15 Useful Business Terms
Hello Everybody!
Today we are going to be taking a look at some useful business terms in English. This post will be particularly useful those of you who need to use English in a professional setting. So let’s take a look!
- Assets
Cash, Equipment or Land
- At the time of his death, his total assets amounted to over £1,000,000!
- Liability
Debt
- The company had to declare bankruptcy as their liabilities were so high.
- Net Loss
When money out exceeds money in.
- The company made a net loss last year so we will need to cut expenses.
- Net Profit
When Money in exceeds money out.
- Thanks to all of our hard work, the company made a net profit this year for the first time ever!
- B2B/B2C
Business to Business/ Business to Customer
- Our company specializes in B2B sales rather than B2C
- Cash Flow
The movement of money in and out of a company.
- We’ve been making a lot of sales recently so we should have a good cash flow.
- Profit Margin
Money made from sales that an individual or company keeps.
- We are offering our services too cheaply, we need to increase our profit margins.
- Accounts Payable
Money you owe.
- We need to closely monitor our accounts payable to make sure we aren’t spending too much money.
- Accounts Receivable
Money that you are owed.
- The Accounts Receivable department is responsible for receiving all the money that we are owed.
- Balance Sheet
A document which shows a company’s key financial information.
- I’ve been going over the figures on our balance sheet and the results are very worrying.
- Accounting
Recording of Finance
- Our accounting team is the most important department in the company.
- Expenses
Money spent.
- To save money we must reduce our monthly expenses.
- Owner’s Equity
% of assets for the owner.
- There has been a change in the owner’s equity during the last quarter.
- Revenue
Income
- We need to find a way to increase our revenue.
- Return on Investment
The amount of profit you will receive compared to the investment you have made.
- I’m sorry but we will need to see a much better return on investment if we are going to put any more money into your company.
Now let’s see if you can use them in context!
- __________ involves the systematic recording and reporting of business financial transactions.
- ______ refers to your business’ cumulative financial holdings. These are usually classified as ‘current’ or ‘fixed.’
- We have a lot of ________ every month relating to equipment and inventory.
- If your total expenses exceed your overall revenues, you have a _______. The risk of a _______ is one of many good reasons to keep company costs under control.
- Your _________________, or ROI, shows how much you gained or lost on a business investment relative to how much you spent on it.
- If the purpose of your business is to supply goods and services to other businesses then you are a ___ organization. On the other hand if your business primarily supplies goods and services to customers then you operate a ___ company.
- ________ is the movement of money in and out of your business.
- Usually measured as a percentage _____________ usually refers to the owner’s part of a business.
- A _____________ is a key financial document that shows a snapshot of business assets, liabilities and owner’s equity.
- _________________ is the amount of money your customers or clients owe your business.
- _______________ is the amount of money that you owe others for goods or services provided to you.
- You need to pay any ___________ owed to other businesses.
- _______ refers to the amount of income your business receives.
- ____________ refers to how much profit you keep on your total sales.
- __________ represents total revenue minus total expenses.
