GMAT Vocabulary

#321

margin

Noun

Example sentences

1. The business has a narrow profit margin.
2. Write your notes in the margin of the page.
3. The team won by a small margin.

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#322

expense

Noun

Example sentences

1. Travel is a major business expense.
2. The company paid the repair expense.
3. We must reduce unnecessary expenses.

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#323

cost

Noun

Example sentences

1. The cost of food has increased.
2. The company wants to lower production costs.
3. Good planning can save time and reduce cost.

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#324

asset

Noun

Example sentences

1. The building is the company's largest asset.
2. Her experience is a valuable asset to the team.
3. The bank sold one asset to raise cash.

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#325

liability

Noun

Example sentences

1. The loan appears as a liability on the balance sheet.
2. Poor service can become a liability for a brand.
3. The company must report every financial liability.

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#326

equity

Noun

Example sentences

1. The owners invested more equity in the business.
2. The policy aims to improve equity in education.
3. She built equity in her home over time.

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#327

capital

Noun

Example sentences

1. The company needs more capital to expand.
2. They invested their capital in new equipment.
3. Education can build human capital.

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#328

investment

Noun

Example sentences

1. The new factory is a major investment.
2. Education is an investment in the future.
3. The investment produced a good return.

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#329

dividend

Noun

Example sentences

1. The company paid a dividend to shareholders.
2. Investors expect a higher dividend this year.
3. The board decided not to issue a dividend.

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#330

yield

Noun

Example sentences

1. The farm had a high crop yield.
2. This bond offers a five percent yield.
3. Better seeds may yield more food.

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#331

return

Noun

Example sentences

1. The investment gave a strong return.
2. She expects a return on the money she spent.
3. The shop allows customers to return damaged items.

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#332

liquidity

Noun

Example sentences

1. The company needs enough liquidity to pay its bills.
2. Cash provides greater liquidity than property.
3. The bank carefully monitors its liquidity.

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#333

solvency

Noun

Example sentences

1. The report raised concerns about the company's solvency.
2. Strong profits improved the firm's solvency.
3. The bank checks solvency before giving a large loan.

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#334

default

Noun

Example sentences

1. The borrower went into default after missing several payments.
2. The computer uses English as the default language.
3. The company may default on its debt.

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#335

debt

Noun

Example sentences

1. The family is trying to reduce its debt.
2. The company borrowed money and increased its debt.
3. High debt can limit future investment.

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#336

credit

Noun

Example sentences

1. The bank gave her credit to buy equipment.
2. He received credit for his hard work.
3. Good credit makes borrowing easier.

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#337

collateral

Noun

Example sentences

1. The bank accepted the house as collateral for the loan.
2. Small firms may lack collateral.
3. If the loan is not paid, the lender may take the collateral.

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#338

valuation

Noun

Example sentences

1. The company received a high market valuation.
2. An expert completed the valuation of the property.
3. The new sales figures changed the firm's valuation.

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#339

depreciation

Noun

Example sentences

1. The car loses value through depreciation.
2. The company records depreciation on its equipment.
3. Rapid depreciation reduced the asset's book value.

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#340

appreciation

Noun

Example sentences

1. The house increased in value through appreciation.
2. She showed appreciation for the team's effort.
3. Currency appreciation can make exports more expensive.

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