So many individuals dream of opening their own company – but first they must discover some insightful terminology. Right here is a short selection to help you out!
There is no use in manufacturing a product if no one is aware of it. To ensure that their target market knows about the existence of their product, firms resort to the help of marketing. Put simply, 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 undoubtedly among the most helpful common business terms you will ever come across. Every business has their own marketing tactic, like Dell marketing strategy for example.
There are a lot of things going on in the everyday life of any company, be it small or big. Within it there is a number of individuals 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 someone to oversee them. At the lower level you find 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 people like the CEO 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 company they are leading. Many companies likewise 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 brand new developments they attend an annual general meeting, or AGM for short, and that is among the most basic business terms you definitely have to be familiar with. Every public firm has to hold one every year, like the Telecom Italia AGM that is always an essential occasion 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 amongst the most basic financial terms and concepts that you will encounter 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 as an example. These costs involved in the computation of the profit can either be variable or fixed, and these are two important financial terms that any businessperson has to be aware of. Fixed costs, as the name indicates, are any costs that do not change with output, like rent and staff members earnings; variable costs on the other hand will change with the quantity of output, like the cost of buying raw materials for example.