Business and Economics Vocabulary

A complete list of vocabulary terms and definitions regarding business, finance, and economics as presented in the lecture transcript.

accountant

person who keeps a company’s accounts and prepares financial statements

acquisition

something that is bought by a company, such as a building or a piece of land

advertising

a form of communication that seeks to bring a product or service to the notice of prospective customers

assets

things of value owned by a person or business

authority

power or control over other people or things

board of directors

the group of people whom shareholders choose to manage a company or organization

bonds

long-term debt securities issued by governments or companies to raise money, with interest paid to investors

borrower

person who takes money from someone for a time

bribe

a sum of money or something valuable that one person offers or gives to another in order to persuade him or her to do something

budget

plan of expected spending and income

chairman

person who presides over the board meetings of a company

chain of command

a system where authority passes down from the top through a series of executive positions or ranks, in which each person is accountable to the one directly superior

charges

amounts of money that must be paid for a service or product

charity

an institution set up to provide help to the needy

commission

a sum of money paid to a salesperson for every sale that he or she makes

communication systems

ways in which information is transmitted from place to place in the form of ideas, instructions, and images

competition

a situation in which someone is trying to win something or be more successful than someone else

conglomerate

a large company made up of several different businesses operating in unrelated industries

consume / consumption

the act of using, eating, or drinking something

consumer

a person who buys or uses goods or services

contribute

to give money, time, ideas, or effort to help achieve something

corporation

a legal business entity that is separate from its owners and can own property, enter contracts, and be sued

debts

money that is owed to another person, bank, or organization

domination

power or control over other people or things

dues

a sum of money that you give regularly to an organization that you belong to in order to pay for being a member

economic activity

any action that involves producing, distributing, or consuming goods and services

economic model

a simplified representation of how an economy or part of an economy works

economics

the study of how individuals and societies satisfy their unlimited wants with limited resources

enterprise

a business organization or company engaged in commercial or industrial activity

entrepreneurship

a process by which businesspeople assemble resources in an effort to transform innovations into economic goods

entrepreneurs

people who start and run businesses, taking financial risks in order to make a profit

entity

an organization or business that has its own separate legal and financial existence

factors of production

the resources needed to produce goods and services

fare

the money paid for a journey on public transport

fee

an amount of money that a person or organization is paid for a particular job or service

franchise

a business arrangement in which one party allows another to use its brand, products, and business model

funding

money provided, especially by an organization or government, for a particular purpose

general partnership

a partnership in which all partners share management, profits, and unlimited liability for the business’s debts

gearing

the relationship between a company’s debt and its equity

goods

objects, such as food, clothing, and furniture, that can be bought

improvements in productive efficiency

increases in the amount of output produced from the same resources

income

money that a person or business receives regularly

increase

to become or make something greater in number, amount, or size

industrious (adj.)

hardworking and diligent in performing tasks

inflation

a general and progressive increase in prices

interest

extra money that is paid or received for borrowing or lending money

internal audit

an independent objective assurance and consulting activity designed to add value and improve an organization’s operations

job description

a list of the general tasks, functions, and responsibilities of a position

key drawback

the most important disadvantage or problem of something

landlord

a person or organization that owns property and rents it to tenants

liability

a legal or financial responsibility for debts, losses, or obligations

limited liability

protection that limits an owner’s financial responsibility to the amount invested

limited partnership

a partnership with at least one general partner with unlimited liability and one or more limited partners whose liability is limited to their investment

macroeconomics

the branch of economics that studies the economy as a whole

marketing

a business process in which goods and services are promoted through communication-based activities

merger

the joining of two or more companies into one organization

microeconomics

the branch of economics that studies individual consumers, firms, and markets

migrant

someone who goes to live in a different place in order to find work

multinational corporation

a corporation that operates in more than one country

needs

things that are necessary for survival

negotiation

a conversation between two or more people with the intention of reaching a mutual agreement

nonprofit organisation

an organization that uses its income to pursue a purpose rather than distribute profit

occupation

a person’s regular work or job, especially when it requires special training or a particular role

offsetting decreases somewhere else

balancing a loss in one area with a gain in another area

partnership

a business owned by two or more people who share profits, responsibilities, and liabilities

premium

an amount to be paid for a contract of insurance

product

something that is made or grown to be sold

production

the process of making or growing goods to be sold

productive

producing a large amount of goods, work, etc.

productivity

the rate at which goods are produced

producer

a maker of goods or a provider of services

profits

money left after all costs and expenses have been paid

proprietorship

a business owned and controlled by one person

prosperity

an economic state of growth with rising profits and full employment

prospect

the possibility or likelihood of some future event or success

reductions in spending

cuts in spending would lead to lower costs or less use of money

rent

an amount of money that you pay regularly to use a house, flat, or piece of land

resident

someone who lives in a particular place for a prolonged period or who was born there

responsible

having a duty to do something or being accountable for something

returns

money gained from an investment, business activity, or work

scarce resource

a resource that is limited in supply and cannot satisfy all desired uses

scarcity

the situation when there are not enough resources to satisfy human wants

services

work that one person does for another for a fee

sole proprietorship

a business owned and controlled by one person who is personally responsible for its debts and obligations

span of control

the number of subordinates a supervisor has

surplus

an amount that is more than what is needed or used

takeover

a situation in which a company gets control of another company by buying enough of its shares

tenant

a person who rents and lives in or uses property owned by someone else

toll

a charge payable to use a bridge or road

trade-off

a balance between two things where improving one usually means worsening the other

treaty

a binding agreement between states

tuition

an amount of money that you have to pay for being taught particular subjects, especially at a university or college

unlimited liability

full personal responsibility for all debts and obligations of a business

using its resources inefficiently

using available resources in a way that wastes them or produces less than possible

utility

the satisfaction or benefit a person gets from consuming a good or service

wants

desires that can be satisfied by consuming a good or a service