English Business Vocabulary Flashcards

Legal Entities and Corporate Forms

Understanding the different types of business entities is fundamental for anyone working in or studying business. A legal person is an entity recognized by law as having rights and duties. This means it can own property, enter contracts, and sue or be sued. In many jurisdictions, corporations and limited liability companies (LLCs) are considered legal persons, whereas a sole proprietorship is not.

A publicly listed company has its shares traded on a stock exchange. This status gives the company access to a large pool of capital but also subjects it to strict reporting requirements.

Limited liability protects shareholders from personal responsibility for company debts. In practice, shareholders are only liable up to the amount they have invested. This protection does not apply to a sole proprietorship, where the owner and the business are legally the same entity, meaning the owner is fully liable for all debts.

In the United Kingdom the term company is used, while in the United States the equivalent term is corporation. Both refer to a business entity, but the terminology differs by country.

Financing and Capital Raising

Businesses often raise money by issuing shares. When a company issues new shares, it can attract new investors and increase its capital base. This process is distinct from borrowing, which creates debt that must be repaid.

Non‑Governmental Organizations (NGOs)

An NGO stands for non‑governmental organization. NGOs operate independently of direct government control, though they may receive public funding. It is a common misconception that all NGOs are non‑profit; in reality, NGOs can be either non‑profit or for‑profit depending on their mission.

The main difference between an NGO and a lobby group lies in purpose. NGOs pursue broader social or environmental missions, while lobby groups focus on influencing specific legislation or policy decisions.

Mergers, Acquisitions, and Takeovers

An acquisition occurs when one firm purchases another. A hostile takeover is a type of acquisition where the target company resists the purchase. In contrast, a friendly takeover proceeds with the target’s cooperation.

Merger types are distinguished by the relationship between the merging firms. A horizontal merger combines companies that operate at the same stage of production—essentially competitors in the same market. A vertical merger joins firms at different stages of the supply chain, such as a supplier merging with its buyer.

Prefixes and Word Formation

The prefix il‑ means “not” when attached to words beginning with the letter “l,” as in “illegal.” Another common negative prefix is un‑, which generally creates a negative meaning, though there are exceptions (e.g., “unusual” does not simply mean “not usual”).

The opposite of “limited” is unlimited, indicating no restriction on quantity or scope.

Meeting Language and Communication

The person who leads a meeting is called the chairperson. The agenda outlines the topics to be discussed and helps keep the meeting on track. Frequent digressions are discouraged because they reduce efficiency.

Setting up a meeting involves organizing the time, place, and participants, whereas presiding over a meeting means directing the discussion and ensuring the agenda is followed.

When expressing a personal view, the phrase “In my opinion, …” is commonly used. Similarly, “I firmly believe …” signals strong conviction. The statement “From my point of view” does not present objective facts; it also signals a subjective opinion.

Numeric Expressions and Punctuation

A group of twelve items is called one dozen. In English notation, a comma separates thousands (e.g., 1,000,000). A billion in English equals 10^9, or one thousand million, following the short‑scale system.

When “important” does not convey size, the word significant is often used. For example, “He spent a considerable amount of money” emphasizes the large amount rather than its importance. The notion that “important” commonly means “large” is a false friend; English speakers typically use “large,” “big,” or “considerable” for that sense.

Summary of Key Terms