CAT Word List

cat word list

I know, I know. What?! I can hear you crying. You literally just told us not to go about memorizing CAT word lists! You told us that the most important vocabulary we could learn for CAT Verbal had to do with the question stems! Not to worry, Magooshers! Everything you’ve read still holds. But I did decide to provide this brief CAT word list for a very important reason.

After the CAT Verbal section (about which I’ve already given my best vocab advice!), you’ll find yourself facing Data Interpretation & Logical Reasoning before moving on to Quantitative Ability. And if you don’t think vocabulary will help you out there, you’re wrong!

But be careful—when I say “vocabulary,” I don’t mean that you should spend hours making flashcards and reviewing the definition of “alligator.” On the contrary! Your vocabulary prep for the CAT needs to be targeted, precise, and relevant. In other words, it should consist primarily of mastering common business terms. For example, the following 34 terms, hand-picked by me from the last ten years’ worth of official CAT exams.

Why bother learning these? After all, in a lot of cases, you’ll be able to determine a word’s meaning from its context on the exam. But remember—you only have around a minute and a half to answer each question. By becoming familiar with common business and economic terms before test day, you’ll help make yourself a speedier reader, a more efficient test-taker, and a more accurate responder!

Convinced? I (clearly) am! So here we go…

CAT Word List

WordDefinition
AmassTo accumulate something valuable over time, e.g. After ten years at the current rate of growth, Company A could expect to amass...
AppreciateRise in price or value (rarely, in this context, to "enjoy"), e.g. From 2007-2008, Company B's stock appreciated by...
ApproximateClose, but not exact, e.g. Company C's sales for 2016 can be approximated at...
AverageThe mean of a set of numbers, calculated by adding the terms, then dividing by the number of terms, e.g. The average return on investment for Companies D, E, and F, was closest to... Can also mean "unremarkable," but rarely in this context.
BranchA location outside of the main office where business relating to that main office takes place, e.g. Once yearly, Company G holds a meeting for its branch managers.
BrandA product sold under a particular name, e.g. The following brands by Company H performed as shown in the below table in 2007-2010.
DepreciationA decrease in the value of an asset, especially over time, e.g. The data shows that which company experienced the greatest depreciation in its stock value?
DistributionSupplying goods to stores, e.g. Company I's distribution schedule can best be described as...
EquivalentEqual in value, e.g. Which of the six companies showed roughly equivalent losses for the period indicated?
ExpenditureSpending funds, or the amount of funds spent, e.g. Company J's expenditures in 2015 were closest to...
Export/ImportExport: to send goods to another country for sale/Import: to bring goods in from another country for sale, e.g. Company K's imports and exports were roughly equal in which of the following years?
FacilitateTo ease, e.g. According to the graph, which factor most facilitated Company L's growth?
FactorSomething contributing to an outcome, e.g. Which factor was most instrumental in Company M's bankruptcy?
FluctuateRise and fall, usually without a discernible pattern, e.g. The fluctuation in Company N's stock price can primarily be attributed to...
FranchiseA business acting as an agent for, and/or under the control of, a larger business of the same name, e.g. Of the 20 owners of Company O franchises, which had the highest sales in Q4?
GrossTotal sum of money before deductions, such as taxes, e.g. Which company depicted had the highest gross receipts?
IncomeMoney received through business, e.g. The average income of Company P's employees can primarily be attributed to...
IndustryThe production of goods within a given economic sector, e.g. According to the chart, the textile industry suffered a loss in profits from 2014-2015 because...
InvestmentMoney provided in order to gain profit, monetary or material, e.g. Individuals making investments in Company Q in this period would have found...
LossA decrease in money after an initial investment, e.g. Company R's losses in Q1 were closest to...
Minimum/MaximumMinimum: The lowest possible value in a given data set. Maximum: The highest possible value in a given data set, e.g. The difference between the minimum and maximum earnings of Company S is closest to...
MiscellaneousVaried, e.g. Company T's products included electronics, textiles, and other miscellaneous products.
MutualCommon to two or more individuals or entities, e.g. The investor and the company received mutual benefits when the investor put money into a mutual fund containing the business's stocks, among others.
NetTotal earnings after deducting the cost of production and other expenses, such as taxes, e.g. The difference in Company U's net and gross earnings can primarily be attributed to...
OutcomeResult, e.g. The outcome of Company V's overhaul was...
ProductAnything sold, e.g. Company W's products include...
ProfitMoney gained, in this context primarily through business, e.g. Company X's profits primarily derived from...
Proportionate/ProportionalSynonyms, both meaning corresponding or comparable to something else, e.g. Of the companies shown, which showed growth proportionate to investment?
RateSomething measured against something else, e.g. The rate of growth over two years was greatest for...
RevenueIncome, especially that of a business, e.g. Company Y's revenue was closest to...
SectorA sphere of (usually economic) activity, e.g. The following companies all work in the financial sector.
Socio-economicRelated to the overlap of social and economic factors, e.g. The socio-economic impact on the surrounding neighborhood could best be described as...
StrategyA plan of action to attain a goal, e.g. Which of the companies depicted had the most successful strategy for rapid growth?
TargetGoal or entity at which an endeavor is aimed, e.g. Company Z's target audience for this product was 18-34-year-olds.

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