Group 1: Words related to Business
The world of business is an intricate world, and this intricate world has its own set of vocabulary that it uses in accounting, planning, processes, management and all other aspects. Knowledge of business-related words is essential for all the aspiring entrepreneurs, businessmen and businesswomen. In this list, we explore a set of 13 basic business terms that you should be aware of:
- Accruals: The act of accumulating, something accrued; accretion.
- Arbitration: The hearing and determining of a dispute or the settling of differences between parties by a person or persons chosen or agreed to by them
- Bottomline: The last line of a financial statement, used for showing net profit or loss, the ultimate result; outcome.
- Collateral: Security pledged for the payment of a loan, accompanying; auxiliary
- Copyright: The exclusive right to make copies, license, and otherwise exploit a literary, musical, or artistic work, whether printed, audio, video, etc.
- Cubicle: A small space or compartment partitioned off.
- Inflation: Persistent, substantial rise in the general level of prices related to an increase in the volume of money and resulting in the loss of value of currency
- Monopoly: Exclusive control of the market supply of a product or service
- Overhead : The general, fixed cost of running a business, as rent, lighting, and heating expenses, which cannot be charged or attributed to a specific product or part of the work operation.
- Recruit: To enlist persons for service in one of the armed forces, to engage in finding and attracting employees, new members, students, athletes, etc.
- Tariff: An official list or table showing the duties or customs imposed by a government on imports or exports, bill; cost; charge.
- Venture: A business enterprise or speculation in which something is risked in the hope of profit; a commercial or other speculation.
- Yield: To give a return, as for labor expended; produce; the income produced by a financial investment, usually shown as a percentage of cost.
Group 2: Words & Terms related to Economics
Economics is one area that dictates your understanding of the financial dealings in the world. Amassing a word-bank pertaining to economics will no doubt ensure that you understanding the world of finance, business and economics a lot better. Through this list, we illustrate a list of 15 common words for the area:
- Balance of payments: The total of all the money coming into a country from abroad less all of the money going out of the country during the same period.
- Business Cycle: The cycles of boom and bust. The long-run pattern of economic growth and recession.
- Capital: Material wealth used or available for use in the production of more wealth.
- Deflation: A sustained reduction in the general price levels. Deflation is often accompanied by declines in output and employment and is distinct from 'disinflation', which refers to a reduction in the rate of inflation.
- Depreciation: A fall in the value of an asset or a currency; the opposite of appreciation.
- Economies of scale: Bigger is better. In many industries, as output increases, the AVERAGE cost of each unit produced falls. One reason is that overheads and other FIXED COSTS can be spread over more units of OUTPUT. However, getting bigger can also increase average costs because it is more difficult to manage a big operation, for instance?
- Exchange rate: The price at which one currency can be converted into another.
- Factors of production: The ingredients of economic activity: land, labour, capital and enterprise.
- Foreign direct investment: Investing directly in production in another country, either by buying a company there or establishing new operations of an existing business.
- GDP: Gross domestic product, a measure of economic activity in a country. It is calculated by adding the total value of a country's annual output of goods and services. GDP = private consumption + investment + public spending + the change in inventories + (exports - imports).
- GNP: Short for gross national product, another measure of a country's economic performance. It is calculated by adding to GDP the income earned by residents from investments abroad, less the corresponding income sent home by foreigners who are living in the country.
- Hedge funds: A fund, usually used by wealthy individuals and institutions, which is allowed to use aggressive strategies that are unavailable to mutual funds, including selling short, leverage, program trading, swaps, arbitrage, and derivatives.
- Inflation: Persistent increase in the general level of prices. It can be seen as a devaluing of the worth of money.
- Paid-Up Capital: That part of the issued capital of a company that has been paid up by the shareholders.
- Venture capital: Money made available for investment in innovative enterprises or research, especially in high technology, in which both the risk of loss and the potential for profit may be considerable. Also called risk capital.
Vocabulary Preparation Series