TOEIC Business Vocabulary 2 — Questions and Answers
Question 1: What does it mean to 'allocate' resources in a business project?
- To spend all available funds immediately
- To assign or distribute resources for specific purposes (Correct answer)
- To request additional funding from investors
- To reduce the number of employees on a project
Correct answer: To assign or distribute resources for specific purposes
To allocate means to distribute or assign available resources such as budget, time, or personnel to specific tasks or departments.
Question 2: If a company reports results 'quarterly,' how often does it report?
- Once a year
- Every month
- Every three months (Correct answer)
- Every six months
Correct answer: Every three months
Quarterly means four times a year, with each quarter covering approximately a three-month period.
Question 3: When a company agrees to 'reimburse' an employee, what does it mean?
- To promote the employee to a higher position
- To pay back the employee for expenses they already spent (Correct answer)
- To assign additional duties to the employee
- To provide advance payment before work begins
Correct answer: To pay back the employee for expenses they already spent
To reimburse means to repay someone for money they have already spent on behalf of the company.
Question 4: What does the term 'outsource' mean in a corporate context?
- To hire more full-time employees for a department
- To bring all business functions in-house
- To hire an external company or individual to handle certain tasks (Correct answer)
- To open a new branch office overseas
Correct answer: To hire an external company or individual to handle certain tasks
Outsourcing means contracting work or services to an outside company or freelancer rather than performing them internally.
Question 5: What is a company's 'fiscal year'?
- The calendar year from January to December
- A 12-month period used for financial accounting and tax purposes (Correct answer)
- The month in which a company was founded
- The annual period for employee performance reviews
Correct answer: A 12-month period used for financial accounting and tax purposes
A fiscal year is a 12-month accounting period used by a company for budgeting, financial reporting, and taxation, which may or may not align with the calendar year.
Question 6: If a business partner sends a 'proposal,' what have they sent?
- A final signed contract
- A plan or suggestion outlining a potential project or deal (Correct answer)
- A complaint about service received
- An official invoice for payment
Correct answer: A plan or suggestion outlining a potential project or deal
A proposal is a document that presents a plan, idea, or offer for consideration, typically before a final agreement is made.
Question 7: What does 'overhead' refer to in business finances?
- Income earned from premium clients
- Costs directly tied to producing a specific product
- Ongoing operating expenses not linked to specific products or services (Correct answer)
- Revenue generated above the expected target
Correct answer: Ongoing operating expenses not linked to specific products or services
Overhead refers to indirect business costs such as rent, utilities, and administrative salaries that are necessary to run the business but not directly tied to production.
TOEIC Business Vocabulary 2
What does it mean to 'allocate' resources in a business project?