This lesson teaches key vocabulary used to describe companies: their size, legal status, financial performance, structure, and culture. You'll learn words and collocations frequently used in business reports, presentations, and the TOEIC exam.
Size and reach: startup, SME, multinational
Structure and ownership: subsidiary, headquarters, publicly traded
Focus on collocations (e.g., 'headquarters in', 'publicly traded company') and common sentence patterns.
Table
Company Descriptors (word → meaning → example)
Word
Meaning
Example
startup
A newly established company, often technology-focused
The startup raised seed funding to develop its app.
multinational
A company that operates in multiple countries
The multinational has offices in 12 countries.
headquarters (HQ)
The main office where top management is based
Our headquarters are located in Barcelona.
subsidiary
A company controlled by another (parent) company
The German subsidiary manages sales in Europe.
publicly traded
A company whose shares are listed on a stock exchange
They became a publicly traded company last year.
turnover / revenue
Total income from sales during a period
Annual revenue increased by 8%.
profit margin
Percentage of revenue that becomes profit
The company improved its profit margin after cost cuts.
merger / acquisition
When companies combine or one buys another
The merger created a larger market leader.
Tip
Key collocations and sentence patterns
Use fixed combinations and patterns to sound natural when describing companies.
'X is a [type] company' — e.g., 'XYZ is a multinational company.'
'headquartered in [city/country]' — e.g., 'headquartered in London.'
'has a subsidiary in [location]' — common for group structures
'reported revenue of [amount]' — used in financial summaries
When in doubt, pair the descriptor with verbs like 'is', 'has', 'reported', or 'became' to create clear statements.
Example
Examples in context
The multinational expanded into South America last quarter.
Our headquarters will move to a larger office downtown.
The startup secured a partnership with a global bank.
After the merger, the combined company increased its market share.
Tip
Common mistakes to avoid
Watch out for general errors when using company vocabulary.
Mixing 'revenue' and 'profit' — revenue is income; profit is income minus costs.
Using 'company' and 'corporation' interchangeably without context — they can overlap but differ in formality/legal sense.
Incorrect word order — e.g., say 'publicly traded company', not 'company publicly traded'.
Missing articles or incorrect articles — e.g., 'the headquarters is' vs 'our headquarters are' (headquarters can be singular or plural depending on structure).
If unsure, check the collocation (word combinations) and remember differences between financial terms.
Quiz
Which word best describes a company that operates in many countries?
Hint: Think about global presence and operations across borders.
Correct!
A multinational is a company that has operations or offices in multiple countries.
Incorrect
The correct answer was: Multinational
A multinational is a company that has operations or offices in multiple countries.
Quiz
Complete: The company increased its _____ by 15% last year.
Hint: Think of the total income from sales before costs are subtracted.
Correct!
'Revenue' refers to the total income a company receives from its normal business activities before expenses are deducted.
Incorrect
The correct answer was: revenue
'Revenue' refers to the total income a company receives from its normal business activities before expenses are deducted.
Quiz
Which sentence correctly uses the word 'subsidiary'?
Hint: Look for natural subject-verb use where 'subsidiary' refers to a company entity.
Correct!
A subsidiary is a company controlled by a parent company; it can report sales in a specific region.
Incorrect
The correct answer was: The subsidiary reported record sales in its region.
A subsidiary is a company controlled by a parent company; it can report sales in a specific region.
Key Points
Vocabulary
multinational
adjective / nounCEFR B2//ˌmʌltiˈnæʃənəl//
A company that operates in several countries; operating across national borders.
The multinational opened a new office in Singapore.
Vocabulary
subsidiary
nounCEFR B2//səbˈsɪdiəri//
A company controlled by a parent company; a branch company under another firm's ownership.
The US subsidiary handles customer support for North America.
Vocabulary
headquarters
nounCEFR B1//ˈhɛdˌkwɔːrtərz//
The main office or center of operations for a company.
Our headquarters are in Paris, but we have branches worldwide.
Vocabulary
revenue
nounCEFR B2//ˈrɛvəˌnuː//
The total income generated by a company from sales or services before costs are deducted.