Business Word/Phrase of the Day

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STATISTICS stəˈtɪstɪks

30 Mar 2020


  • numerical facts or data.
Example Sentence: Recent statistics have shown an increase in the test subject’s reaction time.

INCENTIVE ɪnˈsɛntɪv

29 Mar 2020


  • something which encourages somebody to do something.
Example Sentence: The tax incentives are aimed at attracting more foreign business.

REMORTGAGE reɪmɔrgɪdʒ

28 Mar 2020


  • arrange a second mortgage (= an agreement with a bank or similar organization in which you borrow money to buy property), or increase the first mortgage, especially in order to obtain more money.
Example Sentence: In order to raise funds to pay off my debts, I’ve had to remortgage my apartment.

MORTGAGE mɔrgɪdʒ

27 Mar 2020


  • An agreement which allows you to borrow money from a bank or similar organization, especially in order to buy a house or an apartment.
Example Sentence: Banks are now being a lot more cautious about who they lend money to. It’s getting much more difficult to arrange a mortgage on a property.


26 Mar 2020


  • profit (or loss) on an investment, often expressed as a percentage.
Example Sentence: I initially invested $50,000 in the company. In the past 5 years, the company has paid me $150,000 in profit share. That’s what I call an excellent return on investment.

HEDGE FUNDS hɛdʒ fʌnd

25 Mar 2020


  • Hedge funds are speculative funds which make large bets on market movements. They utilize borrowed money to substantially leverage their returns (and losses), often at a factor of ten to one, or more. They purchase exotic securities and also take substantial short positions when they think the market or a particular sector of the market will go down.
Example Sentence: Hedge funds are extremely risky and are suitable for high-wealth investors only.

CASH RICH kæʃ rɪtʃ

24 Mar 2020


  • describes someone who has most of the wealth in cash.
Example Sentence: I keep all my money in the bank in a high-interest account. I consider myself to be cash rich.

NET WORTH /nɛt/ /wɜrθ/

23 Mar 2020


  • Net Worth is the value of a person’s assets, including cash, minus total liabilities. It is often used as an underwriting guideline to indicate an individual's creditworthiness and financial strength.
Example Sentences:He may appear to be rich, but his net worth is quite small, actually. He has 95% mortgages on most of his properties.
Bill Gates’ net worth increased dramatically over the past year due to the good performance of Microsoft’s shares.

INDIRECT TAXATION ɪndəˈrɛkt, tækˈseɪʃən

22 Mar 2020


  • includes taxes which are levied in an indirect way rather than being charged directly on an individual's income or estate.
Example Sentences: Tax on products, such as cigarettes, alcohol and petrol, is also a form of indirect taxation.
High indirect taxation tends to hit the poor far more than the rich.

DIRECT TAXATION dɪˈrɛkt tækˈseɪʃən

21 Mar 2020


  • includes taxes which are imposed directly on the individual paying them.
Example Sentences: Examples of direct taxation are income tax, capital gains tax and inheritance tax.
High direct taxation hits the rich hard.

TAX YEAR tæks yɪər

20 Mar 2020


  • The calendar year or fiscal period for which income tax is to be paid.
Example Sentence: In Hong Kong the tax year ends on 31 March.

TAX RETURN tæks rɪˈtɜrn

19 Mar 2020


  • Is a form on which certain tax payers annually list their salary (including pensions), or income from self employment together with benefits in kind, other income and capital gains.
Example Sentence: Don’t forget to get your tax return in by the end of the month. There’s a penalty if you send it in late.

TAX RELIEF tæks rɪˈlif

18 Mar 2020


  • Are amounts which you can deduct from your annual income to reduce the amount on which you have to pay tax.
Example Sentences: Tax relief that can be claimed in connection with employment includes travel expenses necessary for you to carry out your work and for which the employer does not pay.
I claimed tax relief on my Hong Kong business trip.

TAX HAVEN tæks heɪvən

17 Mar 2020


  • Is a country where companies or individuals may legally take advantage of lower taxation levels.
Example Sentence: Well-known tax havens include: Bermuda, British Virgin Islands, Gibraltar and the Isle of Man.

TAX EXILE tæks ɛksaɪl

16 Mar 2020


  • Is a wealthy person who lives outside his/her own country in order to minimise the tax they owe.
Example Sentence: Many wealthy people prefer to move to other countries and become tax exiles than reside in their birth countries where the tax rates are high.
Sean Connery is perhaps Scotland’s most famous tax exile.