Business Terms Practice Test (A2-C1) — Vocabulary Exercises with Answers

⏱ Time: 10:00 📝 Questions: 20 📊 Level: A2, B1, B2, C1 📚 Type: Vocabulary ⭐ XP: up to +25 (on pass)
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Preparing for an English exam? Practise Business Terms with 20 exercises at Level A2-C1. The questions test meaning, collocation, and word choice — the core vocabulary skills examined in IELTS, TOEFL, and Cambridge tests.

⏱ You have 10:00 to answer 20 questions. The timer only starts when you click Begin.

Q1  20
Q1 20

Question 1: The company wants to ___ more workers next month.

Question 1 options
'Hire' means to employ or recruit someone for a job. 'Fire' means to dismiss someone, 'sell' means to exchange goods for money, and 'buy' means to purchase goods — none of these fit the context of bringing on new workers.
Q2 20

Question 2: What does the word 'profit' mean?

Question 2 options
'Profit' is the money a business earns after paying all its costs. It does not mean money owed (debt), money spent on operations (expense), or a worker's pay (salary).
Q3 20

Question 3: I work for a small ___. We have ten employees.

Question 3 options
'Company' means a business organization. 'Invoice' is a bill for goods or services, 'salary' is the money paid to a worker, and 'receipt' is proof of payment — none describe an organization.
Q4 20

Question 4: A 'deadline' is the last date or time by which something must be completed.

Question 4 options
True. A deadline refers to the final time limit for finishing a task or delivering work. This is a standard business term used across all industries.
Q5 20

Question 5: Which word is closest in meaning to 'revenue'?

Question 5 options
'Income' is closest in meaning to 'revenue,' as both refer to money received by a business. 'Debt' is money owed, 'loss' is the opposite of profit, and 'tax' is money paid to the government.
Q6 20

Question 6: Our sales team needs to meet the quarterly ___.

Question 6 options
'Target' refers to a goal or objective that a team is expected to achieve. 'Contract' is a legal agreement, 'warehouse' is a storage facility, and 'branch' is a local office — none describe a performance goal.
Q7 20

Question 7: Match each business term to its definition.

Question 7 options
invoice
stakeholder
turnover
merger
A person with an interest or concern in a business
The total amount of money a company receives from sales
A bill sent to request payment for goods or services
The combination of two companies into a single entity

Select an item on the left, then tap its match on the right.

An 'invoice' is a bill sent for payment. A 'stakeholder' is someone with an interest in a company. 'Turnover' is total sales revenue. A 'merger' is the joining of two companies into one.
Q8 20

Question 8: The manager presented the annual ___ to the board of directors.

Question 8 options
'Budget' refers to a financial plan outlining expected income and expenditure. 'Brochure' is a promotional leaflet, 'receipt' is proof of a transaction, and 'warehouse' is a storage building.
Q9 20

Question 9: We need to ___ a new marketing strategy before the product launch.

Question 9 options
'Develop' means to create or devise something new and is the correct collocation with 'strategy.' 'Withdraw' means to remove, 'resign' means to quit a job, and 'audit' means to examine financial records.
Q10 20

Question 10: What does the term 'outsource' mean in business?

Question 10 options
'Outsource' means to hire an external company or contractor to handle tasks or services instead of doing them in-house. It does not mean promoting employees, closing a branch, or increasing production internally.
Q11 20

Question 11: The two firms signed a long-term ___ to supply raw materials.

Question 11 options
'Contract' is a formal, legally binding agreement between parties. 'Dividend' is a payment to shareholders, 'subsidy' is government financial support, and 'equity' refers to ownership value in a company.
Q12 20

Question 12: Which word is closest in meaning to 'acquisition'?

Question 12 options
'Purchase' is closest to 'acquisition,' as both refer to the act of obtaining or buying something, often a company. 'Bankruptcy' is financial failure, 'layoff' is job termination, and 'appraisal' is evaluation.
Q13 20

Question 13: After years of losses, the company finally declared ___.

Question 13 options
'Bankruptcy' is the legal status of a business that cannot repay its debts. 'Dividend' is a profit distribution to shareholders, 'franchise' is a licensed business model, and 'liability' is a legal obligation but not the act of declaring insolvency.
Q14 20

Question 14: In business, 'overheads' refers to the profit a company makes above its initial investment.

Question 14 options
False. 'Overheads' (also called overhead costs) are the ongoing expenses of running a business that are not directly tied to producing a product, such as rent, utilities, and administrative salaries. They are costs, not profits.
Q15 20

Question 15: In negotiation, reaching a result that benefits both sides is called a win-___ outcome.

Question 15 options
The fixed expression is 'win-win,' meaning both parties gain something positive from the agreement. This is a standard business collocation.
Q16 20

Question 16: The board approved a generous ___ for shareholders this quarter.

Question 16 options
'Dividend' is a sum of money paid regularly by a company to its shareholders from profits. 'Deficit' is a shortfall, 'tariff' is a tax on imports, and 'leverage' refers to borrowed capital or influence.
Q17 20

Question 17: The company's ___ grew rapidly after entering several foreign markets.

Question 17 options
'Portfolio' refers to the range of products, investments, or business activities a company holds. 'Liquidation' is the process of closing a business, 'embargo' is a trade restriction, and 'redundancy' means job elimination.
Q18 20

Question 18: Investors were concerned about the company's rising ___, which now exceeds its total assets.

Question 18 options
'Liabilities' are financial obligations or debts owed by a company. When liabilities exceed assets, the company may be insolvent. 'Commodities' are raw materials, 'subsidiaries' are companies owned by a parent company, and 'dividends' are shareholder payouts.
Q19 20

Question 19: 'Due diligence' refers to the thorough investigation conducted before a business deal, and 'turnover' refers to the total revenue a company generates over a specific period.

Question 19 options
Both facts are correct. 'Due diligence' is the careful research and analysis done before entering a business agreement, and 'turnover' means the total amount of money a business earns in a given period. Since both vocabulary facts are accurate, the statement is true.
Q20 20

Question 20: The CEO stressed the need to ___ costs without compromising product quality.

Question 20 options
'Streamline' means to make a process more efficient, often by reducing waste or unnecessary steps. 'Liquidate' means to sell off assets, 'underwrite' means to assume financial risk, and 'depreciate' means to decrease in value over time.