Economy & Business

QuestionAnswer
a general increase in prices and fall in the purchasing value of money
inflation
Rising inflation has eroded the purchasing power of consumers across the country.
to support financially, especially with public funds
subsidise
The government decided to subsidise renewable energy projects to reduce carbon emissions.
the exclusive possession or control of the supply of a good or service
monopoly
A monopoly in the telecommunications sector can lead to higher prices for consumers.
relating to government revenue, especially taxes
fiscal
Fiscal policy adjustments were made to stimulate economic growth during the downturn.
the activity of buying and selling, especially on a large scale
commerce
International commerce has been facilitated by advances in shipping and logistics.
the buying and selling of goods and services between countries or individuals
trade
Free trade agreements aim to reduce barriers and promote economic cooperation.
income generated from business operations or taxation
revenue
Tax revenue is the primary source of funding for public infrastructure projects.
the amount by which spending exceeds income or revenue
deficit
The government's budget deficit has raised concerns about long-term fiscal sustainability.
an amount of something left over when requirements have been met
surplus
A trade surplus occurs when a country's exports exceed its imports.
a tax or duty to be paid on imports or exports
tariff
Imposing tariffs on imported goods can protect domestic industries but raise consumer prices.
a raw material or primary agricultural product that can be traded
commodity
Oil remains one of the most valuable commodities in the global economy.
the activity of setting up and running a business, taking on financial risk
entrepreneurship
Entrepreneurship is widely regarded as a key driver of economic growth and innovation.
the action of allocating money or resources with the expectation of profit
investment
Foreign direct investment can boost employment and economic development.
the combining of two companies into one
merger
The merger of the two banks created the largest financial institution in the region.
the buying of one company by another
acquisition
The acquisition of the start-up allowed the corporation to enter a new market.
the state of being declared legally unable to pay outstanding debts
bankruptcy
The company filed for bankruptcy after years of declining sales and mounting debt.
the practice of obtaining goods or services from an external supplier
outsourcing
Outsourcing manufacturing to countries with lower labour costs is a common business strategy.
a reduction in the value of an asset over time
depreciation
Depreciation of the national currency made imports significantly more expensive.
a sum of money paid regularly to shareholders from company profits
dividend
Investors were pleased when the company announced an increase in its annual dividend.
a period of temporary economic decline with reduced trade and activity
recession
The global recession led to widespread unemployment and business closures.
difficult economic conditions created by government measures to reduce spending
austerity
Austerity measures included cuts to public services and reductions in government spending.
financial assistance given to a failing business to save it from collapse
bailout
The government's bailout of the banking sector was highly controversial.
a person who arranges transactions between a buyer and a seller
broker
The broker negotiated a deal that satisfied both parties involved in the transaction.
an economic system based on private ownership and free-market competition
capitalism
Capitalism encourages competition, which can drive innovation and efficiency.
an association of businesses formed to control prices and limit competition
cartel
The cartel artificially inflated oil prices by restricting supply to the market.
something pledged as security for repayment of a loan
collateral
The bank required the property as collateral before approving the business loan.
a large corporation formed by the merging of several different firms
conglomerate
The conglomerate owns businesses in technology, media, and telecommunications.
the preoccupation of society with the acquisition of consumer goods
consumerism
Critics argue that consumerism contributes to environmental degradation and waste.
the removal of government regulations from an industry
deregulation
Deregulation of the energy market was intended to increase competition and lower prices.
the value of shares issued by a company; fairness and impartiality
equity
The firm raised capital by selling equity to institutional investors.
the action of spending funds; an amount of money spent
expenditure
Government expenditure on healthcare has increased steadily over the past decade.
an authorisation to sell a company's goods or services in a particular area
franchise
The fast-food franchise expanded rapidly into international markets.
an investment made to reduce the risk of adverse price movements
hedge
Investors often hedge against currency fluctuations to protect international earnings.
something that motivates or encourages someone to do something
incentive
Tax incentives were offered to attract foreign companies to invest in the region.
the use of borrowed capital to increase the potential return of an investment
leverage
Excessive leverage in the financial sector contributed to the banking crisis.
the process of winding up a company and distributing its assets
liquidation
The company went into liquidation after failing to secure additional funding.
the branch of economics dealing with individual and business decisions
microeconomics
Microeconomics examines how supply and demand affect pricing in individual markets.
the branch of economics dealing with the economy as a whole
macroeconomics
Macroeconomics analyses factors such as national output, unemployment, and inflation.
the action of obtaining goods or services, typically for business purposes
procurement
Efficient procurement processes can significantly reduce operational costs.
a limited quantity of a product that may be produced, exported, or imported
quota
Import quotas were imposed to protect domestic farmers from foreign competition.
a penalty imposed on a country for breaking international law
sanction
Economic sanctions were imposed to pressure the regime into diplomatic negotiations.
to invest in stocks or property in the hope of gain but with risk of loss
speculate
Investors who speculate on volatile markets may face significant financial losses.
a person with an interest or concern in a business or enterprise
stakeholder
All stakeholders were consulted before the company restructured its operations.
the tendency of something to change rapidly and unpredictably, especially price
volatility
Market volatility has increased due to geopolitical tensions and supply chain disruptions.
the gradual repayment of a debt over a period of time
amortisation
The amortisation schedule outlines monthly payments required to repay the mortgage.
an increase in the value of an asset over time
appreciation
Property appreciation in the city centre has been driven by high demand.
the simultaneous buying and selling of assets to profit from price differences
arbitrage
Arbitrage opportunities arise when the same commodity is priced differently across markets.
an official examination of a company's financial accounts
audit
An independent audit revealed discrepancies in the company's financial statements.
a fixed-income instrument representing a loan made by an investor to a borrower
bond
Government bonds are generally considered a safe investment option.
an association of several companies formed for a joint purpose
consortium
A consortium of technology firms collaborated to develop the new industry standard.
a person or company to whom money is owed
creditor
Creditors demanded repayment after the firm defaulted on its loan obligations.
a person or institution that owes a sum of money
debtor
The debtor negotiated a new repayment plan to avoid defaulting on the loan.
a general decline in prices, often caused by a reduction in money supply
deflation
Deflation can discourage spending as consumers wait for prices to fall further.
to expand a business or investment portfolio into different areas
diversify
Companies that diversify their product range are better protected against market downturns.
an official ban on trade or commercial activity with a particular country
embargo
The trade embargo severely limited the country's ability to import essential goods.
a person who sets up a business, taking on financial risks for profit
entrepreneur
The entrepreneur secured venture capital to launch her technology start-up.
a tax levied on certain goods and commodities produced within a country
excise
Excise duties on tobacco products were raised to discourage smoking.
the process of taking possession of a property when mortgage payments are not made
foreclosure
Thousands of families faced foreclosure during the housing market collapse.
working for different companies at different times rather than being permanently employed
freelance
The freelance economy has grown as more professionals seek flexible work arrangements.
a tip given to a worker for services rendered; a retirement bonus
gratuity
It is customary to leave a gratuity for good service at restaurants in many countries.
security or protection against a loss or financial burden
indemnity
The insurance policy provides indemnity against damage caused by natural disasters.
the state of being unable to pay debts when they are due
insolvency
The company's insolvency was caused by poor financial management and falling revenue.
a company's legal debts or obligations
liability
Reducing long-term liabilities is essential for maintaining a healthy balance sheet.
the availability of liquid assets to meet financial obligations
liquidity
The central bank injected liquidity into the market to prevent a credit freeze.
relating to money or currency
monetary
Monetary policy decisions by the central bank influence interest rates and lending.
a loan used to buy property, secured against the value of that property
mortgage
Rising interest rates have made mortgage repayments more expensive for homeowners.
a market dominated by a small number of large sellers
oligopoly
The airline industry in many countries operates as an oligopoly with limited competition.
the ongoing business expenses not directly attributed to production
overheads
Reducing overheads by moving to a smaller office helped the company remain profitable.
a regular payment made to retired employees from an investment fund
pension
Pension reform is necessary to ensure financial security for an ageing population.
a range of investments held by a person or organisation
portfolio
A diversified portfolio helps mitigate risk during periods of market uncertainty.
the transfer of a business or industry from public to private ownership
privatisation
Privatisation of state-owned enterprises can improve efficiency but may reduce public access.
the degree to which a business yields profit relative to its costs
profitability
The company improved profitability by streamlining operations and cutting waste.
a sum of money sent in payment, especially to another country
remittance
Remittances from workers abroad are a major source of income for developing nations.
the reduction of costs or spending in response to economic difficulty
retrenchment
Corporate retrenchment often involves layoffs and budget cuts during a recession.
tradable financial assets such as stocks and bonds
securities
The securities market experienced a sharp decline following the unexpected policy announcement.
the state of having enough assets to cover all debts and obligations
solvency
Maintaining solvency is critical for businesses to continue operating long-term.
a lack of activity, growth, or development in an economy
stagnation
Economic stagnation combined with rising prices creates a condition known as stagflation.
a sum of money granted by the government to assist an industry or business
subsidy
Agricultural subsidies help farmers maintain production during periods of low market prices.
a formal offer to supply goods or carry out work at a stated price
tender
Several construction firms submitted a tender for the government infrastructure project.
an instance of buying or selling something; a business deal
transaction
Digital payment systems have made financial transactions faster and more convenient.
the amount of money taken by a business in a particular period
turnover
The company reported a significant increase in annual turnover compared to last year.
to accept financial responsibility or guarantee payment for something
underwrite
Investment banks underwrite new share issues to help companies raise capital.
a risky or daring business enterprise or journey
venture
The joint venture between the two companies expanded their market presence in Asia.
a useful or valuable thing or person; property owned by a company
asset
The company's assets include real estate, intellectual property, and cash reserves.
the exchange of goods or services without using money
barter
In some rural economies, barter remains a common method of conducting trade.
to start a business using personal finances rather than external funding
bootstrap
Many successful tech companies were bootstrapped from a garage with minimal investment.
secret agreement for a fraudulent or deceitful purpose, especially in business
collusion
Price-fixing collusion between competitors is illegal under antitrust laws.
relating to a reduced rate or special privilege granted as a concession
concessionary
Concessionary fares on public transport benefit students and senior citizens.
a market dominated by two major sellers
duopoly
The soft drinks industry is often described as a duopoly due to two dominant brands.
involving trust, especially relating to the management of money on behalf of others
fiduciary
Financial advisers have a fiduciary duty to act in the best interests of their clients.
to seize money from a debtor's wages to satisfy a debt
garnish
The court ordered the employer to garnish the employee's wages to repay the outstanding debt.
extremely rapid or out-of-control inflation in an economy
hyperinflation
Hyperinflation rendered the national currency virtually worthless within months.
the amount added to the cost price to determine the selling price
markup
Retailers typically apply a markup of between 50 and 100 percent on wholesale goods.
the transfer of a private industry or business to state ownership
nationalisation
Nationalisation of the oil industry gave the government control over energy resources.
the practice of shielding domestic industries from foreign competition
protectionism
Protectionism through high tariffs can lead to trade wars between nations.
the formal approval or confirmation of an agreement or treaty
ratification
Ratification of the trade agreement by all member states took several months.
the state of being dealt with by an official receiver due to insolvency
receivership
The struggling retailer was placed into receivership pending restructuring.
the practice of exchanging things with others for mutual benefit
reciprocity
Trade reciprocity ensures that both countries benefit equally from commercial agreements.
payment or compensation received for services or employment
remuneration
Executive remuneration packages have come under scrutiny from shareholders.
the state of being in short supply; insufficiency of resources
scarcity
Scarcity of raw materials has driven up production costs across multiple industries.
an owner of shares in a company
shareholder
Shareholders voted in favour of the proposed restructuring plan at the annual meeting.
having assets in excess of liabilities; able to pay debts
solvent
The auditor confirmed that the company remained solvent despite recent losses.
a company controlled by a larger parent company
subsidiary
The multinational operates through subsidiaries in over thirty countries worldwide.
a group of individuals or organisations combined for a common purpose
syndicate
A banking syndicate was formed to finance the large-scale infrastructure project.
the levying of taxes by the government on income, property, or transactions
taxation
Progressive taxation requires higher earners to pay a larger percentage of their income.
an estimation of the worth of something, especially a business
valuation
The valuation of the technology start-up exceeded one billion dollars.
the selling of goods in large quantities to be retailed by others
wholesale
Wholesale prices for grain have risen due to supply shortages and increased demand.
the payment of money from a fund or account
disbursement
The disbursement of grant funds was delayed due to administrative complications.
the action of selling off subsidiary business interests or investments
divestiture
The conglomerate announced the divestiture of its underperforming retail division.
the practice of lending money at unreasonably high interest rates
usury
Laws against usury protect borrowers from exploitative lending practices.
to turn something into a commodity that can be bought and sold
commoditise
The tech industry tends to commoditise innovations quickly, driving down prices.
the action of taking property from its owner for public use or benefit
expropriation
Expropriation of private land for the highway project was met with legal challenges.
compensation for damage, loss, or injury suffered
indemnification
The contract includes an indemnification clause protecting against third-party claims.