A short listing of general business terms explained in basic language

If you want to prosper in business, you need to become acquainted with the lingo first. Following are a few of the most common business terms.

In terms of common business terms, many men and women tend to confuse profits and revenue. A revenue is the amount of income a business receives as the result of selling the good or service they offer. A profit is part of the revenue, and it is calculated by deducting any costs involved in the making of the said good or service from the revenue, and it's important to remember that even though a business generates a revenue, it doesn't mean that it necessarily creates a profit also. A lot of publicly traded businesses have to publish reports describing their profits, like Co-op profits for example.

Any company is like a small country, with a great many things happening on the daily basis. You will discover different departments with people with different ability sets that do all kinds of tasks. At every level you'll find individuals who manage the numerous tasks that get executed every day. These people are called managers, and as their title suggests they control what individuals directly below them do. You will find that any effective firm likewise has a really strong management team, like Ikea management team. Management is an important part of any business, and there is a great deal of business management terminology that you should become familiar with if you want to succeed in business. In fact, many management terms are considered to be key business terms. One such case is benchmarking. Basically, benchmarking means aim setting, and it is one of the most important functions of any manager. A supervisor will really need to set out clear aims and the timeframe in which they really need to be accomplished if they want their team to work effectively.

Decision-making is a fundamental part of any company. Some decisions are small and can be made by individual staff members, and other people will be slightly much more important and will need to be made by their line managers. You'll discover even so some other decisions that will affect the running of the company in the long run. These decisions are normally made by the board of directors and senior management, such as the Chief Executive Officer and COO. However, these decisions really need to be reported to the shareholders who have an active interest in how the firm is run but are not consistently able to be present in the every day life of a company. Major changes and other important information and facts of this nature is normally discussed during the Annual General Meeting, or AGM for short. AGM is amongst the most basic business terms that you should have knowledge of. Such an event is important for companies who frequently take great care in organising it, like the Telecom Italia AGM for example.

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