⭐ Acquisition: The act of acquiring or gaining possession. Example: The tech giant made an acquisition of a startup specializing in AI.

⭐ Benchmark: A standard or reference point for comparison. Example: The company’s profits set a new benchmark for competitors.

⭐ Capital: Wealth in the form of money or assets. Example: The entrepreneur secured the necessary capital to launch her business.

⭐ Diversify: To spread or distribute investments. Example: It’s wise to diversify your investment portfolio to minimize risk.

⭐ Entrepreneur: An individual who starts and runs a business. Example: The young entrepreneur launched his third startup this year.

⭐ Franchise: A right or license granted to an individual or group to market a company’s products. Example: She opened a fast-food franchise in the city center.

⭐ Gross: Total revenue before any deductions or allowances. Example: The company’s gross earnings exceeded expectations.

⭐ Hedge: An investment made to reduce the risk of price movements in an asset. Example: Many investors use gold as a hedge against inflation.

⭐ Inflation: The rate at which general price levels rise, eroding purchasing power. Example: Central banks aim to keep inflation within a target range.

⭐ Joint Venture: A commercial enterprise jointly undertaken by two or more parties. Example: The two corporations entered into a joint venture to explore new markets.

⭐ Kinetics: Relating to the motion of objects and the forces associated with them. Example: Business kinetics examines the movement and flow of businesses in an economy.

⭐ Liability: A company’s legal financial debts or obligations. Example: Current liabilities include short-term loans and outstanding invoices.

⭐ Monopoly: Exclusive possession or control of the supply or trade in a service or commodity. Example: The company held a virtual monopoly in the tech industry.

⭐ Niche: A specialized segment of the market. Example: The brand carved a niche for itself with its eco-friendly products.

⭐ Overhead: Ongoing business expenses not tied directly to creating a product or service. Example: Rent and utilities contribute to the company’s overhead.

⭐ Prospectus: A printed document describing the major features of a proposed venture. Example: Investors received a prospectus detailing the company’s expansion plans.

⭐ Quota: A limited quantity of something. Example: Sales representatives often work with monthly quotas.

⭐ ROI (Return on Investment): A measure of the profitability of an investment. Example: The ROI on their latest project was impressive.

⭐ Stakeholder: A person with an interest or concern in a business. Example: It’s vital to consider all stakeholder opinions when making a decision.

⭐ Turnover: The amount of money taken by a business in a particular period. Example: The annual turnover for the company was record-breaking.

⭐ Underwrite: To support or guarantee financial responsibility. Example: The bank agreed to underwrite the project.

⭐ Venture Capital: Financing given to startups and small businesses with long-term growth potential. Example: The software firm secured venture capital for its innovative product.

⭐ Wholesale: Selling goods in large quantities. Example: They run a wholesale business supplying retailers nationwide.

⭐ X-efficiency: The efficiency with which a firm translates its inputs into outputs. Example: Modern companies focus on improving their x-efficiency.

⭐ Yield: The income returned on an investment. Example: The bond offers an annual yield of 5%.

⭐ Zealot: Someone with an extreme passion for a particular cause or objective. Example: In business, a zealot can often drive a project with unmatched energy.

⭐ Arbitrage: The simultaneous buying and selling of assets in different markets to take advantage of differing prices. Example: Forex traders often use arbitrage strategies.

⭐ Blue Chip: A nationally recognized, financially sound, and well-established company. Example: Many investors prefer blue chip stocks for stability.

⭐ Commodities: Raw materials or primary products that can be bought or sold. Example: Oil and gold are two highly traded commodities.

⭐ Derivative: A financial contract whose value is derived from an underlying asset. Example: Options and futures are commonly traded derivatives.

⭐ Equity: Ownership interest in a corporation in the form of stocks. Example: He acquired more equity in the company after buying additional shares.

⭐ Fiduciary: A person who holds assets in trust for a beneficiary. Example: As a fiduciary, the manager must act in the best interest of the client.

⭐ Globalization: The process by which businesses develop international influence or operate on an international scale. Example: Globalization has made cross-border trade more accessible.

⭐ Horizontal Integration: Acquiring a business operating at the same level of the value chain. Example: The company’s horizontal integration strategy led to the acquisition of its competitor.

⭐ IPO (Initial Public Offering): The first sale of stock by a company to the public. Example: The startup’s IPO was highly anticipated in the financial markets.

⭐ Junk Bond: A high-yield, high-risk security. Example: Investors use junk bonds to achieve higher returns, albeit with higher risk.

⭐ Kickback: A return of part of a sum received as a result of pressure or agreement. Example: The contractor was accused of receiving kickbacks.

⭐ Liquidation: Converting assets into cash or cash equivalents. Example: The business went into liquidation after failing to pay its debts.

⭐ Mergers: The combining of two or more companies. Example: The merger between the two tech firms created a new industry giant.

⭐ Net Income: Total revenue minus expenses, taxes, and costs. Example: After all deductions, the company reported a solid net income.

⭐ Oligopoly: A market dominated by a small number of large suppliers. Example: The smartphone market is an oligopoly with a few major players.

⭐ Portfolio: A range of investments held by a person or organization. Example: A diversified portfolio reduces the risks of financial loss.

⭐ Qualitative Analysis: Analysis that deals with the intangible aspects of a business. Example: Beyond the numbers, qualitative analysis examined the company’s brand reputation.

⭐ Recessions: A period of temporary economic decline. Example: During recessions, consumer spending often declines.

⭐ Securities: Tradable financial assets such as stocks and bonds. Example: The broker offered a range of securities for investment.

⭐ Ticker: A system that displays stock prices in real-time. Example: The ticker at the bottom of the screen showed market fluctuations.

⭐ Usury: The illegal practice of lending money at unreasonably high rates of interest. Example: The loan shark was charged with usury.

⭐ Valuation: Estimating the worth of an asset or company. Example: The company’s valuation soared after a successful product launch.

⭐ White Collar: Relating to the work done or people who work in an office or other professional environment. Example: White collar jobs often involve managerial tasks.

⭐ Ex-dividend: A stock that is sold without the right to the next dividend payment. Example: The shares were traded ex-dividend today.

⭐ Yoy (Year-over-year): A comparison of a statistic for one period to the same period the previous year. Example: The company reported a 10% yoy growth in sales.

⭐ Zero-sum Game: A situation in which a gain for one side means an equal loss for the other. Example: In some negotiations, it feels like a zero-sum game where only one party can win.

⭐ Agile: A project management and product development approach that prioritizes flexibility and collaboration. Example: Many software companies have adopted agile methodologies to improve product delivery.

⭐ Brand Equity: The value and strength of a brand in the market. Example: Strong advertising campaigns have significantly boosted their brand equity.

⭐ Cost-Benefit Analysis: A process used to measure the benefits of a decision or action against its costs. Example: Before investing in new equipment, they conducted a cost-benefit analysis.

⭐ Downturn: A decline in economic, business, or related activity. Example: The industry faced a downturn due to external market factors.

⭐ Escrow: A bond or deed kept in the custody of a third party and taking effect only when a specified condition has been fulfilled. Example: The funds were kept in escrow until the deal was finalized.

⭐ Forward Integration: A business strategy that involves a form of vertical integration whereby business activities are expanded to include control of the direct distribution of its products. Example: The manufacturer pursued forward integration by opening its retail outlets.

⭐ Gearing: The relationship between a company’s debt and its equity capital, often expressed as a percentage. Example: The company has a low gearing ratio, indicating minimal debt.

⭐ Hostile Takeover: An acquisition attempt that the targeted firm resists. Example: The larger corporation attempted a hostile takeover of its competitor.

⭐ Inventory Turnover: The number of times inventory is sold or used in a specific period. Example: High inventory turnover indicates robust sales.

⭐ Just in Time (JIT): An inventory system where items are produced or acquired only when needed. Example: JIT systems reduce inventory holding costs.

⭐ Key Account: A primary customer that plays a significant role in the business’s revenues. Example: Dedicated managers handle the company’s key accounts.

⭐ Legacy Systems: Older computer systems, programming languages, or application software. Example: The bank still relies on some legacy systems which they aim to phase out.

⭐ Marginal Cost: The cost of producing one additional unit of a product. Example: Understanding marginal cost helps in pricing decisions.

⭐ Niche Market: A specialized market segment catering to a specific audience. Example: Vegan ice-cream caters to a niche market.

⭐ Overhead Costs: All ongoing business expenses not directly related to making a product. Example: Rent and salaries are part of the company’s overhead costs.

⭐ Procurement: The action of obtaining or procuring something. Example: The department is responsible for the procurement of raw materials.

⭐ Quality Control (QC): Ensuring products meet the desired specifications and standards. Example: Regular inspections are part of the company’s QC process.

⭐ Redemption: The action of buying one’s own shares back. Example: The company announced the redemption of its remaining preferred stock.

⭐ Sunk Cost: A cost that has already been incurred and cannot be recovered. Example: Past advertising expenses are a sunk cost.

⭐ Tangible Assets: Physical assets like buildings, machinery, and equipment. Example: The company’s tangible assets are listed on its balance sheet.

⭐ Underlying Asset: The financial instrument upon which derivatives are based. Example: The underlying asset for the futures contract was gold.

⭐ Variable Costs: Costs that vary depending on the volume of output produced. Example: Raw material expenses are a variable cost in manufacturing.

⭐ Wholesale Price: The price charged for a product as sold in bulk to large trade buyers. Example: Retailers pay the wholesale price and then add their markup.

⭐ X-Inefficiency: Occurs when a firm produces output at a higher cost than is necessary to produce it. Example: Management reforms were introduced to tackle the company’s x-inefficiency.

⭐ Year-End: The end of the fiscal year, often used in relation to financial reporting. Example: Bonuses are determined based on year-end results.

⭐ Zero-Sum Game: A situation in which a gain by one person or side must be matched by a loss by another person or side. Example: Price wars between competitors can become a zero-sum game.

⭐ Break-Even Point: The point at which total costs equal total revenue. Example: It took three months for the product to reach its break-even point.

⭐ Customer Relationship Management (CRM): Strategies and technologies used by companies to manage interactions with customers. Example: The company uses a CRM system to track sales leads.

⭐ Disintermediation: Reducing the use or the removal of intermediaries between producers and consumers. Example: Online platforms have led to disintermediation in many sectors.

⭐ EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization): An indicator of a company’s operational performance. Example: The firm’s EBITDA margins improved this year.

⭐ Feasibility Study: An assessment of a project’s viability. Example: Before the new project’s approval, a detailed feasibility study was conducted.

⭐ Gross Profit: Revenue minus cost of goods sold. Example: The firm’s gross profit was higher than anticipated.

⭐ Horizontal Diversification: A strategy that involves adding products or services unrelated to the existing business scope. Example: The tech company’s move into the food delivery space is a form of horizontal diversification.

⭐ Intellectual Property (IP): Creations of the mind like inventions, symbols, and designs. Example: The company has a portfolio of IP including patents and trademarks.

⭐ Jobber: A market maker in the London Stock Exchange. Example: The jobber specializes in specific stock trading.

⭐ Knowledge Management: Efficient handling of information and resources within an organization. Example: Investing in knowledge management systems helps in retaining organizational wisdom.

⭐ Loss Leader: A product sold at a loss to attract customers. Example: Supermarkets sometimes use bread as a loss leader.

⭐ Multinational Corporation (MNC): A company that operates in multiple countries. Example: The MNC has offices in over 30 countries.

⭐ Net Present Value (NPV): The difference between the present value of cash inflows and outflows. Example: The project’s NPV was positive, indicating potential profitability.

⭐ Oligopolistic: Market form in which a market is dominated by a small number of sellers. Example: The airline industry is often considered oligopolistic.

⭐ Price Elasticity: A measure of the responsiveness of quantity demanded to a change in price. Example: Luxury goods typically have high price elasticity.

⭐ Quick Ratio: Indicates a company’s ability to meet its short-term obligations using its most liquid assets. Example: A quick ratio below 1 might indicate liquidity concerns.

⭐ Retention Rate: The percentage of customers that continue to use a company’s product over a given period. Example: High customer retention rates indicate satisfaction.

⭐ Stakeholder: Anyone with an interest in a business, such as suppliers, customers, or employees. Example: The new policy was announced after consulting with all key stakeholders.

⭐ Turnkey: A type of project that is built so it can be sold to any buyer as a completed product. Example: The firm specializes in turnkey real estate projects.

⭐ Vertical Diversification: Adding products or services in the same production path. Example: A dairy company adding cheese and yogurt products exemplifies vertical diversification.

⭐ Write-Off: A reduction in the value of an asset or earnings. Example: The unpaid debts were considered as a write-off.

⭐ Yield Curve: A line that plots interest rates of bonds with equal credit quality but different maturity dates. Example: An inverted yield curve can be a predictor of economic downturns.

⭐ Zero-Based Budgeting (ZBB): A method of budgeting in which all expenses must be justified for each new period. Example: The company implemented ZBB to streamline costs.

⭐ Acquisition: Buying or obtaining control of a business or asset. Example: The tech giant announced the acquisition of a startup in the AI space.

⭐ Blue Ocean Strategy: A business approach that focuses on creating a new market space, rather than competing in an existing market. Example: The launch of the first smartphone was a classic blue ocean strategy.

⭐ Capital Expenditure (CapEx): Funds spent by a company to acquire, maintain, and upgrade physical assets. Example: The CapEx for the new plant was approved by the board.

⭐ Divestment: The sale or disposal of assets or business units. Example: The corporation announced the divestment of its underperforming division.

⭐ Economies of Scale: Reductions in cost per unit due to increased production levels. Example: Large manufacturing plants can achieve significant economies of scale.

⭐ Fixed Costs: Costs that do not change based on the volume of production. Example: Rent is a typical fixed cost for businesses.

⭐ Gross Domestic Product (GDP): The total value of goods produced and services provided in a country during a specific time. Example: Economists monitor the GDP to gauge the health of the economy.

⭐ Incoterms: A set of international standard trade terms. Example: Understanding Incoterms is crucial for international trade.

⭐ Joint Venture (JV): A commercial enterprise undertaken jointly by two or more parties. Example: The two companies entered into a JV to explore the new market.

⭐ Key Result Area (KRA): Crucial areas where high performance is required to achieve organizational goals. Example: Sales growth is a common KRA for sales executives.

⭐ Limited Liability Partnership (LLP): A partnership structure where each partner’s liability is limited to the amount they put into the business. Example: The law firm operates as an LLP.

⭐ Marginal Revenue: The additional revenue generated from selling one more unit of a product. Example: The company aims to maximize profits by analyzing marginal revenue against marginal costs.

⭐ Non-Governmental Organization (NGO): A nonprofit organization operating independently of any government. Example: The NGO focuses on providing clean drinking water to underserved regions.

⭐ Operating Leverage: The degree to which a company uses fixed costs in its operations. Example: Companies with high operating leverage can see significant profit swings with small sales changes.

⭐ Profit and Loss (P&L) Statement: A financial statement summarizing revenues, costs, and expenses during a specific period. Example: The CEO reviews the P&L statement monthly.

⭐ Quantitative Easing (QE): A monetary policy used by central banks to stimulate the economy by buying government securities. Example: The central bank introduced QE to combat the recession.

⭐ Residual Value: The estimated value of an asset at the end of its lease or lifespan. Example: Leasing agreements often mention the residual value of the asset.

⭐ Sole Proprietorship: A business owned and operated by a single individual. Example: The local bakery operates as a sole proprietorship.

⭐ Total Quality Management (TQM): A systematic approach to improving product quality and organizational efficiency. Example: Adopting TQM principles led to significant improvements in product quality.

⭐ Unicorn: A private startup company valued at over $1 billion. Example: The tech startup became a unicorn after its latest funding round.

⭐ Variable Interest Entity (VIE): An entity where the investor holds a controlling interest, but not a majority of voting rights. Example: Some firms use VIE structures to navigate regulatory challenges.

⭐ Warrant: A document entitling the holder to receive shares, usually at a specified price. Example: The bond came with a warrant allowing bondholders to buy shares.

⭐ Ex-Dividend Date: The cutoff date to receive a dividend payout from a stock or fund. Example: To receive the upcoming dividend, investors needed to buy the stock before the ex-dividend date.

⭐ Assets: Property owned by a person or company, regarded as having value. Example: The company’s assets include real estate, machinery, and intellectual property.

⭐ Buyout: The purchase of a controlling interest in a company. Example: The buyout was completed after months of negotiations.

⭐ Collateral: An asset pledged as security for the repayment of a loan. Example: He used his car as collateral for the loan.

⭐ Depreciation: A reduction in the value of an asset over time. Example: Tax regulations allow businesses to account for depreciation on equipment.

⭐ Earnings: The amount of profit that a company produces during a specific period. Example: The quarterly report showed increased earnings compared to the previous year.

⭐ Franchisee: An individual or company that holds a franchise for the sale of goods or the operation of a service. Example: The franchisee opened three new locations last year.

⭐ Gross Margin: The difference between revenue and cost of goods sold. Example: A higher gross margin indicates a more profitable company.

⭐ Hedging: Making an investment to reduce the risk of price fluctuations. Example: Companies often use hedging strategies to protect against currency volatility.

⭐ Incumbent: The current holder of an office or position. Example: The incumbent CEO has been with the company for ten years.

⭐ Joint Stock: A type of ownership in a company where the shares are owned by the shareholders. Example: The company was established as a joint stock corporation in the 1800s.

⭐ KPI (Key Performance Indicator): A measurable value that demonstrates the effectiveness of a company in achieving business objectives. Example: Sales growth is a common KPI used in retail.

⭐ Liabilities: The debts and obligations of a business. Example: The balance sheet lists both assets and liabilities.

⭐ Market Share: The portion of a market controlled by a particular company or product. Example: Their main competitor has a larger market share, but they’re making progress.

⭐ NDA (Non-Disclosure Agreement): A legal contract between two parties that outlines confidential materials. Example: Before discussing the business plan, both parties signed an NDA.

⭐ Outsourcing: Obtaining goods or services from an outside supplier. Example: The company started outsourcing its customer service operations.

⭐ Patent: A set of exclusive rights granted for an invention. Example: The inventor secured a patent for his new technology.

⭐ Quality Control: A system for verifying and maintaining a desired level of quality in a product or service. Example: Their strict quality control measures ensure consistency.

⭐ ROI (Return on Investment): The ratio of profit made in a financial year as a percentage of an investment. Example: Digital marketing campaigns often aim for a high ROI.

⭐ Shareholder: An owner of shares in a company. Example: As a major shareholder, she attended all board meetings.

⭐ Tariff: A tax imposed on imported goods. Example: The new tariff on electronics impacted several manufacturers.

⭐ Undercapitalized: Having insufficient capital to run a business normally. Example: Many startups fail because they are undercapitalized.

⭐ Vertical Integration: When a company controls more than one stage of the supply chain. Example: The tech firm achieved vertical integration by producing its hardware.

⭐ Wholesale: Selling goods in bulk to be retailed by others. Example: They purchased the products at wholesale prices.

⭐ Yield: The income produced by an investment, typically stated as a percentage of the cost. Example: The bond had a yield of 4%.

⭐ Zero-Based Budgeting: A method of budgeting in which all expenses must be justified for each period. Example: The department adopted zero-based budgeting to optimize expenses.

⭐ Acquisition Strategy: A plan to grow business through the purchase of a company, product, or service. Example: The board discussed various acquisition strategies for the upcoming year.

⭐ B2B (Business-to-Business): A transaction between businesses, as opposed to one between a business and individual consumer. Example: Their software is tailored for B2B sales.

⭐ Consumer Behavior: The study of how people buy, consume, and dispose of products. Example: Understanding consumer behavior is key for marketing strategies.

⭐ Dividend: A sum of money paid to shareholders from company profits. Example: The company announced an annual dividend of $5 per share.

⭐ Equity Financing: Raising capital by selling company shares to investors. Example: The startup chose equity financing over taking on debt.

⭐ Fiscal Year: A financial year used for accounting purposes. Example: The fiscal year for the company ends in March.

⭐ Growth Strategy: A strategy to increase the amount of business or to expand. Example: They’re focusing on a growth strategy targeting emerging markets.

⭐ Horizontal Merger: A merger between firms that produce similar products in the same industry. Example: The horizontal merger consolidated the industry further.

⭐ IPO (Initial Public Offering): The first sale of stock by a private company to the public. Example: Their IPO was one of the most anticipated events in the financial world.

⭐ Just-in-Time: An inventory management method where materials are only ordered and received as they are needed. Example: The manufacturing plant uses a just-in-time system to reduce storage costs.

⭐ Knowledge Economy: An economy where knowledge is a primary raw material and source of value. Example: Tech hubs are central in the knowledge economy.

⭐ Liquid Assets: Assets that can be quickly converted to cash. Example: His portfolio contains a significant portion of liquid assets.

⭐ Merger and Acquisition (M&A): Corporate strategies dealing with the buying, selling, and combining of companies. Example: The M&A team was very active this year with several major deals.

⭐ Non-Compete Agreement: A contract that prevents an employee from working for a competitor after leaving their current employer. Example: He couldn’t join the rival company due to his non-compete agreement.

⭐ Operating Expenses: Expenditures that a business incurs as part of its normal operations. Example: Rent and utilities are considered operating expenses.

⭐ Profit Margin: The percentage of profit a company earns from its total revenue. Example: Increasing the profit margin is a priority for the management team.

⭐ Quality Assurance (QA): The process of verifying that a product or service meets specified criteria. Example: The QA team tests the software before its release.

⭐ Retained Earnings: Profits that are kept within the company rather than distributed to shareholders. Example: The retained earnings will be used for business expansion.

⭐ Supply Chain: The network of all the individuals, organizations, resources, and processes involved in the creation and sale of a product. Example: Streamlining the supply chain can significantly reduce costs.

⭐ Turnover Rate: The rate at which employees leave a workforce and are replaced. Example: A high turnover rate can indicate employee dissatisfaction.

⭐ Venture Capitalist: An investor who provides capital to startups with high growth potential. Example: The venture capitalist saw potential in the young company’s innovative approach.

⭐ Working Capital: The capital of a business used in day-to-day operations. Example: Ensuring adequate working capital is essential for smooth business operations.

⭐ Year-to-Date (YTD): The period starting from the beginning of the current year up to the present date. Example: The company’s YTD performance has been impressive.

⭐ Zero-Based Budget: A method of budgeting in which all expenses must be justified from scratch for each period. Example: Adopting a zero-based budget helped in scrutinizing all expenditures.

⭐ Limit Order: An order to buy or sell a stock at a specific price. Example: He placed a limit order to buy shares when the price drops to a certain point.

⭐ Margin Call: A demand by a broker for an investor to deposit more money to cover potential losses. Example: Due to the sharp decline in stock prices, many traders received a margin call.

⭐ Non-Disclosure Agreement (NDA): A legal contract between at least two parties that outlines certain material the parties wish to keep confidential. Example: Before the merger talks, both parties signed an NDA.

⭐ Outsourcing: Obtaining goods or services from an external provider. Example: To save costs, the company began outsourcing its customer service.

⭐ Patent: A legal right to make, use, or sell an invention for a certain number of years. Example: The scientist was granted a patent for her groundbreaking research.

⭐ Quantitative Analysis: The use of mathematical and statistical techniques to assess an investment or business opportunity. Example: Quantitative analysis is central to many hedge fund strategies.

⭐ Recession: A period of temporary economic decline. Example: Many businesses face challenges during a recession.

⭐ Shareholder Value: The value delivered to equity owners of a corporation due to management’s ability to grow sales, earnings, and free cash flow. Example: Increasing shareholder value is a primary goal for many CEOs.

⭐ Target Market: A specific group of consumers a business aims to reach. Example: Their target market is young professionals aged 25 to 34.

⭐ Venture: A new business or project that typically involves risk. Example: The entrepreneur’s new venture focuses on sustainable energy.

⭐ Whistleblower: A person who exposes any kind of information or activity that is illegal or unethical. Example: The whistleblower revealed significant accounting fraud at the corporation.

⭐ Expenditure: The action of spending or using funds. Example: The department exceeded its annual expenditure.

⭐ Yield Spread: The difference between yields on differing debt instruments. Example: The yield spread between corporate bonds and government bonds can indicate perceived risk.

⭐ Z-Score: A statistical measurement that describes a value’s relationship to the mean of a group of values. Example: In finance, the Altman Z-score is used to predict corporate defaults.

⭐ Benchmark: A standard or reference point used for comparison. Example: The fund’s performance surpassed the industry benchmark.

⭐ Creditworthiness: The assessment of a debtor’s ability to repay debt. Example: Banks evaluate creditworthiness before issuing a loan.

⭐ Default: The failure to meet financial obligations. Example: The borrower was in default after missing several mortgage payments.

⭐ Equity Financing: Raising money by selling shares of stock. Example: The company opted for equity financing rather than taking on more debt.

⭐ Futures Contract: A legal agreement to buy or sell something at a predetermined price at a specific time in the future. Example: Many farmers use futures contracts to lock in prices for their crops.

⭐ Gross National Product (GNP): The total value of goods produced and services provided by a country’s residents. Example: GNP includes the earnings from abroad.

⭐ Incumbent: An existing holder of a position or office. Example: The incumbent CEO has been with the company for a decade.

⭐ Joint Venture (JV): A commercial project undertaken by two or more parties that retain their distinct identities. Example: The two firms entered a JV to tap into new markets.

⭐ Keiretsu: A set of companies with interlocking business relationships and shareholdings. Example: The Japanese keiretsu model is characterized by cross-shareholdings among companies.

⭐ Liquidity: The availability of liquid assets to a market or company. Example: High liquidity indicates an asset can be quickly converted into cash.

⭐ Market Saturation: A situation where a product has become widespread in a market. Example: The smartphone market is nearing market saturation in some regions.

⭐ Net Worth: The total assets minus total liabilities of an individual or company. Example: Over the years, his net worth has grown considerably.

⭐ Option: A contract giving the holder the right, but not the obligation, to buy or sell an asset. Example: He bought an option to purchase shares at a future date.

⭐ Portfolio Diversification: A risk management strategy mixing a wide variety of investments within a portfolio. Example: Portfolio diversification is essential to mitigate potential losses.

⭐ Quality Management: Overseeing all tasks and activities needed to maintain a desired level of excellence. Example: The firm is known for its strict quality management practices.

⭐ Return on Investment (ROI): A measure of the profitability of an investment. Example: The project’s ROI was impressive, yielding significant profits.

⭐ Subsidiary: A company controlled by another company, known as the parent company. Example: The tech conglomerate owns several subsidiaries around the world.

⭐ Tariff: A tax imposed on imported goods and services. Example: The new tariff on steel imports caused trade tensions.

⭐ Variable Cost: A cost that changes in proportion to changes in the level of activity or volume of production. Example: Labor and material costs are typical variable costs in manufacturing.

⭐ Wholesale: The sale of goods in large quantities to retailers. Example: The distributor sells products at wholesale prices to local stores.

⭐ Extrinsic Value: The portion of an option’s price that is not intrinsic and can be affected by external factors. Example: Time and volatility can impact an option’s extrinsic value.

⭐ Yield to Call (YTC): The yield of a bond or note if you were to buy and hold the security until the call date. Example: The bond’s YTC is lower than its yield to maturity due to the call provision.

⭐ Zoning: The process of dividing land in a municipality into zones in which certain land uses are permitted or prohibited. Example: The area was zoned for commercial use.

⭐ Cash Flow: The net amount of cash being transferred into and out of a business. Example: Maintaining positive cash flow is vital for business sustainability.

⭐ Due Diligence: A comprehensive investigation of a business or individual. Example: Before the acquisition, the firm conducted thorough due diligence.

⭐ Equity: The value of ownership interest in a business, such as stock shares. Example: Investors were attracted by the company’s increasing equity value.

⭐ Franchise: A system where semi-independent business owners pay fees or royalties to a parent company. Example: She opened a fast-food franchise in her hometown.

⭐ Gross Revenue: The total revenue from goods sold or services provided. Example: Last year’s gross revenue set a new record for the company.

⭐ Inflation: The rate at which the general price level of goods and services rises. Example: Central banks monitor inflation closely to set interest rates.

⭐ Joint Venture (JV): A commercial activity undertaken by two or more companies together. Example: The two tech firms entered into a JV to develop new software.

⭐ Key Performance Indicator (KPI): A measurable value that demonstrates how effectively a company is achieving key objectives. Example: Monthly sales volume is a crucial KPI for the sales department.

⭐ Liquidation: The process of closing a business and selling its assets. Example: After years of losses, the store is finally under liquidation.

⭐ Market Capitalization: The total value of a publicly traded company’s shares. Example: The tech giant’s market capitalization reached one trillion dollars.

⭐ Net Income: Total revenue minus all expenses. Example: The company reported an increased net income this quarter.

⭐ Operating Profit: Profit from regular business activities. Example: Their operating profit has seen a steady increase over the past year.

⭐ Portfolio: A range of products or services offered by a company, or a collection of investments owned by an investor. Example: Diversifying your investment portfolio can help manage risks.

⭐ Quota: A fixed share or a target that a salesperson or team is expected to achieve. Example: He consistently exceeds his monthly sales quota.

⭐ Revenue Stream: A source of revenue for a company or organization. Example: The firm developed a new revenue stream by launching an online platform.

⭐ Securities: Financial assets like stocks and bonds. Example: She diversified her investments by buying various securities.

⭐ Turnover: The amount of sales generated by a business in a particular period. Example: The company reported an annual turnover of 2 million dollars.

⭐ Vendor: A person or company that sells something. Example: We ordered office supplies from a new vendor.

⭐ Write-down: Reducing the book value of an asset because it’s overvalued. Example: The company had to write-down the value of its inventory after a major recall.

⭐ Exclusivity Agreement: A contract where one party agrees to buy or sell exclusively from the other. Example: The author signed an exclusivity agreement with the publisher.

⭐ Yield: The income return on an investment, such as the interest received from a bond. Example: The savings account has a 2% annual yield.

⭐ Zero Sum: A situation in which a gain by one side or party is matched by a loss by another side or party. Example: In some competitive markets, pricing strategies become a zero sum game.

⭐ Brand Recognition: The extent to which the general public can identify a brand by its attributes. Example: Their logo has strong brand recognition worldwide.

⭐ Consumer Base: The group of customers who repeatedly purchase a product or service. Example: The company’s consumer base has grown substantially this year.

⭐ Diversification: A risk management strategy of mixing a variety of investments within a portfolio. Example: Diversification is essential for managing potential losses.

⭐ Export: Goods and services sold to other countries. Example: The country has increased its export of manufactured goods.

⭐ Freelancer: A person who works on a contract basis for various companies. Example: As a freelancer, she enjoys the flexibility of choosing her projects.

⭐ Gross Profit Margin: Gross profit divided by total sales. Example: A higher gross profit margin indicates a more profitable company.

⭐ Initial Public Offering (IPO): The first time a company’s shares are sold to the public. Example: The startup’s IPO was oversubscribed within hours.

⭐ Joint Stock Company: A company whose stock is owned by the shareholders. Example: Each shareholder in a joint stock company has a portion of ownership.

⭐ Kickback: A payment made to someone who has facilitated a transaction or appointment. Example: The contractor was accused of taking kickbacks from suppliers.

⭐ Yield to Maturity (YTM): The total return expected on a bond if it’s held until maturity. Example: The YTM provides a comprehensive view of a bond’s expected return.

⭐ Zero Coupon Bond: A bond that doesn’t make periodic interest payments. Example: The bond was a zero coupon bond, repaying the principal and interest at maturity.

⭐ Business Intelligence (BI): Technologies and practices for collecting and analyzing business information. Example: The company invested in a new BI system to improve decision-making.

⭐ Advance Vocabulary

⭐ Personality Vocabulary

⭐ Expressive Vocabulary

⭐ Nature Vocabulary

⭐ Business Vocabulary