9.

1 Face to face
The Importance of Face-to-Face Communication

In today’s digital age the importance of face-to-face communication seems to be fading,

as one can go almost an entire day without actually interacting with people. People rely
heavily on the convenience of emails, text messages, and social media.

While it is impossible to deny the importance of these platforms and the way that they
have revolutionized communication, it is important to balance these online interactions
with face-to-face communication.

Face-to-Face Advantages

You can gauge how interested someone is in what you are talking about by reading their
body language. If you are in a meeting and your colleagues are fiddling with their pens,
or checking their watches, you know that you have to: adjust the tone of your voice or use
more exciting language to capture their attention. Likewise, if colleagues and partners are
actively nodding their heads and smiling, it is clear that they are engaged with you and
your message.

Effectiveness

Face-to-face communication and in-person meetings can boost efficiency. Instead of

spending an entire day e-mailing back and forth, you can hash out all of the details of a
project in one go. These meeting can also boost creativity as the overall energy will be
higher so you can brainstorm and solve a multitude of problems at one time.

Face-to-face communication can also be much more effective for those who may struggle
with written communication. Everyone has their own unique set of skills, and some
people are much more fluid and clear with verbal communication.

A Personal Touch

Adding the “personal touch” of face-to-face communication is much more important to

those dealing with outside clients and stakeholders. A sense of community comes with
the ability to interact and socialize. This sets the foundation for trust, and ultimately
creates a better working relationship. While face-to-face communication is not always an
option due to distance or conflicting schedules, it is important that you do not forget
about it completely. Whenever possible, take the time to interact with your colleagues
face-to-face and enjoy the benefits.

9.2 Benefit of Face to Face Communication

1. Easier to convince people.
Communication over text or email can be cumbersome and ineffective. You may not
have their full attention, or they may just be skimming over the words you’ve written.

Swaying people to our point of view is an essential skill for the small business owner.
And the vast majority of the time, it’s much easier to get people to see your perspective
when they’re in the room with you.

You aren’t an email window that can just be closed and forgotten about. You can engage
them, change tactics, and make your case – persuasively!

It’s a lot harder to say “no” to someone in-person than over the phone.

2. Stronger Connections.

Trust isn’t built over text-message. A colleague or client who never sees your face is not
likely to feel the same connection to you as someone whose hand you shake on a regular
basis.

Getting to know someone, even if it’s just what kind of dog they have or where they like
to go on vacation, can go a long way. It’s the personal touch. Face-to-face interaction and
socialization lead to a sense of community and camaraderie, which leads to a stronger
working relationship in the long-term.

3. Better non-verbal understanding.

It’s not just about talking. There’s another important dimension of communication: body
language. Non-verbal cues can tell you a lot about a person, and that’s information that
you can’t get over email, over the phone, or even over video chat.

Body language can tell you how a person is feeling – and how they’re feeling about
what you’re  talking about. It can tell you if they’re not confident about a sale or a deal. If
they’re inattentive to your pitch. If their friendliness is sincere or just an act.

Based on non-verbal cues, you can change tactics in a pitch, adjust what tone of voice or
what language you’re using, and tell for sure when you have someone’s attention back.

4. Quicker and more effective.

Whether we’re talking with our own team or communicating with a client or investor,
email can cause more problems than it solves. Problem-solving is better done face-to-
face.

It might take ten emails to hash out a minor detail that could be handled in two minutes in
person. You might go back and forth all day trying to find a solution to a problem that
you could solve in a half-hour meeting. Instantaneous replies can build off each other. A
question won’t sit in an inbox for three hours.

5. More team participation.

Getting your team all in one room can be a hassle, but it’s worth it. People are more
engaged and more collaborative in face-to-face settings. This seems especially true for
millennials, the generation most known for being tech-reliant.

Though some members of your team might go out on a limb to send you an idea or a
quick thought over email, others might only do so if prompted. A community setting like
a meeting is a great space to invite participation from every member of your team.

9.3 Cons of face-to-face communication

1) Finding appropriate time

2) Cost of facilitating a meeting

3) Ineffective in large meetings

In conclusion, face-to-face communication is perhaps the most preferred channel of

communication in the workplace. It is highly preferred for being effective with ensuring
accurate passage of information while giving the listener an opportunity to seek instant
clarification. In addition, it enhances productivity while increasing trust between
attendees. However it is highly prone to various communication barriers especially in
situations where the meeting size is too large.

10.1 What is Business Letters?

A business letter is a professional type of letter written for correspondence between
a company and another business or an organization and its customers. It follows an
approved structure with a tone that depends on the relationship shared between the two
parties. Since this letter serves as a means of communication for a commercial purpose,
it’s likely to contain valuable information on a business-related concern. It must be clear,
concise, and courteous to relay information effectively.

Although you can always use notes and memos to make announcements, business letters
tend to be more formal in nature—making business letters more appropriate for setting
requests, forwarding complaints, and delivering a sales pitch.

10.2 9 Common Types of Business Letters

Acknowledgment Letter: From the name itself, an acknowledgment letter does nothing
more than to confirm a certain action for legal evidence. If you want to inform the other
party of your absence from work, they’ll likely send an acknowledgment letter as proof
that they received your message. Acknowledgment letters provide assurance to the
recipient and keep them from spamming you with follow-ups.

Apology Letter: Letters of apology express your regret for a fault or an inconvenience
that occurred in the past. The writer may also provide the measures to be taken to correct
these mistakes as a positive response to the situation. One must be sincere when writing
this letter to show that they accept accountability and are willing to resolve the issue as
soon as possible.

Appreciation Letter: When someone from the upper management wishes to express his or
her gratitude toward a lower-level employee, appreciation letters work their magic. An
appreciation letter—or what others call a thank-you letter—recognizes the efforts that
employees put into their work for continuous motivation. It acts as an inspiration for
employees to remain productive, especially during instances when performance becomes
seemingly low.

Cover Letter: Cover letters usually support an accompanying document for a more
persuasive approach. Personal résumés and business proposals often come with a cover
letter to help summarize your objective and call-to-action concisely for a recipient to
grasp. It’s important to keep these letters short so as not to divert one’s attention from the
main material.

Follow-Up Letter: Anyone looking to inquire about the status of a project, application, or
delivery of an item can send a follow-up letter to remind the person they are writing the
letter to about their request. Remember that you can only send these letters if you’ve
already had initial contact with the recipient.

Order Letter: It’s common for a buyer to write to a vendor to place an order for a product
or service. The order letter must contain any specifications about the requested item for
clarification. You may also conclude the transaction by attaching your payment with the
letter, depending on the terms established by the business (recipient).

Recommendation Letter: Otherwise known as reference letters, professional

recommendation letters help “sell” a job seeker to a prospective employer. The person
writing the letter must describe his or her relationship with the subject as well as the
subject’s competence for the desired role. Some employers ask job applicants to provide
this letter in an attempt to verify what’s found in one’s résumé.

Resignation Letter: If you’re planning to leave your current job, it’s important to let your
employer know about your proposed departure from the company in your resignation
letter. It’s a written notice that employees must submit to their immediate supervisor to let
them know when their last day would be as well as their reason for leaving. In many
cases, writers choose not to disclose too much information about their decision but still
manage to remain polite and respectful throughout the correspondence.

Sales Letter: The purpose of this letter is to drive readers to act according to what you
want them to do. A good sales letter starts with a strong statement that aims to attract
readers and capture their interest, which may persuade them to choose you over your
leading competitors. It also details the benefits that readers may acquire if they choose to
respond to your sales call.
10.3 How to Write a Business Letter
Step 1: Determine the Type of Letter You Need
Step 2: Prepare an Outline
Step 3: Decide on the Appropriate Format and Order
Step 4: Use the Right Tone and Vocabulary
Step 5: Proofread Your Copy

What Are the Seven Basic Parts of a Business Letter?

Experts generally agree that there are seven basic parts in a business letter:

1. Sender’s address. Optimally, you want to have printed company letterhead.

Letterhead, similar to having a company website, conveys that your business is
legit. But even if the address is simply typed at the top, including your address
plays a practical purpose, because you don’t want the recipient to have to look up
your address in order to send a response.
2. Date. Whoever receives the letter needs to know when the letter was written. It’s
best to use a standard U.S. format. (Here’s an example: September 20, 2020.)
3. Recipient’s address. Include the recipient’s address so that you have the
information readily available for printing out the envelope. A full recipient address
also helps ensure the letter doesn’t get lost in the office shuffle wherever you are
sending it. The first line should be the name, including any honorifics such as Mr.,
Ms., Dr., etc. The second line is the recipient’s job title. Their company’s name
goes on the third line. The remaining lines include street address, city, state, and
ZIP code.
4. Salutation. A “To whom it may concern” or “Dear Sir or Madam” is a good way
to ensure that your letter goes nowhere. Find out the name of the person who
should receive the letter, even if you have to do some searching on Google or
LinkedIn, or call the company.
5. Body. Time is money in the business world, so get down to business and quickly
make your case or communicate your message. Stay professional, be clear and
concise, and quickly convey the point of the letter.
6. Closing/signature. Stick with a more formal closing such as “Sincerely” or
“Thank you.” You should only capitalize the first word of the closing. Remember
to follow the closing with four lines of space in order to make room for your
signature, which demonstrates your personal stamp of approval of the letter’s
contents.
7. Enclosures. If there are additional items to enclose with the letter, it’s best to list
them, so that the recipient remembers what was included with the letter. Include
enclosures three lines below your signature or one line below the typist’s initials.
Use this style if, for example, you want to indicate that there are two enclosures:
Enclosures (2). If you want to list each separate item, use this style: Encl: product
brochures (2), product photos (3).
10.4 Dos and the Don’ts of a Business Letter
Dos
1. Do put your recipient in mind. 

2. Do keep writing clear and concise. 

3. Do select a professional letterhead. Cover letters

4. Do have it typewritten.

Don’ts
1. Don’t be careless with your words. 

2. Don’t inject personal opinions. 

3. Don’t give in to the temptation to use sarcasm for humor. 

4. Don’t forget your call-to-action. 

11.1 The importance of telephone communication in business.

The telephone offers a more personal touch, allowing businesses the opportunity to
integrate real-time two-way communication with customers. 

Offering online options for your customers to contact your business is essential nowadays
for delivering great customer service, but so is providing and efficient telephone system.
With a suitable telephone system in place, your customers will be able to contact your
business directly and get answers to their queries often quicker than if communications
are handled through email or online platforms.

An efficient business telephone system streamlines good communication between

organization and customers. The telephone offers a faster interaction than email, is more
personal, and easy and quick to use.

11.2 When is a call the right way to communicate?

The method that you choose to communicate should be appropriate to the audience,
situation, and nature of the message that needs to be communicated. Often a call is the
best way to communicate. Other times your task will be best accomplished with an instant
message or SMS. And, even email sometimes is the way to go (though it is too often
abused). 
When you do decide to use the telephone to communicate, make sure you follow the
following set of do’s and don’ts.

11.3 Telephone Do's & Dont's

TELEPHONE DO'S

 #1   When answering a business phone it is important that it is not allowed to ring more
than three times. Advise employees that the second or third ring is the ideal time to pick
up the telephone.

 #2   The phone should be answered with a positive greeting such as “Hello,” “Good
Morning,” or “Good Afternoon,” etc. Following the greeting, the person who answers the
phone should give his or her name and the name of the business or organization that is
being contacted.

 #3   Put on a smile before placing or answering a phone call. When a person smiles it
affects the sound of his or her voice, giving it a more pleasant and friendly tone. For
clarity, the telephone should be held a distance of two fingers from the mouth.

  #4   Speak in a clear tone using a voice that is neither too loud nor too low. Words
should be enunciated and said slow enough that people are able to understand what is
being said to them.

  #5   If someone must be put on hold, ask for permission first, and give him or her the
option to leave a voicemail message. When taking them off of hold thank the caller to
show that their time is respected.

  #6   When a caller is speaking, listen to what he or she has to say without interruptions.

  #7   When placing a call a person should always state his or her name before asking for
the person that the call is for.

  #8   Always return phone calls if a return call has been promised. If a time frame was
given the caller must make every attempt to return the phone call as quickly as possible
within that frame.

  #9   If it is necessary to transfer a call, inform the person on the other end before doing
so. It is also important to explain the need for the transfer.

  #10   Before transferring a call, confirm that the person to whom the call is being
transferred is available. This person’s name should be given to the party who is being
transferred.

TELEPHONE DONT'S
  #1   If a person is answering the telephone, he or she should never answer on the first
ring. Callers do not expect this and will be taken off guard.

   #2   Don’t answer the phone when eating, chewing, or drinking. If a person has
anything in his or her mouth it should be swallowed or removed before picking up the
phone to either answer it or place a call.

   #3   If you must leave the phone, never leave the line open. Instead, place the person on
hold and check back with him or her frequently – preferably every 45 seconds.

  #4   Never say the words, “I don’t know” when talking with someone on the phone. The
ideal response to a question where there is not a definite answer is to say “I’ll check on
that for you.”

  #5   When talking to a client or a customer never say anything that can be taken as
rudeness. The person who answers the phone should always talk to the caller in the way
that he or she would like someone to speak to them.

  #6   A person should never use slang when speaking to a caller. Swear words should
also never be used and may be illegal under certain circumstances, according to Federal
law.

  #7   It is never acceptable to argue with a caller.

  #8   Do not transfer a call without informing the person on the phone and asking
permission to do so.

  #9   When ending a phone call, do not hang up the phone without a positive closure such
as “Thank you for calling,” or “Have a Good Day.”

11.4 Business Phone Etiquette

The Importance of Business Phone Etiquette

Good business phone etiquette is vital. It’s often the initial communication point between
you and your customers that forms a first impression, and it can help boost customer
loyalty. Answering calls swiftly and taking messages displays competency, and lets your
customers feel cared for. Listening attentively before responding conveys patience and
authenticity; which improves customer relationships. Asking the right questions forms
part of good phone call etiquette too, and helps you ascertain whether or not your
customers are satisfied.

The Risks of Poor Business Phone Etiquette

Customers often hang up when their calls are not answered rapidly, sending them to your
competitors instead. When a customer calls and you don’t take a message if the person
they’re looking for is unavailable, you may lose the customer. Not answering politely
with a proper greeting displays bad business phone etiquette, and may discourage callers
from conducting business with you. Ending calls prematurely is also bad phone call
etiquette, potentially leading to disgruntled customers. If you are unable to speak for the
duration of the call, request a convenient call-back time from the customer instead.

How Business Phone Etiquette Impacts Revenue

Satisfied customers often spread the news about great customer service via word-of-
mouth, which could lead to more business for you. Alternatively, if they've experienced
bad service, they may share that experience and hinder your profits. Your business may
also receive either good or bad customer service reviews on social media or online.
Negative online publicity could damage your company’s reputation, and you could lose
both current and prospective customers, thus hindering your revenue. In fact, continuous
bad business phone etiquette could lead to a business shut down. Good online publicity is
similar to effective advertising. It attracts new business opportunities and customers, and
bolsters business and revenue from existing customers. 

Key Phrases and Vocabulary

How may I be of help: This is a formal phrase used to show politeness. It means "Can I
help you?"

calling: telephoning

out of the office: not in the office

take a message: to write down a message from the caller

urgent: very important

delivery: the bringing of goods to a client

mentioned: said

resolved: taken care of

as quickly as possible: in the fastest manner, ASAP

shipment: delivery, the bringing of goods to a client

assured: a certainty that something is true or will happen

pleased: happy
delayed: not be able to do something on time

looks like: seems

staff meeting: a meeting of employees

lasts: to take time

schedule: make a future appointment

12.2 Definition
1.      Definition

Asking and offering for help is one of the expression in English which states that we ask and
provide assistance to someone. Usually the asking / offering for help sentence starts with the
capital Auxiliaries in the form of can, may, will, will, shall, should, may, might, and must.

2.      What the purpose of the expression?

The purpose of this expression is to ask for help and offer help.

3.      When is the expression use?

This expression is used when we want to ask for help and offer help.

12.3 How to offer?

How to offer?
A. May I (do something)?

            May is a modal verb that indicates a possibility, a concession, or a request. In its
interrogative form, may can be a very formal way of offering help.

1. May I offer you my help?

2. May I carry your bag for you?

B. Would you like me to (do something)?

     Would … like is the conditional form of like which can be used to express an offer of help to
someone. It is a formal and kind way to express yourself.

Example:

1. Would you like me to open the window?

2. Would you like me to bring you a drink?

C. Can I (do something)?

            The modal verb “can” is used to offer help somewhat less formally while still being kind.
This means you can use it with friends as well as strangers. It is a warm way of showing your
desire to do something for the other person.

 1. Can I bring you a dessert?

2. Can I give you a lift?

 D. Do you want me to (do something)?

            While less formal than the previous forms, this interrogative is no less kind. It is used
when you are not completely sure of the answer your offer will receive.

 1. Do you want me to go for you?

2. Do you want me to come to pick you up?

E. Shall I (do something)?

            This modals does not have very widespread use, especially in the United States, where it
has practically disappeared. It is only used for first person singular and plural. It is an
encouraging way to express your wish to assist someone.

 1. Shall I turn off the radio?

2. Shall I help you with your homework?

12.4 Formal and Informal Situation

NO ASKING / REQUESTING OFFERING SOMETHING

THE OFFERS

 
1. FORMAL FORMAL

·           Would you care for...?  

·           Would you mind getting the door ·           Let me give you something to .....
for me?
·           Can i give you a hand?
·           Could you give me a hand?
·           Would you like me to do
 ·           Would you mind helping me out..? something for you?

·           Could you help me please? ·           Would you like to go to .......?

·           Would you mind joining us? ·           Would you like to come along?

·           Would you like .........? ·           Could I offer you a glass of water?

  ·           Shall I get you something?

INFORMAL ·           Is there anything else I can help

you with?
·           Can you get me something?
·           May i offer you something?
·            Can i use your .....?
 
·           Can you take a book for me?
INFORMAL
·           Will you wait a moment?
 
 
·            Need any help??
·           Could you tell me?
·            What can I get for you?
 
·            Won't you have a something?

·            Do you want something to eat?

·            Have some

·            Like one?

·            Are you up for some?

·            What about some?

ACCEPT REFUSE
          

          Accepting offer is as important as        Refusing offer is indicate that

offer something. You have to make sure someone is not willing to accept the
to thank to someone to show your offering. You have to make sure to refuse
politeness. The following phrases are politely.
commonly used when accepting an offer:

 
2. ·            Certainly ·           I wish i could help you. But i am
busy.
 ·            Thank you ·           No, thanks

·            Yes, please ·           Not for me, thanks

·            I'd like it very much ·           No, I really won't thank you

·            Thank you, I would ... ·           I'd like to, but I have ...

·            That would be very nice ·           I'm afraid I can't thanks anyway

·            I'm pleased to do that ·           It would be a great pleasure to ...

But I'm afraid I have something
·            With pleasure

·            Yes, I'd like some.

·            Oh yes, I’d love to

·            That sounds nice

·            That’s very kind of you

12.5 Example
                  Hotel

A : "Is there anything can I help you, Sir?"  (Offering help)

B : Yes, Please. "I need the best room here." (Accepting Offer)

A : "Okay, I will find it, Sir. Please wait a minutes." Shall i complete the registration form

       for  you? (Offering something)

B : Yes, please and thank you. (Accepting offer)

13.2 Definition
Vocabulary can be defined as the words of a language, including single items and phrases or
chunks of several words which covey a particular meaning, the way individual words do.

13.3 Vocabulary of economic terms

ECONOMIC TERMS IN ENGLISH

1 Adjusted Balance Saldo Setelah Penyesuaian

2 Adjusted Trial Balance Neraca Saldo Penyesuaian
3 Actual Liability Hutang Nyata
4 Actual Price Harga Sesungguhnya
5 Actual Quantity Kualitas Sesungguhnya
6 Actual Cost Biaya Sesungguhnya
7 Actual Factory Overhead Overhead Sesungguhnya
8 Adjusted Trial Balance Neraca Saldo Penyesuaian
9 Adjusting Entries Jurnal Penyesuaian
10 Allowance For Inventory Decline To Cadangan Penurunan Nilai Persediaan
Market
11 Asset Approach Pendekatan Aktifa
12 Amortization Penyusutan Atas Harta Tak Berwujud
13 Account Perkiraan
14 Accounting Instruction Instruksi Akuntansi
15 Accounting Principle Akuntansi Dasar
16 Accounting Period Periode Akuntansi
17 Accounting Income Laba Akuntansi
18 Accountant Fee Expense Biaya Akuntan
19 Accounting Procedure Prosedur Akuntansi
20 Balance Sheet Neraca
21 Auditor Pemeriksa Keuangan
22 Audit Planning Perencanaan Audit
23 Audit Fee Pendapatan Audit
24 Accrued Tax Payable Hutang Pajak
25 Accrued Inters Payable  Bunga Terhutang
26 Accrued Wages Payable  Upah Terhutang
27 Average Method Metode Rata-Rata
28 Balance Per Bank Saldo Menurut Bank
29 Basic Financial Statement Laporan Keuangan Pokok
30 Bank Statement Rekening Koran
31 Balance Amount Keseimbangan Jumlah
32 Betterment Perbaikan
33 Budget Anggaran
34 Break Even Point Titik Impas
35 Budget Cycle Siklus Anggaran
36 Cash Payment Journal Buku Kas Pengeluaran
37 Cash Receipt Journal Buku Kas Penerimaan
38 Cost Biaya
39 Currency Mata Uang
40 Currency Asset Harta Lancar
41 Deduction Pengurangan
42 Cost Of Sold Harga Pokok Barang Yang Di Jual
43 Defective Goods Produk Rusak
44 Direct Costing Penetapan Biaya Langsung
45 Direct Expense Biaya Langsung
46 Deferred Gros Profit On Realization Laba Kotor Yang Belum Direalisasikan
47 Debit Note Nota Debet
48 Deposit Slip Bukti Setoran
49 Employee Earning Statement Laporan Gaji Karyawan
50 End Of Month Trial Balance Daftar Saldo Akhir Bulan
51 Equities Kekayaan
52 Economic Life Umur Ekomoni
53 Equipment Peralatan
54 Earning After Interest And Taxes Pendapatan Sesudah Bunga Dan Pajak
55 Earning After Tax Pendapatan Sesudah Pajak
56 Expired Kadaluarsa
57 Extra Ordinary Loss Kerugian Yang Luar Biasa
58 Extra Ordinary Retirement Penarikan Aktiva Sebab Luar Biasa
59 Fiscal Year Tahun Pajak
60 Extra Ordinary Repairs Perbaikan Luar Biasa
61 General Accounting Akuntansi Umum
62 General Journal Jurnal Umum
63 Furniture & Fixture Peralatan
64 Fusion Penggabungan
65 General Ledger Buku Besar
66 Funds Dana
67 Fraud Kecurangan
68 Inflation Inflasi
69 Indirect Operating Expense Biaya Usaha Tak Langsung
70 Income Summary Iktiar Rugi Laba
71 Income Statement Account Pendekatan Laba Rugi
72 Income Laba
73 Incremental Cost Biaya Tambahan
73 Individual Proprietorship Perusahan Perorangan
75 Indirect Departemental Expense Biaya Departemen Tak Langung
76 Inderect Material Bahan Baku Tak Langsung
77 Initial Inventory Persediaan Awal
78 Interest Bunga
79 Interest Income Pendapatan Bunga
80 Interest Ayable Hutang Bunga
81 Interest Receivable Piutang Bunga
82 Internal Audit Pemeriksan Intern
83 Inventory Persediaan
84 Inventory Of Material  Persediaan Bahan Mentah
85 Inventory Trun Over Perputaran Persediaan
86 Input Tax Pajak Masukan
87 Installment Payable Hutang Cicilan
88 Interest Factor Faktor Bunga
89 Inventory Valuation Penilaian Persediaan
90 Interest Expense Biaya Bunga
91 Invoice Faktur
92 Joint Cost Biaya Gabungan
93 Internal Control Questioary Pertanyaan Pengendalian Intern
94 Job Order Cost System  Sistem Biaya Pesanan
95 Job Time Ticket Kartu Jam Kerja
96 Market Rate Harga Pasar
97 Markdown Cancellation Pembatalan Penurunan Harga
98 Marketing Expense Biaya Pemasaran
99 Marketing Pemasaran
100 Market Value Of Stock Ex Right Harga Pasar Saham Tanpa Hak Beli
Saham
13.4 Example
Example
1. The auditor has questioned the legality of the contracts.

2. Raisa needs to check her accounts to see if she can afford the new house.

3. One look at the balance sheet told Arry that the company wasn’t worth investing in.

4. The loopholes in the taxation system helped the wealthy oil company owner escape millions of
dollars in income tax, without technically violating the law.

5. Marketing is the process or technique of promoting, selling, and distributing a product or

service.

6. This total is then divided by interest expense to obtain the times interest earned ratio.

7. This should take the form of a copy of a bank deposit certificate for the loan and a copy of
either the deposit slip or passbook for the account that the loan was paid into.

8. The new system will be compatible with existing equipment.

9. He was preparing the federal budget for the upcoming fiscal year.

10. The government is running short of hard currency to pay for imports.

14.2 Definition
Finance is a term for matters regarding the management, creation, and study
of money and investments. Specifically, it deals with the questions of how and why an
individual, company or government acquires the money needed – called capital in
the company context – and how they spend or invest that money. Finance is then often split into
the following major categories: corporate finance, personal finance and public finance.

14.4 The importance of finance in business

The importance of finance in business

Most businesses are ultimately all about money, and how well it is managed determines how
successful the business is. Therefore, any businessperson needs to recognize the importance of
finance in business. I believe it is fair to say that without investment, a business can barely exist.

Economics is the part of any business that needs the most attention with regards to how much to
spend and on what, creating budgets, analyzing investment system, and many other things that
determine the smooth running of a business. In this article, we are going to look at the importance
of finance in business.

What is Business Finance?

Business finance is the process of managing organization money. The purpose of business
finance is also to ensure that a business has adequate operating funds and that it is spending and
investing its money carefully, wisely, and effectively. The importance of finance in business is in
the ability to ensure that a business operates without any financial hiccups like running short of
cash, and at the same time making sure, that funds are secure and well invested for long-term
gains.

Moreover, even though finance is dependent on accounting, Finance is more active while
accounting is more descriptive; therefore, you can use accounting data to manifest perceptible
results.

Why is business finance important?

We all know that all businesses run on money, and business finance is there to help you make
smart and wise financial decisions concerning long-term funding strategies as well as cash flow.
By learning more about business finance, using the money you have in your business, and how to
get even more capital when you need it, the profitability of your organization will improve, and
you will increase the potential to leverage more opportunities.

Some of the reasons why finance is important in business are as follows :

1.      Creating Profit for the business

2.      Exploring new products and markets

3.      Creating more assets for the business

4.      Making sure operational expenses are met

5.      Managing inevitable risks

6.      Managing the cash flow of a business

7.      Final Thoughts

14.5 Assignment
Fill in the blanks with the appropriate words below!

assets purchase company money period

time individual product business office
capital long-term success or repaid
financial credit obtains operations customer