VOCABULARY
TOEIC Business & Management Vocabulary
60 essential TOEIC vocabulary words for the Business & Management category, each with a definition and an example sentence. These words appear frequently in Parts 3, 4, and 7.
Category: Business & Management60 Key Terms
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Mastering Business & Management vocabulary is crucial because these themes span across multiple parts of the test. Recognizing the context immediately improves both your listening and reading speed.
Key Terms
| Word | Meaning | Example | Level |
|---|---|---|---|
| acquire | To buy or obtain, especially another company | The company plans to acquire a local competitor. | Easy |
| merger | A combination of two companies into one | The merger will take effect next month. | Easy |
| subsidiary | A company controlled by a larger parent company | Our new subsidiary is based in Tokyo. | Hard |
| expand | To become or make larger in size or scope | We plan to expand into three new markets this year. | Easy |
| launch | To introduce a new product or service to the market | The team will launch the redesigned app in June. | Easy |
| strategy | A plan of action designed to achieve a long-term goal | Our pricing strategy targets small businesses. | Easy |
| competitor | A company that sells similar products in the same market | Our main competitor lowered its prices last quarter. | Easy |
| headquarters | The main office of an organization | The company moved its headquarters to Singapore. | Easy |
| stakeholder | A person or group with an interest in a business decision | Every stakeholder received a copy of the proposal. | Medium |
| partnership | A formal business relationship between two parties | The partnership gives us access to their distribution network. | Easy |
| venture | A new business activity that involves risk | The joint venture combines our research teams. | Medium |
| initiative | A new plan or process started to solve a problem | The sustainability initiative reduced packaging waste by 30 percent. | Medium |
| objective | A specific result a person or organization aims to achieve | Our objective for this quarter is to double subscriptions. | Easy |
| restructure | To reorganize the way a company is arranged | Management decided to restructure the sales division. | Medium |
| consolidate | To combine several things into a single more effective one | We consolidated four regional offices into one. | Hard |
| delegate | To give a task or responsibility to another person | Good managers delegate routine approvals to their team. | Medium |
| oversee | To supervise a person or process | Ms. Tanaka will oversee the transition to the new system. | Medium |
| mandate | An official order or authority to do something | The board gave the new director a clear mandate. | Hard |
| feasible | Possible to do easily or conveniently | A December launch is not feasible with the current budget. | Medium |
| viable | Capable of working successfully | The consultants confirmed the plan is financially viable. | Medium |
| leverage | To use something to maximum advantage | We can leverage our existing customer base to promote the service. | Hard |
| diversify | To expand into a wider range of products or markets | The firm diversified into renewable energy. | Hard |
| benchmark | A standard against which performance is measured | Industry benchmarks suggest our delivery times are competitive. | Medium |
| outsource | To have work done by an outside company | We outsource payroll to a specialist provider. | Medium |
| proprietary | Owned by a company and protected from use by others | The algorithm is proprietary technology. | Hard |
| affiliate | A company officially connected to a larger one | Our European affiliate handles regional distribution. | Medium |
| portfolio | The full range of products or investments a company holds | The acquisition strengthens our product portfolio. | Medium |
| milestone | A significant stage in the progress of a project | Reaching one million users was a major milestone. | Easy |
| projection | An estimate of a future amount based on current data | Sales projections for next year look promising. | Medium |
| incentive | Something that motivates a person to act | The bonus program is an incentive to exceed targets. | Medium |
| sector | A distinct part of an economy or market | The manufacturing sector recovered faster than expected. | Easy |
| franchise | A licence to operate a business under an established brand | She purchased a franchise in the downtown district. | Medium |
| liquidate | To close a business and sell its assets to pay debts | The retailer was forced to liquidate its remaining stock. | Hard |
| streamlined | Made simpler and more efficient | The streamlined approval process saves two days per order. | Medium |
| prospective | Likely to happen or become something in the future | Prospective clients will tour the facility on Friday. | Medium |
| collaborate | To work jointly with others on a project | Both departments collaborated on the annual report. | Easy |
| mandatory | Required by rule or law | Attendance at the safety briefing is mandatory. | Medium |
| endorse | To publicly declare approval or support | The association endorsed the new industry standard. | Hard |
| surpass | To exceed or do better than | Third-quarter results surpassed all expectations. | Medium |
| conglomerate | A large corporation made up of several different companies | The conglomerate owns businesses in media and shipping. | Hard |
| market share | The portion of a market's total sales that one company holds | The tablet line gained four percent of market share last year. | Easy |
| negotiate | To discuss terms in order to reach an agreement | The two firms negotiated a three-year supply agreement. | Easy |
| proposal | A formal written plan put forward for consideration | The proposal was submitted to the board on Monday. | Easy |
| executive | A senior manager with authority over a company or division | The executive team meets every second Tuesday. | Easy |
| quarterly | Happening once every three months | Quarterly results will be announced on 15 October. | Easy |
| bid | An offer to supply goods or services at a stated price | Four contractors submitted a bid for the renovation. | Medium |
| shareholder | A person or institution that owns shares in a company | Shareholders approved the dividend at the annual meeting. | Medium |
| downturn | A period of declining business activity | The downturn forced the company to postpone its expansion. | Medium |
| innovate | To introduce new methods, products, or ideas | The division was created to innovate faster than competitors. | Medium |
| pilot program | A small trial run before a full launch | The pilot program runs in two stores before the national rollout. | Medium |
| rollout | The staged introduction of a product or system | The software rollout begins with the Tokyo office. | Medium |
| entrepreneur | A person who starts a business and takes on its risk | The award recognizes entrepreneurs under the age of thirty. | Medium |
| takeover | The purchase of one company by another | The takeover gave the buyer control of six factories. | Medium |
| facilitate | To make a process easier or help it happen | An outside consultant facilitated the planning session. | Medium |
| divest | To sell off a business unit or asset | The group divested its printing division last spring. | Hard |
| valuation | An estimate of what a company or asset is worth | The valuation came in well above the asking price. | Hard |
| due diligence | A thorough review of a business before a deal is signed | Due diligence uncovered two unresolved lawsuits. | Hard |
| governance | The system of rules and practices by which a company is directed | The report criticized the firm's corporate governance. | Hard |
| synergy | Combined effort producing more than the parts would separately | Management expects synergy between the two sales teams. | Hard |
| spearhead | To lead an effort or campaign | She spearheaded the move into the South American market. | Hard |
Frequently asked questions
Why is Business & Management vocabulary important for TOEIC?
A significant portion of TOEIC test questions are set in Business & Management contexts. Knowing these terms allows you to understand the situation immediately without guessing.
What is the best way to study these words?
Study the words within their example sentences rather than in isolation, and pay attention to their collocations — the words that frequently appear alongside them.
How long does it take to learn these 60 words?
At 10 words per day, one pass through this list takes about 6 days. Reviewing the same words the next day and again a week later is what makes them stick.
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