English vocabulary by topic
Business Vocabulary
Discuss how a company earns money, serves customers and makes decisions. This guide separates financial terms that learners often confuse, such as revenue, profit and cash flow. It also gives you language for suppliers, contracts and growth without relying on unnecessary corporate jargon.
20 words and phrases · A2–C1 teaching levels · 5 quiz questions
How to use this vocabulary naturally
Use make a profit, sign a contract and conduct market research. Revenue is money earned from normal business activities; profit is what remains after relevant costs are deducted. Cash flow concerns money moving in and out, so it is not another word for profit.
Vocabulary by level
Levels are approximate teaching guides for the meanings shown, not official CEFR word classifications. Start where you feel comfortable and practise each word in your own sentence.
A2 — Everyday essentials
company
A2noun
an organisation that sells goods or services
Example: The company repairs bicycles and sells spare parts.
customer
A2noun
a person or organisation buying a product or service
Example: A customer asked whether the bag came in another colour.
price
A2noun
the amount asked for a product or service
Example: The price includes delivery within the city.
sell
A2verb
to exchange a product or service for money
Example: The shop sells notebooks made from recycled paper.
cost
A2noun
money needed to produce or obtain something
Example: The cost of packaging increased this month.
B1 — Build your range
supplier
B1noun
a business or person providing goods or materials
Example: Our supplier delivers fresh flowers twice a week.
client
B1noun
a person or organisation using professional services
Example: The designer met a client to discuss a new logo.
order
B1noun
a request to buy goods or services
Example: The bakery received a large order for a wedding.
profit
B1noun
money remaining after relevant business costs are deducted
Example: The stall made a small profit after paying its expenses.
budget
B1noun
a plan for expected income and spending
Example: We set a budget before booking the advertising space.
contract
B1noun
an agreement creating obligations between parties
Example: Both companies signed the delivery contract.
competitor
B1noun
a business offering similar goods or services
Example: A new competitor opened across the street.
B2 — More precise language
revenue
B2noun
money earned from normal business activities before deducting costs
Example: Subscription revenue rose after the launch of a student plan.
invoice
B2noun
a document requesting payment for goods or services
Example: The photographer sent an invoice after completing the work.
investment
B2noun
money or resources put into something with an expected future benefit
Example: The new oven was a major investment for the bakery.
market research
B2noun phrase
gathering information about customers and a market
Example: Market research showed that shoppers wanted smaller packages.
cash flow
B2noun phrase
the movement of money into and out of a business
Example: Late customer payments made cash flow difficult that month.
negotiate
B2verb
to discuss terms in order to reach an agreement
Example: We negotiated a delivery schedule with the supplier.
C1 — Extend your expression
overheads
C1plural noun
ongoing operating expenses not directly tied to a particular product
Example: Sharing a workspace helped the small firm reduce its overheads.
competitive advantage
C1noun phrase
a quality that helps a business perform better than rivals
Example: Fast local repairs give the shop a competitive advantage.
Common mistakes and better choices
Check: The shop did a profit.
Use: The shop made a profit.
Make a profit is the normal collocation.
Check: Revenue is the money left after all costs.
Use: Profit is the money left after relevant costs.
Revenue is earned before costs are deducted; profit accounts for costs.
Check: We need more informations about customers.
Use: We need more information about customers.
Information is uncountable. Use pieces of information if you need to count items.
IELTS speaking examples
These original practice prompts are not official test questions or scored answers. Adapt the language to your own experience. The Part 2 extract is an opening to expand into a longer response.
Part 1
Do you prefer shopping in small shops or large stores?
I often choose small shops because the staff remember their customers. Prices can be slightly higher, but personal service gives a local company a competitive advantage for me.
Practise: Use business terms to explain an ordinary shopping preference.
Part 2 — sample opening
Describe a small business you know.
There is a family bakery near my home that started with a very limited budget. The owners did market research by asking neighbours what they wanted. They now receive regular orders from local offices, although rising costs still affect their profit.
Practise: Continue with what the business offers, who runs it and why it interests you.
Part 3
What challenges do new businesses face?
New businesses need customers, but they also need reliable cash flow. Revenue may look promising while invoices remain unpaid. Careful budgeting and dependable suppliers can help, although they cannot remove every risk.
Practise: Distinguish revenue from cash flow when developing the explanation.
Check your understanding
Five-question vocabulary quiz
Choose one answer for each question. Your first choice is scored; read the explanation before moving on.
0 of 5 answered · 0 correct