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what is an acronym an acronym is when we take the first letter out of each word in a company name organization name product saying or phrase and use the first letters instead of saying the whole thing many companies go by an acronym instead of their full name whos ever heard of international business machines probably not very many people but we all know ibm there are many sayings in business that have been shortened to save time and because theyre used frequently if you want something done quickly you can tell someone to do it as soon as possible but youre more likely to say asap or even asap some acronyms have become so common almost no one uses the long version anymore if you see an alien spaceship in the sky youre unlikely to say i think i just saw an unidentified flying object youll probably say i just saw ufo social events have their own acronyms if youre invited to a party where they wont be supplying the alcohol and they want you to know that there probably isnt enough