Professional Documents
Culture Documents
Vocabulary - Financial Problems
Vocabulary - Financial Problems
1. fraud
Geoff Parker persuaded several people to invest substantial sums of money in a company
which didn't exist. He then took the money and disappeared.
2. identity theft
Jane Jackson looked at her bank statement, and found that somebody had used her bank
details to pay for 1,000 litres of diesel fuel in Moscow. She has never been to Russia.
3. cappital flight
The democratically elected president of the country was deposed in a military coup. Many
investors withdrew their capital in order to deposit it in other countries.
4. foreclosure
Lemon Industries borrowed money to buy a new factory. They have been unable to repay
the loan. The factory was the security for the loan, and the bank is now going to take
possession of it and sell it to recover the debt.
5. conflict of interests
Susan Green is a scientist. She has been appointed by the government to investigate any
health risks connected with fizzy drinks. However, she also regularly works as a
consultant for ColaCo, a major fizzy drinks manufacturer.
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6. money laudering
A criminal gang used money from drug-dealing to buy antiques for cash, which they then
sold at public auction.
7. embezzlement
Until she was discovered, Tina Edwards managed to steal £100,000 from the pension fund
she was managing.
8. insolvency
Turkey Trading owe large sums of money to several creditors. There is virtually no
chance that they will be able to repay these debts, and the company will probably go into
liquidation.
9. undercapitalism
Shootemup is a developer of computer games. Producing new computer games is
expensive, and they don't have enough money to bring out new games as often as their
competitors.
12. forgery
Using some special paper and a colour photocopier, Henry Black has been making
counterfeit 100 euro notes in his garden shed.