VOCABULARY
TOEIC Business & Management Vocabulary
40 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 & Management40 Key Terms
Download on theApp StoreWhy this matters
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 |
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 40 words?
At 10 words per day, one pass through this list takes about 4 days. Reviewing the same words the next day and again a week later is what makes them stick.
Other guides
Try TOEIC Ready
AI-predicted ready date. Adaptive practice for every TOEIC part. Refund if the prediction misses.
Download on theApp Store