Throughout the last few months, this course has acted as an insider view of a business class. I have learned many tricks of the trade in businesses and how companies can get around certain things. A good example of this it the term “greenwashing,” were companies claim to be green and practice bettering the environment when in reality, they are not. It is truly all a marketing scheme to make money and scam consumers. After my research throughout the quarter, I came across a few confusing terms I wanted to add to the glossary. One of the many that came up was particularly confusing. This word was forecast, which in my head deals strictly with weather. The two other terms I deemed necessary for my glossary are, depreciation and equity. These seem to be terminologies I see in the business world as well as everyday life that I think people should become familiar with.
Once I gained more knowledge about the business world and felt myself become a bit more comfortable with what I was learning, the terminology became easier to understand. When I first saw “forecast” being used in an article, my brain quickly assumed the author was talking about the weather for the upcoming week. Come to find out, that is a popular business termed used very frequently by companies managing for the future. This term is a planning tool that helps administer coping methods for businesses dealing with the uncertainty of the future. Forecasting relies on data from the past and present trends within the company. The next word, depreciation means a decrease in value. It is often difficult to understand and I still do not have a full grasp on the meaning quite yet. Depreciation is an accounting method used for observing assets and their value. It can also be used to allocate the number of costs a company has to spend. And lastly, I would like to talk about equity. This is another term I see used a lot that I am not totally confident in the definition. In the public health world, I am somewhat familiar with what equity means however, I know, much like forecast, it takes on a whole new definition in the business world. Equity means ownership or holding stock within a company. To explain this simply, it is the amount of money you will receive after selling your company and paying back all debts that are owed. In other words, it is how much money invested belongs to you. I think a lot of the words used in the business world can get very confusing, and some intertwine with others. We have seen that directly with forecast and equity. If I had not done research of my own, I would have gotten a very different understanding of the articles using those terms. It is very important to expand your vocabulary knowledge to understand other areas of information.
Forecast: Forecasting is the use of historic data to determine the direction of future trends.
Depreciation: Depreciation is an accounting method of allocating the cost of a tangible asset over its useful life.
Equity: Ownership interest or claim of a holder of common stock (ordinary shares) and some types of preferred stock (preference shares) of a company.