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Business Word/Phrase of the Day

word-phrase-descEvery day we publish a business word or phrase together with audio pronunciation, phonetics, definition and example sentences. This is a great way to improve your workplace vocabulary as well as your pronunciation. To receive 'Business Word/Phrase of the Day' by email, just subscribe to our newsletter from the link above. 

VENTURE CAPITAL vɛntʃər kæpɪtl

30 Aug 2024

Phrase

  • Money raised by companies to finance new ventures in exchange for percentage ownership.
Example Sentences: Venture capital firms have a reputation for negotiating tough financing terms and setting high demands on target companies.
The company is looking for venture capital investment in order to expand. They're willing to sell 25% of the company for $400,000.
 

STOCK OPTIONS stɒk ɒpʃən

29 Aug 2024

Phrase

  • Are options, usually given to employees, to purchase stock in the company at a future date.
Example Sentence: After working for Microsoft for more than 10 years, I was able to cash in my stock options and retire comfortably at the age of 42.
 

LIQUIDATION lɪkwɪˈdeɪʃən

28 Aug 2024

Noun

  • This refers to the sale of all the assets of the company.
Example Sentence: The assets of a company that has gone into liquidation are often sold off at an auction.
 

IPO  

27 Aug 2024

Phrase

  • Initial Public Offering (IPO) refers to first sale of stock by a private company to the public.
Example Sentences: Alibabas IPO was 100 times oversubscribed.
There has been a 30% rise in the number of IPOs compared with last year.
 

FIXED COSTS fɪkst kɒst

26 Aug 2024

Phrase

  • Are costs that are incurred by the firm whether it produces or not, and that remain constant in amount whether its production volume is large or small.
Example Sentences: Rent, insurance, and salaries of supervisory personnel are common examples of fixed costs.
Or fixed costs are too high, we will need to reduce the number of staff we employ.
 

BURN RATE bɜrn reɪt

25 Aug 2024

Phrase

  • Refers to the amount of money a start-up company spends from month to month (money burnt) in order to survive.
Example Sentences: A burn-rate of $50,000 would mean the company spends $50,000 a month above any incoming cash flow to sustain its business.
Our current burn rate is US$15,000 per month. At this rate, we'll be able to continue operating the business until the end of the year.
 

BAD DEBTS bæd dɛt

24 Aug 2024

Phrase

  • Are funds owing to a business which are determined to be uncollectable.
Example Sentence: If you extend credit to numerous customers, and your experience is that a certain amount of your sales on account will be uncollectable, you should probably set up a reserve for bad debts.
 

APPRAISED VALUE əˈpreɪz vælyu

23 Aug 2024

Phrase

  • Is the value placed on an item, product or business by an appraiser who is recognized for experience in a particular field.
Example Sentence: The appraised value of our business is much higher than we thought. One of our competitors has made enquiries about buying us out.
 

ACCOUNTS RECEIVABLE əˈkaʊnt rɪˈsivəbəl

22 Aug 2024

Phrase

  • This is the amount billed to customers and due from them but not yet collected.
Example Sentence: You must maintain an accounts receivable ledger account for each customer you extend credit to.
 

ACCOUNTS PAYABLE əˈkaʊnt peɪəbəl

21 Aug 2024

Phrase

  • Is the amount that the company has been billed but has not yet paid. This is money owed to its regular business creditors from whom it has bought goods and services.
Example Sentences: You should keep an accounts payable ledger account for each supplier.
Expenses from the cash disbursements journal are, at the end of each day, posted to the appropriate accounts payable ledger.
 

FLOATED /floʊt/

20 Aug 2024

Verb

  • start selling shares in a business or company for the first time
Example Sentences: The company plans to float next year.
We floated on the stock exchange last year.
 

SUBSIDIARY /səbˈsɪdiˌɛri/

19 Aug 2024

Noun

  • a company which is owned by a larger company
Example Sentences: How many subsidiaries does Hutchison Whampoa have?
We set up a subsidiary in the UK.
 

MERGED /mɜrdʒ/

18 Aug 2024

Verb

  • If two companies merge, they join together to form a single company
Example Sentences: When did Glaxo Welcome and Smithkline Beecham merge?
We merged with X company in 1990.
 

FOUNDED /faʊnd/

17 Aug 2024

Verb

  • started, set up, established a company or organisation
Example Sentences: She founded the company with a $10,000 bank loan
We were founded in 1981.
 

THE HIGH LIFE  

16 Aug 2024

Phrase

  • The high life is an exciting way of living in which rich and successful people enjoy themselves.
Example Sentences: After years of living the high life, I just want to settle down, have kids and live quietly.
 
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