UNIVERSITE PARIS 2 PANTHEON ASSAS LICENCE DE SCIENCES ECONOMIQUES PREMIERE ANNEE GLOSSARY OF ECONOMICS ANNEE UNIVERSITAIRE 2008-2009 Distribution : semaine du 27 octobre 2008 NB the underlined vowels in each word are those in the stressed syllables. Please pay attention to stress and pronunciation. Examples are in italics. 401k, 401(k) – in the USA, a 401(k) is a type of retirement plan that allows employees to save and invest for their own retirement. Through a 401(k), an employee can authorize his/her employer to deduct a certain amount of money from their pay-check before taxes are calculated, and to invest it in the 401(k) plan. The money is invested in investment options that are chosen from the ones offered through the company's plan. The federal government established the 401(k) in 1981 with special tax advantages (the money contributed to the plan is deducted from the employee’s taxable income), to encourage people to prepare for retirement. 401(k)s get their name from the section of the Internal Revenue Code which established them (section 401(k)). A Abide – abide by : to act in conformity with, to respect, to obey. All people living in the US must abide by US law (US Citizenship and Immigration Services). Account – n. 1 an arrangement at a bank for commercial or financial transactions. 2 a record of income and expenses (companies must keep detailed accounts). v. account for 1 to provide a reason for (every expense must be accounted for). 2 to answer for, to be responsible for. 3 to provide a specific proportion of (this model accounts for 37% of our sales). Accountable – adj. responsible. The Sarbanes-Oxley act makes CEOs more accountable for their actions. Accountancy – the profession of an accountant. Accountant – a professional keeper or inspector of accounts. Accounting – the process of keeping or verifying accounts. Accrue – to accumulate (accrued interests have accumulated but have not been paid yet). Achieve – v. 1 reach or obtain by effort (achieve success), acquire, gain, earn (achieve notoriety). 2 accomplish or carry out (a task). overachieve – to succeed beyond expectations / above par / above average. underachieve – to perform below par / below average / below expectations. Children who perform poorly at school can be called underachievers. Achievement 1 what has been achieved. 2 success. Acquisition - the purchase of a company by another company. Acquiree – the acquired company. Acquirer – the company acquiring the other one. Act – act of Congress – a bill (proposed law) or resolution (written motion) adopted by both houses of the United States Congress and accepted by the President. Ad – see advertisement. Advertise – to draw attention to or describe favorably in a public medium to promote sales. To announce that something is for sale or that a position is vacant. Advertisement (GB) – advertisement (US) - ad – a notice which shows that something is for sale or that a service is offered or that a job is vacant, etc. Ads can be placed in newspapers or magazines (classified ads – job offers, cars for sale, apartments for rent, etc. - or full-page ads), on TV or radio (commercials), on websites (banners)… Advertising – the business of encouraging people to buy goods by means of advertisements. Affect – v. to have an effect on. The travel industry was affected negatively by 9/11. Afford – v. to have the financial means for. We can’t afford to buy new computers. Affordable – financially accessible, within one’s means. An affordable house. Agenda 1 in a meeting – the list of topics to be considered and/or discussed during the meeting. 2 politics – what a government or an administration or a candidate wants to do (if in power) or plans to do when in power. Example: More privatisations are on the Conservative agenda. Alter – to change or modify. Amortization 1 repayment of a loan by instalments. 2 (US) depreciation. Amortize – v. to pay off (a debt). Analyst - employee of a brokerage or fund management house who studies companies and makes buy-and-sell recommendations on stock of these companies. Most specialize in a specific industry, or in a small number of firms within one industry. Annual report - a document distributed annually by public corporations to inform shareholders of company progress and to attract potential investors. Annum - year. Used in the expression per annum (i.e. per year / each year). Applicant – a person who applies for something. Application – the act of applying. Application form: document to be filled in when applying. Apply – to ask for something, usually in writing. To apply for a job. Appoint – to place in a specific position (the CEO of a company is appointed by the Board of Directors). Appointment – an arrangement to meet made in advance. Appraisal – the act of appraising. Appraise – v. estimate the value or quality of something. Assess – v. estimate the size or quality of something, esp. property (for taxation). Measure (performance). Assessment – the act of assessing. Example: Most universities now use a continuous assessment system to grade students. Asset – anything that an individual or a corporation owns. For an individual: house, securities, cash, etc. For a company: buildings, equipment, stock, etc. Asset management - the management of the financial assets of a company (or a person of substantial net worth) in order to maximize return. Asset management account - an account at a financial institution that includes checking services, credit cards, debit cards, margin loans, the automatic sweep of cash balances into a money market fund, as well as brokerage services. Assign – v. when someone is assigned to a position, he/she is placed in this position. When a task is assigned to someone, this person has to perform this task. Assignment - something assigned to a person, a task. ATM – Automated Teller Machine – (US) cash dispenser (the machine delivering cash after a credit card or debit card is inserted and a PIN (Personal Identification Number) is entered. Auction, sale by auction – selling of goods where people make bids, and in which the item is sold to the highest bidder. Audit - examination of a company's financial statements and control practices by a firm of accountants and auditors that confirm the accuracy of published financial statements. These statements must give a fair presentation (US) or a true and fair view (GB) of the company’s situation. Auditor – a member of the CPA (Certified Public Accountants) body (US) or of one of the four bodies of the Consultative Committee of the Accountancy Bodies (GB), whose responsibility is to analyse company financial statements and to give an opinion on them. An auditor may also give recommendations on ways to improve the company’s operations and procedures. Auditor report - a part of the annual report containing the auditor's opinion about the accuracy of financial statements. Axe – n. 1 a chopping tool. 2 the drastic cutting or elimination of costs or staff. To give someone the axe = to fire someone. v. 1 to cut drastically. 2 to dismiss. B B2B – Business-to Business : trading between corporations. B2C – Business-to-Customer : trading between a corporation and individuals. Balance sheet - financial statement showing a corporation’s assets, liabilities and shareholder capital. Ban n. a formal or authoritative prohibition Example: There is now a complete ban on smoking in every office in the country) v. forbid, prohibit. Example: After his third bankruptcy, he was banned from running a business. Bank n. a financial establishment which uses money deposited by customers / clients for investment, pays it out when required, makes loans, exchanges currency, etc. v. bank on: to rely on, to trust in. Bankrupt – unable to pay debts. To go bankrupt: to be forced to stop operating as a result of being unable to meet one’s financial obligations. Bankruptcy - the inability to pay debts. When a business or a person can no longer pay their debts, they can file for bankruptcy, or go under Chapter 11. Banner – advertising space in a web page. Bargain n. 1 an agreement on a transaction. drive a hard bargain = to be a tough negotiator in a business transaction. throw something in / into the bargain = to add something to a deal / an offer (we were having a hard time closing the deal, so I threw a couple extra $1,000s in the bargain). 2 something offered or acquired cheaply. At €25, the Thales stock is a bargain. The bargain bin (UK) a box where damaged or unwanted or definitely out-of- fashion goods are placed in the hope of getting rid of them. The Eurotunnel stock is now in the bargain bin = it is sold very cheaply and yet no-one wants to buy it. v. 1 discuss the terms of a transaction. 2 negotiate (collective bargaining is a common form of negotiation between employees and employers). Barrel – the standard measurement for crude oil and other petroleum products. A barrel (abbreviated bbl) is 42 US gallons (about 159 l). Baseline – a short formula summarising the goals of any communication or advertising strategy. Bean counter – (slang) 1 an accountant 2 a person focusing too much on detail and / or numbers and not enough on the broader picture. Bear - an investor who believes a stock or the overall market will decline. A bear market is a prolonged period of falling stock prices, usually by 20% or more. Opposite: bull. Belong – belong to = to be the property of. belong in = to have one’s right place in (this kind of equipment should no longer be used – it belongs in a museum)(since Nike no longer actually makes any shoes, it belongs in the service sector rather than the garment industry). Benefit from – to receive an advantage or gain from. Benefits 1 (US) or Perks (GB) – anything a company can give its employees besides a salary: health insurance, scholarships for their children, a company car, an expenses account, etc.