terminologies used in business

1. BBA PART II
Technical Words Used in
Business
Assignment By Sir Syed Wasif Kazmi
Assigned to Mubashir Hassan Rajput
[Pick the date]

2. Technical Difference in words in Business

3. Difference between Factory and Industry
Key difference:
 Industry is the production of material or service products that contribute to an
economy.
 A factory is a building where the actual manufacturing of the product takes place.
Difference between a Company, Organization, Industry, Firm, Corporation and
Business.
 A company is any form of business whether it is small or large.
Generally the term "company" indicates a particular kind of business dealing in a
specific product.
 An organization is the larger form and generally comprises of a
number of companies. Simply, a company is an organization, but an organization is
not just a company.
 An industry is the combination of companies in same line of
business.
 Firm, corporation and business are synonyms of "company".
They are all related but in different categories.
This is how they are related:
 Industry
 Organization
 Company; Profit Organization ("Business")
 Corporation ("Co.")
 Public Limited ("Ltd")
 Private Limited ("Pte Ltd")
 Incorporated ("Inc.")
 Trust company
 Agency
 Firm
 Partnership
 Limited Liability Company ("LLC")
 Limited Liability Partnership ("LLP")
 Non-profit
 Charity
 Foundation

4. Difference between Oral and Verbal
 Verbal applies to everything that is turned into words. It doesn't matter if these
are written words or spoken ones.
 Oral, on the other hand, has nothing to do with written words. In the context of
language it refers to anything that is spoken.
Simply put:
 Verbal = words, written and spoken
 Oral = anything spoken
Difference b/w private ltd and public Ltd.
A private company:
 does not offer stock to the general public
 is usually referred to as “closely-held” because stockholders are typically the
founders, family members, and/or employees
 has no duty to disclose finances to the public & avoids the SEC
A public company:
 can generate a great deal of financing by selling stock to the general public, which
is traded on an exchange
 must abide by numerous SEC reporting requirements
 has separation between ownership and control of the company
Difference between Customer and Client
 Customer: a person who purchases goods or services from another; buyer; patron.
 Client: a person or group that uses the professional advice or services of a lawyer,
accountant, advertising agency, architect, etc.
Difference between Aim and Goal
Goal is a set target that a person wants to achieve, while Aim is the determined course a
person sets to achieve a target.

5. Difference between Management and Administration
Administration frames the objectives and policies of an organization. Management
implements these policies and objectives.
Key Differences between HRM and HRD
Human Resource Management refers to the application of principles of management to
manage the people working in the organization. Human Resource Development means a
continuous development function that intends to improve the performance of people working
in the organization.
Key Differences between Training and Development
Training is a learning process for new employees in which they get to know about the key
skills required for the job. Development is the training process for the existing employees for
their all round development.
Differences between Personnel Management and Human Resource Management:
The part of management that deals with the workforce within the enterprise is known as
Personnel Management. The branch of management, which focuses on the best possible
use of the enterprise’s manpower, is known as Human Resource Management.
Key Differences between Recruitment and Selection
Recruitment is the process of finding candidates for the vacant position and stimulating them
to apply for it. The selection means picking up the best candidate from the list of applicants
and offering them the job.
Differences between internal and external recruitment:
Internal Recruitment refers to a source of recruiting manpower which already exists within
the organization. External Recruitment is a little different as it involves the hunting of
prospective employees from outside the organization.
Differences between Public and Private Ltd. Company
The public company refers to a company that is listed on a recognized stock exchange and
traded publicly. A Private Ltd. the company is one that is not listed on a stock exchange and
is held privately by the members.
Differences between Sole Proprietorship and Partnership
When the business is owned and managed by a single person exclusively, it is known as the
sole proprietorship. The partnership is the business form in which the business is carried on
by two or more persons and they share profits and losses mutually.
Differences between Entrepreneur and Manager
A person, who creates an enterprise, by taking a financial risk in order to get profit, is called
an entrepreneur. An individual who takes the responsibility of controlling and administering
the organization is known as a manager.
Differences between Price, Cost and Value
Price is what you pay for goods or services you acquire; Cost is the amount of inputs
incurred in producing a product and Value is what goods or services pay you i.e. worth.

6. Differences between Market and Marketing
The market is defined as a physical or virtual set up where the buyers and seller need to
precede exchange of goods and services. Marketing is a set of activities that identifies,
creates, communicates and supplies consumer needs.
Differences between Customer and Client
A person who purchases goods and services, from the company is known as the Customer.
Client refers to someone who seeks professional services from the company.
Differences between Invention and Innovation
The occurrence of an idea for a product or process that has never been made before is
called the invention. The implementation of the idea for product or process for the very first
time is called innovation.
Differences between Faculty and Staff
The faculty is described as a group of teachers who impart education to the students in
school or college. In general terms, staff implies an entire group of people, employed by the
organization.
Differences between Management and Administration
Management is a systematic way of managing people and things within the organization.
The administration is defined as an act of administering the whole organization by a group of
people.
Differences between Planning and Strategy
Planning is anticipation and preparation in advance, for the uncertain future events. The
strategy is the best plan chosen among the various alternatives for the accomplishment of
objectives.
Differences between Leadership and Management
Leadership is a virtue of leading people through encouraging them. Management is a
process of managing the activities of the organization.
Differences between Motivation and Inspiration
Motivation refers to a process of stimulating someone to act in a definite way to achieve a
goal. Inspiration is defined as an act of influencing people mentally and emotionally to do
something creative.
Differences between Job and Work
Activity, performed by an individual for consideration, is called a job. Any activity that
involves physical or mental strain, so as to accomplish a goal, is called work.
Differences between Copyright and Trademark
Copyright is the rights of the creator or the rightful owner of his intellectual property, which
prevents others from publishing or copying the original piece of work. Anything which

7. recognizes the brand identity and separates a product or service from those of the
competitors is known as the Trademark.
Differences between Guidance and Counseling
Advice or a relevant piece of information given by a superior, to resolve a problem or
overcome from difficulty, is known as guidance. Counseling refers to a professional advice
given by a counselor to an individual to help him in overcoming from personal or
psychological problems.
Differences between Job Analysis and Job Evaluation
The process in which an in-depth examination is performed to gather information about
every minute detail about a particular job is known as Job Analysis. Job Evaluation is a
process of determining the importance of a particular job in relation to the other job of the
organization.
Differences between Job Description and Job Specification
Job Description is a descriptive statement that describes the role, responsibility, duties, and
scope of a particular job. Job Specification states the minimum qualifications required for
performing a particular job.
Differences between Coordination and Cooperation
The systematic arrangement and synchronization of different elements of management so
as to ensure, smooth functioning, is known as coordination. The act of working jointly or
complying with standards, for the realization of common goals, is called cooperation.
Differences between Personnel Management and Human Resource Management
The part of management that deals with the workforce within the enterprise is known as
Personnel Management. The branch of management, which focuses on the best possible
use of the enterprise’s manpower, is known as Human Resource Management.
Differences between Public Sector and Private Sector
Public Sector is a part of the country’s economy where the control and maintenance are in
the hands of Government. If we talk about Private Sector, it is owned and managed by the
private individuals and corporations.
Differences between Accounting and Auditing
Accounting is an art of orderly, keeping the records of the monetary transactions and
preparation of the financial statements of the company. Auditing is an analytical task which
involves the independent evaluation of the financial information to express an opinion on
true and fair view.
Differences between Strategy and Policy
The strategy is the best plan opted from a number of plans, in order to achieve the
organizational goals and objectives. The policy is a set of common rules and regulations,
which forms as a base to take the day to day decisions.
Differences between President and CEO
Chief Executive Officer or CEO is the top most people in the organizational hierarchy, who is
responsible for the overall vision, strategy, and financial soundness of the organization.

8. President is the top level officer of the organization who is responsible for management of
operations and implementation of strategies successfully.
Differences between Agreement and Contract
Promises and commitments forming consideration for the parties to the same consent is
known as an agreement. The agreement, which is legally enforceable, is known as a
contract.
Differences between Democracy and Republic
Democracy is defined as a political system which is made by/of/for the people. The republic
is the representative democracy with the chief of the state known as president.
Differences between Capitalism and Socialism
The economic system, in which the trade and industry are owned and controlled by private
individuals, is known as Capitalism. Socialism, on the other hand, is also an economic
system, where the economic activities are owned and regulated by the state itself.
Differences between Democracy and Republic
Democracy is defined as a political system which is made by/of/for the people. The republic
is the representative democracy with the chief of the state known as president.
Differences between Economic Growth and Economic Development
Economic growth is the positive change in the real output of the country in a particular span
of time economy. Economic Development involves a rise in the level of production in an
economy along with the advancement of technology, improvement in living standards and so
on.
Differences between Supervisor and Manager
The supervisor is someone who oversees the employees and regulates them to work
assigned to them. A manager is a person who manages the resources of the whole
organization and the organization as well.
Differences between Salary and Wages
Salary is the fixed amount of compensation which is paid for the performance of an
employee. Wage is the variable amount of compensation which is paid on the basis of hours
spent in finishing a certain amount of work.
Differences between Boss and Leader
Boss is a person in charge at the office who gives the order to employees and behaves in
an authoritative way, seeks control and tells his men what to do. A leader is a person who
leads other by influencing, inspiring, supporting and encouraging a group of individuals, and
works continuously on the achievement of the goal.

9. Differences between Power and Authority
Power is defined as the ability or potential of an individual to influence others and control
their actions. Authority is the legal and formal right to give orders and commands, and take
decisions.
Differences between Occupation and Profession
An activity performed by a person normally for monetary compensation is known as the
Occupation. Profession refers to vocation, in which high degree of education or skills is
required.
Differences between Planning and Strategy
Planning is anticipation and preparation in advance, for the uncertain future events. The
strategy is the best plan chosen among the various alternatives for the accomplishment of
objectives.
Differences between Customer and Consumer
The person who buys the goods or services from a seller is known as the Customer. The
person who uses the goods or services is known as a Consumer.

10. Differences between Power and Authority
Power is defined as the ability or potential of an individual to influence others and control
their actions. Authority is the legal and formal right to give orders and commands, and take
decisions.
Differences between Occupation and Profession
An activity performed by a person normally for monetary compensation is known as the
Occupation. Profession refers to vocation, in which high degree of education or skills is
required.
Differences between Planning and Strategy
Planning is anticipation and preparation in advance, for the uncertain future events. The
strategy is the best plan chosen among the various alternatives for the accomplishment of
objectives.
Differences between Customer and Consumer
The person who buys the goods or services from a seller is known as the Customer. The
person who uses the goods or services is known as a Consumer.