7 Business Vocabulary Terms You Need To Know

7 Business Vocabulary Terms You Need To Know

This article shares 7 business vocabulary terms you need to know to succeed in today's fast-paced, rapidly changing business environment.

Knowing the business lingo that directors and managers use daily to explain what, when, where, and how things are going to be done, makes all the difference in terms of creating a competitive advantage for yourself.

The Big 7 Business Vocabulary Terms

Quality Control

Quality control (QC) is a process through which a business seeks to ensure that product quality is maintained or improved. Quality control requires the company to create an environment in which both management and employees strive for perfection. This is done by training personnel, creating benchmarks for product quality, and testing products to check for statistically significant variations.

A significant aspect of quality control is the establishment of well-defined controls. These controls help standardize both production and reactions to quality issues. Limiting room for error by specifying which production activities are to be completed by which personnel reduces the chance that employees will be involved in tasks for which they do not have adequate training.

Definition source: Investopedia

Regulatory Licensing

Regulatory License means any license, approval, consent, authorization, grant or other authority issued by the FCC, any State public utility commission, municipal or county government or agency or any other governmental consent that is required to perform any activity under this Agreement, but shall not be construed to mean any license, approval, consent, authorization, grant or other authority that may be issued or become available under Section 271 of the Act.

Definition source: Law Insider

Compliance

Compliance is where a business accords to established guidelines or specifications, or is the process of doing so. For example, compliance for a manufacturer or supplier might be certification or confirmation that it meets accepted practices, rules, and regulations, or specified practices. Regulations or legislation could be given by government or industry.

Definition source: Sage

Quality Management

A quality management system (QMS) is defined as a formalized system that documents processes, procedures, and responsibilities for achieving quality policies and objectives. A QMS helps coordinate and direct an organization's activities to meet customer and regulatory requirements and improve its effectiveness and efficiency on a continuous basis.

ISO 9001:2015, the international standard specifying requirements for quality management systems, is the most prominent approach to quality management systems. While some use the term "QMS" to describe the ISO 9001 standard or the group of documents detailing the QMS, it actually refers to the entirety of the system. The documents only serve to describe the system.

Definition source: American Society for Quality

Formal Learning

Formal learning refers to a type of learning program in which the goals and objectives are defined by the training department, instructional designer, and/or instructor. Formal learning is also called structured learning or synchronous learning. Examples of formal learning include classroom instruction, web-based training, remote labs, e-learning courses, workshops, seminars, webinars, etc.

Definition source: Training Industry

Standard Operating Procedures

A standard operating procedure is a set of written instructions that describes the step-by-step process that must be taken to properly perform a routine activity. SOPs should be followed the exact same way every time to guarantee that the organization remains consistent and in compliance with industry regulations and business standards.

Standard operating procedures provide the policies, processes and standards needed for the organization to succeed. They can benefit a business by reducing errors, increasing efficiencies and profitability, creating a safe work environment and producing guidelines for how to resolve issues and overcome obstacles.

Definition source: TechTarget

Regulations

A Regulation is an official rule. In the Government, certain administrative agencies have a narrow authority to control conduct, within their areas of responsibility. These agencies have been delegated legislative power to create and apply the rules, or "regulations".

Definition source: Cornell Law School

Use Business Vocabulary To Climb the Corporate Ladder

There you have them. 7 business vocabulary terms you need to know to succeed in today's fast-paced, rapidly changing business environment.

Now that you know the lingo, use it in the proper context to create a competitive advantage for yourself so you can keep climbing the corporate ladder.