Business English: Correspondence, Economy, Retail, Incoterms, Organizations, and Grammar

Comprehensive vocabulary flashcards covering Business Correspondence, Economic Sectors, Retail Formats, Incoterms 2020, Organizational Structures, Interfirm Cooperation, and Core English Grammar Tenses.

Enquiry (RfP/RfQ)

A buyer's initial communication asking a seller for general or specific information regarding products, catalogues, or price lists.

RfP (Request for Proposal)

A specific inquiry where the buyer asks the seller for an exact price quote (e.g., asking how much for a set quantity of goods).

RfQ (Request for Quotation)

An inquiry where the buyer requests a recommendation or plan from the seller to determine which products best meet their specific needs.

Offer

A seller's response providing information, a standard price list, details on products (either off-the-shelf or to be produced), and business terms and conditions.

Tender

A formal bid submitted by a seller for large-scale projects where multiple companies compete against one another to win the contract.

Order

A contract of sale initiated by the buyer for required goods or services, repeating agreed terms such as discounts, payment, and delivery.

Acknowledgment

A seller's formal confirmation of an order, reiterating terms and providing official documents that require signatures from all parties for major transactions.

Advice of Dispatch

A delivery confirmation document (shipping note) supplied with transport documents confirming that an order has been shipped.

Business Correspondence Cycle

The multi-stage interaction process between buyer and seller covering enquiry, offer/tender, order, acknowledgment, advice of dispatch, complaints, and payments.

Primary Sector

The sector of the economy focused on the extraction of natural materials (e.g., agriculture, ranching, fishing, and mining) to provide raw materials for other sectors.

Secondary Sector

The economic sector that manufactures and produces tangible goods, comprising industrial production and chemical manufacturing.

Tertiary Sector

The service sector of the economy, encompassing medical services, transport of goods, internet connectivity, banking, and restaurants.

Quaternary Sector

The knowledge- and information-based sector centered on research, technological development, and service improvement.

Quinary Sector

The economic sector responsible for highest-level decision-making, executive leadership, labor policy, and overarching activities that shape society.

Consumer Sales Channels

The various routes through which goods are marketed and sold to consumers, including physical shops, catalogues, door-to-door salespeople, online marketplaces, telemarketers, and company websites.

Department Store

A large retail store organized into separate departments (e.g., clothing, electronics, furniture) offering a wide product variety under one roof at mid-to-high price points (e.g., Galeria, Breuninger).

Supermarket

A large self-service store focusing primarily on groceries and everyday household products, leveraging sales volume to keep prices relatively low (e.g., Kaufland, Edeka, Rewe).

Convenience Store

A small retail outlet designed for quick shopping, typically open late, selling convenience goods such as snacks, beverages, newspapers, and toiletries at higher unit prices (e.g., 7-Eleven).

Discount Store

A medium-to-large retail store with a functional, simple interior design offering a wide variety of goods at low, budget-friendly prices (e.g., Aldi, Lidl, Tedi).

Speciality Store

A small-to-medium retail shop that concentrates deeply on a single specific product category and provides expert customer advice (e.g., H&M, Zara, Douglas, Foot Locker).

Wholesaler (Warehouse)

A very large commercial facility that sells goods in bulk at discounted prices, typically to businesses and often requiring paid membership (e.g., Metro).

Hypermarket

An extensive retail facility that merges the grocery selection of a supermarket with the non-food merchandise of a department store to provide one-stop shopping (e.g., Kaufland, Real).

Incoterms 2020

A set of standardized three-letter trade terms defining the division of obligations, costs, and risk transfer points between buyers and sellers in B2B sales contracts.

EXW (Ex Works)

An Incoterm placing minimal obligation on the seller, who only packages goods and makes them available at their premises; risk and costs transfer immediately to the buyer upon disposal.

CPT (Carriage Paid To)

An Incoterm where the seller pays transport costs to the destination and handles export clearance, while transit risk transfers early to the buyer upon delivery to the first carrier.

DDP (Delivered Duty Paid)

An Incoterm carrying maximum seller obligation: the seller handles export/import clearance, pays all duties, taxes, and freight to the destination, and bears risk until goods are ready for unloading.

FCA (Free Carrier)

An Incoterm where the seller clears goods for export and hands them over to the buyer's nominated carrier at an agreed point, at which moment risk transfers to the buyer.

FOB (Free on Board)

A maritime Incoterm where the seller clears goods for export and loads them onto the buyer's named vessel; risk transfers to the buyer once goods are safely on board.

CIF (Cost, Insurance and Freight)

A maritime Incoterm where the seller pays ocean freight and minimum marine cargo insurance to the destination port, but transit risk transfers to the buyer as soon as the goods are loaded on board at the origin port.

Sole Trader (e.K.)

A business owned and run by a single individual who has unlimited personal liability for business debts, requires no minimum startup capital, and has minimal registration requirements.

Partnership

A business co-owned by two or more individuals who share profits and losses, bear unlimited personal liability for debts, and operate under a partnership agreement without mandatory minimum capital.

Private Limited Company (GmbH)

A distinct legal entity with limited liability whose shares are held privately by shareholders and not offered to the general public; requires a minimum capital of 25{,}000\text{ \euro} in Germany.

Public Limited Company (AG)

A large corporation whose shares can be publicly offered and traded on a stock exchange, featuring limited liability, mandatory audited reporting, and a minimum capital requirement of 50{,}000\text{ \euro} in Germany.

Non-Governmental Organization (NGO)

An independent, non-profit organization overseen by a board of trustees, established for social or public welfare purposes rather than commercial profit.

Public Corporation

A government-owned and state-controlled entity created by legislative charter to provide essential public services, with liability generally absorbed by the state.

Functional Structure

An organizational structure where departments and reporting lines are grouped strictly according to business functions (e.g., Marketing, Finance, HR, Operations).

Divisional Structure

An organizational design where operational units are organized around specific product lines, consumer markets, or geographic regions.

Matrix Structure

A hybrid organizational framework combining functional and divisional structures, resulting in employees having dual reporting channels to two managers simultaneously.

Chief Executive Officer (CEO)

The top executive in overall management responsible for establishing corporate vision, determining company strategy, and making major strategic decisions.

Chief Financial Officer (CFO)

The head of finance and administration charged with budgeting, financial planning, accounting, financial reporting, and statutory tax compliance.

Chief Operating Officer (COO)

The executive responsible for managing daily company operations, process improvement, production scheduling, quality control, and logistics.

Chief Procurement Officer (CPO)

The executive directing the purchasing department, responsible for acquiring raw materials, supplies, and services, as well as managing suppliers and warehousing.

Interfirm Cooperation

Collaborative business arrangements—including joint ventures, strategic alliances, licensing, franchising, mergers, and acquisitions—used by companies to expand, share risk, or access resources.

Joint Venture

An interfirm arrangement where two or more independent companies establish a completely new legal entity, sharing ownership, management, investment, risks, and profits.

Strategic Alliance

A formal contractual partnership where companies collaborate and share resources or expertise toward mutual goals without forming a separate legal entity.

Licensing Agreement

A contract under which an owner allows another firm to use its intellectual property, brand, or technology in exchange for licensing fees or royalty payments.

Franchising

A business model where a franchisor grants an independent franchisee the right to operate using its brand, standardized systems, and products in exchange for upfront and ongoing fees.

Merger

A corporate transaction in which two separate companies combine their resources, assets, and market shares to form a single new business entity.

Acquisition

A commercial transaction wherein one purchasing company buys out another target company to gain controlling interest over its assets, operations, and market presence.

Simple Present

A verb tense used for habitual actions, daily routines, and permanent general facts; characterized by adding an '-s' for third-person singular subjects (he/she/it).

Present Continuous

A verb tense formed with 'be' (am/is/are) + infinitive + '-ing', used to express temporary actions, unfolding situations, or exceptions to routine happening at the moment of speaking.

Past Simple

A verb tense formed using the second verb form (or adding '-ed' to regular verbs) to describe actions and events that began and concluded at a specific, identified time in the past.

Past Perfect

A verb tense formed with 'had' + past participle (3rd form / '-ed') used to show an event that occurred prior to another event in the past.

Present Perfect

A verb tense formed with 'have/has' + past participle (3rd form / '-ed') representing an action that began in the past and continues into the present, or a recent past action where the exact timing is unimportant.