CEsS2~fJ Ht'ELsKA UN IVERZIT A V PRAZE

PROVOZN E EKO NOMICKA FAKU L TA

ENGLISH

FOR BUSINESS AND CORRESPONDENCE

PhDr. Lenka KucfRKovA

C E S K A ZEMEDELSKA lINIVERZITA _v PRAZE_

PhDr. Lenka KUCIRKOV A

ENGLISH FOR BUSINESS AND CORRESPONDENCE

Ceska zernedelska univerzita v Praze Provozne ekonomicka fakulta Katedra j azy ku

Urceno pro posluchace vsech oboru

Tato publikace neprosle redekcn! ani jazykovou uprevou.

Skripta jsou urcena pro stredne pokrocile a pokrocile studenty vsech oboru Ceske zemedelske univerzity v Praze. Studium techto skript studentum umozni osvojit si obchodni a ekonomickou terminologii a nasledne tak pracovat s odbornymi texty a komunikovat na dana ekonomicka temata v anglictine. Studenti se zaroveii seznami se zaklady obchodnf korespondence, ktera je dulezitou soucasti obchodnich transakci.

Praha, zari 1998

Autorka

3

UNIT I

What is business all about?

Around 75% of the working population of the United Kingdom are employed by businesses and earn their living from them. Everybody has an interest in the state of business as it affects their jobs, their incomes and their quality of life. Governments are constantly concerned with business and do all they can to stimulate a healthy business sector. There is a continual debate about all areas of business in homes, pubs, boardrooms and in the corridors of Government power. People talk about international trade, pollution, equal opportunities, fair pay and hundreds of other business-related topics. What is business all about?

The answer is that business is all about money!

In a modem industrial society, such as the United Kingdom, money is the currency by which all aspects of business are carried out, and it is needed at all stages in the business process. It is used in all sectors of business, and without it there would be no business at all. In less developed economies, business may rely in part on bartering and exchange of goods and services, but as money is the exclusive payment form in the developed world, we will confine our study to this area.

To broaden the issue a little, we might add that business is all about money and trade.

Trade is the process by which money changes hands in exchange for goods and services. Businesses offer goods and services, usually for a relatively fixed price, and consumers pay money in order to enjoy the benefit of the offered goods and services.

Basic business terms:

Transaction

Business is based on transactions. When a sale occurs after an agreement on value, it is referred to as a transaction.

Price

A price is the amount of money the seller wants if he is to make a transaction with a buyer.

Cost

The cost to the business is the price required for the goods. It follows that the business will attempt to maximize its price and reduce its costs

Revenue

The price charged multiplied by the number of units sold over a period of time is the total sales value, or revenue.

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Profit

Profit is the difference between the price charged for an item and the cost of the item to the seller. Profit is most frequently considered in terms of net or retained profit. This is the amount of money left over at the end of the financial year when everything has been paid for, including tax and interest payments.

Net profit = revenue - total costs Capital

Capital is the money used by businesses to pay for things that enable the company to begin doing business or to continue in business. Initially, capital is supplied by the owners of the business or through bank loans, but as the business develops, capital is provided by retaining profits that have been made as a result of successful trading.

Terms such as primary, secondary and tertiary industries are used to identify businesses according to the type of work they are involved in.

Primary industries are those that are concerned with the raw materials from which products are made.

Secondary industries are those that take materials from the primary producers and convert them into products that are of use in themselves.

Tertiary industry is that part of the manufacturing route which is last to process the product before it gets to the end user. This may be retail shops or trade merchants, hotels, restaurants, education service etc.

1. Comprehension check:

a) Why is everybody interested in the state of business?

b) What is business all about?

c) What is business based on?

d) What is the difference between profit and revenue?

e) What is capital?

f) Define the terms primary, secondary and tertiary as applied to industries.

2. Complete these sentences using your own words:

a) When there is a high level of unemployment. ..

b) To stop industrial pollution we need to ...

c) Capital is the money used to pay for ...

d) The most important aim of every business is .

e) Some business organizations are located in .

f) A government is keen to encourage investment in certain areas of the country because ...

g) When a seller is willing to sell a product..., the transaction process begins.

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h) A government should never ...

i) Businesses will flourish ...

j) If we can minimize our costs ...

3. Fill in the blanks from the list of words below:

Businesses earn 1 ) ... by selling a product or service. A manufactured product is usually a thing that is 2) ... and physical. It is something that can be seen and touched. Examples 3) ... consumer goods like cars and food and also products like energy and large 4) ... products like ships and aircraft. A service is a special type of product that is not something that can be taken home and used. It can be 5) ... as something done by one person for another or as a supply of something for general use. Examples include cleaning, laundry and more 6) ... examples like health care, 7) ... , management consultancy etc. The thing that a product or service have in common is that the 8) ... is willing to pay in order to enjoy its 9) ....

benefit considered

scale include

commercial

revenue

customer

tangible auditing

4. Find synonyms to the following words:

barter - revenue -
occur - loan -
tangible - objective -
manage - provide -
achieve - establish -
cost - carry out- 5. Find nouns for these verbs: deliver -

cancel-

employ -

pollute -

retailinvest -

occur -

enquue - cost - compete - benefit-

profit -

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6. Work in pairs. List some of the reasons you can think of for running a certain kind of business. Thenjoin another pair, compare your lists and discuss them.

Do you think that companies should be run for profit or to supply people with what they need to live?

7. Translate the following article "Brno - misto pro podnikani". Then work in pairs and discuss the most important factors considered when choosing a location for business. Try to add more factors to those mentioned in the text.

Brno - misto pro podnikani

Brno je centrum regionu s vice jak 2 miliony obyvatel a lezi na kfizovatce transevropskych magistral E 50, E 65 a E 461, E 462. Je vyznamnym zeleznicnim uzlem se zastavkou vlaku Euro-city a bude napojeno do evropske site vlaku velmi rychlych trati.

V Brne je mezinarodni letiste 1. kategorie a krome toho jsou v dosahu dvouhodin jizdy autern mezinarodni letiste v Praze ave Vidni.

Bmo je polozeno v krasnem pffrodnim prostredi s velrni pfijemnym mikroklimatem a poskytuje pfitom vetsinu vyhod velkomesta, Ma sirokou nakupni sit', dobrou mestskou dopravu a kvalitni zdravotnicke sluzby.

Brno rna 200 000 ekonomicky aktivnich obyvatel. 0 vysoke kvalite pracovni sily svedci, ze 53 pro cent ekonomicky aktivnich obyvatel rna stredoskolske vzdelani a 20 procent vysokoskolske vzdelani.

Bmo rna v soucasne do be vysoce diverzifikovanou pnimyslovou strukturu s pfevahou strojirenskeho prumyslu, ktery spolecne s elektrotechnickym tvofi 15 procent veskereho prumysloveho potencialu Ceske republiky.

V Brne nabizi sve sluzby 48 bank, 70 realitnich kancelafi, 100 advokatnich kancelan, 4 vyznamne pojist'ovny a fada dalsich specializovanych firem.

Dominantnim predstavitelem obchodni cinnosti v Brne a woven vyznamnou branou pro zahranicni podnikatele je akciova spolecnost Brnenske veletrhy a vystavy s vice nez 50 pfevazne mezinarodnimi akcerni rocne,

8

8. Fill in the following advertisement to find people who may be interested in working for you:

PRAGUE OFFICE

INTERNATIONAL PROFESSIONAL SERVICES GROUP

We are a leading provider of professional services presently establishing our first office in the Czech Republic.

We specialize in the following areas of activity:

Accounting services

We are looking for a highly motivated ... to playa leading role to the establishment of our business in Prague.

The successful candidate will receive a competitive salary package.

Candidate specification:

Management skills and experience

All applications should be sent in English to:

9

Business correspondence is essential in establishing and confirming transactions in commerce. There are two styles of letters, block( ed) and indented. Both are acceptable.

A modern way to layout a business letter is a "block( ed) style". It is the most useful to learn because it is accepted everywhere:

- the sender's address is at the top on the right or printed at the top in the middle.

- the address of the receiver is written at the top on the left.

- the date is on the right. It should not be written in figures because they can be confusing.

For instance 6.11.1995 means 6th November 1995 in the UK but 11 th June 1995 in the USA.

- the punctuation is not used in the address, in the headings and endings of a letter

- all the paragraphs start at the left-hand margin and there is a line space between each

paragraph

- the sender's name and title are under the signature

Openine salutations:

Dear Sir - to a man if you do not know his name

Dear Madam - to a woman if you do not know her name

Dear Sir or Madam - to a person of whom you know neither the name nor the sex Dear Sirs ( Gentlemen in the USA) - to a company

Dear Mr Parker - to a man

Dear Mrs Parker - to a married woman Dear Miss Parker - to an unmarried woman

Dear Ms Parker - to a married or unmarried woman Dear Peter - to a friend or someone you know well

Closing salutations:

Yours faithfully - if you do not know the reader's name Yours sincerely - if you know the reader's name

Best wishes - to a friend or somebody you know well

(in the USA a letter is usually closed with Yours truly, Sincerely yours, Truly yours)

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Abbreviations:

Re. = subject title

It is written between the salutation and the content and draws attention to the topic of the

letter.

c.c. = carbon copies

It is used when copies are sent to people other than the named recipient. Enc. = enclosures

p.p. = on behalf of Ref. = reference

References are quoted to indicate what the letter refers to (Your Ref.), and the correspondence to refer when replying (Our Ref.)

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Specimen letter:

MsArrand 561 3td SeptemberS1teet GR-I04326

Athens

2Sth·O~ 1996

DearMsAmmd

Isboul41ike tomvite"you,as aread.er ofBBC WorldWide, to·.<:~otiaunique package of serviees created specifi~lyti:)meetthe~df()ve~~de,nts~

The Lloyds .8ank Overseas:elub· rewardin.-£or Britishe~att1ates andov~ eitiZe.·oY&, . . . of an interest-bearing·elteque acoount;savings ·attd investnlent OPP()rtmdti~.tax advice and much more.

These services are provided~by: teams ()f:peilSOnal:aecoW\t:ex~v.,experienccd· in :the needs of people lirving:abroadand hasedmQut specia,;1i$fB.1Jia.teCmter8';iJrJ~ and the Isle of Man.

To join the OVerseas Club YOtUle~ 'tocmnpielte tile app~i_Jon: fmnt in til. send it to me. I look forward to hearing from you.

'Yours sincerely fJcItw:m 'Jxrk

Adrian Dale Manager

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1. Decide whether the following sentences are true or false:

a) If a letter begins with "Dear Mr Whang", it will close with "Yours faithfully".

b) If we write to a woman and we do not know her name we start our letter with "Dear Madam".

c) 8.3.1963 means 3rd August 1963 in the USA.

d) The following is an example of a blocked style:

Midland Bank Fund Managers Limited PO BOX 26

28/34 Hill Street Jersey JE4 8NR Channel Islands

e) In the UK it is correct to open a letter with the salutation "Gentlemen".

f) In the USA a letter is usually closed with "Yours truly".

g) The abbreviation "Re." stands for "References".

h) An opening salutation "Dear Sirs" refers to persons we know well.

i) The address of the receiver is written at the top on the left.

j) The abbreviation "Enc." means that there is an enclosure with the letter.

2. Put the phrases below in the correct order to form a letter:

Please let us know what your terms of trade are. Dear Sirs

We are also including the plan of our apartments

Thank you for your letter giving us the details of the products Managing Director

Could you tell us

We would also be grateful for samples of all materials if you are able to offer trade and quantity discounts? we enquired about.

The main item we are interested in is the kitchen unit listed in the catalogue under the heading CM214.

used in the manufacture of your units. Yours faithfully

and the dimensions we would need. T. Hamacher

We look forward to hearing from you soon.

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3. Complete the followine letter: (Some of these phrases can help you) We are sending ...

We enclose ...

We have pleasure in sending ... May I draw your attention ...

We would like to draw your attention ... We can offer ...

We are able to offer ...

We hope that you will be pleased with ... We look forward to ...

Mr Williams

1 7 T ootbridge A venue Paris

CH Furniture Ltd 10 Horndean Way Bristol BC3 6SC

(1) ......

Dear (2) ......

We are (3) ...... a copy of our furniture catalogue which includes (4) ...... of our latest models.

We would (5) ...... to our new range of sitting-room furniture which (6) ...... on page 30 of the catalogue.

We (7) ...... a discount of 3% on (8) ...... over $2 000.

We hope (9) ...... and look (10) .......

Yours (11) ......

:Jxm 'tj0Ultt<j

Don Young

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4. Fill in the blanks with the correct verb form taken from the list below:

Dear Mr Blackburn

Order No. DC 64392

We (l) ... to you with reference to the above order and our letter of 22 May in which we (2) ... you when we (3) .. , delivery of 60 dynamos you (4) ... have supplied on 3 June for an export order.

We (5) ... to contact you by phone, but coud not get anyone in your factory who (6) ... anything about this matter. It is essential that we (7) ... this consignment to our Greek customers on time as this was an initial order from them.

Our deadline is 28 June, and the lorries (8) ... except for the dynamos that need to be fitted. Unless we (9) ... the components within the next five days, the order (10) ... and placed elsewhere. We should warn you that we are holding you to your delivery contract and if any loss (11) ... because of this late delivery we (12) ... legal action.

Yours sincerely

M. Zeitman

have tried

will be cancelled will be taking

have been completed

are writing results

receive

should deliver knew

could expect asked

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Words to remember: affect

barter

ovlivnit, pusobit na

vymenit, vymena, provozovat vymenny obehod

prospech, uzitek, podpora, prospet, mit prospech z podnikanf. obchod

zrusit, odvolat

provest, uskutecnit

obchodni

omezit se na

naklady, vydaje

mena, obezivo

zakaznik

dodat, dorucit

sleva

sestavit, zkoncipovat, navrh, koncept, smenka

zamestnat, zamestnavat informovat se, tazat se.zadat dafit se, vzkvetat

pifjem

zahrnout, zapojit, zaplest pujcka, pujcit

obchodnfk

stat se, pfihodit se znecisteni, znecist' ovani zisk, prospech, tezit z maloobehod

pfijem, vynos, statni duchod prodej

odbyt, drazba, vyprodej predmet, vee, pfipad dodat, dodavat, opatrit, zasobit, zasoby, nabidka

benefit

business cancel carry out commercial confine to cost(s) currency customer deliver discount draft

employ enquire flourish income involve loan merchant

occur pollution profit retail

revenue sale sales subject supply

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tangible trade underpin wholesale

hmotny, hmatatelny, patrny obchod, zivnost, femeslo podepfit, podlozit

prodavat ve velkem, velkoobchod

17

UNIT II

Organization is an arrangement of parts of a group to form an effective whole (Collins Business English Dictionary).

There are a lot of things that all business organizations have in common:

The first thing is that they all involve people. People do the work, monitor and manage, keep records, sell their products, invoice the customers and collect the money that keeps the business alive.

The second thing is that they all need money. By using money they can buy machines, materials, premises and hire staff in order to make more money by making business transactions.

All businesses have owners. The owners are the people (or other organizations) who injected the capital to get the business going or who bought the business as a going concern.

All businesses need to provide a product or service for which there is a demand. It is by selling this product or service that money is generated and that allows the business to continue.

All businesses need customers or clients. These are people (or other organizations) who need or want the product or service being offered by the business.

Types of Business Organizations

1. Non - incorporated organizations:

Sole Proprietor

A sale proprietor is usually a single person carrying out a business in a one-person or a very small organization. There is no legal limit to the number of people that sale proprietors can employ. Common examples of sale proprietors are as follows: tradespeople (electrificians, painters), market stall holders, window cleaners, small independent retailers etc.

The sale proprietor has unlimited liability. This means that he is liable for all of the business losses from his own personal assets without limit.

PartnershiJ]

According to The Partnership Act 1890 a partnership is defined as the relationship which subsists between persons carrying on a business with a view to profit. It is not incorporated and therefore has unlimited liability. It is an arrangement in which not less than two and usually not more than twenty people come together for the purposes of carrying out a business. Typical examples of partnership arrangements are architects, accountants, lawyers, solicitors, consultants etc.

19

2.Incorporated organizations:

Incorporated organizations are recognized as separate legal entities - they are registered, can sue or be sued and have limited liability. It means that the members of the company would not be liable for the business debts in the case of company failure. If the company fails, they lose the money they invested in the business, not personal assets.

Limited companies can be classified according to who owns (or has access to own) the shares of the business.

Private Limited Company (Ltd)

Ltd is a company in which the shares are owned by a number of private individuals. The shares are not available for sale except with the permission of the shareholders and the Board of Directors of the company. Examples of such units are wholesale firms, large scale firms, service occupations such as advertising etc.

Public Limited Company (PIc)

Pic is a company in which the public has access to the shares. These are bought and sold through the Stock Exchange. Examples are department and chain stores, oil companies, brewery, construction and mining companies etc.

A special example of a limited company is a holding company. It does not provide a product or service itself but simply owns other companies who do. This is a common form of organization for very large companies - usually Pic's.

In exchange for a company benefiting from the advantages of limited liability, the law requires that certain conditions are met. The conditions state that all limited companies must submit the following documents:

- memorandum of association

- articles of association

- annual audited accounts

These documents are filed at Companies House, an executive agency of the Department of Trade and Industry, whose role is to regulate and control all limited companies by approving their incorporation and dissolving them.

3. Non - profit organizations:

Many organizations exist for other purpose than the generation of profit. These are commonly referred to as non - profit organizations.

Cooperatives

The cooperative principle is that at the year end, the amount of money that would be paid out in dividends to shareholders is paid out instead to the cooperative members - the customers - in proportion with the amount they have spent in the shop.

Government Departments (=Public Enterprises)

They are funded by government, largely from taxation revenues. They are not aimed solely at making profit, but can be operated for the benefit of the public.

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The goods and services provided by government departments fall into two categories:

Public goods: - defence

- police and other services

- transport infrastructure

Merit goods: - health service

- social security and unemployment benefits

- education

1. Comprehension check:

a) What things have all business organizations in common?

b) What is the difference between incorporated and non-incorporated organizations?

c) How can you characterize a holding company?

d) What documents must all limited companies submit?

e) What are the goods and services provided by government departments?

2. Decide whether the following sentences are true or false:

a) The sole proprietor has a limited liability.

b) Typical examples of partnership arrangements are accountants, lawyers, consultants

etc.

c) Shares of a public limited company are freely transferable between buyers and sellers.

d) Government departments are aimed solely at making profit.

e) Limited liability means that an owner's liability is limited to the investment made. t) The essence of the cooperatives is that the owners are the customers.

3. Replace the underlined words in the following sentences with their synonyms or words with similar meaning:

a) The members of the organization have common goals.

b) In a typical limited company the central coordination will be carried out by the Board of Directors.

c) A formal organizational structure will enable an efficient communication network to be established.

d) Anybody can be a sole proprietor simply by commencing business transactions in an informal manner

e) As there is more than one person 'in a partnership, decisions are reached by consultation between partners.

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f) There are lots of important people involved in the operation of a limited company.

g) Companies can raise extra money by issuing more shares for sale.

h) By giving a member of staff a little responsibility, he learns how to exercise it.

i) Some organizations have management that insists on making all key decisions from the centre.

j) It is likely that divisional managers know best how to act in their own local sphere of responsibility.

4. Fill in the blanks, usine words from the given list:

debts sole proprietors
industries enabled
succession obvious
liable/or reluctant to
provisions employees
entitled to previous
dissolve entity
recognized The need to make (1) ... for businesses other than (2) ... and partnerships first arose in the middle of the nineteenth century when it was realized that money needed to be injected into infant (3) ... like engineering and chemicals. Quite understandably perhaps, investors were (4) ... enter into partnership with the knowledge that by doing so they might be putting all of their personal wealth at risk. In response to this need legislation was introduced that (5) ... businesses to be (6) ... as entities in themselves.

This meant that those who worked in such organizations would be (7) ... of the business and hence they would not be the business. As a result of this there was a continuity of (8) .. , meaning that in the event of an employee's leaving the employment of the business, the (9) ... of the company could appoint a replacement without having to (l0) ... the business as a result of the departure. If the business failed then, because the business was in law a person, they would not be personally (11) ... the business (12) .... The converse of this of course is equally (13) '" that employees and investors would not be automatically (14) ... take all the profits out of the business as they are under the (15) ... two arrangements.

5. Translate:

a) Vetsina obchodnich organizaci pusobicich v zemich s trzni ekonomikou jsou spolecnosti s rucenim omezenym. Je vskutku teike si predstavit, jak by mohl volny trh fungovat bez tohoto praktickeho zakonneho prostredku, ktery umoznuje, aby se vlastnictvi podniku rozsifilo na mnoho osob, a ktere zaroveii omezuje ruceni kazde z nich na nominalni hodnotu akcii, jez tato osoba vlastni.

22

Bez ochrany, kterou ornezene rueeni poskytuje, by se investofi zdrahali vkladat penize do prumyslovych a obchodnich podniku, zvhiste do takovych, ktere jsou fizeny jinymi lidmi. Riziko by bylo pfilis velke.

V znik akciove spolecnosti s rucenim omezenym usnadnil ziskavani financnich prostfedku na podnikani a cirkulaci uspor do prumyslovych investic, pficernZ zaroven zvysil jejich bezpecnost,

Spolecnost s rucenim omezenym je klieovym faktorem rozvoje kapitalismu a hospodafskeho uspechu zemi s trzni ekonomikou.

b) The partnership is another form of business organization frequently used in free market economies.

In a partnership each partner shares in profits or losses according to the proportions laid down in the partnership agreement but each has unlimited liability on a joint basis. In other words, if your partner does a bad deal or runs up heavy debts, you are stuck with the bill even if you did not know of the contract or the debts incurred. Therefore it is essential to have a proper partnership agreement at the outset.

Professional partnerships such as those formed by doctors, architects and accountants usually have unlimited liability under the rules of the governing bodies, which regulate their professions. However, most firms pay professional indemnity insurance to protect themselves from claims for damages.

6. Work in pairs and discuss these questions:

a) What type of organization would you prefer to work for and why?

b) What kind of products or services would you like your organization to offer?

c) How many people would you like to be employed in the same organization?

d) What kind of work would you like to do in this organization?

e) Where do you prefer this organization to be placed? (in the country, a small town, a big city)

f) Are you ambitious? Would you like to have the possibility of promotion in your job?

g) What are your job priorities? (high salary, job satisfaction, fringe benefits, travelling)

7. Write a short description of your ideal job (you can use the questions from exercise 6)

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8. Ask your partner questions about the company structure and fill in missing information:

Examples: Who is in charge of '" ?

Who handles ... ? What does ... do?

Who is responsible for ... ? Who reports to ... ?

etc.

Student A:

Board of Directors-Chairman: ...

... : Charles Smith ... : Mary Brown

Production Director: .

Finance Director: .

... : Sarah Wollen

Sales Director: ...

... : Michael Lee ... : Paul Lander

... : George Hughes Company Training Manager: .. ,

Transport Manager: ...

Student B:

... : Guy Rochard Managing Director: ...

Company Secretary: '"

... : Jeff Hawkins ... : Daniel Thomas Personnel Director: ...

... : Peter Russell Marketing Director: ...

Production Foreman: ... Chief Accountant: ...

... : Jane Brunt ... : Joe Westen

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9. Describe duties and responsibilities of the representatives of the above mentioned company:

Example: Production Foreman reports to Production Director, who is responsible for manufacturing processes.

Use these words: supervise, report to, be in charge of, look after, coordinate, deal with, be responsible for, negotiate, advertise, analyse, interview, prepare etc.

What other parts of the company have perhaps not been mentioned?

10. Read through the following sentences and complete the words:

a) Business undertakings in the UK are organized under different kinds of - - N E - - - - P.

b) The business is not R E - - - N I - - - as a separate legal entity.

c) The need to expand - - - S E - some to form a partnership.

d) Shares can be transferred only with the - - - E E - - - - of other shareholders.

e) A PIc is a corporate body comprising the - 0 I - - stock of all the members forming it.

f) Its - H A - - - are freely transferable between buyers and sellers.

g) A PIc can appeal to the public for more capital by means of shares

and - E B - - - - - E -.

h) - 0 0 - - - - T - - - - are less common in Britain than in some other countries.

i) Public enterprise is run in the - - - - R E - - of the public.

j) It is difficult for a sole trader to - - M P - - - with large firms.

25

General ideas on how to write business letters:

1. Length - depends on the subject of the letter. It may be a simple subject, e. g. thanking a customer for a cheque, or quite complicated, e. g. explaining how a group insurance policy works. The right length includes the right amount of information in the letter.

2. Plan your letter before you start writing to make sure it says everything you want to say and says it in a logical seguence.

3. Use simple but polite style of language - avoid pompous language and informal or colloquial language. Beware of idioms, phrasal verbs and short forms of verbs, e. g. "a couple of hundred quid" (two hundred pounds), "to go into property" (to invest in property), "you've probably known" (you have probably known), "prices are at rock bottom" (prices are very low).

4. Take care with abbreviations (both parties need to know what the abbreviations stand for) and figures (if there is a possibility of confusion, write out the expression in both figures and words e. g. $10, 575.90 = ten thousand five hundred and seventy-five dollars, ninety cents)

5. Accuracy is important because careless mistakes in a letter can create a bad impression on your reader. Pay special attention to titles, names, addresses and prices.

I.Rewrite these sentences so that they sound more formal. Use the words in the list instead of the underlined ones:

invoice enquire further

would be grateful will not be able to were forced require

in your favour

I regret to advise due to the fact lam

Please find enclosed have increased

have not received

a) I am sorry to tell you that we can't deliver the goods on time.

b) I'm writing to ask about your terms of trade.

c) We have not yet got your hill.

d) This is because our prices have gone up.

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e) Here is a cheque for you.

f) Please advise me of your prices.

g) We had to increase our prices.

h) If you need more information, please contact me.

2. Match each sentence written in formal English with its informal equivalent:

a)Please find enclosed our current brochure and price list.

b )Thank you for your payment of $500.

c)1 apologize for not clearing the balance earlier.

d)Ifthere are any problems, call me personally.

e)We ask you to bear with us.

f) We would like to remind you that your account still has an outstanding balance of $3,000.

g)The settlement of your February account is overdue.

27

1) Sorry I didn't pay you earlier.

2) If you're having problems,

give us a nng.

3) We are sending you our current brochure and price list.

4) Don't forget you still owe us $3,000.

5) Thanks for sending us $500.

6) You haven't paid us yet for February.

7) Please be patient.

3. Rewrite this informal letter so that it sounds more formal:

Dear Peter

Many thanks for your letter ofl6 January, in which you asked about our fly spray.

Unfortunately, we've stopped making this fly spray because sales were rather low. However, we can sell you a maximum of20 boxes from our stocks. If you do want to order them, please can you tell us as soon as possible?

Looking forward to hearing from you.

Best wishes

Mary Wollen Mary Wollen Sales Manager

4. Complete the following extract from a letter with correct prepositions:

We are a large motorcycle retail chain (1) ... outlets throughout the UK, and are interested (2) ... the heavy touring bikes displayed (3) ... your stand (4) ... Milan Trade Fair recently.

As you are probably aware there is an increasing demand (5) ... this country (6) machines of this type due (7) ... increasing traffic congestion, environmental problems and the acceptance (8) ... the motorcycle as a common means (9) ... transport. And sales of larger machines have increased (10) ... more than 70 per cent (11) '" the last two years.

We operate (12) ... a 10% commission basis on net prices, and we think you could expect an annual turnover (13) ... more than $3,000,000. (14) ... an advertising allowance we could probably double this figure.

Our customers usually settle (15) ... us direct, and we pay our principals (16) ... bill of exchange (17) ... quarterly basis.

You can be sure that our organization will offer you first class representation and excellent sales to guarantee the success (18) ... your products in this country.

We look forward (19) ... hearing that you are interested (20) ... our proposal.

28

Words to remember: accountant

advise

articles of association Board of Directors carry on

claim

outset premises provide provisions require settle

ucetni oznamit

stanovy akciove spolecnosti spravni rada

provozovat pozadavek,narok,pohledavka zadat, vymahat

zaeit, zahajit

provize

zakaznik

zrusit, rozpustit

ucinny, vykonny, zdatny opraviiovat k

vytvaret, vyrabet

zapsat do rejstfiku pfivodit, nadelat (dluhy) utrpet (ztraty) nabrada,odskodne faktura, fakturovat pravnicka osoba zavazek, ruceni, dluh, pasivum

zodpovedny za

protokol 0 zalozeni akciove spolecnosti

fidit, kontrolovat provozovat, fidit, pusobit filialka, prodejna, odbytiste

pocatek, uvod

areal, budovy a pozemek poskytnout, zaj istit

predpisy, opatreni, ustanoveni pozadovat, vyzadovat vyrovnat, zaplatit

commence commission customer dissolve efficient entitle to generate incorporate incur

indemnity invoice legal entity liability

liable for

memorandum of association

monitor operate outlet

29

shares shareholder sole proprietor solicitor

stock exchange subsist

sue

turnover

akcie, podily akcionaf

samostatny (vyhradni) vlastnik pravni poradce

burza

byt, existovat, trvat zalovat

obrat

30

UNIT III

Business is all about trade involving money - making it, managing it and spending it. The social science concerned with the movements of money and a society's commercial activity is economics (economy = the operation of a country's business activities). The broad theme of economics is usually sub-divided into two major areas: macro-economics and microeconomics.

Macro-economics - is the study of the whole economy of a country, i.e. a country's production, demand, prices, imports, exports, etc. and their effects on each other. Of particular concern to this area are:

- the rate of economic growth of the country as a whole

- the ability of the private sector of the country to compete with those in other countries

- the amount of money raised in taxes by the Government and the amount of money the

Government spends

- the value of the currency

- other economic indicators which are at the national level such as the strength of exports,

the balance of payments, inflation, unemployment and the money supply

Micro-economics - is that part of economics which studies individuals, companies,

products, rather than the whole economy. It refers to such things as:

- the level of demand for particular products

- the costs of production

- the characteristics of the markets

- the nature and behaviour of competitors and their products

The flow of money in the economy

Customers pay businesses for goods and services. Businesses then use this money to pay their own suppliers, their shareholders and their employees. These groups then use their earnings to spend money in other businesses. Hence we see the circulation of money in society.

The national circulation of money is also increased or decreased by dealings with other countries. When Britain exports, money from abroad flows into the national economy in exchange for goods and services. The converse is true of imports - money leaves the UK to pay foreign companies for imported products. All of these factors depend largely on the demand and supply of goods and services.

Demand is the amount of a product or service wanted by people who are prepared to pay the price for that product or service in a particular time period.

31

Demand for goods or services can increase or decrease according to the influence of several factors. They can be divided into three broad categories: spending power influences, fashion influences and other factors.

Spending power is that part of effective demand that determines the customer's ability to buy. The more money an individual has, the greater will be his spending power. High wages, low taxes, low interest rates etc. will increase the customer's spending power and hence the demand for goods and services.

Fashion issues influence the consumers willingness to buy. This willingness can also be influenced by things like weather, the extent to which the product is advertised, health concerns etc.

Other factors include the nature of the product itself. The demand for some products is related to the demand for other products. This introduces us to the concepts of complementary and substitute products.

Complementary products are those which are related in that increased demand for one product will also increase demand for its complement. If demand for cars increases, we can predict that demand for petrol will also rise.

For substitute products an increase in demand for one product will result in a decrease in demand for its substitute. For instance the increase in demand for butter is likely to lead to the decrease in demand for margarine.

Supply is the amount of a product or service that producers are willing to sell.

Demand and supply are constantly changing and this affects prices and amounts produced. If the price of a commodity rose above the market price, there would be an excess supply. As a result, goods would pile up in warehouses, shopkeepers would reduce their orders, producers would cut their output and the price would start to fall until supply and demand were in balance again.

If prices fell below the market price, there would be an excess demand. As a result, shops would run out of goods, more manufactures would start to produce the goods demanded and the price would start to rise until supply was in balance with demand again.

1. Comprehension check:

a) What is the difference between economics and economy?

b) Distinguish between macro-economics and micro-economics.

c) Explain the circulation of money in society.

d) What affects demand for goods and services in a market economy?

e) Explain the concept of complementary and substitute products.

f) Define the concept of supply.

g) How do demand and supply interact to determine prices?

32

2. Decide whether the following sentences are true or false:

a) Macro-economics is that part of economics which studies individuals, companies, products, rather than the whole economy.

b) The national circulation of money is also increased or decreased by dealings with other countries.

c) High wages, low taxes, low interest rates will increase the customer's spending power.

d) For substitute products an increase in demand for one product will result in an increase in demand for its substitute.

e) Supply is the amount ofa product or service that consumers wish to buy.

f) If supply exceeds demand, the prices usually go up.

3. Fill in the blanks, using words from the 2iven list:

command profit
laissez faire quest
circumstances supply
cost associate with
differed from guide
wealth advantage
earned objected to
promote effort
interference exerting 1776, the year that Americans (1) ... the signing of the Declaration of Independence, also marked the publication in England of one of the most influential books of our time, The Wealth of Nations. Written by Adam Smith, it (2) ... the author the title "The father of economics" .

Smith (3) ... the principal economic beliefs of his day. He (4) ... the physiocrats who argued that land was the only source of (5) .... He also disagreed with the mercantilists who measured the wealth of a nation by its money (6) ... , and who called for government regulation of the economy in order to (7) ... "a favourable balance of trade".

The heart of Smith's economic philosophy was his belief that the economy would work best if left to function on its own without government regulation. In those (8) ... , self-interest would lead business firms to produce only those products that consumers wanted, and to produce them at the lowest possible (9) .... They would do this, not as a means of benefiting society, but in an (l0) ... to outperform their competitors and gain the greatest (11) ....

But all this self-interest would benefit society as a whole by providing it with more and better goods and services. To explain why all society benefits when the economy is free of regulation, Smith used the metaphor of the "invisible hand": "Every individual is continually (12) ... himself to find the most advantageous employment for whatever capital he can (13) ... . It is his own (14) ... and not that of society, which he has in mind."

33

The "invisible hand" was Smith's name for the economic forces that we today would call supply and demand. He sharply disagreed with the mercantilists who in their (15) ... for "a favourable balance of trade" called for regulation of the economy.

Instead, Smith agreed with the physiocrats and their policy of (16) ... letting individuals and businesses function without (17) ... from government regulation. In that way, the "invisible hand" would be free to (18) ... the economy and maximize production.

4. Read the text from exercise 2 once more and replace the words from the list with their synonyms.

5. Join the halves of sentences:

a) The demand curve shows the relationship between the price of a good or service

b) To get consumers to buy some of this excess supply from you,

c) Smith turned to the pin industry to demonstrate

d) Though single-owner businesses remained profitable,

e) With the closing of several of its branch offices,

f) We have seen that a change in price

g) A feature of all advanced industrial economies is that

h) Because of this, each organization must learn

i) Companies can manoeuvre in such a way

j) In times when the economy is buoyant,

1) to cope with the features of the macro-economic environment.

2) companies will generally perform well.

3) how the division of labour and the use of machinery increased output.

4) and the quantity consumers will buy.

5) you must reduce the price.

6) will mean a change in the quantity of goods demanded.

7) the economic problems of the company were quite conspicuous.

8) as to influence their immediate micro-environment.

9) their influence upon economic policies of the city was marginal.

10) there are periods of high economic activity and periods of low activity.

34

6. Vocabulary from context. Circle the right answer:

On macro-economic policy, we would emphasize the folly of risking a rise in inflation for a temporary surge in growth: that way lies higher unemployment. Recognizing the bias towards inflation that is built into Britain's political culture, we would grant the Bank of England independence to determine interest rates, and give it a statutory duty to keep inflation below 3% a year.

The tradition of levying taxes sufficient to cover spending over the medium term would be revived, not as an end in itself but because it is the best way to keep interest rates down and investment up at any given level of economic activity.

1. Emphasize means:

a) emerge

b) liaise

c) stress

d) occur

2. Folly means:

a) generosity

b) foolishness

c) cowardice

d) feature

3. Surge means:

a) range

b) track

c) division

d) onrush

4. Bias means:

a) tendency

b) scandal

c) purpose

d) liability

5. Statutory means:

a) proper

b) legal

c) possible

d) beneficial

6. Lmmeans:

a) strike

b) charter

c) assume . d) collect

7. Sufficient means:

a) big enough

b) respectable

c) turbulent

d) formidable

8. Revive means:

a) inquire

b) restore

c) consider

d) submit

35

7. Translate:

a) Poptavka po nasem zbozi se jiz zvysila,

b) Poptavkou rozumime mnozstvi zbozi, ktere jsou lide ochotni zakoupit.

c) Poptavka a nabidka se neustale meni, a to ovlivnuje ceny a vyrobene mnozstvl.

d) Vysoke mzdy, nizke dane, nizke urokove sazby atd. zvjsi kupni silu zakaznfka, a tudiz i poptavku po zbozi a sluzbach.

e) Jestlize cena zbozi na trhu vzroste, vyrobci budou dodavat vice zbozi, protoze budou ocekavat vyssi zisky z prodeje.

f) Zakladnim principem ekonomiky volneho trhu je vyroba zalozena na svobodnem podnikani.

g) Jestlize nabidka prevYsi poptavku, ceny zbozi obvykle klesnou.

h) "Neviditelna ruka trhu" byl nazev Adama Smitha pro ekonomicke sily, ktere bychom dnes nazvaly nabidka a poptavka.

i) Adam Smith nesouhlasil s regulaci ekonomiky a byl zastancem teorie ponechani volnosti v podnikani,

j) Zakaznici zaplati obchodnikfun za zbozi a za sluzby a ti potom pouziji tyto penize na platby pro dodavatele, akcionare, zamestnance atd.

8. Discuss these topics regarding the current economic situation in our

countn::

a) Spending power

b) The rate of unemployment

c) The ability of the private sector to compete with those in other countries

36

1. Makine; enguiries

Opening: Tell your supplier what sort of finn you are and how you heard about the firm

you are writing to.

"We are one of the main producers 0/ ... " "With reference to the advertisement in ... " tI You were recommended to us by Mr ... " "We were advised by ... "

"We have been informed by ... "

Asking for catalogues. price-lists, prospectuses, samples. etc.:

"Could you please send me your current catalogue? " "Would you please send me ... ?"

"We would be pleased to receive your ... "

"We would be grateful if you would send us your ... by return. " "I would appreciate your sending me ... II

"Would you let us have your summer brochure for ... ? " "Could you please send me details of ... ?"

Requesting information:

"I would like to know whether ... "

"I would like to know more about ... " "We should also like to know ... "

"We are also interested in your terms of payment. " "Could you please give me more information about ... " "I would appreciate more details about ... "

Closing:

'Thank you for your attention. "

"We lookforward to hearing from you soon. " "We hope to hear from you in the near future. "

"Provided you can offer favourable quotations we will place regular orders with you. " " ... we will order on a regular basis. "

37

2. Replyine: to enquiries

Thankine::

"Thank you for your letter (enquiry) of June 6th 1997 in which you asked about ... H "I would like to thank you for your enquiry of ... "

"Thank you for your letter enquiring about ... "

Confirming that you can help:

"We have a wide selection of ... "

"We can supply from stock "

"We will be able to deliver "

Selline: your product: Encourage your customer to do business with you. "We think you have made an excellent choice ... "

"You will be impressed by ... "

"All the items are covered by our two-year guarantee. " "We are offering trade discount on ... "

Referring elsewhere: "1 regret to say that ... "

"We no longer manufacture ... "

"1 am sorry we cannot be of help to you because ... "

Enclosing: (catalogues, price-lists, samples, etc.) .. We are pleased to enclose ... "

"We have pleasure in enclosing ... "

"Please find enclosed ... "

"We have enclosed ... "

"Enclosed you will find ... "

Closing:

"We lookforward to hearing from you. " "We lookforward to receiving your order. " .. We hope to hear from you again. "

38

Specimen letter:

fi ....... _ S· :UQlC .U'S

It would also be helpful if you could send us some samples aneif' they ave ofdte_dard we require, we will place a substantial order. We wolitdatso.likcto.knowif'Y:Du.are offetitlg ~ trade disc()UUt~. Thank you.

We look forward.to h~ from yon soon.

pf/MatJ .

P. Gerard Chief Buyer

Questions:

a) How did Mr. Gerard start this enquiry?

b) What kind of cassettes is he interested in?

c) What two things does he require before he places an order?

d) Where did he read about the tapes and cassettes?

e) Is P. Gerard asking about any special concessions?

j) Which words in the letter correspond to the following: publication, vocal instructions, examples, large, allowance?

39

Reply:

Yourssmcerely

R.~ ..

Questions:

a) How does Mr. Gerlach refer to Mr. Gerard's enquiry?

b) What has Mr. Gerlach enclosed?

c) Why are the prices of the cassettes so competitive?

d) Does Mr. Gerlach offer any discounts?

e) What has been sent by separate post?

1) Which words in this reply correspond to the following: convenient, owing to, selection, indent, put in?

40

1. Write sentences as directed:

a) Reply to an advertisement in the:

Daily Mail - last Thursday Economist - yesterday Financial Times - today Guardian - last week

b) Ask a firm to send you:

- a catalogue and the price list

- details of any special trade discounts

- a prospectus and information about accommodation in London

- free samples and the price list

c) Ask for information about whether: - they could send the order by air

- the price includes transport charges

- you can pay in US dollars

- they could enclose a pattern card

d) Thank for and refer to the following:

10 March - letter - enquire about the price of your tubeless tyres 21 January - letter - enclose a current price-list

6 July - enquiry - request information on new types of cameras 3 October - enquiry - confirm that you can supply from stock

e) Enclose the following: - a latest price-list

- a current catalogue

- a sample cassette and the price-list

- the price-list quoting prices c.i.f. Paris

41

2. Complete the following letter with correct prepositions:

IInne~ Ann Croft

Dear Mr Grassmann

We were pleased to receive your enquiry (1) ... 10 June 19--, asking (2) ." our leather products and conditions (3) of trade.

First let me say that our brand is internationally famous because (4) ... the quality (5) ... our clothes, and we are convinced they will sell very well (6) ... your outlets. We think you will agree (7) ... us when you look through the enclosed catalogue.

You will see (8) ... the price-list that we take care (9) ... all freight and insurance costs, so the prices are quoted (10) ... a c.i.f. basis. We will also allow quantity discounts (11) ... orders (12) ... $5 000, and we can arrange (13) ... payment (14) ... 60-day bill (15) ... exchange.

Thank you (16) ... your enquiry and we hope you will be impressed (17) ." the wide selection (18) ... our garments.

Yours sincerely

3. Rewrite the following questions in reported speech:

Example: Do you offer quantity discounts?

He asked if they offered quantity discounts.

a) Can you send me the details of the terms of trade? He wondered .•.

b) How will the goods be transported? He asked ..•

c) Could you send me the details of prices? He asked ...

d) What are your terms of payment? He wanted to know .•.

e) Where can the goods be purchased? He asked ...

f) Do you give trade discounts and how much are they? He asked ...

g) Did you talk on the phone yesterday? He wanted to know ...

h) Would you be interested in an agency of this type?

42

He asked ...

i) Were you recommended to us by the German Chamber of Commerce? He asked ...

j) Are you able to deliver the goods before Friday? He wondered ...

4. Complete the following short enquiry and reply:

Dear (1) .

With (2) yesterday's Guardian,

would you please (3) ..

of (4) .

We would also (5) .

Thank you.

Yours (6) .

S. Bowen Export Manager

Dear (1) .

Thank you (2) of 2nd June (3) ..

We have pleasure (4) .

We (5) hearing (6) .

Yours (7) .

M. Walker

(8) .

43

5. Choose the best words from the options in brackets:

Dear Mr Lowe

It was a pleasure to receive your (mail, correspondence, enquiry) and to hear that you liked our (products, range, materials) of sweaters.

There would certainly be no trouble in (supplying, providing, sending) you from our (wide, huge, vast) selection of garments which we make for all age (classes, groups, kinds).

We can offer you the quantity (price, discount, term) you asked for which would be 5% off net prices for (offers, suggestions, orders) over $3 000 and we always deal on payment by sight (bill, draft, receipt).

We are pleased to (add, fill, enclose) our summer catalogue and the price-list (quoting, telling, establishing) prices c.i.f. London.

We are sure you will find a ready (reply, purchase, sale) for our products in England as have other retailers throughout Europe and America and we do hope we can (reach, conclude, set up) agreement on the terms quoted.

Thank you for your interest. We look forward (for, to, -) hearing from you soon.

Yours sincerely

1Jaod(]141 David Cliff

44

Words to remember: associate (with)

balance of trade

benefit

buoyant

c.i.f. (cost, insurance, freight) command

excess exceed

exert formidable incentive interest rate interference laissez- faire liaise onrush output pattern card promote quest for

ztotoziiovat se, spojovat se obchodni bilance

prospech, uzitek, prosper vzestupny, vysoky, optimisticky naklady, pojisteni, doprava placeny mit k dispozici, pozadovat, zaslouzit si

soutezit, konkurovat

doplnek

zahrnout,obsahovat

pojem, pfedstava

zfejmy, napadny

vyrovnatse, vyporadatse

kfivka, zakriveni

obchodovani, transakce obchodni styky, obchodni vztahy dluhopis, obligace poptavka,p0Zadavek,pozadovat lisit se

nesouhlasit s nekym usili, snaha prebytecnY,nadbytecny pfevysit, pfekrocit pficimt se, namahat se impozantni

impuls, podnet, pobidka urokova sazba zasahovani, zasah

ponechani volnosti v podnikani spojit

prudka zmena, naper vykon, vYroba,produkt vzorkovnik podporovat, povysit hledat (coj.patrat (po),

compete complement comprise concept conspicuous cope with curve dealing dealings debenture demand differ

differ from sb, effort

45

turbulent

hledani, patrani

uvest, uvadet, udat (cenu), nabidka s udanim ceny rozsah, sortiment

tempo, mira, sazba

vista smenka (smenka na videnou) predlozit, podfidit se

nabidka, zasoba,

dodat, zasobit

bouflivy, nepokojny

quote quotation range rate

sight draft submit supply

46

UNIT IV

Personnel management and the personnel function

Personnel manal!ement is the term used to describe the formulation and execution of the company's personnel policies. These involve everything from recruitment to redundancy, and are set by the management of the company as a whole. They must be carried out and observed by all managers in the organization who have subordinates.

Personnel function is that part of the organization which is concerned with the advising of management and the administration of duties in connection with staffing.

From a maintenance point of view the personnel function is important because it is simply a fact that organizations must employ people. This function is also important from a strategic point of view. A business is only as good as its people and so recruiting the right people, cultivating, training, motivating and equipping them are all seen as strategic objectives.

Important aspects of personnel management:

Recruitment and selection

All organizations must take on new employees and replace those who leave. The emphasis in recruitment is on generating the largest pool of suitable applicants. In order to achieve this, adverts will be carefully worded and targeted so that a high concentration of people with the required skills will see the advert and be attracted to apply. For some key positions a common practice is to subcontract out the recruitment process to recruitment consultants. They specialize in generating applicants and filtering out the partly or wholly unsuitable ones. The final selection is made by the organization itself.

There are a number of selection techniques available to personnel practitioners: - interviews

- examining application forms

- presentations by applicants

- psychometric testing

- "Assessment Centre" activities

It should be remembered that selection does not involve selecting the best person as such but the best person for the job.

47

Job description and person specification

When a position becomes available, the personnel department will liaise with the relevant line manager to agree on the job description and person specification for the post.

Job description is the document that describes what the job involves on a day-to-day basis.

Person specification is a list of the qualities and characteristics that the ideal person for the job will have (age-minimum and maximum, qualifications, experience, personal attributes, special abilities).

Induction of a new staff

Formal induction programme usually includes: - a formal welcome to the company

- answering any immediate questions

- introduction to new colleagues

- explanation of company policy

Training and development

Because of the strategic significance of people in organizations, it is also in the interest of the organization that its employees are stimulated and trained in order to allow them to make a greater contribution to the business.

Human resource management

One recent development in the area of personnel management has been the rise of the so called "human resources" school of thought. It is based on the belief that employees are primarily a valuable resource rather than a cost and as such are to be cultivated, developed and encouraged.

A common list of the key emphases of human resource management: - seeing employees as individuals

- a different perception of subordinates ( staff are not there to be ruled with a big stick but

encouraged to adopt the same objectives as their managers)

- empowering individual line managers to make key decisions

- the tendency to rely on staff compliance an agreement with policies (personnel

management is more of an administrative approach)

- direct and regular formal communications with staff

- employee involvement in decision making

- attention to working conditions

- staff development and training

48

I. Comprehension check:

a) Explain the terms personnel management and personnel function.

b) Why is recruitment and selection vital to any organization?

c) What are the most common selection procedures?

d) Why does an organization provide training and development for its employees?

e) Distinguish between job description and person specification.

f) What are human resource management approaches?

g) Is an interview the best way how to select employees?

h) Do you like interviews yourself?

2. Choose the right answer:

a) Letters of application should be accompanied by ... of the former employers.

1. news

2. references

3. information

b) A manager will need to .,. the performance of staff so that he can see how best it might be improved.

1. appraise 2. receive 3. establish

c) Has this person worked well enough to ... the next increment?

1. deserve 2. carry 3. refuse

d) The manager should also reckon with ... and punctuality.

1. coincidence 2. purpose 3. attendance

e) If someone stays away from work it is not only a ... of whether or not they should be paid for their absence.

1. question 2. example 3. thing

f) There are sometimes very ... reasons offered for absence.

1. flimsy 2. disgruntle 3. careless

g) The personnel department should be ... with all matters of welfare, from lighting and heating to safety and personal hygiene.

1. prepared 2. concerned

3. published

49

h) The personnel department carries the main responsibility for ... that morale is high in the organization.

1. keeping

2. attempting

3. ensuring

i) Management can inform people of new ... by means of the firm's notice board or news bulletin.

1. appointments

2. supervisors

3. applicants

3. Find synonyms and opposites to the followine words: compliance -

recruit -

select -

promotion -

ability -

staff -

qualified -

important -

assess -

refuse -

Increase - attain -

manage - layoff -

4. Complete the following sentences in your own words:

a) The personnel department should be concerned with ...

b) An ideal job would be ...

c) Any employee who is dismissed ...

d) The personnel manager had great difficulty choosing the best candidate because ...

e) When someone stays away from work ...

f) Recruitment consultants specialize in ...

g) Employees are trained in order ...

h) The manager should also reckon with ...

i) When you are being interviewed for a job ...

50

5. Work in pairs. Read the following advertisement and then play the role of an interviewer and an interviewee.

-have an advanced degree, .preferablyinjoumaltsm, OJ; a relat¢d'C01'U.mUnieaUon ·fieid

. ... '., --_ ',. '_" ' .... - ..... " .... , .. "., ... ' .... -, ....

Start with the following common questions and continue with the questions based on the

advertisement. Then change your roles.

- What has been your most valuable experience?

- How would you describe your personality?

- Why do you want to leave your present job?

- Are you ambitious?

- Why do you think you'd enjoy working for us?

- What is your best quality?

- What are your weaknesses?

- What do you do in your leisure time?

- What are the most important things for you in your job (money, promotion, car)?

- Could you tell me ... ?

- I wonder if you could tell me .

- Would you mind telling me ?

- r d also like to know ....

51

6. Work in pairs. What would you tell a foreigner about work in our

country?

a) working hours

b) job contracts

c) relationship to boss

d) wages

e) canteen food

f) unions

g) recreational and sports facilities for staff

h) holidays

7. Complete these sentences with appropriate conjunctions and

prepositions:

a) They say the firm is fair to its employees and she agrees (1) ... them.

b) The superviser wants to see her (2) ... she leaves.

c) (3) ... the management (4) ... the unions agreed to submit the dispute to arbitration.

d) The interviewer explained (5) ... the test would be conducted.

e) It was not easy to distinguish (6) ... the old staff and the newcomers.

f) (7) ... the manager (8) ... the employee were prepared to discuss the problem further.

g) Top management is often (9) ... heavy pressure so that immediate problems often absorb much (10) ... their efforts.

h) The production side (11) ... the business has to be geared (12) ... keep pace with changes in the market.

i) (13) ... the stock level is too low, an upsurge (14) ... demand will lead to potential customers being turned away.

j) It is also possible (15) ... the expertise of top management will fall short of encompassing all the diverse skills and detailed knowledge called for (16) ... such a wide range of undertakings.

52

8. Match the words listed below with their definitions:

al redundant 1. Someone in a position of authority.
b) applicant 2. A person who owns shares in a company.
clovertime 3. When somebody is not longer required at work.
d) enterprise 4. The procedures which help a new member of staff to fit into the
organization morequick!y and efficiently.
e) interviewee 5. A person who is seeking appointment to a particular post.
f) personal 6. Referring to an individual. Private and confidential.
_g) personnel 7. When an employee works longer than normal hours.
h) shareholder 8. A person who is being examined orally as a part of a selection process.
i) executive 9. The people who work in and for an organization.
j) induction I O.An undertaking with a view to profit. 9. Translate:

Zamestnanci a zamestnavatele

Zamestnanci i zamestnavatele maji znacnou svobodu pfi rozhodovani kdy navazat, zrnenit nebo ukoncit vzajemny vztah. Druh prace, jaky si zvoli pracovnik v trzni ekonomice, zavisi predevsim na jeho osobnich zajmech, vedomostech a dovednostech. Diky konkurenci si finny nedovoli platit pracovniky, ktefi nemohou, nechteji nebo nedokazou pofadne vykonavat praci, pro kterou byli najati. Pracovnici, ktefi se uspesne podilejl na vyrobe zbozi a sluzeb, jsou velmi cenni zamestnanci, ktere by rady zamestnaly i jine finny.

Aby si je firmy udrzely, musi jim nabidnout konkurencni mzdy a vyhodnejsi pracovni podminky. Tato soutez mezi pracovniky hledajicimi dobre zamestnani a firmami hledajicimi dobre pracovniky je hybnou silou vetsiny pracovnich trhu.

Platy, ktere firmy vyplaceji, jsou hlavne urceny produktivitou zamestnancu a relativnim nedostatkem nebo nadbytkem pracovniku se stejnymi schopnostmi. Pracovnici, ktefl dovedou vyrobit, co spotrebitele zadajf, dostavaji nejvyssi mzdy. Vzdelani, odbomost a uroveii pracovniho usili mohou ovlivnit vfsi pfijmu, ale velmi dulezitym faktorem zustava spolecenska poptavka po konkretni odbomosti.

53

10. Fill in the blanks. using words from the given list:

narrow advancement
appraise laid off
resources contributions
meet hire
at least rates
reviewed undertaken Staffing in the United States

The management of human (1) ... in the United States is quite different from that in Japan. American firms also recruit employees from schools, but they (2) ... employees from other companies too. For example the high turnover (3) ... among those who have recently received their Master of Business Administration degree are quite notorious. Rapid (4) ... is expected, and if it is not forthcoming, an employee may change companies.

A common practice in American companies is to (5) .. , the performance of new employees rather soon after they join the company. If the performance does not (6) .,. the company's expectations, employment may be terminated. But even for those who have been with a company for many years, performance is evaluated (7) ... once a year, and in many cases their performance is (8) ... periodically during the year. In general, the focus of performance appraisal is on short-term results and individual (9) ... to the company's aims.

Although progressive companies provide for continuous development, training is often (10) ... with hesitation because of the cost and the concern that the trained person may switch to another firm. Thus, employees are often trained in specialized functions, and this results in a rather (11) ... career path within the firm. Finally, in many American companies, employees feel that they may be (12) ... during economically hard times, which naturally contributes to job insecurity.

54

Letter accompanying a typed curriculum vitae

1) Opening:

"I would like to apply for the post (position) of ... (a personal assistant)

advertised in ... (yesterday's Guardian). "

"I would like to be considered for the post of ... "

"With reference to your advertisement in ... of (date) I would like to .,. "

"] have seen your advertisement for ... in ... and would like ... "

"I am writing to you concerning your advertisement on 1 0 April in The

Economist for ... "

"I was recommended by ... to contact you concerning a possible post of ... in your department. "

2) Giving details about yourself, giving further information to emphasize your suitability for the post ( explanation of previous experience)

3) Enclosing: "Please find enclosed my curriculum vitae. "

"I I "

enc ose ...

"I am sending ... "

4) Closing: "I lookforward to hearing from you (soon). "

"I lookforward to your reply. "

"I will be able to give you more detailed information at an interview and] look forward to seeing you. t t

55

Specimen letter:

AsyQU C~Jl sie,:1inmmyeurnculutD vitae, .1.ve:.had;:tettY~$"s.~$peJli~~.asa· .cretary. F~\tl'· Qf_ebave been in;fi'l$IMdte!evisiQll;audl·~PllRicul .. IY·keen t6:¢mItjnue

~.~n· ... t...; : ... ·ri ~_7 wo .. ~ In ;nuS~U':'u:r'

le.nc;lQse mycurriculUlllvitae and will be available for interview any.~ aft~23 March ad,.Ulebl fakt"tt> a~.,~rM1'6.tnlentto1lJl; l,AP,ril... .

M(JJ1f;U. :'. ~~' .. ' '"' "" .

·~·...,T'·,~~

56

CD~rie •• 1B ,"lae

~re are various layouts fur a e.v. and the followiqc.v;jsjustaneexanJ.tle.

N •• e:

Date· olBb1h:

P.-.ellt Addhss:

Susan Long

20 Maroh 1970

117 Hardman Road ShetlieldS22RL

" ....... = "bd."tus~

Edueamm ad Qualification:

1981 - 1988 Mayfield ComprehensiveSGhoaI GeE in Bnglish, Fl'MCh,·Bistory'} Geography, Art

1988 -1991

Hiltop Further Education College Kenwood Road, Lond()n:NW7'31M Diploma in Business Studies

Work experienee: t99t-1995

PexsonalSecretat'y toM . Universal To)'Sm Reading

. : ."

Personal Assistant· to FinaneeDirector of.'

Croydon

•• mts:

EReferen_)

Tennis, reading, travetlins

Mrs, T. R. Bradley, Senior Leoturer,.Bu;siness· Studies Dept., HiBtop Further Ed.Ueatioa~tege Kenwood Road. London NW73TM

If you do not send a curriculum vitae, it is necessary to include the information relevant to it in the letter. This.of course, requires a different letter of application for each job.

57

1. Choose the best words from the options in brackets to complete the job advertisement:

The Financial Times is inviting (confirmations, applications, narrations) for a feature and leader writer on economics. The successful candidate, who will be based in London, will join a small team that (completes, snares,shares) responsibility for writing the FT's leaders on economics, but s/he will also enjoy (opportunities, arrangements, amenities) to write signed pieces.

Candidates should have a strong (evaluation, command, background) in academic economics both domestic and international, and ,ideally, some experience in explaining economic (allowances, issues, impacts) to non-specialists, but they need not have been journalists. Far more important are the (experiences, qualities, abilities) to write accurate English to tight (deadlines, constraints, achievements) and to (contain, elucidate, remunerate) a wide range of macroeconomic and microeconomic topics.

Letters of application including a detailed CV should be sent by October 10 1998 to:

Robin Pauley, Managing Editor, FT, Number One Southwark Bridge, London SEl 9HL

2. Complete the (ollowin!! letter of application:

Dear (1) .

I would like (2) ..

....... . advertised

in (3) .

As you can see (4) .I have had

8 years' (5) Two of these have

been as (6) and 1 am

keen to (7) .

Please find enclosed (8) and 1 will be

available for interview on (9) .

I will be free (10) .

1(11) .

Yours sincerely

(12) ..

58

3. Write a curriculum vitae for yourself.

4. Write an advertisement for your ideal job. Then write the letter of

application for this job, following these 2uidelines:

a) Introduce yourself (name, age, nationality)

b) Describe your experience

c) Describe your skills in English and other languages

d) Describe how you meet the requirements of the job

e) Say when you are available for interview

s. Fill in missio2 prepositions in the following covering letter and answer the questions below:

Mary Brice

Dear Mrs Lee

I would like to apply (1) ... the position advertised (2) ... The Guardian (3) ... 12 May (4) .,. a Personal Assistant (5) ... the Sales Director.

As you will see (6) ... my CV, much of the work I do (7) ... my present position is that (8) ... a PA. I deal not only (9) '" the routine work of a secretary, but also represent the Assistant Director (lO) ... small meetings and am delegated to take a number of policy decisions (II) ... his absence.

Your advertisement asked (12) ... some knowledge of languages. I have kept up my French, and learnt German (13) .. , the past three years (14) .. , evening classes, and have regularly visited Belgium and Germany ( 15) '" the Assistant Director, acting as an interpreter and translator (16) ... him.

I am particularly interested (17) .. , the situation you are offering, as I would like to become more involved (18) ... an information technology organization. I am quite familiar (19) ... many of the software products that ICS manufactures (20) ... office technology.

As well as my secretarial skills and experience of running a busy office, I am used (21) ... working with technicians and other specialized personnel (22) ... the field of computers. I have a genuine interest (23) .. , computer development and the people involved (24) ... the profession.

Please let me know ifthere is any further information you require. I look forward (25) ... hearing from you. Yours sincerely

MaIUf/l1Ji,ce

Questions:

1. What position is Ms Brice applying/or?

2. What are her everyday duties?

3. Why does she want to join ICS company?

4. Which words in the letter correspond to the following: ask for, everyday duties, continued with, managing, real?

59

Words to remember: advancement

apply for

appraise

arbitration

assess

be geared to commitment compliance

competent of covering letter curriculum vitae (CV) dispute

elucidate

employer

employee

empower

encompass

enrol

expertise = know-how fall short

flimsy

implement

increment

layoff

maintenance

notice

observe

opt (for)

pool

recruitment review secondment senior

senior executive

povyseni, pokrok (pojzadat 0

ocenit, ohodnotit arbitraz, smfrci ffzeni ocenit, zdanit

pfizpusobit, fidit se podle, orientovat se na zavazek, vazba

vyhoveni, splneni, svoleni vhodny pro

pruvodni dopis

zivotopis

spor, rozepfe

objasnit, vysvetlit zamestnavatel zamestnanec

zmocnit, zplnomocnit obklopit, obsahovat zapsat

schopnosti, znalosti, odbomost nedostacit, neuspokojit povrchni, slaby

vykonat, provest

zvyseni, pfirustek

propustit z prace

podpora, udrzovani

vypoved'

plnit, zachovavat, pozorovat volit, rozhodnout se

skupina (odbomiku)

vlozit do spolecneho fondu, sdilet nabor, najimani

posoudit, posudek, recenze skoleni

sluzebne starsi, vYse postaveny vedouci pracovnik

60

staff subordinate undertake upsurge vital

personal, stab, zajistit personal, obsadit podfizeny

podniknout, vykonat, zabyvat se elm vzestup (vyroby)

dillezizy, podstatny

61

UNIT V

The marketing concept

Marketin2 is all the activities that keep a company focused on its customers and ensure that the company's offerings are valued by its customers. The test of any market-oriented organization is whether the managers look to change their behaviour or that of their customers when something goes wrong. The most important principle behind the marketing concept is that the customer is king!

A market is a group of people with unsatisfied wants and needs who are willing to exchange and have the ability to buy. Identifying markets and therefore customers is timeconsuming and expensive, but a necessary function for all types of organizations, big and small.

Another important part of the essence of marketing is marketing imagination - it means a leap of imagination to see what the customer might want. Innovation, to bring in new ideas, to make changes, is an important part of the marketing concept. Also important is the strategic vision a company sets for itself - its self-image.

One way that companies can control the marketing process is by using the marketing mix. the marketing mix is the combination of activities involving product, price, place and promotion that a firm undertakes in order to provide satisfaction to consumers in a given market.

Product: It is more than the item that is designed, produced and offered for sale. It includes all the planning that comes before actual production, research and development and all services that accompany the product, such as installation and maintenance.

Price: the cost, or what the buyer must give up to receive the product. Price is not static - it may start out initially high and then fall.

Place: or distribution is making sure that the product is available where and when it is wanted. It also involves decisions on how much inventory to hold, how to transport goods and where to locate warehouses.

Promotion: It is a broad term that is used to describe the entire field of marketing communication - advertising, personal selling, sales promotion and public relations.

An essential part of the marketing concept is planning. A company must invest significant resources and time in the planning process. It defines the short and long-term future of the firm. It's part of the effort involved in identifying markets.

The marketing environment

It is important that firms monitor or study the various environments that have impact on their marketing strategy. The marketing environment comprises all the forces external to the organization that influence the marketer's ability to plan and implement.

Firms cannot control the environment but they certainly can influence it. In many countries all big firms have representatives such as trade associations that make their wishes known to public officials and politicians.

63

Types of environments that need to be considered:

The social/cultural environment (beliefs, values and norms) The competitive environment (types of competition)

The technological environment (increase customer satisfaction)

The economic environment (economic indicators: inflation rate, interest rate, GDP)

The political/legal environment (government regulation has two purposes: to protect companies from each other and to protect individuals and society from unethical business practices. )

The natural environment (pollution and finite and nonrenewable natural resources)

International marketing

We truly live today in a global marketplace. World trade has been increasing and shifting dramatically in the last decade. Marketing plays an important role in a firms strategy to globalize. When considering entry into a foreign market the first strategic decision, after product identification, is to choose an entry strategy.

Several important factors can impact the firms strategic decision-making process:

The marketing environment Governments as regulators and supporters

The impact of government policies: Protectionism - the erection of trade barriers in an attempt to protect domestic industries from foreign competition.

Quotas - a specific limit on the number of items of a

particular kind that may be imported.

Firms considering entry into a foreign market must always perform political and market risk analyses. Political risk is created by an investors uncertainty about a foreign country's future political stability and future acts by the government that would cause the finn to loose money. Market risks are created by uncertainty about future changes in cost, demand and competition in the market place.

Marketing knowledge

Marketing requires extensive market research in order to develop a comprehensive strategy. Marketing research focuses on understanding the customer. The purpose of the research is to identify the characteristics of the market and to measure market potential. Research is also conunonly used to support short-range and long-range forecasts, and to study competitive products and develop or evaluate new products.

64

The tools of marketing

Marketers use a variety of tools to describe, understand and forecast their markets.

Mass marketing: the total market is not divided into parts based on customers wants, needs and characteristics. Used when consumers see little or no difference between the products of different firms.

Market segmentation: the total market is subdivided into smaller parts whose members share certain characteristics (age, sex, income, jobs). Used to identify specific markets where products can be sold.

Target markets: results from market segmentation that identifies markets that the marketer thinks he can sell his product in.

Product life cycle: the belief that all products move through a series of four life stages, from introduction, to growth, to maturity and finally to decline. Used when developing products.

Brand: A name, term, symbol, design or combination of these elements that is intended to identify the goods or services of one seller or group of sellers and differentiate them from those of competitors.

L Comprehension check:

a) What is the essence of marketing?

b) What are the components of marketing mix?

c) What is meant by the marketing environment?

d) What are the four forms of marketing communication?

e) Why does marketing require extensive market research?

f) What tools of marketing do marketers use?

g) What's your opinion on efficiency of TV advertising?

h) Can you give any example of unreasonable promises made in advertisements?

2. Read the following text and explain the meaning of the underlined words and phrases:

The art of advertising is to persuade people to buy your product or service. This requires a basic understanding of psychology, the needs of human beings and how those needs can be satisfied. An American psychologist, Abraham Maslow, has suggested those needs can be coml1artmentalised and arranged in the form of a hierarchy. At the lowest level people need food, shelter, warmth and sex. When these needs are largely satisfied, people begin to think about the safety of themselves and their personal possessions. Squirrels, when they have had their fill of nuts, begin to bury nuts in their winter larders. Human beings have the same tendency, much to the relief of the insurance companies. Insurance appeals to those who would feel the loss of personal possessions, through burglary, flood and fire, and those who seek pensions and financial security generally.

65

Even when a human being does not feel under threat, a new need emerges according to Maslow. There is now the need to be approved by other people, the need for love and respect. The advertising industry finds this a very useful area for its machinations.

The advertiser might be trying to persuade you to buy a new car. "This is the latest and the best sports car in the market. It is faster, sleeker, more enviable than anything else in the world. If you haven't got one, or don't get one pretty soon, the rest of the world is going to see you as a dead duck!" According to Maslow the ultimate need is for fulfilment. This would no doubt come when we have all that the advertisers say we so desperately need.

3. Complete the followine sentences using; your own words:

a) The purpose of market research is to ...

b) A business can only survive if ...

c) Clever advertising and salesmanship can .,.

d) It is the responsibility of the marketing department ...

e) If a retailer has a good window-display ...

f) It is essential that the packaging of a product should be ...

g) If the businesses did not advertise ...

h) The manager of a clothes store is advertising by ...

i) National newspapers derive ...

j) When a new product is developed ...

4. Complete the following dialogue. Then in threes prepare the similar one and try to act it.

ALICE: I've called this meeting to find out how we're getting on with the programme for the new r---of blushers for sensitive skins. The company is sinking a lot of money in this project and we've got to make sure nothing goes wrong,

PETER: They've got a half million budget on the p------- side alone.

ALICE: That's true, J understand No.2 production line will be switching over to the new range on Monday. Can you c----- that, Peter?

PETER: Yes, we've got the export order for Germany to complete. We should complete the last b------ for them by the end of the week and then we start on the speciality blushers.

ALICE: Yes, that's what we're calling them isn't it - speciality blushers?

66

PETER: I like it. It sounds just right.

ALICE: It was Diana's idea.

DIANA: Well, I had to find a name which would make them sound different, but not too different.

ALICE: When are you going to start the advertising c------?

DIANA: Well, the stocks should be reaching the w------ by the end of the month and that's when we start. We're concentrating on London weekend TV and the Sunday colour supplements.

PETER: Why weekends?

DIANA: Basically because we think that's when the working girls we're after will be watching TV and reading newspapers.

PETER: But don't mothers wear make-up too?

DIANA: Oh yes, of course they do, but it's the younger women who are the big s------.

ALICE: The point is we're aiming our promotions at that s------ of the market. That gives us a chance to crystallise our advertising to get through to the people we're after.

5. Join the halves of sentences:

a) It becomes obvious that making and selling

b) The problem facing any business is that

c) The rapidly changing world is both a headache and

d) A hoarding is a site for poster advertising which some firms use to

e) Without the possibility of advertising,

f) Having made a product

g) The target audience is the section of the population

h) The firms spend a lot of money on advertising to i) For the typical manufacturer

67

1) the market for goods and services is everchanging.

2) attract the attention of people such as pedestrians and motorists.

3) workforces would have to be laid off when sales fell.

4) the problem becomes to find someone who will buy it.

5) are two facets of the same undertaking.

6) an exciting challenge to those engaged in marketing.

7) advertising is a form of insurance.

8) whom the advertisement is intended to appeal.

9) remind the public of the name of the product.

6. Work in groups. Cut out one advertisement from a magazine or

newspaper you like and one you hate and then present it to your eroup:

a) What is the product being sold?

b) What is the target audience?

c) What are its features, benefits or weak points?

d) Does it attract the attention of potential customers?

e) What do you like on this ad?

f) What don't you like on this ad?

In the end decide which ad is the best and why.

7. Think of a product you would like to advertise and write a short text for it in a newspaper.

8. Can you name any famous elobal brands? ( Coca-Cola, Kodak ... )

Try to describe any product of a well-known brand and your partner will guess this brand. Then change your roles.

68

9. Translate

a) Marketingova strategie spolecnosti je velmi dulezita, protoze mMe zakazniky jak pfilakat, tak odradit.

b) Marketing je take soucasti planovaciho procesu, nebot' rozviji specificke strategie a taktiky tykajici se vyrobku, zakazniku a distribuenich kanalu,

c) Pfi propagaci je vyrobek zakaznikum prezentovan prostfednictvim reklamy, baleni a osobniho prodeje.

d) Pruzkum trhu slouzi ke zjisten! toho, co zakaznici chteji, kolik jsou ochotni utratit a jak je nejlepe presvedcit, aby si dane vyrobky koupili.

e) Pozomost potencialnfho zakaznika lze upoutat prostfednictvim inzeratu, vystavek, doporuceni, demonstraci atd.

f) Kdyby obchodni spolecnosti sve vyrobky nepropagovaly, nikdo by se 0 jejich existenci nedozvedel,

g) V pripade, ze by poklesl prodej a bez moznosti reklamy, by pracovnici museli byt propusteni. Sklady by byly pfeplneny a zasoby by se zkazily.

h) Komercni televize nam muze poskytnout sve programy zdarma diky jejim pfijmum z reklam.

i) Ukolem marketingoveho oddeleni je propagovat a organizovat prodej vyrobku.

j) Prostfednictvim masivni reklamni kampane dojde k vytvofeni poptavky a zbozi nebo sluzby mohou byt uvedeny na trh.

10. Fill in the blanks, using given words. Then discuss the questions below:

unstable argued
forces scourge
adopted at risk
mechanism cargoes
encourage fortunate The marketing function is usually seen as anticipating consumer wants and then proceeding to satisfy them. While many see evils in the capitalist system of which marketing is a part, the richest countries in the world are those which have (1) ... the market economy. Is that a coincidence or is it cause and effect?

It seems a fact that the people in capitalist societies are generally better dressed, less hungry and live longer. Prices are determined by the (2) ... of demand and supply. the people choose which goods are going to be produced and, just as importantly, which goods are not going to be produced. They vote with their pounds, liras, francs, marks and pesetas. If people Ike a particular product or service, they will buy it, and that will (3) ... the suppliers to produce more of the same. If people do not "vote" for it, production of the commodity will cease.

69

It seems natural that the notion of a political democracy becomes fused with the concept of consumer sovereignty. Yet we need to understand the limitations of the free market philosophy. It is dangerous to think that the price (4) ... can solve all the problems which face our societies. For example, unemployment remains the (5) ... of capitalism and no society can be described as either fair or efficient while large numbers of our population are denied the opportunity to work. The sick and underprivileged must also be cared for, whether or not they have money of their own to spend. Those of us who begrudge giving aid to the less (6) ... must expect to pay a high price for our selfishness. We may enjoy material prosperity. but the society in which we live may become ugly and (7) ....

Another major criticism can be levelled at what is produced in the free economy. The quality of our lives is no doubt improved by much of what we produce, but the value of some activities are questionable. For example, if some people want to drive sleek sports cars at 100 miles per hour on the motorways, do we allow the world's car makers to provide them with such cars, even though the lives of innocent road-users are put (8) ... ?

Cigarette manufacturers in a market economy, facing restrictions on television advertising as a result of a government which sees their product as "dangerous to health" may export their deadly (9) ... to less sophisticated overseas markets. Nuclear waste is sometimes similarly exported to developing countries with less protected populations.

Of course it can be (10) ... that people should be able to smoke tobacco if they want to, but do we take the same liberal stance in relation to hard drugs? Perhaps the market for heroin is after all just like any other market?

Questions: a) What the title of this passage could be?

b) What are your views on this topic?

c) What constraints, if any, do you think are necessary in the market economy?

d) What are the major environmental problems at the present time?

70

1. Placing orders

Orders are usually written on a company's official order form which should always be accompanied by a covering letter.

Opening: Explain there is an order accompanying the letter.

"Please find enclosed our order No "

"Thank you for your reply of 10 June "

"Enclosed you will find our order ... "

Describing payment methods:

"We will pay for the goods by ... on receipt of. .. "

"We will open a letter of credit as soon as we receive ... "

Confirming the agreed discounts and the delivery dates:

"We would like to thankyoufor 30% trade discount you allowed us. "

"It is essential that the goods are delivered before the beginning of November. "

Closing:

"I look forward to receiving your acknowledgement/confirmation. "

71

Specimen letter:

Pleasefittt'len¢1~sed(jltU'0., No. D&l~'8,~()rxnen'sandhopl sweatersinas~ si~, _lQ_ aod·4~s~

We have ~ided to accept the 20% tradedise0unt youoft'er«l and ter:msofpaJment vm.: tloemnents: ac.st~t, butwouliJiketltese· wms reviewecHlltheneer~.

Ifyeu do nothave·any of the liste<1item.sinstook, please do not send substitutes ill·their:p~.

Vlewauld appreciatel1ieli'Vcry Within the next six weeisand l~ forwam.tc:> your acknowledgement.

Lionel Crane ChiefBuryef'

Questions:

a) What requirement has been given on packing?

b) What method of payment has been arranged?

c) Will substitutes be acceptable if the sweaters are out of stock?

d) When should the sweaters be delivered?

72

2. Acknowledging an order

As soon as an order is received by a supplier, it should be acknowledged. This letter can

be quite short. You can start with:

"We are pleased to acknowledge your order No .... "

"Thank you for your order No .... which we received yesterday. "

"We are pleased to say that we have already made up your order No .... "

Specimen letter:

Dear Sirs

We are pleased to acknowledge your order No. 44tZM. which we ~'MW making l1p.

We enclose our pro ·foIma. invoice as requested. The goods win·be d~b.ed byuir on receipt of your bemker's draft.

Yours faii1!hfuJ:ly

MrPUf~ Mary Hardy Sales Menager

Ene.: 1

1. Complete the followine letter with the given words:

stock invoice
crockery effected
enclosed shipment
letter of credit packed
delivery provided 73

Dear Mr Brown

Please find (1) ... an order (R1432) from our principals, MacKenzie Bros, Ltd., 1-6 Whale Drive, Dawson, Ontario, Canada.

They have asked us to instruct you that the 50 sets of (2) ... ordered should be

(3) ... in six crates, ten sets per crate, with each piece individually wrapped, and the crates marked clearly with their name, the word "fragile" and numbered 1-6.

They have agreed to pay by (4) .. , , which we discussed on the phone last week, and they would like (5) ... before the end of this month, which should be easily (6) ... as there

are regular sailings from Liverpool.

If the colours they have chosen are not in (7) ... , they will accept an alternative (8) ... the designs are those stipulated on the order.

Please send any further correspondence relating to (9) or payment direct to MacKenzie

Bros. and let us have a copy of the commercial (10) when it is made up.

Yours sincerely

lCU1e.P~ Jane Lowe

Ene. Order R1432

2. Match up the phrases and put the verbs into 1st, 2nd and 3rd

conditional:

a) If there (be) any problems with delivery, ...

b) We (fulfil) orders within three months, .. ,

c) If you (require) any further information, ...

d) If this transaction (be) successful, ...

e) We (consider) payment by 30-day bill of exchange ...

74

t) We (send) the consignment by air ...

g) Provided that we (receive) the necessary documents within ten days ...

h) Unless the goods (arrive) by the end of this month ...

1. . .. we (place) larger orders in the future.

2 we (be pleased) to supply it.

3 provided you (offer) two referees.

4 we (inform) you immediately.

S .. " unless there (be) special problems.

6 if the railways (be) on strike.

7 we (have to cancel) the order.

8 we (process) your order.

3. Write sentences, using the following verbs with the noun "order":

Example: confirm - Please confirm your order No ..... acknowledge

place

process

makeup

refuse

cancel

75

4. Choose the best words from the options in brackets:

Dear Mr York

Thank you for your order No. HU1439, which we (obtained, received, sent) yesterday. Unfortunately, we do not feel that we can offer the (business, commerce, trade) discounts which you have (asked for, asked about, asked of). We only allow a 25 per cent discount to all our customers (for the sake of, regardless of, as a matter of fact) the quantity they buy.

Our prices are extremely (competent, competitive, competitor) and it would not be worthwhile (supplying, receiving, gaining) on the allowance you have asked ....

Therefore, in this instance, I regret that we have to (refuse, receive, replace) your order.

Yours sincerely

.2>.q~

D. Gellen Sales Manager

5. Write a covering letter to Redways Company Ltd., accompanvin2: order No. W164: Describe the methods of payment, tell them that you expect delivery within one month, explain that they should not send substitutes if items are not in stock and close by saying that you look forward to receiving acknowledgement of your order.

76

Words to remember: acknowledge

advertise

advertiser advertisement

advice of despatch

align

appeal to

banker's draft

batch

begrudge

brand

budget

comprise

confirm

consider

consignment note

crate

display

documents against payment effort(s)

ensure

face competition facet

focal

forecast hoarding

launch a product letter of credit make up an order personal selling persuade

place an order press release promotion

public relations

potvrdit (pnjem), vzit na vedomi inzerovat

inzerent, propagujici inzerat, reklar.na oznameni 0 expedici srovnat, vyrovnat obratit se na, pusobit na bankovni smenka

serie, davka

zavidet, nerad davat obchodniznaeka

rozpocet, zahrnout do rozpoctu zahrnovat

potvrdit, ovefit

uvazovat, povazovat

nakladni list

pfepravni klec

vystavka, predvedeni, pfehlidka, vystaveni placeni proti dokladum

usili, snaha

zajistit

celit konkurenci aspekt

ustfedni

prognoza, pfedpoved', pfedpovidat plakatovaci plocha

uvest na trh novy vyrobek akreditiv

vytidit objednavku osobni prodej pfesvedcit

zadat objednavku tiskova zprava propagace,poyYseni styk s verejnosti

77

range refuse seek segment

shipping documents sight draft

stance

stand

stipulate

warehouse

sortiment, fada, rozsah odmftnout

hledat, usilovat

cast, usek

pfepravni doklady vista smenka

postoj, stanovisko stanek

dohodnout, ujednat, stanovit sklad

78

UNIT VI

Accounting

On a daily basis, businesses have a number of activities that take place (renting office space, paying employee salaries, buying business equipment ... ) . Businesses also make a number of long-range business decisions (investing in a new plant and equipment, determining the dividend amount that will be paid to shareholders ... ). Whether companies engage in routine business activities or major business decisions, financial outcomes will result. These financial outcomes must be calculated and measured in order to help business run well. Accounting refers to the process used to measure and document these results.

We must distinguish between two types of accounting:

1) Managerial accounting: This form of accounting measures financial outcomes for a company's internal purposes only. This information helps managers analyze different aspects of their business such as the cost to produce a specific product, the advertising budget, revenues generated by a specific department ... These reports help managers make future decisions.

Managerial accounting can also be called cost accounting.

2) Financial accounting: This form of accounting measures financial information for people outside of the company. These people need information in order to determine if they want to invest in the company.

KEY TERMS:

Financial statements - the reports developed for external purposes. They are therefore used for financial accounting. These include: balance sheet

income statement (profit and loss account) cash flow statement

Balance sheet - shows a company's total assets (an economic resource that a company has a right to use such as cash, equipment, brand name ... ), total liabilities (creditor's claim on the assets of the firm such as accounts payable to suppliers, salaries due to employees, interest payments due to ... ) and shareholders' equity (the owners claim on the assets of a firm). A balance sheet will show assets, liabilities and shareholders' equity at two very specific points in time.

A balance sheet is called a balance sheet because it must balance. Assets must always equal liabilities + shareholders' equity.

ASSETS = LIABILITIES + SHAREHOLDERS' EQUITY

79

Income statement - shows the amount of revenues (money generated and flowing into the company) and expenses (the money that the company must payout). The income statement measures these inflows and outflows for a specific period of time (for example 3 months, 1 year ... ). The revenues minus the expenses will equal the net income.

REVENUES-EXPENSES=NETINCOME

Cash flow statement - shows the flow of cash in and out of the company during a specific period of time. These flows of cash are broken down into operating, investing and financing activities.

- operating activities refer to any flow of cash moving into or out of the company because of actual business operation (ie costs of production, revenues generated by sales of products ... ).

- investing activities refer to the flow of cash based on how a company decides to invest in its business (ie buying additional equipment, selling a plant, investing idle cash ... ).

- financing activities refer to the flow of cash resulting from the operating and investing decisions (ie selling stock to raise money for a new plant, paying off a bank loan used to buy supplies, paying shareholders' dividends ... ).

Retained earnings - these are the earnings of a company that have been reinvested into the company. These earnings have not been given to the shareholders as a dividend. Companies will use retained earnings when they see an opportunity that will help the value of their company grow.

If good opportunities do not exist to invest these retained earnings, managers will distribute them to shareholders by means of a dividend.

Finance

The objective of the management of a company is to engage in business activities in such a way as to maximize the value of the firm for its shareholders. Maximizing value means increasing the worth of a firm as much as possible.

Once managers determine that a specific investment will add value to the firm, they must determine how they will finance it. By finance we mean how a company will raise money to pay for an investment.

Companies can finance their investments in a variety of ways. They are as follows: 1) Retained earnings (mentioned above)

2) Issuing stock - this offers the public shares of stock. These shares give the buyers (who then become shareholders) the right of ownership of the company.

3) Issuing bonds - the company promises to pay buyers of their bonds (bondholders) a specific amount of money at specified periods of time.

4) Bank loans - the company borrows money from the bank.

80

1. Decide whether the following sentences are true or false:

a) Financial accounting is produced for people outside of the business.

b) Financial accounting can he called cost accounting.

c) Balance sheet is a summary of the company's trading performance over the past year.

d) Managerial accounting measures financial outcomes for a company's internal purposes.

e) Retained earnings have been always given to the shareholders as dividends.

f) Income statement shows the amount of revenues and expenses for a specific period of time.

g) Maximazing value of the firm means decreasing the worth of a firm as much as possible.

2. Comprehension check:

a) Distinguish between managerial and financial accounting.

b) What does the income statement record?

c) What are the components of the balance sheet?

d) What does the cash flow statement show and what are its activities?

e) Explain the term "retained earnings".

f) How can companies finance their investments?

3. Fill in the blanks, using given words:

transaction trading period
have depreciated cash
write down owe
bad debts setting up
proved illusory value
legal requirement credit If you are considering (1) your own business, an accountant is the best person to give

you financial advice. It is a (2) that proper financial records are kept and the basic principle

is to record every single (3) One of the purposes is to ascertain whether you have made a

profit or loss during a given period. Profit could be described as the difference between the value of the business at the start of a (4)... and the value of the business at the end of that period.

Before deciding whether we have made a profit or loss we need to consider the extent to which our assets (5) .... Our assets are those things we own which could be converted into (6) ... , in contrast to our liabilities which are debts which we (7) ... whether or not they are due immediately. The general rule is that we estimate the life of the asset and if the life of the

81

motor van is, say, five years, we then (8) ... its value by 20% per year so that by the end of the five years it is showing nil (9) .. , in our books.

A deduction also has to be made for (10) This is a normal hazard in business,

especially since so many transactions are for (11) rather than cash. We have supplied goods

to a particular customer who has now become bankrupt. He cannot pay the money he owes us and so the profit we thought we had made from the transaction has (12) ....

4. Match the words listed below with their definitions:

a) asset 1) A book in which all the accounts of a business are kept.
b) returns 2) A person or a company to whom/which we owe money.
c) revenue 3) A lowering in the value of a fixed asset over a period of time or a currency as
compared to another currency.
d) ledger 4) Income from the sale of the products or services or assets of a company or
from investments.
e) liabilities 5) Goods which haven't been sold and which are sent back to the wholesaler or
manufacturer.
f) expenditure 6) The ordinary shares in a company.
g) budget 7) The amount of money that a company owes to others.
h) creditor 8) A financial plan of what money may be received and how the money will be
spent.
i) equities 9) Something that is owned by a person or a company, such as money, a building,
a car etc.
j) depreciation lO)The spending of money (on the new machinery) 5. Read through the following sentences and complete the financial terms:

a) Many companies receive P ~ ~ ~ E E ~ ~ and other revenues from their numerous

inventions used by other firms.

b) Some developing countries are fortunate if the banks W - - - - 0 - - their debts.

c) Payment is authorized only on presentation of a cheque - - D - - - - D.

d) Many governments are offering companies favourable -U B - - - I - - .

e) Firms may attempt to reduce the risk of loss through B - - D - - - - by a variety of devices.

f) When demand for their goods fall, it is difficult for small companies to reduce expenditure on - - - - H - - D - such as rent and energy costs.

g) Customers with regular bills of fixed amounts may pay by S - - - - - - G - - - - R.

h) A firm is said to be insolvent when it is unable to meet its financial C - - - - T - - - - -.

82

i) A new customer might be allowed to have an - U - - T - - - I - - account.

j) An enterprise - - - U - - I - - large amounts of capital would probably have its shares quoted on the stock exchange.

6. Work in pairs. One of you will play the role ora representative of the British publishing house Cartlands Ltd., the other will play the role of the headmaster of Business Academy.

a) Cartlands Ltd.

You represent the British publishing house Cartlands Ltd., based in Prague. Three months ago you sold an order of books by post to one of your best customers but today they called you to say that they are very unhappy with the books you provided. Several of them were damaged in transit and pages have started to fallout. The school would like a complete refund of the invoice and are coming to meet you today to return the books. They are valued long-term customer and you do not want to lose their business. However, legally they don't have a leg to stand on, there is a one month return agreement for all your books. If they are not satisfied with them they can return them up to one month after purchase. It is now three months since purchase and although the books are falling apart you were not notified of any damage when they were delivered to the school. The damage is probably due to misuse at the school. They are now visiting you at your offices to explain their position. Be polite but firm. Try to reach agreement over some limited refund ( in the end you may have to make some contribution to the costs as a sign of good will but avoid this as far as possible.)

You must prepare:

- acceptable values for a refund

- the arguments in your defence and the order in which you wish to use them

- what the school priorities and counter-arguments are likely to be

b) Business Academy

Three months ago you purchased a set of books from the British publishing house Cartlands Ltd. based in Prague. The books were delivered by post and although they were slightly damaged on arrival you kept them and decided to see what happened. Well, last week they started to fall apart when opened and the pages are being lost around the school. You would like a complete refund of the invoice and are going to meet with the publishing representative to return the books and ask for the money back. You are a valuable and longstanding customer but legally you don't have a leg to stand on, there is a one month return agreement for all your books as stated in the invoice. If customers are not satisfied with books they can return them up to one month after purchase. It is now three months since purchase and although the books are falling apart you did not notify the shop of any damage when they were delivered to the school. However, the damage was caused on delivery and not by any misuse at the school. You are now visiting them at their offices to explain your position. Be polite but firm. Try to reach agreement over a refund.

83

You must prepare:

- what Cartlands attitude is likely to be

- what arguments to put forward

- acceptable values for the refund

CARTLANf)S LTD

Smiktwsb l2 PllIItIe 1·

In'Voicedat~lst~l11bet l~ DelirverywuelstSeJ)tember 19~8

Umtcost

Business Englisb Negpdatingmade easY ~~~ ...

LadyDial1lOden1love story

This invoice ispayablcwitbintwenty..:one daysofihe date _v:e~ All··g<;Kli(J$'l"'d~_~··"'~'jM··JD(')l.1 guarantee. Within one month tromtbe invoice date Cartlands will accept ~DiIity _.~~ •• for any ~e ord~ caused atldnotifiedwitbin this time perioq.

84

7. Read the text describin2 the movement of the pound a2ainst the dollar over one year and draw the graph. Underline words which suggest rise or fall.

a) In January, US interest rates rose. As a result the pound slipped from $ 1.80 to $ 1.70.

b) In February, owing to the minersstrike, the pound dropped to $ 1.50.

c) In March, there was a Balance of Trade surplus with the result that the pound gained 10 cents.

d) In April, unemployment figures were down. This meant that the pound advanced to $

1.65.

e) In May, inflation fell by 0.9 per cent. It followed that the pound gained 5 cents.

f) In June, owing to the failure of the East-West talks, the pound deteriorated 5 cents.

g) In July, as a result of tension in the Middle East, the pound moved down to $1.60.

h) In August, a general election was called and because of the general uncertainty the pound moved down to $1.50.

i) In September the Labour government won a landslide victory. Consequently, the pound dropped 15 cents.

j) In October, the pound was devalued. This meant that the pound fell to $1.15.

k) In November, because of the lowering of the Minimum Lending Rate, the pound recovered 5 cents.

1) In December, due to the discovery of a new oil field in the North Sea, the pound soared to $1.25.

8. Replace the underlined words with their synonyms or words with the similar meaning:

A day in the life of a Financial Director

Her day typically begins at 8 am. She spent the first hour completing a report evaluating the purchase options for a new piece of equipment which had been requested by the Chief Executive. When the accounting staff came in at 9 am, Sue was ready to give out the work for the day. At an early meeting with the Credit Controller, she asked specifically about the status of the debt from one customer for whom a large despatch was planned for later in the week.

At 9.30 am, Sue attended a directorsmeeting lasting most of the morning. During the meeting, she had the opportunity to highlight and explain to fellow directors, items of concern identified in the last monthly management accounts. Immediately after the meeting, she reviewed and amended a report made by the management accountant which sought to show the causes of fixed cost spending in excess of budget.

In the afternoon, Sue held a series of meetings with salesmen and sales administrators in order to get them to help construct a forecast of sales for the forthcoming half year. From these discussions, she compiled a spreadsheet to calculate the profits that would arise and

85

other conclusions that could be drawn from the data. She calculated the variances that would arise if the salesmens' forecasts turned out to be accurate.

Before clearing her desk for the night, Sue reviewed the day's payments raised by the purchase ledger clerk. She signed a number of purchase cheques but withheld approval on two cheques on the grounds that payment could be delayed until the following week.

9. Translate:

The most permanent form of business finance is equity capital - the money put into the business by its owners. Ownership of equity is represented by shares of a joint stock company. Instead of a fixed rate of interest, shareholders receive an annual portion of profits distributed in the form of cash known as dividends. Businesses can also borrow from the public by issuing bond certificates which entitle the holder to an agreed rate of interest and which may be traded in the Stock Exchange.

Vyznamnym zdrojem podnikovych financi mohou by! statni dotace. Stat muze podnikatelske cinnosti napomahat primo danovymi ulevami nebo dotacemi hotovych penez, aby povzbudil investice nebo zarnestnanost v urcitych prumyslovych odvetvich nebo regionech. Stat muze poskytnout pomoc take nepfimo formou odborne pfipravy, poradenskych sluzeb, zaruk na pujcky, exportnich uveru, subvencovanl pronajmu atd.

V poslednich letech se dulezitym zdrojem financovani stava "rizikovy kapital". Penfze ziskane na investice do novych podnikatelskych projektu mohou dat k dispozici jednotlivci, specializovane financni instituce jako jsou obchodni banky nebo pobocky velkych firem.

86

1. Invoices - are requests for payment and also records of transactions which give information about what has been bought or sold, the terms of the sale and details of the transaction.

Pro-forma invoice is sent in the case of pre-payment or to inform the customer of the pnce.

2. Statement of account - is sent to the customer, listing all the transactions between the buyer and seller for a certain period.

3. Settlement of accounts Methods of payment:

There are various methods of payment available through the Post Office and banks.

Letter of credit - is sent from one bank to another which gives the receiving bank authority to pay a certain sum of money to the person named in the letter.

Bill of exchange - a written order without any conditions, addressed by one person to another, signed by the person giving it, requiring the person to whom it is addressed to pay immediately or at some stated time a certain amount of money to a named person.

Cheque - a written order to a bank to pay a certain sum to the person named on the cheque from the account of the person who signed the cheque.

Bank draft - a cheque drawn by a bank promising to pay a stated sum on demand at a named office of the bank.

Bank transfer - banks will transfer money by order from one account to another.

Postal order - can be bought from the Post Office, usually to pay small amounts and sent to the supplier direct.

Giro - this postal cheque system is run by the Post Office and allows customers to send payments to anyone whether they have a Giro account or not.

Bank Giro - enables the payment of one customer to another by means of the transfer from one account to another, even if the customer doesn't have a Giro account.

C.O.D.(cash on delivery) - The Post Office offers a service by which they will deliver goods and accept payment on behalf of the supplier.

Promissory note - a written promise from a debtor to a creditor that the former will pay the stipulated amount either on demand or after a certain date.

Letters accompanying payments are usually short, giving information about the payment and what it refers to, they may be used to propose new terms of payment or to make complaints

87

Specimen letters:

MrJ. Merton

Sales Manager Glaston Potteries Ltd. Clayfield

Burnley BB10 IRQ lJnited; ll::"'n:dOm

. :",-.".~:-:~,-"":,,,;:,~

Mae Ke~Bft)SdJ.d .. 1-' .. ". '. "Dri~e: .'

Dear Mr Merton

We have instructed our bank to arrange tbra.letter of oredit'ti against your pro-forma invoice NO. Gl1521S, and the proceeds wlUbe otedited.toy~u as soon as Canadian Trust receive the documents.

oredit note.

YOW'S'sincerely

n ·~j! .. u~h;, K~:!r;:f:~

R. MacKenzie Director

88

Request for payment

MrR. Hughes

21 Mc:ad :ltoad Swansea ~38T1DR.

Dear Mr Hughes

I am wri.titlg to ask why youbave not settled 'ourinvoiC,e NO.H93:2:i0r$62l.S4" a copy of which is enclosed.

YOW'S. sincerely

: .. ',,' .., ",' .. , .. , .", .. ,', '. '~- .'" - .,~ ',~

. _.. :""_:::::'_'-::. ".',-.<0:'0::::,.:.',:-""--,, .

..... "'; : ...:<,"<::'.: " ' ::.~.: ->: .,::.. :,::,:::.:.:' ,:., :.:'-_" "." -.:'

I know thatSiooe we began trading you have el~d YQUl'~'~ on'~ ....

.. .. .... ",'" ' " ;'.. ..~ ..... , .' '_ .. ' ,::

due dates. That is wby I wondered if any problems have arisen wni~hiifleto

help'YQUwitb~ Please let me· mow if lean be (if a8$istanoe~ .'

R(J14I

R. Cliff AOOO1n1tant

89

1. Read the following letter requesting payment, and choose the best words from the options in brackets:

Dear Mr Franksen

Account No. BYG93145

I wrote to you on two (occasions, opportunities, occurences), 21 October and 12 November, concerning the above (bill, account, draft) which now has an (extreme, marvellous, outstanding) balance of$1,541.43 and is made up of the copy invoices enclosed.

I have waited three months for either a reply to (estimate, explain, release) why the balance has not been cleared, or a (reluctance, remittance, observance), but have received neither.

Although I am (reluctant, angry, suspicious) to take legal action to (recover, cure, cover) the amount, you leave me no alternative. Therefore, unless I receive your payment within the next ten days, my solicitors will be instructed to start (proceeds, proceedings, legacy) to recover the (debenture, debt, request).

Yours sincerely

J. Medway Accountant

2. Put the sentences below in the correct order to form a letter. Then

answer the questions.

Our insurance company has promised us compensation within the next few weeks We had intended to pay it as usual,

and hope you can bear with us

Yours sincerely

and once we have received this

I am sorry that we were not able to clear your December invoice No. 6612 for $4,350.

90

untill the matter is settled.

the account will be paid in full. Dear Mr Schubert

We know you will appreciate the situation

but a large cash shipment to one of our customers in Australia was part of the cargo destroyed in the fire on the SS Tippa.

D. Basten

Director

Questions:

a) What explanation is given for non-payment?

b) When will they intend to clear the invoice?

c) What are the synonyms to the following words: pay, meant, consignment, make up for loss, understand, remit?

3. Complete each unfinished sentence, so that it means the same as the one before it:

a) We have had to remind this company several times to clear their accounts. This company ..•

b) Can you tell us if we can rely on them to settle their accounts? Can you tell us if they ...

c) We have now completed our investigation into Falcon Retailers. Our ...

d) We will also include details of two referees. Details of two referees ...

e) Thank you for forwarding the documents so promptly. Thank you for the documents ...

f) Their credit limit has not reached the level you mentioned. The level you mentioned ...

91

g) We trust you will treat this information in the strictest confidence. We trust your ...

h) We can send you a standard agreement, giving you more details of our terms. A standard agreement ...

4. Complete the following reply to the request for payment with correct prepositions:

Dear Mr Theopolis

First let me apologize (1) ... not having cleared your June invoice or replying (2) ...

your letter (3) ... 10 August. However, I am surprised that you did not receive our circular letter informing all our suppliers that we were moving (4) ... Milano to Torino. I

have checked our post book, and find that a letter was sent (5) ... you (6) ... June 30.

As you will see (7) '" the copy enclosed, we warned suppliers that during the move there

might be some delay (8) ... clearing accounts and replying (9) correspondence as the

move would involve replacing more than half our staff (l0) new people who needed

time to get used (11) ... our accounts and filing systems.

You will be pleased to hear that we have now settled (12) ... our new offices and will have had a fully trained staff (13) ... the end of next month. Meanwhile, I am enclosing a cheque for $ 3,000 on account, and will send a full settlement (14) ... June invoice within the next few days.

Could you please note our new address, which is (15) ... the heading of this letter, (16) ... future reference?

Yours sincerely

H. Giordiano H. Giordiano

92

5. Make words from the following jumbled letters and explain them:

a) QUCHEE

b) EIINOVC

c) SSOPRMIYRO TENO d)IROG

e) KNBA FTADR

t) LLIB FO CHAEXNGE

93

Words to remember:

account

accounts payable accounts receivable advise

assets

fixed assets current assets

bad debt

balance

balance sheet bank draft

bond

budget

cash flow carriage forward clear

C.O.D. (cash on delivery) credit

credit note

current account

debit note

depreciate

due

endorse

engage in

expenditure

expenses

idle cash

income statement inventories invoice

ledger

letter of credit outcomes outstanding

ucet

dluhy pohledavky oznamit aktiva, jmeni

zakladnl prostl'edky, stahl aktiva

obezna aktiva

nedobytna pohledavka zustatek, rovnovaha rozvaha

bankovni smenka dluhopis, obligace rozpocet

hotovostni tok

nevyplacene, dovozne plati pi1jemce vyrovnat, uhradit

na dobirku

liver

dobropis bemy ucet vrubopis

znehodnotit, ztratit cenu splatny

zirovat, podepsat na rubu zabyvat se

vyda], vydani

vydaje

hotovost lezici ladem vysledovka, vykaz zisku a ztrat zasoby

faktura

ucetni kniha

akreditiv

vysledky

nezaplaceny

94

overheads

postal order promissory note recover

remittance

revenues

retained earnings sight draft shareholders' equity soar

standing order stocks

write down write off

rezijni naklady postovni poukazka vlastni smenka ziskat, znovu nabyt uhrada, vyrovnani pfijmy nerozdeleny zisk

vista smenka, smenka na videnou vlastni jmeni akciove spolecnosti prudce stoupnout

trvaly pfikaz

zasoby, akcie

snizit hodnotu

odepsat, amortizovat

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A

account (1) a record or statement of money received and paid out. (2) an arrangement for keeping money in a bank. (3) a regular customer of a company.

accounting the activity of recording and reporting on the movement of money or goods into and out of a company.

advertise to make something, usually goods or services, known to companies or the general public, e.g. by means of newspapers, magazines, posters, cinema, television or radio.

advice note a printed sheet sent by a supplier to a customer containing details of goods ordered but not yet delivered.

application form a document which is filled in and signed by a person who is applying for something, e.g. a job.

assets the possessions of a business that contribute to the value of the business.

audit (noun) an examination of a company's books of account to make sure they are a fair and true record of a company's trading.

auditor the person who carries out an audit.

B

bad debt money which is unlikely to be paid, and which is treated as a loss.

balance (noun) (1) the difference between the total credit entries and the total debit entries in an account. (2) what is left over, the remainder.

balance sheet a statement showing the value of a company's assets and its liabilities at a certain date.

bank draft a cheque drawn by a bank promising to pay a stated sum on demand at a named office of the bank.

bankruptcylbankrupt the situation when someone is unable to meet their

commitments and is sued by a creditor. The individual concerned is called a bankrupt.

bill of exchange a written order without any conditions addressed by one person to another, signed by the person giving it, requiring the person to whom it is addressed to pay immediately or at some stated time a certain amount of money to a named person.

bond (noun) a legal written promise to pay a sum of money at a certain time, or under certain conditions.

book-keeping the recording of the accounts of an organization.

budget a financial plan of what money may be received either over a certain period of time or in connection with a certain project. and how the money will be spent

business (noun) (1) commercial activity: to take up business as one's career. (2) a particular organization involved in commercial activity.

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c

capital the total stock of wealth owned by a business.

career a job or profession for which one is trained and which one intends to follow. carriage forward the cost of delivery of the goods to be paid by the receiver of the

goods.

cash flow money that flows into and out of a business over a given period of time.

cash on delivery (COD) a condition of sale, made by the seller of the goods, that payment must be made at the actual time they are delivered.

certificate of incorporation certificate issued by the Registrar of Companies to a business that has satisfied the requirements for incorporation and is therefore permitted to trade as a company.

cheque a written order to a bank to pay a certain sum to the person named on the cheque from the account of the person who signed the cheque.

collateral something promised as security for the repayment of a loan.

competition (1) the act of trying to do or get something better than one's rivals. (2) companies selling the same or similar products or services.

constraint the limitations experienced by a business in attempting to achieve its

objectives.

consumer the final user of a good or service, not necessarily the person who makes the purchase.

cost (noun) a sum of money used to pay for labour, materials, rent, salaries, etc. to provide a product or service.

credit (noun) (1) time allowed between the receipt of a good or service by a customer and the final date on which payment is due.(2) an entry into an account which records money received.

credit (verb) (1) to mark (an account) to show that money has been paid. (2) to believe. creditor a person or organization to whom a business owes money.

current account an account at a bank where a person or company puts money which can be withdrawn at any time.

current assets assets which can change considerably within a given accounting period.

These usually include stocks, debtors and cash.

customer the purchaser of the goods and services produced by a business.

D

dealer a person who buys and sells goods either as a wholesaler or retailer.

debentures securities given for money by a company which guarantees the holder's

rights over the company's assets.

debit (noun) an entry in an account which records money that is owed.

debit (verb) to charge (an account) with the cost of goods or services supplied. debt money, goods or services that are owed.

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debtor a person or company that owes money to another.

deed a written agreement containing a promise by someone to do something which is signed.

demand (noun) the amount of a product or service wanted by people who are prepared to pay the going price for that product or service.

department a part of an organization, usually responsible for a certain activity. discount (noun) (1) a lowering in the price of something. (2) an amount by which a price has been lowered.

dividend the amount of money paid out of profits by a company to its shareholders.

document against payment describes the conditions under which the documents

attached to a bill of exchange will be given to a foreign buyer, i.e. only when he pays the bill of exchange immediately.

E

earnings everything that one earns.

economics the study of the use of scarce resources in the production and marketing of

goods and services.

economy the financial state of a country, the operation of a country's business activities. employment (1) the state of having a job. (2) the kind of job one is employed in.

enclose to put something in an envelope, parcel etc., along with something else,

especially a letter.

endorse to sign one's name on the back of a document. enquire to ask (about something).

equity (1) the rights of ordinary shareholders to a share in the profits of a company. (2) the ordinary shares in a company.

establish to set up, to bring into being.

expense cost which is related to marketing goods or services or related to the

administration of a company.

F

financial statement a document, such as a balance sheet, which describes the financial situation and performance of an organization.

fixed assets assets owned by a company which are meant to be used by it in the running of the business over a long period of time, e.g. land, buildings, machinery.

forecast (verb) to tell in advance what may happen in the future, often by examining what is happening at the present or has happened in the past.

franchise a legal agreement giving permission for a business to market a product or service developed by another business.

fringe benefit any kind of extra reward given to an employee in addition to his salary, e.g. cheap meals, use of a car etc.

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funds (1) money available to be spent at any time. (2) all the assets of a company. (3) UK government stocks and securities.

G

going public the process of changing a private company into a public company. gross income earnings before any deductions for tax.

guarantor the person who has agreed to repay a loan or overdraft if the borrower fails to do so.

H

hoarding a large easily seen surface, usually of wood, on which advertisements are placed.

holding company a company which controls one or more companies by owning more than half the ordinary shares in them.

human relations the study of social problems among people, e.g. those that arise in a company.

I

impact the effect of something, e.g. an advertisement or a special promotion on the public.

income money coming in, e.g. from wages or salary (to a person), from sales, from investments.

income statement a written or printed list of money received and money paid out for a period.

incorporated formed into a corporation.

induction the introduction of new employees to the way in which an organization

works.

instalment a regular payment of a debt at certain intervals of time. interest money paid to a lender of cash for the use of it. inventory another term for stock.

invoice a printed notice, sent to the buyer of goods which gives the details of the goods ordered (the number, size, price etc.) and of any trade discounts.

J

job description a broad description of the roles and tasks required by a given job in an organization.

job specification a detailed statement of the personal, physical and intellectual qualities required for the successful performance of a particular job. It is used in drawing up the recruitment profile.

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joint-stock company a company whose capital is made up of shares held by a number of people.

joint venture two or more companies or persons coming together for a special purpose.

K

know-how skill, knowledge, experience

L

labour (1) work. (2) people who do heavy work with their hands (usually) in a factory. laissez-faire the theory that governments should not interfere with how firms ( or people)

conduct their business.

lay oCf (verb) to stop employing (a person).

layout the arrangement or design of a drawing, an advertisement, printed material etc. ledger a book in which all the accounts of a business are kept.

letter of credit (LIe) a letter from one bank to another which gives the receiving bank authority to pay a certain sum of money to the person named in the letter.

liabilities the amount of money that a company owes to others.

liability (1) debt, sum of money that has to be paid. (2) the state of being legally responsible for loss, damage, a debt etc.

limited company a company which is a separate legal entity and whose shareholders enjoy limited liability.

limited liability shareholders enjoying limited liability are only responsible for the debts of the company to the limit of the money they have invested in it.

loan an amount of money given to a person, to be returned later.

loss a failure to make a profit.

M

macroeconomics the study of the whole economy of a country, i.e. a country's

production, demand, prices, imports, exports, etc. and their effects on each other.

manage (1) to be in charge of certain activities (or a certain department in a company). (2) to succeed in doing something which is difficult.

management (1) the act of managing. (2) a group of managers, i.e. group of people inside a company who control and direct workers. (3) deciding how plant, machinery, materials, men, money should all be used so that a company's financial aims can be reached.

managing director the director of a company responsible for the day-to-day running of the business. (In the UK he is also known as the chief executive, in the US he is known as president).

marketing the business activity which aims to satisfy the wants of customers.

H\1

marketing mix the major functions of marketing usually given as product, price, promotion and place.

market research finding out all about people who buy, or may buy, a company's product or service.

market segmentation dividing a market into separate groups or segments each of which has something in common.

microeconomics that part of economics which studies individuals, companies, products, rather than the whole economy.

memorandum of association the document outlining the external organization of a company which must be presented to the Registrar of Companies before a certificate of incorporation can be issued.

merger when two companies agree to combine to form a new company. mortgage a loan secured on property.

N

net current assets current assets minus current liabilities.

net profit gross profit minus expenses such as the costs of marketing, finance and administration.

o

objectives the specific aims to which the activities of an organization are directed.

open an account to make an arrangement that one can leave or borrow money, or get credit from a bank, shop etc.

organization an arrangement of parts of a group to form an effective whole, a business,

company or other body.

outgoings money that is being paid out. outstanding of a debt, not yet paid.

overdue late, having gone beyond the correct or agreed time.

overheads expenses not directly related to producing a product or a service, e.g. selling expenses, rates, rent, managers' salaries etc.

p

partnership an agreement between two or more people to share in a business together. payment the amount of money paid for something, the act of paying.

personnel all the people employed in a company

primary sector all businesses engaged in farming. fishing, mining, quarrying and drilling.

private limited company a company whose shares cannot be bought on the stock exchange.

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proceeds money gained from the sale of something.

profit the result of more money coming in from the sale of a product or service than all the costs related to it.

profit and loss account a record, which usually covers a year, of a company's total sales, total expenses, and showing either a net profit or a net loss.

promissory note a promise in writing to pay, without any conditions, a certain sum of money to the holder of the note or to some other named person, either when the money is asked for or at some other named date.

promotion (1) action to help the sales of a product or service. (2) advancement in a job. public limited company (PLC) a limited liability company whose shares can be bought by the public.

public relations the activities undertaken by a business to influence the views and attitudes of the public.

Q

quota a limited amount (of people, goods etc.) allowed into a country by government regulations.

R

real income the purchasing power of money income. recession a downturn in the level of economic activity.

recruitment the personnel function that supplies new employees who have the correct qualifications for a given job.

Registrar of Companies a civil service function that is responsible for the registration

of companies and the issue of certificates of incorporation.

retailer a person who sells goods directly to the public, e.g. a shopowner. retained earnings the undistributed profits of a business.

revenue money received by a business from the sale of goods and services produced.

s

secondary sector manufacturing and construction industries.

separate legal entity the status conferred on a limited liability company by the

certificate of incorporation. The company is a separate person in law from the people who own it. It can sue and be sued, buy and sell property.

slump (verb) to become suddenly much lower or smaller (of prices, profits etc.)

sole trader the form of business organization in which one person is the sole owner and has unlimited liability.

standing order an instruction to a bank to payout a certain amount of money at certain regular times.

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stock exchange central market for the trading in shares of public limited companies that have been accepted for listing.

subsidiary a company in which another company holds the majority of shares and can therefore control its activities.

subsidies payments made by a government to certain types of business to help improve its competitive position.

supply (noun) (1) the act of giving something that is needed or asked for. (2) the availability of goods or materials.

T

tangible asset a physical thing of value belonging to a person or company, e.g. a house,

furniture, machinery etc.

target audience a group of people that advertising material is specially aimed at. tertiary sector businesses which offer services for sale.

trade discount money deducted from the selling price by a manufacturer or wholesaler when selling to another dealer.

training the process of being taught to do something, or of improving one; s skills in something.

transaction a piece of business that has been done.

turnover the total amount of goods or services sold over a certain time, usually expressed either in terms of value or sometimes of units sold.

u

unlimited liability a situation where each member of a company is legally responsible for his share of the total debts of the company.

v

vacancy the state of being vacant, a post which is vacant.

value added tax (VAT) a type of tax, commonly used in Europe, which is charged on the difference between what a person pays for goods or services and what he/she sells them for.

venture (noun) a business enterprise that carries a certain amount of risk.

w

wholesaler a person who gets goods in large quantities from manufacturers etc., and sells them in quantity to shopkeepers and traders.

wind up to close down (a company).

write down to record the value of something at a certain lower level than the previous year.

write off to record something as having no cash value.

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