Business, Money and Investment IELTS Flashcards
The act of putting money, effort, or resources into an enterprise to gain profit.
Investment
Example sentence: “Diversifying your investments is crucial for minimizing risks in the volatile market.”
Financial gain, especially the difference between the amount earned and the amount spent.
Profit
Example sentence: “The company’s new strategy resulted in significant profits this quarter.”
A newly established business or company designed to rapidly grow.
Startup
Example sentence: “Many entrepreneurs dream of launching a successful startup.”
Financial assets or resources used in the production of goods and services.
Capital
Example sentence: “Securing enough capital is a major challenge for small businesses.”
Producing a great deal of profit.
Lucrative:
Example sentence: “Real estate has proven to be a lucrative investment over the years.”
Capable of being maintained over the long term without harming the environment or depleting resources.
Sustainable
Example sentence: “Investing in sustainable technologies is not only ethical but also financially wise.”
Involving the possibility of financial loss or failure.
Risky
Example sentence: “Cryptocurrency investments can be highly risky due to market volatility.”
Varied in terms of investments to spread risk.
Diversified
Example sentence: “A diversified portfolio helps protect against fluctuations in specific markets.”
To distribute resources or funds for a particular purpose.
Allocate
Example sentence: “It’s essential to carefully allocate your budget to meet both short-term and long-term goals.”
To obtain a reward or benefit, especially as a result of effort.
Reap:
Example sentence: “Investors patiently wait to reap the benefits of a well-thought-out strategy.”
To convert assets into cash.
Liquidate
Example sentence: “During economic downturns, businesses may need to liquidate certain assets to survive.”
To promote the growth or development of something.
Foster:
Example sentence: “The government aims to foster innovation by providing grants to new businesses.”
In a way that is carefully planned to achieve a particular goal.
Strategically
Example sentence: “Investing strategically in emerging markets can yield significant returns.”
Regularly and without variation.
Consistently
Example sentence: “Successful investors consistently monitor market trends and adjust their portfolios accordingly.”
In a way that shows a careful consideration of possible risks.
Cautiously
Example sentence: “It’s advisable to approach high-risk investments cautiously.”
With persistent effort and attention to detail.
Diligently
Example sentence: “Entrepreneurs who diligently manage their finances are more likely to succeed.”
To take advantage of an opportunity, especially for financial gain.
Cash in on:
Example sentence: “Some savvy investors know how to cash in on market fluctuations.”
To delay or postpone.
Hold off:
Example sentence: “The company decided to hold off on expanding until market conditions improved.”
To generate income or profits.
Bring in:
Example sentence: “The new product launch is expected to bring in substantial revenue.”
To reduce in size, extent, or quantity.
Scale back:
Example sentence: “During economic uncertainty, businesses may need to scale back their operations.”
Having a lot of money; being very wealthy.
Rolling in dough: Informal
Example sentence: “Ever since she started her own business, she’s been rolling in dough.”
To face a difficult situation with courage.
Bite the bullet:
Example sentence: “During tough economic times, entrepreneurs often have to bite the bullet and make tough decisions.”
To spend more money than planned or than is reasonable.
Break the bank:
Example sentence: “Buying the latest technology can sometimes break the bank if you’re not careful.”
Taking shortcuts or reducing costs, often in a way that compromises quality.
Cutting corners:
Example sentence: “Cutting corners in business practices can lead to long-term problems.”
To risk everything on a single venture.
Put all your eggs in one basket:
Example sentence: “Diversification is crucial; you never want to put all your eggs in one basket when investing.”
To make a financial gain.
Turn a profit:
Example sentence: “The company struggled in its early years but eventually turned a profit.”
To achieve a big success or gain a windfall.
Hit the jackpot:
Example sentence: “Investors who bought early hit the jackpot when the company went public.”
To handle a situation in a flexible manner without a definite plan.
Play it by ear:
Example sentence: “In the dynamic world of business, sometimes you have to play it by ear and adapt quickly.”
To negotiate and reach an agreement.
Cut a deal:
Example sentence: “The two companies decided to cut a deal to collaborate on the new project.”
To successfully obtain financial support
Secure funding:
Example sentence: “Startups often face challenges in securing funding for their innovative ideas.”
To engage in an action with an uncertain outcome.
Take a risk:
Example sentence: “Entrepreneurs must be willing to take calculated risks to achieve success.”
To recover from a setback or decline.
Make a comeback:
Example sentence: “After facing financial challenges, the company managed to make a comeback with a new product.”
A sum of money paid regularly by a company to its shareholders out of its profits.
Dividend
Example sentence: “Investors often appreciate stocks that not only appreciate in value but also provide regular dividends.”
Something pledged as security for a loan, to be forfeited in the event of a default.
Collateral
Example sentence: “When applying for a business loan, the entrepreneur may need to provide collateral such as real estate or equipment.”
Introducing new ideas or methods; creative and original.
Innovative
Example sentence: “Innovative companies that embrace technological advancements tend to stay ahead in the competitive market.”
Using borrowed capital for investment with the expectation that the profits made will be greater than the interest payable.
Leveraged
Example sentence: “Leveraged investments can amplify returns, but they also come with increased risk.”
To estimate or predict future trends or outcomes.
Forecast
Example sentence: “Economists carefully analyze data to forecast economic growth and market conditions.”
To convert an asset or any object into money or legal tender.
Monetize
Example sentence: “Content creators often seek ways to monetize their online platforms through ads and sponsorships.”
In a way that is assertive, proactive, or characterized by bold action.
Aggressively
Example sentence: “Some investors choose to pursue opportunities aggressively to maximize their returns.”
Without interruption; constantly.
Incessantly
Example sentence: “In the world of finance, information flows incessantly, requiring investors to stay well-informed.”
To provide support or evidence for a decision or claim.
Back up:
Example sentence: “It’s crucial to back up financial projections with solid data when presenting to potential investors.”
To convert assets into cash, especially to realize gains.
Cash out:
Example sentence: “Some entrepreneurs choose to cash out their investments after achieving a specific business milestone.”
To give up; to surrender or quit.
Throw in the towel:
Example sentence: “After facing continuous losses, some traders decide to throw in the towel and exit the market.”
To seek information or advice from someone who is knowledgeable about a particular subject.
Pick someone’s brain:
Example sentence: “Entrepreneurs often meet with experienced mentors to pick their brains about business strategies.”
To stop further losses in a losing investment or situation.
Cut one’s losses:
Example sentence: “When the market takes a downturn, it’s sometimes wise to cut your losses and move on.”
Facing the same challenges or in a similar situation.
All in the same boat:
Example sentence: “During an economic recession, businesses are all in the same boat, trying to survive and adapt.”
To reach an agreement through negotiation.
Strike a deal:
Example sentence: “Both parties were able to strike a deal that benefited their respective interests.”
To secure funds for a business or project.
Raise capital:
Example sentence: “Startups often rely on various methods to raise capital, including crowdfunding and venture capital.”
Investment made by a foreign entity (individual or corporation) into the economy of another country, often with the goal of establishing business operations or acquiring assets.
Foreign Direct Investment (FDI):
Example sentence: “Foreign Direct Investment plays a crucial role in boosting economic development as it brings in capital, technology, and expertise from external sources. For instance, China has attracted substantial FDI, contributing significantly to its rapid industrialization.”
Collaborative arrangements between government entities and private sector companies for the purpose of financing, designing, implementing, and operating projects or services that were traditionally provided by the public sector.
Public-Private Partnerships (PPPs):
Example sentence: “Public-Private Partnerships have become increasingly popular in infrastructure development, such as building highways or public transportation systems. For instance, the government may partner with a private construction company to fund and build a new airport.”
Economic development that meets the needs of the present without compromising the ability of future generations to meet their own needs. It often involves balancing economic growth, social inclusion, and environmental sustainability.
Sustainable Development:
Example sentence: “Countries worldwide are recognizing the importance of integrating sustainable development practices into their economic policies. For example, Scandinavian nations are known for their commitment to sustainable development, with policies that prioritize renewable energy and environmental conservation.”
The ethical framework and voluntary initiatives that businesses adopt to contribute to the well-being of society. This includes environmental sustainability, ethical labor practices, and community development.
Corporate Social Responsibility (CSR):
Example sentence: “Corporate Social Responsibility has become a key consideration for companies aiming to build a positive public image. Many multinational corporations allocate funds for CSR activities, such as supporting local education initiatives or environmental conservation projects.”
The rate at which the general level of prices for goods and services rises, eroding purchasing power. In the context of investments, inflation can affect the real value of returns.
Inflation and its Impact on Investments:
Example sentence: “Understanding the impact of inflation on investments is crucial for investors. For instance, during periods of high inflation, assets like real estate may serve as a hedge as their value tends to appreciate, unlike cash holdings.”
Digital or virtual currencies that use cryptography for security and operate on decentralized networks. Blockchain is the underlying technology that enables the secure and transparent recording of transactions.
Cryptocurrency and Blockchain Technology:
Example sentence: “Cryptocurrency, such as Bitcoin, has emerged as a disruptive force in the financial landscape. The application of blockchain technology goes beyond cryptocurrencies, showing promise in areas like supply chain management and secure digital identity verification.”
Digital or virtual currencies that use cryptography for security and operate on decentralized networks.
Cryptocurrency
Example sentence: “Cryptocurrencies, such as Bitcoin, have emerged as a disruptive force in the financial landscape. The decentralized nature of these digital currencies means that they are not controlled by any central authority, providing users with greater financial autonomy and security.”
The distribution of power, authority, or control across multiple nodes or entities, reducing reliance on a single central authority.
Decentralization
Example sentence: “The key strength of blockchain lies in its decentralization, as it eliminates the need for a central governing body. This decentralization not only enhances security but also promotes trust in transactions.”
The quality of being economical with resources, avoiding unnecessary expenditures.
Frugality
Example sentence: “Practicing frugality by cooking at home instead of dining out can lead to significant savings.”
Making unplanned purchases without careful consideration.
Impulse buying:
Example sentence: “Impulse buying can undermine efforts to stick to a budget, as individuals may succumb to the allure of immediate gratification.”
Showing a careful use of money; economical.
Thrifty
Example sentence: “Being thrifty involves seeking discounts and making informed choices to maximize the value of each dollar spent.”
The amount of money a person has left over after taxes, which can be spent or saved.
Disposable income:
Example sentence: “Understanding your disposable income is crucial for effective financial planning.”
A strict economic policy of reducing government spending and increasing taxes.
Austerity:
Example sentence: “During economic downturns, governments may implement austerity measures to stabilize public finances.”
Spending only what one can afford based on income.
Living within means:
Example sentence: “Living within your means requires careful budgeting and avoiding unnecessary debt.”
A large amount of money that is received unexpectedly or as a surprise.
Windfall
Example sentence: “Receiving a bonus at work can be a financial windfall that allows for extra savings or indulgences.”
The complete offering of salary, benefits, and other perks provided by an employer.
Compensation package:
Example sentence: “When considering a job offer, it’s essential to evaluate the entire compensation package, including health benefits and retirement plans.”
Giving a high priority to the acquisition of material possessions.
Materialistic
Example sentence: “Some people find fulfillment in experiences rather than materialistic pursuits.”
Reluctant or hesitant to take risks, especially with investments.
Risk-averse
Example sentence: “Risk-averse individuals may prefer conservative investment strategies to preserve their capital.”
The ability to understand and use various financial skills, including personal financial management, budgeting, and investing.
Financial literacy:
Example sentence: “Improving financial literacy is essential for making informed decisions about money and investments.”
The amount of money needed to sustain a certain standard of living, including expenses like housing, food, and transportation.
Cost of living:
Example sentence: “The cost of living varies significantly from one city to another, influencing salary expectations for professionals.”
The process of discussing and reaching an agreement on the compensation for a job position.
Salary negotiation:
Example sentence: “Effective salary negotiation is a skill that can significantly impact one’s overall financial well-being.”
Additional payments or rewards provided by employers, often based on performance or meeting specific targets.
Bonuses and incentives:
Example sentence: “Companies may offer bonuses and incentives to motivate employees and recognize exceptional contributions.”
The ability to meet all financial needs without relying on external support.
Financial independence:
Example sentence: “Achieving financial independence is a common goal, as it allows individuals to make choices based on personal values rather than financial constraints.”
Spending money primarily for pleasure and immediate gratification.
Hedonistic spending:
Example sentence: “Hedonistic spending can provide temporary joy but may have long-term consequences on financial stability.”
A cautious approach to economic and financial policies, favoring stability and gradual changes.
Economic conservatism:
Example sentence: “Countries may adopt economic conservatism during times of uncertainty to mitigate risks and maintain fiscal responsibility.”
The process of acquiring and increasing financial assets and resources over time.
Wealth accumulation:
Example sentence: “Wealth accumulation involves strategic planning, disciplined saving, and wise investment choices.”
Money owed to a credit card company due to the use of credit cards for purchases.
Credit card debt:
Example sentence: “Managing and paying off credit card debt is a common financial challenge for many individuals.”
Spending money extravagantly or in a way that exceeds normal limits.
Splurging
Example sentence: “Occasionally, people indulge in a bit of splurging, treating themselves to something special.”
A sum of money saved for the future, typically for emergencies or retirement
Nest egg:
Example sentence: “Building a nest egg requires consistent saving and wise investment decisions.”
Cultural approaches related to passing down wealth, assets, or financial knowledge through generations.
Inheritance Traditions:
Example sentence: “Inheritance traditions vary across cultures, influencing how families pass on financial legacies and responsibilities.”
To make the best use of a situation or resource to achieve the maximum possible result.
Maximize
Example sentence: “Investors aim to maximize their returns by diversifying their portfolios.”
To redistribute or realign resources, funds, or investments to different areas or purposes.
Reallocate
Example sentence: “In response to changing market conditions, the company decided to reallocate its budget to focus on innovation.”
To put money back into an investment or business rather than withdrawing it.
Reinvest:
Example sentence: “Successful entrepreneurs often choose to reinvest profits to fuel the growth of their ventures.”
To achieve better results or returns compared to others in a similar category.
Outperform:
Example sentence: “Certain stocks have consistently outperformed the market, attracting the attention of savvy investors.”
To reduce the amount or extent of something, especially expenses.
Cut back on:
Example sentence: “During tough economic times, individuals often need to cut back on non-essential spending.”
To convert an investment into cash.
Cash out on:
Example sentence: “Investors may choose to cash out on profitable positions during a market upswing.”
To set aside money gradually over time for a specific purpose or purchase.
Save up for:
Example sentence: “They are saving up for a down payment on a house.”
To spend a large amount of money on something special or luxurious.
Splash out on:
Example sentence: “After receiving a bonus, she decided to splash out on a dream vacation.”
To handle or oversee the financial aspects of one’s life or a business.
Manage finances:
Example sentence: “It’s crucial to learn how to effectively manage finances to achieve long-term financial goals.”
To regularly observe and assess the performance of financial assets.
Monitor investments:
Example sentence: “Investors should consistently monitor investments to stay informed about market trends.”
To successfully traverse or manage difficulties or uncertainties in the economic environment.
Navigate economic challenges:
Example sentence: “Business leaders must navigate economic challenges with resilience and adaptability.”
To reduce or minimize the impact of potential risks or uncertainties.
Mitigate risks:
Example sentence: “Diversification is a strategy to mitigate risks and protect investments from market fluctuations.”
To spend or pay a significant amount of money, especially reluctantly.
Shell out money:
Example sentence: “Consumers often have to shell out money for unexpected expenses.”
To allocate or reserve money for a specific purpose, often for future use.
Set aside funds:
Example sentence: “It’s wise to set aside funds for emergencies in a separate savings account.”
To take advantage of favorable circumstances for financial gain.
Cash in on opportunities:
Example sentence: “Entrepreneurs who are quick to cash in on opportunities can gain a competitive advantage.”
To officially acknowledge that a debt is unlikely to be recovered and remove it from the accounting records.
Write off debt:
Example sentence: “Individuals facing financial challenges may negotiate with creditors to write off part of their debt.”
Acting with careful consideration and good judgment, especially in financial matters.
Prudent:
Example sentence: “Prudent individuals prioritize savings and make thoughtful investment decisions.”
Lacking restraint in spending money, often on luxurious or unnecessary items.
Extravagant:
Example sentence: “Some people enjoy living an extravagant lifestyle, indulging in high-end purchases.”
Possessing knowledge and awareness of financial matters, including investments and budgeting.
Financially savvy:
Example sentence: “Financially savvy individuals tend to make informed decisions that lead to long-term financial success.”
Characterized by a strict and simple lifestyle, often with a focus on minimalism and frugality.
Austere
Example sentence: “During challenging economic times, some individuals adopt an austere approach to their finances.”
A social and economic order that encourages the acquisition of goods and services in ever-increasing amounts.
Consumerism
Example sentence: “Consumerism can lead to a culture of constant spending and materialism.”
A person or entity that owes money to another party.
Debtor
Example sentence: “Managing debt responsibly is crucial for debtors to maintain financial health.”
A way of thinking that emphasizes strategic and informed decision-making in financial investments.
Investor mindset:
Example sentence: “Developing an investor mindset involves a long-term perspective and a focus on portfolio growth.”
The activity of setting up and managing businesses, typically with an emphasis on taking financial risks for potential rewards
Entrepreneurship:
Example sentence: “Entrepreneurship requires a combination of innovation, resilience, and financial acumen.”
