A brief checklist of general business terms explained in simple terminology

Whether you want to begin your own startup, or you merely have an interest in how business functions, be sure to read through the following short article.


Any firm is like a little country, with many things happening on the day to day basis. You will discover different departments with people with different skill sets that do all sorts of tasks. At every level you'll find people who manage the many different tasks that get completed every day. These men and women are called managers, and as their title suggests they control what people right below them do. You will find that any effective company also has a very strong management team, like Ikea management team. Management is a fundamental part of any firm, and there is a lot of business management terminology that you must become familiar with if you want to be successful in business. In reality, many management terms are considered to be key business terms. One such case is benchmarking. Simply put, benchmarking means goal setting, and it's one of the most important functions of any manager. A supervisor will have to set out clear goals and the timeframe in which they have to be achieved if they want their team to work efficiently.

Decision-making is a vital part of any business. Some decisions are small and can be made by individual staff members, and other individuals will be slightly more important and will need to be made by their line managers. You will discover however some other decisions that will affect the running of the business in the long run. These decisions are typically made by the board of directors and senior management, such as the CEO and COO. Nevertheless, these decisions really need to be reported to the shareholders who have an active interest in how the business is run but are not always able to be present in the every day life of a business. Major changes and other important expertise 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 be aware of. Such an occasion is important for businesses who often take great care in arranging it, like the Telecom Italia AGM for example.

When it comes to common business terms, a great many men and women tend to confuse profits and revenue. A revenue is the amount of income a company 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 company generates a revenue, it doesn't mean that it necessarily generates a profit too. A number of publicly traded companies need to publish reports detailing their profits, like Co-op profits for example.

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