Corporate crime.

1.
Price fixing – keeping prices at a certain level by secrete agreement
between competitors.

False advertising – marketing that gives incorrect information about the

nature, characteristics, qualities or geographic origin of a product or
service.

Insider dealing – using confidential information about a company to buy or

sell its shares.

Tax evasion – illegally paying less taxes than you should pay.

Embezzlement – stealing company money that you were trusted with.

Commercial bribery – giving money to an employee of your potential buyer

to secure an advantage over your business competitors.

Industrial espionage – stealing trade secrets by copying or recording

confidential information for use by a competitor.

Copyright infringement - reproducing, distribution, displaying or

performing something without a permission from the creator.

Punishments.

2.
Punishments from 1 (most lenient”снисходительного”) to 5 (most
severe”тяжелого”)

1 – an immediate dismissal(немедленное увольнение); 2 – a heavy

fine(тяжелый штраф); 3 – a compensation order(порядок компенсации); 4
– a prison sentence(тюремное заключение); 5 – life
imprisonment(пожизненное заключение).
Corporate scandals.

3.
1) An operation that pays returns to its investors from existing capital or new
capital paid by new investors, rather than from profit earned by the individual or
organization running the operation – A Ponzi scheme.

2) Illegally obtain money from someone – defraud(выманивать).

3) The crime of altering or falsifying accounting records to improve a company’s

finance – accounting fraud(бухгалтерское мошенничество).

4) Declare legally that you cannot pay your debts to get legal protection from
creditors – file for bankruptcy(подать на банкротство).

5) Increase the value of things that the company owns – inflate the
company’s assets(раздувать активы компании).

6) State that you are unable to pay your debts - declare insolvency
(объявлять несостоятельным).

7) A trader who acts independently and without authorization – rogue

trader(аферист).

8) Hide a serious mistake or crime – cover up(покрывать).

9) Secretly and dishonestly moving company money into a different location –

diverting company funds(отвлечение средств компании).

10) The crime of moving and transferring illegal money to make it seem legal –
money laundering(отмывание денег).

Insurance. Insurance words etc.

4.
Insurance – is risk management tool that limits financial loss due to
illness, injury, or damage in exchange for a premium.

A claim – a demand for money from an insurance company.

A premium – an amount to be paid for an insurance contract.

A broker[1] – a person who sells insurance from different insurance

companies and earns a commission.
A policy – a document detailing the terms and conditions of an insurance
contract.

Theft – the action of a crime of stealing.

A payout – a large payment of money, especially as compensation.

Damage – physical harm to something, which reduces its value or

usefulness.

Coverage – protection provided against risks.

A deductible – the amount you have to pay out-of-pocket for expenses

before the insurance company will cover the remaining costs.

Broker[2] – will advise you about different companies and their policies.

Policy holder – pays the premiums and has the rights to make claims.

Third party – receives insurance protection from someone else who has
purchased an insurance policy.

An underwriter – evaluates the risks of insuring a particular person and

uses the information to set premium pricing.

A claimant – makes a claim with an insurance company

A loss adjuster – assesses the amount of compensation that should be

paid after a person has made an insurance claim.

Mortgages – is a debt instrument, secured by the collateral of specified

real estate property, that the borrower is obliged to pay back with a
predetermined set of payments. Mortgages are used by individuals and
businesses to make large.

3 criteria of MORTGAGES APPROVAL

1. Income:

 Debt to Income ratio (DTI)

 Disposable income
 Job Security

2. Credit History:

 Poor repayment history

 Outstanding debt
 Collection/Bankruptcy
 Length of History
3. Equity Position:

 Equity is the difference between the market value of your home

and the amount you owe to the lender on the Mortgage.
 Higher the Equity Position – the lower risk/the more money you
put into the transaction the better investment you are for the
Bank.

Business Idioms

5.

1. He really blew it.

failed to take advantage of an opportunity by doing or saying something wrong

2. bombed abroad.
failed

3. bullish
confident, optimistic (waiting for price increase)

4. bearish
rude, clumsy (waiting for price decrease)

5. calls the shots.

is in the position of being able to make the decisions that will influence a
situation

6. to cook the books.

alter facts or figures dishonestly or illegally

7. Rachel runs a tight ship.

controls a business firmly and effectively

8. drives a hard bargain.

expects a lot in exchange for something

9. make a killing.
have great financial success

a) an uphill battle - difficult to achieve because of obstacles and

difficulties
b) the big picture - everything that is involved with a particular situation
c) in the loop - part of a select group with knowledge that others do not
have
 d) small talk - conversation about unimportant topics that do not offend
people
e) up in the air – undecided

1. by the book.
100% according to the rules

2. we came up short.
failed to achieve a goal completely

3. cornered the market.

dominated a particular sector

4. get the ball rolling

start something (usually a work project)

5. get a foot in the door.

take a low-level position with a company with the goal of eventually getting a
better position with the same company in the future

6. went through the roof.

increased very quickly

7. close the books

stop taking orders in order to end a bookkeeping period

8. give us the green light

give (someone) permission to start doing something

a) in the red – not profitable, operating at a loss

b) red tape - excessive rules and procedures
c) a grey area - not easily categorised
d) a long shot – something that has a low probability of happening
e) a safe bet - something that will probably happen

f) in the black – turning a profit, and not in debt.

1. causing a bottleneck in our production.

creating an obstacle or delay in progress or production

2. the bottom line.

net income or loss

3. break the ice.

make someone who you have not met before feel more relaxed
4. get on board.
agree or accept something

5. across the board.

everywhere, applying to everybody

6. Let's call it a day

finish for today

7. cut our losses.

stop doing something that is already failing in order to reduce the amount of
time or money that is being wasted on it

8. cut corners.
save money or effort by finding cheaper or easier ways to do something

 take somebody on board - employ someone

 a can of worms - a source of many unpredictable and complicated
problems
 close a deal - complete a negotiation
 breathe down someone's neck - watch someone's activities very
closely
 keep a cool head - stay calm

1. produce something (especially an idea) - come up with

2. become successful - work out

3. make progress - push forward

4. begin as one thing and develop into something else - start out

5. to allow a house or room that you own to be used by someone who pays you
regularly for using it - rent out

6. be the main factor in something - account for

Dollar Cost Averaging is buying an equal amount of the same stock at

equal intervals.
 Invest $100 in e-bay every month. The price you pay for the stock
averages out over time.
Mutual Funds
 An investment that pools money from several investors to buy a
particular type of investment, such as stocks.
Bonds
 A bond is a fixed income instrument that represents a loan made by
an investor to a borrower.
Stocks
 An investment that represents ownership in a company or
corporation.

Real Estate

 An investor buys pieces of property, such as land or a building, in

hopes of generating a profit.
Types of Insurance
 Property Insurance - (protection from financial loss when things you
own are stolen, damaged, or destroyed)
 Liability Insurance - (protects you from loss that you cause others)
 Personal Insurance - Health and Life (protects you and your family from
loss due to illness, disability, or death)

How to reduce premium and keep the average:

 Have a good driving record 
 Choose a less expensive car 
 Good grades and 
 driver’s education training.

Obligation
 is - to pay money to another party, it also called liability.

Default
 inability to pay debt obligations.
Foreclosure
 Depvrivation of rights to repurchase mortgage.

Savings/Certificates of Deposits
 A deposit that earns a fixed interest rate for a specified length of
time.
Collectibles:
 Unique items that are relatively rare or highly valued.
-Art work
-Coins
-Automobiles
-Antiques
Annual report
 A document that detailing activity of a company over the
previous year. (containing an income statement, cash flow
statement, and balance sheet.)
Beneficiary

 is a person who receives benefit from a particular

person(entity).

Subprime Mortgage
 giving loans to people who may have difficulties with the
repayment schedule (sometimes reflecting failures such as
unemployment, divorce, emergency conditions, etc.).

Recession
 A period of temporary economic decline during which trade
and industrial activity are reduced. (generally identified by a fall
in GDP in two successive quarters)
Incentive
 What motivates you to behave in a certain way. (needs, wants
and desires.)

Credit Default Swap

 is a financial swap agreement that the seller of the CDS will

compensate the buyer in the event of a debt default or other credit
event.

Prospectus
 A formal written offer to sell securities that sets forth a plan for
a proposed business enterprise. A prospectus should contain the
facts that an investor needs.
Credit Test.

6.
1. Please list in order from most important to least important, the 5
factors for Successful Startups by Bill Gross:
1) timing
2) team/execution
3) idea
4) business model
5) funding

2. In your own words, describe financial terms below:

a. Credit Rating Agency - measure of a person’s creditworthiness

(credit scoring), company, region or country.
b. Diversification - is spreading your assets among different types of
investments to reduce risk.

3. List four of the investment strategies:

Core: low risk
Core+: low to moderate risk
Value-added: moderate to high risk
Opportunistic: high risk
(Не знаю правильно это или нет)

4. Difference between an actuary and a policy holder:

Actuary - a person with advanced math training that calculates the risks
based on loss percentages and determines insurance rates and premiums.
Policy holder - what you become when you buy insurance.

5.
 Industrial espionage - stealing trade secrets by copying or
recording confidential information for use by a competitor.
 Copyright infringement - reproducing, distribution, displaying
or performing something without a permission from the
creator.
 Accounting fraud - the crime of altering or falsifying
accounting records to improve a company’s finance.
6.
 Premium – regular payment you make to an insurance company 
 Policy – legal contract you sign when you buy insurance 
 Policy holder – what you become when you buy insurance 
 Claim – formal request for payment from an insurance company 
 Risk - the chance that you will suffer a financial loss

7. Tests:
1) A document detailing the terms and conditions of an insurance
contract:
a) A policy (correct)
b) A premium
c) Theft
d) None of the above
2) Physical harm to something, which reduces its value or
usefulness is:
a) A deductible
b) A claim
c) Coverage
d) None of the above
Damage (correct) должен быть, если нет, то ответ (d)
3) A person who selling insurance from different insurance
companies and earns a commission is:
a) A broker (correct)
b) A Director
c) Manager
d) None of the above
4) What means “can of worms”?
a) Complete negotiation
b) Employ someone
c) A source of many unpredictable and complicated problems.
(correct)
d) None of the above.
5) Which expression can be used to define that “watch someone’s
activities very closely”?
a) Take somebody on board
b) Close a deal
c) Breath down someone’s neck (correct)
d) None of the above
6) “Last month was incredible! Our sales________.
 a) Dominated a particular sector
b) Close the book
c) Went through the roof (correct)
d) None of the above

7) What means “to blow something”?

a) To fail to take advantage of an opportunity by doing or saying
something wrong (correct)
b) To alter facts or figures dishonestly or illegally
c) To be in position of being able to make decisions that will influence
a situation
d) None of the above.
8) Which idiomatic expression means “to control a business firmly
and effectively”?
a) To call the shots
b) Runs a tight ship (correct)
c) – (dunno)
d) – (dunno)