The world of business can be great deals of fun! Down below you will find a succinct list of business terms anyone with an interest in business should acquaint themselves with.
There are a great deal of things going on in the everyday life of any business, whether it is small or big. Within it there is a number of men and women working in diverse departments that are in charge of diverse tasks. Even so to ensure that all of these tasks go according to plan, there is always someone to oversee them. At the lower level you come across your line managers and departmental mangers, who make choices on an almost daily basis. But as you go higher up the corporate hierarchy you will discover men and women like the chief executive or the CFO who are in charge of the whole company and who make decisions that will have a much larger impact on the future of the firm they are leading. Numerous businesses also have shareholders, who own shares of that firm and so have an interest in how the firm is run without being closely involved. To remain informed on how the business is doing and any new breakthroughs they attend an annual general meeting, or AGM for short, and that is among the most basic business terms you really have to know about. Every public business has to hold one every year, like the Telecom Italia AGM that is always a crucial event for their shareholders. During an AGM, shareholders are presented with an annual report about the company’s performance and strategy.
Any firm exists to produce either a product or a service to then sell it for a profit. A profit is perhaps one of the most basic financial terms and concepts that you will encounter in the corporate world, and in simple terms a profit is gained when the revenues from selling the good or a service exceed the costs involved in its production. If a business goes public, it has to announce its earnings to the public, including its profits, like Nestlé profits as an example. These costs involved in the estimation of the profit can either be fixed or variable, and these are 2 important financial terms that any businessperson has to be very well aware of. Fixed costs, as the name suggests, are any costs that do not change with output, like rent and workers salaries; variable costs on the other hand will change with the quantity of output, like the cost of purchasing raw materials for example.
There is no use in producing a product if no body is aware of it. To make certain that their target market knows about the existence of their product, businesses resort to the help of marketing. Basically, marketing is the study of a relationship between the manufacturer and the customer that will help businesses put the right product on the market, and it is definitely amongst the most helpful common business terms you will ever come across. Every company has their own marketing method, like Dell marketing strategy for example.