The business world may be great deals of fun! Beneath you will find a concise list of business terms anybody with an interest in business should familiarise themselves with.
There is no use in making a good if no one is aware of it. To ensure that their target market knows about the existence of their product, providers resort to the help of marketing. Simply put, marketing is the study of a relationship between the manufacturer and the consumer that will help companies put the best item on the market, and it is surely perhaps one of the most helpful common business terms you will ever encounter. Every firm has their own marketing plan, like Dell marketing strategy for example.
There are a lot of things going on in the day-to-day life of any corporation, be it small or big. Within it there is a number of men and women working in various departments that are in charge of various tasks. However to make sure 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 decisions on an almost day to day basis. But as you go higher up the corporate hierarchy you will discover individuals like the CEO or the CFO who are in charge of the whole firm and who make decisions that will have a much larger effect on the future of the company they are leading. Various businesses also have shareholders, who own shares of that firm and consequently have an interest in how the firm is run without being immediately 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 amongst the most basic business terms you definitely need to learn about. Every public firm has to hold one every year, like the Telecom Italia AGM that is always a very important 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 among the most basic financial terms and concepts that you will come across in the business 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 company goes public, it has to announce its earnings to the public, including its profits, like Nestlé profits for instance. 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 implies, are any costs that don't vary with output, like rent and workers salaries; variable costs on the other hand will change with the volume of output, like the cost of purchasing raw materials for example.