New Vocabulary Words

Expanding your business vocabulary is essential whether you’re a student, professional, or entrepreneur. Understanding and using these terms can help you communicate more effectively and confidently in the business world. Here are 50 essential business vocabulary words to enhance your lexicon. New Vocabulary Words


The process of obtaining control of another company by purchasing its stock or assets.


A standard or point of reference against which things may be compared or assessed.


Wealth in the form of money or assets, used or accumulated in a business by a person, partnership, or corporation. New Vocabulary Words


A portion of a company’s earnings distributed to shareholders.


The value of shares issued by a company.

Fiscal Year

A year as reckoned for taxing or accounting purposes.

Gross Profit

A company’s revenue minus its cost of goods sold.


An investment made to reduce the risk of adverse price movements in an asset.

IPO (Initial Public Offering)

The first time that the stock of a private company is offered to the public.

Joint Venture

A commercial enterprise undertaken jointly by two or more parties that otherwise retain their distinct identities.

KPI (Key Performance Indicator)

A measurable value that demonstrates how effectively a company is achieving key business objectives.


The use of borrowed capital for (an investment), expecting the profits made to be greater than the interest payable.


The combination of two companies to form a new company.

Net Income

A company’s total earnings, also called net profit.


Obtaining goods or services from an outside or foreign supplier.

P&L (Profit and Loss Statement)

A financial report that shows a company’s revenues and expenses over a particular period.


A fixed share of something that a person or group is entitled to receive or is bound to contribute.

ROI (Return on Investment)

A measure used to evaluate the efficiency or profitability of an investment.


A person with an interest or concern in something, especially a business.


The amount of money taken by a business in a particular period.


The process by which banks or other financial institutions take on financial risk for a fee.


The process of determining the current worth of an asset or a company.

White Paper

An authoritative report or guide that informs readers concisely about a complex issue.


The income return on an investment, such as the interest or dividends received.


Legislative process for dividing land into zones for different uses.


Anything of value that is owned by a business.


A legal proceeding involving a person or business that is unable to repay outstanding debts.

Cash Flow

The total amount of money being transferred into and out of a business.

Due Diligence

An investigation or audit of a potential investment.


A person who organizes and operates a business, taking on greater than normal financial risks.


The authorization granted by a company to an individual or group enabling them to carry out specified commercial activities.


The process by which businesses or other organizations develop international influence or start operating on an international scale.


A system in which members of an organization are ranked according to their relative status or authority.


The process of translating an idea or invention into a good or service that creates value.

Joint Stock Company

A company whose stock is owned jointly by the shareholders.


A form of negotiated bribery in which a commission is paid to the bribe-taker in exchange for services rendered.


A company’s legal financial debts or obligations.

Market Share

The portion of a market controlled by a particular company or product.

Niche Market

A small, specialized market for a particular product or service.


The ongoing administrative expenses of a business which cannot be attributed to any specific business activity.


The action of obtaining or procuring something.


The minimum number of members of an assembly or society that must be present at any of its meetings to make the proceedings of that meeting valid.

Risk Management

The forecasting and evaluation of financial risks together with the identification of procedures to avoid or minimize their impact.


A company controlled by a holding company.


The condition of being transparent; in business, it refers to openness, communication, and accountability.


A sales technique whereby a seller induces the customer to purchase more expensive items, upgrades, or other add-ons.

Venture Capital

Capital invested in a project in which there is a substantial element of risk.


The people engaged in or available for work, either in a country or area or in a particular company or industry.

Yield Curve

A line that plots the interest rates, at a set point in time, of bonds having equal credit quality but differing maturity dates.

Zero-Based Budgeting

A method of budgeting in which all expenses must be justified for each new period.

By integrating these terms into your everyday business conversations, reports, and presentations, you’ll enhance your ability to understand and convey complex business concepts clearly and effectively. Keep practicing and soon these words will become a natural part of your business vocabulary. For more information contact us now.

Happy learning!

Disclaimer: Learning new vocabulary words related to business is for educational purposes only and does not guarantee professional expertise or qualifications in business practices

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