Economy and Business Terms - Charlie, your teacher of English
For example, a healthy, non-smoking 65-year-old woman will receive a smaller monthly payout than
a 70-year-old male smoker, because it is expected that she will cost the insurance company more in
the long run.
Annuities vary between providers, so it is important to shop around rather than just buying the
annuity offered by your existing pension company. Currently, you must purchase your annuity
before you turn 75.
Arbitrage: It's the taking advantage of the difference in the price of a share or currency, usually in
two different markets.
If a share is quoted at 100pence in London and 105pence in New York, an arbitrageur would make
a profit by selling in New York and buying in London.
In the US, arbitrage is often associated with risk arbitrage, which means buying shares in potential
takeover targets, waiting for a bid that inevitably pushes up the share price and then selling the
shares for a profit.
It's an investment practice that attempts to profit from inefficiencies in price by making transactions
that offset each other. For example, one may buy a security at a low price and, within a few
seconds, re-sell it to a willing buyer at a higher price. Arbitrageurs can keep prices relatively stable
as markets try to resist their attempts at price exploitation. Arbitrageurs often use computer
programs because their transactions can be complex and occur in rapid succession.
Arbitration: At its core, arbitration is a form of dispute resolution. Arbitration is the private, judicial
determination of a dispute, by an independent third party. An arbitration hearing may involve the use
of an individual arbitrator or a tribunal. A tribunal may consist of any number of arbitrators though
some legal systems insist on an odd number for obvious reasons of wishing to avoid a tie. One and
three are the most common numbers of arbitrators. The disputing parties hand over their power to
decide the dispute to the arbitrator(s). Arbitration is an alternative to court action (litigation.
Assemble: An assembly line is a process of production which enables a continuous efficient rolling
process. Usually it involves a commodity, such as a car, moving along a conveyor belt. As it moves
slowly along, workers add different parts to the car.
Auditors: Auditors are accountants who must certify that the company accounts are prepared and
signed by the board of directors, and are a 'true and fair view' of the company's financial position.
1. Also, an auditor is a person who reviews activities to identify inefficiencies, reduce costs, and
otherwise achieve organizational objectives. Auditors may investigate potential theft or fraud and
ensure compliance with applicable regulations and policies. They also help ensure the accuracy of
reports. Audits are an essential part of a company's efficiency..
2. In taxation, it is an employee of the tax collection agency who reviews the reports of an individual
or company to see if all income, deductions, and/or credits reported accurately reflect reality. This is
done to ensure that each individual or company pays his/her/its full tax liability. Audits are
conducted on a random basis, or when something appears remiss on a tax return.
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