TOEIC Business Vocabulary 3

Question 1

In business, what does 'acquisition' most accurately mean?

Accepted Answer

The act of one company purchasing another company

Answer

An acquisition is when one company buys a controlling stake or the entirety of another company.

Question 2

What is 'depreciation' in accounting and business?

Accepted Answer

The gradual reduction in the value of an asset over time

Answer

Depreciation is the systematic reduction in the recorded cost of a fixed asset over its useful life, reflecting wear and obsolescence.

Question 3

When executives discuss 'due diligence' before a merger, what are they referring to?

Accepted Answer

A thorough investigation and evaluation of a business before a deal

Answer

Due diligence is a comprehensive appraisal of a business conducted before signing a contract to evaluate assets, liabilities, and business potential.

Question 4

What does 'benchmark' mean in a business performance context?

Accepted Answer

A standard or point of reference used to measure performance

Answer

A benchmark is a standard or reference point against which a company's performance, products, or processes can be measured and compared.

Question 5

What is the meaning of 'synergy' when used in a business merger context?

Accepted Answer

The combined benefit greater than the sum of separate parts working together

Answer

Synergy in business refers to the concept that two companies working together can achieve more value or efficiency than they could separately.

Test of English for International Communication (TOEIC) Practice Test