💹 Business & Finance · Vocabulary for Specific Fields · 150 words

🃏 Learn this set with free flashcards →

revenue n	money a company receives from selling goods or services Revenue rose by twelve percent in the third quarter.
profit n	money left after all costs are paid The company made a record profit last year.
gross profit n	revenue minus the direct cost of goods sold Gross profit improved significantly after we changed our main raw material suppliers.
net income n	total profit after all expenses and taxes Net income fell because of higher interest costs.
profit margin n	profit shown as a percentage of revenue Luxury products have a much higher profit margin.
loss n	money lost when costs are greater than income The branch reported a loss for the second year in a row.
break-even point n	the level of sales where income equals costs The new store should reach its break-even point within eighteen months.
turnover n	total sales in a period; the rate at which staff leave High staff turnover is increasing our training costs.
expense n	money spent to run a business Travel expenses must be approved by your manager.
fixed cost n	a cost that does not change with production levels Office rent is the largest fixed cost in our monthly budget.
variable cost n	a cost that changes with the amount produced Raw materials are a variable cost for the factory.
overhead n	regular business costs not linked to a specific product Moving to a smaller office cut our overhead.
budget n	a plan for how much money will be spent The marketing budget was cut by ten percent.
forecast n	a prediction of future results based on data The sales forecast for next year looks optimistic.
cash flow n	the movement of money into and out of a business Late payments from clients caused cash flow problems.
balance sheet n	a financial statement showing assets, liabilities and equity The balance sheet shows the company has little debt.
income statement n	a report of revenue, expenses and profit over a period Investors studied the income statement before the meeting.
financial statement n	a formal record of a company’s financial activities All listed companies must publish an audited financial statement every year.
asset n	something of value owned by a company or person The firm sold some assets to pay off its loans.
liability n	money a company owes; legal responsibility Current liabilities include unpaid supplier invoices and short-term bank loans.
equity n	the value of a company owned by its shareholders The founders still hold most of the equity.
capital n	money or assets used to start or grow a business The startup raised capital from three investors to expand into new cities.
working capital n	current assets minus current liabilities The company needs more working capital to buy stock for the holidays.
depreciation n	the gradual loss in value of an asset over time Depreciation on the delivery vans is recorded every month.
accounting n	the work of keeping and checking financial records She has worked in accounting for over ten years.
accountant n	a person whose job is to keep financial records Our accountant prepares the tax return every spring.
bookkeeping n	recording daily financial transactions Many small firms outsource their bookkeeping to save time and money.
audit n	an official check of a company’s financial records The annual audit found no serious problems in the company accounts.
auditor n	a person who checks financial records officially The auditor asked for copies of all bank statements.
accounts payable n	money a company owes to its suppliers Accounts payable processes all supplier invoices every Friday afternoon.
accounts receivable n	money that customers owe to a company Accounts receivable grew because customers are paying late.
invoice n	a document asking for payment for goods or services Please send the invoice to our finance department.
receipt n	a document showing that payment was received Keep the receipt to claim your travel expenses.
tax n	money paid to the government based on income or sales The new tax law affects small business owners.
value-added tax n	a tax added at each stage of production and sale All prices on the menu include value-added tax.
corporate income tax n	a tax on the profits of companies The government lowered corporate income tax for startups.
fiscal year n	a twelve-month period used for accounting Our fiscal year ends on the thirty-first of March.
quarter n	a three-month period of a financial year Sales were unusually strong in the first quarter thanks to the holiday season.
bank n	an institution that keeps and lends money We opened a business account with a local bank.
central bank n	a national bank that controls money supply and interest rates The central bank raised interest rates to control inflation.
interest rate n	the percentage charged for borrowing money Lower interest rates encouraged many companies to borrow for new projects.
loan n	money borrowed that must be paid back with interest The bakery took out a loan to buy new ovens.
mortgage n	a loan used to buy property, secured on that property They took a twenty-year mortgage to buy the warehouse.
collateral n	property promised to a lender in case a loan is not repaid The bank required the factory as collateral for the loan.
credit n	an arrangement to receive goods or money now and pay later The supplier gave us thirty days of credit.
credit rating n	an assessment of how likely a borrower is to repay A poor credit rating makes borrowing more expensive.
debt n	money that is owed to someone else The company plans to reduce its debt by half.
default v	to fail to repay a loan on time Several property developers defaulted on their bonds during the market downturn.
bankruptcy n	the legal state of being unable to pay debts The retailer filed for bankruptcy after years of losses.
liquidity n	how easily assets can be turned into cash Banks must keep enough liquidity to meet withdrawals.
inflation n	a general rise in prices over time Inflation has increased the cost of raw materials.
exchange rate n	the value of one currency compared with another A weaker exchange rate made our exports cheaper for foreign buyers.
currency n	the money used in a particular country Contracts with foreign partners are usually paid in US currency.
stock market n	a market where shares of companies are bought and sold The stock market fell sharply after the announcement.
stock exchange n	an organized place where shares are traded The company is listed on the Ho Chi Minh City Stock Exchange.
share n	one of the equal parts that a company’s ownership is divided into The fund bought ten thousand shares in the bank.
shareholder n	a person or company that owns shares in a business Shareholders will vote on the merger next month.
dividend n	a share of profit paid to shareholders The board announced a cash dividend of ten percent.
bond n	a debt certificate that pays interest to the holder The city issued bonds to fund a new bridge.
portfolio n	a collection of investments held by a person or fund She keeps a balanced portfolio of shares and bonds.
investment n	money put into something to make a profit Foreign investment in the region doubled last year.
investor n	a person or organization that invests money Investors were pleased with the strong results announced at the annual meeting.
return on investment n	the profit from an investment compared with its cost The training program delivered a high return on investment.
venture capital n	money invested in new companies with high growth potential The app developer secured venture capital from two funds.
initial public offering n	the first sale of a company’s shares to the public The initial public offering raised two hundred million dollars.
market capitalization n	the total market value of a company’s shares The bank has the largest market capitalization on the exchange.
valuation n	an estimate of how much a company or asset is worth The startup reached a valuation of one billion dollars.
diversification n	spreading investments or business activities to reduce risk Diversification into tourism helped the group survive the crisis.
risk management n	identifying and reducing risks to a business The bank strengthened its risk management after the losses.
hedge v	to protect against financial loss by making another investment Exporters hedge against changes in the exchange rate.
merger n	the joining of two companies into one The merger created the largest telecom group in the country.
acquisition n	the purchase of one company by another The acquisition gave the firm access to new markets.
subsidiary n	a company controlled by another company The bank set up a subsidiary to handle insurance.
joint venture n	a business project run by two or more companies together The two firms formed a joint venture to build a power plant.
partnership n	a business relationship or firm owned by partners The partnership with the airline boosted hotel bookings.
sole proprietorship n	a business owned and run by one person He started the bakery as a sole proprietorship.
limited liability company n	a company whose owners are only liable up to their investment They registered a limited liability company with two members.
joint-stock company n	a company whose capital is divided into shares The state firm was converted into a joint-stock company.
startup n	a newly established business, often with growth ambitions The startup developed an app for booking repair services.
entrepreneur n	a person who starts and runs a business The young entrepreneur opened three cafés in two years.
business plan n	a document describing a business’s goals and how to reach them Investors asked to see a detailed business plan.
business model n	the way a company creates value and earns money Their business model relies mainly on monthly subscriptions from corporate customers.
stakeholder n	a person or group affected by a business’s actions The project manager meets key stakeholders every month.
board of directors n	a group elected to oversee a company’s management The board of directors approved the new strategy.
chief executive officer n	the highest-ranking manager in a company The chief executive officer presented the annual results.
corporate governance n	the rules and practices by which a company is controlled Good corporate governance builds investor confidence and attracts long-term capital.
strategy n	a long-term plan to achieve goals The company changed its strategy to focus on online sales.
competitive advantage n	a feature that makes a company better than its rivals Low production costs give us a competitive advantage.
market share n	the percentage of a market controlled by one company The brand increased its market share to twenty percent.
market research n	collecting information about customers and competitors Market research showed strong demand for healthy snacks.
target market n	the group of customers a company aims to sell to Our target market is young professionals in big cities.
segmentation n	dividing a market into groups with similar needs Customer segmentation helped the marketing team design better offers for each group.
brand n	a name and identity that distinguishes a product or company The brand has become very popular among teenagers in large cities.
marketing n	activities to promote and sell products She works in digital marketing for a fashion company.
advertising campaign n	a planned series of advertisements with one goal The advertising campaign increased sales by thirty percent.
promotion n	activities to increase sales; moving to a higher job The summer promotion offers two products for the price of one.
customer n	a person or business that buys goods or services Our customers can now pay with a mobile wallet.
customer retention n	keeping existing customers over time The new loyalty program improved customer retention by fifteen percent.
customer relationship management n	managing interactions with customers, often using software Sales staff log every call in the customer relationship management system.
supply chain n	the network of companies involved in producing and delivering goods The flood disrupted the supply chain for electronic parts.
logistics n	organizing the movement and storage of goods The company outsources its logistics to a specialist firm.
inventory n	goods a business holds for sale or production We reduced inventory before the year end to free up cash.
procurement n	the process of buying goods and services for an organization All large purchases must go through the procurement department.
supplier n	a company that provides goods to another business We signed a contract with a new packaging supplier.
wholesale adj	relating to selling goods in large amounts to retailers Wholesale prices for rice rose sharply this month because of poor harvests.
retail n	selling goods directly to the public He has fifteen years of experience in retail.
distribution channel n	the route by which products reach customers Online shopping is now our main distribution channel.
e-commerce n	buying and selling goods online E-commerce sales grew rapidly during the holiday season.
import n	goods brought into a country from abroad Imports of industrial machinery increased by twenty percent last year.
export n	goods sold to another country Coffee remains one of the most valuable agricultural exports of Vietnam.
tariff n	a tax on imported or exported goods The government reduced tariffs on electric vehicles to encourage green transport.
customs n	the government office that checks goods entering a country The shipment of spare parts is still waiting for customs clearance at the port.
free trade agreement n	a deal between countries to reduce trade barriers The free trade agreement removed tariffs on most farm products.
letter of credit n	a bank guarantee that a seller will be paid The buyer opened a letter of credit with a Singapore bank.
pricing n	deciding the price of goods or services Competitive pricing helped us win the government supply contract last month.
discount n	a reduction in the usual price Regular customers receive a five percent discount on all orders over ten units.
quotation n	a document stating the price for a job or goods Please send us a quotation for five hundred units.
purchase order n	an official document a buyer sends to order goods The supplier shipped the goods after receiving our purchase order.
contract n	a legal agreement between two or more parties Both sides signed the distribution contract on Friday after long negotiations.
negotiation n	discussion to reach an agreement Negotiations with the trade union over wages lasted almost three weeks.
deadline n	the latest time by which something must be done The deadline for submitting bids is next Monday.
human resources n	the department that manages staff and recruitment Human resources will contact you about the job offer.
recruitment n	finding and hiring new employees Recruitment of engineers is our top priority this year.
payroll n	the list of employees and the wages paid to them Payroll is processed on the twenty-fifth of each month.
salary n	fixed regular pay for a job The starting salary for engineering graduates at our firm is very competitive.
bonus n	extra money paid for good performance Staff received a year-end bonus of one month’s salary.
key performance indicator n	a measurable value showing progress toward a goal Customer satisfaction is a key performance indicator for the team.
productivity n	the rate at which goods or work are produced New software increased productivity in the accounts team.
outsourcing n	paying another company to do work previously done in-house Outsourcing customer support to a specialist firm reduced our operating costs.
economies of scale n	lower costs per unit as production increases Large retailers benefit from economies of scale when buying from suppliers.
supply and demand n	the relationship between availability and desire for goods Prices are set by supply and demand in the market.
gross domestic product n	the total value of goods and services a country produces Gross domestic product grew by six percent last year.
recession n	a period when economic activity falls significantly Many companies cut jobs and froze hiring during the last recession.
monetary policy n	actions by a central bank to control money and interest rates Tighter monetary policy slowed down bank lending to property developers.
fiscal policy n	government decisions on taxes and public spending The government used fiscal policy to support small firms.
commodity n	a raw material or farm product that is traded Commodity prices such as oil and rice have risen.
securities n	financial assets such as shares and bonds The firm is licensed by the state commission to trade securities.
brokerage n	the business of buying and selling for clients She opened an account with an online brokerage.
insurance n	an arrangement that pays you if something bad happens The warehouse has insurance against fire and flood.
premium n	the amount paid regularly for insurance Premiums rose after the company made several claims.
fintech n	technology used to provide financial services Fintech apps have made payments between small businesses much faster and cheaper.
transaction n	an act of buying, selling or transferring money Each transaction is recorded automatically in the accounting system.
bank transfer n	moving money from one bank account to another Please pay the thirty percent deposit by bank transfer before Friday.
deposit n	money put into a bank, or paid in advance A deposit of thirty percent is required to confirm the order.
due diligence n	careful investigation before a deal or investment The buyer completed due diligence before signing the deal.
corporate social responsibility n	a company’s commitment to act ethically and help society The bank funds schools as part of its corporate social responsibility program.
benchmark n	a standard used to compare performance Our logistics costs are now well below the industry benchmark.
revenue stream n	a source from which a business earns money Advertising is a new revenue stream for the app.
cost of goods sold n	the direct cost of producing the goods a company sells Cost of goods sold rose because of higher prices for imported materials.
interest n	money paid for the use of borrowed money The company paid two billion dong in interest on its bank loans last year.