TOEIC Business Vocabulary 3

Question 1

In business, what does 'acquisition' most accurately mean?

Accepted Answer

The act of one company purchasing another company

Answer

The process of training new employees

Answer

An annual audit of company assets

Answer

The development of a new product line

Question 2

What is 'depreciation' in accounting and business?

Accepted Answer

The gradual reduction in the value of an asset over time

Answer

An increase in the value of a company's assets over time

Answer

The process of paying off a business loan

Answer

An unexpected drop in quarterly revenue

Question 3

When executives discuss 'due diligence' before a merger, what are they referring to?

Accepted Answer

A thorough investigation and evaluation of a business before a deal

Answer

Ensuring employees meet their productivity targets

Answer

The legal process of registering a new company name

Answer

Annual workplace safety inspections

Question 4

What does 'benchmark' mean in a business performance context?

Accepted Answer

A standard or point of reference used to measure performance

Answer

A physical desk used in a manufacturing plant

Answer

A mandatory financial audit required by law

Answer

A penalty for missing a sales target

Question 5

What is the meaning of 'synergy' when used in a business merger context?

Accepted Answer

The combined benefit greater than the sum of separate parts working together

Answer

The financial debt carried over from a previous year

Answer

The process of eliminating redundant positions after a merger

Answer

The annual review of brand identity and marketing strategy

Question 6

What does 'leverage' mean when a company is described as 'using leverage'?

Accepted Answer

Using borrowed capital or existing assets to increase potential return

Answer

Physically adjusting equipment in the production facility

Answer

Reducing the workforce to lower operating costs

Answer

Expanding into a new international market

Question 7

What is a 'capital expenditure' (CapEx) in a company's financial planning?

Accepted Answer

Funds spent by a company on acquiring or maintaining long-term assets

Answer

Daily spending on office supplies and coffee

Answer

Monthly salary payments to all employees

Answer

Money set aside for employee bonuses