Plenty of men and women dream of opening their own company – but first they must discover a handful of informative terminology. Below is a brief selection to help you out!
There are a great deal of things going on in the daily life of any corporation, whether it is small or big. Within it there is a number of individuals working in various departments that are in charge of various tasks. Even so to ensure 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 choices on an almost day-to-day basis. But as you go higher up the corporate hierarchy you will discover men and women like the chief executive or the CFO who are in charge of the whole business and who make decisions that will have a much larger effect on the future of the firm they are leading. Numerous businesses also have shareholders, who own shares of that company and consequently have an interest in how the company is run without being directly involved. To remain informed on how the company is doing and any new breakthroughs they attend an annual general meeting, or AGM for short, and that is among the most basic business terms you definitely have to know. Every public company has to hold one every year, like the Telecom Italia AGM that is always an important 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 among the most basic financial terms and concepts that you will come across in the corporate world, 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 business goes public, it has to announce its earnings to the public, including its profits, like Nestlé profits for instance. These costs involved in the computation 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 implies, are any costs that do not differ 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 as an example.
There is no use in creating a good or service if no one is familiar with it. To ensure that their target market knows about the existence of their product, companies resort to the help of marketing. Basically, marketing is the study of a relationship between the producer and the individual that will help companies put the right product on the market, and it is surely one of the most handy common business terms you will ever encounter. Every business has their own marketing idea, like Dell marketing strategy for instance.