If you're interested to learn how businesses function, below you will discover a variety of important business concepts that you should discover about.
Decision-making is a fundamental part of any business. Some decisions are small and can be made by individual workers, and other individuals will be slightly more important and will have to be made by their line managers. You'll find however some other decisions that will affect the running of the firm in the long run. These decisions are normally made by the board of directors and senior management, such as the CEO and COO. Even so, 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 ideas of this nature is typically discussed during the Annual General Meeting, or AGM for short. AGM is one of the most basic business terms that you should know about. Such an event is important for companies who frequently take great care in arranging it, like the Telecom Italia AGM for example.
Any company is like a small country, with many things occurring on the day-to-day basis. You'll notice different departments with people with various ability sets that do a variety of tasks. At every level you'll find individuals who oversee the many different tasks that get completed every day. These individuals are called managers, and as their title suggests they manage what individuals right below them do. You will find that any successful startup also has a really strong management team, like Ikea management team. Management is a fundamental part of any company, and there is a great deal of business management terminology that you have to become familiar with if you want to succeed in business. In reality, a great many management terms are considered to be key business terms. One such example is benchmarking. To put it simply, benchmarking means goal setting, and it is amongst the most important functions of any manager. A manager will need to set out clear aims and the timeframe in which they need to be accomplished if they want their team to work efficiently.
On the subject of common business terms, so 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 business generates a revenue, it does not mean that it necessarily creates a profit too. Many publicly traded businesses need to publish reports outlining their profits, like Co-op profits for example.