Limba Engleza Anul II, Curs

UNIVERSITATEA CRETIN DIMITRIE CANTEMIR
FACULTATEA DE FINANE, BNCI I CONTABILITATE BRAOV
d a e .C n s u an tu a l d te iu m ir
BUSINESS ENGLISH COMMUNICATION
- Manual de studiu individual -
Cristina PIPO
Cristina PIPO
UNIVERSITATEA CRETIN DIMITRIE CANTEMIR FACULTATEA DE FINANE, BNCI I CONTABILITATE - BRAOV
MANUAL DE STUDIU INDIVIDUAL
BRAOV 2011
CUPRINS
INTRODUCTION
MEETINGS
1.1. INTRODUCTION 1.2. THE OBJECTIVES OF THE UNIT 1.3. THE CONTENT OF THE UNIT 1.4. SELF-ASSESSMENT GUIDE PASSIVE VOICE
2.1. INTRODUCTION 2.2. THE OBJECTIVES OF THE UNIT 2.3. THE CONTENT OF THE UNIT 2.4. SELF-ASSESSMENT GUIDE TELEPHONING
3.1. INTRODUCTION 3.2. THE OBJECTIVES OF THE UNIT 3.3. THE CONTENT OF THE UNIT 3.4. SELF-ASSESSMENT GUIDE MODAL VERBS
4.1. INTRODUCTION 4.2. THE OBJECTIVES OF THE UNIT 4.3. THE CONTENT OF THE UNIT 1.4. SELF-ASSESSMENT GUIDE ADVERTISING
5.1. INTRODUCTION 5.2. THE OBJECTIVES OF THE UNIT 5.3. THE CONTENT OF THE UNIT 5.4. SELF-ASSESSMENT GUIDE THE CONDITIONAL SENTENCE
6.1. INTRODUCTION 6.2. THE OBJECTIVES OF THE UNIT 6.3. THE CONTENT OF THE UNIT 6.4. SELF-ASSESSMENT GUIDE i
1 1 1 2 3 7 7 7 8 9 12 12 12 13 15 19 19 19 20 22 25 25 25 26 27 30 30 30 31 33

MARKETING 7.1. INTRODUCTION 7.2. THE OBJECTIVES OF THE UNIT 7.3. THE CONTENT OF THE UNIT 7.4. SELF-ASSESSMENT GUIDE PREPOSITIONS 36 36 36 37 38 41
8.1. INTRODUCTION 8.2. THE OBJECTIVES OF THE UNIT 8.3. THE CONTENT OF THE UNIT 8.4. SELF-ASSESSMENT GUIDE NEGOTIATIONS
9.1. INTRODUCTION 9.2. THE OBJECTIVES OF THE UNIT 9.3. THE CONTENT OF THE UNIT 9.4. SELF-ASSESSMENT GUIDE FINANCE
10.1. INTRODUCTION 10.2. THE OBJECTIVES OF THE UNIT 10.3. THE CONTENT OF THE UNIT 10.4. SELF-ASSESSMENT GUIDE FINANCIAL PLANNING
11.1. INTRODUCTION 11.2. THE OBJECTIVES OF THE UNIT 11.3. THE CONTENT OF THE UNIT 11.4. SELF-ASSESSMENT GUIDE FINANCE
12.1. INTRODUCTION 12.2. THE OBJECTIVES OF THE UNIT 12.3. THE CONTENT OF THE UNIT 12.4. SELF-ASSESSMENT GUIDE THE SEQUENCE OF TENSES
13.1. INTRODUCTION 13.2. THE OBJECTIVES OF THE UNIT 13.3. THE CONTENT OF THE UNIT 13.4. SELF-ASSESSMENT GUIDE
41 41 42 43 46 46 46 47 48 52 52 52 53 57 59 59 59 60 61 66 66 66 67 67 LXX
LXX LXX LXXI LXXII
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CUPRINS
REVIEW 14.1. INTRODUCTION 14.2. THE OBJECTIVES OF THE UNIT 14.3. THE CONTENT OF THE UNIT 14.4. SELF-ASSESSMENT GUIDE ACCOUNTANCY 75 75 75 76 77 80 80 80 81 84 87 87 87 88 92 95 95 95 96 97 99
15.1. INTRODUCTION 15. THE OBJECTIVES OF THE UNIT 14.3. THE CONTENT OF THE UNIT 14.4. SELF-ASSESSMENT GUIDE FINANCIAL STATEMENTS
PRICING
17.1. INTRODUCTION 17.2. THE OBJECTIVES OF THE UNIT 17.3. THE CONTENT OF THE UNIT 17.4. SELF-ASSESSMENT GUIDE INVESTMENTS
18.1. INTRODUCTION 18.2. THE OBJECTIVES OF THE UNIT 18.3. THE CONTENT OF THE UNIT 18.4. SELF-ASSESSMENT GUIDE BUDGETING
19.1. INTRODUCTION 19.2. THE OBJECTIVES OF THE UNIT 19.3. THE CONTENT OF THE UNIT 19.4. SELF-ASSESSMENT GUIDE REPORTED SPEECH
20.1. INTRODUCTION 20.2. THE OBJECTIVES OF THE UNIT 20.3. THE CONTENT OF THE UNIT 20.4. SELF-ASSESSMENT GUIDE iii
99 99 100 102 105 105 105 106 107 109 109 109 110 111

STOCK MARKET 21.1. INTRODUCTION 21.2. THE OBJECTIVES OF THE UNIT 21.3. THE CONTENT OF THE UNIT 21.4. SELF-ASSESSMENT GUIDE BUSINESS RISKS 114 114 114 115 118 120
22.1. INTRODUCTION 22.2. THE OBJECTIVES OF THE UNIT 22.3. THE CONTENT OF THE UNIT 22.4. SELF-ASSESSMENT GUIDE COMPUTERS AND COMMERCE
23.1. INTRODUCTION 23.2. THE OBJECTIVES OF THE UNIT 23.3. THE CONTENT OF THE UNIT 23.4. SELF-ASSESSMENT GUIDE COMPANIES AND THEIR BANKS
24.1. INTRODUCTION 24.2. THE OBJECTIVES OF THE UNIT 24.3. THE CONTENT OF THE UNIT 24.4. SELF-ASSESSMENT GUIDE GLOBAL INFORMATION
120 120 121 122 126 126 126 127 128 130 130 130 131 132 134 134 134 135 137 iv
INTRODUCTION
INTRODUCTION
Disciplina Comunicare de afaceri n limba englez este necesar studenilor aflai n anul al II-lea de studiu deoarece aduce infirmaii deosebit de utile pentru realizarea n cadrul firmei i ntre firme a unei relaii profesioniste de afaceri. Obiectivele cursului
Cursul i propune prezentarea unor elemente teroetice dar si a elemntelor practice, aplicative necesare comunicrii ct mai clare i mai simple la nivelul dezovoltrii i ntreineri comunicrii de afaceri.
Dup parcurgerea acestui curs, studentul va dobndi urmtoarele competene generale i specifice: 1. Cunoatere i nelegere (cunoaterea i utilizarea adecvat a noiunilor specifice disciplinei) identificarea de termeni, relaii, procese, perceperea unor relaii i conexiuni n cadrul disciplinelor economice; utilizarea corect a termenilor de specialitate din domeniul economic; definirea / nominalizarea de concepte ce apar n activitatea de coresponden de afaceri; capacitatea de adaptare la noi situaii aprute pe parcursul activitii de comunicare de afaceri internaional relaiilor ntre firme 2. Explicare i interpretare (explicarea i interpretarea unor idei, proiecte, procese, precum i a coninuturilor teoretice i practice ale disciplinei) generalizarea, particularizarea, integrarea elementelor teroetice n comunicarea de afaceri realizarea de conexiuni ntre elementele funciilor comunicrii de afaceri; argumentarea unor enunuri n faa partenerilor de afaceri, anagajailor; capacitatea de organizare i planificare a activitailor specific comunicrii de afaceri; capactitatea de analiz i sintez n procesul de comunicare. 3. Instrumental-aplicative (proiectarea, conducerea i evaluarea activitilor practice specifice; utilizarea unor metode, tehnici i instrumente de investigare i de aplicare) relaionri ntre elementele ce caracterizeaz activitile de cmunicarea de afaceri; descrierea unor stri, sisteme, procese, fenomene ce apar pe parcursul activitii de comunicare de afaceri; capacitatea de a transpune n practic cunotiinele dobndite n cadrul cursului; abiliti de cercetare, creativitate n domeniul comunicrii de afaceri; capacitatea de a concepe proiecte i de a le derula activiti de comunicare de afaceri; capacitatea de a soluiona probleme aprute pe parcusul comunicrii de afaceri
Competene conferite
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BUSINESS ENGLISH COMMUNICATION 4. Atitudinale (manifestarea unei atitudini pozitive i responsabile fa de domeniul tiinific / cultivarea unui mediu tiinific centrat pe valori i relaii democratice / promovarea unui sistem de valori culturale, morale i civice / valorificarea optim i creativ a propriului potenial n activitile tiinifice / implicarea n dezvoltarea instituional i n promovarea inovaiilor tiinifice / angajarea n relaii de parteneriat cu alte persoane / instituii cu responsabiliti similare / participarea la propria dezvoltare profesional ) reacia pozitiv la sugestii, cerine, sarcini didactice, satisfacia de a rspunde la ntrebrile clienilor; implicarea n activiti tiinifice n legtur cu disciplina comunicare de afaceri; acceptarea unei valori atribuite unui obiect, fenomen, comportament, etc. conform legislaiei n vigoare; capacitatea de a avea un comportament etic n faa partenerilor de afaceri, angajailor; capacitatea de a aprecia diversitatea i multiculturalitatea analizei probelor; abilitatea de a colabora cu specialitii din alte domenii. Resurse i mijloace de lucru
Cursul dispune de manual scris, supus studiului individual al studenilor, precum i de material publicat pe Internet sub form de sinteze, teste de autoevaluare, studii de caz, aplicaii, necesare ntregirii cunotinelor practice i teoretice n domeniul studiat. n timpul convocrilor, n prezentarea cursului sunt folosite echipamente audio-vizuale, metode interactive i participative de antrenare a studenilor pentru conceptualizarea i vizualizarea practic a noiunilor predate. Activiti tutoriale se pot desfura dup urmtorul plan tematic, conform programului fiecrei grupe:
Structura cursului
Cursul este compus din 25 uniti de nvare: Unitatea de nvare 1. Unitatea de nvare 2. Unitatea de nvare 3. Unitatea de nvare 4. Unitatea de nvare 5. Unitatea de nvare 6. Unitatea de nvare 7. Unitatea de nvare 8. Unitatea de nvare 9. Unitatea de MEETINGS
PASSIVE VOICE TELEPHONING MODAL VERBS ADVERTISING THE CONDITIONAL SENTENCE MARKETING PREPOSITIONS NEGOTIATIONS FINANCE
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INTRODUCTION nvare 10. Unitatea de nvare 11. Unitatea de nvare 12. Unitatea de nvare 13. Unitatea de nvare 14. Unitatea de nvare 15. Unitatea de nvare 16. Unitatea de nvare 17. Unitatea de nvare 18. Unitatea de nvare 19. Unitatea de nvare 20. Unitatea de nvare 21. Unitatea de nvare 22. Unitatea de nvare 23. Unitatea de nvare 24. Unitatea de nvare 25.
FINANCIAL PLANNING FINANCE THE SEQUENCE OF TENSES
Teme de control (TC)
Desfurarea temelor de control se va derula conform calendarului disciplinei i acestea vor avea urmtoarele subiecte: 1. Elaborarea unei scurte prezentri pe baza temelor dicutate 2. Traducerea unui text relevant studierii limbii engleze Bibliografie obligatorie:
Mascul Bill, Business Vocabulary in Use, Cambridge University Press, 2002 Trappe Tonya, Tullis Graham, Intelligent Business, coursebook, Intermediate Business, Pearson Education, 2005 Cotton Davis, Falvey David, Kent Simon, Market Leader, Business English coursebook, Pearson Education, 2006
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REVIEW ACCOUNTANCY FINANCIAL STATEMENTS PRICING INVESTMENTS BUDGETING REPORTED SPEECH STOCK MARKET BUSINESS RISKS COMPUTERS AND COMMERCE COMPANIES AND THEIR BANKS GLOBAL INFORMATION
Metoda de evaluare: Examenul final se susine sub form scris, la el adgndu-se activitatea studentului la seminar Simbolurile utilizate:
Introducere Obiectivele unitii de nvare Timpul alocat unitii de nvare: Coninutul unitii de nvare Exemple ndrumar pentru autoverificare Teste de evaluare/autoevaluare
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UNIT 1
1.1. INTRODUCTION 1.2. THE OBJECTIVES OF THE UNIT TIME ALLOCATED 1.3. MEETINGS 1.4. SELF-ASSESSMENT GUIDE
In business communication meetings are really important in establishing correct business relationships
Meetings vocabulary Types of meetings Pointing a chairperson Points of view Make meetings work for you
MEETINGS 1.1. INTRODUCTION 1.2. THE OBJECTIVES OF THE UNIT The time allocated for the unit: hours 2
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UNIT 1 MEETINGS
1.3. THE CONTENT OF THE UNIT
Step 1
Be punctual. Always arrive on time to a business meeting so that you don't waste other people's time while they sit and wait for you to arrive. Don't arrive too early -- a few minutes is ideal, but much more than that cuts into other people's ability to prepare for the meeting and makes everyone uncomfortable. If you are early, find something else to do such as getting a drink of water, fixing your hair or washing your hands in cold water so they won't be sweaty when shaking hands. Step 2
Dress appropriately -- a notch above the average workplace attire. If you are meeting with representatives from other organizations, a formal business suit in dark colors is appropriate unless it is significantly outside the industry norms. Select a plain or pin-striped shirt; men should wear a coordinating tie. Present a neat, clean appearance with freshly shined shoes, pressed clothing and clean, trimmed nails. Step 3 Make small talk and put others at ease before the meeting starts. Introduce yourself to the other participants. Listen attentively to the conversation -- don't check your emails or chew gum -- and pay attention to personal details that, over time, can help you build a long-term relationship with the other attendees. Step 4 Conduct research in advance. Review business materials and internet information to discover the company's recent
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Any small business entrepreneur knows that growing the business relies on much more than just a good idea. No matter how good the product is, if you don't make a good impression at the first business meeting, you could lose a potential new backer or crucial business partnership. Employees new to the business face similar issues when attending a company business meeting for the first time. Managing your image and keeping abreast of common business etiquette is a skill that all employees should master, regardless of where each individual is in his career.
How to Make a Good Impression at a First Business Meeting
BUSINESS ENGLISH COMMUNICATION accomplishments, new initiatives and key projects. Prepare one or two key questions and objectives in advance that you hope to cover during the meeting.
Strike the right balance -- make relevant contributions but avoid talking too much. Don't interrupt other people when they are talking. Avoid conflict -- a business meeting with others is not the appropriate place to resolve personal disagreements. Keep your interactions professional, on target and to the point. Don't engage in meandering discussion or get side-tracked on a tangent. If you called the meeting, create an agenda and stick to it, politely redirecting other participants if they get too far off topic. (http://smallbusiness.chron.com)
Types of meetings
Chat Brainstorming Meeting with suppliers Board meeting Project meeting
Departmental meeting AGM (annual general meeting) EGM (extraordinary general meeting) Set up
Arrange Fix
Bring forward Put back
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Postpone
1.4. SELF-ASSESSMENT GUIDE A meeting A meeting A meeting A meeting A meeting A meeting
Step 5
UNIT 1 MEETINGS Cancel Run Chair A meeting A meeting A meeting
Attend
Miss
Opening a meeting
Ok lets get started. Its about time we got started. Lets begin, shall we? Shall we make a start? Lets make a start? Lets get down to business.
INVITING PEOPLE TO SPEAK Would you like to open the discussion? Perhaps youd like to get the ball rolling Would you like to kick off? What are your views on this? Whats the general feeling of this?
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A meeting A meeting
BUSINESS ENGLISH COMMUNICATION MAKING YOUR POINT I believe As I see it In my opinion Of course The way I see it I think Personally I believe
Make meetings work for you
Only call a meeting when is needed Dont forget to circulate memos before the meeting Ask for only six people to attend the meeting, too many people wont make your meeting more successful Take decisions Ask the quiet people to speak Dont talk more than necessary When participating in a meeting, dont memorize what you have to say. It will be very boring for the others Use your body language and make eye contact Arrive early and if youre late dont sneak in Do not come unprepared to the meeting
Organize a short meeting. Say how you prepare for the meeting, the people you invite, how you start the meeting, what you do during the meeting, how do you finish the meeting? What is in your opinion the importance of a chairperson in a meeting. Have you ever been a chairperson, would you consider being one? What skills should a chairperson have? How important is it to express your views?
In your opinion, is essential to make your point in a meeting? Why? Are there any rules about taking turns to speak in a meeting? Do you know any?
ASSESSMENT/ SELF-ASSESSMENT TESTS
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UNIT 1 MEETINGS BIBLIOGRAPHY: Mascul Bill, Business Vocabulary in Use, Cambridge University Press, 2002 Trappe Tonya, Tullis Graham, Intelligent Business, coursebook, Intermediate Business, Pearson Education, 2005 Cotton Davis, Falvey David, Kent Simon, Market Leader, Business English coursebook, Pearson Education, 2006
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UNIT 2
2.1. INTRODUCTION 2.2. THE OBJECTIVES OF THE UNIT TIME ALLOCATED 2.3. PASSIVE VOICE 2.4. SELF-ASSESSMENT GUIDE
The Passive Voice is very useful in describing actions and events of people reflected on objects and other peoples actions
The study of the Passive Voice The use of the Passive Voice Rules of Formation
PASSIVE VOICE 2.1. INTRODUCTION 2.2. THE OBJECTIVES OF THE UNIT The time allocated for the unit: hours 2
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UNIT 2 PASSIVE VOICE
To be + past participle The shares were bought by the new investors Passive +Modal The products can be shipped to your office.
THE PASSIVE VOICE SHOWS THAT THE SUBJECT OF THE SENTENCE DOES NOT PERFORM THE ACTION, THIS BEING PERFORMED BY AN AGENT (THE LOGICAL SUBJECT OF THE SENTENCE) Diateza pasiv arat c subiectul propoziiei nu realizeaz aciunea, aceasta fiind realizat de complementul de agent (subiectul logic al propoziiei). To emphasize the action and not the person who performs the action The clock was moved. To focus on the information that is offered to the listener The issue was solved. To focus on the procedure and not the person who is caring it out The house is made of steel. To write in formal / official style The sale was confirmed. It + verb It was agreed to increase the capital. To report unconfirmed information He is believed to try and buy our company.
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THE SUBJECT BECOMES THE OBJECT AND THE OBJECT BECOMES THE SUBJECT I bought a plant The plant was bought by me
2.4. SELF-ASSESSMENT GUIDE
Present continuous
Future
Past simple
Past continuous
Present perfect
Past perfect
Infinitive
They are seeing it It is being seen They will see it It will be seen They saw it It was seen They were seeing it It was being seen They have seen it It has been seen They had seen it It had been seen To eat To be eaten
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Present simple
They see it
It is seen.
UNIT 2 PASSIVE VOICE
The door can be locked now. It might . while we were on holiday. The wedding is already over budget. Less money should .. on flowers. The baby had only two moths and couldnt walk. He had to .. all the way. We still dont know who solved the mystery. It might by Tina. This house is in a very bad condition. It should . a long time ago. He was still sleeping when we arrived. He had to .. by us. He did not know anything before that day. He what he needed to know. We dont know who sent us the present. It might ..by George.
They had to put off all that work until later. We all heard about those who broke into your house. They gave the freedom to their slaves. They denied him the access to those files. His aunt left him an estate worth 10.000. Someone should teach that boy a lesson. They offered me a raise of my salary. They told me how badly you behaved while I was gone. Answer the following questions using the passive voice:
Do you know when and who built this house? What should someone be given when hes got flu? What causes many accidents nowadays? Who cleaned this room yesterday? What foreign languages did you learn at school?
Rewrite the sentences using the passive form of the verbs in italics:
spend solve repair fix wake up carry teach
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Complete the following sentences using one word in the box:
BUSINESS ENGLISH COMMUNICATION What opportunity would you like to have when you graduate? Did the police see the damage after the big fire? Who paid you to come and talk to me? . Rewrite the following sentences using Passive Voice:
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BIBLIOGRAPHY:
This autumn The Hippodrome brings a glittering collection of hit shows. The theatre plans many other events. The Hippodrome theatre will present on the Christmas Eve the revival of the Beauty and the Beast. The art studio theatre supports the development of new works. Lewis Davies painted on our safety curtain. In the 70s music inspired fashion. David Bowies image inspired many people in that time. Bay City Rollers dominated the pop scene in Europe. The Jacksons, Diana Ross and Stevie Wonder were selling millions of records for the Motown Label. Abba won in 1974 the Eurovision Song Contest.
UNIT 3 TELEPHONING
UNIT 3
3.1. INTRODUCTION 3.2. THE OBJECTIVES OF THE UNIT TIME ALLOCATED 3.3. TELEPHONING 3.4. SELF-ASSESSMENT GUIDE
In business English understanding phone messages is crucial for the development of the business
Phone numbers Types of phones Connections Voicemail Messages Telephone information
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The time allocated for the unit: hours 2
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TELEPHONING 3.1. INTRODUCTION 3.2. THE OBJECTIVES OF THE UNIT
Telephone Etiquette
Telephone
Although several different means of communication like the email and instant chatting or messaging are used on a wide scale today, the telephone is still a part of a person's personal as well as business life. A telephone conversation is as important as the actual face-to-face conversation and hence, one needs to be very careful while making as well as answering calls on a telephone. There are some basic rules or simply dos and don'ts, known as telephone etiquette; that one needs to remember during a telephone conversation. Etiquette Tips
The following are some general tips that one should remember as they are a part of business as well as personal telephone etiquette. It is considered good manners to greet the person while making or receiving call; the simplest form of greeting is 'hello'. It is not advisable to answer calls with 'yes' as it seems rude. According to personal telephone etiquette, it is mandatory to identify yourself while making a call. Do not ever play games of 'guess who' on a telephone with a busy friend. Before handing the call to someone, ask the listener's permission before putting him on hold and thank him for it. (Do not keep a person 'on hold' for more than 1 minute). If you are the caller, have some patience when someone puts you 'on hold' as it is not always possible to find the required person on the spot. It is necessary to talk clearly and precisely with proper pauses. Also, make timely responses as 'yes' and 'okay'. It is mandatory to call someone back if you have promised. It is not advisable to call a person before 8.00 am and after 9.00 pm. If you are at the receiving end of the calls, do not hang-up until the caller does so. It is advisable to thank a person while ending the call. You can even say that you appreciated talking to him.
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UNIT 3 TELEPHONING Lastly, it is considered good manners to return telephone calls and voice messages within 24 hours. Business Telephone Etiquette In the business world, telephone conversations take place before the actual meeting and also form an important part of many business transactions and hence, it is essential to keep in mind certain things while making and receiving calls.
Making a Call It is wise to make a written note of things that you need to convey to the person before making a call, lest you forget. It is essential to identify yourself and your company first when starting the conversation. If your call was expected or planned prior, it is essential to make the listener realize that, in brief, in case he/she has forgotten. Tell the person the intention of your call in brief. If it is a receptionist, it is still advised to explain the intention of your call. When talking to the required person, talk clearly, slowly and precisely. It is embarrassing to be asked to repeat what you just said. Also, make proper and timely responses in the formal 'yes' and 'no' manner. Never use the informal way of 'yeah' and 'nope'. While ending the call, thank the person politely for his time. Examples: Good morning, this is (name) from (name of company). Please may I speak with (name). Hello, this is (name) from (name of company). I am returning call from (name), is he available? Receiving a Call As 'hello' is the proper way of starting a conversation, it is also an appropriate form of greeting the caller while receiving calls. You can even receive calls by identifying yourself and your company. It is advisable to try to answer business calls as pleasingly as possible as the tone of the voice can be easily recognizable and can make a great impression. While receiving business calls, it is advisable to pay attention and stop other activities like reading, talking to others, chewing gum, attending other calls. If inquired whether certain Mr. ABC is available or not, do not reply with a curt 'no'. The perfect answer should be 'I am sorry, Mr. ABC is not available at this time, may I take a message?'. If a person is not available, it is better to convey the
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Phones and numbers Public telephone Mobile phone Extension Webcam Pager WAP Videophone
To call someone To phone someone To telephone someone To ring someone To give someone a bell To give someone a ring Access code
00
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3.4. SELF-ASSESSMENT GUIDE Country code Area code Number 1746 875345
reason to the caller briefly. You should never hang up before the caller does so. Also, be gracious in your goodbyes as that can help in future communications. Examples: Thank you for calling (name of the company). This is (name), how may I help you? Hello, (name) speaking. (The caller's name), will you hold while I look for information/person? Thank you for calling.
UNIT 3 TELEPHONING Double oh Double four six One seven four Eight seven five three four five
Helpline Hotline Information line Reservation line
GETTING THROUGH
Dialing tone / Busy tone/ Engaged tone Direct line Switchboard / Operator/ Transfer / Cut off Hang up/ Answer Call back/ Return call Voice mail Im not here. Leave a message please Ill get back to you To listen to your message press 1 To listen to your message again press 2 To delete your message press 3
MESSAGES
Your name on the phone: Capital letter / small letter Dash or hyphen (-) Slash (/) One word Dot New word
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Asking to speak to someone Its John here This is John Can I speak to James? Could I speak to James? Is this a good time to call? This is James speaking Im busy at the moment. Could you call back later? Im sorry but hes not here.
At (@) MAKING ARRANGEMENTS
Can we fix a meeting? Shall we make an appointment? Is Tuesday good for you? How about Monday? Yes, I agree. No, Im sorry I wont be able to make it on Saturday. Closing Conversations
Changing arrangements
I cant make it on Monday. Can we reschedule for Tuesday? How about Wednesday? Can we put it off? Im afraid I wont be able to come on the 1st of May but how about 1st of June? Can we leave it open?
Do you like phone calls? Imagine you have to talk to a person about a bank account. You call at the bank and ask to talk to that person. What do you do when you understand that he/she is not in the office?
Is it difficult to speak to someone on the phone in English rather than face to face? Why? Can you spell your name and address? What do you do when the other person doesnt understand what you are trying to say?
Write a phone conversation to show that you book a ticket using a reservation line. Ask and answer questions about your name, address, information related to your trip.
See you on Tuesday. Speak to you soon. Keep in touch. Look forward to hearing from you. Nice talking to you. Thank you for your call.
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UNIT 3 TELEPHONING
BIBLIOGRAPHY: Mascul Bill, Business Vocabulary in Use, Cambridge University Press, 2002 Trappe Tonya, Tullis Graham, Intelligent Business, coursebook, Intermediate Business, Pearson Education, 2005 Cotton Davis, Falvey David, Kent Simon, Market Leader, Business English coursebook, Pearson Education, 2006
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UNIT 4
4.1. INTRODUCTION 4.2. THE OBJECTIVES OF THE UNIT TIME ALLOCATED 4.3. MODAL VERBS 4.4. SELF-ASSESSMENT GUIDE
Modals are helping in expressing ourselves in a formal way when in a business meeting
Study of form, use and practice of Modals
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MODAL VERBS 4.1. INTRODUCTION 4.2. THE OBJECTIVES OF THE UNIT
UNIT 4 MODAL VERBS
Characteristics of Modal Verbs
they have the same form for all the persons: I can, he can negatives are made by the modal verb followed by not: He can not do that. the interrogative is made by simple inversion: Can you do that? they are followed by infinitives: You should talk to me.
Can, Could
1.capacitate fizic sau intelectual (physical or intellectual ability) I can swim. I could swim when I was young. He can read this book.
2. posibilitate (possibility) You can go home, the danger passed. We could go to Greece last year, there was no war.
3. permisiune (permission) - ca o alternativ a lui May, Can este folosit n exprimarea familar, mai puin politicos dect May (as an alternative to May, Can is used in familiar speech, less polite than May) Can I borrow your CD? Could I come with you to Disneyland? ! Be able to este un nlocuitor pentru can atunci cnd acesta nu are forme pentru anumite timpuri (viitor, perfecte) Ill be able to help you. May, Might
1. posibilitate (possibility) He may be at home. He might be on his way home. 2. permisiune (permission)
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BUSINESS ENGLISH COMMUNICATION mai formal, politicos dect Can (more formal than Can) May I leave the room? May I borrow your pen? Might I borrow your glasses? 3. rugminte politicoas (polite request) May I use your phone? Might I use your phone? 4. Comand (command) You may do this for me.
5. Repro (reproach) You might have told me.
6. Sugestie (suggestion) You might send me an e-mail to tell me how everything is going.
1.obligaie a vorbitorului (expresses an obligation of the speaker) I must be at home soon, Im tired. 2. invitaie (invitation) You must come and visit the exhibition.
1. obligaie impus din afar, obinuit, extern (an obligation imposed from outside, habitual, external obligation) I have to be at work at five every day, that is the time my programme starts.
Need
lipsa obligaiei (lack of obligation) You neednt come, Im better. You neednt have taken so much troble cooking, we
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2. la trecut, nlocuitor al lui Must, pentru timpurile care i lipsesc acestuia (in the past, replacement for Must, for the tenses Must lacks): I had to be there.
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Have to
Must
3. deducie logic (logical deduction) He must be in Washington, he is not at home.
UNIT 4 MODAL VERBS have already had lunch at home
Will, Would 1. insisten (insistence): I will do whatever I want, do not try to stop me. He would go instead all our pleads. 2. comand (command): You will stay here until future orders. You would better stop crying. Shall, Should Shall
Should (ca alternativ pentru Should l folosim pe Ought to/ as an alternative for should we use Ought to): sfat sau recomandare (advice or recommendation): You should / ought to read that book.
M
Ability
1. cererea unei preri (asking for an opinion): Where shall I put the vase? 2. ofert (offer): Shall I help with these bags?
can, could, be able to He can speak English fluently.
Permission can, could, may might You may stay for a few more
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1.4. SELF-ASSESSMENT GUIDE Possibility can, could, may, might An agreement may be reached tomorrow. I might be wrong. They might have arrived by now. They could not find a job. You can find the answer on the bottom of this page. Probability should, ought to The introduction of the new national
BUSINESS ENGLISH COMMUNICATION minutes. You can speak to him for one more minute. He said I could speak to him for one more minute. He said we might stay for a few more minutes. Obligation and necessity phone numbers should help us to have better phone conversations.
must, must not, have to Candidates must fill in all the forms. We must watch that movie. You have to come with us.
Observaie (Observation): Verbele modale au mai mult dect un singur sens sau o unic folosin, i n unele cazuri verbe modale diferite au nelesuri sau utilizri similare dar nu pot fi interanjabile. (Modal verbs have more than one meaning or use, and in some cases two different modal verbs have some meanings or uses in common, but are not fully interchangeable.)
Circle a, b or c to show which modal verb best completes the sentence: 1. You do not to be my neighbour to visit us whenever you want a.have to, b. ought to, c. can
3. You . vote if you are 13. a. must not, b. can not c. should not 4. You .. be 18 to drive a car. a.need, b. have to, c. must 5. You .. get married without your parents agreement if you are only 14.
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2.If you are a good person and love children, you . to come and be a volunteer. a.ought to, b. should, c. may
Absence of obligation or necessity neednt, not need to, not have to neednt autoritatea vorbitorului (the authority of the speaker) not need to, not have to - autoritate exterioar sau circumstane ndeprteaz obligaia sau necesitatea de aciune (external authority or circumstances remove the obligation or necessity for action) You neednt come. You dont need to come to work today. You dont have to work on this project. ASSESSMENT/ SELF-ASSESSMENT TESTS
UNIT 4 MODAL VERBS a. must not, b. should not, c. can not 6. You .. go to the police if somebody breaks into your house. a.will, b. should, c. must 7. I borrow your CD? a.may, b. will, c. must
8. .. I use your phone, please? a. could, b. can, c. must
Rewrite the sentences using the words suggested so that they represent the equivalent situation in the past time. Use could or (be) able to: He can drive a car. (when he was eighteen) . She can speak five languages. (when she was sixteen) .. I am able to stand on my head for more than a half an hour. (when I was 12) . Tom is able to persuade anyone. (when Tom was 20) Gina can hear very well. (when Gina was younger) . I can remember many things from the past. (when I was 30) .. I can understand how you feel about the situation. (when the accident happened) . 8. I am able to predict the future. (when I was five).
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UNIT 5
5.1. INTRODUCTION 5.2. THE OBJECTIVES OF THE UNIT TIME ALLOCATED 5.3. ADVERTISING 5.4. SELF-ASSESSMENT GUIDE
In business advertising your product or your services is very important
5.1 Favorite advertisements 5.2 What makes a good advertisement 5.3 Advertising vocabulary 5.4 The future of advertising 5.5 Successful advertising campaigns 5.6 Create your own advertisement 5.7 Expressions and key concepts
ADVERTISING 5.1. INTRODUCTION 5.2. THE OBJECTIVES OF THE UNIT The time allocated for the unit: hours 2
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UNIT 5 ADVERTISING
Corporate and political advertising
. DAVID BERNSTEIN has an interesting take on the Mitt Romney ad controversy that I think is wrong in one important way. The ad, as we all know by now, shows Barack Obama saying "If we keep talking about the economy, we're going to lose", without noting that the clip dates from the 2008 campaign rather than the present, and that Mr Obama's line was in fact "Sen. McCain's campaign actually said, and I quote, If we keep talking about the economy, we're going to lose." This is a ridiculous distortion. But Mr Bernstein thinks that the swirly-dark montage the ad employs and its low levels of truthfulness are normal for corporate advertising, and that we're basically seeing a culture clash as the extremely corporate Mr Romney mixes it up with exclusively political competitors. This technique is pretty standard practice in corporate advertising, which long ago convinced us that the term "false advertising" means something other than the plain meaning of those words. Nobody questions the TV ad with the doctored image of a 747 landing on a Nissan pickup truck. Nobody points out that the guy in another commercial doesn't really have heartburn; that the guy next to him on the airplane isn't really a doctor; and that he doesn't really feel better latera play-acting vignette indistinguishable from the classic travelling-huckster miracle-cure snake-oil routine of old. Nobody thinks twice about lines like "best rest you've ever gotten...," or phony scenes of families enjoying the hell out of their cereal and models throwing themselves on the guy doused in Axe cologne, that clearly have no basis in fact. Why? Why, in fact, do we not consider all use of fictional devices in advertising to be, by definition, "false"? Because, um, well, 'cuz, uh... well, because those are fictions, we say, that nobody actually believes, so they're OK. But of course this is the fig leaf that allows Axe and Nissan and the rest to get the benefit they know perfectly well they get out of it. I don't know that I buy Mr Bernstein's contention that political advertising is in any meaningful sense more truthvalue-oriented than corporate advertising. But more importantly, I'm pretty sure that if Mr Romney had tried to run an ad like this for a commercial product, he'd be facing a
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BUSINESS ENGLISH COMMUNICATION lawsuit. A Nissan ad may show a 747 landing on the roof of the truck, but it doesn't contrast that with a shot of a 747 attempting to land on the roof of a Ford and crushing it due to the Ford's inferior quality. In commercial advertising, making a demonstrably false or misleading negative statement about a competitor's product would be legally actionable. The courts would probably be very reluctant to take up a lawsuit against a political candidate for pulling this sort of dirty advertising trick, because letting candidates sue each other over their campaign claims would create far more problems than it might solve. But precisely because we don't have much legal constraint on the truth of political advertising, we need to ensure that we have some social opprobrium attached to cutting and pasting video clips of politicians to blatantly distort what they've said. Meanwhile, I think this week's "false equivalency award" should go to Ken Rudin on NPR's "It's All Politics", who in response to co-host Ron Elving came up with this gem: Ken Rudin: I still think the DNC hysterics over the Romney ad are way over the top. Ron Elving: Well maybe the DNC hysterics are over the top, but an awful lot of journalists also pounced on this and said, this is the very first ad Mitt Romney has put out as a presidential candidate in 2012, and this is the way he chooses to represent his opponent. What kind of signal does that send about the kind of campaign that Mitt Romney's planning to run? Ken Rudin: Look at the campaign President Obama is running, running around the country saying how deceitful the Republicans are! So it's going to be a dirty campaign, we know that. So Mr Romney lied about Mr Obama, but Mr Obama called Mr Romney deceitful! Really, both sides share the blame for the dirty campaigning here. (the economist)
Do you think that the advertising practices described below are acceptable? Are there any types of advertisements that you find offensive? Using children in advertisements Promoting alcohol on TV Comparing your products with your competitors products
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UNIT 5 ADVERTISING An image flashed onto a screen very quickly so that people are affected without noticing it (subliminal advertising) Advertising vocabulary Directories Run Commercial Exhibition Point of sale Target Press Persuade Mailshots Public transport
Billboards / hoardings Posters Endorsement Jingles Promote Place Launch Word of mouth Research SLOGANS SPONSORSHIP CINEMA FREE SAMPLES LEAFLETS RADIO SPONSOR TELEVISION PUBLICISE
Outdoor advertisings appeal is growing as TV and print are loosing theirs. The soaring costs of TV are promoting clients to consider alternatives. Dennis Sullivan, boss of Portland Group, a media buyer, calls outdoor advertising the last true media market medium. It is also cheap. In Britain, a 30 second prime time TV slot costs over 60.000 placing an ad on a bus shelter for two weeks works out at about 90.
How can you say that an ad is good or bad? What is important for us when we watch an advertisement? What is your favorite advertisement? Why do you like it?
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BUSINESS ENGLISH COMMUNICATION What kind of advertisements do you like?
Use the words in the box and think what makes a good advertisement: Clever Interesting Powerful Funny
Inspiring Informative
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Humorous Shocking Eye-catching Sexy
UNIT 6 THE CONDITIONAL SENTENCE
UNIT 6
6.1. INTRODUCTION 6.2. THE OBJECTIVES OF THE UNIT TIME ALLOCATED 6.3. THE CONDITIONAL SENTENCE 6.4. SELF-ASSESSMENT GUIDE
The conditional sentence is very useful in negotiating in business
Studying the use, role and practice of the conditional sentences
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THE CONDITIONAL SENTENCE 6.1. INTRODUCTION 6.2. THE OBJECTIVES OF THE UNIT
6.3. THE CONTENT OF THE UNIT What is a conditional sentence? If I eat too much, I get sick.
A conditional sentence is a sentence structure commonly used in English when we want to talk about something (a result) that may happen ONLY IF something else happens first (a condition). The condition may be something real or unreal / hypothetical, and the result could a definite result, or just a possible / likely result. The most common type of conditional sentence uses if. These are the easiest conditional sentences to form and understand. You could also use unless, when, after, before or as soon as. Here, we will focus on using conditional sentences with if. ~
There are 2 parts to a conditional sentence. These two parts are also called clauses. [A clause is any part of a sentence with a subject and a verb.]
Part 1 the if or condition clause: the event that needs to occur; also called the dependent clause because it is not a complete sentence and is dependent on the 2nd part of the sentence. Part 2 the result or main clause, or what happens when the event in the if/condition clause occurs; also called the independent clause. Either part can come first:
If I eat too much, I get sick. [When the 'if' part comes first, the two parts are separated with a comma ( , ) ] I get sick if I eat too much.
Changing the order of the clauses does not change the meaning; the two sentences above mean exactly the same thing. ~ There are 4 types of conditional sentences in English:
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UNIT 6 THE CONDITIONAL SENTENCE 0 (zero) conditional real / factual conditional If I eat too much, I get sick.
If I eat too much, I will get fat.
2nd (second) conditional present unreal/hypothetical conditional If I were fat, I wouldnt be able to dance very well.
3rd (third) conditional past unreal conditional
If, provided (that), so long as, on condition that, in case, suppose, supposing (that), unless Main clause If clause
1. FUTURE / PRESENT / IMPERATIVE Ill go swimming I am happy Go and buy tickets PAST TENSE He went for a walk
If I hadnt eaten so much, I wouldnt be so fat.
FUTURE / PRESENT / IMPERATIVE (past condition with a PRESENT PERFECT / present result) PAST Read again the instruction If you havent Hell come today understood them If he wasnt here yesterday 2. PRESENT PAST TENSE CONDITIONAL present action (imaginary situation If the weather were opposed to a better We could go (lack of probability in a If I had the day off future moment)
PRESENT If the water is warm If you are happy If you want to see the film PAST TENSE If he felt tired
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1st (first) conditional future possible/real conditional
BUSINESS ENGLISH COMMUNICATION I would go to the beach
I. Punei verbele din paranteze la timpul corect. (Put the verbs in brackets into the correct tense): A. 1. If we do not take that bus, we (not/ find) another. 2. If the government (not/ do) anything about this, well have to ask them to resign. 3. If I (not/ go) to bed now, I (fall asleep) on the sofa. 4. If you (not/ want), (not/ go) there. 5. If it (snow), they (go) skating. B. 1. We would go for a walk if it (not / be) raining. 2. We (ask) him a question if he stopped shouting. 3. If you werent so dirty I (take) you with me. 4. If I (have) a place to park, I (stop). 5. If you (stop) smoking, I (buy) you a present.
C. 1. I would have visited him if he (not /been) so grumpy. 2. They (listen) to your songs, if you had been more polite.
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3. PAST PAST PERFECT CONDITIONAL If the weather had been I would have left last better Monday
UNIT 6 THE CONDITIONAL SENTENCE 3. If I (know) your number, I would have called you. 4. I (play) the guitar for you if the strings hadnt been missing. 5. If my computer hadnt been broken, I (write) your paper. II. ncheiai fiecare propoziie folosind condiia potrivit. (Finish the sentences with suitable conditions): 1. Id be in New York if ... 2. I would go shopping if . 3. Tomorrow Ill be in Birmingham if ... 4. You hadnt been in this situation if .... 5. The kitchen wouldnt be a mess, if ................................................ 6. There would have been less chance of panic if .. 7. There would have been less people injured if .... 8. I come with you if .
1. If I were you, I .. there. (go) 2. If it were not so cold, I. (pay a visit) 3. If I knew you were there, I ... (not/come) 4. If I did not want to be there, I. (e-mail) 5. If I knew his number, I.. (would call) 6. I wish you .. so annoying. (be) 7. If I were you, I .. such a thing. (do) 8. What would you do if they you that job? (give)
IV. Completai propoziiile folosind modelul trei de condiional (Complete the sentences following the pattern for the third type of conditional): 1. I would have liked the dress much more if .. 2. You would have come to the party if . 3. He would not have won the elections, if .. 4. If the had arrived earlier the accident . 5. I am sure she would not have married him if ... 6. If I had realised that you wanted to help me, I ... 7. If you had drunk water before we left home, you ... 8. I would have driven faster if ..
Write what you will or may do in the following situations:

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III. Punei verbele din parantez la forma corect (Put the verbs in brackets into the correct form):
BUSINESS ENGLISH COMMUNICATION 1. 2. 3. 4. 5. 6. If your car is stolen If a close colleague gets married If you are offered a better paid job abroad If your firm is taken over by a competitor If you have to give a presentation in English If your computer is infected with a virus
Imagine what would happen in the following (unlikely)situations: 1. If the world was governed by a Communist superpower 2. If your husband or wife was offered a good position in Iceland 3. If you stood for the presidential elections 4. If the sale of alcohol was banned in Europe 5. If you were accused of selling your countrys military secrets Read the text and say if you had been director general of Soda Soda Enterprises what would you have done to restore consumer confidence:
In June 199 more than 100 people in Spain and two in Italy complained of headaches, dizziness and stomach upsets after drinking canned soft drinks manufactured by Soda Soda. Subsequently, the authorities in Spain and Italy ordered Soda Soda products to be withdrawn as a precaution.
BIBLIOGRAPHY:
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UNIT 7 MARKETING
UNIT 7
7.1. INTRODUCTION 7.2. THE OBJECTIVES OF THE UNIT TIME ALLOCATED 7.3. MARKETING 7.4. SELF-ASSESSMENT GUIDE
The study of marketing terms in business English
Buyers, sellers and the market Markets and competitors Marketing and market orientation
MARKETING 7.1. INTRODUCTION 7.2. THE OBJECTIVES OF THE UNIT The time allocated for the unit: hours 2
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Marketing is the social process by which individuals and organizations obtain what they need and want through creating and exchanging value with others. Kotler and Armstrong (2010).
The process by which companies create value for customers and build strong customer relationships in order to capture value from customers in return. Kotler and Armstrong (2010).
How many times throughout the day do people make product decisions? If you stop to think about it, many product decisions are made every day, some without much thought. What should I wear? What should I eat? What am I going to do today? Many product decisions are answered routinely every day and they help move the economy of cities, countries and ultimately the world. Product decisions also shape life for the consumer. How can simple decisions be so important? Why do marketers spend millions of dollars to uncover the reasons behind these decisions? To define consumer behavior: it is the study of consumers and the processes they use to choose, use (consume), and dispose of products and services. A more in depth definition will also include how that process impacts the world. Consumer behavior incorporates ideas from several sciences including psychology, biology, chemistry and economics. "All marketing decisions are based on assumptions and knowledge of consumer behavior," (Hawkins and Mothersbaugh, 2007). Researching consumer behavior is a complex process, but understanding consumer behavior is critical to marketers-they can use it to: Provide value and customer satisfaction. Effectively target customers. Enhance the value of the company. Improve products and services. Create a competitive advantage Understand how customers view their products versus their competitors' products.
Defining Consumer Behavior What is Consumer Behavior?
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UNIT 7 MARKETING Expand the knowledge base in the field of marketing, Apply marketing strategies toward a positive affect on society (encourage people to support charities, promote healthy habits, reduce drug use etc.) Consumer Behaviour External Influences - Consumer Culture a. Culture includes knowledge, belief, art, law, morals, customs, and any other capabilities and habits acquired by humans as members of society. b. How does culture affect consumer behavior? Whatever a person consumes will determine their level of acceptance in their society. If someone does not act consistently with cultural expectations, they risk not being accepted in society. c. What happens when a company ignores culture? McDonalds is one of the most popular restaurants in the world. At their American based restaurants they serve beef hamburgers, but when they decided to open restaurants in India, they used lamb meat for their hamburgers, because the Indian people do not eat cow meat; if McDonalds had ignored this cultural difference they would not have been successful in India! That was the problem when The Walt Disney Company opened EuroDisney outside Paris; it was almost a failure because Disney ignored the culture. The French people drink wine at very young ages and prefer sugar on their popcorn, not salt, like Americans. Disney did not accommodate their theme park until they realized that the French people were indeed their target market, so they changed the name of the park to Disneyland Paris and made modifications to their menus and also to the wait lines in the park. (marketingteacher.com)
The functions are: Buying - people have the opportunity to buy products that they want. Selling - producers function within a free market to sell products to consumers. Financing - banks and other financial institutions provide money for the production and marketing of products. Storage - products must be stored and protected until they are needed. This function
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THE NINE FUNCTIONS OF MARKETING In order for the marketing bridge to work correctly -- providing consumers with opportunities to purchase the products and services they need -- the marketing process must accomplish nine important functions.

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THE FOUR UTILITIES OF MARKETING The marketing process must also add "utility" to the products consumers want. Utility is the use or satisfaction a person gets from a product. If you purchase a chain saw you anticipate that you will receive a certain amount of utility from it. You will be able to use the saw to cut fire wood, prune trees, and take care of a variety of jobs around your home. There are four types of utility. Form Utility - a product must be processed into a form that the customer wants or needs. For example, wheat is processed into bread, trees are processed into lumber, and potatoes are processed into french fries. If you ordered french fries with your lunch and the waiter brought you a raw potato, you probably wouldn't be too happy. Place Utility - place utility involves transporting products to the location where consumers can buy them. If you live in Alaska, you certainly wouldn't want to have to drive to California to buy oranges. Thanks to our modern transportation systems you don't have to; you simply drive to the local grocery store and oranges are there ready to add to your shopping cart -- place utility. Possession Utility - possession utility establishes legal ownership of a product. When you purchase something you normally receive a receipt; this provides legal ownership and the right to use the product. Some products, computer software, for example, also provide a user license. A license of this kind gives you the right to use the product within certain guidelines. Time Utility - this could be described as being in the right place at the right time when a customer is ready to purchase a product. Creating and keeping customers means having products available for when they want them, and often this requires some type of storage facility. Wheat is one example of a commodity that must be stored after it is harvested. It is stored in silos until processors are ready to convert it into food products such as bread or cereals. (asbcentral.com)
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is especially important for perishable products such as fruits and vegetables. Transportation -products must be physically relocated to the locations where consumers can buy them. This is a very important function. Transportation includes rail road, ship, airplane, truck, and telecommunications for non-tangible products such as market information. Pr ocessing - processing involves turning a raw product, like wheat, into something theconsumer can use -- for example, bread. Risk-Taking - insurance companies provide coverage to protect producers and marketers from loss due to fire, theft, or natural disasters. Market Information - information from around the world about market conditions, weather, price movements, and political changes, can affect the marketing process. Market information is provided by all forms of telecommunication, such as television, the internet, and phone. Grading and Standardizing - Many products are graded in order to conform to previously determined standards of quality. For example, when you purchase US No. 1 Potatoes, you know you are buying the best potatoes on the market.
UNIT 7 MARKETING
WHAT IS MARKETING?
Think of a product with which you are familiar and answer the following questions. 1. Product Name: 2. Product Use: 3. Describe the typical consumers of the product: 4. What raw materials are used to make this product? 5. How is the product processed? 6. How is the product transported? 7. Where is it sold? 8. How is the product promoted and advertised? 9. How much does the product cost? 10. Each item above is part of the marketing process. Many other activities are considered to be part of marketing. How many you can list?
BIBLIOGRAPHY:
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UNIT 8
8.1. INTRODUCTION 8.2. THE OBJECTIVES OF THE UNIT TIME ALLOCATED 8.3. PREPOSITIONS 8.4. SELF-ASSESSMENT GUIDE
Knowing how to use prepositions in English is of high importance
Types of prepositions Use of prepositions Practice
PREPOSITIONS 8.1. INTRODUCTION 8.2. THE OBJECTIVES OF THE UNIT The time allocated for the unit: hours 2
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UNIT 8 PREPOSITIONS
At,in and on:prepositions of place
We use at to talk about a place we think of as a point rather than an area, and about an event where there is a group of people: I arrived at New Street Station at 7.30. We were waiting at the far end of the room. We last met at the conference in Italy. There were very few people at Joan's party. We use on to talk about a position touching a flat surface, or on something we think of as a line such as a road or river: Is that a spider on the ceiling} (Notice we also say 'on the wall/floor') She owns a house on the Swan River. We use in to talk about a position within a larger area, or something within a larger space: ) There's been another big forest fire in California. * She looked again in her bag and, to her relief, there were her keys. Also study how at, in, and on are used in these sentences: My dream is to play at - seen as a point Wembley Stadium. - either seen as within the pool itself, or as a Didn't I see you in/at the building which is a point in pool yesterday? town He lives in Perth. - within the city We stopped in/at Milan, - we use at when we see the Florence and cities as points on a journey, and in when Pisa on our way to Rome. we see them as enclosed areas where we stayed for some time They were a great success - we can use at when we use in/at a place name instead of an institution or Edinburgh. event - here, the Edinburgh Festival; in suggests the city He's in Los Angeles on - staying or living there business. - a student at Manchester
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BUSINESS ENGLISH COMMUNICATION He's at Manchester studying Linguistics. She works at Marks and Spencer. She works in a shoe shop. I stopped at the shop on the way home. I was in the bank when in came Sue. (Notice we say: T work on a farm', but T work in a factory.') I read the paper in the taxi on the way. I'll probably go on the bus. University - the name of a particular organisation - the kind of place - we use at to talk about buildings such as the dentist's, the supermarket, the bank, school, etc.; we use in to emphasise that we mean inside the building - for travel using taxis and cars - for travel using bus, coach, plane, or train; but we use in if we want to emphasise inside the bus, etc.
We usually use at before an address and in or on before the name of a road: They've opened an office at 28 Lees Road. The church is in/on Park Road. However, we sometimes use on instead of in when we talk about long streets or roads: The town is on the Pacific Highway. We can use at instead of in when we use a street name to refer to an institution in that street: There was an important meeting of ministers at Downing Street today. But notice that we say 'on Wall Street' to mean the financial institution. Compare: I'll meet you on the corner of the street, and The lamp was in the corner of the room. 8.4. SELF-ASSESSMENT GUIDE
Complete these sentences with at, on, or in and the most likely word or phrase.
1 I bumped into Tim .I went to the other evening. 2 The film was shot mainly. in North Africa. 3 He was undoubtedly the best player ..in the first half. 4 Although he has been singing for ages, it will be the first time he has appeared. 5 They live .., so there's a lot of traffic going past.
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THE PITCH /PARTIES /THIS BOOKLET /THE TABLE /THE MAIN ROAD /A DINNER /THIS COUNTRY /HIS POCKET /THE TOP END /YOUR LAWN /THE OPERA HOUSE /TUNISIA
UNIT 8 PREPOSITIONS 6 It will be the biggest event of its kind ever held. 7 I know that people like to dress up .., but that is ridiculous. 8 Bill lived ..of my street. 9 The information ..is out of date. 10 Do you know that there's a rabbit , and it's eating your flowers? 11 He put his hand .and took out some coins. 12 Who's moved my briefcase? I left it Complete these sentences with at, in or on. If two answers are possible, write them both. 1 a He played.. Wimbledon for the first time this year. b Quite by chance, we met .the tennis stadium last week.
2 a He turned up early to make sure he had a seat the plane. b I saw Judith this morning, but she was. her car so I couldn't say hello. 3 a We just got ..the train and headed for Florence. b We were stuck the plane for hours in Jakarta.
4 a We went to wave him off .the station. b It was raining, so he decided to shelter ..the station before he walked home.
5 a She worked ..a restaurant during the evenings to earn some extra money. b When she was a student she worked ..a pizza restaurant at weekends. 6 a She won a gold medal ..Barcelona in 1992. b I lived ..Stockholm for three years during the 1970s. 7 a Peter's doing a Master's degree. Birmingham. b They're Brighton to do an English language course.
Complete the sentences with at, in or on.
1 There has been a serious accident ..the motorway near Swindon. 2 She's just moved from her flat .38 Azalea Drive. 3 We broke down .the Princes Highway between Melbourne and Adelaide. 4 The overnight rise Wall Street was not maintained. 5 Talks are to be held ..Downing Street, chaired by the Prime Minister. 6 My uncle owns a hardware shop.. the corner of High Street and Redland Road. 7 I first saw the ring in an antique shop Kensington Road.
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UNIT 9 NEGOTIATIONS
UNIT 9
9.1. INTRODUCTION 9.2. THE OBJECTIVES OF THE UNIT TIME ALLOCATED 9.3. NEGOTIATIONS 9.4. SELF-ASSESSMENT GUIDE
In business knowing how to negotiate is of high importance
Rules of negotiation How to negotiate Negotiation Vocabulary Practice
NEGOTIATIONS 9.1. INTRODUCTION 9.2. THE OBJECTIVES OF THE UNIT The time allocated for the unit: hours 2
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During a meeting with a potential customer, a new salesperson leaves the room several times to make phone calls. Each time when she returns, she tells the customer she cant accept the terms they just negotiated. Exasperate by her apparent lack of authority, the customer ends the meeting abruptly. As this scenario shows, your counterparts constituents are bound to play a role in negotiations, whether you realize it or not. When the other side negotiates on behalf of an organization, his superiors and coworkers have a stake in the outcome. In more personal negotiations, his friends or family members may attempt to sway his choices. The same is true of your constituents. Yet negotiators often are surprised to discover the strength of the opinions, advice, and directives their counterparts face from others. By anticipating the role of these shadowy outsiders in negotiation, you can plan to manage their influence. As part of your preparation for a particular negotiation, think about how much authority our counterpart might have to make decisions. Whom does she report to? With whom might she consult before making a decision? When negotiating on the job, you can assume the other partys boss will need to sign off on your agreement. Will she also have to check in with her boss periodically on key issues? Is she part of a team that must sign off on a deal, whether formally or informally? In some cases, such as an unemployment negotiation, the persons spouse, children, or parents may play a strong backstage role. If you think a third party could slow down your negotiation or scuttle a deal at the last minute, what should you do? In his chapter Bargaining in the Shadow of the Tribe in The Negotiators Fieldbook (American Bar Association, 2006), negotiation and mediation expert John H. Wade outlines a number of possibilities. First, if an outsiders influence seems likely to be destructive, you might decide to pass on the negotiation altogether and find a partner who has more autonomy, especially if you are on a deadline. Second, you might ask you counterpart if hed like to include any of these interested parties in negotiation. This option is often impractical or undesirable; you counterpart probably doesnt want his boss at the table, for instance. Yet because interested parties often have legitimate concerns,
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Dealing with the Other Sides Constituents
UNIT 9 NEGOTIATIONS bringing them to the table may actually enhance your negotiation. If you would each be representing a team, for example, it might make sense to switch from one-on-one to team negotiations. Or if a prospective employee would be moving her family across the country, her husband might appreciate being included in discussions about company benefits and the job market in the new community. (harvard.edu)
What Are The Four Types Of Negotiating Outcomes?
Negotiating outcomes are the types of results that can happen at the end of a negotiation. All negotiations end up with one out of four possible outcomes: one party wins and the other loses, both parties lose, they get stuck in a stalemate, or both end up winning. Obviously, the goal in a cooperative negotiation is for both parties to walk away with their needs being satisfied. Familiarize yourself with the four different negotiating outcomes and make it your goal to aim for a mutually-beneficial outcome. Lose-Lose In this type of outcome, ego's come into play which thwart the negotiating process. Both sides dig into their positions and are unwilling to compromise with each other. In the end, both parties end up losing in the deal. Resentment exists between both parties as a result of the outcome and it is unlikely that they will ever negotiate with each other again. Example A labor union refuses a contract offer and goes on strike until demands are met. The company refuses to give into to this bullying-type technique and digs into their position of not budging. In the end, the strikers go back to work without a raise and with lost income and the company loses a large amount of sales revenue, and the consumer loses because the company must raise prices to pay for its losses. Win-Lose In this type of outcome, one side wins and the other side loses. There is no compromise with a win-lose outcome. It's a one-side takes all battle with one side getting all their needs satisfied and the other side getting nothing. While the side that wins may be very happy about the outcome; the losing side has a high level of resentment over the deal because they did not have any of their needs met. This usually results in a end to any future negotiations and a termination of the relationship. Examples A street brawl is the ultimate in win-lose negotiations. One side wins by use of physical violence and the losing side has no choice but to submit to defeat. A civil court battle is win-lose. A judge or jury decides winner and loser based on available evidence. One side wins punitive or compensatory damages and the other side loses that money. Stalemate In this type of outcome, neither side wins or loses and after a long negotiating session, both sides are at the exact same place that they started off at. This is a result of not being able
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BUSINESS ENGLISH COMMUNICATION to deal with interests and only positions. Stalemates happen when both sides aggressively defend their positions and neither side is able to make the other side budge. Example You go to buy a car and the salesman quotes you a price that is too high. You are unwilling to budge on your price and the salesman is unwilling to budge on his quote. You then walk out of the dealership and go find another one to deal with and the salesman moves on to the next customer. Win-Win This is the type outcome that you strive to achieve when you Street Negotiate. In this type of outcome, both sides walk away with their interests and needs being met. Both sides leave the negotiating table satisfied because they came out of the negotiation with more than they had started with. Relationships are preserved because both parties cooperated with each other in determining a fair solution to the problem. This outcome also bolsters trust for future negotiations between the two parties because they have established a positive relationship. Example A hostage taker agrees with the police negotiator to surrender and release his hostages. In return, the negotiator agrees that the SWAT team won't bust through the doors and kill the hostage taker. In this example, the hostage taker gets his needs of survival taken care of and the negotiator gets his needs of ending a potentially deadly confrontation without any bloodshed satisfied. Key Points The four possible outcomes to a negotiation are: lose-lose, win-lose, stalemate, and winwin. Set your goals on having a win-win outcome in all of your negotiations. A win-win outcome is where both negotiating parties walk away with having both of their needs met. (ezinearticles.com)
15 Rules of Negotiation
Negotiation is a process that can be learned. By following the 15 rules outlined here--and practicing, practicing, practicing--you can perfect your skills at negotiating deals in which everyone wins. 1. Remember, everything is negotiable. Dont narrow a negotiation down to just one issue. Develop as many issues or negotiable deal points as you can and then juggle in additional deal points if you and the other party lock onto one issue. 2. Crystallize your vision of the outcome. The counterpart who can visualize the end result will most likely be the one who guides the negotiation. 3. Prepare in advance. Information is power. Obtain as much information as possible beforehand to make sure you understand the value of what you are negotiating. Remember, very few negotiations begin when the counterparts arrive at the table.
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UNIT 9 NEGOTIATIONS
4. Ask questions. Clarify information you do not understand. Determine both the implicit and explicit needs of your counterpart. 5. Listen. When you do a good job listening, you not only gain new ideas for creating win/win outcomes but also make your counterpart feel cared for and valued. This also allows you to find out what the other party wants. If you assume that his or her wants and needs are the same as yours, you will have the attitude that only one of you can win the negotiation. 6. Set a goal for each deal point. Define your minimum level of acceptance for each goal. If you arent clear on your goals, you will end up reacting to the propositions of your counterpart.
7. Aim your aspirations high. Your aspirations will likely be the single most important factor in determining the outcome of the negotiation. You can aim high just as easily as you can aim low. 8. Develop options and strategies. Successful people are those who have the greatest number of viable alternatives. Similarly, successful negotiators are those who have the most strategies they can use to turn their options into reality.
9. Think like a dolphin. The dolphin is the only mammal who can swim in a sea of sharks or in a sea of carp. Dolphins are able to adapt their strategies and behaviors to their counterparts. Remember, even when negotiating with a shark, you have an option--you can walk away! 10. Be honest and fair. In life, what goes around comes around. The goal in creating win/win outcomes is to have both counterparts feel that their needs and goals have been met, so that they will be willing to come back to the table and negotiate again. An atmosphere of trust reduces the time required to create win/win outcomes.
11. Never accept the first offer. Often, the other party will make an offer that he or she thinks you will refuse just to see how firm you are on key issues. Chances are, if you dont have to fight a little for what you want, you wont get the best deal. 12. Deal from strength if you can. If thats not possible, at least create the appearance of strength. If the other party thinks you have no reason to compromise in your demands, he or she is less likely to ask you to. 13. Find out what the other party wants. Concede slowly, and call a concession a concession. Giving in too easily tells the other party that you will probably be open to accepting even more concessions.
14. Be cooperative and friendly. Avoid being abrasive or combative, which often breaks down negotiations. 15. Use the power of competition. Someone who thinks its necessary to compete for your business may be willing to give away more than he or she originally intended. Sometimes just the threat of competition is enough to encourage concessions.
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BUSINESS ENGLISH COMMUNICATION BIBLIOGRAPHY: Mascul Bill, Business Vocabulary in Use, Cambridge University Press, 2002 Trappe Tonya, Tullis Graham, Intelligent Business, coursebook, Intermediate Business, Pearson Education, 2005 Cotton Davis, Falvey David, Kent Simon, Market Leader, Business English coursebook, Pearson Education, 2006
D
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UNIT 10 FINANCE
UNIT 10
10.1. INTRODUCTION 10.2. THE OBJECTIVES OF THE UNIT TIME ALLOCATED 10.3. FINANCE 10.4. SELF-ASSESSMENT GUIDE
Knowing as much we can about finance is very important for the development of he business
Finance vocabulary Use of vocabulary Practice
FINANCE 10.1. INTRODUCTION 10.2. THE OBJECTIVES OF THE UNIT The time allocated for the unit: hours 2
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FINDING GROWTH THROUGH MERGERS & ACQUISITIONS
Not long ago, owners of middle market companies could expect to sell their business at a reasonable value when they were ready for a transition. Their business didn't have to be the best performer, but rather operate comparably to the performance of their peers meeting decent middle-of-the-road metrics. Not so today! Many are experiencing what the market is calling the "Value Gap." This gap manifests itself in a number of ways in terms of buyer interest, in terms of access to growth capital and in terms of valuation. In many instances it's not a matter of the value of the company being low or the cost of capital being high -- it is the absolute lack of any interest in financing or in acquiring the company at all. For example, lower middle market businesses that haven't hit their stride or met their potential -- evidenced by slow growth rates, low gross margins or low EBITDA margins -but are strategically positioned and attract buyer interest; these companies have seen a continued declined in EBITDA multiples paid by both strategics and financial buyers. On the other hand, the higher performing middle market companies with EBITDA greater than $8 million to $10 million are experiencing record high multiples, even higher than those in late 2007 and early 2008. To the point, the size of EBITDA does matter! The value gap can be illustrated by the wide difference between what is referred to as "Owner Value" and "Market Value." Owner value is the required value in the M&A transaction by the shareholders of the selling company, whereas market value is the range of amounts that the market players place on a company based on their perspective and the market dynamics. In many cases, owner values have been driven higher by the lack of alternate investment opportunities post-closing that will yield returns with adequate cash flow to mirror those that the owners currently experience by holding their interest in their business. In many situations, market values for all but the high performers have been driven down .thus the gap has widened. Recent research and empirical evidence shows that the root problems causing this value gap for middle market companies are that: Companies don't generate returns adequate to cover their
STRATEGIC
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UNIT 10 FINANCE cost of capital, and Management isn't re-investing at an adequate rate to sustain growth and remain competitive and relevant in the market place long-term. The Opportunities M&A and the private capital markets currently present an interesting set of alternatives. As shareholders contemplate the effect of the market dynamics, their companies' growth strategies and eventual transition plans, some are seeking deals that allow them to: Diversify away the risk of having too much personal net worth in a single asset. Minimize the risk of growth by obtaining a financial or strategic partner. Buy-out passive partners and make room in the capital structure for management and employees without dilution to exiting active shareholders. So, depending upon the strength of the middle market business, its strategic position, and its financial performance relative to peers, the spectrum of options can include: Selling to a strategic or financial buyer. The stronger or "A" players in the market will likely have the opportunity to sell their business in whole or part through a traditional buyout transaction that can provide a change of control selling the majority of the business to a private equity fund while keeping a minority portion. The advantage of this approach allows the current owners a "second bite at the apple" using the fund's capital to further grow their business and the opportunity to sell a second time when their investors sells (some three to five years later). Strategics provide the opportunity for a complete exit at a price that the financial buyer may find difficult to match because of the inability to obtain a return outside of the pure financial metrics. Recapitalize the existing business. Generally a recapitalization will involve a lower cash-out (as a partial or staged exit) for the active owners than a buyout (which involves a change of control). A recapitalization will most likely be focused on changing the relative mix of debt and equity with an eye toward the growth objectives of the company and the required go-forward capital. For example, a leveraged recapitalization will most likely increase the debt of the company in exchange for distributions, dividends, or purchase of equity. Acquire or merge with a complementary or competitive player. There are various forms of acquisition financing available depending upon the relative strengths of the parties. Because of some of the structural barriers in the private capital markets, a lower middle market company may not have access to growth equity or mezzanine financing alone. However, through an acquisition or merger two businesses
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BUSINESS ENGLISH COMMUNICATION with the right synergies and combined cash flow may very well cross into the credit box or investment criteria that allows the newly formed business access to capital to accelerate growth, fund strategic initiatives and possibly buyout some partners or shareholders. Acquisitions Acquisitions can meet a number of goals if approached and executed as part of a long-term strategy. In addition to solving the "access to capital" problem discussed above, some of the typical reasons executives pursue acquisitions include: To accelerate revenue growth. To enter an adjacent market space. To expand into a new geography or obtain a physical footprint in a new location. To access new customers. To access technology. To strengthen the pool of talent and capabilities. To complete or augment a product or service line. To reduce costs. To capture market share. To prevent a competitor from gaining these advantages. The first phase of a typical acquisition process addresses finding a target company to buy; this begins with the strategic plan that should lay the foundation to determine many of the parameters and the focus of the process. The second phase of the process is to structure the deal, close the transaction, and integrate the business. The financing strategy to support the acquisition should initially be thought of in the context of the overall acquisition process and be defined as part of the acquisition strategy (phase one), understanding that the process will evolve and is somewhat iterative as knowledge is gained from the marketplace. If your company is cash flush or the acquisition target is immaterial in value, the financing strategy may be as simple as funding the transaction from operational cash flow or cash reserves. However, if the deal requires external funding, management must consider a financing strategy, which typically begins with understanding the acquiring or buying company. This involves: Determining its valuation and financial strength. Establishing financial objectives and benchmarks for vetting possible acquisitions. Determining parameters around how much the buyer can afford. Conducting internal discussions around an ideal or preferred deal structure. Establishing relationships with financing sources and obtaining buy-in regarding the acquirer's plans. Obtaining evidence for potential sellers of the buyer's ability to finance and close a deal.
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UNIT 10 FINANCE From these parameters, management can then think about financing a specific target company, which is a function of the value of the target, likely cash flow of the target, the deal structure and the integration strategy. Start by assessing the value of the target acquisition as a stand-alone business using traditional valuation approaches; then value the acquisition in the context of your business giving consideration to cost savings and lift that may be obtained on a combined basis. Another metric that may be useful in the process is to determine the financeable value. This is the amount that can be paid using external financing based on the assets and cash flow of the target. The deal structure and financing strategy are developed by weighing a number of factors to find the optimum solution to meet the objectives of the parties involved. Among other things, these factors include the integration strategy and the deal valuation gap -- in this case, that is the value that your company is willing to pay and what is required to get the deal done. Management should keep in mind some core concepts as it takes an objective view and embarks on the acquisition process: Begin with the end in mind; set clear objectives and benchmarks to gauge attractiveness of potential target companies and particular deals. Develop the financing strategy up-front and establish relationships with likely sources of financing. Terms are likely more important than absolute valuation. Align the financing strategy with the operating/integration plan and deal structure. Focus on Value Creation Regardless of the eventual solution or desired outcome, start with the same process. The essence of the front-end steps in the M&A and financing process is an analysis and understanding of the shareholders' and company's objectives, financial and competitive position, growth strategy and initiatives, and valuation. Keep in mind that whether financing an acquisition, selling the entire company, raising a tranche of growth capital (in the form of debt or equity), or pursuing a recapitalization, what you are really selling is the future cash flow of the business. While past performance provides credibility to management's claims, future cash flow is the foundation for valuation and usually the primary reason for buying or investing in a company. (http://businessfinancemag.com)
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abbr. Automated Teller Machine; cash dispenserUK n: a piece of paper money; billUS n. a banknote; a piece of paper money n. illegal traffic in officially controlled commodities such as foreign 4 black market currency bureau de n. establishment where currencies of different countries may be 5 change exchanged n. 1 coins or bank notes (not cheques); 2 actual money paid (not 6 cash credit) cash n: automatic machine from which clients of a bank may withdraw 7 UK dispenser money; ATM 8 cashier n. person dealing with cash transactions in a bank, store etc 9 coin n: a piece of metal money 1 currency n. the money in general use or circulation in any country 1 debt n. money etc owed by one person to another Exchange 1 n. the rate at which one currency can be exchanged for another rate foreign 1 n: the currency of other countries exchange hard 1 n. currency that will probably not fall in value and is readily accepted currency 1 invest v. to put money for profit into business, land etc - investment n. 1 legal tender n: currency that cannot legally be refused in payment of a debt UK 1 petty cash n. a cash fund for small, everyday expenses 1 soft currency n. currency that will probably fall in value and is not readily accepted v. (risky) buying of foreign currency, land etc for rapid gain 1 speculate speculation n. 2 transaction n. a (usually commercial) exchange; a deal - to transact v.
Business Finance Terms 1. NET PROFIT The difference between total sales and total costs of the business
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Money 1 A.T.M. 2 banknote 3 billUS
UNIT 10 FINANCE 2. PROFIT The amount by which the total revenue of a business exceed its total costs and expenses 3. INTEREST The cost of borrowing money, or the return from saving 4. RETAINED Profits earned by a business that are reinvested in the business rather than paid out as dividends 5. PROFIT AND LOSS account. Describes the results of the trading (revenues and costs) of a business in a period 6. FINANCE The money required to set up, run and expand a business 7. LIQUIDITY Measures of a business' ability to pay its debts 8. LOSS Where total costs of a business exceed its total revenues in a period 9. STOCKS Raw materials, work-in-progress and finished goods held for resale 10. LEASEBACK Where a business sells fixed assets and then leases them back 11. FLOTATION Where the shares of a company are offered for sale on a stock market for the first time 12. CREDITORS People, businesses or other organisations to which a business owes money 13. NET ASSETS The difference between the total value of assets owned by a business and the total of its liabilities 14. OVERHEADS Costs incurred by a business that are not directly related to production activities 15. LOAN Where money is borrowed and repaid under agreed terms and conditions 16. FIXED ASSETS Resources owned and used by a business over the long-term such as buildings and machinery 17. OVERDRAFT A loan facility from the bank that may have to be repaid at any time 18. LIABILITIES Debts owed by a business 19. BALANCE SHEET Shows the financial position (assets and liabilities) of a business at a specific moment in time 20. COSTS Amounts incurred by a business in producing and selling products 21. COST OF SALES The cost to the business of the goods sold 22. REVENUE Another term for the value of sales made by a business 23. ASSETS Everything that the business owns that has a monetary value, including cash, stocks, debtors 24. GROSS PROFIT A measure of profit calculated as: revenue less cost of sales 25. TURNOVER An alternative word for revenue or sales
BIBLIOGRAPHY:
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UNIT 11
11.1. INTRODUCTION 11.2. THE OBJECTIVES OF THE UNIT TIME ALLOCATED 11.3. FINANCIAL PLANNING 11.4. SELF-ASSESSMENT GUIDE
Writing a financial plan in English is important for starting or developing a business
Information on correct writing of a business plan Writing a business plan Practice
FINANCIAL PLANNING 11.1. INTRODUCTION 11.2. THE OBJECTIVES OF THE UNIT The time allocated for the unit: hours 2
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UNIT 11 FINANCIAL PLANNING
Now that you know the importance of a financial plan, figuring out exactly when youll do what you want to do is the next step and that is: make a financial plan. The actual financial plan will help you in knowing how youll achieve your goals. Writing a financial plan does not make it compulsory for you to be a mathematician, but you need to know how the numbers affect a business. Anyone can put together a great financial plan. A financial plan is simply a budget put together to reflect your goals, new income and time. How to write a financial plan? You can be as creative and innovative as you want as long as you are succeeding in accomplishing the following goals. Be as creative as you want, as no two plans look alike. Go through he following points on making a financial plan: a) Set a time frame State clearly where you want to be after five, ten or thirty years? Establish how you want how your financial life will look like at these points. b) Plot your income: Your job may not be your only means of income. A side business or making money online are options for extra income. An income statement is one of the three parts that make a financial plan. The income statement expresses your revenue and expenses, providing you a clear financial picture. c) Monitoring cash flow Preparing a cash-flow estimation allows you to monitor the flowing in and out of cash, thus allowing you to prepare for a surplus or a loss. The best way is to include two columns for each month of operation. Research into necessary costs and dont forget your life insurance, health insurance, car insurance, etc. c) A balance sheet. The balance sheet in a financial plan is very important as it balances the assets and fixed assets against all the liabilities. The balance sheet helps to measure the financial health of a business, as it projects its net worth. d) Luxury costs Think about on what kind of money youll need to live the lifestyle you want. Expensive cars, nice house, education can be considered a luxury cost. e) Investments Investments are a great way to counteract against
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How To Write A Financial Plan?
BUSINESS ENGLISH COMMUNICATION inflation. Invest in stocks, mutual funds, bonds, real estate, gold, collections, what ever suits you. But make sure you know what youre doing. Its wise to not to put all of your eggs in one basket. Your financial security should become more and more important as you age. Its always better to go with the conservative approach when writing a financial plan. People get tempted to paint too much of a rosy picture. Dont get too fancy when you are preparing your financial plan. One can always use Standardized Financial Sheets. Decide upon an appropriate Accounting Method. Remember to follow one method for all of your accounts, to make things easier later on.
How to Write the Financial Section of a Business Plan
An outline of your company's growth strategy is essential to a business plan, but it just isn't complete without the numbers to back it up. Here's some advice on how to include things like a sales forecast, expenses budget, and cash flow statement. A business plan is all conceptual until you start filling in the numbers and terms. The sections about your marketing plan and strategy are interesting to read, but they don't mean a thing if you can't justify your business with good figures on the bottom line. You do this in a distinct section of your business plan for financial forecasts and statements. The financial section of a business plan is one of the most essential components of the plan, as you will need it if you have any hope of winning over investors or obtaining a bank loan. Even if you don't need financing, you should compile a financial forecast in order to simply be successful in steering your business. "This is what will tell you whether the business will be viable or whether you are wasting your time and/or money," says Linda Pinson, author of Automate Your Business Plan for Windows (Out of Your Mind 2008) and Anatomy of a Business Plan (Out of Your Mind 2008), who runs a publishing and software business Out of Your Mind and Into the Marketplace. "In many instances, it will tell you that you should not be going into this business." The following pages will cover what the financial section of a business plan is, what it should include, and how you should use it to not only win financing but to better manage your business. Dig Deeper: Generating an Accurate Sales Forecast How to Write the Financial Section of a Business Plan: The Purpose of the Financial Section Let's start by explaining what the financial section of a business plan is not. Realize that the financial section is not the same as accounting. Many people get confused about this because
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UNIT 11 FINANCIAL PLANNING the financial projections that you include -- profit and loss, balance sheet, and cash flow -look similar to accounting statements your business generates. But accounting looks back in time, starting today and taking an historical view. Business planning or forecasting is a forward-looking view, starting today and going forward into the future. "You don't do financials in a business plan the same way you calculate the details in your accounting reports," says Tim Berry, president and founder of Palo Alto Software, who blogs at bplans.com and is writing a book, The Plan-As-You-Go Business Plan. "It's not tax reporting, it's an elaborate educated guess." What this means, says Berry, is that you summarize and aggregate more than you might with accounting, which deals more in detail. "You don't have to imagine all future asset purchases with hypothetical dates and hypothetical depreciation schedules to estimate future depreciation," he says. "You can just guess based on past results. And you don't spend a lot of time on minute details in a financial forecast that depends on an educated guess for sales."
But the most important reason to compile this financial forecast is for your own benefit, so that you understand how you project that your business will do. "This is an ongoing, living document. It should be a guide to running your business," Pinson says. "And at any particular time you feel you need funding or financing then you are prepared to go with your documents."
If there is a rule of thumb when filling in the numbers in the financial section of your business plan, it's this: be realistic. "There is a tremendous problem with the hockey-stick forecast" that projects growth as steady until it shoots up like the end of a hockey stick, Berry says. "They really aren't credible." Berry, who acts as an angel investor with the Willamette Angel Conference, says that while a startling growth trajectory is something that would-be investors would love to see, it's most often not a believable growth forecast. "Everyone wants to get involved in the next Google or Twitter, but every plan seems to have this hockey stick forecast. Sales are going along flat but six months from now there is a huge turn and everything gets amazing, assuming they get the investors' money," Berry says. The way you come up a credible financial section for your business plan is to demonstrate that it's realistic. One way, Berry says, is to break the figures into components, by sales channel or target market segment, and provide realistic estimates for sales and revenues. "It's not exactly data because you're still guessing the future. But if you break the guess into component guesses and look at each one individuals, it somehow feels better," Berry says. "Nobody wins by overly optimistic or overly pessimistic forecasts." Dig Deeper: What Angel Investors Look For How to Write the Financial Section of a Business Plan: The Components of a Financial Section
The purpose of the financial section of a business plan is two-fold. You're going to need it if you are seeking investment from venture capitalists, angel investors, or even smart family members. They are going to want to see numbers that say your business will grow -- and quickly -- and that there is an exit strategy for them on the horizon, during which they can make a profit. Any bank or lender will also ask to see these numbers as well to make sure you can repay your loan.
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BUSINESS ENGLISH COMMUNICATION A financial forecast isn't necessarily compiled in sequence. And you most likely won't present it in the final document in the same sequence you compile the figures and documents. Berry says that it's typical to start in one place and jump back and forth. For example, what you see in the cash-flow plan might mean going back to change estimates for sales and expenses. Still, he says that it's easier to explain in sequence, as long as you understand that you don't start at step one and go to step six without looking back -- a lot -- in between. Start with a sales forecast. Set up a spreadsheet projecting your sales over the course of three years. Set up different sections for different lines of sales and columns for every month for the first year and either on a monthly or quarterly basis for the second and third years. "Ideally you want to project in spreadsheet blocks that include one block for unit sales, one block for pricing, a third block that multiplies units times price to calculate sales, a fourth block that has unit costs, and a fifth multiplies units times unit cost to calculate cost of sales (also called COGS or direct costs)," Berry says. "Why do you want cost of sales in a sales forecast? Because you want to calculate gross margin. Gross margin is sales less cost of sales, and it's a useful number for comparing with different standard industry ratios." If it's a new product or a new line of business, you have to make an educated guess. The best way to do that, Berry says, is to look at past results. Create an expenses budget. You're going to need to understand how much it's going to cost you to actually make the sales you have forecast. Berry likes to differentiate between fixed costs (i.e., rent and payroll) and variable costs (i.e., most advertising and promotional expenses), because it's a good thing for a business to know. "Lower fixed costs mean less risk, which might be theoretical in business schools but are very concrete when you have rent and payroll checks to sign," Berry says. "Most of your variable costs are in those direct costs that belong in your sales forecast, but there are also some variable expenses, like ads and rebates and such." Once again, this is a forecast, not accounting and you're going to have to estimate things like interest and taxes. Berry recommends you go with simple math. He says multiply estimated profits times your best guess tax percentage rate to estimate taxes. And then multiply your estimated debts balance times an estimated interest rate to estimate interest. Develop a cash flow statement. This is the statement that shows physical dollars moving in and out of the business. "Cash flow is king," Pinson says. You base this partly on your sales forecasts, balance sheet items, and other assumptions. If you are operating an existing business, you should have historical documents, such as profit and loss statements and balance sheets from years past to base these forecasts on. If you are starting a new business and do not have these historical financial statements, you start by projecting a cash flow statement broken down into 12 months. Pinson says that it's important to understand when compiling this cash flow projection that you need to choose a realistic ratio for how many of your invoices will be paid in cash, 30 days, 60 days, 90 days and so on. You don't want to be surprised that you only collect 80 percent of your invoices in the first 30 days when you are counting on 100 percent to pay your expenses, she says. Some business planning software programs will have these formulas built in to help you make these projections. Income projections. This is your pro forma profit and loss statement, detailing forecasts for your business for the coming three years. Use the numbers that you put you're your sales forecast, expense projections, and cash flow statement. "Sales, lest cost of sales, if gross margin," Berry says. "Gross margin, less expenses, interest and taxes, is net profit." Deal with assets and liabilities. You also need a projected balance sheet. You have to deal with assets and liabilities that aren't in the profits and loss and project the net worth of your business at the end of the fiscal year. Some of those are obvious and affect you at only the beginning, like start-up assets. A lot are not obvious. "Interest is in the profit and loss, but repayment of principle isn't," Berry says. "Taking out a loan, giving out a loan, and inventory show up only in assets -- until you pay for them." So the way to compile this is to start with
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UNIT 11 FINANCIAL PLANNING assets, and estimate what you'll have on hand, month by month for cash, accounts receivable (money owed to you), inventory if you have it, and substantial assets like land, buildings, and equipment. Then figure what you have as liabilities -- meaning debts. That's money you owe because you haven't paid bills (which is called accounts payable) and the debts you have because of outstanding loans. Break-even analysis. The break-even point, Pinson says, is when your business' expenses match your sales or service volume. The three-year income projection will enable you to undertake this analysis. "If your business is viable, at a certain period of time your overall revenues will exceed your overall expenses, including interest." This is an important analysis for potential investors, who want to know that they are investing in a fast-growing business with an exit strategy. Dig Deeper: How to Price Business Services How to Write the Financial Section of a Business Plan: How to Use the Financial Section One of the biggest mistakes business people make is to look at their business plan, and particularly the financial section, only once a year. "I like to quote former President Dwight D. Eisenhower," says Berry. "'The plan is useless but planning is essential.' What people do wrong is focus on the plan and figure once the plan is done it's forgotten. It's really a shame because they could have used it as a tool for managing the company." In fact, Berry recommends that business executives sit down with the business plan once a month and fill in the actual numbers in the profit and loss statement and compare those numbers with projections. And then use those comparisons to revise projections in the future.
Pinson also recommends that you undertake a financial statement analysis to develop a study of relationships and comparisons of items in your financial statements, comparative financial statements over time, and even comparing your statements to those of other businesses. Part of this is a ratio analysis. She recommends that you do some homework and find out some of the prevailing ratios used in your industry for liquidity analysis, profitability analysis, and debt and compare those standard ratios with your own.
"This is all for your own benefit. That's what financial statements are for. You should be utilizing your financial statements to measure your business against what you did in prior years or to measure your business against another business like yours," she says.
If you are using your business plan to attract investment or get a loan, you may also include a business financial history as part of the financial section. This is a summary of your business from start to the present. Sometimes a bank might have a section like this on a loan application. If you are seeking a loan, you may need to add supplementary documents to the financial section, such as the owner's financial statements, listing assets and liabilities. All of the various calculations you need to assemble the financial section of a business plan are a good reason to look for business planning software, so you can have this on your computer and make sure you get this right. Software programs also let you use some of your projections in the financial section to create pie charts or bar graphs that you can use elsewhere in your business plan to highlight your financials, your sales history, or your projected income over three years.
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Persuasive Projections You can avoid some of the most common mistakes by following this list of dos and don'ts. Making Your Financials Add Up No business plan is complete until it contains a set of financial projections that are not only inspiring but also logical and defensible. How many years should my financial projections cover for a new business? Some guidelines on what to include for a new business. (inc.com)
Write your own financial plan
BIBLIOGRAPHY:
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"It's a pretty well-known fact that if you are going to seek equity investment from venture capitalists or angel investors," Pinson says, "they do like visuals." Dig Deeper: How to Protect Your Margins in a Downturn Related Links: Making It All Add Up: The Financial Section of a Business Plan One of the major benefits of creating a business plan is that it forces entrepreneurs to confront their company's finances squarely.
UNIT 12 - FINANCE
UNIT 12
12.1. INTRODUCTION 12.2. THE OBJECTIVES OF THE UNIT TIME ALLOCATED 12.3. FINANCE 12.4. SELF-ASSESSMENT GUIDE
Forecasting your financial gains is of huge importance for the business
Forecasting financial gains Firm financial vocabulary Practice
FINANCE 12.1. INTRODUCTION 12.2. THE OBJECTIVES OF THE UNIT The time allocated for the unit: hours 2
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Financial Forecasting
Financial Forecasting describes the process by which firms think about and prepare for the future. The forecasting process provides the means for a firm to express its goals and priorities and to ensure that they are internally consistent. It also assists the firm in identifying the asset requirements and needs for external financing. For example, the principal driver of the forecasting process is generally the sales forecast. Since most Balance Sheet and Income Statement accounts are related to sales, the forecasting process can help the firm assess the increase in Current and Fixed Assets which will be needed to support the forecasted sales level. Similarly, the external financing which will be needed to pay for the forecasted increase in assets can be determined. Firms also have goals related to Capital Structure (the mix of debt and equity used to finance the firms assets), Dividend Policy, and Working Capital Management. Therefore, the forecasting process allows the firm to determine if its forecasted sales growth rate is consistent with its desired Capital Structure and Dividend Policy. The forecasting approach presented in this section is the Percentage of Sales method. It forecasts the Balance Sheet and Income Statement by assuming that most accounts maintain a fixed proportion of Sales. This approach, although fairly simple, illustrates many of the issues related to forecasting and can readily be extended to allow for a more flexible technique, such as forecasting items on an individual basis.
Financial Forecasting
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UNIT 12 - FINANCE
What is financial forecasting? What do you have to consider when you do financial forecast? What is the importance of financial forecasting?
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1 Although some managers use the terms forecasting, planning and modelling indiscriminately, they are not the same things. A forecast is a prediction about a future condition or situation. In terms of a business, financial forecasting means looking ahead to a point in the future and trying to estimate the financial situation that the company will be in at that time. Decisions about whether to spend more or less money on a project today will be determined by financial forecasting. A company needs to feel secure that their future finances will be able to recuperate the money they have spent and keep their bank balances healthy. 2 Most organisations with strong financial departments spend a lot of time and effort on financial forecasting. The nature of the business world means that managers need to look ahead and plan for a future that is in no way certain. Financial forecasting helps a company to make important decisions today that will affect the company in the future. These decisions affect things like whether to spend or borrow money, where to invest or when to start a new project. 3 The difficulty with financial forecasting is that it involves uncertainty. The future is uncertain and a single financial policy can have numerous repercussions. However, when businesses draw up strategies to deal with risk management they build in forecasting procedures which strengthen the companys position. Risk cannot be eliminated by financial forecasting but it is beneficial for a company to have a better understanding of what the future could hold. Companies accept that uncertainty is an integral part of any financial forecast. 4 This is a difficult question to answer. What is clear however is that managers should always establish how much accuracy they can expect from a financial forecast. Managers have to decide how much money is worth investing in a forecasting project which is only going to have a certain amount of accuracy. Sometimes it is the case that the benefits of a financial forecast are not worth its cost. 5 Another important thing to consider is the timing of a financial forecast. Forecasts necessarily need to be updated because new information comes to light and things are constantly changing. So managers need to think about a series of financial forecasts, not just one. The question then becomes how often do forecasts need to be made? Each time t here is an updated forecast there will be an additional cost. Linked to this is the need to establish how far into the future a forecast needs to reach. A ten year forecast will be more complicated and expensive than a two year forecast. (britishcouncil.org)
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UNIT 12 - FINANCE
UNIT 13
13.1. INTRODUCTION 13.2. THE OBJECTIVES OF THE UNIT TIME ALLOCATED 13.3. THE SEQUENCE OF TENSES 13.4. SELF-ASSESSMENT GUIDE
Knowing how to organize your speech is very important in the study of business English
Rules of sequence of tenses Use of sequence of tenses Practice
THE SEQUENCE OF TENSES 13.1. INTRODUCTION 13.2. THE OBJECTIVES OF THE UNIT The time allocated for the unit: hours 2
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Sequence of Tenses The tense of a verb in the subordinate clause changes in accordance with the tense of the verb in the main clause. The basic rules are as follows: Rule 1 If the verb in the principal clause is in the present or the future tense, the verb in the subordinate clause may be in any tense, depending upon the sense to be expressed. He says that he is fine He says that he was fine. He says that he will be fine. He will say that he is fine. He will say that he was fine. He will say that he will be fine. Rule 2 If the tense in the principal clause is in the past tense, the tense in the subordinate clause will be in the corresponding past tense. He said that he would come. He told me that he had been ill. I knew that he would not pass. We noticed that the fan had stopped. There are, nevertheless, a few exceptions to this rule. A past tense in the main clause may be followed by a present tense in the subordinate clause when the subordinate clause expresses some universal truth. Copernicus proved that the earth moves round the sun. The teacher told us that honesty is the best policy. He told me that the Hindus burn their dead. A subordinate clause expressing place, reason or comparison may be in any tense, according to the sense to be expressed. He didnt get the job because his English isnt good. A fishing village once existed where now lies the city of Mumbai. If the subordinate clause is an adjective clause, it may be in any tense as is required by the sense. Yesterday I met a man who sells balloons. Yesterday I met a man who sold me a balloon. Rule 3 Note that when the subordinate clause is introduced by the conjunction of purpose that, the following rules are observed. We use may in the subordinate clause when the main clause is in the present tense. We use might in the subordinate clause when the main clause is in the past tense.
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UNIT 12 - FINANCE I study that I may pass. I will study that I may pass. I studied that I might pass. We eat that we may live. He ate that he might not die. Rule 4 If the principal clause is in the future tense, we do not use future tense in subordinating clauses beginning with when, until, before, after etc. I will call you when dinner is ready. (NOT I will call you when dinner will be ready.) I shall wait until you return. (NOT I shall wait until you will return.) Rule 5 Expressions such as as if, if only, it is time and wish that are usually followed by past tenses. I wish I was a bit taller. It is time we started working. He talks as if he knew everything.
Sequence of tenses quiz July 3, 2011 Complete the following sentences using appropriate verb forms. 1. You will find Coca-Cola wherever you . a) Go b) Will go c) Would go 2. He would never do anything that .. against his conscience. a) Goes b) Will go c) Went 3. I will lend it to you on condition that you it back tomorrow. a) Bring b) Will bring c) Would bring 4. I .. a good time whether I win or lose. a) Will have b) Had c) Have 5. One day the government will ask people what they .. a) Want b) Will want c) Wanted 6. I dont know where she . tomorrow.
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BUSINESS ENGLISH COMMUNICATION a) Will be b) Is c) Was 7. If I had lots of money, I would give some to anybody who .. for it. a) Ask b) Asked c) Had asked 8. I have brought my tennis things, just in case we time for a game tomorrow. a) Have b) Will have c) Had 9. I will go where you a) Go b) Will go c) Would go 10. I will tell you when I a) Finished b) Have finished c) Will finish
Fill in the blanks using appropriate verb forms. Observe the rule of the sequence of tenses. 1. I found that my son awake.
2. The pickpocket confessed that he . (pick) my pocket. 3. He was so tired that he .. scarcely stand.
4. He said that I a lazy good-for-nothing boy.
5. No one could explain how the prisoner .. (escape) from the prison.
6. Euclid proved that the three angles of a triangle equal to two right angles.
8. The passage is so difficult that I not comprehend it. 9. The boy was so indolent that he .. not pass. 10. In my perplexity I requested my guide to tell me what I .. to do.
7. Italy went to war that she .. (extend) her empire.
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UNIT 12 - FINANCE BIBLIOGRAPHY: Mascul Bill, Business Vocabulary in Use, Cambridge University Press, 2002 Trappe Tonya, Tullis Graham, Intelligent Business, coursebook, Intermediate Business, Pearson Education, 2005 Cotton Davis, Falvey David, Kent Simon, Market Leader, Business English coursebook, Pearson Education, 2006
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UNIT 14
14.1. INTRODUCTION 14.2. THE OBJECTIVES OF THE UNIT TIME ALLOCATED 14.3. REVIEW 14.4. SELF-ASSESSMENT GUIDE
This unit reviews the vocabulary studies so far.
Review of vocabulary
REVIEW 14.1. INTRODUCTION 14.2. THE OBJECTIVES OF THE UNIT The time allocated for the unit: hours 2
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UNIT 14 REVIEW
1 Most of our have been working with us for a number of years. A supplies B suppliers C supporters D supplements 2 Unfortunately the recent takeover will result in a number of.. at the plant. A rationalisations B dealings C redundancies D exchanges
3 You will see from the catalogue that our prices are very.. . A competitive B competent C completed D compatible
4 The price of the catalogue is against your first order. A removable B replaceable C rechargeable D refundable 5 All items in this range will be from 27 April. A suitable B portable C available D accessible
6 The assignment arrives at the warehouse on Monday and will be. immediately. A unloaded B emptied C undone D unsent
7 Unfortunately it is .to keep the complete range in stock. A insufficient B uneconomic C uncertain D invalid
8 After rationalisation the company was.. and its order book was full. A in good time B in good shape C in good spirits D in good health 9 Artemis gives us a good price on this because they are our ... A single B one C individual D sole
10 I would be grateful if you could let me have a detailed.., including prices and delivery terms. A quotation B term C offer D order
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Choose the best word to fit the gap.
Choose the best word to fit the gap. 1 The company saw net profits fall as a result of the. in the industry world-wide. A downfall B downgrade C downturn D downward
2 It is important for many small businesses to improve their credit.. and ensure customers pay on time. A limit B control C risk D term
3 All letters of credit should include an expiry date when payment is. . A called B complete C ready D due 4 We apologise for the difficulty we are experiencing in paying your ..account. A delayed B waiting C outstanding D owing
5 Thank you for your .of $500 which we received today. A remittance B remission C remains D remuneration
6 The credit terms.. that payment should be on presentation of the goods. A remind B stipulate C agree D settle 7 Its important to customer references when offering credit. A take on B take down C take up D take in 8 If you do not pay your bill within the next few days we will have to consider taking legal. . A prosecution B action C instruction D presentation
9 He was offered a bank.. when the company experienced financial problems. A payment B credit C overdraft D debt
10 If customers fail to. their bills you can be left with a serious cashflow problem. A meet B charge C invoice D state
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UNIT 14 REVIEW
1 The company will be a new range of health foods over the next few months. A promoting B encouraging C competing D supporting
2 Although prices have remained. for the past two years we are expecting a sharp rise in the near future. A still B immobile C same D static 3 This particular of ice cream is supposed to contain very little fat. A name B brand C label D product
5 The sales. for the next few months is not particularly optimistic. A figures B drive C forecast D trend
6 The advertising company have come up with a catchy new ..for the car. A slogan B saying C image D feature 7 Its going to be difficult to break the Far East market but I believe it will become a key market for us. A through B up C into D down
8 Were hoping that the new software package is going to make a big . A effect B impact C influence D mark 9 Supermarkets often find point of sale very useful when introducing new products to their customers. A displays B exhibits C presentations D exhibitions
10 When deciding what kind of advertising to use its important to find out as much as possible about your. . A companions B competitions C competitors D components
4 Their products are only available through selected.. . A outlooks B outlets C outlines D outfits
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Choose the best word to fit the gap.
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UNIT 15 ACCOUNTANCY
UNIT 15
15.1. INTRODUCTION 15.2. THE OBJECTIVES OF THE UNIT TIME ALLOCATED 15.3. ACCOUNTANCY 15.4. SELF-ASSESSMENT GUIDE
This unit presents some of the most important vocabulary terms in accountancy
Vocabulary introduction Review of vocabulary Practice
ACCOUNTANCY 15.1. INTRODUCTION 15. THE OBJECTIVES OF THE UNIT The time allocated for the unit: hours 2
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Law, rules and standards In most continental European countries, and in Japan, there are laws relating to accounting, established by the government. In the US, companies whose stocks are traded on public stock exchanges have to follow the rules set by the Securities and Exchange Commission (SEC), a government agency. In Britain, the rules, which are called
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Auditing Auditing means examining a companys system of control and the accuracy or exactness of its records, looking for errors or possible fraud: where the company may have deliberately given false information. An internal audit is carried out by a companys own accountants or internal auditors. An external audit is done by independent auditors: auditors who are not employees of the company. The external audit examines the truth and fairness of financial statements. It tries to prevent what is called creative accounting which means recording transactions and values in a way that produces a false result usually an artificially high profit. There is always more than one way of presenting accounts. The accounts of British companies have to give a true and fair view of their financial situation. This means that the financial statements must give a correct and reasonable picture of the companys current condition.
Accounting Accounting involves recording and summarizing an organizations transactions or business deals, such as purchases and sales, and reporting them in the form of financial statements. In many countries, the accounting or accountancy profession has professional organizations which operate their own training and examination system, and make technical and ethical rules: these relate to accepted ways of doing things. Bookkeeping is the day-to-day recording of transactions. Financial accounting includes bookkeeping, and preparing financial statements for shareholders and creditors (people or organizations who have lent money to a company) Management accounting involves the use of accounting data by managers, for making plans and decisions.
Accounting and accountancy
UNIT 15 ACCOUNTANCY standards, have been established by independent organizations such as the Accounting Standards Board (ASB), and by the accountancy profession itself. Companies are expected to apply or use these standards in their annual accounts in order to give a true and fair view. Companies in most English-speaking countries are largely founded by shareholders, both individuals and financial institutions. In these countries, the financial statements are prepared for shareholders. However, in many continental European countries businesses are largely founded by banks, so accounting and financial statements are prepared for creditors and the tax authorities. Bookkeeping
Double-entry bookkeeping
Zaheer Younis works in the accounting department of a trading company: I began my career as a bookkeeper. Bookkeepers record the companys daily transactions: sales, debts, expenses and so on. Each type of transaction is recorded in a separate account the cash account, the liabilities account, and so on. Doubleentry bookkeeping is a system that records two aspects of every transaction. Every transaction is both a debit a deduction in one account and a corresponding credit an addition in another. For example, if a company buys some raw materials the substances and components used to make products that it will pay for a month later, it debits its purchase account and credits the supplier account. If the company sells an item on credit, it credits the sales account, and debits the customers account. As this means the level of the companys stock goods ready for sale is reduced, it debits the stock account. There is a corresponding increase in its debtors customers who owe money for goods or services purchased and the debtors or accounts payable account is credited. Each account records debits on the left and credits on the right. If the bookkeepers do their work correctly, the total debits always equal the total credits. BrE: debtors; AmE: accounts receivable BrE: creditors; AmE: accounts payable BrE: stock; AmE: inventory Day books and ledgers For accounts with a large number of transactions, like purchase and sales, companies often record the transactions in day books or journals, and then put a daily or weekly summary in the main double-entry records. In Britain, they call the main books of accounts nominal ledgers. Creditors suppliers to whom the company owes money for purchases made on credit are recorded in a
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BUSINESS ENGLISH COMMUNICATION bought ledger. They still use these names, even though these days all the information is on a computer. Note: In Britain the terms debtors and creditors can refer to people or companies that owe or are owed money, or to the sums of money in an account or balance sheet. Balancing the books At the end of an accounting period, for example a year, bookkeepers prepare a trial balance which transfers the debit and credit balances of different accounts onto one page. As always, the total debit should equal the total credit. The accountants can then use these balances to prepare the organizations financial statements. Depreciation and amortization
Fixed assets A companys assets are usually divided into current assets like cash and stock inventory, which will be used or converted into cash in less than a year, and fixed assets such as buildings and equipment, which will continue to be used by the business for many years. But fixed assets wear out become unusable, or become obsolete out of date, and eventually have little or no value. Consequently fixed assets are depreciated: their value on a balance sheet is reduced each year by a charge against profits on the profit and loss account. In other words, part of the cost of the asset is deducted from the profits each year. The accounting technique of depreciation makes in unnecessary to charge the whole cost of a fixed asset against profits in the year it is purchased. Instead it can be charged during all the years it is used. This is an example of the matching principle. BrE: fixed assets; AmE: property, plant and equipment Valuation Assets such as buildings, machinery and vehicles are grouped together under fixed assets. Land is usually not depreciated because it tends to appreciate, or gain in value. British companies occasionally revalue calculate a new value for appreciating fixed assets like land and buildings in their balance sheets. The revaluation is at either current replacement cost how much it would cost to buy new ones, or at net realizable value (NVR) how much they could be sold for. This is not allowed in the USA. Apart from this exception, appreciation is only recorded in countries that use inflation accounting system. Companies in countries which use historical cost accounting recording only the original purchase price of assets do not usually record an estimated market value the price at which something could be sold today. The conservatism and
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UNIT 15 ACCOUNTANCY objectivity principles support this; and where the company is a going concern, the market value of fixed assets is not important. Depreciation systems The most common system of depreciation for fixed assets is the straight-line method which means charging equal annual amounts against profit during the lifetime of the asset (e.g. deducting 10% of the cost of an assets value from profits every year for 10 years). Many continental European countries allow accelerated depreciation: business can deduct the whole cost of an asset in a short time. Accelerated depreciation allowances are an incentive to investment: a way to encourage it. For example, if a company deducts the entire cost of an asset in a single year, it reduces its profits, and therefore the amount of tax it has to pay consequently new assets, including the buildings, can be valued at zero on balance sheets. In Britain, this would not be considered a true and fair view of the companys assets.
Accounting and accountancy
What type of work does each person do, what is the name of each job? Look at A and B to help you. 1. I record all the purchases and sales made by this department. 2. This month, Im examining the accounts of a large manufacturing company. 3. I analyze the sales figures from the different departments and make decisions about our future activities. 4. I am responsible for preparing our annual balance sheet. 5. When the accounts are complete. I check them before they are presented to the external auditors. Match the two parts of the sentence. Look at C to help you. 1. In Britain 2. In most of continental Europe and Japan 3. In the USA 4. In Britain and the USA 5. In much of continental Europe a. Accounting rules are established by a government agency b. Companies are mainly funded by shareholders and stockholders c. Accounting rules are set by an independent organization
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BUSINESS ENGLISH COMMUNICATION d. The major source of corporate finance is banks e. Accounting rules are set by the government
Bookkeeping Match the words in the box with the definitions below. Look at A and B to help you. credit creditors ledger stock debit debtors
1. An amount entered on the left-hand side of an account, recording money paid out 2. A book of accounts 3. Customers who owe money for goods or services not yet paid for 4. An amount entered on the right-hand side of an account, recording a payment received 5. Goods stored ready for sale 6. Suppliers who are owed money for purchases not yet paid for
Complete the sentences. Look at A, B and C opposite to help you. 1. shows where money comes from and where it goes: it is always transferred from one to another one. Every event is entered twice once as a credit and once a . 2. Most businesses record very frequent or numerous transactions in ..or . 3. The main account books are called ., and the book relating to creditors is called the.. . 4. In order to prepare financial statements, companies do a ..which copies all the debit and credit balances of different accounts onto a single page.
Complete the sentences using debit or credit. Look at A to help you. 1. If you buy new assets, you the cash or capital account. 2. If you pay some bills, you the liabilities account. 3. If you buy materials from a supplier on 60 days credit, you the purchases account and .the suppliers account. 4. If you sell something to a customer who will pay 3o days later, you the sales account and the customers account. Depreciation and amortization
Match the words in the box with the definitions below. Look at the A and B to help you.
1. 2. 3. 4. 5. 6.
To record something at a different price Assets that will no longer be in the company in 12 months time To increase rather than decrease in value Out of date, needing to be replaced by something newer Assets that will remain in the company for several years To become used and damaged
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appreciate obsolete current assets revalue fixed assets wear out
UNIT 15 ACCOUNTANCY Match the nouns in the box with the verbs below to make word combinations. Then use some of the word combinations to complete the sentences below. Look at A, B, and C opposite to help you. cost profits fixed assets value market value purchase price
Deduct (1) Depreciate (1) Record (2) Reduce(2) 1. Because we ..the., we dont have to worry about the market value of fixed assets. 2. To depreciate .., we .part of theirfrom profits each year. 3. Because land usually appreciates, companies do not generally.its on the balance sheet. Match the two parts of the sentences. Look at B and C opposite to help you. 1. All fixed assets can appreciate if there is high inflation 2. Accelerated depreciation allows companies to 3. Fixed assets generally lose value, except for land, 4. The straight-line method of depreciation 5. Accelerated depreciation reduces companies tax bills, a) which usually appreciates. b) charges equal amounts against profits every year. c) remove some extremely valuable assets from their balance sheets. d) which encourages them to invest in new factories etc. e) but historical cost accounting ignores this.
Is accounting in your country based on standards, rules, laws or a mixture of these?
BIBLIOGRAPHY:
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UNIT 16
16.1. INTRODUCTION 16.2. THE OBJECTIVES OF THE UNIT TIME ALLOCATED 16.3. FINANCIAL STATEMENTS 16.4. SELF-ASSESSMENT GUIDE
The importance of correct fill in of a financial statement is of high importance for businesses
Types of financial statements Fill in of financial statements Practice
FINANCIAL STATEMENTS 16.1. INTRODUCTION 16.2. THE OBJECTIVES OF THE UNIT The time allocated for the unit: hours 2
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UNIT 16 FINANCIAL STATEMENTS
Balance sheet, 31 December 20.. ($000)

Current assets Fixed assets Total assets 3,500
Company law in Britain, and Securities and Exchange Commission in the US, require companies to publish annual balance sheets: statements for shareholders and creditors. The balance sheet is a document which has two halves. The totals of both halves are always the same, so they balance. One half shows a business assets, which are things owned by the company such as factories and machines, that will bring future economic benefits. The other half shows the companys liabilities, and its capital or shareholders equity. Liabilities are obligations to pay other organizations or people: money that a company owes, or will owe at a future date. These often include loans, taxes that will soon have to be paid, future pension payments to employees and bills from suppliers: companies which provide raw materials or parts. If the suppliers have given the buyer a period of time before they have to pay for the goods, this is known as granting credit. Since assets are shown as debits (as the cash or capital account was debited to purchase them), and the total must correspond with the total sum of the credits that is the liabilities and capital assets equal liabilities plus capital or A=L+C American and continental European companies usually put assets on the left and capital and liabilities on the right. In Britain, this was traditionally the other way round, but now, most British companies use a vertical format, with assets on the top and liabilities and the capital below. BrE: balance sheet: AmE: balance sheet or statement of financial position BrE: shareholders equity: AmE: stockholders equity
! Equity=a stock or any other security representing an ownership interest
Liabilities.. ..6,000 6,500 Shareholders equity ....4,000 10,000 Total liabilities and shareholders equity10,000
Balance sheet 1 Assets, liabilities and capital
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The balance sheet 2. Assets
In accounting, assets are generally divided into fixed and current assets. Fixed assets (or non-current assets) and investments, such as buildings and equipment, will continue to be used by the business for a long time. Current assets are things that will probably be used by the business in the near future. They include cash money available to spend immediately, debtors companies or people who owe money they will have to pay in the near future, and stock. If a company thinks a debt will not be paid, it has to anticipate the loss take action in preparation for the loss happening, according to the conservatism principle. It will write off, or abandon, the sum as a bad debt, and make provisions by charging a corresponding amount against profits: that is, deducting the amount of debt from the years profits. In accounting, assets are generally divided into fixed and current assets. Fixed assets (or non-current assets) and investments, such as buildings and equipment, will continue to be used by the business for a long time. Current assets are things that will probably be used by the business in the near future. They include cash money available to spend immediately, debtors companies or people who owe money
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Shareholders equity Shareholders' equity consists of all the money belonging to shareholders. Part of this is share capital the money the company raised by selling its shares. But shareholders equity also includes retained earnings: profits from previous years that have not been distributed paid out to shareholders as dividends. Shareholders equity is the same as the companys net assets, or assets minus liabilities. A balance sheet does not show how much money a company has spent or received during a year. This information is given in other financial statements: the profit and loss account and the cash flow statement.
UNIT 16 FINANCIAL STATEMENTS they will have to pay in the near future, and stock. If a company thinks a debt will not be paid, it has to anticipate the loss take action in preparation for the loss happening, according to the conservatism principle. It will write off, or abandon, the sum as a bad debt, and make provisions by charging a corresponding amount against profits: that is, deducting the amount of debt from the years profits. Valuation Manufacturing companies generally have a stock of raw material, work-in-progress partially manufactured products and products ready for sale. There are various ways of valuing stock or inventory, but generally they are valued at the lower cost or market, which means whichever figure is lower: their cost the purchase price plus the value of any work done on their items or the current market price. This is another example of conservatism: even if the stock is expected to be sold at a profit, you should not anticipate profits.
Tangible and intangible assets Assets can also be classified as tangible and intangible. Tangible assets are assets with a physical existence things you can touch such as property, plant and equipment. Tangible assets are generally recorded at their historical cost less accumulated depreciation charges the amount of their cost that has already been deducted from profits. This gives their net book value. Intangible assets include brand names legally protected names for a companys products, patents exclusive rights to produce a particular new product for a fixed period, and trade marks names or symbols that are put on products and cannot be used by other companies. Networks of contacts, loyal customers, reputation, trained staff or human capital, and skilled management can also be considered as intangible as assets. Because it is difficult to give an accurate value for any of these things, companies normally only record tangible assets. For this reason, a going concern should be worth more on the stock exchange than simply its net worth or net assets: assets minus liabilities. If a company buys another one at above its net worth because of its intangible assets the difference in price is recorded under assets in the balance sheet as goodwill.
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BUSINESS ENGLISH COMMUNICATION The balance sheet 3. Liabilities Liabilities Liabilities are amounts of money that a company owes, are generally divided into two types long term and current. Long term liabilities or non-current liabilities include bonds. Current liabilities are expected to be paid within a year of the date of the balance sheet They include: - Creditors largely suppliers of goods or services to the business who are not paid at the time of purchase - Planned dividends - Deferred taxes money that will have to be paid as tax in the future, although the payment does not have to be made now.
Accrued expenses Because of the matching principle, under which transactions and other events are reported in the periods to which they relate and not when cash is received or paid, balance sheets usually include accrued expenses. These are expenses that have accumulated or built up during the accounting year but will not be paid until the following year, after the date of the balance sheet. So accrued expenses are charged against income that is, deducted from profits even though the bills have not yet been received or the cash paid. Accrued expenses could include taxes and utility bills, for example electricity and water. Shareholders equity on the balance sheet Shareholders equity is recorded on the same part of the
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UNIT 16 FINANCIAL STATEMENTS balance sheet as liabilities, because it is money belonging to the shareholders or not the company. Shareholders equity includes: - The original share capital (money from stock or shares by the company - Share premium: money made if the company sells shares at above their face value written on them - Retained earnings: profits from previous years that have not been distributed to shareholders - Reserves: funds set aside from share capital and earnings, retained for emergencies or other needs BrE: share premium AmE: paid-in surplus
Are the following statements true or false? Find reasons for your answers in A and B opposite. 1. British and American balance sheets shows the same information, but arranged differently. 2. The revenue of the company in the past year is shown on the balance sheet. 3. The two sides or halves of a balance sheet always have the same total. 4. The balance sheet gives information on how much money the company has received from sales of shares. 5. The assets total is always the same as the liabilities total. 6. The balance sheet tells you how much money the company owes Complete the sentences.
..are companies that provide other companies with materials, components, etc. .are profits that the company has not distributed to shareholders. ..are things a company owns and uses in its business. ..consist of everything a company owes. ..consists of money belonging to a companys owners.
Make word combinations using a word from each box. Then use the word to complete the sentences below. DISTRIBUTE GRANT OWE PAY RETAIN LIABILITIES MONEY PROFITS EARNINGS CREDIT 1. We a lot of our because we dont any of our .to the shareholders.
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BUSINESS ENGLISH COMMUNICATION 2. Most businesses have customers who , because they .them 30 to 60 days. 3. We have a lot of ..that well have to ..later this year. Find words and expressions in A, B and C with the following meanings: 1. An amount of money that is owed but probably wont be paid 2. The accounting value of a company (assets minus liabilities) 3. A legal right to produce and sell a newly invented product for a certain period of time 4. The historical cost of an asset minus depreciation charges 5. The amount a company pays for another one, in excess of the net value of assets 6. A legally protected word, phrase, symbol or design use to identify a product 7. To accept that a debt will not be paid 8. To deduct money from profits because of debts that will not be paid 9. Products that are not complete or ready for sale 10. The amount of money owed by customers who have bought goods but not yet paid for them Match the two parts of the sentences. Look at A, B and C to help you. 1. A companys value on the stock exchange is neatly always 2. Brand names, trade marks, patents, customers, and qualified staff 3. Cash, money owed by customers, and inventory 4. Companies record inventory at the cost of buying or making the items 5. Companies write off bad debts, and make provisions 6. Land, buildings, factories and equipment a. Are current assets. b. Are examples if intangible assets. c. Are examples of tangible, fixed assets. d. by deducting the amount of profits. e. higher than the value of its net assets. f. not the current market price, whichever is lower.
Sort the following into current, fixed and intangible assets. Look at A and C to help you. buildings goodwill stock cash in the bank human capital land debtors investments reputation
Current assets Fixed assets Intangible assets . .. . . . ..
Are the following statements true or false? Find reasons for your answers in A, B and C opposite. 1. A current liability will be paid before the date balance sheet. 2. A liability that must be paid in 13 months time is classified as long-term. 3. A companys accrued expenses are like money an individual saves to pay bills in the future 4. Shareholders' equity consists of the money paid for shares, and retained earning 5. If companies retain part of their profits, this money no longer belongs to the owners. 6. Companies can sell shares at a higher value than the one stated on them
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UNIT 16 FINANCIAL STATEMENTS Find words in A, B and C opposite with the following meanings. 1. Money that will be paid in less than 12 months from the balance sheet date 2. The money that investors have paid to buy newly issues shares, minus the shares face value 3. Delayed, put off or postponed until a latter time 4. Build up or increased over a period of time
Think of a company you know well. Which are its most valuable assts? BIBLIOGRAPHY:
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UNIT 17
17.1. INTRODUCTION 17.2. THE OBJECTIVES OF THE UNIT TIME ALLOCATED 17.3. PRICING 17.4. SELF-ASSESSMENT GUIDE
Knowing the importance of prices on the market is crucial in developing a good business
Pricing vocabulary Pricing understanding vocabulary Practice
PRICING 17.1. INTRODUCTION 17.2. THE OBJECTIVES OF THE UNIT The time allocated for the unit: hours 2
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UNIT 17 PRICING
Most companies consider other factors, like demand competitors prices, sales targets and profit targets. Market penetration pricing: some companies launch products at a price that only gives them a very small profit, they want market share. This allows them to make profits later because of economies of scale, e.g. Bic pens, lighters and razors, Dell PCs. Market skimming: some customers will pay almost any price, e.g. for a new high-tech product, so the company can charge a really high price, then lower it to reach other market segments, e.g. Intel with new microchips. If a company has a higher demand for its products than its able to supply, it can raise its prices. This is other done by monopolists. Prestige pricing or image pricing: products positioned at the luxury end of the market need to have a high price: the target customer probably wont buy if they think the price is too low. e.g. BMW Rolex Going rate pricing: if a product is almost identical to competitors products, companies may charge the same price Prestige pricing or image pricing: products positioned at the luxury end of the market need to have a high price: the target customer probably wont buy if they think the price is too low. e.g. BMW Rolex Going rate pricing: if a product is almost identical to competitors products, companies may charge the same price Unit cost: the expenses involved in producing each individual product Sales target / profit target: the quantity of saves / profit a business wants to achieve Launch: to introduce a product into the market Market share: the proportion of total sales in the market Economies of scale: the cost of producing each unit
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Companies prices are influenced by production and distribution costs, both direct and indirect. Mark-up or cost plus pricing: some firms just calculate the unit cost and add a percentage.
BUSINESS ENGLISH COMMUNICATION decreases as the volume of production increases Market segment: groups of consumers with similar needs and wants Monopolists: companies that are the only supplier of a product or service Target customers: the customers whose needs the company wants to satisfy Retail pricing strategies - loss-leader pricing: retailers (e.g. supermarkets) often offer some items at a very low price that isnt profitable, to attract customers who then buy more products which are profitable. - Odd pricing or odd-even pricing: many producers and retailers believe a customer sees a price of 29.95 as in the 20 price range rather than the 30 one. - Elasticity: demand is elastic if sales respond directly to price variations e.g. if the price is cut, sales increase. If sales remain the same after a change in price, demand is inelastic.
Match the pricing strategies in the box with the statements below.
going-rate pricing mark-up pricing loss-leader pricing odd pricing market penetration prestige pricing market skimming
1. Because of our famous brand name and our reputation for quality, we can charge a very high price. 2. We never use whole numbers like $10 or $20. our prices always end in 95 or 99 cents. 3. We launch our products at high prices, and then reduce them a few months later to get more customers. 4. We just get the cost accountants to work out how much it costs to make the product, and add our profit. 5. Demand isnt very elastic, so we charge the same price as our main competitors. We actually sell a few products at breakeven price, but this brings in customers who always buy a lot of other things. We charge a really low price at first, because we want to sell many units of the product as possible.
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UNIT 17 PRICING
BIBLIOGRAPHY:
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Can you think of at least one producer or retailer that uses each of the pricing strategies mentioned here?
UNIT 18
18.1. INTRODUCTION 18.2. THE OBJECTIVES OF THE UNIT TIME ALLOCATED 18.3. INVESTMENTS 18.4. SELF-ASSESSMENT GUIDE
Making good investments can bring high profits to the company. This is the reason why understanding and using the specific English vocabulary is very important. The present unit deals with investment vocabulary.
What should companies invest in? Investment vocabulary Practice
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INVESTMENTS 18.1. INTRODUCTION 18.2. THE OBJECTIVES OF THE UNIT
UNIT 18 INVESTMENTS
Japanese companies invest in Vietnam
Japanese companies are flocking to Vietnam in record numbers seeking cheap labour and growth markets and business is booming for the Hanoi branch of Izakaya Yancha, a Japanese restaurant chain. Many Japanese men in their 40s like to hang out here with their Vietnamese girlfriends after going to karaoke, says Shinya Nakao, the restaurants manager. We expect more Japanese companies to move to Vietnam, so were planning to open a second branch this year and maybe some more after that. It may be bad news for these executives wives and children, who are increasingly being left at home as companies cut back once-generous expatriate packages. But the rising tide of Japanese investment is welcome in Vietnam, where several years of macroeconomic instability have dented confidence among investors. A record 208 Japanese companies set up in Vietnam last year, pledging to invest just over $1.8bn, according to Jetro, the Japanese trade promotion body. In 2010, 114 Japanese companies came to Vietnam, vowing to invest $2bn. While Japan still ranks behind Taiwan, South Korea and Singapore in terms of registered foreign investment capital in Vietnam, Japan is leading the way in terms of implemented investments, says Hirokazu Yamaoka, Jetros chief representative in Vietnam. The latest wave of investment, which has been propelled by the strong yen, is part of a broad push into emerging markets backed by the Japanese government, which is concerned about low growth and an ageing population at home. Tony Foster, managing partner of the Vietnam office of Freshfields Bruckhaus Deringer, the law firm, says Japanese companies have been jolted into action since the earthquake that struck the east of the country in March. Japanese companies are realising that theyre not going to survive just in Japan, says Mr Foster, who advised Mizuho, the banking group, last year on its $567m acquisition of a 15 per cent stake in Vietcombank, one of Vietnams biggest state-controlled institutions. The Japanese government is also supporting diversification into Vietnam for geopolitical reasons. Export-focused manufacturers such Bridgestone, the
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BUSINESS ENGLISH COMMUNICATION worlds biggest tyre maker, and Panasonic, the electronics group, are setting up factories in Vietnam to take advantage of cheap wages. Unskilled workers in Vietnam are typically paid a half to a third of the $300 a month their counterparts might receive in the manufacturing clusters of southern China. Companies such as Sapporo, the brewer, Mizuho, and Unicharm, which makes female hygiene products, are attracted by rapid domestic growth in Vietnam, which has one of the fastest-expanding middle classes in Asia, according to the Asian Development Bank. Until recently, many Japanese manufacturers were looking to China, but it is more and more difficult because the currency is strong and wage costs are rising rapidly, says Mr Yamaoka. There are also political issues between Japan and China. A senior executive from a Japanese trading house with a presence in Vietnam says Japanese companies like the political stability of one-party, Communist-ruled Vietnam, which comes free of the historical animosity and present-day rivalry that looms over China-Japan relations. However, wages and social tensions are also rising in Vietnam, which suffered a record number of labour strikes last year, as average annual inflation exceeded 18 per cent, the highest rate in Asia. But companies such as Tamron, which makes lenses for the worlds leading camera brands, are not deterred by this economic instability. Vietnam is very friendly for Japanese investors and the wage levels are acceptable, says Shoji Kono, a corporate vice-president at Tamron, which plans to build a Y1bn ($13m) factory near Hanoi that will eventually employ 2,000 people. Tamron set up its first overseas factory in Foshan, in the industrial heartland of Chinas Pearl River Delta. It is one of many global manufacturers, not just Japanese, that want to diversify their production away from China to cut costs and reduce their dependence on one manufacturing base a risk exposed last year by the floods in central Thailand and the earthquake and tsunami in Japan. Western diplomats say Japanese companies investing in Vietnam benefit from high-level political backing. Japan is one of Vietnams largest aid donors and political and security ties between the two countries are growing as both look anxiously over their shoulder at an ever more assertive China. Japan provided Vietnam with Y100bn of official development assistance in 2010, about a third of the total it provided to the whole of south-east Asia. Much of Japans aid is focused on infrastructure and Tokyo is not shy about directing its cash toward projects that directly benefit
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UNIT 18 INVESTMENTS Japanese companies, such as the large, new Lach Huyen port in Haiphong, northern Vietnam. While there are many opportunities, conditions in Vietnam are far from ideal for foreign investors. In addition to widespread corruption, red tape and high inflation, the countrys infrastructure is still underdeveloped. Tamron, along with many manufacturers, will be installing generators to protect against possible power cuts. But, says the executive from the Japanese trading house, Japanese companies and their shareholders and boards are more willing than their western counterparts to adapt to tough conditions in developing countries and play the long game. Japanese companies have a more long-term view, he says. We accept the situation, consider the best way forward, and situation, consider the best way forward, and dont complain to anybody. (ft.com)
Bid
Blue Chip Stocks Bond Capital
Capital stock
Commodities
Dividend
Equity . Equities Futures
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18.4. SELF-ASSESSMENT GUIDE The price a buyer is willing to offer for shares in a company. Stocks of leading companies with a reputation for stable growth and earnings. Certificate issued by companies and governments to its lenders Money and other property of companies used in transacting the business All shares representing ownership of a company Products such as agricultural products and natural resources (wood, oil and metals) that are traded on a separate, authorized commodities exchange A portion of a company's earnings which is paid to the shareholders/stockholders on a quarterly or annual basis. The value of stocks and shares; the net value of mortgaged property Stocks and shares which represent a portion of the capital of a company. Contracts to buy or sell securities at a future
BUSINESS ENGLISH COMMUNICATION date. All those who have access to inside information concerning the company. Buying or selling with the help of information know only to those connected with the business. Initial Public Offering - selling part of a company on the stock market. Put into circulation a number of a company's shares for sale. The debts and obligations of a company or an individual. Agreement by which a bank or building society lends money for the purchase of property, such as a house or apartment. The property is the security for the loan. Savings fund that uses cash from a pool of savers to buy securities such as stock, bonds and real estate. The right to buy and sell certain securities at a specified price and period of time. Transferable certificates showing ownership of stock, bonds, shares, options, etc. Owner of shares A licensed professional who buys and sells stocks and shares for clients in exchange for a fee, called a 'commission'. Money raised by companies to finance new ventures in exchange for percentage ownership. Return on investment shown as a percentage.
Insider Insider dealing/trading
IPO Issue
Liabilities Mortgage
Option
Securities
Shareholder. Stockbroker
Venture capital
Yield
In your opinion what type of investment would you do and why?
BIBLIOGRAPHY:
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Mutual fund
UNIT 18 INVESTMENTS
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UNIT 19
19.1. INTRODUCTION 19.2. THE OBJECTIVES OF THE UNIT TIME ALLOCATED 19.3. BUDGETING 19.4. SELF-ASSESSMENT GUIDE
Budgeting is of great importance in business practice and the awareness of the knowledge of vocabulary related to it offers the necessary information
Budgeting vocabulary Budgeting understanding Practice
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BUDGETING 19.1. INTRODUCTION 19.2. THE OBJECTIVES OF THE UNIT
UNIT 19 BUDGETING
THE worlds busiest train route, and one of the busiest air routes, is between Tokyo and Osaka, Japans two biggest metropolitan areas. On that corridor, the shinkansen, as Japans bullet trains are known, were born in 1964. They whizz 120,000 passengers a day smoothly from one place to another, on trains that leave every ten minutes. Although humans, not robots, are at the controls, the average delay is a miraculous 36 seconds. To take all those passengers by air would require 667 aircraft, each with 180 seats, or five times Japans fleet of Boeing 737s, estimates Macquarie, an investment bank. Undeterred, between March and August three low-cost airlines will have started operations in Japan. It would be a miracle if they could help hammer down train and plane fares in Japan, which are excruciating. For example, a one-way shinkansen ticket from Tokyo to Osaka costs 14,000 ($170), and there are no discounts for return fares or for booking early. But compared with Europe and other parts of Asia, where budget airlines have quickly gained market share, in Japan the low-cost model is expected to take time to take off. There are three main reasons for that, analysts say. First, all three newcomers have established parents. Peach, which started flying in March, and Air Asia Japan, which starts in August, are part-owned by ANA, one of Japans two main carriers. Jetstar Japan, which launches operations in July, is one-third owned by Japan Airlines (JAL). Such ties have usually hobbled low-cost airlines elsewhere: incumbents hate to cannibalise their own business. (Australia, where Qantas owns Jetstar, is an exception.) Analysts say the upstarts will thrive only if ANA and JAL step out of their way, letting them shake up the domestic tourist market. The big boys could then concentrate on long-haul and business travel. Second, the budget airlines may struggle to make similar profits to their lucrative low-cost counterparts in other countries because, despite deregulation, airport costs and fuel taxes in Japan remain among the highest in the world. That could limit expansion, though Jetstar Japan is boldly aiming for 100 aircraft by the end of the decade, up from three at its launch. Third, it will be hard to convince finicky Japanese passengers that low fares make up for the lack of comfort and convenience they are used to. Jetstar and Air Asia are using
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Bullet v budget Can low-cost airlines beat bullet trains?
BUSINESS ENGLISH COMMUNICATION Narita airport as their hub, which is expensive and timeconsuming to get to from Tokyo. The main carriers use Haneda, which is closer to the capital and cheaper. The shinkansen zoom out of the city centre, with no reservations needed. Miyuki Suzuki, the boss of Jetstar Japan, says her companys strategy is to use low fares to persuade people to make trips they would otherwise not have made at all. More tourists, she hopes, will start visiting Japans most far-flung islands. She says she will not go head-to-head with the shinkansen (though her airline will fly between Tokyo and Osaka). Peach and Air Asia Japan have their sights not only on domestic flights but also on the route between Tokyo and Seoul, the nearest foreign capital. They may be eyeing the East Asian market, where low-cost penetration lags behind the rest of Asia. Alas, none of Japans new budget carriers is expected to be as cut-throat as low-cost carriers elsewhere. Ms Suzuki says Jetstar Japan will allow its passengers to book through travel agents, which are still ubiquitous, as well as online. This is Japan, she says, with a sympathetic air unusual for a budget-airline boss. Its not all going to be self-service. (economist.com)
Read all the answers first. Choose the best one to complete the sentences: 1. ___ Which of these is not a source of income? a. Allowance b. Salary c. Interest d. Savings * 2. ___ Which of these are not expenses? a.Wages * b. Gifts c. Things we need d. Things we want
3. ___ What can help you buy your future wants and needs? a. Impulse buying b. Expenses c.Overspending d. Savings *
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UNIT 19 BUDGETING 4. ___ A budget helps you to a. buy everything you want. b. balance your income with your expenses.* c. overspend. d. earn more money. 5. ___ Which of these is not a reason to budget? a. To put you in control of your money. b. To determine how much money you have to spend. c. To increase your income. * d. To decrease your impulse spending
What make a good budget strategy?
BIBLIOGRAPHY:
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UNIT 20
20.1. INTRODUCTION 20.2. THE OBJECTIVES OF THE UNIT TIME ALLOCATED 20.3. REPORTED SPEECH 20.4. SELF-ASSESSMENT GUIDE
The correct use of the Reported Speech is very important in Business English
Understanding the rules of formation for the Reported Speech Understanding the use of the Reported Speech Practice
REPORTED SPEECH 20.1. INTRODUCTION 20.2. THE OBJECTIVES OF THE UNIT The time allocated for the unit: hours 2
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UNIT 20 REPORTED SPEECH
n acest proces timpurile sunt modificate (In this process the tenses are changed): Direct Speech Indirect Speech (vorbirea direct) (vorbirea indirect) Present Simple Past Simple Present Continuous Past Continuous Present Perfect Past Perfect Simple Simpl Past Simp e ast Perfect Sim le Past C ntinuous Past Perfect Continuous Future Future in the Past
Observaie (Observation): Future in the Past se formeaz: Forma afirmativ (affirmative form) Subiect + should /would + be+ verb ing Ill be writing to you soon She said she would be writing to me soon.
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Present Simple Past Simple I feel happy. He said he felt happy. Present Continuous Past Continuous Im sleeping now. He said he was sleeping then. Present Perfect Simple Past Perfect Simple I have just had a coffee He told me he had just had a coffee. Past Simple Past Perfect Simple I talked to him yesterday. He confessed to me he had talked to him Yesterday. Past Continuous Past Perfect Continuous What were you doing yesterday? He asked me what I had been doing the day before. Future Future in the Past Ill be washing the dishes. He said he would be washing the dishes.
Vorbirea indirect reprezint modalitatea prin care vorbitorul reproduce cuvintele altei persoane (The indirect speech represents the means of the speaker to express the words uttered by another person)
Adverbele sau structurile adverbiale de timp i loc necesit a fi schimbate (Adverbs or adverbial phrases of time and place need to be changed). Direct Speech Indirect Speech (vorbirea direct) (vorbirea indirect) here the e in this place in that place now then today (on) that day yesterday (on) the previous day (on) the day before la t (on) the prev ous night/evening/week night/evening/ eek to orrow next day/the following day next day/next the fol owing week day/week the day after two days later tomorrow after two days ago before this week/month that week/month
I. Punei urmtoarele propoziii la vorbirea indirect (Put the following sentences into indirect speech): 1. I live in London. 2. I have talked to Jim this morning. 3. Jim and Monique have been quarrelling for ages. 4. I had had this information. 5. Last night I arrived late at home. 6. I will ask him to give me the phone number. 7. That tea was expensive.
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UNIT 20 REPORTED SPEECH .. 8. Whenever I go to America I bring presents for my children. . II. Aici este scenariul unor secvene din filmul lui Stan i Bran Going Bye-Bye. Relateaz povestea folosind vorbirea indirect (Here is a script of some scenes in the Laurel and Hardys film Going Bye-Bye. Tell the story using indirect speech): Judge: Ladies and gentlemen of the jury have reached a verdict? Head of jury: Yes your honour. We the jury find the defendant, guilty as charged. Judge: Before I pass sentence I want to thank you gentlemen, on behalf of the state, for the valuable evidence you have furnished this court in bringing this criminal to justice. Its men like you this country should be proud of. Judge: The defendant will now stand up. Judge: Has the defendant anything to say on his behalf? Defendant (Butch): No Judge: I hereby sentence you to prison for the rest of your natural life. Stan Laurel: Arent you going to hang him? Defendant: You rats. Ill get even with you even if its the last thing I ever do.
1.
Direct speech : David : "There is an excellent band playing later on." Reported Speech : David said ... Direct speech : Christine : "I saw Amy at the bank on Monday." Reported Speech : Christine said ...
2.
3.
Direct speech : The driver : "I'm going to turn right at the traffic lights." Reported Speech : The driver said ... Direct speech : Jonathan: "I've returned the dictionary to the library". Reported Speech : Jonathan said .. Direct speech : The doctor : "I'll send you the results as soon as they arrive."
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4.
5.
BUSINESS ENGLISH COMMUNICATION Reported Speech : The doctor said ... 6. Direct speech : Reported Speech : Direct speech : Reported Speech : Direct speech : Reported Speech : Caroline : "Will you come to my party on Saturday?" Caroline ... Shop assistant: "Are you looking for something special?" The shop assistant ...
7.
8.
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Jack : "I'll lend you my grammar book if you think it will help. Jack said ...
UNIT 21 STOCK MARKET
UNIT 21
21.1. INTRODUCTION 21.2. THE OBJECTIVES OF THE UNIT TIME ALLOCATED 21.3. STOCK MARKET 21.4. SELF-ASSESSMENT GUIDE
Learning about stock market is helping in developing the business
Defining stock market Stock market vocabulary Practice
STOCK MARKET 21.1. INTRODUCTION 21.2. THE OBJECTIVES OF THE UNIT The time allocated for the unit: hours 2
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An Initial Public Offering (IPO) takes place when a private company raises capital by introducing its shares on the stock market and becomes a public limited company (plc). Before a private company can go public, it must comply with the requirements of regulators of the stock exchange (Securities and Exchange Commission in the US) and file an application giving full details of its accounts. Most companies prefer to use the services of an investment bank to manage or underwrite the offering.
Read the following statements. Which show the advantages of going public and which show the disadvantages? 1. Management will face pressure to produce positive quarterly results. 2. Outsiders may impose their views on management. 3. The value of the business may suddenly fluctuate. 4. More people will be aware of the companys existence. 5. The company will be obliged to disclose financial information. 6. The company can obtain finance without having to repay a debt. 7. Employees can exercise stock options. 8. Capital will be available for expansion. Work in pairs. Discuss the following statement made by Richard Branson before he decided to take Virgin Blue public and answer the questions below. The delightful thing about not being a public company is that we dont have to worry about foolish analysts who say stupid things. 1. Why do you think Richard Branson changed his mind? 2. When is better for a company to go public rather than stay private? 3. How would you decide whether or not to buy the shares of a company that was going public? 4. Can you think of an example of a company that has gone public? How successful has it been? Read the extract from a letter written by Larry Page and Sergey Brin, the founders of Google, the internet search
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UNIT 21 STOCK MARKET company. Google is not a conventional company. We dont intend to become one. Throughout Googles evolution as a privatelyheld company, we have managed Google differently. We have also emphasized an atmosphere of creativity and challenge, which has helped us provide unbiased, accurate and free access to information for those who rely on us around the world. What do you know about the company? Read the text and answer the questions. 1. What is unusual about the way Google organised its IPO? 2. What are the two principles on which Google is founded? Glossary Drop dead mind its own business Racket (US shakedown) - a way of obtaining money by fraud or deception Kickbacks (Br backhanders) sums of money paid to someone in exchange for a favour Hype promote something with exaggerated claims Gun attempt to defeat Brains will trump brawn intelligence will win against power Status quo the situation as it is Larry Page and Sergey Brin, the founders of Google, are doing something that has never been risked before. Not by Microsofts Bill Gates. Not even by Apples Steve Jobs. The Google guys are telling Wall Street to drop dead. Those entrepreneurs from an earlier era played the game of going public the way it had always been played. Before Google came along, when a company was ready to sell shares, it hired big Wall Street investment firms such as Goldman Sachs and Morgan Stanley. The firms offered the stock to their favourite customers at a big discount. The privileged few were guaranteed quick profits, but the company received less money for its IPO. And the newly public company paid a high price for the little honour. The investment firms commission was typically as high as 7 per cent of the money raised. That fee could run into the hundreds of millions of dollars. Page and Brin arent putting up with this racket. Their plan is to offer Googles shares to anyone willing to pay the market price. Google will receive an estimated $100 million more by handling the sales this way. And while major firms
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BUSINESS ENGLISH COMMUNICATION like Morgan Stanley will be managing the auction, their role and their fees will be much diminished. Why did such famous risk-taker as Gates and Jobs put up with the Wall Street shakedown? They didnt have much choice. The brokerages were able to act like a cartel because they held a near monopoly of information. CEOs had no idea what was happening to their stock price unless they called their brokers. And the buyers of equities were mostly big financial institutions pension funds, insurance companies that paid commissions to the big brokerage firms to research and advice. The investment houses essentially gave kickbacks by cutting them in on IPOs. Cracks began to appear in that cartel in the late 1990s, when WR Hambrecht & Co. and Wit Capital pioneered the auction approach. But few entrepreneurs chose these Wall Street reformers for their IPOs. Why? For one thing, many founders and CEOs picked traditional investment banks to take them public because they wanted the services of the firms analysts who notoriously hyped clients stocks under the guise of proving objective stock research. Page and Brin built Google by applying their hyper-mathematical logic to the internet; now they have focused the same rationality on the IPO industry. In so doing, they might revolutionize Wall Street just as they revolutionized the Internet. Of course, the huge popularity of Googles brand makes it possible for the company to bypass Wall Street. The Google guys are relying on the fact that by the time the public come to decide whether to buy, they will have seen that the old way was collusive and corrupt while their way is rational and fair. Thats a great leap of faith. Alienating the powers in investment banking has risks too. The first time the newly public company reports disappointing results. Wall Street will be a very lonely and dangerous place, where everyone is gunning for Google and few allies are to be found. Page and Brin are going to take chance. Google is based on the twin principles that will trump brawn and that a democracy will always supplant a hierarchy. This democratic impulse forms the very core of Googles technology; so it goes with the IPO: Google has put its future in the hands of the people, not Wall Street. Larry and Sergey are not your typical courageous leaders. But they are at the forefront of a new breed of technocrat kings who are gambling that they can outthink and the status quo.
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UNIT 21 STOCK MARKET
Read the text again and study the following statements. Which refer to the way that companies traditionally issued shares, which refer to the public auction approach adopted by companies like Google and which apply to both? Traditional Auction Both
1. Stocks are sold directly to the public. 2. The company pays fees to a brokerage firm. 3. Stocks are sold mainly to financial institutions. 4. Shares are sold at reduced price to favour customers. 5. The company receives more money from the sale.
How to Get Some of the Highest Yields in the World for as Little Risk as Possible
Here's an old Wall Street saying that investors should "Sell in May and go away." While there's no identifiable rationale to explain why that should be good advice, there is an element of empirical truth. A study by PlexusAsset management shows that since 1950 the returns for the S&P 500 in the months of November through May were 8.1%, compared with just 2.4% for the period from May through October. [James Brumley, one of our talented analysts, recently warned investors about putting too much stock in this, though. Go here to read his take .] The MSCI WorldIndex , a popular index of global stock market performance, shows a similar seasonal pattern. In fact, returns for the MSCI World Index in the months of May through October over the same post-1950 era are negative. The old adage to sell in May has gained even more prominence over the past two years, as stocks have endured gut-wrenching corrections in the summers of 2010 and 2011, only to enjoy powerful year-end and New Year rallies. I'd never recommend managing your portfolio using simplistic seasonal rules, but it's only prudent for investors to contemplate the potential for at least a short-term correction in global equity markets.
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UNIT 22 BUSINESS RISKS
UNIT 22
22.1. INTRODUCTION 22.2. THE OBJECTIVES OF THE UNIT TIME ALLOCATED 22.3. BUSINESS RISKS 22.4. SELF-ASSESSMENT GUIDE
Taking a risk in business is common and knowing the correct vocabulary helps.
Business Risks vocabulary Understanding the vocabulary Practice
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BUSINESS RISKS 22.1. INTRODUCTION 22.2. THE OBJECTIVES OF THE UNIT
Reduce Supply Chain Interruption Risks Automate
Year-end business reviews for 2011 point to a weak link in corporate practices that can bring even the mightiest of organizations to its knees in a time of crisis. That weak link is the lack of multiple suppliers that are dependable and readily available. In his excellent Wall Street Journal story, "Reinforcing the Supply Chain," on January 11, 2012, Maxwell Murphy highlighted the vulnerabilities of companies that depend upon a single supplier only to have that supplier rendered powerless to deliver due to a disaster, such as the earthquake and tsunami in Japan, or the Arab Spring uprisings that closed businesses in the Middle East. Closer to home, we don't have to look any farther than the tornadoes that struck Joplin, Missouri, and Tuscaloosa, Alabama, and Hurricane Irene flooding that swallowed many parts of the Northeast. All told, the United States had a record 10 weather catastrophes in 2011 costing more than a billion dollars -- five separate tornado outbreaks, Hurricane Irene, two different major river floods in the Upper Midwest and the Mississippi River, drought in the Southwest and a blizzard that crippled the Midwest and Northeast. With many disasters, natural and otherwise during 2011, organizations are realizing the frailties of small inventories, just in time deliveries and single vendor partnerships. These procurement strategies may have looked good on paper at one time, but are now proving to have the potential for grave negative consequences, especially when the supply chain is cut by severe weather, strikes or other conditions. Organizations most vulnerable during disasters are those that insist on having just a few suppliers and resist automating their procurement process. You may have the best supplier in the world, but if it is underwater you are stuck without a supplier. You are left scrambling to find a supplier somewhere to deliver what you need, even if the quality doesn't measure up to what you really expect. That is where automated procurement technology fits in. With automated vendor selection technology, for instance, buyers are not limited to reliance on single sources of supply even while gaining the efficiencies and cost savings associated with single source partnerships. Buyers using automated vendor selection procurement obtain the best price
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UNIT 22 BUSINESS RISKS from the best qualified supplier for the specified product or service needed at the exact time required (with zero cost for inventory). As a single-source ordering platform that manages a multitude of buyer qualified suppliers, automated vendor selection technology requires that the buyer develop a database of at least two dozen trusted suppliers. Each time the buyer submits job specifications, the computer matches the specs with the supplier pool and only those that are best qualified to do the work are invited to bid. Not only does this give the buyer a diverse field of pre-qualified suppliers from many geographic areas, it creates a competitive bidding environment that results in the buyer paying 25% to 50% less for the procured good or service. The web-based communications and workflow system used for maximum automated vendor selection benefit delivers total transparency, strong risk management and quality controls, full accountability and complete documentation and archiving. Automation is changing the efficiency and cost effectiveness with which organizations procure what they need to sustain their businesses. Common sense would tell you that this is the course to take. But if that is not enough, the Aberdeen Group reported that the majority of the 130 organizations that participated in its 2011 procurement survey agreed companies should adopt more technology to automate procurement. A.T. Kearney's 2011 Assessment of Excellence in Procurement study of more than 185 leading companies across 32 different industries found that procurement leaders excel at managing risk. By contrast, just one in five procurement followers use risk management activities in procuring goods and services-which means about 80% of companies are a natural disaster away from a major disruption. (businessweek.com)
PROFITS COME FROM TAKING BUSINESS RISKS You face risks every day. You cannot cross the street without some danger that you will be hit by a car. Getting out of bed, driving a car, and opening a business all involve SOME risk. Risk is simply the possibility of damage, injury, or loss.
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BUSINESS ENGLISH COMMUNICATION Like individuals, business owners need to protect themselves against the risks they face. It is important for entrepreneurs to recognize potential risks they face and prepare effective strategies to deal with them. It is also useful for entrepreneurs to design "contingency plans", or alternative courses of action. Contingency plans show that the entrepreneur is sensitive to important risks and is prepared to handle risks as they occur. MARKETS: Some of the risks that almost all businesses face involve competition, price changes, style changes, competition from new products, and changes from fluctuating economic conditions. ACCIDENTS: Businesses also face risks beyond these market and economic shifts. For example, a merchandise shipment of tennis shoes may be destroyed in transit. A warehouse may burn down and large amounts of expensive inventory may be lost. Events like these threaten the security of a business. They cost money, and they may cause a business to fail. First, entrepreneurs must be able to identify all the possible risks they face, then decide upon preventive measures to eliminate or reduce the impact of the risks. As an entrepreneur, there are two primary types of risk that you will face: speculative risk and pure risk. SPECULATIVE RISK is uncertainty as to whether an activity will result in a gain or a loss. Risks, such as building a plant that turns out to have the wrong capacity or keeping an inventory level that turns out to be too high or too low, are speculative risks. Speculative risk is unavoidable and is inherent in the nature of the private enterprise system PURE RISK is uncertainty as to whether some unpredictable event that can result in loss will occur. Pure risk can result only in loss, never in gain. This kind of risk consists of hazards such as a fire or a hurricane, death of key employees, or customer injuries on the premises of the business. Pure risk exists when the possibility of loss is present, but the extent of the possible loss is unknown. Pure risk is different from speculative risk because speculative risk carries the possibility of gain as well as loss. When you start a business, you automatically assume risk; you intend to make money, but you also know that you can lose money. Not starting a business at all is the only sure way to avoid the risk. Successful entrepreneurs, however, take control over how much risk they are willing to accept and then develop plans to control the remaining risks. Businesses face many kinds of risks, and you should realize that there is no way to avoid all of them. Sound business management procedures can minimize the losses your business may suffer from some risks, but no amount of caution and planning can eliminate risk entirely. As an entrepreneur, you must be able to identify the risks that your business faces and take appropriate preventive measures to minimize losses. In addition, you should be aware of which losses you can protect yourself from by purchasing the appropriate business insurance. Otherwise, a lifetime of work and dreams can be lost in a few minutes. Risk should not paralyze the zeal and enthusiasm of new entrepreneurs. They must be willing to take moderate risks when they believe there is a strong likelihood that they will succeed. For the entrepreneur, the brighter side of risk-taking is the possibility of success and increasing their wealth. Most dreams cannot come true unless some risks are taken. HOW DO ENTREPRENEURS MAKE PLANS TO REDUCE RISK???? Effective management is clearly the best way to reduce the impact of many risks, particularly speculative risks. Careful control of financing, product development activities, production, marketing, distribution, and other management concerns help ensure that the results of most speculative risks will be profits rather than result in loss or failure of the
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UNIT 22 BUSINESS RISKS business. Many entrepreneurs control risk by keeping fixed assets to a minimum or by renting facilities rather than using personal funds to purchase land and buildings. Entrepreneurs do not necessarily seek out risks; they ASSUME risks. You can reduce risk through careful planning and decision-making with activities such as the following: 1. Analyzing current and future economic and market conditions. 2. Considering the consequences of alternative actions 3. Making reasonable decisions in response to conditions as they develop and change. WHAT METHODS DO ENTREPRENEURS USE TO CONTROL RISK? Once entrepreneurs have identified the risks they face, they must decide what to do about them. Some risks are easier to control than others and the actions of the owner will vary with the circumstances faced by individual firms. Most owners control risk by
RISK AVOIDANCE (eliminating the risk) is abandoning or refusing to undertake an activity in which the risk seems too costly. RISK REDUCTION (minimizing the risk) consists of using various methods to reduce the probability that a given event will occur. Although some risks cannot be avoided, most can be appreciably reduced. The primary control technique is prevention, including the use of safety and protective techniques. RISK TRANSFER means shifting the consequences of a risk to persons or organizations outside your business. The best known form of risk transfer is insurance, which is the process by which an insurance company agrees to pay an individual or organization an agreed upon sum of money for a prospective future loss. RISK ASSUMPTION, also known as risk absorption or risk retention, involves the planned acceptance of the risk of loss. In some instances, reducing certain risks may be too expensive. Generally, the small business owner will assume risks in which losses that occur will not produce significant financial consequences to the business. Determining the amount of loss that is significant is not a precise science.
How would you apply this information on risk management to the following CASE STUDY? Jill Kearns was in her first year of college, and was running low on money. She needed to make at least $500 to cover her expenses. She considered getting a full-time job, but realized that she did not have enough time to do her studies and keep the job. Her solution was to start a small business venture with the members of a jazz band to which she belonged. They would hold jazz concerts and sell tickets to Jill's performances. Jill's idea for this venture came from her own and a friend's interest in jazz. As the popularity of jazz has grown, she would have seen the potential for a business venture expanding. The idea of using her interest in music to earn the money was very appealing. Currently, the group members have $500 in the bank. In order to give a concert, Jill anticipated that they would have the following start-up expenses: an advertising cost of
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BIBLIOGRAPHY:
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printing posters, rent on a concert hall, cost of printing tickets, and incidental expenses for transportation, telephone calls, etc. By deferring as many payments as possible and obtaining credit, she found that they needed $465 to hold their first concert. Jill figured their total expenses would be about $2000. By giving two shows and multiplying the ticket price by the legal capacity of the hall, she calculated that the maximum gross receipts would be $2900. The business venture would earn a profit of $900! What risks are involved in this business venture? How could these risks be reduced or eliminated? (entre-ed.org)
UNIT 23 COMPUTERS AND COMMERCE
UNIT 23
23.1. INTRODUCTION 23.2. THE OBJECTIVES OF THE UNIT TIME ALLOCATED 23.3. COMPUTERS AND COMMERCE 23.4. SELF-ASSESSMENT GUIDE
Doing online business is very common nowadays and knowing vocabulary is very important
Online vocabulary understanding Online vocabulary activities Online vocabulary practice
23.1. INTRODUCTION 23.2. THE OBJECTIVES OF THE UNIT The time allocated for the unit: hours 2
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COMPUTERS AND COMMERCE
THE last year has seen the launch of some interesting web-based subscription services aimed at making life easier for people with little time for errands or planningbusiness travellers, for example. Inspired by the business models of the likes of Amazon and Netflix, these services allow users to make regular orders of cosmetics, dog food and underwear, while also offering discounts and access to better service. The travelling man, for example, might be taken with the idea of Manpacks, which consist of quarterly shipments of underwear, socks, razors, condoms, soap and even vitamins. The founders say they built Manpacks to give you more time to build the next Facebook, land planes on the Hudson, to slay dragons, and achieve the goals you aspire to. (And no I dont quite get the relevance of the Hudson landing either.) With its simple returns policy and a no-obligation subscription system, Manpacks seems like a no-frills way to restock your basics. That being said, these are not fancy goods, so men who prefer higher-quality underwear might still have to run their disruptive errands. Travelling women, on the other hand, could consider Birchbox. In the cosmetics world you need a beady eye to ignore the advertising and a thorough reading of beauty editorials to find the best products. For $10 a month Birchbox does this laborious work for you and sends four or five carefully selected samples of make-up, skincare or tools to your doorstep. This might be useful for the busy businesswoman intimidated/bored by the Sephoras, SpaceNKs and department-store beauty departments of this world. Youll also receive pamphlets and access to a digital magazine. If you enjoy the monthly shipments, you can of course buy full-sized products from the website. And if all this travelling means you are neglecting your dog, BarkBox might be the salve for a guilty conscience. Each month, for a starting price of $17, this service will send a box with at least four products for your pooch, including bones, treats, shampoos and leashes. In addition, BarkBox will donate 10% of the value of your order to a local shelter or rescue, meaning youre doing good not just by your dog, but also by the homeless ones out there.
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Online support for busy travellers
UNIT 23 COMPUTERS AND COMMERCE
23.4. SELF-ASSESSMENT GUIDE Pets.com; Boo.com. The road to the online retailing future is littered with the wrecks of Internet start-ups once seen as the pioneers of retailing revolution. The shape of e-tail, however, is very different from what was predicted a few years ago. Apart from Amazon and e-Bay the webs biggest forum for buying and selling, though it is an auction house not a retailer most of the biggest online retailers are not Internet start-ups but traditional shop or mail-order groups. Retailers have brought their investment capacity and trusted brand names to bear on Internet shopping boosting public confidence. Many have integrated online sales into a multichannel strategy that may link a website, s hops and mailorder catalogue. There was a time when everybody said the Internet was going to steal purchases from shops. But the opposite is happening: multichannel retailing is the reality today, says Darrel Rigby, head of the global retail practice at Bain &Co, the management consultants. Many classic bricks-and-mortar retailers actually on their online started making money on their online operations long before Amazon did. A prime example of the fusion of the online and so-called offline retail worlds is Amazon itself. The company has expanded well beyond its roots as a seller of books and CDs, acting as an online mall selling everything from gourmet foods to clothing. Evolving from pure retailer to retail platform. It now conducts its online commerce in partnership with bricks-and-mortar reatialers such as Target, Nordstrom, Borders and Circuit City. That blending of online and offline is offering consumers new ways to shop. They may research and order their purchase online, but have it delivered to a nearby shop a service offered by retailers such as Sears Roebuck and Circuit City so as to avoid delivery charges and allow them to see or try it on first. Some of the biggest US retailers are developing integrated operations. JC Penney, the century-old It offers 200,000 items that can be delivered to customers homes or any of its 1,020 shops. Steve Riordan, a consultant at AT Kearney, says traditional retailers that have not yet embraced the online world face heavy investment and some tough choices. Are they going to run online operations themselves or outsource them? Do they use the same sourcing model from the same factories? Do they have different distribution centres? While the US still leads the way, it does not have a monopoly on successful Internet retailers. Tesco, the British supermarket chain, has the worlds biggest online grocery business. It has helped Safeway, the third-largest US supermarket chain, set up its Internet operations. The biggest e-commerce site in Japan is Rakuten, a home-grown online shopping mall that began life in 1997 with just 13 shops. Today, it has more than 10,000 and a share of the e-commerce market three times bigger than the second ranking Yahoo Japan, according to a report by JP Morgan. Some pure Internet retailers are also continuing to grow. Yoox.com which sells endof-season and exclusive goods from designers such as Armani, Prada and Dolce & Gabbana has proved that designer labels will sell online and that European e-tailers can succeed internationally. It chose to launch in Europe first, close to the designers whose goods it sells. Yoox now sells in seven languages to 25 countries in Europe, North America and Japan. Its stylish site which it calls an e-concept store enables shoppers to zoom in on clothes and see them from different angles, and include video and music.
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BUSINESS ENGLISH COMMUNICATION Federico Marchetti, the Italian former investment banker who is Yooxs founder and chief executive, says that anyone selling online does not just have to get the technology and orders right, they also have to provide fun and entertainment. What we have been trying to do with Yoox is build a very nice customer experience, he says. The online retailer always has to be doing something interesting and different. FINANCIAL TIMES
What is your opinion on online business? BIBLIOGRAPHY:
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UNIT 24 COMPANIES AND THEIR BANKS
UNIT 24
24.1. INTRODUCTION 24.2. THE OBJECTIVES OF THE UNIT TIME ALLOCATED 24.3. COMPANIES AND THEIR BANKS 24.4. SELF-ASSESSMENT GUIDE
Knowing banking language is of great importance for your company
Banking vocabulary Banks and companies Practice
COMPANIES AND THEIR BANKS 24.1. INTRODUCTION 24.2. THE OBJECTIVES OF THE UNIT The time allocated for the unit: hours 2
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Does it pay to hire top banks?
MOST research in academia is critical of the league tables that rank investment banks by the value of deals on which they advise. The conflicts of interest in investment banking were highlighted by last weeks publication of an anguished resignation letter by a Goldman Sachs executive; finance is traditionally based on client service but much of its fantastic profitability in recent decades has come from trading profits. Banks that profit on their own account often face conflicts of interest (as their clients are usually on the other side of the trades). Studies have shown that if anything banks with a smaller market share win better deals for clients. Ranking by volume also gives banks an incentive to advocate deals with no business rationale, which may contribute to the small (or negative) returns for bidders in most mergers. Despite all this, companies still select their most trusted advisers from the league tables. Surely only a muppet would make such a choice? However, a new paper with a twist on the latest data suggests that the top-tier banks may be worthwhile for some clients. Andrey Golubov, Dimitris Petmezas and Nickolaos Travlos of the Cass Business School, the University of Surrey and the ALBA Graduate Business School examined almost 5,000 deals conducted between 1996 and 2009, separating deals involving publicly-listed and private companies for the first time. Private deals had no link between adviser reputation and quality, but bidders shelling out for a top-tier adviser in a public deal enjoy returns just over 1% higher than if they had used an adviser outside the top tier. This amounts to $65.83m of shareholder valueeven after accounting for the fees paid, which are $5.41mfor the average bidder. Large deals may give banks a motive to perform well and protect their reputation, or may simply be beyond the abilities of smaller boutiques. Follow-up work from Mr Golubov on the behaviour of independent directors, and a 2003 paper by Jayant Kale and Omesh Kini of Georgia State University and Harley Ryan of Louisiana State University, support the first explanation. Kale et al show large banks are more likely to withdraw clients from contested public deals when the price rises too high; Alex Edmans of the Wharton Business School and Jack Bao of Ohio State University suggest this may be due to the honest scrutiny provided by impartial
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UNIT 24 COMPANIES AND THEIR BANKS commentators in high-profile deals. Mr Golubov and his colleagues find that bulge-bracket banks achieve better outcomes for bidders by both finding deals with greater synergies and negotiating harder over the price. The good news for target firms is that they can nullify the second of these by hiring a top-tier adviser of their own. It is hard to avoid concluding that tables based on the market performance of past clients would still make more sense. This is the basis for rankings amongst banks in equity issuance (although ironically, share price rises here indicate that an issuance may have been underpriced by the bank). Nevertheless, it is an encouraging sign that sometimes the term bulge bracket signifies more than just the shape of the bankers money clips. For companies determined to pay top rates for a prestigious adviser, the clear lesson is to at least make sure that their banks gold-plated reputation is firmly on the line if they want their moneys worth. (economist.com)
1 balance n. the difference between credits and debits in an account 2 bank charges n. money paid to a bank for the bank's services etc 3 branch n. local office or bureau of a bank 4 checkbookUS n. book containing detachable checks; chequebookUK 5 checkUS n. written order to a bank to pay the stated sum from one's account; chequeUK 6 credit n. money in a bank a/c; sum added to a bank a/c; money lent by a bank - also v. 7 credit card n. (plastic) card from a bank authorising the purchasing of goods on credit 8 current account n. bank a/c from which money may be drawn at any time; checking accountUS 9 debit n. a sum deducted from a bank account, as for a cheque - also v. 10 deposit account n. bank a/c on which interest is paid; savings accountUS 11 fill inUK v. to add written information to a document to make it complete; to fill outUS 12 interest n. money paid for the use of money lent - interest rate n. 13 loan n. money lent by a bank etc and that must be repaid with interest - also v. 14 overdraft n. deficit in a bank account caused by withdrawing more money than is paid in 15 pay in v. [paid, paid] to deposit or put money in to a bank account 16 payee n. person to whom money is paid 17 paying-in slip n. small document recording money that you pay in to a bank account 18 standing order n. an instruction to a bank to make regular payments 19 statement n. a record of transactions in a bank account 20 withdraw v. [-drew, -drawn] to take money out of a bank account - withdrawal n.
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Here is a conversation between Mrs. Smith (Joan) and the cashier at her new bank.
Joan Cashier Joan Cashier Joan Cashie Joan Cashie Joan Cashie Joan Cashie
BIBLIOGRAPHY:
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It's Saturday morning and Joan's gone to the bank. I'd like to open a bank account, please. Certainly. Do you have some form of identification? Yes, I bought my passport. Is that OK? Yes. We also need proof of your current address. Do you have a utility bill or your driver's licence with you? I've got my driver's licence. That's fine. What kind of account did you want? Well I want two, a deposit account and a savings account. That's fine, we do both. Do you have any proof of income? Yes, I bought my pay slips for the last three months. Good. You could also apply for a credit card at the same time, if you like. Yes, that would be great. OK. If you would just like to fill out these forms...
UNIT 25 GLOBAL INFORMATION
UNIT 25
25.1. INTRODUCTION 25.2. THE OBJECTIVES OF THE UNIT TIME ALLOCATED 25.3. GLOBAL INFORMATION 25.4. SELF-ASSESSMENT GUIDE
Getting information online is very useful for businesses
Information about newspapers
GLOBAL INFORMATION 25.1. INTRODUCTION 25.2. THE OBJECTIVES OF THE UNIT The time allocated for the unit: hours 2
134
The Wall Street Journal
The Wall Street Journal is an English-language international daily newspaper published by Dow Jones & Company, a division of News Corporation, in New York City, with Asian and European editions. The Journal has the largest circulation of any newspaper in the United States. According to the Audit Bureau of Circulations, it has a circulation of 2.1 million copies (including 400,000 online paid subscriptions) as of March 2010[2] compared to USA Today's 1.8 million. Its main rival in the business newspaper sector is the London-based Financial Times, which also publishes several international edition The Journal primarily covers U.S. and international business, and financial news and issues. Its name derives from Wall Street in New York City, the heart of the financial district, and has been printed continuously since its inception on July 8, 1889, by Charles Dow, Edward Jones, and Charles Bergstresser. The newspaper version has won the Pulitzer Prize thirty-three times,[3] including 2007 prizes for its reporting on backdated stock options and the adverse effects of China's booming economy. The Financial Times
The Financial Times (FT) is a British international business newspaper. It is a morning daily newspaper published in the Borough of Southwark, London and printed at 22 sites. Its primary rival is New York City-based The Wall Street Journal. Founded in 1888 by James Sheridan and his brother, the Financial Times competed with four other finance-oriented newspapers, in 1945 absorbing the last, the Financial News (founded in 1884). The FT specialises in business and financial news. Printed as a broadsheet on light salmon paper, the FT is the only paper in the UK providing full daily reports on the London Stock Exchange and world markets. The Financial Times reports business and features share and financial product listings. About 110 of its 475 journalists are outside the UK. The FT is usually in two sections, the first
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UNIT 25 GLOBAL INFORMATION section covers national and international news, the second company and markets news. FT Magazine is a weekly magazine published with the Financial Times Weekend Edition. Elements are incorporated in the main newspaper for the USA weekend edition. The Economist
The Economist is an English-language weekly news and international affairs publication owned by The Economist Newspaper Ltd. and edited in offices in the City of Westminster, London.[1][2] Continuous publication began under founder James Wilson in September 1843. While The Economist calls itself a "newspaper", each issue appears on glossy paper, like a newsmagazine. In 2009, it reported an average circulation of just over 1.6 million copies per issue[3], about half of which are sold in North America.[4] The Economist claims it "is not a chronicle of economics."[5] Rather, it aims "to take part in a severe contest between intelligence, which presses forward, and an unworthy, timid ignorance obstructing our progress."[6] It takes an editorial stance based on free trade and globalisation, but also the expansion of government health and education spending, as well as government support of banks and other financial enterprises in danger of bankruptcy. It targets highly educated readers and claims an audience containing many influential executives and policy-makers. The publication belongs to The Economist Group, half of which is owned by the Financial Times, a subsidiary of Pearson PLC. A group of independent shareholders, including many members of the staff and the Rothschild banking family of England,[8] owns the rest. A board of trustees formally appoints the editor, who cannot be removed without its permission. In addition, about two-thirds of the seventy-five staff journalists are based in London, despite the global emphasis.
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Forbes
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BIBLIOGRAPHY:
Forbes, Inc. is a privately held publishing and new media company. Its flagship publication is Forbes, a bi-weekly magazine, with a circulation over 900,000. In August 2006, the private equity firm, Elevation Partners, became a minority shareholder in a newly formed company, Forbes Media, which encompasses Forbes magazine and Forbes.com, one of the leading business sites on the Web. Forbes.com reaches 18 million people monthly. Other Forbes Media websites are: Investopedia.com; RealClearPolitics.com; RealClearMarkets.com; and RealClearSports.com. Together with the Forbes.com Business and Finance Blog Network, these properties reach nearly 40 million business decision makers each month. The company also publishes Forbes Asia, ForbesLife, and Forbes Woman magazines. In addition, Forbes has 10 local-language licensee editions in China, Croatia, India, Indonesia, Israel, Korea, Poland, Romania, Russia and Turkery. Forbes, Forbes Asia and the company's ten international licensee editions together reach a worldwide audience of more than 6 million readers.
Do you think business magazines are useful?

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UNIVERSITATEA CRETIN DIMITRIE CANTEMIR

FACULTATEA DE FINANE, BNCI I CONTABILITATE BRAOV

UNIVERSITATEA CRETIN DIMITRIE CANTEMIR FACULTATEA DE FINANE, BNCI I CONTABILITATE - BRAOV

BUSINESS ENGLISH COMMUNICATION

MANUAL DE STUDIU INDIVIDUAL

BUSINESS ENGLISH COMMUNICATION

BUSINESS ENGLISH COMMUNICATION

FINANCIAL PLANNING FINANCE THE SEQUENCE OF TENSES

Teme de control (TC)

BUSINESS ENGLISH COMMUNICATION

BUSINESS ENGLISH COMMUNICATION

1.3. THE CONTENT OF THE UNIT

How to Make a Good Impression at a First Business Meeting

Chat Brainstorming Meeting with suppliers Board meeting Project meeting

Bring forward Put back

UNIT 1 MEETINGS Cancel Run Chair A meeting A meeting A meeting

Make meetings work for you

BUSINESS ENGLISH COMMUNICATION

UNIT 2 PASSIVE VOICE

2.3. THE CONTENT OF THE UNIT

BUSINESS ENGLISH COMMUNICATION

2.4. SELF-ASSESSMENT GUIDE

UNIT 2 PASSIVE VOICE

ASSESSMENT/ SELF-ASSESSMENT TESTS

Complete the following sentences using one word in the box:

Phone numbers Types of phones Connections Voicemail Messages Telephone information

BUSINESS ENGLISH COMMUNICATION

3.3. THE CONTENT OF THE UNIT

BUSINESS ENGLISH COMMUNICATION

Helpline Hotline Information line Reservation line

BUSINESS ENGLISH COMMUNICATION

At (@) MAKING ARRANGEMENTS

BUSINESS ENGLISH COMMUNICATION

Study of form, use and practice of Modals

UNIT 4 MODAL VERBS

4.3. THE CONTENT OF THE UNIT

Characteristics of Modal Verbs

5. Repro (reproach) You might have told me.

3. deducie logic (logical deduction) He must be in Washington, he is not at home.

UNIT 4 MODAL VERBS have already had lunch at home

can, could, be able to He can speak English fluently.

8. .. I use your phone, please? a. could, b. can, c. must

BUSINESS ENGLISH COMMUNICATION

In business advertising your product or your services is very important

5.3. THE CONTENT OF THE UNIT

Corporate and political advertising

BUSINESS ENGLISH COMMUNICATION What kind of advertisements do you like?

UNIT 6 THE CONDITIONAL SENTENCE

The conditional sentence is very useful in negotiating in business

Studying the use, role and practice of the conditional sentences

BUSINESS ENGLISH COMMUNICATION

If I eat too much, I will get fat.

3rd (third) conditional past unreal conditional

If I hadnt eaten so much, I wouldnt be so fat.

1st (first) conditional future possible/real conditional

BUSINESS ENGLISH COMMUNICATION I would go to the beach

Write what you will or may do in the following situations:

The study of marketing terms in business English

BUSINESS ENGLISH COMMUNICATION

7.3. THE CONTENT OF THE UNIT

Defining Consumer Behavior What is Consumer Behavior?

BUSINESS ENGLISH COMMUNICATION

ASSESSMENT/ SELF-ASSESSMENT TESTS