BUSINESS ENGLISH

by Yıldıray KURNAZ
• An organization is a group of people within some structure who
possess a common objective, usually expressed in a mission
statement.
• Organizations may be:
• for profit (frequently referred to as “firms”)
• not-for-profit

• A market is a place (real or virtual) where potential sellers and buyers

meet to exchange resources (which may be money, products, services,
etc.).

• An industry is a group of organizations competing in a market under

similar bases of competition
A “basis of competition’ is a dimension upon which companies choose
to compete, e.g.,

• Price
• Quality
• Delivery
• Service
• Innovation
• Knowledge
• Others?
• What is the objective of the firm?
• Maximize shareholder wealth
• Generate above average economic rents (profits)

• Shareholder:
Someone who holds stock (ownership) in the firm.

• Stakeholder:
Anyone who possesses an interest in the firm’s activities (govt., public
pressure groups, alumni, students, etc.)
 asset
• An …………. is anything the firm owns or controls.

• Types of assets:
• Physical: plant equipment, location, access to raw materials
• Human: training, experience, judgment, decision-making skills, intelligence,
relationships, knowledge
• Organizational: Culture, formal reporting structures, control systems,
coordinating systems, informal relationships
• A capability
…………….. is usually considered a “bundle” of assets or resources to
perform a business process (which is composed of individual activities)

• E.g. The product development process involves conceptualization,

product design, pilot testing, new product launch in production,
process debugging, etc.
 growth
• The ……………. of a company refers to the company growing in size
and capacity, therefore allowing it to supply a wider range and
variety of goods and services.

• This however, means that more staff have to be employed and

therefore more money gets spent on employee wages.
 Outsourcing
• ……………………refers to when a company bring in specialists from
outside the company to assist them in their expertise in that
particular area

• Doing this helps strengthen the organisation as ideas and methods

could be left behind for them to use in the future and the
organisational chart will be simpler with fewer full time specialist
employees within the company
PRODUCTION
 PRODUCTION
Production
……………….. is the organised activity of transforming resources
into finished products in the form of goods and services.

objective satisfy
The …………….. of production is to ………….. the demand for
such transformed resources.

Production is any activity for the satisfying other peoples’ wants

through exchange.
 Three Types of Production

1. Primary Production

2. Secondary Production

3. Tertiary Production
 Three Types of Production

1. Primary Production:
It is the type of production by ‘extractive’ industries like
agriculture, forestry, fishing, mining and oil extraction.
2. Secondary Production:
It is the production in manufacturing industry.
It means producing semi-finished and finished goods from raw
materials.

Example:
conversion of flour into bread.
3. Tertiary Production:
It means producing all those services in order to enable the
finished goods to be put in the hands of consumers.

Example:
banking, insurance, transport
 Factors of Production

a) Land
b) Capital
c) Labor
d) Entrepreneur
 CONCERNS OF PRODUCTION

• What goods will be produced?

• How will the goods be produced?

• For whom will the goods be produced?

SUPPLY AND DEMAND
 Supply and Demand
Supply
……………… means giving needed or wanted things to others.

Demand
……………… means asking for something.
 supply and demand
• The forces of …………………………….. determine a product’s market price

• In turn, supply and demand are the result of peoples’ subjective

judgment of the value or utility they will receive from supplying or
consuming a particular product
Supply is determined by:

a) Price
b) Cost of input
c) Price of other goods
Demand is determined by:

a) Price
b) Price of other goods
c) Buyers’ economic conditions
d) Preferences of consumers
e) Expectations
 supply says that, all other things remaining equal,
• The law of ………….
as the price of a good increases (decreases), the quantity of that
good supplied will increase (decrease).

demand
• The law of …………….states that, all other things remaining equal, as
the price of a good increases (decreases), the quantity of that good
demanded will decrease (increase).
UNEMPLOYMENT
Employ – Employer – Employee – Employment - Unemployment

Employ
……………………… refers to giving work to (someone) and paying them for it.

Employer refers to a person or organization that employs people.

………………………

Employee refers to a person employed for wages or salary

………………………

………………………
Employment refers to the state of having a paid work.

……………………… refers to the state of not having a paid work.

Unemployment
Employment Pyramid
 UNEMPLOYMENT

Unemployment occurs when a person who is actively searching for

work .
job is unable to find …………

Unemployment is often used as a measure of the health of the

economy. The most frequently cited measure of unemployment is the
unemployment rate. This is the number of unemployed persons
divided by the number of people in the labor force.
 UNEMPLOYMENT

VOLUNTARY INVOLUNTORY
UNEMPLOYMENT UNEMPLOYMENT
 Five Types of Unepmloymet

a) Frictional unemployment
b) Seasonal unemployment
c) Cyclical unemployment
d) Structural unemployment
e) Hidden Unemployment
 FOUR TYPES OF UNEMPLOYMENT
Frictional unemployment
• …………………………….… that occurs when people are between jobs or
entering the job market for the first time.
• Seasonal unemployment
…………………………….… that results from weather-related changes in
demand for certain products or services.
• Cyclical unemployment
…………………………….… that occurs because of downturn in the
economy.
• Structural unemployment
…………………………………that results from changes in the economy,
making the skills of certain workers obsolete.
• Hidden unemployment
………………………………… is the condition of working people who have
no contribution to production work.
MIGRATION
 Migration

movement of people from one

Migration is the permanent …………….
geographical location or region to one another.

Emigration
……………… means exiting current homeland to live in
another.

Immigration
……………….. means coming in to a a geographical location or
region to live.
The choice between emigrate, immigrate, and migrate depends on the
sentence's point of view.

Emigrate is to go, immigrate is to come.

If the sentence is looking at the point of departure, use emigrate.

If the sentence is looking at the point of arrival, use immigrate.

Talking about the actual process of moving? Use migrate.

When someone moves from place to place within a country, it is
internal /..................
called ………….... domestic migration.
When someone leaves his/her country to go to another, it is called
overseas international
……………… or ……………………. migration.
When people leave rural areas (country-sides) to go to urban areas
rural to urban migration.
(towns and cities), it is called ………………………..

When people leave urban areas (country-sides) to go to rural areas

urban to rural migration.
(towns and cities), it is called ………………………..
 Reasons for Migration

a) Natural Causes
b) Political Causes
c) Economic Causes
d) Social Causes
 REASONS FOR MIGRATION

a) Natural Causes
Erosion Severe drought
Earthquake Flood
•Volcanism •Desertification
b) Political Causes

•Battles •Exchange
•Revolution •Border change
c) Economic Causes

•Business opportunity •Existence of natural resources

•Unfair income distribution •Division of agricultural land
d) Social Causes
•Education •Health
•Security •Rapid population growth
 Push factors
………………………… are things that cause people to leave
their residences.
Pull factors
………………………… are things that cause people to come
into new areas.
TRADE
 TRADE
Trade
……….. means buying and selling manufactured goods and
services.

transferred from producers to

Thanks to the trade, products are ……………..
the consumers.
profit .
Trade is made for ………
Producers and consumers don’t always meet face to face for
trading.
Two Types of Trade:

a) Domestic Trade
b) Foreign Trade

Domestic trade is called trade between the territories within the

…………………...
borders of the country.

Foreign Trade
…………………… is exchange of capital, goods, and services
across international borders or territories.
 Basic Concepts of Trade
Import is a good or service brought into one country from
• …………….
another.

Export
• …………….. is a function of international trade whereby goods
produced in one country are shipped to another country for future
sale or trade.
• Along with exports, imports form the backbone of international
trade. The higher the value of imports entering a country, compared
to the value of exports, the more negative that country's balance of
trade becomes.

• The sale of such goods adds to the producing nation's gross output.
If used for trade, exports are exchanged for other products or
services. 
 Basic Concepts of Trade (2)
Embargo
• ………………. occurs when a government order to prohibit trade with
one or more nations.

Quota
• ……………. is the limit on the amount of goods that can be imported
into a country within a certain period of time.

• ………….
Taxes are generally an involuntary fee individuals or corporations
that is enforced by a government entity, whether local, regional or
national in order to finance government activities.
 Basic Concepts of Trade (3)

commodity
Anything that is bought and sold for money is a ………………… .

It includes produced goods and services, inputs (such as capital

or raw materials), and even labour.

Market
• …………… is whenever and wherever people make exchanges
with one another

Exchanging
• ..……………..… is giving one thing for another (e.g. $ for food)
GLOBAL ECONOMY
 GLOBAL ECONOMY

economic actionstaken anywhere in the

Global economy means ………………….………
world .
………..
It may affect an individual’s standard of living.
A Global Perspective
 Basic Concepts of Global Economy

• GDP (Gross Domestic Product) is the market value of all final goods
……………………………………………
and services produced within a country in a given period of time

• GNP (Gross National Product) is the market value of all final goods
………………………………………..
and services produced by permanent residents of a country in a
given period of time

• Economic development is the capacity of a nation to generate and

……………………………………
sustain an annual increase in its GNP.
 Basic Concepts of Global Economy(2)

Income per capita

…………………………… is the per-head value of final goods and services
produced by permanent residents of a country in a given period of
time. It is converted to USD using the current exchange rate.

PPP (Purchasing Power Parity)

………………………………............. is used worldwide to compare the
income levels in different countries.

Example: Let's say that a pair of shoes costs Rs 2500 in India. Then it

should cost $50 in America when the exchange rate is 50 between the
dollar and the rupee.
 Basic Concepts of Global Economy(3)
Inflation is the rate at which the general level of prices for goods
• ……………...
and services is rising and, consequently, the purchasing power of
currency is falling.

Deflation is a general decline in prices, often caused by a

• …………………
reduction in the supply of money or credit.
 Basic Concepts of Global Economy(4)

Interest
• ………………… rate is the amount charged, expressed as a percentage
of principal, by a lender to a borrower for the use of assets.

• Interest rates are typically noted on an annual basis, known as

the annual percentage rate (APR). 
 Basic Concepts of Global Economy(5)
investment
An ……………………. is an asset or item that is purchased with the hope
that it will generate income or appreciate in the future.

In an economic sense, an investment is the purchase of goods that are

not consumed today but are used in the future to create wealth.

In finance, an investment is a monetary asset purchased with the idea

that the asset will provide income in the future or appreciate and be sold
at a higher price.
 Basic Concepts of Global Economy(6)
Economic growth
• …………………………. is an increase in the capacity of an economy to
produce goods and services, compared from one period of time to
another. 

• Economic growth can be measured in nominal terms, which include

inflation, or in real terms, which are adjusted for …………….. .
inflation

• For comparing one country's economic growth to another, GDP

or ………. per
GNP capita should be used as these take into account population
differences between countries.
 Basic Concepts of Global Economy(7)

profit and loss (P&L) statement is a financial statement that

A ………………………………….
summarizes the revenues, costs and expenses incurred during a specific
period of time, usually a fiscal quarter or year.

These records provide information about a company's ability or lack of

generating profit by increasing revenue, reducing costs, or both.

The P&L statement is also referred to as "statement of profit and loss",

"income statement," "statement of operations," "statement of financial
results," and "income and expense statement.«
ECONOMIC CRISIS AND
TAXES
 Economic Crisis

Economic crisis is a situation in which the economy of a country

experiences a sudden downturn deficit in the
…………….. caused by financial ..............
economy.
Technological Natural
Factors Factors

FACTORS THAT

CAUSE ECONOMIC
Political CRİSİS Economic
Factors Factors

Social
Factors
 Basic Concepts of Economic Crisis

Recession
………………. is the period of slow economic activity marked by
decreases in production, spending and consumer demand, along
with an increase in unemployment.

Bankruptcy
……………….. is a proceeding involving a person or business
that is unable to repay outstanding debts.
 Basic Concepts of Economic Crisis(2)
financial crisis
A …………………….. is a situation in which the value of financial
institutions or assets drops rapidly.

A financial crisis can come as a result of institutions or assets being

overvalued, and can be exacerbated by investor behavior.
 Basic Concepts of Economic Crisis(3)
Downsizing
• ………………………. means that a company has to cut down on
employees and the amount of products bought in to save money in
the event of financial deficit

• It means that some jobs will be sacrificed and wages will be reduced
 Basic Concepts of Economic Crisis(4)
Delayering
………………….. is when a company decides to cut the amount of
management levels of their organisation.

• Fewer posts of management are easier to handle and cheaper to pay

 Taxes

fee individuals or corporations

Taxes are generally an involuntary …………
that is enforced by a government entity, whether local, regional or
finance government activities. (Bonus, 10pts)
national in order to ……………………..………..

It is taken to cover the financing of public expenditures from

individuals and institutions, to the extent of their ability to pay.
 Features of Taxes

a) They are taken by the state.

b) They are taken to finance public spending.
c) It is a gratuitous payment for people.
d) It is a mandatory payment.
e) It is an economic value.
 TURKISH TAX SYSTEM

TAX ON INCOME TAXES ON EXPENDITURES TAX ON WEALTH

PROPERTY TAX
INCOME TAX VALUE ADDED TAX

MOTOR VEHICLE
PRIVATE CONSUMPTİON
CORPORATION TAX TAX
TAX

INHERITANCE AND
STAMP TAX TRANSFER TAX

FUNDING
 TURKISH TAX SYSTEM

1.Income Tax
Tax taken directly on personal income.

2. Corporation Tax
Tax taken on companies profits.

3. Value – Added Tax

Tax on the sale of manufactured goods and.
 TURKISH TAX SYSTEM (2)
4. Private Consumption Tax
The tax proportionally taken over the products.

5. Stamp Tax
Taken from official papers documenting transactions.

6. Funding
Are payments made in return to benefit from public services.
 TURKISH TAX SYSTEM (3)
7. Property Tax
Tax taken annually from immovable properties..

8. Motor Vehicle Tax

Taxes that apply to motor vehicles.

9.Inheritance And Transfer Tax

Tax on wealth.
Departments of An
Organization
 Departments of An Organization

a) Purchases Department
b) Human Resources Department
c) Finance Department
d) Administration Department
 Purchases Department
• The purpose of the …………………………………… of a company is to buy in
equipment to be used by the employees of the organisation. (e.g.:
pens, paper, pencils, printer ink, computers etc.)
 Human Resources department is responsible for the
• The …………………………………………………
recruitment and managing of staff.

• They issue job descriptions, personal specifications, employee

record cards and contracts.

• They advertise jobs that become available, collect application

and/or CV forms from applicants, prepare a list of applicants and
interview them
• They arrange training courses for all departments of the business

• They insure that all employee’s are looked after during their working
hours.

• They keep employee details of sicknesses, holidays, annual leave,

accidents and personal contact information
 Finance Department are in charge of preparing and checking of
• The ……………………………….
invoices, credit notes and statements from suppliers of goods
and/or services.

• They prepare cheques for suppliers.

• Insure that all money that is brought in is banked
• Prepare budgets and accounts
• Calculate wages and prepare payslips
• Insure that all employees are paying the correct amount of tax
• Analyse the financial situation of the company and shareholders.
 administration department is responsible for providing
• An ………………………………………….
administrative aid in five areas of a business: information
management systems, human resources, payroll, acquisition and
communication.

• The goal of the administration department is to keep all

departments within a business operating at maximum capacity.
Objectives of A Business
 Objectives of A Business
Business objectivesare the goals of business – what the business wants
………………………….
to achieve.

All businesses have their own objectives.

 There are six major types of business objectives:

1. Survival,
2. Profit Maximization,
3. Growth,
4. Managerial Objectives,
5. Sales Revenue Maximization,
6. Image and Social responsibility.
 Survival objective is essential for any business in that no survival
• …………………………..
means no today and no future.
 Profit maximization means increasing profit as much as possible or
• ………………………………
producing a level of output which brings the most profit for the
business.
 Growth objective may refer to the goal of a business to become
• …………………………..
larger, stronger or more competitive.
 Managerial objective refer to the managers’ own objectives in the
• ………………………….
business.
Some common examples of managerial objectives:

• Maximize their departmental budgets

• Maximize number of employees under their control or in their
charge
• Maximize their personal benefits such as entertainment expenses
or company cars
• Maximize their leisure or free time
• Maximize their personal salary
• Delegate as much work as possible
• Improve their social status or position
• Etc…
• Sometimes, when managers and employees are paid according to their
sales revenue maximization
sales revenues rather than the created profit, ……………………………………..
may become the main objective of the business.

• The business wants to enlarge the market share first and then benefits in
the long run.
 Image and Social Responsibility
Objectives of ……………………………………………

• Government legislation
• Competitive pressure
• Benefits for the business
• Sustainable development