Business Terminology Quiz

Key Business Concepts

• Market Share

  • Represents the percentage of total sales in a market controlled by a specific company or product.
  • Example: A new advertising campaign increased a company's market share from 15% to 20%.

• Profit Margin

  • A profitability metric that indicates the percentage of revenue surpassing the cost of goods sold (COGS).
  • Reflects profit earned for every dollar of revenue generated.
  • Example: Improved profit margin achieved through reduction of production costs and increased sales prices.

• Stakeholder

  • Individuals or groups with an interest in or impacted by a company's operations and decisions.
  • Example: Includes employees, investors, and local community members affected by a new facility project.

• Streamline

  • The process of enhancing efficiency by simplifying or eliminating unnecessary steps.
  • Example: Management's decision to streamline operations to cut costs and boost productivity.

• Plenary

  • A meeting or session attended by all participants, commonly used in conference contexts.
  • Example: Conferences typically conclude with a plenary session enabling all attendees to discuss future initiatives.

• Merger

  • The combination of two companies into a single entity, often aimed at increasing market efficiency or power.
  • Example: A merger between two tech firms formed a more competitive participant in the software market.

• Overhead

  • Refers to ongoing business expenses not directly linked to the production of goods or services (e.g., rent, utilities, salaries).
  • Example: The necessity for a company to reduce overhead costs to enhance overall profitability.

• Dividend

  • A portion of a company's earnings distributed to shareholders, typically as cash or additional shares.
  • Example: Shareholders received a dividend following a year of record profits for the company.