100+ business acronyms to know

Acronyms are everywhere. Understanding acronyms is essential for effective communication and decision-making within any organization. But it’s not just about knowing the terms. It’s about grasping the fundamental business concepts they represent. That's why training employees on the foundations of business, including these essential acronyms, is critical for success.

Why training on business foundations matters

Before diving into the list of essential acronyms, let's consider why training employees on business foundations is crucial. Business acronyms are just one example of foundational knowledge employees need, and these acronyms often represent complex ideas central to an organization’s operations.

Employees who understand the acronyms that matter for their business are better equipped to contribute to discussions, make informed decisions and align their work with the company's goals. Moreover, this knowledge helps bridge gaps between departments, enabling more cohesive teamwork and collaboration. By investing in foundational business training, companies ensure their teams are familiar with the information they need to contribute positively.

Every business has its lexicon

Every business develops its unique lexicon — a specialized vocabulary that reflects its culture, industry and operations. This internal language includes industry-standard acronyms and company-specific terms and phrases that are crucial for day-to-day communication.

Ensuring employees are fluent in the vocabulary of their employer is vital for maintaining organizational efficiency and clarity. When employees understand the key terms and acronyms that matter most to your company, they can communicate more effectively, reduce misunderstandings and contribute meaningfully to its objectives. Consistent use of a shared lexicon also fosters a sense of unity and belonging among team members, reinforcing the company’s culture and values. This is why onboarding and continuous training should emphasize general business knowledge and the specific language that drives your company’s success.

Essential business acronyms

This list provides a comprehensive overview of business acronyms professionals may need to know for effective organizational communication and decision-making.

A-C

AAPI: Asian American and Pacific Islander

AAPI refers to the diverse group of people in the United States who have origins in the Far East, Southeast Asia, the Indian subcontinent or the Pacific Islands.

ADA: Americans with Disabilities Act

ADA is a U.S. federal law that prohibits discrimination against individuals with disabilities in all areas of public life, including jobs. Companies must ensure compliance with ADA requirements in hiring and workplace accommodations.

ADDIE: Analyze, design, develop, implement, evaluate

ADDIE is a widely used instructional design framework that guides the development of educational and training programs. It involves five phases: analyzing needs, designing the curriculum, developing the materials, implementing the training and evaluating its effectiveness.

AI: Accessibility and inclusion

AI, when it means “accessibility and inclusion” refers to ensuring that all individuals, including those with disabilities, have equal access to opportunities, resources and spaces — both physical and digital.

AI: Artificial intelligence

AI can also mean “artificial intelligence.” AI simulates human intelligence processes by machines, especially computer systems. It’s used in applications ranging from automation to data analysis.

AP: Accounts payable

AP refers to the money a company owes to its suppliers or vendors for goods or services received. Managing AP is crucial for maintaining good supplier relationships and financial health.

API: Application programming interface

API is a set of rules that allow different software applications to communicate with each other. APIs enable the integration of various systems and the development of new functionalities.

AR: Accounts receivable

AR refers to the money customers owe a company for products or services delivered. Effective AR management is key to maintaining cash flow.

AR: Annual revenue

AR also refers to “annual revenue,” or the total income a company generates from its operations in a fiscal year. Annual revenue is a key indicator of a company’s financial performance and is often used to assess growth and profitability.

ARPU: Average revenue per user

ARPU measures the average revenue generated per user or subscriber. It’s commonly used in the telecommunications, media and technology sectors.

ATS: Applicant tracking system

ATS is a software application that automates hiring by managing job postings, resumes and candidate information. It’s essential for streamlining recruitment.

B2B: Business to business

B2B is a business model in which companies sell products or services to other businesses. This type of business transaction typically involves larger orders, longer sales cycles, and more complex purchasing processes than consumer sales.

B2C: Business to consumer

B2C is a business model where companies sell products or services directly to individual consumers. B2C transactions often involve smaller purchases, shorter sales cycles and direct marketing strategies for the end-user.

B2G: Business to government

B2G describes transactions between businesses and government entities. In this model, businesses provide goods or services to government agencies.

BCP: Business continuity plan

BCP is a strategy that outlines procedures for maintaining business operations during and after a disaster or disruption. It’s essential for risk management and resilience.

BHM: Black History Month

BHM is an annual observance in February that honors the contributions and history of African Americans. It’s recognized in the United States, Canada and other countries, and is a time for reflection on the impact of Black leaders and culture.

BIPOC: Black, Indigenous and People of Color

BIPOC is an acronym used to emphasize the unique experiences and challenges faced by Black people, Indigenous people and other people of color, often in the context of systemic racism and social justice.

BS: Balance sheet

BS is a financial statement that provides a snapshot of a company’s assets, liabilities and shareholders' equity at a specific time. It’s a vital tool for assessing financial health.

BYOD: Bring your own device

BYOD refers to a policy that allows employees to use their personal devices, such as smartphones and laptops, for work purposes. It offers flexibility but also raises security concerns.

C&B: Compensation and benefits

C&B refers to the total package of financial and non-financial rewards given to employees, including salary, bonuses, health insurance, retirement plans and other perks.

CAC: Customer acquisition cost

CAC is the cost of acquiring a new customer, including marketing and sales expenses. It’s a key metric for understanding the profitability of customer acquisition strategies.

CAN-SPAM: Controlling the Assault of Non-Solicited Pornography and Marketing Act

CAN-SPAM is a U.S. federal law that sets commercial email rules, establishes commercial message requirements, gives recipients the right to have emails stopped from being sent to them and spells out tough penalties for violations.

CCPA: California Consumer Privacy Act

CCPA is a California state law that grants residents certain rights regarding their data, including the right to know what data is collected, the right to request deletion of their data and the right to opt out of the sale of their data. Businesses that handle the personal information of California residents must comply with CCPA requirements.

CDI: Cultural diversity and inclusion

CDI focuses specifically on including and appreciating cultural differences within an organization, ensuring that diverse cultural perspectives are recognized and valued.

CLV: Customer lifetime value

CLV is a metric that estimates the total revenue a business can expect from a customer throughout their relationship. It’s critical for understanding customer profitability.

CMS: Content management system

CMS is a software application that enables users to create, manage and modify digital content without specialized technical knowledge.

‍COB: Close of business

COB refers to the end of the business day, typically around 5 or 6 PM local time, depending on the company’s operating hours. It’s often used to set deadlines for tasks that must be completed before the office closes.

‍COBRA: Consolidated Omnibus Budget Reconciliation Act

COBRA is a U.S. federal law that allows employees and their families to continue their group health insurance coverage after employment ends under certain conditions.

‍COGS: Cost of goods sold

COGS represents the direct costs attributable to a company's production of goods sold. It includes the cost of materials and labor and is deducted from revenue to determine gross profit.

‍CPA: Cost per acquisition

CPA is a marketing metric measuring the cost of acquiring a customer. It’s used to determine the effectiveness of advertising campaigns.

‍CPC: Cost per click

CPC is a metric used in digital advertising to measure the cost an advertiser pays each time a user clicks on their ad. It’s a key component of online advertising strategies.

CPD: Continuing professional development

CPD refers to the ongoing process of learning and development that professionals engage in to maintain and enhance their skills and knowledge throughout their careers. CPD often includes training, workshops, seminars and self-study.

‍CPU: Cost per unit

CPU refers to the cost of producing or acquiring a single product unit. It’s a critical metric in pricing and profitability analysis.

‍CR: Conversion rate

CR is the percentage of users who take a desired action, such as making a purchase or signing up for a service, out of the total number of visitors.

‍CRM: Customer relationship management

CRM systems are tools for managing a company’s interactions with current and potential customers. They help businesses improve customer service, increase sales and enhance customer retention.

‍CSR: Corporate social responsibility

CSR refers to a company's commitment to responsibly manage its operations' social, environmental and economic effects in line with public expectations. CSR initiatives can include sustainability efforts, philanthropy, ethical labor practices and community engagement. CSR initiatives build a positive brand reputation and contribute to societal wellbeing. See also ESG.

‍CTA: Call to action

CTA is a prompt that encourages the audience to take a specific action, such as signing up for a newsletter, downloading a resource or purchasing.

‍CTR: Click-through rate

CTR is a metric that measures the percentage of people who click on a link or ad after seeing it. It’s used to gauge the effectiveness of digital marketing campaigns.

D-F

DEI: Diversity, equity and inclusion

DEI refers to organizational efforts to create a workplace that values diversity and fosters equity and inclusion. These initiatives are crucial for building a positive and productive work environment. DEIB expands on DEI by including "belonging," which focuses on creating an environment where all employees feel accepted and valued.

‍DM: Direct message

A direct message (DM) is a private message sent directly to users on social media platforms or messaging apps. It is used for personal, confidential communication.

‍DOL: Department of Labor

The DOL is a federal agency responsible for enforcing labor laws and promoting worker welfare. It oversees various aspects of employment, including wages, workplace safety, unemployment benefits and retirement benefits.

‍DOJ: Department of Justice

DOJ is the U.S. federal executive department responsible for enforcing the law and defending the interests of the United States according to the law. The DOJ oversees federal law enforcement agencies, prosecutes federal crimes and represents the U.S. in legal matters.

‍DTC: Direct to consumer

DTC is a business model where a company sells its products directly to consumers, bypassing traditional retail channels. This model allows companies to control the entire customer experience and collect valuable consumer data.

‍EAP: Employee assistance program

EAP is a work-based intervention program designed to assist employees in resolving personal problems affecting their job performance or wellbeing.

‍EBITDA: Earnings before interest, taxes, depreciation and amortization

EBITDA is a financial metric used to assess a company’s operating performance. It’s a key indicator of profitability and is often used in valuation analyses.

‍EDI: Equity, diversity and inclusion

EDI is similar to DEI but prioritizes equity, emphasizing the importance of fairness and equal opportunities in creating an inclusive environment.

‍EEOC: Equal Employment Opportunity Commission

EEOC is a U.S. federal agency responsible for enforcing laws prohibiting workplace discrimination based on race, color, religion, sex, national origin, age, disability or genetic information. EEO (Equal Employment Opportunity) refers to the principle that all individuals should have equal treatment in employment-related decisions.

‍EFT: Electronic funds transfer

EFT is the electronic transfer of money from one bank account to another. It’s commonly used for transactions like direct deposits and online payments.

‍EMEA: Europe, Middle East and Africa

EMEA is a region designation businesses use to refer to the collective markets of Europe, the Middle East and Africa.

‍EOD: End of day

EOD is a term used in business communications to indicate the close of business operations for the day. It’s often used to set deadlines or expectations for task completion.

‍EOM: End of month

EOM refers to the conclusion of a calendar month. It’s often used in financial and reporting contexts to indicate deadlines or the timing of specific processes, such as invoice submissions or financial reviews.

‍EOW: End of week

EOW signifies the end of the work week, typically Friday. It sets deadlines or expectations for tasks to be completed before the weekend.

‍EPA: Environmental Protection Agency

The EPA is a federal agency that protects human health and the environment. It develops and enforces regulations to ensure clean air, water and land and oversees environmental compliance and enforcement.

‍EPS: Earnings per share

EPS is a financial metric representing a company’s profit divided by the outstanding shares of its common stock. It’s a vital indicator of a company’s profitability and is often used by investors.

‍ERG: Employee resource group

An ERG is a group within an organization created by employees who share a common interest, background or demographic. ERGs often focus on promoting diversity and inclusion in the workplace.

‍ERP: Enterprise resource planning

ERP is a type of software used by organizations to manage business processes, including finance, HR, manufacturing and supply chain operations.

‍ESG: Environmental, social and governance

ESG refers to the three key factors used to measure the sustainability and ethical impact of an investment in a company. ESG criteria are increasingly crucial for investors.

‍ETA: Estimated time of arrival

ETA refers to the expected time when something or someone will arrive. It’s used in logistics, project management and general business communications to indicate anticipated completion times.

‍ETO: Earned time off

ETO refers to the leave time employees accumulate based on their work hours. It's a type of paid time off (PTO) where employees earn time off in proportion to the time they have worked. ETO policies often allow employees to take time off as needed, whether for vacation, personal days or illness.

‍FARE: Fairness, accountability, respect and equity

FARE is an acronym used in some organizations to highlight core principles of creating a fair and inclusive workplace, ensuring that all employees are treated with respect and dignity.

‍FCC: Federal Communications Commission

The FCC is a U.S. federal agency that regulates interstate and international communications by radio, television, wire, satellite and cable. It sets and enforces rules to ensure that the communications infrastructure operates efficiently and serves the public interest.

‍FDA: Food and Drug Administration

FDA is a U.S. federal agency under the Department of Health and Human Services responsible for protecting public health by ensuring the safety, efficacy and security of drugs, biological products, medical devices, food and cosmetics.

FDIC: Federal Deposit Insurance Corporation

FDIC is a U.S. federal agency that insures deposits in banks and savings institutions. The FDIC guarantees the safety of deposits up to a certain amount per depositor per bank, helping to maintain public confidence in the financial system.

FICA: Federal Insurance Contributions Act

FICA is a U.S. federal law that requires employers and employees to contribute to Social Security and Medicare programs through payroll taxes. The funds collected under FICA help provide benefits to retirees, the disabled and survivors. FICA also funds Medicare.

‍FIT: Federal income tax

FIT refers to the tax levied by the federal government on an individual’s or business’s income. The amount of FIT withheld from an employee’s paycheck is based on factors such as income level, filing status and allowances.

‍FITW: Federal income tax withholding

FITW is the portion of an employee’s income that the employer withholds to pay federal income taxes. This amount is based on the employee's income and tax bracket and is forwarded to the IRS on the employee's behalf.

‍FMLA: Family and Medical Leave Act

FMLA is a U.S. federal law that provides eligible employees with up to 12 weeks of unpaid leave per year for specific family and medical reasons, with job protection.

‍FP&A: Financial planning and analysis

FP&A refers to a corporate function responsible for budgeting, forecasting and analyzing a company’s financial performance. The FP&A team is critical in strategic decision-making and helping the company achieve its financial goals.

‍FSA: Flexible spending account

FSA is a tax-advantaged account that allows employees to set aside pre-tax dollars to pay for eligible healthcare or dependent care expenses. FSAs are offered through employers and can help reduce taxable income.

‍FT: Full-time

FT refers to an employment arrangement where employees work a standard number of hours per week, typically 35-40 hours or more.

‍FTC: Federal Trade Commission

FTC is a U.S. federal agency that promotes consumer protection and works to prevent anticompetitive business practices, such as monopolies and deceptive advertising. The FTC enforces various consumer protection laws and regulations, including privacy and data security.

‍FTE: Full-time equivalent

FTE is a unit that measures an employee’s workload in relation to a full-time work schedule. It’s used to quantify an organization's number of full-time employees.

FY: Fiscal year

FY refers to a one-year period that companies and governments use for accounting and financial reporting purposes. Depending on the organization, the fiscal year may or may not align with the calendar year.

G-J

GDI: Gender diversity and inclusion

GDI emphasizes the importance of gender diversity and the inclusion of all gender identities, promoting equal opportunities and representation for all genders in the workplace.

‍GDPR: General Data Protection Regulation

GDPR is a regulation in European Union law that governs data protection and privacy for individuals.

‍GSA: General Services Administration

GSA is a U.S. federal agency that provides procurement and logistical support to government agencies. It manages government buildings, supplies and transportation and oversees government-wide contracts.

H&W: Health and welfare

H&W refers to the benefits offered by employers to their employees, which may include health insurance, life insurance, disability coverage and other welfare benefits. These benefits are designed to promote the wellbeing of employees.

‍H1: First half

H1 refers to the first half of a fiscal or calendar year, typically covering the period from January 1 to June 30. It’s often used in financial reporting to break down performance into the first and second halves of the year.

‍H2: Second half

H2 refers to the second half of a fiscal or calendar year, typically covering the period from July 1 to December 31. Companies use this term to report and analyze performance metrics for the latter part of the year.

‍HCM: Human capital management

HCM refers to the set of practices related to recruiting, managing, developing and optimizing an organization's human resources. It includes everything from payroll to performance management.

‍HDHP: High-deductible health plan

HDHP is a type of health insurance plan with higher deductibles and lower premiums than traditional health plans. Individuals enrolled in an HDHP can use a health savings account (HSA) to save for medical expenses with pre-tax dollars. HDHPs are often chosen by individuals who want lower monthly premiums and are willing to pay more out-of-pocket for medical expenses before their insurance begins to cover costs.

‍HHM: Hispanic Heritage Month

HHM is an annual celebration from September 15 to October 15 that honors Hispanic and Latino Americans' culture, history and contributions. HHM is recognized in the United States and is a time to celebrate the Hispanic community's diverse heritage and influence.

‍HHS: Department of Health and Human Services

HHS is a U.S. federal agency responsible for protecting the health of all Americans and providing essential human services. HHS oversees Medicare, Medicaid and the FDA (Food and Drug Administration) programs.

‍HRIS: Human resources information system

HRIS is software that manages HR processes, including employee data management, payroll and recruitment. It’s a vital tool for streamlining HR functions.

HSA: Health savings account

An HSA is a tax-advantaged savings account available to individuals enrolled in a high-deductible health plan (HDHP). Funds contributed to an HSA can be used to pay for qualified medical expenses, and unused funds can roll over from year to year.

ICP: Ideal customer profile

ICP describes the type of customer that would benefit the most from a company’s product or service. It’s used in marketing and sales and beyond to target efforts toward the most promising prospects.

‍ILT: Instructor-led training

ILT refers to training that is delivered live by an instructor or facilitator, often in a classroom setting. With ILT, participants can interact directly with the trainer and other learners.

‍IMO: In my opinion

IMO is commonly used in informal communication to preface a personal view or perspective on a matter.

‍IPO: Initial public offering

An IPO is the process by which a private company offers its shares to the public for the first time. It marks the company’s transition from private to public ownership.

‍IRA: Individual retirement account

An IRA is a tax-advantaged account that individuals can use to save for retirement. There are different types of IRAs, including traditional and roth, each with its own tax implications and contribution limits.

‍IRS: Internal Revenue Service

The IRS is a federal agency under the Department of the Treasury that collects taxes and administers the Internal Revenue Code. It also oversees tax compliance, audits and enforcement.

‍JEDI: Justice, equity, diversity and inclusion

More comprehensive than DEI, JEDI includes the concept of justice. It emphasizes the importance of addressing systemic inequities and promoting fairness, in addition to diversity, equity and inclusion.

K-N

‍KISS: Keep It simple, stupid

KISS is a design principle that suggests simplicity should be a key goal in design and unnecessary complexity should be avoided. The term is often used to encourage straightforward solutions and clear communication.

‍KPI: Key performance indicator

KPIs refer to measurable values that demonstrate how effectively a company is achieving its business objectives. KPIs vary by organization and are often used to track progress toward strategic goals.

KYC: Know your customer

KYC refers to the process of a business verifying the identity of its clients. It is typically used in banking and finance to prevent fraud and ensure compliance with regulations.

‍L&D: Learning and development

L&D focuses on the continuous education and growth of employees within an organization. Effective L&D programs are essential for building a skilled and adaptable workforce.

LDOM: Last day of the month

In many roles with targets or commissions, the last day of the month is the last working day of the calendar month to hit their targets and earn commission for that month.‍

LGBTQIA+: Lesbian, Gay, Bisexual, Transgender, Queer/Questioning, Intersex, Asexual and others

LGBTQIA+ is an inclusive acronym that represents a diverse community of individuals with different sexual orientations and gender identities. The "+" includes other identities that are not explicitly mentioned.

‍LLC: Limited liability company

LLC is a business structure that offers its owners limited liability protection and pass-through taxation. It's a popular choice for startups due to its flexibility and simplicity.

‍LLM: Large language model

LLM refers to advanced machine learning models, like GPT, trained on vast datasets to perform various natural language processing tasks. LLMs are increasingly used in AI applications.

‍LMK: Let me know

LMK is an abbreviation used in communication to request a response or information from someone. It’s often used in emails and messages to prompt action or feedback.

LMS: Learning management system

LMS is a software application used to deliver, track and manage training and educational courses. An LMS allows organizations to create, distribute and monitor learning content, and is commonly used in corporate training and educational institutions.

LXP: Learning experience platform

LXP is a newer type of learning platform that focuses on creating personalized learning experiences by curating content from multiple sources and providing learners with a more engaging and social learning environment compared to traditional LMS platforms.

M&A: Mergers and acquisitions

M&A refers to the consolidation of companies or assets through various financial transactions. Mergers involve combining two companies into one, while acquisitions occur when one company buys another.

‍MBO: Management by objectives

MBO is a management strategy that involves setting specific, measurable goals with each employee and using these goals to evaluate performance.

‍MENA: Middle East and North Africa

MENA refers to individuals with cultural, ethnic or ancestral ties to the Middle East and North Africa. This group is often included in discussions of diversity and representation. MENA can also be used to describe the geographic region that includes the Middle East and North Africa.

‍ML: Machine learning

ML is a subset of artificial intelligence that focuses on building systems to learn from and make data-based decisions. It's widely used in analytics, automation and product development.

‍MOM: Month over month

MOM compares a particular metric from one month to the next. It is often used in financial and business reporting to track performance trends.

‍MTD: Month to date

MTD is a metric that represents the performance or data accumulated from the start of the current month up to the present day. It’s often used in financial reporting to track progress within the month.

‍MVP: Minimum viable product

MVP is a product development strategy used frequently by startups to create a basic version of a product with just enough features to satisfy early customers and provide feedback for future development.

NAHM: Native American Heritage Month

NAHM is observed every November in the United States to celebrate the culture, traditions, history and contributions of Native Americans. It’s a time to acknowledge the significant impact Native American communities have had on the nation’s history and culture.

NDA: Non-disclosure agreement

NDA is a legally binding contract that ensures confidentiality between parties. It’s commonly used to protect sensitive information during business transactions.

NLRA: National Labor Relations Act

NLRA is a U.S. federal law that protects the rights of employees to organize and engage in collective bargaining through unions. It also established the National Labor Relations Board (NLRB) to enforce labor laws and address unfair labor practices.

‍NLRB: National Labor Relations Board

The NLRB is an independent federal agency that enforces the National Labor Relations Act (NLRA). It oversees the conduct of labor union elections and investigates and remedies unfair labor practices by employers and unions.

‍NPS: Net promoter score

NPS measures customer loyalty and satisfaction by asking customers how likely they are to recommend a company to others. A high NPS indicates intense customer satisfaction.

‍NPV: Net present value

NPV is a financial metric used to assess the profitability of an investment. It calculates the present value of expected future cash flows minus the initial investment.

‍NRR: Net revenue retention

NRR is a metric that measures the percentage of recurring revenue retained from existing customers over a specific period, including upgrades, downgrades and cancellations. It’s a key indicator of customer loyalty and business growth.

‍NYSE: New York Stock Exchange

NYSE is one of the largest stock exchanges in the world, located in New York City. It’s a marketplace where stocks, bonds and other securities are bought and sold, and it’s a key indicator of the financial health of publicly traded companies.

O-P

OASDI: Old-Age, Survivors, and Disability Insurance

OASDI is a program under the U.S. Social Security system that provides benefits to retirees, disabled individuals and survivors of deceased workers. OASDI is funded through payroll taxes under the Federal Insurance Contributions Act (FICA).

‍OEM: Original equipment manufacturer

OEM refers to a company that produces parts or equipment that another manufacturer may market. OEMs are often involved in the automotive and technology industries.

‍OFCCP: Office of Federal Contract Compliance Programs

OFCCP is a U.S. Department of Labor agency responsible for ensuring employers doing business with the federal government comply with non-discrimination laws and regulations.

‍OJT: On-the-job training

OJT refers to training that takes place in the actual work environment, where employees learn by performing their job duties under the supervision or guidance of a more experienced colleague or mentor.

‍OKR: Objectives and key results

OKR is a goal-setting framework companies use to define measurable objectives and track their achievement. It’s a popular method for aligning goals across teams.

‍OOO: Out of office

OOO indicates that an employee is not at work, typically due to vacation, sickness or another reason. It’s commonly used in automated email responses to inform others of unavailability.

‍OS: Operating system

OS refers to the software that manages a computer’s hardware and provides services for computer programs. Common examples include Windows and Mac.

‍OSHA: Occupational Safety and Health Administration

OSHA is a U.S. federal agency that sets and enforces workplace safety and health standards. Businesses must ensure compliance with OSHA regulations to maintain a safe work environment.

‍OT: Overtime

OT refers to the hours an employee works that exceed their regular working hours, typically 40 hours per week. Overtime is usually compensated at a higher pay rate, often 1.5 times the regular hourly wage.

‍P/E: Price to earnings

P/E is a valuation ratio of a company's current share price compared to its per-share earnings. Investors use it to determine a stock’s market value relative to its earnings.

‍P&L: Profit and loss

P&L or income statements summarize the revenues, costs and expenses incurred during a specific period. They provide a clear picture of a company's financial health.

‍PE: Private equity

PE refers to a type of investment in which funds are invested directly into private companies or in public companies that are taken private. Private equity firms typically seek to restructure and improve companies before selling them for a profit.

‍PIP: Performance improvement plan

PIP is a formal document outlining steps employees must take to improve performance. It’s usually used when an employee is not meeting job expectations.

POC: Proof of concept

POC is an early prototype or experiment used to demonstrate the feasibility of a concept or product idea, commonly used in the startup and tech industries.

‍POC: Point of contact

POC also refers to “point of contact,” or a designated person responsible for communicating or coordinating a particular issue or project. The POC is the primary liaison between different parties.

‍POS: Point of sale

POS refers to the location or system where a retail transaction is completed. POS systems are crucial in sales and inventory management.

‍POV: Point of view

POV refers to an individual's or organization's perspective or opinion on a particular subject or issue. In business and communication, POV is often used to express a stance or viewpoint in discussions, presentations or content creation. Understanding different POVs is crucial for effective communication and decision-making.

‍PPC: Pay per click

PPC is an online advertising model where advertisers pay a fee each time their ad is clicked. It’s commonly used in search engine advertising and social media marketing to drive website traffic.

‍PPE: Personal protective equipment

PPE refers to protective clothing, helmets, goggles or other garments designed to protect the wearer's body from injury or infection.

‍PT: Part-time

PT refers to an employment arrangement in which an employee works fewer hours than a full-time employee, typically less than 35-40 hours per week.

‍PTE: Part-time employee

PTE refers to an employee who works fewer hours than a full-time employee, typically less than 35-40 hours per week. PTEs may have different benefits and work arrangements compared to full-time employees.

‍PTO: Paid time off

PTO is a policy that provides employees with a certain amount of paid leave to use for vacations, personal days or illness.

Q-S

QA: Quality assurance

QA is a process that ensures products and services meet certain quality standards before they are released to the public.

‍QC: Quality control

QC refers to ensuring that products or services meet specified quality standards. It involves systematically inspecting, testing and monitoring processes and outputs to detect and correct any defects or variations from the desired quality. QC is crucial for maintaining product consistency, customer satisfaction and compliance with industry regulations.

‍QTD: Quarter to date

QTD refers to the period starting at the beginning of the current fiscal quarter and continuing until the present date. It’s used to assess performance within the current quarter, such as earnings or sales.

‍R&D: Research and development

R&D refers to companies' activities to innovate and introduce new products or services. R&D is a crucial component of growth and competitive advantage.

‍RFI: Request for information

RFI is a formal process organizations use to gather information from potential suppliers or vendors about their products, services, capabilities or solutions. An RFI is typically used early in the procurement process to help organizations understand what options are available before they move forward with more detailed requests, such as a request for proposal (RFP) or request for quotation (RFQ).

‍RFP: Request for proposal

An RFP is a document used to solicit bids from potential vendors or service providers. It outlines the project requirements and expectations, allowing companies to compare proposals.

‍RFQ: Request for quotation

RFQ is a document organizations use to request a quote from suppliers or vendors for specific goods or services. It’s a key part of the procurement process, allowing companies to compare prices and terms before purchasing.

‍ROA: Return on assets

ROA is a financial ratio that measures how effectively a company uses its assets to generate profit. It’s calculated by dividing net income by total assets.

‍ROE: Return on equity

ROE is a measure of financial performance that calculates the return generated on shareholders' equity. It’s a key metric for investors to assess a company’s profitability.

‍ROI: Return on investment

ROI is a measure used to evaluate an investment's efficiency. It calculates the return on a particular investment relative to its cost. Understanding ROI is crucial for making financial decisions that affect the bottom line.

‍RTO: Return to office

RTO refers to the process or policy of employees returning to work at a physical office location after a period of remote work. 

SaaS: Software as a service

SaaS is a software delivery model where applications are hosted online and accessed via a web browser. The SaaS model allows companies to use software without managing the underlying infrastructure.

‍SBA: Small Business Administration

The SBA is a federal agency that supports entrepreneurs and small businesses. It provides access to capital, government contracts, disaster assistance and counseling and training services.

‍SCM: Supply chain management

SCM involves managing the flow of goods and services, including all processes that transform raw materials into final products. SCM is essential for ensuring efficiency and cost-effectiveness.

‍SCORM: Sharable content object reference model‍

SCORM is a set of technical standards for eLearning software products. It ensures that digital learning content can be easily shared and reused across different LMS platforms.

‍SEC: Securities and Exchange Commission

The SEC is a U.S. federal agency responsible for enforcing federal securities laws and regulating the securities industry, including the stock market. Its mission is to protect investors, maintain fair and efficient markets, and facilitate capital formation.

SEO: Search engine optimization

SEO involves optimizing online content to improve its visibility in search engine results. It’s a critical component of digital marketing strategies.

SERP: Search engine results page

The SERP is the page a search engine displays in response to a user’s query. The SERP typically includes a list of links to web pages, along with other features such as advertisements, images and snippets that match the search query.

SIT: State income tax

SIT refers to the tax imposed by a state on an individual's or business’s income. The rate and regulations vary by state, and employers withhold this tax from employees’ paychecks based on state tax laws.

SITW: State income tax withholding

SITW is the portion of an employee’s income that the employer withholds to pay state income taxes. Similar to FITW, SITW is determined by state tax regulations and submitted to the state revenue department.

‍SKU: Stock keeping unit

SKU is a unique identifier for each product or service that can be purchased. SKUs are used in inventory management to track and manage stock levels.

‍SLA: Service level agreement

SLA is a contract between a service provider and a customer that defines the level of service expected. SLAs are common in IT and customer service agreements.

‍SMART: Specific, measurable, achievable, relevant, time-bound

SMART is a goal-setting framework that helps ensure objectives are clear and reachable. It’s widely used in business and project management to create actionable and effective goals.

‍SMB: Small and medium-sized businesses

SMB refers to businesses with a limited number of employees and revenue. SMB companies play a vital economic role by driving innovation and employment.

‍SME: Subject matter expert

An SME is someone with deep expertise in a particular area or topic. They often provide guidance or insight.

‍SOC: System and organization controls

SOC refers to a set of standards designed to help organizations manage and protect customer data. SOC reports, such as SOC 1, SOC 2 and SOC 3, are used to demonstrate that a company has effective internal controls in place, particularly in financial reporting and data security.

‍SOGI: Sexual orientation and gender identity

SOGI is used to discuss issues related to both sexual orientation and gender identity, often in the context of anti-discrimination policies and practices.

‍SOP: Standard operating procedure

SOP is a set of step-by-step instructions an organization compiles to help workers carry out routine operations. SOPs ensure consistency and quality in business processes.

‍SOR: System of record

SOR refers to an authoritative data source that provides a definitive version of a particular information. SORs are critical in data management and compliance.

‍SOW: Statement of work

SOW is a document that defines the work required for a specific project, including deliverables, timelines and scope. SOWs serve as a contract between a company and its clients or contractors.

‍SROI: Social return on investment

SROI measures an investment's social and environmental impact in addition to its financial return. SORI is used to evaluate the broader value created by business activities.

‍SS and SOCSEC: Social Security

SS and SOCSEC both refer to the U.S. federal program that provides retirement, disability and survivor benefits to eligible individuals. Social Security is funded through payroll taxes collected under FICA.

‍SSC: Social Security contribution

SSC refers to the mandatory contributions made by employees and employers to a country’s social security system, which provides benefits such as retirement, disability and unemployment insurance.

‍SSO: Single sign-on

SSO is an authentication process that allows a user to access multiple applications or systems with one set of login credentials. SSO simplifies the user experience and improves security by reducing the number of passwords users must remember.

‍SWOT: Strengths, weaknesses, opportunities, threats

A SWOT analysis is a strategic planning tool for identifying internal and external factors that could impact a business. SWOTs help companies develop strategies that leverage strengths and address weaknesses.

T-Z

TCPA: Telephone Consumer Protection Act

The TCPA is a federal law restricting telemarketing calls, using automated telephone equipment and sending prerecorded voice messages, SMS text messages and faxes. The TCPA also requires certain caller identification information and gives consumers the right to opt out of receiving such communications.

‍TCO: Total cost of ownership

TCO is the total cost of acquiring, operating and maintaining a product or system over its entire lifecycle. It’s a critical consideration in procurement and budgeting.

‍TM: Trademark

A ™ or trademark is a symbol that indicates that a company claims the exclusive right to use a particular word, phrase, logo or symbol in connection with its goods or services. It informs others that the term or symbol is a company's proprietary brand or product name. Unlike the ® symbol, which is used for registered trademarks, TM can be used even if the trademark has not been officially registered with a trademark office.

‍TNA: Training needs analysis

TNA is a process used to identify the gaps between current employee skills and the skills needed to perform a job effectively. A TNA helps organizations determine the specific training required to close these gaps and improve performance.

‍TQM: Total quality management

TQM is a management approach focused on continuous improvement of processes, products and services to achieve long-term success through customer satisfaction.

TWI: Training within industry

TWI provides standardized training in job instruction, job methods and job relations. TWI is often used in manufacturing and other related industries to improve worker efficiency and productivity.

UI: User interface

UI refers to the visual and interactive elements of a software application or device that users interact with. Good UI design is crucial for creating an intuitive and user-friendly experience.

‍URM: Underrepresented minority

URM refers to underrepresented groups in a particular context, such as in the workplace or education. URMs can include racial, ethnic, gender or other groups facing inclusion barriers.

‍USP: Unique selling proposition

USP is a marketing concept highlighting a product or service's unique benefits that set it apart from competitors. It’s central to branding and customer communication.

‍UX: User experience

UX encompasses all aspects of a user’s interaction with a company’s products or services. It focuses on creating a positive user experience, from ease of use to overall satisfaction.

VC: Venture capital

VC is a form of private equity financing investors provide to startups and small businesses with high growth potential. VCs receive equity in exchange for their investment.

‍VILT: Virtual instructor-led training

VILT is a training method where an instructor delivers live training sessions via a virtual platform, allowing participants to join remotely. VILT combines the interactivity of in-person ILT with the convenience of online learning.

‍VPN: Virtual private network

VPN is a technology that creates a secure, encrypted connection over the internet, allowing users to safely access private networks remotely. VPNs are commonly used by businesses to protect sensitive data.

‍VR: Virtual reality

VR is a technology that creates a simulated environment, typically experienced through a headset. VR is used in various industries, including entertainment, education, and training.

WFH: Work from home

WFH refers to a work arrangement where employees perform their job duties from home rather than in a traditional office setting.

‍WHM: Women's History Month

WHM is an annual celebration in March that recognizes the contributions and achievements of women throughout history. WHM is observed in various countries and is a time to highlight women's roles in shaping society.

‍WOW: Week over week

WOW refers to comparing a particular metric from one week to the next. It's often used in business and finance to track short-term trends and performance changes, such as sales, traffic or productivity. This metric is handy for monitoring the immediate impact of changes or events.

YOY: Year over year

YOY is a method of comparing a statistic for one period to the same period the previous year. It’s commonly used in financial analysis to assess growth or performance changes over a year.

‍YTD: Year to date

YTD refers to the period beginning at the start of the current calendar year and continuing up to the present date. It’s commonly used in financial reporting to analyze performance, trends, or results over the current year.

How to implement acronym and lexicon training in your organization

Training employees on your lexicon should be part of a broader strategy to educate employees on business fundamentals. Here are a few ways to implement this lexicon and business foundations training:

• Onboarding programs: Introduce your lexicon during onboarding to ensure new hires start with a strong foundation.
• Workshops and seminars: Regular workshops can be organized to explore the foundational topics that matter most to your business.
• Mentorship programs: Pair less experienced employees with mentors who can help them understand your business and the broader industry.

By training employees on your lexicon and business foundations, organizations can enhance communication, improve decision-making and drive better results. Investing in knowledge is investing in the future of your business.

Invest in your people with Electives.

From live daily classes to deep-dive programs, Electives makes it easy and affordable for you to offer your employees the best learning opportunities.