Just a few of the biggest business terms explained

Read on to discover more about quite a few general business terms that each single business person has to grasp.

If a person is to stumble on a few general business terms, one term they are probably going to encounter very often is the acronym AGM. An AGM, or annual general meeting, is a mandatory annual gathering of a company's investors. During the Telecom Italia AGM, as an example, the directors of the company will present a really important report containing information for stockholders about the company's performance and strategy. In turn, these shareholders with voting rights get to vote on current issues, like appointments to the business's board of directors and executive compensation. All of the crucial decisions of the running of a business are decided in the course of an AGM. As you can imagine, it's an indispensable part of running any successful business, specifically when aiming to develop or expand a company.

Unquestionably, one among the most important financial terms to know in terms of business is assets. But just what exactly are assets? Well, basically, assets are any integral things a business is in possession of. This incorporates cash and receivables, property, inventory and so forth. They are assets that have value in an exchange. Assets can be either long-term or short-term and the variation between the two may be whether they last three, five, or even 20 years. Capital assets are regarded as long-term assets and are also referred to as fixed assets. You just know that major companies such as RIU Hotels have a large number of assets – it's key to have them if an enterprise is aiming to be profitable. Venture capital is another helpful phase to have an understanding of. To put it in simple terms, venture capital is cash that is invested in brand new or expanding businesses that are perceived as having great profit potential. This term is commonly mentioned in business language so it’s a fantastic suggestion to have a good understanding of it.

One of the most indispensable basic business terms to know is operating expenses. These are any types of expenses incurred while completing common business processes, like wages, salaries, administrative and research costs, as well as development costs. These are all major components to all organisations. Large businesses such as Novo Banco are probably going to have fairly high operating expenses, making it even more integral that its profits are high enough to offset the number positively. Capital input is an additional very crucial part of business terminology to comprehend. This phrase is typically known as investment, or new investment, and has to do with any new money being invested into a company – not as loans, but rather as money invested in ownership. This investment will clearly raise in value if a business does well, but will diminish if the reverse were to take place. Like all investments, a huge element of risk is involved.

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