Business Vocabulary Flashcards
7 cards from real TOEIC practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Business Vocabulary flashcards as text
In business, what does 'acquisition' most accurately mean?
Answer: The act of one company purchasing another company
An acquisition is when one company buys a controlling stake or the entirety of another company.
What is 'depreciation' in accounting and business?
Answer: The gradual reduction in the value of an asset over time
Depreciation is the systematic reduction in the recorded cost of a fixed asset over its useful life, reflecting wear and obsolescence.
When executives discuss 'due diligence' before a merger, what are they referring to?
Answer: A thorough investigation and evaluation of a business before a deal
Due diligence is a comprehensive appraisal of a business conducted before signing a contract to evaluate assets, liabilities, and business potential.
What does 'benchmark' mean in a business performance context?
Answer: A standard or point of reference used to measure performance
A benchmark is a standard or reference point against which a company's performance, products, or processes can be measured and compared.
What is the meaning of 'synergy' when used in a business merger context?
Answer: The combined benefit greater than the sum of separate parts working together
Synergy in business refers to the concept that two companies working together can achieve more value or efficiency than they could separately.
What does 'leverage' mean when a company is described as 'using leverage'?
Answer: Using borrowed capital or existing assets to increase potential return
In business, leverage refers to using borrowed funds or existing assets to amplify the potential return on an investment.
What is a 'capital expenditure' (CapEx) in a company's financial planning?
Answer: Funds spent by a company on acquiring or maintaining long-term assets
Capital expenditure (CapEx) refers to funds used to purchase, upgrade, or maintain long-term physical assets such as machinery, buildings, or equipment.