Economy and Business Terms - Charlie, your teacher of English
to customers. Revenue is also referred to as sales or turnover. Some companies receive revenue
from interest, royalties, or other fees. Revenue may refer to business income in general, or it may
refer to the amount, in a monetary unit, received during a period of time, as in "Last year, Company
X had revenue of $42 million." Profits or net income generally imply total revenue minus total
expenses in a given period. In accounting, revenue is often referred to as the "top line" due to its
position on the income statement at the very top.
Underwriter (insurance): A person who examines a risk, decides whether it can be insured, and if
so for how much.
'An Insurance Underwriter' is a financial professional that evaluates the risks of insuring a particular
person or asset and uses that information to set premium pricing for insurance policies. Insurance
underwriters are employed by insurance companies to help price life insurance, health insurance,
property/casualty insurance and homeowners insurance, among others.
Underwriters use computer programs and actuarial data to determine the likelihood and magnitude
of a payout over the life of the policy. Higher-risk individuals and assets will have to pay more in
premiums to receive the same level of protection as a (perceived) lower-risk person or asset.
Unemployment: Unemployment occurs when people are without work and actively seeking work.
The unemployment rate is a measure of the prevalence of unemployment and it is calculated as a
percentage by dividing the number of unemployed individuals by all individuals currently in the labor
force. During periods of recession, an economy usually experiences a relatively high unemployment
rate. According to International Labor Organization report, more than 200 million people globally or
6% of the world's workforce were without a job in 2012.
Underwriting: Underwriting is the process by which investment bankers raise investment capital
from investors on behalf of corporations and governments that are issuing either equity or debt
securities. The word "underwriter" originally came from the practice of having each risk-taker write
his name under the total amount of risk he was willing to accept at a specified premium. This
centuries-old practice continues, in a way, as new issues are usually brought to market by an
underwriting syndicate, in which each firm takes the responsibility, as well as the risk, of selling its
specific allotment.
Value added tax (VAT): VAT at 17.5%, or more in other countries, is normally included in the price
of the goods or services you buy, although some goods do not attract VAT. Some goods are zerorated, including food, books, newspapers and magazines, children's clothes and equipment for
disabled people. On some other goods - including children's car seats and domestic fuel or power you pay a reduced rate of 5%.
Warranty: It is a guarantee that the manufacturer of a product will repair damage or defects for free
for a certain period of time. For example, a computer often comes with a warranty for a year. If the
computer breaks in the first year of ownership, the manufacturer will repair or replace it without cost
to the computer owner. Most warranties are limited warranties, meaning that there is a maximum
amount the manufacturer will pay for repairs and/or that certain damage is not covered by the
warranty. For example, a warranty on a computer generally does not cover water damage. Some
warranties come with a product while others are purchased separately. Often, one may purchase an
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