If you are a budding business person and would like to learn more about the world of business, right here is a short list of the most popular terms used in business
There is no use in manufacturing a good or service if no one is aware of it. To ensure that their target market knows about the existence of their product, companies resort to the help of marketing. Simply put, marketing is the study of a relationship between the producer and the consumer that will help businesses put the perfect item on the market, and it is surely among the most helpful common business terms you will ever encounter. Every company has their own marketing method, like Dell marketing strategy for instance.
There are a great deal of things going on in the day to day life of any business, 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 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 find men and women like the chief executive or the CFO who are in charge of the whole company and who make choices that will have a much larger effect on the future of the company they are leading. Many companies likewise have shareholders, who own shares of that company and therefore have an interest in how the business is run without being closely involved. To stay informed on how the business is doing and any fresh advancements they attend an annual general meeting, or AGM for short, and that is amongst the most basic business terms you definitely have to know. Every public business has to hold one every year, like the Telecom Italia AGM that is always an 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 business, and in basic 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 indicates, are any costs that don't vary with output, like rent and staff members salaries; variable costs on the other hand will alter with the quantity of output, like the cost of buying raw materials as an example.