Read more to find out more information on some of the important business terms that each and every single business individual will have to understand.
If a man or woman is to encounter a few general business terms, one term they are probably going to encounter very frequently is the acronym AGM. An AGM, or annual general meeting, is a obligatory annual meeting of a business's shareholders. At the Telecom Italia AGM, for example, the directors of the business will present a very important report containing information for shareholders about the company's performance and strategy. In turn, these shareholders with voting rights get to vote on present issues, such as appointments to the business's board of directors and executive compensation. All the most crucial decisions of the running of a business are made in the course of an AGM. As you can imagine, it's an indispensable part of running any successful company, specifically when trying to grow or expand an enterprise.
Without any doubt, one among the most essential financial terms to know in terms of business is assets. But just what precisely are assets? Well, simply put, assets are any instrumental things a business is in possession of. This includes cash and receivables, property, inventory and the like. They are valuables that have value in an exchange. Assets can be either long-term or short-term and the distinction between the two may be whether they last 3, 5, or even 20 years. Capital assets are considered long-term assets and are also known as fixed assets. You just know that big businesses like RIU Hotels have numerous assets – it’s pertinent to have them if a company is wanting to be profitable. Venture capital is another helpful phase to have an understanding of. To put it plainly, venture capital is money that is invested in new or emerging companies that are identified as having wonderful profit potential. This term is frequently brought up in business jargon so it’s a excellent tip to have a good understanding of it.
One of the most pertinent basic business terms to know is operating expenses. These are any types of expenses incurred while carrying out typical business procedures, such as wages, salaries, administrative and research costs, as well as development costs. These are all fundamental components to all companies. Large companies 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 counterbalance the number favourably. Capital input is another truly key aspect of business jargon to comprehend. This term is frequently referred to as investment, or new investment, and has to do with any new money being invested into a firm – not as loans, but rather as money invested in ownership. This investment will not surprisingly raise in value if a business does excellently, but will decrease if the reverse were to take place. Like all investments, a great element of risk is involved.