

What it’s used for: Watching movies, storing files, or distributing training videos.

Real-life example: “We watched the movie on DVD.”

Why it matters: Before streaming, DVDs were the standard. Even now, some companies still use DVDs to send out branded materials or training programs.

📍4. RAM – Random Access Memory

What it means: A type of short-term memory in a computer that stores data the system is currently using.

Where it came from: RAM as we know it developed from early computing innovations in the 1940s and 1950s, evolving into what we now call DRAM (Dynamic RAM).

What it’s used for: Helps your computer or device run faster and handle more tasks at once. The more RAM, the better your performance — especially if you’re multitasking.

Real-life example: “This laptop has 16GB of RAM for faster performance.”

Why it matters: If you're editing videos, using design software, or even just running multiple tabs, RAM affects your productivity. Business owners often complain their computers are slow — RAM is usually the reason.

📍5. ROM – Read Only Memory

What it means: Permanent memory that contains essential instructions your device needs to operate. You can’t change it — it's "read-only."

Where it came from: ROM has been around since the early days of computing and became more standardized by the 1970s.

What it’s used for: Storing firmware — the permanent code that runs your phone, computer, or even microwave.

Real-life example: “The system is stored in ROM so it can’t be changed.”

Why it matters: If RAM is the workspace, ROM is the foundation. Without ROM, your devices wouldn’t even turn on. It's like the blueprint your system uses every time it boots up.

✉️ Want to Learn More?

These five are just the beginning. There are dozens of acronyms we throw around in business every day — and many of us have them all wrong. I’m talking about LLC, EIN, C-Corp, KPI, ROI, CRM, POS, B2B, and so many more.

🧩 If you want the full list — plus a breakdown of what each one means and how it affects your business decisions — join Momentum today.

Inside Momentum, you’ll get: