Saturday, July 20News That Matters

10 O-business words you need to know

Obligations incurred are debts https://www.treehousebusinesscentre.org/ that a company has already incurred but has not yet paid for. This could include things like accounts payable, accrued expenses, and deferred revenue.

Offering

An offering is a product or service that a company offers to its customers. The offering should be something that the customer wants or needs, and it should be priced competitively.

Offering mix or portfolio

The offering mix or portfolio is the set of products or services that a company offers to its customers. The offering mix should be carefully designed to meet the needs of the target market and to achieve the company’s business goals.

On-costs

On-costs are expenses that are incurred in the course of doing business, but which are not directly related to the production of goods or services. On-costs can include things like rent, utilities, and insurance.

Operating expenses

Operating expenses are the day-to-day costs of running a business. Operating expenses can include things like salaries, rent, utilities, and marketing.

Operating leverage

Operating leverage is a measure of how much a company’s profits are affected by changes in its sales. A company with high operating leverage has a lot of fixed costs, so a small change in sales can have a big impact on profits. A company with low operating leverage has a lot of variable costs, so a small change in sales will have less of an impact on profits.

Operations control

Operations control is the process of ensuring that a company’s operations are running smoothly and efficiently. Operations control can include things like setting standards, monitoring performance, and taking corrective action when necessary.

Opportunities versus ideas

An opportunity is a situation that has the potential to create value for a company. An idea is a thought or concept that has the potential to be turned into an opportunity. The key difference between an opportunity and an idea is that an opportunity is something that can actually be achieved, while an idea is just a possibility.

Opportunity analysis

Opportunity analysis is the process of evaluating opportunities to determine whether or not they are worth pursuing. Opportunity analysis should consider the following factors: the potential size of the market, the company’s ability to compete, and the resources that will be required to pursue the opportunity.

Opportunity cost

The opportunity cost of an action is the value of the best alternative that was forgone. For example, if a company decides to invest in a new product, the opportunity cost of that investment is the profit that could have been earned by investing in another product.

Original equipment manufacturer (OEM)

An original equipment manufacturer (OEM) is a company that manufactures products that are sold under another company’s brand name. For example, Apple is an OEM because it manufactures iPhones that are sold under the Apple brand name.

Other short-term liabilities

Other short-term liabilities are debts that a company expects to pay within one year. Other short-term liabilities can include things like accounts payable, accrued expenses, and deferred revenue.

Outsourcing

Outsourcing is the practice of contracting out a business function to a third party. Outsourcing can be done for a variety of reasons, such as to save money, to gain access to specialized skills, or to focus on the company’s core competencies.

These are just a few of the many business words that start with the letter “O.” If you are interested in learning more about business, I encourage you to do some research and learn the definitions of these and other business terms.