Business Vocabulary and Terminology
Every profession has its own language. Business vocabulary enables you to communicate precisely with colleagues, understand financial reports, participate in meetings, and write professional documents. Building a strong business vocabulary is essential for BBS students entering the corporate world.
Financial and Accounting Terms
Revenue (sales/turnover): total income from business operations. Profit: revenue minus expenses — gross profit (revenue minus cost of goods sold), operating profit (after operating expenses), and net profit (after all expenses including tax). Assets: resources owned by a business (cash, inventory, equipment, property). Liabilities: obligations owed (loans, accounts payable). Equity: owner's stake (assets minus liabilities). Cash flow: movement of money in and out. Budget: a financial plan for a specific period. Audit: systematic examination of financial records. Depreciation: decrease in asset value over time. Understanding these terms is fundamental for reading financial statements and making business decisions.
Marketing Terminology
Market share: percentage of total sales in a market held by a company. Target market: specific group of consumers a product is aimed at. Brand equity: value of a brand name. USP (Unique Selling Proposition): what differentiates a product from competitors. ROI (Return on Investment): profit relative to investment cost. Segmentation: dividing a market into distinct groups. Positioning: how a product is perceived relative to competitors. 4Ps: Product, Price, Place, Promotion — the marketing mix. Customer acquisition cost: expense of gaining a new customer. Conversion rate: percentage of prospects who become customers.
Management and HR Terms
Stakeholder: anyone affected by business decisions (employees, shareholders, customers, community). KPI (Key Performance Indicator): measurable value showing how effectively objectives are being achieved. Delegation: assigning authority and responsibility to subordinates. Organisational culture: shared values, beliefs, and behaviours within a company. Restructuring: reorganising a company's structure. Outsourcing: contracting work to external parties. Downsizing: reducing workforce to cut costs. Appraisal: evaluating employee performance. Attrition: natural reduction of workforce through resignations and retirements.
Economic Terms
GDP (Gross Domestic Product): total value of goods and services produced in a country. Inflation: sustained increase in general price level. Recession: period of economic decline (two consecutive quarters of negative GDP growth). Fiscal policy: government spending and taxation decisions. Monetary policy: central bank actions affecting money supply and interest rates. Trade deficit: imports exceed exports. Exchange rate: value of one currency in terms of another. Subsidy: government financial assistance to an industry or business.
Corporate and Legal Terms
Incorporation: forming a legal corporation. Board of Directors: group elected by shareholders to oversee management. CEO (Chief Executive Officer): highest-ranking executive. Merger: two companies combining into one. Acquisition: one company purchasing another. IPO (Initial Public Offering): first sale of stock to the public. Dividend: portion of profits distributed to shareholders. Compliance: adhering to laws and regulations. Due diligence: thorough investigation before a business transaction.
Abbreviations and Acronyms
Business communication is full of abbreviations: ASAP (As Soon As Possible), FYI (For Your Information), EOD (End of Day), Q1-Q4 (fiscal quarters), P&L (Profit and Loss), B2B (Business to Business), B2C (Business to Consumer), SWOT (Strengths, Weaknesses, Opportunities, Threats), HR (Human Resources), R&D (Research and Development). Using abbreviations appropriately saves time but ensure your audience understands them — define them on first use in formal documents.
Nepali Business Context
Nepal-specific terms: NRB (Nepal Rastra Bank — central bank), NEPSE (Nepal Stock Exchange), OCR (Office of the Company Registrar), VAT (Value Added Tax — 13% in Nepal), PAN (Permanent Account Number — tax identification), SME (Small and Medium Enterprise), remittance (money sent by workers abroad — major contributor to Nepal's economy). Understanding local business terminology alongside international vocabulary prepares students for Nepal's business environment.
Summary
A rich business vocabulary — spanning finance, marketing, management, economics, and corporate terminology — is essential for professional success. Regular reading of business publications (The Kathmandu Post business section, international outlets like The Economist or Financial Times) builds vocabulary naturally over time.
Essential Business Vocabulary by Category
| Category | Term | Meaning | Example Sentence |
|---|---|---|---|
| Finance | Liquidity | Ability to convert assets to cash quickly | “The company has high liquidity with Rs 50 lakhs in bank.” |
| Leverage | Using borrowed money to increase returns | “High leverage increases both potential profit and risk.” | |
| Overhead | Ongoing expenses not directly tied to production | “Rent, electricity, and salaries are overhead costs.” | |
| Marketing | Demographics | Statistical data about population characteristics | “Nepal’s demographics show 65% under 35.” |
| Niche market | Small, specialised market segment | “Himalayan organic tea targets a premium niche.” | |
| Viral marketing | Marketing that spreads through social sharing | “The Wai Wai challenge went viral on TikTok Nepal.” | |
| Management | Synergy | Combined effect greater than sum of parts | “The merger created synergy — combined profits exceeded both firms’ separate profits.” |
| Benchmark | Standard for comparison | “We benchmark our service against NIC Asia Bank.” | |
| Scalability | Ability to grow without proportional cost increase | “eSewa’s digital platform has high scalability.” |
Common Business Collocations
| Verb | + Noun (Collocation) | Meaning |
|---|---|---|
| Launch | a product / a campaign / a startup | Start something new |
| Meet | a deadline / a target / expectations | Achieve on time |
| Cut | costs / prices / jobs | Reduce |
| Raise | capital / awareness / concerns | Increase or bring attention |
| Close | a deal / a branch / an account | Finalise or shut down |
| Run | a business / a risk / a campaign | Manage or take |
Exam Tips
Tip 1: Learn vocabulary in context (sentences), not just definitions — examiners test usage. Tip 2: Business collocations (launch a product, meet a deadline, cut costs) are frequently tested in fill-in-the-blank. Tip 3: Nepal-specific terms (NRB, NEPSE, VAT, PAN, remittance) appear in comprehension passages. Tip 4: Read The Kathmandu Post business section daily — builds vocabulary naturally.