Partie 4 : Réalités économiques

Chapitre 37 : The world of finance

Business finance, page 80

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a taxpayer
household income
income tax
VAT (value added tax)
assets and liabilities
profit and loss
to ensure
a profit
the turnover
to plan a budget, to draw up a budget
a rate of return
investment management
business management
to file for bankruptcy
to collapse
to bail out
to entail a cost

The company has an annual turnover of ca £10 million.

According to legend, Lady Godiva rode naked through the streets of Coventry to protest against the high taxes levied by her husband on his tenants in the 11th century.

The stock exchange, page 80

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a share
a junk bond
pension funds
a government bond
a shareholder, a stockholder
a broker
a stockbroker
the return on investment
to raise capital
a share price
to go up, to rise
to soar
to peak, to reach a peak
to go down, to fall
to drop
to plummet

The market was steady all week, but has rallied just before the close.

A bearish day is to be expected but we’re bullish on these bonds.

Food for thought, page 81

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Economists, industrialists and the typical person in the street all fear the consequences of a recession, i.e. decreasing industrial production, fewer job opportunities, reducing purchasing power, etc.

The economic effects of a recession are well known. They are also social when unemployment rises and people find it harder and harder to solve their financial problems, which can lead to mental and physical illness or even depression.

In some regions with little social protection, unemployment can mean homelessness. Homes are foreclosed on and sometimes abandoned. Whole neighbourhoods can deteriorate as a result of high unemployment. If the worst comes to the worst, a whole city can go bankrupt, like Detroit in the USA.