BP- Mod1 - Money Vocabulary

Transcript

1. Talking about Money Money is a crucial topic in the business world, and professionals often need to discuss various financial matters. Here's a list of situations and related vocabulary you might find valuable: Salary Negotiations: Base salary Compensation package Bonus Commission Benefits Raise Negotiation Counteroffer Incentives Financial Reports and Analysis: Budget Forecast Profit margin Revenue Expenses Break-even point ROI (Return on Investment) Financial statement Balance sheet Investments: Investment portfolio Stocks Bonds Dividends Capital gains Risk assessment Diversification Asset allocation www.englishpriority.com by GabbyRincon All rights reserved.
2. Business Transactions: Invoice Purchase order Payment terms Transaction fee Due diligence Terms and conditions Cash flow Banking and Finance: Account balance Overdraft Loan Interest rate Mortgage Collateral Credit score ATM (Automated Teller Machine) International Business: Exchange rate Currency conversion Foreign exchange market Import/export Trade deficit/surplus Customs duties Tariffs Entrepreneurship: Venture capital Angel investor Startup costs Burn rate Pitch Seed funding Crowdfunding www.englishpriority.com by GabbyRincon All rights reserved.
3. Financial Planning: Retirement planning Savings account Emergency fund 401(k)/IRA (Individual Retirement Account) Financial advisor Estate planning Taxation: Tax deduction Tax credit Tax return Taxable income Tax evasion Tax audit IRS (Internal Revenue Service) Negotiations and Contracts: Payment terms Down payment Milestone payment Escrow Contractual obligations Penalties Liquidated damages www.englishpriority.com by GabbyRincon All rights reserved.
4. Salary Negotiations Base Salary: The fixed amount of money paid to an employee before any additional payments or deductions. Example sentences: • The company offers a competitive base salary for this position. • The starting base salary is $50,000 per year. Compensation Package: The total rewards an employee receives, including salary, benefits, bonuses, and other incentives. Example sentences: • Our compensation package includes health insurance, retirement benefits, and performance bonuses. • The candidate was attracted to the comprehensive compensation package offered by the company. (Seniority Bonus) Bonus: An additional payment given to employees as a reward for good performance or achieving certain targets (goals). Example sentences: • Employees who meet their quarterly targets are eligible for a performance bonus. • The end-of-year bonus is based on individual and team achievements. Commission: A percentage of sales or revenue that an employee receives as compensation, usually in sales-related roles. Example sentences: • Sales representatives earn a commission on each successful sale. • The commission structure encourages sales teams to exceed their targets. www.englishpriority.com by GabbyRincon All rights reserved.
5. Benefits: Non-monetary rewards provided by an employer, such as health insurance, retirement plans, and paid time off. Example sentences: • The benefits package includes dental coverage and a flexible work schedule. • Employees appreciate the comprehensive benefits offered by the company. Raise: An increase in salary or compensation granted to an employee, often as a result of performance or tenure. Example sentences: • After two years of excellent performance, Maria received a substantial raise. • The management team decided to give all employees a 5% raise this year. Negotiation: The process of discussing and reaching an agreement on salary terms between an employer and an employee. Example sentences: • Effective negotiation skills are essential when discussing salary expectations. • The candidate demonstrated strong negotiation skills during the salary discussion. Counteroffer: A revised proposal from the candidate or employer in response to the initial salary offer. Example sentences: • After considering the initial offer, the candidate submitted a counteroffer. • The company's counteroffer included additional vacation days and a higher base salary. Incentives: Additional rewards or benefits offered to employees to motivate them to achieve specific goals or targets. Example sentences: • The company offers performance-based incentives for exceeding sales quotas. • The team was motivated by the prospect of earning financial incentives for their achievements. www.englishpriority.com by GabbyRincon All rights reserved.
6. Financial Reports and Analysis: Budget: A financial plan that outlines expected income and expenses over a specific period. Example sentences: • The marketing department is working on next year's budget. • Our team needs to adhere to the allocated budget for this project. Forecast: An estimate of future financial performance based on historical data and market trends. Example sentences: • The sales team provided a quarterly revenue forecast. • The financial forecast suggests growth in the next fiscal year. Profit Margin: The percentage of profit earned from total revenue after deducting expenses. Example sentences: • The company's high profit margin is a result of effective cost management. • Increasing sales while maintaining a healthy profit margin is our goal. Revenue: Total income generated from sales or services provided. Example sentences: • The company experienced a significant increase in revenue last quarter. • The new product launch contributed to a boost in overall revenue. Expenses: Costs incurred by a business during its operations. Example sentences: • The finance team is reviewing monthly expenses to identify cost-saving opportunities. • Reducing unnecessary expenses can improve the company's financial health. www.englishpriority.com by GabbyRincon All rights reserved.
7. Break-Even Point: The point at which total revenue equals total costs, resulting in neither profit nor loss. Example sentences: • Our break-even point analysis helps us determine how many units need to be sold. • Understanding the break-even point is crucial for making informed business decisions. ROI (Return on Investment): A measure of the profitability of an investment, calculated by dividing the net profit by the initial investment. Example sentences: • The marketing campaign's ROI exceeded our expectations. • Investors closely monitor ROI to assess the effectiveness of their investments. Financial Statement: A formal record of a company's financial activities, including the income statement, balance sheet, and cash flow statement. Example sentences: • The annual financial statement provides insights into the company's financial health. • Investors and stakeholders review financial statements to assess performance. Balance Sheet: A snapshot of a company's financial position, showing assets, liabilities, and equity at a specific point in time. Example sentences: • The balance sheet indicates the company's financial stability and obligations. • Analyzing the balance sheet helps us understand the company's asset allocation. www.englishpriority.com by GabbyRincon All rights reserved.
8. Investments: Investment Portfolio: A collection of investments, such as stocks, bonds, and other assets, held by an individual or organization. Example sentences: • Diversifying your investment portfolio can help manage risk. • The financial advisor recommended adjusting the investment portfolio based on market trends. Stocks: Shares of ownership in a company, representing a claim on its assets and earnings. Example sentences: • Investing in stocks involves both potential for high returns and higher risks. • The stock market experienced volatility due to economic uncertainty. Bonds: Debt securities issued by governments or corporations to raise funds, with periodic interest payments and a promise to repay the principal. Example sentences: • Investors often consider bonds as a more stable investment option. • The company issued corporate bonds to fund its expansion plans. Dividends: Payments made by a corporation to its shareholders from the company's profits. Example sentences: • Some investors seek stocks that offer consistent dividends. • The board of directors announced an increase in dividends for the shareholders. Capital Gains: Profits earned from selling an investment asset at a higher price than the original purchase price. Example sentences: www.englishpriority.com by GabbyRincon All rights reserved.
9. • Realizing capital gains requires timing and understanding market trends. • The investor decided to hold onto the asset to maximize potential capital gains. Risk Assessment: The process of evaluating potential risks associated with an investment and developing strategies to manage them. Example sentences: • Conducting a thorough risk assessment is crucial before making investment decisions. • The financial analyst presented a comprehensive risk assessment report to the board. Diversification: Spreading investments across different assets or sectors to reduce risk and enhance potential returns. Example sentences: • Diversification can protect your investment portfolio from severe losses. • The investment strategy includes diversifying holdings in both stocks and bonds. Asset Allocation: The distribution of investment funds among various asset classes, such as stocks, bonds, and cash. Example sentences: • Asset allocation is a key factor in achieving long-term financial goals. • The financial planner recommended adjusting the asset allocation to align with the investor's risk tolerance. www.englishpriority.com by GabbyRincon All rights reserved.
10. Business Transactions: Invoice: A document sent to a buyer requesting payment for goods or services provided. Example sentences: • The company issues an invoice for the services rendered each month. • Please review the invoice details and make the payment by the due date. Purchase Order: A formal request or contract issued by a buyer to a seller, specifying the items, quantities, and prices of products or services. Example sentences: • The vendor requires a purchase order before fulfilling the order. • The purchase order outlines the terms of the agreement between the buyer and seller. Payment Terms: The conditions and timeline for making payments for goods or services. Example sentences: • The payment terms include a 30-day window for settling the invoice. • The supplier agreed to extend favorable payment terms for bulk orders. Transaction Fee: A charge imposed for processing a financial transaction, such as a credit card payment or wire transfer. Example sentences: • Some online platforms may apply a transaction fee for processing payments. • The transaction fee is deducted from the total amount transferred. Due Diligence: Thorough research and investigation conducted before making a financial decision or investment. Example sentences: • The company conducted due diligence before finalizing the acquisition. • Investors should perform due diligence to assess the risks involved. www.englishpriority.com by GabbyRincon All rights reserved.
11. Terms and Conditions: The set of rules and requirements governing a financial agreement or transaction. Example sentences: • Before accepting the loan, carefully review the terms and conditions. • The terms and conditions outline the rights and responsibilities of both parties. Cash Flow: The movement of money into and out of a business, representing its operational and financial health. Example sentences: • Monitoring cash flow is crucial for maintaining business sustainability. • The positive cash flow allows the company to invest in growth initiatives. Account Balance: The amount of money in a bank account at a specific point in time. Example sentences: • To avoid overdraft fees, ensure that your account balance is sufficient. • You can check your account balance through online banking or the ATM. Overdraft: A negative account balance that occurs when withdrawals exceed the available funds. Example sentences: • The bank charges an overdraft fee for each occurrence of insufficient funds. • Set up overdraft protection to avoid unexpected overdraft fees. Loan: Borrowed money provided by a lender that must be repaid with interest over a specified period. Example sentences: • The business secured a loan to fund its expansion plans. • The loan agreement outlines the repayment schedule and interest rates. www.englishpriority.com by GabbyRincon All rights reserved.
12. Interest Rate: The percentage of the loan amount that a borrower pays as interest to the lender. Example sentences: • The interest rate on the mortgage affects the total cost of the loan. • Compare different lenders to find a favorable interest rate for your loan. Mortgage: A loan used to purchase real estate, with the property serving as collateral for the loan. Example sentences: • Many people opt for a fixed-rate mortgage to have predictable monthly payments. • The bank approved the mortgage application after evaluating the borrower's creditworthiness. Collateral: An asset pledged as security for a loan, which the lender can seize if the borrower fails to repay the loan. Example sentences: • The car was used as collateral for the auto loan. • The borrower provided valuable assets as collateral to secure the business loan. Credit Score: A numerical representation of an individual's creditworthiness, based on their credit history and financial behavior. Example sentences: • A high credit score can lead to better loan terms and interest rates. • Lenders consider the applicant's credit score when evaluating loan applications. ATM (Automated Teller Machine): A self-service machine that allows individuals to perform banking transactions, such as cash withdrawals and balance inquiries. Example sentences: • You can conveniently withdraw cash from any ATM within the bank's network. • The ATM provides 24/7 access to basic banking services. www.englishpriority.com by GabbyRincon All rights reserved.
13. HR BENEFITS: Commission: A percentage of sales or revenue earned by salespeople or employees in roles directly related to generating revenue. Profit Sharing: Distribution of a portion of the company's profits among employees as a form of financial incentive. Stock Options: The opportunity for employees to purchase company stock at a predetermined price, often as part of their compensation package. Restricted Stock Units (RSUs): Grants of company shares that vest over a specific period of time, often as part of long-term incentive plans. Performance Shares: Shares of company stock granted to employees based on their performance against predetermined performance goals. Annual Merit Increases: Regular raises in salary based on performance evaluations and market benchmarks. Cost-of-Living Adjustments (COLA): Salary increases designed to match inflation rates and maintain employees' purchasing power. Sign-On Bonus: A one-time payment provided to new hires to incentivize them to join the company. Retention Bonus: A bonus offered to employees as an incentive to stay with the company for a specified period. Relocation Assistance: Financial support provided to employees who need to relocate for work-related reasons. Healthcare Benefits: Medical, dental, and vision coverage provided by the company to support employees' well-being. www.englishpriority.com by GabbyRincon All rights reserved.
14. Retirement Plans: Programs like 401(k) or pension plans that help employees save for retirement, often with employer contributions. Paid Time Off (PTO): A combination of vacation days, sick leave, and personal days that employees can use for time off. Flexible Spending Accounts (FSAs): Pre-tax accounts that employees can use to pay for qualified medical or dependent care expenses. Tuition Reimbursement: Financial support provided to employees for pursuing further education or professional development. Childcare Benefits: Subsidies or support for employees' childcare expenses. Remote Work Allowances: Reimbursements or stipends to help employees set up a productive home office. Employee Assistance Programs (EAPs): Services that offer employees support for personal or work-related challenges, such as counseling or wellness programs. Transportation Subsidies: Assistance provided to employees for commuting expenses, such as public transportation passes or parking fees. Employee Stock Purchase Plans (ESPPs): Programs that allow employees to purchase company stock at a discounted price. Wellness Programs: Initiatives aimed at promoting employees' physical and mental well-being, often including fitness classes, counseling, and health screenings. Life Insurance: Coverage provided to employees to financially support their beneficiaries in case of the employee's death. www.englishpriority.com by GabbyRincon All rights reserved.
15. Long-Term Disability Insurance: Coverage that provides a portion of an employee's income if they are unable to work due to a disability. Professional Development Opportunities: Sponsorship of workshops, courses, conferences, or certifications to help employees enhance their skills and knowledge. Recognition Programs: Awards, certificates, or monetary rewards given to employees for exceptional performance or contributions. Flexible Work Arrangements: Options like flexible hours, telecommuting, or compressed workweeks to accommodate employees' needs. Career Growth Opportunities: Clear pathways for advancement and promotions within the organization. Employee Referral Bonuses: Incentives provided to employees who refer qualified candidates for job openings within the company. www.englishpriority.com by GabbyRincon All rights reserved.
16. Banking and Finance: Account Balance: The total amount of money available in a bank account at a specific point in time. Example sentences: • I need to check my account balance before making any transactions. • The account balance determines how much you can withdraw from your savings. Overdraft: A negative account balance that occurs when withdrawals exceed the available funds. Example sentences: • If you overdraw your account, the bank may charge you an overdraft fee. • To avoid overdraft fees, make sure you have sufficient funds before making payments. Loan: A sum of money borrowed from a lender, often with interest, to be repaid over a specified period. Example sentences: • The bank approved my loan application for purchasing a car. • She took out a personal loan to cover unexpected medical expenses. Interest Rate: The percentage of the loan amount that a borrower pays as interest to the lender. Example sentences: • The interest rate on this loan is competitive compared to other options. • Lower interest rates can lead to lower monthly payments on loans. Mortgage: A loan used to purchase real estate, where the property serves as collateral for the loan. Example sentences: • They applied for a mortgage to buy their first home. • The mortgage payment includes both the principal and interest components. www.englishpriority.com by GabbyRincon All rights reserved.
17. Collateral: An asset pledged as security for a loan, which the lender can seize if the borrower fails to repay the loan. Example sentences: • The car was used as collateral when securing the auto loan. • Collateral provides a safety net for lenders in case of default. Credit Score: A numerical representation of an individual's creditworthiness, based on their credit history and financial behavior. Example sentences: • A good credit score is essential for obtaining favorable loan terms. • Lenders consider the applicant's credit score when evaluating loan applications. ATM (Automated Teller Machine): A self-service machine that allows individuals to perform banking transactions, such as cash withdrawals and balance inquiries. Example sentences: • I need to find an ATM to withdraw some cash. • The ATM is convenient for basic banking services outside of business hours. www.englishpriority.com by GabbyRincon All rights reserved.
18. International Business: Exchange Rate: The value of one currency in terms of another currency, determining how much one currency is worth relative to another. Example sentences: • Fluctuations in the exchange rate can impact the cost of importing goods. • The exchange rate between the US Dollar and Euro has been relatively stable. Currency Conversion: The process of converting the value of one currency into the equivalent value in another currency. Example sentences: • We need to consider currency conversion when pricing our products for international markets. • Currency conversion fees may apply when making cross-border transactions. Foreign Exchange Market: The global marketplace where currencies are traded and exchanged, facilitating international trade and investment. Example sentences: • The foreign exchange market operates 24 hours a day due to different time zones. • Companies engaged in international business often hedge against currency fluctuations in the foreign exchange market. Import/Export: Import: The process of bringing goods or services into a country from another country. Export: The process of sending goods or services from one country to another. Example sentences: • The company specializes in the export of agricultural products to international markets. • We need to assess import regulations and tariffs before shipping our products abroad. www.englishpriority.com by GabbyRincon All rights reserved.
19. Trade Deficit/Surplus: Trade Deficit: When a country imports more goods and services than it exports. Trade Surplus: When a country exports more goods and services than it imports. Example sentences: • The trade deficit has led to concerns about the country's economic stability. • A trade surplus can boost a country's currency value and overall economic performance. Customs Duties: Taxes imposed by a country on imported goods, collected at the point of entry. Example sentences: • Customs duties are calculated based on the value of the imported goods. • The company had to factor in customs duties when determining the final cost of imported materials. Tariffs: Taxes or fees imposed by a government on imported goods to protect domestic industries or generate revenue. Example sentences: • The government implemented higher tariffs on certain imported products to stimulate local production. • Tariffs can impact the competitiveness of foreign products in the local market. www.englishpriority.com by GabbyRincon All rights reserved.
20. Entrepreneurship: Venture Capital: Investment capital provided by venture capital firms to startups and early-stage companies in exchange for equity ownership. Example sentences: • Many tech startups rely on venture capital to fund their growth and development. • The venture capital firm invested a substantial amount in the innovative startup. Angel Investor: An individual who provides capital to startups in their early stages in exchange for equity or convertible debt. Example sentences: • The angel investor played a crucial role in funding the company's initial operations. • Startups often seek out angel investors for their expertise and financial support. Startup Costs: The initial expenses incurred when establishing a new business, including equipment, marketing, and legal fees. Example sentences: • The entrepreneur carefully calculated the startup costs to secure funding from investors. • Managing and minimizing startup costs is essential for achieving profitability. Burn Rate: The rate at which a startup or business spends its available funds, often used to assess sustainability. Example sentences: • The startup's burn rate determines how long it can operate before requiring additional funding. • Investors closely monitor the burn rate to ensure the startup's financial health. www.englishpriority.com by GabbyRincon All rights reserved.
21. Pitch: A presentation or proposal given to potential investors to persuade them to fund a business idea or venture. Example sentences: • The entrepreneur delivered an impressive pitch that captured the attention of investors. • Crafting a compelling pitch is crucial for attracting investment and support. Seed Funding: Initial capital provided to startups to help them develop their products or services and establish their business model. Example sentences: • The startup secured seed funding from angel investors to build its prototype. • Seed funding is often used to validate market demand and refine business strategies. Crowdfunding: A method of raising capital for a project or business by collecting small amounts of money from a large number of people, typically via online platforms. Example sentences: • The entrepreneur launched a successful crowdfunding campaign to fund product development. • Crowdfunding provides a way for startups to engage with their target audience and gather financial support. www.englishpriority.com by GabbyRincon All rights reserved.
22. Financial Planning: Retirement Planning: The process of setting financial goals and making arrangements to ensure a comfortable retirement. Example sentences: • Effective retirement planning involves saving and investing for the future. • Many people consult financial advisors to create a solid retirement plan. Savings Account: A bank account that allows individuals to deposit money and earn interest, often used for short-term savings goals. Example sentences: • She opened a savings account to set aside money for a vacation. • A savings account provides a secure way to grow your funds over time. Emergency Fund: Money set aside to cover unexpected expenses or financial emergencies, providing a safety net. Example sentences: • It's important to have an emergency fund to handle unexpected medical bills or car repairs. • Financial advisors recommend maintaining three to six months' worth of living expenses in your emergency fund. 401(k)/IRA (Individual Retirement Account): Retirement savings accounts that offer tax advantages to encourage individuals to save for their retirement. Example sentences: • Many employers offer a 401(k) plan as part of their employee benefits package. • Opening an IRA can provide additional retirement savings options beyond employer-sponsored plans. www.englishpriority.com by GabbyRincon All rights reserved.
23. Financial Advisor: A professional who provides expert advice on financial matters, including investments, retirement planning, and wealth management. Example sentences: • I consulted a financial advisor to develop a personalized investment strategy. • A skilled financial advisor can help you make informed decisions about your financial future. Estate Planning: The process of creating a plan for distributing assets and wealth after an individual's death. Example sentences: • Estate planning involves writing a will and designating beneficiaries for various assets. • An effective estate plan ensures that your wishes are carried out and minimizes tax implications. www.englishpriority.com by GabbyRincon All rights reserved.
24. Taxation: Tax Deduction: A specific expense or allowance that reduces the amount of taxable income, resulting in a lower tax liability. Example sentences: • Homeowners may be eligible for a tax deduction on mortgage interest payments. • Donations to eligible charities can lead to valuable tax deductions. Tax Credit: An amount directly subtracted from the total tax owed, often provided as an incentive for certain behaviors or expenditures. Example sentences: • Families with children may qualify for a child tax credit. • Renewable energy investments can lead to tax credits for environmentally friendly practices. Tax Return: A formal document filed with the government that reports a person's income and tax liability, used to determine the final tax owed or refund due. Example sentences: • Taxpayers are required to file their tax returns by the specified deadline. • Filing an accurate tax return is essential for complying with tax regulations. Taxable Income: The portion of an individual's income that is subject to taxation after deductions and exemptions. Example sentences: • Taxable income includes wages, salaries, and certain investment gains. • Tax planning strategies aim to minimize taxable income and maximize deductions. Tax Evasion: The illegal act of intentionally not reporting or underreporting income to avoid paying taxes owed. Example sentences: • Tax evasion can result in severe penalties, including fines and criminal charges. • Authorities actively investigate cases of suspected tax evasion. www.englishpriority.com by GabbyRincon All rights reserved.
25. Tax Audit: An examination of an individual's or business's financial records and tax returns to verify accuracy and compliance with tax laws. Example sentences: • The company underwent a tax audit to ensure proper documentation of expenses. • Being selected for a tax audit can be stressful, but maintaining accurate records helps. IRS (Internal Revenue Service): The federal agency responsible for enforcing tax laws, collecting taxes, and administering the U.S. tax system. Example sentences: • Taxpayers communicate with the IRS regarding tax-related matters. • The IRS provides guidelines for filing tax returns and understanding tax regulations. Negotiations and Contracts: Payment Terms: Agreed-upon conditions outlining when and how payments will be made for goods or services. Example sentences: • The payment terms specify that the invoice must be settled within 30 days. • Negotiating favorable payment terms is crucial for maintaining healthy cash flow. Down Payment: An initial payment made upfront as part of a larger transaction, often used in purchases of property or high-value items. Example sentences: • The buyer paid a substantial down payment to secure the property. • The down payment is a percentage of the total purchase price. Milestone Payment: Payments made at specific project milestones or completion stages as outlined in a contract. Example sentences: • The project is divided into phases, each with its own milestone payment. • Milestone payments ensure that progress is tracked and compensation is aligned with achievements. www.englishpriority.com by GabbyRincon All rights reserved.
26. Escrow: A financial arrangement where a third party holds funds or assets until specific conditions are met in a contract. Example sentences: • The escrow account will hold the down payment until the closing process is complete. • Escrow provides security and ensures that contractual obligations are fulfilled. Contractual Obligations: The responsibilities and commitments agreed upon by parties involved in a contract. Example sentences: • Both parties are bound by their contractual obligations to deliver the agreed-upon services. • The contract outlines each party's rights and obligations in clear terms. Penalties: Financial consequences or fines imposed for non-compliance with contract terms or agreements. Example sentences: • Late delivery may result in penalties outlined in the contract. • Penalties deter parties from failing to fulfill their contractual commitments. Liquidated Damages: A pre-agreed amount of compensation specified in a contract to be paid by the party in breach of contract. Example sentences: • The contract includes a clause detailing liquidated damages in case of delays. • Liquidated damages provide a clear remedy in case of contract violations. www.englishpriority.com by GabbyRincon All rights reserved.