Here is a selection of business terms explained in easy language

The world of business can be plenty of fun! Beneath you will discover a brief list of business terms anyone with an interest in business should acquaint themselves with.

There is no use in making a good or service if no one is aware of it. To be sure that their target audience knows about the existence of their product, providers resort to the help of marketing. Basically, marketing is the study of a relationship between the manufacturer and the consumer that will help businesses put the right item on the market, and it is certainly among the most helpful common business terms you will ever come across. Every company has their own marketing idea, like Dell marketing strategy as an example.

There are so many things going on in the day to day life of any company, whether it is small or big. Within it there is a number of men and women working in different departments that are in charge of different tasks. However to ensure that all of these tasks go according to plan, there is always somebody to oversee them. At the lower level you come across your line managers and departmental mangers, who make choices on an almost day-to-day basis. But as you go higher up the corporate hierarchy you will find people like the chief executive or the CFO who are in charge of the whole business and who make choices that will have a much larger effect on the future of the firm they are leading. Various companies also have shareholders, who own shares of that business and for that reason have an interest in how the firm is run without being closely involved. To remain informed on how the firm is doing and any new developments they attend an annual general meeting, or AGM for short, and that is perhaps one of the most basic business terms you really need to know. Every public company has to hold one every year, like the Telecom Italia AGM that is always a major event for their shareholders. During an AGM, shareholders are presented with an annual report about the company’s performance and strategy.

Any business 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 come across in the world of business, 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 for example. These costs involved in the calculation of the profit can either be variable or fixed, and these are two 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 differ with output, like rent and employees wages; variable costs on the other hand will change with the amount of output, like the cost of buying raw materials for instance.

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