In the business world, having a strong vocabulary is crucial for effective communication and success. Here are some essential business terms along with their definitions and examples to help you navigate professional conversations and documents.

1. Commission

Definition: A payment given to an employee or agent based on the number of sales or a specific performance metric.

• Example 1: The sales team receives a 5% commission on each product they sell.
• Example 2: She earned a large commission after closing the biggest deal of the month.

2. Competitor

Definition: A company or individual that offers similar products or services and vies for the same customer base.

• Example 1: Our main competitor just released a new line of smartwatches.
• Example 2: The company constantly analyzes its competitors to stay ahead in the market.

3. Dividend

Definition: A portion of a company’s profits distributed to shareholders.

• Example 1: Shareholders received a dividend after the company posted record profits.
• Example 2: The board of directors announced a 3% dividend for all shareholders.

4. Fundraising

Definition: The process of seeking financial contributions to support a business, project, or cause.

• Example 1: The startup secured $2 million in its latest fundraising round.
• Example 2: They organized a fundraising event to expand their business operations.

5. Payroll

Definition: The process of compensating employees for their work, including salary payments and deductions.

• Example 1: The HR department ensures that payroll is processed by the end of each month.
• Example 2: The company uses software to automate the payroll system, reducing errors.

6. Position

Definition: A job title or role that a person holds within an organization.

• Example 1: She applied for the position of marketing director at the company.
• Example 2: After several years, he was promoted to a senior position in the finance department.

7. Reimbursement

Definition: The act of compensating someone for an expense they have incurred.

• Example 1: The company provided reimbursement for the travel expenses he incurred during the business trip.
• Example 2: Employees are eligible for reimbursement of any work-related expenses.

8. Valuation

Definition: The process of determining the current worth of an asset or company.

• Example 1: The valuation of the startup has increased significantly since its launch.
• Example 2: They are conducting a valuation of the business before seeking investors.