15 Management Terms to Make Your Assignments Professional

Are you someone who is not able to understand and write management assignments? The main reason is the lack of knowledge of its vocabulary, which makes students search for management assignment help.

But if you learn these frequently used terms you will not only be able to understand the assignments better, but your writing will also look more professional. Learning these terms will make you engage with your professors and fellows better. So, without any delay, let's start learning them.   

What Terms to Know for Writing Management Assignments?

Here is a list of 15 management terms to help you understand and write your assignments. These terms are not only used in accountancy majors but also in business and finance. But if you face difficulty writing your homework, seek aid by searching for assignment help UK.   

Data Driven

It means making business decisions based on Data, which is a numerical figure quantifying real-life events. For example, as a management student, you have to find the daily stock requirement of a Shop. So, to decide, you will find the average daily soap sales of that Shop and then supply soaps as per the demand. 

U.S.P

Better known as a Unique Selling Proposition, a competitive advantage that a business has over the other players in the market, which no one can easily copy. USP builds a unique brand identity in a market flooded with options. If a product lacks a USP, consumers will not find any reason to buy it over the substitutes. 

Business Assets

Assets are anything of financial value owned and operated by the company. They can be anything that puts money in the pockets of the businesses. The balance sheet shows assets under two heads, which are non-current and current. Examples of assets are machinery, furniture, stock in the shop, debtor, cash in hand, land, etc.

Liabilities

Liabilities are anything which a business owes to outsiders. It means they have to pay money to the entities that are not a part of the business. There are two types of liabilities: non-current and current. The former refers to the one a business pays in the long term. The latter have to be paid in the short term, in less than one year. For example, creditors, bank loans, trade payable, unearned income, etc. 

Key Performing Metrics

In simple terms, they refer to the metrics companies track to check their performance. For instance, the monthly sales of a car company’s outlet is an example of a Key performing metric. Moreover, companies track it to set goals for themselves and check their performance.

Revenue

It means sales made by the company by delivering goods and services to the customer in return for a price. The higher the revenue, the higher the profit the businesses can earn. It is the first heading that comes in the profit and loss statement, which is of two types - operating and non-operating.

Business Cost

Cost refers to the expenses that occur in operating a business. There are two types of expenses. First, the direct costs are the expenses to produce goods like the purchase of raw materials. The second type is indirect costs, which relate to logistics and administration. For example, salaries, office rent, taxes, etc.    

Gross Profit

Profit means sales minus cost. However, Gross profit comes when direct costs are deducted from the sales. If the direct cost is more than the revenue, gross profit will become negative, which is also known as gross loss. Companies track it to know, whether they are producing efficiently or not. If they make a gross loss, they cut their direct costs or increase their prices.

Net Profit

It means gross profit minus indirect costs or total revenue minus total cost. Net profit is a better metric for evaluating profitability, including all the costs. If the indirect costs are more than the gross profit, companies make negative net profit. That is also known as net loss. 

EBITDA

It is better known as earnings before Interest, Taxes, Depreciation and Amortisation. EBITDA is the profit of the company before paying these four costs. But why do companies track it? Because they want to know the operational profitability of their business. So, they do not include them as they do not relate to the operations and companies cannot control them.

Profit & Loss

There are majorly three types of financial statements that companies prepare. The profit and loss statement is the first one, which tells the income generated by the company. It shows the total revenue minus all the costs that a company bears. Lastly, businesses prepare to analyse their profitability. 

Balance Sheet

The second statement is the balance sheet, which shows a business's financial position. It shows all the assets and liabilities a company have. Moreover, the total amount of the business assets and liabilities have to be equal. If they aren’t equal, accountants have made some mistakes in preparing the statements. 

Cash Flow

The cash flow statement tells the inflow and outflow of the cash in a business with its sources. It presents three subheads, which are Operating, Investing and Financing activities. Each shows different incoming and outgoing sources of cash along with their amount. Companies prepare it for tracking the cash and planning a way to control it.    

Funding Rounds

Businesses need capital to operate. But, sometimes they are not making the profits or the founders do not have enough capacity to fund. So, the funding round means raising money from outside investors to operate. Lastly, It is of different types and starts from seed then goes up to A, B, C, D and so on. 

Funding Winter

It is a time duration in which businesses find it difficult to raise funds from investors. Moreover, funding winter happened because of various reasons like investor paranoia or recession. So many businesses shut down in this period because of a lack of capital and losses.

Conclusion

So, these fifteen terms can help you understand and write your assignments better. These terms will improve your knowledge, writing and discussion with your professors. They will not only help one but also many management majors. Still, if you want any aid, search for management assignment help.