VOCABULARY FOR MONEY AND FINANCE

1. Money: The medium of exchange in the form of currency or coins;

used in transactions of goods and services.

Example: The company received a substantial amount of money from its

investors to fund the expansion project.

2. Finance: The management of money, investments, and other financial

activities.

Example: The finance department is responsible for analyzing the

company's financial statements and providing recommendations for cost
reduction.

3. To make a loss: Incur a financial deficit; when expenses exceed

revenue.

Example: The new product launch did not perform well, causing the
company to make a significant loss in the last quarter.

4. An upturn in the market: A positive change or increase in economic

activity, especially in the business environment.

Example: The recent innovations in technology have led to an upturn in

the market for electronic devices.

5. Sales figures: Data representing the amount of goods or services sold

by a business over a specific period.

Example: The sales figures for the third quarter exceeded expectations,
showcasing the success of the marketing campaign.

6. Income: The money received by an individual or business, usually in

the form of wages, profits, or investments.

Example: The company's primary source of income is derived from its

diverse portfolio of products.
7. An economic downturn: A period of reduced economic activity,
characterized by declining production and increased unemployment.

Example: During the economic downturn, many businesses had to

implement cost-cutting measures to survive.

8. Overheads: Fixed costs of running a business that do not vary with

production or sales, such as rent and utilities.

Example: The company's overheads increased after moving to a larger

office space.

9. The exchange rate: The value of one currency in terms of another; the
rate at which currencies can be exchanged.

Example: Fluctuations in the exchange rate can impact the cost of

importing raw materials for manufacturing.

10. Cash flow: The movement of money into and out of a business;
crucial for its operational sustainability.

Example: Efficient management of cash flow is essential to meet short-

term financial obligations.

11. An overdraft: A financial arrangement that allows an account holder

to withdraw more money than is available in their account.

Example: The company used an overdraft facility to cover unexpected

expenses during a cash flow shortage.

12. To get into debt: To owe money; to have borrowed funds that need
to be repaid.

Example: Taking out a loan to finance expansion plans caused the

business to get into debt.
13. To go out of business: The cessation of operations; closing down a
business.

Example: Due to intense competition, the small bookstore had to go out

of business.

14. To peak: Reach the highest point; the maximum level of

performance or success.

Example: The demand for the new product is expected to peak during
the holiday season.

15. Expenditure/outlay: The spending of money, especially for business

purposes.

Example: The company carefully monitors its expenditure to ensure that

resources are allocated efficiently.

16. A budget: A financial plan outlining expected revenues and expenses

for a specific period.

Example: The marketing team developed a budget for the upcoming

campaign to control costs and maximize ROI.

17. To undercut competitors: To offer goods or services at a lower price

than competitors to gain a competitive advantage.

Example: The new entrant in the market decided to undercut

competitors, attracting price-sensitive customers.

18. To drop: A decrease in the value or quantity of something, such as

prices or sales.

Example: The sudden announcement of a competitor's new product

caused the company's stock prices to drop.

19. Accounts: Financial records that track the transactions and financial
position of a business.
Example: The accountant meticulously reviewed the company's accounts
to prepare for the annual audit.

20. To break even:

The point at which total revenue equals total costs, resulting in no profit
or loss.

Example: The business aimed to increase sales to break even and

eventually generate a profit.