Just a few of the most important business terms explained

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

Undoubtedly, among the most integral financial terms to know in terms of business is assets. But just what exactly are assets? Well, basically, assets are any invaluable things a company is in possession of. This involves money 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 variation between the two may be whether they last three, five, or even 20 years. Capital assets are considered long-term assets and are also referred to as fixed assets. You just know that major companies such as RIU Hotels have a great deal of assets – it's pertinent to have them if a company is wanting to be profitable. Venture capital is another fantastic phase to have an understanding of. To put it plainly, venture capital is money that is invested in new or emerging companies that are perceived as having fantastic profit potential. This term is frequently mentioned in business language so it's a terrific suggestion to have a really good understanding of it.

If a person is to come by some general business terms, one term they are probably going to come across very frequently is the acronym AGM. An AGM, or annual general meeting, is a mandatory annual meeting of a company's shareholders. During the Telecom Italia AGM, for example, the directors of the company will present a quite important report containing information for shareholders about the company's performance and strategy. In turn, these shareholders with voting rights get to vote on current issues, such as appointments to the company's board of directors and executive compensation. Every one of the the crucial decisions of the running of a business are made during an AGM. Needless to say, it really is an important part of running any successful company, specifically when attempting to grow or expand an enterprise.

One of the most important basic business terms to know is operating expenses. These are all types of expenses incurred while conducting common business processes, such as wages, salaries, administrative and research costs, as well as development costs. These are all important components to all companies. Major companies like Novo Banco are probably going to have rather high operating expenses, making it even more important that its earnings are high enough to offset the amount favourably. Capital input is an additional very crucial aspect of business vocabulary to understand. This phrase is regularly referred to as investment, or new investment, and has to do with any new funds being invested into a firm – not as loans, but rather as money invested in ownership. This investment will not surprisingly grow in value if a company does excellently, but will decrease if the opposite were to happen. Like all investments, a significant element of risk is involved.

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