Top 25 Terms to Know Before Setting up a Business


If the business wants to be set, it will require knowledge and skills of certain things and terms so that you can understand how such a business works. The following are some of the terms to know in order to organize a business.


1. Bonus 

A bonus is a reward, financial or otherwise, that may be given to a worker as an instantaneous, periodic, one-time, or continuous reward for fulfilling a certain role or obligation. Bonuses are given at the discretion of the Company and can be discontinued without prior notification.

2. Business Representative

The Business Representative is the tactical team that works with a business to take the company’s products and services to the target customers and clientele.

3. Commission

A commission is a reward, usually financial, but may be otherwise, that is given to the worker as a share of profit/ potential profit for his effort towards the facilitation or execution of a project. A non-financial commission may in some cases, if practicable, be monetized to the worker.

4. Consultancy

 This refers to any expert advice on the service value chain for which a person, company, or organization is paid to offer.

5. Consultant

 He/she is a person who is a specialist in any aspect of services and is employed temporarily or permanently to provide advice and support to others in such areas of specialty.

6. Cycle

A cycle shall refer to the gestation period of any livestock or plant, that is, from the period of stocking up to the period of maturity and sales to the market.

7. Loss

Loss shall be the total or mitigated loss accrued to the Company within the period of review

8. Payment Agent

A payment agent is anyone authorized by the business to process the payment on behalf of the Company for the users. Only Business Representatives have this privilege on their accounts.

9. Products

A product is any product to which value has been added in any way, especially through processing.

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10. Profits

A profit shall be and only be the profit gained from the business or the net pay that has been subtracted from the gross income.

11. Projects

The definition of projects will be limited to the various works embarked on regardless of location in Nigeria.

12. Representatives

The Representative Manager is a member of staff of any organization that manages and coordinates the affairs of the company or organization.

13. Services

The term services shall include all services that the company or business is offering to the public.

14. Sponsor

A sponsor is an individual, company, organization, group, or cooperative that forms an entity, shows interest in the projects of any company, and is ready to provide a financial commitment to the projects for a pre-agreed reward, which may be financial, material, or otherwise.

15. State/Business Representative

The State Representative is a person specially recruited and approved to represent a company in his or her jurisdiction.

A cycle shall refer to the gestation period of any livestock or plant, that is, from the period of stocking up to the period of maturity and sales to the market.

16. Subscription

The word subscription shall mean the agreement to and financial commitment of a sponsor to any of the company’s projects and services.

17. Wallet

The wallet is a web-based/ virtual fund-holding vault, in which a user’s virtual fund is kept. A company’s account holder can only spend or withdraw the fund in his wallet.

18. Jurisdiction

The word Jurisdiction shall mean the geographical area, to which a State Representative is attached, where he can freely exercise his authority and in some cases, exclusivity.

19. Agreement

The agreement is the document that establishes the legal relationship between two or more parties in business.20.

20. Hand Book 

The Handbook is a document that highlights the roles and responsibilities of the employees and provides certain guidance. The company retains the right to review the document without prior notification. The employee hereby agrees to be guided by the provisions of this document.

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21. Product Handbook 

The Product Handbook is the document that introduces a new product and explains the terms and conditions for promoting such products. Each Product released by the company shall have the Product Handbook to provide guidance to the employees.

22. Training Materials 

The Company shall, when necessary, provide training materials for the employees to enable them to conduct training effectively in and out of their respective companies.

23. Addendum 

As the Company and the business clime evolve, the Company may provide addenda to address areas of ambiguities or silence in this agreement. The provisions of such addenda shall be as binding as those contained in this agreement.

24. Other Guiding Documents

The Company publishes more guides and regulatory documents in respect of other future activities and events. The provision of these new documents shall be binding on the employees in respect of the new activities, events, projects, or products as the case may be.

25. Business Representatives of an organization

Business Representatives shall be assigned to a jurisdiction where they are to exercise their freedom and authority. However, there shall be no jurisdiction over the use of the Internet or other electronic means of recruitment and operations.

A Business Representative may if needed, cross jurisdictions within his State to carry on his business without punitive measures.

While operating outside the limit of the assigned jurisdiction, a crossing Business Representative shall have respect to the clients and values of the local Business Representative within the jurisdiction.

Nothing in this agreement authorizes a Business Representative to use violence, or other uncivilized approaches to defend his jurisdiction, or vice versa.

A Business Representative may, if necessary request for transfer of jurisdiction if travelling out of State and wishes to continue in his new location. Approval of such request is at the discretion of the Company.

When using the Company’s identity, the Business Representative understands that the reputation of the Company is of importance and as such agrees as follows:

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To provide high-quality service and delivery to clients in accordance with the minimum standard required by a Company

To deliver only high standard values to clients and customers with due regard to the Standing Operating Procedures of an organization

To do all things necessary to protect the reputation and integrity of the Company in all his dealings

To deal in accordance with the provision of this document regarding activities under the identity of the Company

Not to use the identity of the Company in any activity that may be deemed as fraudulent, uncivilized, anti-governmental, promoting religious, ethnic, or political bigotry or illegal business and investments.

Not to engage in cash transactions in the name of an organization, except when authorized by written documents and insured accordingly by another Company.

Not to maltreat or be rude or violent towards other Business Representatives, clients, and partners.

Non-compliance with the provisions above, and other provisions as may be contained in the future addendum, and other regulatory documents that the Company may issue with respect to the use of the Company’s Identity

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