Texts For 2 Term 2023-24 Economics, Logistics and Management

Company
Company is an organization that makes or sells goods or services in order to get

money. Business enterprises usually take one of three forms: individual
proprietorships, partnerships or limited-liability companies. In the first form, a
single person holds the entire operation as his personal property, usually
managing it on a day-to-day basis. Most businesses are of this type. The second
form, the partnership, may have from two to 50 or more members. as in the case
of large law and accounting firms, brokerage houses (companies of brokers), and
advertising agencies. This form of business is owned by the partners themselves;
they may receive varied shares of the profits depending on their investment or
contribution. Whenever a member leaves or a new member is added, the firm
must be reconstituted as a new partnership. The third form, the limited-liability
company, functions on the basis of limited liability. Limited liability is the legal
position under which the loss that an owner (shareholder) of a business firm may
incur is limited to the amount of capital invested by him in the business and does
not extend to his personal assets. Acceptance of this principle by business
enterprises and governments was a vital factor in the development of large-scale
industry, because it enabled business firms to mobilize large amounts of capital
from a wide variety of investors who were understandably unwilling to risk their
entire personal fortunes in their investments.
Companies can be classified into various types based on their industry, structure,
ownership, and more. Here are some common types:
1. By Industry:
- Manufacturing Companies
- Service Companies
- Retail Companies
- Technology Companies
- Healthcare Companies
- Financial Companies
2. By Ownership:
- Public Companies (traded on stock exchanges)
- Private Companies (not publicly traded)
- Government-Owned Companies
3. By Structure:
- Sole Proprietorship
- Partnership
- Limited Liability Company (LLC)
- Corporation
4. By Purpose:
- Non-profit Organizations
- For-profit Companies
5. By Size:
- Small and Medium Enterprises (SMEs)
- Large Corporations
6. By Business Model:
- B2B (Business-to-Business)
- B2C (Business-to-Consumer)
Glossary
1. enterprise müəssisə a company or business
2. limited liability company məhdud məsuliyyətli cəmiyyət a business structure in the
(L.L.C) (MMC) U.S. that protects its
owners from personal
responsibility for its debts
or liabilities
3. contribution əməkdaşlıq,töhfə a gift or payment that is

made to a person or an
organization in order to
help pay for something
SYNONYM donation
4. enable imkan vermək give (someone) the
authority or means to do
something; make it possible
for
5. entire bütöv,tam with no part left out; whole
6. vital həyati,mühüm absolutely necessary;
essential
7. large -scale industry iri sənaye industries that are having
huge infrastructure, raw
material, high manpower
requirements and large
capital requirements
8. fortune bəxt, tale chance or luck as an
arbitrary force affecting
human affairs
9. suffice kifayət etmək,catışmaq be enough or adequate
10. merger birləşmə a combination of two
things, especially
companies, into one
11. goodwill şirkətin prestiji, riendly or helpful feelings
xeyirxahlıq,rəğbət toward other people or
countries
12. subsidiary filial,yardımçı, köməkçi a company that is part of a
larger and more important
company
13. ownership mülkiyyət, sahiblik, the act, state, or right of
mülkiyyətçilik possessing something
14. to reap bəhrəsini görmək,biçmək to get (something, such as
a reward) as a result of
something that you have
done; to cut and collect (a
plant, crop, etc.)
15. stock fond, aksiya, inventar a share in the ownership of
a company
16. bankruptcy iflas, müflislik, bankrotluq a legal proceeding
involving a person or
business that is unable to
repay their outstanding
debts
UNDERSTANDING THE MAIN POINTS

1. Review questions.
1)What is meant by the term "company"?
2) What are the usual forms of business enterprises?
3) What is meant by the term "individual proprietorship"?
4) What is meant by the term "partnership"?
5) What is the third form of business enterprises?
6) What does the term "limited liability" mean?
Speaking: Work in pairs .

1. Name a well-known manufacturing company.
2. Can you provide an example of a service company?
3. Identify a prominent retail company in the market.
4. Name a leading technology company.
5. Mention a notable healthcare company.
6. Provide the name of a major financial company.
7. Name a public company traded on the stock exchange.
8. Can you give an example of a private company?
9. Identify a government-owned company.
10. Name a famous corporation.
Translate
1. Bankruptcy is the state of being unable to pay your debts.

2. If you have a controlling interest in a company, you own enough shares to
be able to make decisions about what happens to the company.
3. Holding company controls the composition of the board of directors of the
subsidiary company.
4. Entrepreneur is someone who starts a company, arranges business deals,
and takes risks in order to make a profit.
5. The quality of entrepreneurship is seen by many economists as an
important explanation of differences in the rate of technical progress
between countries. Someone creates a job for you, gets orders, collects
money from the clients and takes on the responsibility for making both
ends meet.
6. Bankrupt is someone who has officially said that they cannot pay their
debts. Holding company is a company that holds a control packet of shares
in other companies.
7. The GNP is the total value of all the goods and services produced in a
country, including income from abroad.
Fill in the gaps with the words from the box below.
responsible,investment,owner,operation,actively,profits,liability,goods,
manages, partner
l) Company makes or sells … or services in order to get profit.

2) Proprietor is an … of a business.
3) Individual proprietor keeps the entire … as his rented property.
4) Individual proprietor … his personal property on a from time to time basis.
5) Partnership is a business owned by two or more partners who share the …
and losses.
6) Partners share the profits and losses according to their … or contribution.
7) Whenever a … leaves or a new partner is added, the firm must be
reconstituted as a new partnership.
8) Sleeping (silent) partner is someone who owns part of a business but is not …
involved in operating it.
9) Limited … company is a company whose owners only have to pay a limited
amount if the company gets into debt.
10) Limited liability is the legal position of being … for paying only a limited
amount of debt if something bad happens to yourself or your company.
TERMS OF PAYMENT
METHODS OF PAYMENT IN DOMESTIC TRADE

Terms of payment are defined as conditions of payment agreed between a buyer
and a seller for goods sold or services rendered. They cover any conditions on the
payment and any discounts the buyer will receive. Domestic trade is the exchange
of goods, services, or both within a country. It is subdivided into two categories:
wholesale and retail. Wholesale trade is concerned with buying goods from
manufacturers or dealers or producers in large quantities and selling them in
smaller quantities to others who may be retailers or even consumers. Retail trade is
concerned with the sale of goods in small quantities to consumers. In practice,
manufacturers and wholesalers may also undertake retail distribution of goods to
avoid the intermediary retailer. The following terms of payment are commonly
used in domestic trade.
Cash with Order (CWO): the buyer sends payment with his order.
Cash on Delivery (COD): the buyer pays the company, which delivers the
goods/the carrier.
Payment on invoice: the buyer receives an invoice on or after delivery, which
describes the goods delivered, the sum to be paid, the period within which the
invoice must be paid.
Hire Purchase (HP): the customer makes a down payment (e.g. 10% of the total
price) and gets the goods; later he pays the balance/the remaining sum in
instalments.
Open-account terms: the buyer doesn’t pay for every delivery, but receives a
statement of account every month or quarter; which states the sum he owes the
seller.
Leasing: the leaseholder pays rent to the lessor; the lessor gives the lessee
permission to use the object for a fixed period of time.
Glossary
1. terms şərtlər the conditions or rules that limit
something (such as an
agreement or a contract)
2. trade ticarət, peşə, alver the action of buying and selling
goods and services
3. wholesale topdansatış the business of selling of goods
in large quantities and at low
prices, typically to be sold on by
retailers at a profit
4. retail pərakəndə the selling of goods to the public,
usually through shops
5. dealer alverçi, ticarətçi a person who buys and sells
goods
6. account hesab, hesabat, şərh records of income and expenses
7. lessor icarəyə verən a person who leases or lets a
property to another; a landlord
8. lessee icarəçi, kirəçi a person who rents land or
property from a lessor
9. instalment ödəniş, növbəti ödəmə a sum of money due as one of
several equal payments for
something, spread over an
agreed period of time
10. rent icarə haqqı the amount of money that you
pay regularly to use a house, flat,
or piece of land
11. to cover örtmək put something on top of or in
front of (something), especially in
order to protect or conceal it
12. to remain qalmaq,saxlamaq to stay in the same place or in
the same condition
13. quantity kəmiyyət, miqdar, say the aspect or property of
anything that can be measured,
weighed, counted, etc
14. intermediary vasitəçi a person who acts as a link
between people in order to try
and bring about an agreement; a
mediator
15. leasing icarəyə götürmək, lizinq take (property) on lease; rent

1. What does the term “terms of payment” imply?
2. What do they cover?
3. What terms of payment are commonly used in domestic trade?
4. What does COW stand for?
5. What does COD stand for?
6. What does HP stand for?
7. What does the term “payment on invoice” mean?
8. What does the term “leasing” imply?
2. Decide whether the following statements are true or false.

1. Terms of payment are defined as conditions of payment agreed between a
buyer and a seller for goods or services.
2. Terms of payment cover any discounts the seller will receive.
3. Domestic trade is the exchange of goods, services, or both within a country.
4. Domestic trade is subdivided into three categories.
5. Retail trade is concerned with buying goods from manufacturers or dealers or
producers in large quantities and selling them in smaller quantities to others who
may be retailers or even consumers.
6. Wholesale trade is concerned with the sale of goods in small quantities to
consumers.
7. Cash on Delivery is used when the buyer sends payment with his order.
8. Hire Purchase is used when the buyer pays the company, which delivers the
goods/the carrier.
9. Payment on invoice is used when the buyer receives an invoice on or after
delivery, which describes the goods delivered, the sum to be paid, the period
within which the invoice must be paid.
10. Cash with Order is used when the customer makes a down payment and gets
the goods; later he pays the balance/the remaining sum in instalments.
11. Leasing is used when the buyer doesn’t pay for every delivery, but receives a
statement of account every month or quarter; which states the sum he owes the
seller.
12. Open-account terms are used when the leaseholder pays rent to the lessor.
TERMS OF PAYMENT IN INTERNATIONAL TRADE
Trade that includes exchange of capital, goods, and services across nations is
called International Trade. To be successful in modern global marketplace,
exporters have to offer their customers attractive sales terms supported by
appropriate payment methods. A suitable payment method must be chosen
carefully to minimize the payment risk. Some terms of payment that are commonly
used in international trade are listed below.
1. Cash-in-Advance (Pre-Payment)
Cash-in-Advance is a pre-payment method utilized for paying for goods for
export. With cash-in-advance payment terms, the exporter can eliminate credit
risk, since payment is received before the ownership of the goods is transferred.
Wire transfers and credit cards are the most frequently employed cash-in-
advance options available to exporters. Cash-in-advance method of payment
creates many risk factors for the importers. Nevertheless, this method of
payment is inexpensive, because it involves direct importer – exporter
interaction without commercial bank involvement.
2. Open Account
This is the least secure method of trading for the exporter, but the most
attractive for buyers. Goods are shipped, and documents are sent directly to the
buyer, with a request for payment at the appropriate time. This option is the
most advantageous choice for the importer in terms of cash flow and cost, but it
is the highest risk option for an exporter. An exporter has little or no control
over the process. Open Account trading should only be considered, when an
exporter is sufficiently confident that payment will be received.
3. Letter of Credit
Letters of Credit are among the most secure tools available to international
traders. The Letter of Credit (LC) is a document issued by a financial
institution, or a similar party. This is a promise made by the buyer’s bank (the
opening bank) to send a certain sum of money to the seller’s bank (the advising
bank) to be credited to the seller (beneficiary). The buyer pays its bank for
rendering this service. A LC is useful when reliable credit information about a
foreign buyer is difficult to obtain, but you are satisfied with the
creditworthiness of your buyer’s foreign bank. A LC also protects the buyer,
since no payment obligation arises until the goods have been shipped or
delivered as promised. A revocable LC can be cancelled or changed without the
seller’s agreement. An irrevocable LC can be cancelled or changed with the
agreement of all parties of the contract.
4. Documentary Collection
Documentary Collection is an important bank payment method, when the sale
transaction is performed by the bank through an exchange of documents. The
exporter entrusts the collection of a payment to the remitting bank (exporter’s
bank), which sends documents to a collecting bank (importer’s bank), along
with instructions for payment. Documentary Collection involves using a draft,
which requires the importer to pay the face amount either at sight (document
against payment) or on a specified date (document against acceptance).
Documentary Collections facilitate import-export operations, but they do not
provide the same level of protection as the Letter of Credit.
Glossary
1. capital kapital, sərmayə the total amount of money (and
things with a monetary value, like
houses or cars) that a person or
institution owns
2. marketplace bazar an open, outdoor place in a town
where people buy and sell things
3. transaction əməliyyat. saziş a business deal : an occurrence
in which goods, services, or
money are passed from one
person, account, etc., to another
4. tool alət an instrument (as a saw, file,
knife, or wrench) used or worked
by hand or machine to perform a
task
5. creditworthiness kredit ödəmə bacarığı the fact that somebody can be
trusted to pay back money that is
owed; the fact that somebody is
safe to lend money to
6. obligation öhdəlik the condition of being morally or
legally bound to do something
7. draft layihə, eskiz a drawing, sketch, or design ; a
first or preliminary form of any
writing, subject to revision,
copying, etc. ;
8. beneficiary ianə alan şəxs a person who receives money or
property when somebody dies
9. to minimize azaltmaq reduce (something, especially
something undesirable) to the
smallest possible amount or
degree
10. to utilize istifadə etmək to use something in an effective
way
11. to employ qulluğa götürmək, tətbiq etmək give work to (someone) and pay
them for it
12. to issue çıxarmaq, nəşr etmək to put forth or distribute usually
officially
13. to entrust etimad etmək, etimad to give someone the
göstərmək responsibility of doing something
or of caring for someone or
something
14. to credit kredit vermək,etmad göstərmək praise or approval because you
are responsible for something
good that has happened
15. to obtain almaq, əldə etmək get, acquire, or secure
(something)
16. to cancel ləğv etmək, ixtisarlamaq to decide that sth that has been
arranged will not now take place
17. option seçim a thing that is or may be chosen
18. arise ortaya çıxmaq, törənmək, to come into existence or begin
yaranmaq, irəli gəlmək to be noticed; happen
19. remitting bağışlamaq, bəarat göndərmək, to cancel or free somebody from
a debt, duty, punishment, etc.
20. revocable geri alınabilir capable of being revoked or
cancelled
21. cash flow nağd pul axını,gəliri the total amount of money being
transferred into and out of a
business, especially as affecting
liquidity
22. on behalf of adından,tərəfindən as a representative of
23. to deposit beh vermək, banka pul qoymaq to put (money) in a bank
account
24. merchandise mal,mallar, goods to be bought and sold
25. shipyard liman,tərsanə a place where ships are built
and repaired
26. invoice faktura, hesab a list of goods sent or services
provided, with a statement of the
sum due for these; a bill
27. to itemize izahını vermək, sıralamaq to produce a detailed list of
things
28. to arrange təşkil etmək, qaydaya salmaq to plan, prepare for, or organize
something
29. to embark gəmiyə yükləmək, gəmiyə go on board a ship or aircraft
oturmaq
30. irrevocable qaytarılmaz, qaçılmaz not able to be changed,
reversed, or recovered; final

1. What terms of payment are commonly used in international trade?
2. What is the most attractive payment method for buyers?
3. What is the least secure method of trading for the exporter?
4. What is Cash-in-advance payment method utilized for?
5. What are the most frequently employed cash-in-advance options available to
exporters?
6. What is Open Account payment method used for?
7. What does the term “Letter of Credit” imply?
8. What does the term “revocable Letter of Credit” imply?
9. What does the term “irrevocable Letter of Credit” imply?
10. What Documentary Collection payment method used for?
11. What does Documentary Collection involve?
12. What level of protection does Documentary Collection provide?
1. With cash-in-advance payment terms, the exporter can eliminate credit risk,
since payment is received before the ownership of the goods is transferred.
2. Wire transfers and credit cards are the most frequently employed
Documentary Collection options available to exporters.
3. Open Account method of payment creates many risk factors for the
importers. 4. Documentary Collection method of payment is rather inexpensive.
5. Letter of Credit is the most advantageous choice for the importer in terms of
cash flow and cost.
6. Letter of Credit is the least secure method of trading for the exporter, but the
most attractive for buyers.
7. Open Account trading should only be considered, when an exporter is
sufficiently confident that payment will be received.
8. The Letter of Credit is a document issued by a financial institution.
9. A LC is useful when reliable credit information about a foreign buyer is
difficult to obtain, but you are satisfied with the creditworthiness of your
buyer’s foreign bank.
10. A LC protects the seller.
11. An irrevocable LC can be cancelled or changed without the seller’s
agreement.
12. A revocable LC can be cancelled or changed with the agreement of all
parties of the contract.
13. Open Account is an important bank payment method, when the sale
transaction is performed by the bank through an exchange of documents.
14. Documentary Collection involves using a draft, which requires the
importer to pay the face amount either at sight (document against payment) or
on a specified date (document against acceptance).
15. Documentary Collections do not provide the same level of protection as the
Letter of Credit.
16. Documentary Collections facilitate import-export operations.
Exercise 1
Translate the following words and word combinations.
Domestic trade, wholesaler, retailer, terms of payment, Cash with Order, Cash
on Delivery, transaction, Letter of Credit, advising bank, remitting bank,
revocable Letter of Credit, irrevocable Letter of Credit, Documentary
Collection, Open Account, Cash-inAdvance, draft.
Complete the passage below with the words from the box below.
Credit, types, beneficiary, importers, documents, payment ,goods, buyer
A Letter of Credit guarantees 1) _________ of a specified sum in a specified

currency. The seller must meet precisely-defined conditions and submit the
prescribed 2) _________ within a fixed timeframe. These documents almost
always include a clean bill of lading, commercial invoice, and certificate of
origin. To establish a letter of credit in favour of the seller or exporter called the
3) _________, the buyer either pays the specified sum (plus service charges). A
letter of credit substitutes the creditworthiness of a bank for the
creditworthiness of the 4) ________. The international banking system acts as
an intermediary between exporters and 5) _________. However, the banking
system does not take on any responsibility for the quality of 6) ________,
genuineness of documents, or any other provision in the contract of sale. Unlike
a bill of exchange, a letter of 7) _________ is a nonnegotiable instrument but
may be transferable. Although letters of credit come in numerous 8)
_________, the two most basic ones are revocable letter of credit and
irrevocable letter of credit (confirmed irrevocable letter of credit or not-
confirmed irrevocable letter of credit).
Read and translate the text below.

A bank promises to pay on behalf of a customer, but where does the money
come from? The bank will issue a Letter of Credit if they know the buyer will
pay. Some buyers have to deposit (or already have) enough money to cover the
Letter of Credit and some customers use a line of credit with the bank. Sellers
must trust that the bank issuing the letter of credit is legitimate. A seller only
gets paid after performing specific actions that the buyer and seller agree to.
For example, the seller may have to deliver merchandise to a shipyard in order
to satisfy requirements for the Letter of Credit. Once the merchandise is
delivered, the seller receives documentation proving that he made delivery. The
Letter of Credit now must be paid even if something happens to the
merchandise. If a crane falls on the merchandise or the ship sinks, it’s not the
seller’s problem. To pay on a Letter of Credit, banks simply review documents
proving that a seller performed his required actions. They do not worry about
the quality of goods or other items that may be important to the buyer and
seller. Letters of credit make it possible to do business worldwide. They are
important and helpful tools.
Exercise 5
Fill in the gaps in the text with the words from the box below.
goods ,vessel, shipper, shipment, locations, document
A Bill of Lading is a type of document that is used to acknowledge the receipt

of a 1) _________ of goods. A transportation company or carrier typically
issues this document to a 2) _________. In addition to acknowledging the
receipt of goods, the document indicates the particular 3) _________, on which
the goods have been placed, their intended destination and the terms for
transporting the shipment to its final destination. It also includes a description
of the 4) _________ that are being shipped, their weight and the other shipping
details. Inland, ocean, through and air waybill are the names given to bills of
lading. An inland bill of lading is a 5) _________ that establishes an agreement
between a shipper and a transportation company for the transportation of goods
over land. Ocean bills of lading specify the terms between exporters and
international carriers for the shipment of goods to overseas 6) __________.
Complete the passage below with the correct form of a suitable verb from
the box.
have, require, serve, establish, cover, provide
An Air Waybill is a Bill of Lading that 1) _____________ the terms of flights

for the transportation of goods. This document also 2) _______________ as a
receipt for the shipper proving the carrier’s acceptance of the shipper’s goods
and the agreement to carry those goods to a specific airport. An Air Waybill is
a type of through bill of lading because it might 3) _______________ both
international and domestic transportation of goods. By contrast, many ocean
shipments 4) ______________ both inland and ocean bills of lading. Inland
bills of lading are necessary for the domestic transportation of goods. Ocean
bills of lading are necessary for the overseas carriage of goods. Inland and
ocean bills of lading might be negotiable or non-negotiable. If the bill of lading
is nonnegotiable, the transportation carrier is required to 5) ____________
delivery only to the consignee named in the document. If the Bill of Lading is
negotiable, the person who has ownership of the Bill of Lading 6)
_____________ the right of ownership of the goods and the right to re-route the
shipment. This is sometimes called a bearer Bill of Lading.
tariff, goods, product, duty, trade, credit, exporter, country
The Certificate of Origin verifies the1) _________ , in which the goods were
manufactured. Some nations restrict imports from certain countries; many
countries limit the quantity of 2) _________ that are allowed to be imported.
Millions of COs are issued every year facilitating 3) ________ around the
world. Almost every country in the world considers the origin of imported
goods when determining the 4) ________ that will be applied to the goods or if
the goods may be legally imported at all. In addition, COs may be needed to
comply with letters of 5) __________, foreign customs requirements or a
buyer’s request. Determining the origin of a product is important because it is
essential for applying import tariffs. The main CO is the ‘non-preferential
type,’ which certifies that the country a particular 6) _________ originates from
does not qualify for any preferential treatment. A ‘preferential’ certificate
enables products to benefit from 7) _________ reductions, when they are
exported to countries that extend these privileges. The Certificate of Origin is
completed by the 8) __________ or its agent and certified by a chamber of
commerce, trade organization, and/or consular office.
- C2C (Consumer-to-Consumer)
Glossary
16. enterprise müəssisə a company or business
17. limited liability company məhdud məsuliyyətli cəmiyyət a business structure in the
(L.L.C) (MMC) U.S. that protects its
owners from personal
responsibility for its debts
or liabilities
18. contribution əməkdaşlıq,töhfə a gift or payment that is

made to a person or an
organization in order to
help pay for something
SYNONYM donation
19. enable imkan vermək give (someone) the
authority or means to do
something; make it possible
for
20. entire bütöv,tam with no part left out; whole
21. vital həyati,mühüm absolutely necessary;
essential
22. large -scale industry iri sənaye industries that are having
huge infrastructure, raw
material, high manpower
requirements and large
capital requirements
23. fortune bəxt, tale chance or luck as an
arbitrary force affecting
human affairs
24. suffice kifayət etmək,catışmaq be enough or adequate
25. merger birləşmə a combination of two
things, especially
companies, into one
26. goodwill şirkətin prestiji, riendly or helpful feelings
xeyirxahlıq,rəğbət toward other people or
countries
27. subsidiary filial,yardımçı, köməkçi a company that is part of a
larger and more important
company
28. ownership mülkiyyət, sahiblik, the act, state, or right of
mülkiyyətçilik possessing something
29. to reap bəhrəsini görmək,biçmək to get (something, such as
a reward) as a result of
something that you have
done; to cut and collect (a
plant, crop, etc.)
30. stock fond, aksiya, inventar a share in the ownership of
a company
16. bankruptcy iflas, müflislik, bankrotluq a legal proceeding
involving a person or
business that is unable to
repay their outstanding
debts

1)What is meant by the term "company"?
2) What are the usual forms of business enterprises?
3) What is meant by the term "individual proprietorship"?
4) What is meant by the term "partnership"?
5) What is the third form of business enterprises?
6) What does the term "limited liability" mean?
Translate
8. Bankruptcy is the state of being unable to pay your debts.

9. If you have a controlling interest in a company, you own enough shares to
be able to make decisions about what happens to the company.
10.Holding company controls the composition of the board of directors of the
subsidiary company.
11.Entrepreneur is someone who starts a company, arranges business deals,
and takes risks in order to make a profit.
12.The quality of entrepreneurship is seen by many economists as an
important explanation of differences in the rate of technical progress
between countries. Someone creates a job for you, gets orders, collects
money from the clients and takes on the responsibility for making both
ends meet.
13.Bankrupt is someone who has officially said that they cannot pay their
debts. Holding company is a company that holds a control packet of shares
in other companies.
14.The GNP is the total value of all the goods and services produced in a
country, including income from abroad.
Fill in the gaps with the words from the box below.
responsible,investment,owner,operation,actively,profits,liability,goods,
manages, partner
l) Company makes or sells … or services in order to get profit.

2) Proprietor is an … of a business.
3) Individual proprietor keeps the entire … as his rented property.
4) Individual proprietor … his personal property on a from time to time basis.
5) Partnership is a business owned by two or more partners who share the …
and losses.
6) Partners share the profits and losses according to their … or contribution.
7) Whenever a … leaves or a new partner is added, the firm must be
reconstituted as a new partnership.
8) Sleeping (silent) partner is someone who owns part of a business but is not …
involved in operating it.
9) Limited … company is a company whose owners only have to pay a limited
amount if the company gets into debt.
10) Limited liability is the legal position of being … for paying only a limited
amount of debt if something bad happens to yourself or your company.
ACCOUNTING
Accounting and its financial statements. Accounting is the process of
recording, summarizing, analyzing, and reporting financial transactions of a
business or organization. It involves the systematic and detailed recording of
financial activities, such as income, expenses, assets, and liabilities, to provide
accurate and comprehensive financial information for decision-making, financial
management, and regulatory compliance. This information may be used in a
number of ways: by the organization's managers to help them plan and control
the organization's operations; by owners and legislative bodies to help them
appraise the organization's performance and make decisions as to its future; by
owners, lenders, suppliers, employees, and others to help them decide how much
time or money to devote to the organization; by governmental bodies to
determine how much tax the organization must pay; and by customers to
determine the price to be paid.
A financial statement is a formal record of the financial activities and position

of a business, person, or other entity. It typically includes an income statement,
balance sheet, and cash flow statement, providing a comprehensive overview of
the entity's financial performance and position over a specific period of time.
The income statement shows revenues and expenses, the balance sheet reflects
assets, liabilities, and equity, while the cash flow statement outlines the inflow
and outflow of cash. These statements are crucial for assessing the financial
health and making informed decisions about the entity.Accountant is a
professionally qualified person who is able to record, keep, check, and prepare
financial statements.
Glossary
1. accounting mühasibat işi the work or process of keeping financial

records
2. legislative body qanunverici orqan A political institution which holds the
legislative power in a state, and often
controls the executive power.
3. appraise qiymətləndirmək assess the value or quality of
4. performance işin göstəricisi the action or process of performing a
task or function
5. financial statement məaliyyə hesabatı Financial statements are written records
that convey the business activities and
the financial performance of a company
6. balance sheet balans hesabatı financial statement that reports a
company's assets, liabilities, and
shareholder equity at a specific point in
time
7. to devote həsr etmək, to give all of something, especially your
ayırmaq time, effort, or love, or yourself, to
something you believe in or to a person
8. intercom iç telefon və ya an electrical device allowing one-way or
selektor bağlantısı two-way communication
9. in exchange for müqabilində for something else that you receive
10. equation tənlik,bərabərlik a statement showing that two amounts or
values are equal,
11. inevitable qaçılmaz, labüd, sure to happen; certain
zəruri
12. current assets cari aktivlər cash and other assets that are expected
to be converted to cash within a year.
13. fixed assets əsas sərmayə Long-term tangible assets that are used
in the operations of a business
14. intangible assets qeyri-maddi aktivlər an asset that is not physical in
nature:goodwill,trademark,intellectual
property etc.
15. real estate daşınmaz əmlak the investor makes money by buying
property or buildings and renting or
selling them for a profit
16. trade mark ticarət nişanı sign used in trade to identify products
17. income statement gəlir hesabatı a financial statement that shows you the
company's income and expenditures
18. net income/net gain xalis,təmiz gəlir amount of accounting profit a company
has left over after paying off all its
expenses.
19. sales revenue satışdan əldə the revenue that comes from sales of
olunan gəlir product and services
20. net loss xalis zərər the excess of expenses over revenues
21. interest revenues faiz gəlirləri how much interest a company earned
during a specific time period
22. interest expense faiz xərcləri the cost of borrowing money during a
specified period of time

l) What is meant by the term "accounting"?
2) What role does accounting play in people's lives and why does it matter?
3) What does accounting provide through its information?
4) Does the text make reference to three financial statements?
5) What does the term "accountant" mean?
pay,sheet,tax,common ,provides,analysis, qualified ,managers income unlawful
devote,illegal, statements, measured
1)Accounting is the systematic … of illegal ways of paying less tax.

2) The organization's … to plan and control the organization's operations use
intercom.
3) Owners to appraise the organization's performance use … tapping.
4) Lenders to decide how much time or money to … to the organization use the
newspapers that print shocking stories about people's personal lives.
5) Governmental bodies to determine how much … the organization must pay use
tax legislation.
6) Customers to determine the price to be paid use their … sense.
7) Accounting … its information through Internet.
8) Accounting provides its information through the preparation of various kinds
of… .
9) Balance … is a statement of how much money a business has earned and how
much money it has paid for goods and services.
10) Cash flow is the movement of money coming into a business as … and going
out as wages, materials etc.
1l) Income is a gain or recurrent benefit usually … in money that derives from
capital or labour.
12) It's only reasonable that people on a high income should … more tax.
13) Accountant is a professionally … person who is able to find legal ways of
paying less tax.
14) Accountant is someone who does his best to conceal … income.
Translate
The company uses its assets to produce goods and services. The company's
success depends on whether it is wise or lucky in the assets it chooses to hold and
in the ways it uses these assets to produce goods and services. The company's
success is measured by the amount of profit it earns. Net income is the
accountant's term for the amount of profit that is reported for a particular time
period. The company's income statement for a period of time shows how the net
income for that period was derived. The first line in the company's income
statement shows the company's net sales revenues for the period: the assets
obtained from customers in exchange for the goods and services. The second line
summarizes the company's revenues from other sources. The income statement
next shows the expenses of the period: the assets that were consumed while the
revenues were being created. The expenses are usually broken down into several
categories (cost of merchandise sold, salaries of employees, depreciation, and
etc.) indicating what the assets were used for. The income statement shows only a
single number, the net gain on the sale. If net income is negative, it is referred to
as a net loss.
ADVERTISING
Advertising and its history. To advertise means to tell people publicly about a
product or service in order to persuade them to buy it. Advertising — the
techniques and practices used to bring products, services or opinions to public
notice for the purpose of persuading the public to respond in a certain way toward
what is advertised. Most advertising involves promoting a good that is for sale, but
similar methods are used to encourage people to drive safely. to support various
charities, or to vote for political candidates. In many countries advertising is the
most important source of income for the media through which it is conducted. The
media are all the organizations, such as television, radio, and the newspapers, that
provide information for the public. In the ancient and medieval world such
advertising as existed was conducted by word of mouth. The first step toward
modern advertising came with the development of printing in the 15th and 16th
centuries. In the 17th century weekly newspapers in London began to carry
advertisements, and by the 18th century such advertising was flourishing. The
great expansion of business in the 19th century was accompanied by the growth of
an advertising industry; it was that century, primarily in the United States, that saw
the establishment of advertising agencies. Advertising agency is a company that
designs and makes advertisements for other companies.
Glossary
1. to persuade inandırmaq to make someone agree
to do something by
giving them good
reasons for doing it
2. to respond cavab vermək say something in reply
3. charities xeyriyyə the act of giving money,
food, or other kinds of
help to people who are
poor, sick, etc.;
4. by word of mouth şifahi through the verbal
sharing of information
5. flourish inkişaf to achieve success :
prosper
6. primarily əsasən,əvvəlcə for the most part; mainly
7. to execute icra etmək to do or perform
something planned
8. accompany müşayiət to go or be together
with; attend
9. medium vasitə, mühit way of communicating
information and ideas;
10. circulation dövriyyə, tiraj, the passing or
spreading of something
from one person or
place to another
11. pervasive yayılan existing in or spreading
through every part of
something
12. spot yer particular place where
someone or something
is;
13. composition tərkib, tərtib the act of putting
together or making up
by combining parts or
ingredients
14. to charge yükləmək,doldurmaq to load or fill to capacity
15. to direct yönəltmək, control the operations
istiqamətləndirmək of; manage or govern
16. poster afişa, plakat a large notice or picture
that you stick on a wall
or board, often in order
to advertise something
17. intrusive bezdirici, müdaxilə edən interrupting a peaceful
situation; becoming
involved even though
not welcome
18. to target hədəfləmək select as an object of
attention or attack
19. canny hiyləgər,ehtiyyatlı someone shrewd,
clever or careful with
money
20. to schedule tərtib etmək,cədvələ arrange or plan (an
salmaq event) to take place at a
particular time
21. thing of nought əhəmiyyətsiz a thing or person of no
worth or value;
22. reliance inam,etibar dependence on or trust
in someone or
something
23. convey çatdırmaq, ifadə etmək, transport or carry to a
place: to make ideas,
feelings, etc. known to
somebody
24. contracting parties razılığa gələn tərəflər a person, company, etc,
entering into a legal
contract
25. forceless gücsüz lacking force; feeble

1)What is meant by the term "advertising"?
2) What does most advertising involve?
3) Where is advertising used?
4) What is the most important source of income for the media?
5) How was advertising conducted in the ancient and medieval world?
6) What was the first step toward modern advertising?
7) Who began to carry advertisements in the 17th century in London?
8) What accompanied the great expansion of business in the 19th century?
9) In which century did the establishment of advertising agencies take place?
Advertising and its media. There are some principal media for advertising.
Newspapers can offer advertisers large circulations (circulation — the average
number of copies of a newspaper or magazine that are usually sold each day.
week, month etc) and the opportunity to alter their advertisements frequently and
regularly. Magazines may be of general interest or they may be aimed at specific
audiences (such as people interested in computers or literature) and offer the
manufacturers of products of particular interest to such people the chance to make
contact with their most likely customers. The most pervasive (existing or
spreading everywhere) media are television and radio. Advertisers can buy short
"spots" of time to promote their products or services. Advertising spots are
broadcast between or during regular programs. For advertisers the most important
facts about a given television or radio program are the size and composition of its
audience. The size of the audience determines the amount of money the
broadcaster can charge an advertiser, and the composition of the audience
determines the advertiser's choice as to when a certain message, directed at a
certain segment of the public, should be run. The other advertising media include
direct mail, outdoor billboards, posters, and etc. Advertising is on some occasions
too intrusive (affecting someone's private life or interrupting them in an unwanted
and annoying way).
There are various types of advertising, including:
1. Print Advertising: Ads in newspapers, magazines, brochures, etc.
2. Broadcast Advertising: Commercials on TV or radio.
3. Digital Advertising: Online ads, including display ads, social media ads, and
search engine marketing.
4. Outdoor Advertising: Billboards, transit ads, and posters.
5. Direct Mail Advertising: Flyers, catalogs, and postcards sent directly to

consumers.
6. Product Placement: Integrating products into movies, TV shows, or other

content.
7. Native Advertising: Ad content that matches the platform's natural form and
function.
8. Social Media Advertising: Promoting products or services on platforms like

Facebook, Instagram, and Twitter.
9. Influencer Marketing: Collaborating with influencers to promote products or

services.
10. Guerrilla Marketing: Unconventional, creative strategies to engage

consumers in unexpected ways.
Each type has its own advantages and is chosen based on the target audience and
campaign goals.

1) What can newspapers offer advertisers?
2) At whom may magazines be aimed?
3) What may magazines offer manufacturers?
4) What are the most pervasive media?
5) What can advertisers buy and why?
6) When are advertising spots broadcast?
7) What facts are most important for advertisers?
8) What does the size of the audience determine?
9) What does the composition of the audience determine?
10) What do other advertising media include?
11) Do you find advertising too intrusive?
effectiveness,fool, advertising, deceived, survival, demand, privately,

consumers, buys, controlled, whispering, likely, permanent.
1)There is no dispute over the power of advertising to inform of what products are
available.
2) Free market is a market in which prices are not … or limited in any way.
3) Effective advertising is essential to a company's … .
4) Consumer is someone who … and uses products and services.
5) As soon as consumers know about a company's product they are … to buy it.
6) A career in … is an easy one.
7) Good advertisers are in good … .
8) Advertising agencies serve to organize … campaigns.
9) Whispering campaign is an attack on someone that is made by … spreading
criticism about them.
10) The … of advertising campaigns is based on research into consumer private
life.
1l) Advertisers have to be clever, careful, and not easily … especially in business
or politics.
12) Advertisers are given a … budget.
13) Advertisers play the … with consumers.
Translate
1)Advertising enables goods to be mass marketed. 3) Advertising brings prices

up. 4) The cost of major advertising campaigns is such that few firms can have
enough money to pay for them. 5) Advertising helps only very large companies to
have power and control over the market. 6) Smaller firms are not successful in
comparison with larger ones at a national level. 7) Advertising enables smaller
firms to flourish at the local level. 8) Advertisers exercise an unreasonable
influence over the editorial stance of a newspaper. 9) Advertisers exercise an
excessive influence over the subject of a television show. 10) The advertiser's
influence is neutralized by the advertiser's reliance on the media to convey his
messages. 11) The media are completely subject to the advertiser's ill will.
INSURANCE
Insurance, the insurer and the insured. To insure means to buy insurance to
protect yourself against something bad happening to you, your family or your
possessions. The insurer is a person or company that provides insurance. The
insured is the person or people who are insured. Insurance is a contract in writing
between an insurance company and the insured, whereby the insurance company
will pay the insured a stated sum of money on the happening of a stated event. In
return for a specified consideration, the insurer undertakes to pay the insured some
specified amount in the event that the insured suffers loss through the occurrence
of a contingent event covered by the insurance contract (insurance policy). While
the destruction of an automobile in a traffic accident imposes a heavy financial
loss on an individual, for example, one such loss is of relatively small
consequence to an insurer who is collecting sufficient premiums (insurance
premium is the money that you pay regularly to an insurance company) on a large
number of automobiles.
The insured and an insurable risk. From the viewpoint of the insured person, an
insurable risk is one for which the probability of loss is not so high as to require
excessive premiums (premium — the cost of insurance, especially the amount to
pay each year). Insurable risks include losses to property resulting from fire,
explosion, windstorm, burglary, etc.; losses of life or health; and the legal liability
arising out of use of automobiles, occupancy of buildings. employment, or
manufacture. Uninsurable risks include losses resulting from price changes and
competitive conditions in the market. Political risks such as war, cabinet crisis,
monetary crisis or deepening economic crisis are usually not insurable by private
insurance companies but may be insurable by governmental institutions. Very
often insurance contracts can be drawn in such a way that an "uninsurable risk"
can be turned into an "insurable" one.
Kinds of insurance. Life insurance is a contract in writing whereby the insured

person will pay the insurance company stated premiums, so that he / she will
receive a certain sum of money with or without bonuses on reaching a certain age
or at death, whichever is the sooner. Property insurance is used to insure against
loss from accidental destruction of property. Marine insurance contracts are
written to cover (l) the vessel, (2) the cargo, (3) the freight revenue to be received
by the ship owner, and (4) legal liability for negligence of the shipper or the
carrier. There are at least four major types of liability insurance contracts: (l)
liability arising out of the use of automobiles, (2) liability arising out of the
conduct of a business, (3) liability arising from professional negligence (applicable
to doctors, lawyers, etc.), and (4) personal liability. Theft insurance covers all acts
of stealing. Aviation insurance covers physical damage to the aircraft and legal
liability arising out of its ownership and operation. Workers' compensation
insurance, sometimes called industrial injury insurance, compensates workers for
losses suffered as a result of work-related injuries. Industrial injury insurance is a
contract whereby payments are made regardless of negligence. Credit insurance
covers the risk of bad debts from insolvency (that is. the inability of a person or
company to pay their debts as they fall due), death, and disability. Also, credit
insurance covers the risk of loss of savings from bank failure and the risk of loss
from export credit because of war or other political causes.
Glossary
1. insurer sığortaçı a person or company that insures someon
e or something
2. insured sığorta olunan the person, group of people,
or organization that is insured in
a particular agreement
3. suffer losses itkilərə məruz to lose something (often money), especially
qalmaq as the result of someone else's actions
4. occurence hadisə,hal baş something that happens or exists
verməsi
5. contingent fövqəladə hal happening by chance or unforeseen causes
6. insurance premium sığorta haqqı the price you pay to buy an insurance policy
7. insurance policy sığorta a legal contract between the insurance
müqaviləsi company (the insurer) and the person(s),
business, or entity being insured (the
insured).
8. insurance adjuster sığorta a person whose job is to check facts and
tənzimləyicisi information relating to an insurance claim
and to decide how much money the
insurance company should pay
9. financial hardship maliyyə çətinliyi difficulty paying your bills and repayments
on your loans and debts
10. occupancy əmlak someone's use of a room or building for
the purposes of living or working:
11. to draw tərtib etmək to design or describe in
detail : FORMULATE
12. negligence səhlənkarlıq the failure to give somebody/something
enough care or attention
13. liability insurance sığorta an insurance product that provides
məsuliyyəti protection against claims resulting from
injuries and damage to other people or
property.
14. physical damage fiziki ziyan,zərər To damage an object means to break it,
spoil it physically, or stop it from
working.
15. insolvency müflisləşmə the state of not having enough money to
pay what you owe; an occasion when this
happens
16. disability əlillik a physical or mental condition that makes it
difficult for somebody to do some things that
most other people can do
17. to specify dəqiqləşdirmək o state something, especially by giving an
exact measurement, time, exact
instructions, etc.
18. to constitute tərtib etmək to form or make something:
19. numerous çoxsaylı,çoxlu existing in large
numbersSYNONYM many
20. to eliminate aradan to remove or get rid of something
qaldırmaq

1. What does it mean to insure, and why do people buy insurance?

2. Who is the insurer, and what is their role in the insurance process?
3. Define the term "insured" and explain their significance in insurance contracts.
4. How is insurance described as a contract between the insurance company and
the insured?
5. What is the purpose of insurance premiums, and how are they related to the
insurer's ability to cover losses?
6. Provide examples of insurable risks for an individual and explain why certain
risks are considered uninsurable.
7. Differentiate between life insurance and property insurance, highlighting their
key features.
8. Enumerate the major types of liability insurance contracts and briefly describe
each.
9. Explain the coverage provided by theft insurance and aviation insurance.
10. What risks does credit insurance cover, and how does it protect against
potential losses?
2.Fill in the gaps in the text with the words from the box below.
property,covers, accidents, violent, adjuster, damage, lending, unreasonable,

financial, dangerous
1) Risk is a person or business judged according to the danger involved in giving

them insurance or … them money.
2) Risk is the possibility that something bad, unpleasant, or … may happen.
3) Risk management is a system to prevent or reduce dangerous … or mistakes.
4) Loss … is someone who is employed by an insurance company to decide how
much should be paid to people who make claims on their insurance.
5) Insurable risks include losses to … resulting from debauchery.
6) Insurable risks include … losses and fraud losses.
7) Insurable risks include legal responsibility for paying money that is owed, or
for … or injury.
8) Uninsurable risks include losses resulting from a … and sudden event or
change, such as a serious flood or earthquake.
9) Political risks include losses resulting from opinions, ideas, and actions that
most people think are … and unacceptable.
10)Theft insurance … all acts of stealing.
3.Translate
Life insurance is a type of insurance that someone makes regular payments into so
that when they die their family will receive money. 2) Bonus is money added to
someone's wages, especially as a reward for good work. 3) Property insurance is
used to insure against loss from burglary. 4) Marine insurance covers personal
liability for negligence of the shipper. 5) Liability insurance covers liability arising
out of the use of motorcycles and bicycles. 6) Theft insurance covers all acts of
cheating. 7) Aviation insurance covers aviation accidents. 8) Industrial injury
insurance compensates workers for losses suffered as a result of lateness and non-
attendance. 9) Credit insurance doesn't cover the risk of bad debts from disability.
1. Read the provided text on marketing and its functions.
MARKETING
Marketing and its functions. Marketing is the ability to assess, by whatever
means, the needs of the consumer, then using the available resources, design,
produce, advertise, and deliver the goods at the right time and at the right place
and price to the customer. Marketing's principal function is to promote and
facilitate exchange. Through marketing, individuals and groups obtain what they
need and want by exchanging products and services with other parties. Such a
process can occur only when there are at least two parties. each of whom has
something to offer. In addition, exchange cannot occur unless the parties are able
to communicate about what they offer and to deliver what they offer.
The marketing process is divided into a strategic and a tactical phase. The
strategic phase has three components — segmentation, targeting, and positioning
(STP). The organization must distinguish among different groups of customers in
the market (segmentation) and choose which groups it can serve effectively
(targeting). A key step in marketing strategy, known as positioning, involves
creating and communicating a message that clearly positions the company or its
brand in relation to competitors. Thus, Volvo (Sweden) has positioned its
automobile as the "safest," and Daimler-Benz (Germany), manufacturer of
Mercedes-Benz vehicles, has positioned its car as the best "engineered." Some
products may be positioned as "outstanding" in two or more ways. However,
claiming superiority along several dimensions may hurt a company's credibility
because consumers will not believe that some company can do better than others
in all dimensions.
Marketing, its customers, distributors, and facilitators. The elements that play
a role in the marketing process can be divided into three groups: customers,
distributors, and facilitators. In order to understand customers, certain questions
must be answered: Who constitutes the market segment? What do they buy and
why? And how, when, and where do they buy? Thus, a remotely situated
wholesale store may use discounted prices to lure customers away from the more
conveniently located shops. Customers can be divided into two categories:
consumer customers, who purchase goods and services for use by themselves and
by those with whom they live; and business customers, who purchase goods and
services for use by the organization for which they work. Four major types of
factors influence consumer buying behaviour: cultural, social, personal, and
psychological. Many producers do not sell products or services directly to
consumers and instead use marketing intermediaries, such as middlemen
(wholesalers, retailers, agents, and brokers) and distributors. Distributor is a
company or person that makes wholesale purchases from the producers of finished
products to become available for people to buy. There are four major types of
marketing facilitators: advertising agencies, market research firms, transportation
firms, and warehousing firms.
Glossary
1. assess qiymətləndirmək to calculate the amount or
value of something
2. coercive məcburi using force or the threat of
force
3. mode üsul, vasitə a particular way of doing
something; a particular
type of something
4. begging dilənçilik,yalvarış, to ask for as a charity
5. confine məhdudlaşdırmaq to keep
somebody/something
inside the limits of a
particular activity, subject,
area, etc.
6. furthermore bundan başqa, əlavə in addition to what has just
been stated
7. to engage məşğul olmaq,cəlb etmək to succeed in attracting
and keeping somebody’s
attention and interest
8. superiority üstünlük the state or quality of
being better, more
powerful, greater, etc. than
others
9. dimension ölçü measurement in space,
for example how high,
wide or long something is
10. credibility etibarlılıq, etimadlıq the quality that
somebody/something has
that makes people believe
or trust them
11. to skip keçmək to pass by or leave out
12. outlet ticarət obyekti a shop or an organization
that sells goods made by a
particular company or of a
particular type
13. lure cazibə appeal, attraction
14. expertise təcrübə, bilik expert knowledge or skill
in a particular subject,
activity or job
15. efficient səmərəli, təsirli, işlək doing something in a
good, careful and
complete way with no
waste of time, money or
energy
16. sole təkcə, yeganə only; single
17. salesmanship satıcılıq skill in persuading people
to buy things
18. feasible mümkün, mümkün olan that is possible and likely
to be achieved
19. quarterly rüblük produced or happening
every three months
20. to fluctuate dəyişmək,tərəddüd etmək to change frequently in
size, amount, quality, etc.,
especially from one
extreme to
anotherSYNONYM vary
1. How is marketing defined, and what is its primary goal in relation to
consumers?
2. List the key functions involved in marketing, from assessment to product
delivery.
3. What is the fundamental role of marketing in promoting and facilitating
exchange between parties?
4. Describe the conditions necessary for an exchange to occur according to the
text.
5. What are the two main phases of the marketing process, and what are the
components of the strategic phase?
6. Explain the significance of segmentation, targeting, and positioning in
marketing strategy.
7. Provide examples of companies mentioned in the text and how they have
strategically positioned their products.
8. How does claiming superiority along several dimensions impact a company's
credibility in marketing?
9. Categorize the elements that play a role in the marketing process into three
groups, as mentioned in the text.
10. What questions need to be answered to understand customers, and why is this
information crucial in marketing?
11. Differentiate between consumer customers and business customers, and
explain their purchasing behaviors.
12. Enumerate the major types of marketing facilitators and briefly describe their
roles in the marketing process.
3.Fill in the gaps in the text with the words from the box below.
become, compulsory, strategic, facilitate, activities, individuals, desired,
advertising, exchange, international
l) Marketing is the sum of … involved in directing the flow of goods and services
from producers to consumers.
2) Marketing is the activity of trying to sell a company's products by … , using
attractive packages etc.
3) Marketing helps … to develop and be successful.
4) Marketing is to … exchange.
5) Through marketing, …. obtain needless and unwanted products.
6) Marketing is a … process.
7) Through marketing, consumers obtain … goods.
8) Museums do not take part in some forms of … marketing.
9) Hospitals … involved in some forms of marketing.
10) The marketing process is divided into a …. and a tactical phase.
4.Translate
1) Facilitators play a leading role in the marketing process. 2) Consumer
customers purchase goods and services for use by the organization for which they
work. 3) Business customers purchase goods and services for use by themselves
and by those with whom they live. 4) Cultural and social factors influence
consumer buying behaviour. 5) Personal and psychological factors don't influence
consumer buying behaviour. 6) Many producers sell products or services directly
to consumers. 7) Many producers use marketing intermediaries to sell products to
consumers. 8) Wholesaler is someone who sells goods wholesale. 9) Retailer is
someone who sells things in a shop. 10) Distributor is to establish active
contractual relations with wholesalers. I l) Marketing facilitators are to handle
marketing functions.
MODES OF TRANSPORTATION IN LOGISTICS
Logistics refers to the transportation of merchandise – raw materials or finished

products – from the point of production to the point of final consumption.
Different modes of transportation – road, rail, water and air – can be used for the
effective management of merchandise. Every mode of transportation requires a
different set of infrastructure, type of vehicles, technological solutions and
regulations. All modes of transportation have different costs, service and transit
times.
There are the following types of cargo (freight): a) general cargo (goods packed in
boxes); b) bulk cargo (large quantities of cargo, e.g. sand); c) bulky cargo (large
individual items, e.g. cars). A consigner (someone who ships goods) chooses how
to send the consignment (these goods) to the consignee (someone who receives
these goods) by water, road, railway, air.
1) Road
Road transportation is one of the most basic and historical means of
transportation. Road transport is the principal means of transport in the European
Union for both passengers and goods. Today, the European Union has almost one
vehicle for every two residents, and road freight traffic represents more than two
thirds of the total tonnage. There are many different types of vehicles, although
trucks are typically used for carrying or delivering freight. Road transportation
offers a relatively lower cost compared to other logistic forms and has a widely
recognizable and flexible route. However, transportation by road takes a relatively
longer period of time than other means of transportation. Besides, it offers a
limited capacity. Road transport is most often used for comparatively inexpensive,
non-perishable items or for shorter distances.
2) Rail
Rail transport is a means of conveyance of passengers and goods by way of
wheeled vehicles running on rails. It is also commonly referred to as train
transport. Rail transport uses freight trains for the delivery of merchandise. Freight
trains are usually powered by diesel, electricity and steam. A freight train hauls
cargo using freight cars specialized for the type of goods. Freight trains are very
efficient, with economy of scale and high energy efficiency. However, their use
can be reduced by lack of flexibility, if there is need of trans-shipment at both
ends of the trip due to lack of tracks to the points of pick-up and delivery.
Container trains have become the dominant type in the US for non-bulk haulage.
Containers can easily be trans-shipped to other modes, such as ships and trucks,
using cranes. Passenger trains are part of public transport; they can perform a
variety of functions including long distance intercity travel and local urban transit
services.
Glossary
1. infrastructure infrastruktur the basic systems and services
that are necessary for a country
or an organization to run
smoothly, for example buildings,
transport and water and power
supplies
2. vehicle nəqliyyat vasitəsi a thing that is used for
transporting people or goods
from one place to another, such
as a car or lorry
3. consigner yükgöndərən one who gives, transfers, or
delivers into the hands or control
of another
4. consignee yükalan one to whom something
is consigned or shipped
5. consignement yük göndərmə an amount of goods that
is sent somewhere
6. route marşrut a way that you follow to get from
one place to another
7. conveyance nəql, daşıma the process of taking
somebody/something from one
place to another
8. crane qaldırıcı kran, yükqaldıran a tall machine with a long arm,
kran used to lift and move building
materials and other heavy
objects
9. trans-shipment yükün köçürülməsi the activity of moving goods fro
m one ship to another
10. to transport nəqliyyat, nəql a system for carrying people or
goods from one place to another
using vehicles, roads, etc.
11. to move köçürmək to change position or make
somebody/something
12. to carry aparmaq, daşımaq to take somebody/something
from one place to another
13. to compare müqayisə to examine people or things to
etmək,tutuşdurmaq see how they are similar and
how they are different
14. to recognize tanımaq to know who somebody is or
what something is when you see
or hear them or it, because you
have seen or heard them or it
before
15. to haul daşımaq to pull something/somebody with
a lot of effort
16. flexible çevik able to change to suit new
conditions or situations
17. inexpensive ucuz not costing a lot of money
18. non-perishable tez xarab olmayan processed or packaged to
withstand prolonged
storage : not perishable
19. haulage daşıma he business of transporting
goods by road or railway; money
charged for this
20. intercity şəhərlərarası travelling between cities, usually
with not many stops on the way
21. urban şəhər, şəhərli connected with a town or city
22. steam buxar, vapur the hot gas that water changes
into when it boils

1. What modes of transportation can be used for the effective management of
merchandise?
2. What does every mode of transportation require?
3. What types of cargo do you know?
4. What is one of the most basic and historical means of transportation from one
place to another?
5. What are the main advantages of road transportation?
6. What vehicles are normally used for carrying or delivering freight?
7. What capacity does road transport offer?
8. What is road transport most often used for?
9. What does rail transport use for the delivery of merchandise?
10. What trains have become the dominant types in the US for non-bulk haulage?
Why?
11. What functions can passenger trains perform?
2. Decide whether the following statements are true or false

1. There are four types of cargo (freight).
2. Goods packed in boxes are called bulky cargo.
3. Large quantities of cargo are called general cargo.
4. Large individual items are called bulk cargo.
5. A consigner chooses how to send the goods to the consignee.
6. The consignee can receive the goods either by air or by railway.
7. Different modes of transportation like road, rail, water and air can be used for
the effective management of merchandise.
8. All modes of transportation require the same set of infrastructure, type of
vehicles, technological solutions and regulations.
9. All modes of transportation have similar costs, service and transit times.
10. Rail transportation is one of the most basic and historical means of
transportation from one place to another.
11. Vans are typically used for carrying or delivering freight.
12. Road transportation offers a relatively higher cost than other logistic forms.
13. Transportation by road takes a relatively shorter period of time than other
possible means of transportation.
14. Road transport offers an unlimited capacity.
15. Rail transport is most often used for relatively inexpensive, non-perishable
items or for shorter distances.
16. Freight trains are usually powered by steam.
17. A freight train hauls cargo using freight cars specialized for the type of goods.
18. Freight trains are very inefficient.
19. Containers can easily be trans-shipped to other modes, such as ships and
trucks. 20. Passenger trains can perform a variety of functions including long
distance intercity travel and local urban transit services.
MODES OF TRANSPORTATION IN LOGISTICS: CONTINUED

3) Water (maritime transportation)
Sea transport has been the largest carrier of freight throughout recorded history.
Main maritime routes include oceans, coasts, seas, lakes, rivers and channels.
Water transport uses ships and large commercial vessels that carry billions of tons
of cargo every year. Sea, lake or river transport is particularly effective for
significantly large quantities of goods that are non-perishable in nature and for
cities or states that have water access. Moreover, transport via water is
considerably less expensive than other logistics methods, which makes it one of
the most widely used choices of transport for merchandise.
4) Air transportation
An airline is a company that provides air transport services for travelling
passengers and freight. Airlines vary from those with a single aircraft carrying
mail or cargo, to full-service international airlines operating hundreds of aircraft.
Airline services can be categorized as being intercontinental, intra-continental,
domestic, regional, or international, and may be operated as scheduled services or
charters. Air routes are practically unlimited. Merchandise is carried in cargo
compartments on passenger airplanes, or by means of aircraft designed to carry
freight.
Although air transport is more expensive than all other means of transportation, it
is definitely most time-efficient. Perishable merchandise like fruits and vegetables
are generally sent by air. More recently, air transportation has been
accommodating growing quantities of high value freight and is playing a growing
role in global (international) logistics.
5) Pipelines
Pipeline transport is the transportation of goods (liquids, gases, chemically stable
substances) through a pipe. Pipeline routes are also practically unlimited as they
can be laid on land or under water. The longest gas pipeline links Alberta to
Sarnia (Canada); it is 2,911 km in length. The longest oil pipeline is the Trans-
Siberian, extending over 9,344 km from the Russian arctic oilfields in eastern
Siberia to Western Europe. Pipeline construction costs differ according to the
diameter, and increase proportionally with the distance and with the viscosity of
fluids. Pipeline terminals are very important, since they correspond to refineries
and harbours.
6) Intermodal and multimodal transportation

Intermodal transportation concerns a variety of modes used in combination so
that the respective advantages of each mode are better exploited. It involves the
movements of passengers or freight from one mode of transport to another.
Multimodal transportation (also known as combined transport) is the
transportation of goods under a single contract, but performed with at least two
different means of transport; the carrier is liable for the entire carriage, even
though it is performed by several different modes of transport (by rail, sea and
road, for example). The carrier does not have to possess all the means of transport;
the carriage is often performed by sub-carriers (actual carriers). The carrier
responsible for the entire carriage is referred to as a multimodal transport operator,
or MTO.
Glossary
1. vessel gəmi a ship or large boat

2. compartment kupe, bölmə, one of the separate sections that a coach on a train
şöbə is divided into
3. pipeline boru kəməri a series of pipes that are usually underground and
are used for carrying oil, gas, etc. over long
distances
4. advantage üstünlük, a thing that helps you to be better or more
fayda, mənfəət successful than other people
5. disadvantage ziyan, to cause problems and tend to stop
əlverişsiz şərait somebody/something from succeeding or making
progress
6. airline hava yolları a company that provides regular flights to take
passengers and goods to different places
7. aircraft təyyarə, any vehicle that can fly and carry goods or
aviasiya, passengers
8. harbor liman an area of water on the coast, protected from the
open sea by strong walls, where ships can shelter
9. fluid maye a liquid; a substance that can flow
10. refinery email, a factory where substances in their natural state,
təmizləyici such as oil or sugar, are made pure:
qurğu
11. to link əlaqələndirmək to make a connection between two or more people,
things, or ideas:
12. to lay sərmək, to put something
döşəmək in especially a flat or horizontal position,
usually carefully or for a particular purpose
13. to uyğun gəlmək to match or be similar or equal
correspond
to
14. to vary dəyişmək to change or cause something
to change in amount or level, especially from
one occasion to another:
15. to categorize kateqoriyalara to put people or things into groups with the
bölüşdürmək same features
16. intermodal birdən çox being or involving transportation by more than one
nəqliyyatın cəlb form of carrier during a single journey
olunduğu
daşıma
17. multimodal bir neçə üsul involving several ways of operating or dealing wit
və nəqliyyat h something:
vasitələrinin
cəlb olunduğu
daşıma
18. exploited istismar etmək used for someone's advantage
19. bulky həcmli large and difficult to move or carry
20. dock dok, bərə a part of a port where ships are repaired, or where
goods are put onto or taken off them

1. What are main maritime routes composed of?
2. What do ships and large commercial vessels carry?
3. What is sea transport mainly effective for?
4. Is transport via water considerably less expensive than other logistics methods?
5. Are air routes practically unlimited?
6. Is air transport more expensive than all other means of transportation?
7. How can airline services be categorized?
8. Are perishable merchandise sent by water?
9. What does pipeline transportation involve?
10. What is the longest gas pipeline?
11. What does intermodal transportation concern and what does it involve?
12. What does multimodal transportation involve?
13. What does MTO stand for?
1. Main maritime routes are composed of oceans, coasts, seas, lakes, rivers and
channels.
2. Water transport uses ships and large commercial vessels that carry billions of
tons of cargo every year.
3. Sea, lake or river transport is particularly effective for small quantities of
goods. 4. Transport via water is considerably more expensive than other logistics
methods. 5. Air routes are limited.
6. Air transport is indisputably most time-efficient.
7. Perishable merchandise like fruits and vegetables are mostly sent by road.
8. More recently, air transportation has been accommodating growing quantities
of high value freight.
9. An airline is a company that provides air transport services for traveling
passengers and freight.
10. Airlines vary from those with a single aircraft carrying mail or cargo, to full-
service international airlines operating hundreds of aircraft.
11. Airline services may be operated as scheduled services or charters.
12. Pipeline routes are virtually unlimited.
13. The longest oil pipeline is the Trans-Siberian.
14. Pipeline construction costs increase proportionally with the distance and with
the viscosity of fluids.
15. Pipeline terminals are very important since they correspond to refineries and
harbours.
16. Intermodal transportation presupposes that the respective advantages of each
mode are better exploited.
17. Intermodal transportation is also known as combined transport.
18. Multimodal transportation is performed with one means of transport.
19. In intermodal transportation, the carriage is often performed by sub-carriers.
20. Sub-carriers are also called “actual carriers”.
Exercise 3
Match the two parts of sentences.
I. 1. Main maritime routes are composed of …
2. Sea, lake or river transport is particularly effective …
3. Merchandise is carried on passenger airplanes and/or …
4. Perishable merchandise (fruits/vegetables) are mostly …
5. Road transportation offers a lower cost than other …
6. Rail transport uses freight trains for …
II. a) … via aircraft designed to carry freight.
b) … for significantly large quantities of goods that are non-perishable in
nature.
c) … sent by air.
d) ... oceans, coasts, seas, lakes, rivers and channels.
e) … the delivery of merchandise.
f) … logistic forms.
Exercise 4
Fill in the gaps using suitable words from the box below.
trucks, costs, vehicles, distribution ,means, forms, freight

Road transportation has an average operational flexibility as 1) __________ can
serve several purposes, but are rarely able to move outside roads. Road transport
systems have high maintenance 2) ___________ for the vehicles and
infrastructures. They are mainly linked to light industries where rapid movements
of 3) _____________ in small batches are the norm. Yet, with containerization,
road transportation has become an important link in freight 4) __________. Road
transportation is one of the most basic and historical 5) __________ of
transportation from one place to another. There are many different types of
automobiles found on roads, although 6) _________ typically are used for
carrying or delivering freight. Road transportation offers a relatively lower cost
than other logistic 7) __________.
Exercise 5
Complete the passage with the words from the box below.
Infrastructures, facilities, mode, circulation, transportation, systems
Maritime transportation is the most effective 1) _________ to move large

quantities of cargo over long distances. However, due to the location of economic
activities maritime 2) _________ takes place on specific parts of the maritime
space, particularly over the North Atlantic and the North Pacific. Comprehensive
inland waterway 3) ________ include Western Europe, the Volga/Don system, St.
Lawrence/Great Lakes system, the Mississippi and its tributaries, 95 the Amazon,
the Panama/Paraguay and the interior of China. Maritime transportation has high
terminal costs, since port 4) ____________ are among the most expensive to
build, maintain and improve. High inventory costs also characterize maritime 5)
_______________. More than any other mode, maritime transportation is linked to
heavy industries, such as steel and petrochemical 6) ___________.
Exercise 6
Fill in the gaps in the text below.
Use the words from the box.
functions, transport, check-up, cargo, warehouses, terminals
Commercial sea ports perform different economic and administrative 1)

_________. Sea ports are responsible for loading and unloading operations,
servicing of inbound/outbound ships transportation, forwarding and warehousing
operations, transshipment of cargo to the marine transport from other modes of 2)
_______, etc. To carry out these functions sea ports have water areas, land
territories, warehouses and open storage facilities, cargo handling facilities,
passenger 3) ________, ways for railway and motor transport, and an adequate
personnel. Sea ports are also responsible for providing safe navigation and proper
organization of various activities: supervision for observance to shipping
regulations, issue and 4) ________ of ship’s papers, clearance of vessels inwards
and outwards, etc. Port top management includes controlling the following
operations: commerce, shipping, planning, labour and wages, mechanization,
technology, personnel, accounts, etc. Middle managers control 5) ________
handling complexes and other production units of the port. First-line management
is engaged in a direct control of cargo handling operations on the dock and in 6)
_________.
Read and translate the text below.

1.
A train station or railway station (also called a railroad station, rail station, or
depot) is a facility, at which passengers can get on and off trains and goods may be
loaded or unloaded. Railway stations provide services for passengers and loading
facilities for cargo; stations often have locomotive and rolling stock depots that
normally have facilities for storing and refuelling locomotives and rolling stock
and performing minor repair jobs. Cargo production unit is intended for dealing
with cargo operations and comprises loading / unloading tracks, terminals,
warehouses, etc. To improve and facilitate charging / discharging operations in sea
ports a great deal of train tracks are built and employed. Contemporary merchant
sea ports are fully equipped with railway depots and stations, and they may also be
called interchange stations where facilities for handling and storing cargoes are
installed.
2.
Seaports are important interfaces in the supply chain between sea and land
transportation. Seaports are points of convergence of inland and coastal
transportation systems. Some seaports are primarily focused on cargo and
commercial trade, while others cater to passenger boats like cruise ships; many
seaports provide facilities for a mix of uses. Seaports are responsible for ensuring
safe navigation and proper operation within the port including registration of
vessels issue and check-up of ship’s papers, clearance of vessels, organization of
pilotage and towage service, environmental control, etc. A typical seaport includes
equipment and facilities for handling and storing cargo: water areas, land
territories, warehouses and open storage facilities, passenger terminals, cranes,
approach ways for railway and motor transport. Ship building and repair
companies are typically located near ports for the convenience of their clients.
Seaport management controls various port operations such as embarking,
disembarking and transferring of passengers and crew, loading/unloading and
trans-shipment of cargo to and from the vessels, storage and warehousing of
merchandise on land and stevedoring to and from vessels, etc.
The main production units of the seaport are cargo handling complexes, where all
loading and unloading operations are carried out. The complexes specialize in
handling specific types of cargoes: general cargo, timber, coal, containers, etc.).
Each cargo handling complex comprises terminals, stevedore gangs, traffic control
service, warehouse and open storage personnel. To facilitate and improve seaport
management ports are provided with information computing centres that are
equipped with up-to-date sophisticated computers. As a result, a lot of problems
are solved by computers.

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Company

Company is an organization that makes or sells goods or services in order to get

3. contribution əməkdaşlıq,töhfə a gift or payment that is

UNDERSTANDING THE MAIN POINTS

Speaking: Work in pairs .

1. Bankruptcy is the state of being unable to pay your debts.

l) Company makes or sells … or services in order to get profit.

METHODS OF PAYMENT IN DOMESTIC TRADE

UNDERSTANDING THE MAIN POINTS

2. Decide whether the following statements are true or false.

TERMS OF PAYMENT IN INTERNATIONAL TRADE

UNDERSTANDING THE MAIN POINTS

A Letter of Credit guarantees 1) _________ of a specified sum in a specified

Read and translate the text below.

A Bill of Lading is a type of document that is used to acknowledge the receipt

An Air Waybill is a Bill of Lading that 1) _____________ the terms of flights

18. contribution əməkdaşlıq,töhfə a gift or payment that is

UNDERSTANDING THE MAIN POINTS

8. Bankruptcy is the state of being unable to pay your debts.

l) Company makes or sells … or services in order to get profit.

A financial statement is a formal record of the financial activities and position

1. accounting mühasibat işi the work or process of keeping financial

UNDERSTANDING THE MAIN POINTS

1)Accounting is the systematic … of illegal ways of paying less tax.

UNDERSTANDING THE MAIN POINTS

There are various types of advertising, including:

1. Print Advertising: Ads in newspapers, magazines, brochures, etc.

2. Broadcast Advertising: Commercials on TV or radio.

4. Outdoor Advertising: Billboards, transit ads, and posters.

5. Direct Mail Advertising: Flyers, catalogs, and postcards sent directly to

6. Product Placement: Integrating products into movies, TV shows, or other

8. Social Media Advertising: Promoting products or services on platforms like

9. Influencer Marketing: Collaborating with influencers to promote products or

10. Guerrilla Marketing: Unconventional, creative strategies to engage

UNDERSTANDING THE MAIN POINTS

effectiveness,fool, advertising, deceived, survival, demand, privately,

1)Advertising enables goods to be mass marketed. 3) Advertising brings prices

Kinds of insurance. Life insurance is a contract in writing whereby the insured

UNDERSTANDING THE MAIN POINTS

1. What does it mean to insure, and why do people buy insurance?

property,covers, accidents, violent, adjuster, damage, lending, unreasonable,

1) Risk is a person or business judged according to the danger involved in giving

1. Read the provided text on marketing and its functions.

MODES OF TRANSPORTATION IN LOGISTICS

Logistics refers to the transportation of merchandise – raw materials or finished

UNDERSTANDING THE MAIN POINTS

2. Decide whether the following statements are true or false

MODES OF TRANSPORTATION IN LOGISTICS: CONTINUED

6) Intermodal and multimodal transportation

1. vessel gəmi a ship or large boat

UNDERSTANDING THE MAIN POINTS

trucks, costs, vehicles, distribution ,means, forms, freight

Maritime transportation is the most effective 1) _________ to move large

Commercial sea ports perform different economic and administrative 1)

Read and translate the text below.

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