Economy and Business Terms - Charlie, your teacher of English
Inputs: They are resources such as people, raw materials, energy, information, or finance that are
put into a system (such as an economy, manufacturing plant, computer system) to obtain a desired
output. Inputs are classified under costs in accounting.
Insider trading: It's the trading of shares based on knowledge not available to the rest of the world.
A famous fictional insider trader was Bud Fox in the film Wall Street. He made a killing on airline
stocks when his dad told him about a crucial upcoming court decision for his airline company, Blue
Star, ahead of the official announcement.
Such trading was made illegal in the UK in 1980 but suspicious share price movements are frequent
and cynics believe that the practice is still rife in the City.
Intent: A determination to perform a particular act or to act in a particular manner for a specific
reason; an aim or design; a resolution to use a certain means to reach an end.
Intent is a mental attitude with which an individual acts, and therefore it cannot ordinarily be directly
proved but must be inferred from surrounding facts and circumstances. Intent refers only to the state
of mind with which the act is done or omitted. It differs from motive, which is what prompts a person
to act or to fail to act. For example, suppose Billy calls Amy names and Amy throws a snowball at
him. Amy's intent is to hit Billy with a snowball. Her motive may be to stop Billy's taunts.
Internal Revenue Service: The Internal Revenue Service (IRS) is a U.S. government agency
responsible for the collection of taxes and enforcement of tax laws. Established in 1862 by
President Abraham Lincoln, the agency operates under the authority of the United States
Department of the Treasury, and its primary purpose includes the collection of individual income
taxes and employment taxes. The IRS also handles corporate, gift, excise and estate taxes. People
colloquially refer to the IRS as the "tax man."
Joint Account: It's an account at a bank or a brokerage where there are two or more account
holders. The holders of a joint account share all rights and responsibilities regarding the account.
That is, one may deposit or withdraw money from a joint account without the consent of the other
and both may be held liable for an overdraft or loss. Joint accounts are most common for married
couples.
Joint and Severally Liable: Joint and several liability is when multiple parties can be held liable for
the same event or act and be responsible for all restitution required. In cases of joint and several
liability, a person who was harmed or wronged by several parties could be awarded damages and
collect from any one, several, or all of the liable parties. The liable parties would be required to pay
the entire damage award, which could be split among multiple parties or could come from just one
party. Each party would be liable for part of the damages, or up to as much as all of the damages.
Keynesian Economics: It's a theory stating that government intervention is necessary to ensure an
active and vibrant economy. According to this theory, government should stimulate demand for
goods and services in order to encourage economic growth. It thus recommends tax cuts and
increased government spending during recessions to reinvigorate growth; likewise, it recommends
tax increases and spending cuts during economic expansion in order to combat inflation. Many
economists believe that Keynesian economic theory is more efficient than supply-side economics,
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