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15 Useful Business Terms


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!

  1. Assets

Cash, Equipment or Land

  • At the time of his death, his total assets amounted to over £1,000,000!
  1. Liability


  • The company had to declare bankruptcy as their liabilities were so high.


  1. Net Loss

When money out exceeds money in.

  • The company made a net loss last year so we will need to cut expenses.
  1. 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!
  1. B2B/B2C

Business to Business/ Business to Customer

  • Our company specializes in B2B sales rather than B2C
  1. 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.
  1. 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.
  1. Accounts Payable

Money you owe.

  • We need to closely monitor our accounts payable to make sure we aren’t spending too much money.
  1. Accounts Receivable

Money that you are owed.

  • The Accounts Receivable department is responsible for receiving all the money that we are owed.
  1. 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.
  1. Accounting

Recording of Finance

  • Our accounting team is the most important department in the company.
  1. Expenses

Money spent.

  • To save money we must reduce our monthly expenses.
  1. Owner’s Equity

% of assets for the owner.

  • There has been a change in the owner’s equity during the last quarter.
  1. Revenue


  • We need to find a way to increase our revenue.


  1. 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.

Clases de inglés negocios

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Now let’s see if you can use them in context!


  1. __________ involves the systematic recording and reporting of business financial transactions.
  2. ______ refers to your business’ cumulative financial holdings. These are usually classified as ‘current’ or ‘fixed.’
  3. We have a lot of ________ every month relating to equipment and inventory.
  4. 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.
  5. Your _________________, or ROI, shows how much you gained or lost on a business investment relative to how much you spent on it.
  6. 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.
  7. ________ is the movement of money in and out of your business.
  8. Usually measured as a percentage _____________ usually refers to the owner’s part of a business.
  9. A _____________ is a key financial document that shows a snapshot of business assets, liabilities and owner’s equity.
  10. _________________ is the amount of money your customers or clients owe your business.
  11. _______________ is the amount of money that you owe others for goods or services provided to you.
  12. You need to pay any ___________ owed to other businesses.
  13. _______ refers to the amount of income your business receives.
  14. ____________ refers to how much profit you keep on your total sales.
  15. __________ represents total revenue minus total expenses.

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