# Business Management Expert

https://hienglishquiz.com/vocabulary/professional-specialized-c2-business-and-management-vocab

- CEFR: C2 (Proficient)
- Theme: Professional & Specialized
- Words: 22
- Premium: no
- Locked: no

Expert-level business vocabulary for corporate governance and decision-making, including fiduciary duty, insolvency, a hostile takeover and the groupthink…

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## Word list

* **fiduciary** /fəˈduʃiˌɛri/: Relating to a legal duty to manage someone else's money honestly and in their best interest. — “The manager broke his **fiduciary** duty by misusing client funds.”
* **receivership** /rɪˈsivərˌʃɪp/: A legal process in which an independent manager takes control of a struggling company's assets. — “The retailer was placed into **receivership** after months of losses.”
* **conglomerate** /kənˈɡlɑmərət/: A large company made up of several smaller, often unrelated, businesses. — “The **conglomerate** owns businesses in food, media and finance.”
* **insolvency** /ˌɪnˈsɑlvənsi/: The state of being unable to pay debts as they fall due. — “Rising costs pushed the firm towards **insolvency**.”
* **liquidation** /ˌlɪkwɪˈdeɪʃən/: The process of closing a company and selling its assets to pay off its debts. — “The factory went into **liquidation** after losing its main client.”
* **divestiture** /dɪˈvɛstɪtʃər/: The sale of part of a business, such as a subsidiary or division. — “The **divestiture** of its retail arm raised needed cash.”
* **diversification** /daɪˌvɜrsəfəˈkeɪʃən/: The strategy of expanding into new markets or products to spread business risk. — “The firm's **diversification** into software paid off.”
* **hostile takeover**: Buying a company by going directly to shareholders, against the wishes of its leaders. — “The firm fought off a **hostile takeover** by a rival group.”
* **leveraged buyout**: Buying a company mostly with borrowed money, using the company's own assets as security. — “Investors financed the **leveraged buyout** with a large bank loan.”
* **golden parachute**: A large payment guaranteed to a top executive if they lose their job after a takeover. — “The outgoing CEO left with a **golden parachute** worth millions.”
* **agency cost**: The loss caused when managers act in their own interest, not the owners'. — “The whole bonus scheme was an attempt to reduce **agency cost**.”
* **principal-agent problem**: The difficulty of making someone act on your behalf faithfully. — “Every outsourcing contract is a **principal-agent problem** in disguise.”
* **moral hazard**: Taking bigger risks because someone else carries the loss. — “Guaranteeing the debt created a textbook **moral hazard**.”
* **path dependency**: The way early decisions constrain everything that follows. — “**Path dependency** explains most of what looks like stupidity in that structure.”
* **institutional memory**: The accumulated knowledge held by an organisation's people. — “Three retirements wiped out the **institutional memory** of a decade.”
* **tacit knowledge**: Knowledge people have but cannot easily write down. — “**Tacit knowledge** is what walks out of the door on a Friday.”
* **organisational slack**: Spare capacity that lets an organisation absorb shocks. — “Cutting all the **organisational slack** made the next crisis fatal.”
* **satisficing**: Choosing the first option that is good enough rather than the best. — “The committee was **satisficing** and calling it strategy.”
* **groupthink**: A group agreeing too readily and suppressing doubts. — “The minutes are a case study in **groupthink** and nobody dissented.”
* **sunk cost fallacy**: Continuing with something only because of what has already been spent. — “Four more years of the **sunk cost fallacy** followed that decision.”
* **survivorship bias**: Drawing conclusions only from the cases that survived. — “The whole strategy rested on **survivorship bias** and a good anecdote.”
* **bureaucratic capture**: The taking over of a regulator by the industry it regulates. — “**Bureaucratic capture** is slow and nobody ever signs anything.”

## Related

- Vocabulary library: https://hienglishquiz.com/vocabulary
- Section guide: https://hienglishquiz.com/vocabulary/llms.txt