A handful of interesting new business terms you will need to be really knowledgeable about

Creating a company from scratch takes a lot of effort and energy. In the short article directly below, you will find a list of helpful terms and definitions to start you off.

There is no use in making a product if no body is familiar with it. To ensure that their target market knows about the existence of their product, firms resort to the help of marketing. Basically, marketing is the study of a relationship between the manufacturer and the customer that will help companies put the perfect item on the market, and it is certainly probably one of the most helpful common business terms you will ever encounter. Every firm has their own marketing idea, like Dell marketing strategy for instance.

There are a lot of 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 individuals working in diverse departments that are in charge of various tasks. However to make sure 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 decisions on an almost day-to-day basis. But as you go higher up the corporate hierarchy you will come across 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 effect on the future of the business they are leading. Many businesses also have shareholders, who own shares of that business and therefore have an interest in how the business is run without being directly involved. To remain informed on how the company is doing and any fresh developments they attend an annual general meeting, or AGM for short, and that is perhaps one of the most basic business terms you definitely need to know. Every public firm has to hold one every year, like the Telecom Italia AGM that is always a crucial occasion for their shareholders. During an AGM, shareholders are presented with an annual report about the company’s performance and strategy.

Any company exists to produce either a product or a service to then sell it for a profit. A profit is amongst the most basic financial terms and concepts that you will encounter in 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 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 calculation of the profit can either be variable or fixed, and these are 2 important financial terms that any businessperson has to be very well aware of. Fixed costs, as the name indicates, are any costs that don't range with output, like rent and staff members wages; variable costs on the other hand will change with the quantity of output, like the cost of buying raw materials for instance.

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