Business and Economics Vocabulary Review

Flashcards covering vocabulary related to market structure, takeovers, taxation, the business cycle, CSR, and employment from Units 20-25.

market leader

a company with the biggest market share in an industry.

market challenger

the second-biggest company in a market, which tries to compete with the leader.

market followers

smaller companies in a market that do not lead the industry.

market share

the percentage of sales that a company has in a market.

market segmentation

dividing a market into smaller groups of customers.

niche

a small and specialized part of a market.

unique selling proposition / USP

a special feature that makes a product different and attractive to customers.

differentiated product

a product that is different from other similar products.

cluster

a group of similar companies located close to each other.

entrepreneur

a person who starts their own business, often taking risks.

headhunter

a person who finds important or skilled employees for companies.

landlord

a person or organization that owns a building or land and rents it to others.

attorney

an American word for a lawyer.

vulnerable

likely to be attacked or harmed.

patent

the legal right to make or sell an invention for a number of years.

to dominate

to control a market or be the most important company in it.

to disrupt

to change the normal way an industry or market works.

perfect competition

a market with many firms, identical products and no control over price.

monopoly

a market where one company controls the whole market.

monopolistic competition

a market with many firms selling similar but differentiated products.

oligopoly

a market controlled by a few large companies.

takeover

when one company takes control of another company.

merger

when two companies join together to form one company.

buyout

the purchase of a company or a large part of it.

acquisition

the act of buying another company.

horizontal integration

buying a competitor in the same industry.

vertical integration

buying a company from another part of the supply chain.

backward integration

buying a supplier of raw materials or components.

forward integration

buying a distributor or retailer.

raid

buying many shares of a company on the stock market.

takeover bid

an offer to shareholders to buy their shares.

friendly takeover

a takeover accepted by the company’s directors.

hostile takeover

a takeover that the company’s directors do not accept.

asset-stripping

buying a company and selling its assets to make a profit.

to diversify

to become more varied, for example by selling different products.

retail outlet

a place where goods are sold to customers.

controlling interest

enough shares in a company to control its decisions.

listed company

a company whose shares are traded on a stock exchange.

fee

money paid for professional services.

conglomerate

a large company that owns many different businesses.

synergy

the extra value created when two companies or resources work together.

market capitalization

the total value of a company on the stock market.

subsidiary

a company controlled by a larger parent company.

pension fund

money saved to pay people after they retire.

leveraged buyout / LBO

buying a company mainly with borrowed money.

antitrust authority

an organization that protects competition in the market.

natural monopoly

a market where it is normal or efficient to have only one supplier.

utilities

basic public services such as water, gas and electricity.

market investigation

an official study of how competition works in a market.

lion’s share

the largest part of something.

dominant position

a very strong position in a market.

abuse of dominant position

using a strong market position in an unfair way.

price-fixing

an illegal agreement between companies to charge the same prices.

cartel

a group of companies that secretly agree not to compete.

predatory pricing

setting very low prices to force competitors out of the market.

turnover

the total sales of a company in a period of time.

fine

money a company or person must pay as a punishment.

government intervention

when the government controls, supports or regulates the economy.

free market

a market with little government control.

regulation

an official rule made by the government.

market forces

supply and demand that influence prices and business activity.

disposable income

money people have left after paying taxes.

to coerce

to force someone to do something.

permit / licence

official permission to do something.

allocation of resources

distribution of resources according to a plan.

commercialize

to organize something so that it can make a profit.

externalities

effects of economic activity on other people.

infrastructure

basic systems such as roads, transport and power supplies.

optimal

the best or most successful possible.

outcome

the result of an action or situation.

unfettered

not limited by rules or controls.

market failure

a situation where the free market does not work properly.

income tax

a tax people pay on the money they earn.

direct tax

a tax paid directly by a person or company to the government.

indirect tax

a tax included in the price of goods or services.

progressive tax

a tax where people with higher income pay a higher percentage.

flat tax

a tax where everyone pays the same percentage.

regressive tax

a tax that takes a bigger share of income from poorer people.

value-added tax / VAT

a tax added at each stage of production and sale.

sales tax

a tax paid when goods or services are sold.

capital gains tax

a tax on profit from selling assets, such as shares or property.

inheritance tax

a tax paid on money or property received after someone dies.

wealth tax

a tax on the total value of a person’s assets.

tax evasion

illegal actions to avoid paying taxes.

tax avoidance

legally reducing the amount of tax you pay.

tax haven

a country where taxes are very low.

loophole

a small gap in the law that allows people to avoid paying something legally.

business cycle / trade cycle

repeated periods of growth and decline in the economy.

gross domestic product / GDP

the total value of goods and services produced in a country.

output

the amount of goods or services produced.

consumption

buying and using goods and services.

demand

the willingness and ability of consumers to buy goods and services.

supply

the willingness and ability of businesses to offer goods or services for sale.

expectations

beliefs about what will happen in the future.

balance of payments

the difference between money coming into and going out of a country.

upturn

an increase in economic activity.

downturn

a decline in economic activity.

boom

a period of strong economic growth.

recession

a period when economic activity falls for a significant time.

depression / slump

a very serious and long economic downturn.