An 1 Lang of Business-manual Sem[1].2

ANDREI NICULESCU SANDA MARCOCI (Coordonator) CRISTINA CRIŞAN CĂLIN VLAD

The Language of Business Accounting • Banking • Finance

Workbook

– Second Edition –

Contribuţia autorilor: Andrei Niculescu: Units 2, 9, 11, 13, 15, A1 Sanda Marcoci: Units 4, 7, 10, 12, A2 Cristina Crişan: Units 3, 5, 8

Călin Vlad: Units 1, 6, 14

© Editura Fundaţiei România de Mâine, 2007

Redactor: Andreea DINU Tehnoredactor: Marilena BĂLAN Coperta: Marilena BĂLAN

Bun de tipar: 14.11.2007; Coli tipar: 13,5 Format: 16/61×86

Editura şi Tipografia Fundaţiei România de Mâine Splaiul Independenţei nr.313, Bucureşti, Sector 6, O.P. 16 Tel./Fax: 316.97.90; www.spiruharet.ro e-mail: [email protected] UNIVERSITATEA SPIRU HARET

Departamentul de Limbaje Specializate

Descrierea CIP a Bibliotecii Naţionale a României The Language of Business/Accounting • Banking • Finance/Workbook/Second Edition Andrei Niculescu (coord.), Sanda Marcoci, Cristina Crişan, Călin Vlad - Bucureşti: Editura Fundaţiei România de Mâine, 2006. 216 p., 20,5cm Bibliogr. I.S.B.N. 978-973-163-019-9 I. Niculescu Andrei (coord.) II. Crişan Cristina III. Marcoci Sanda IV. Vlad Călin 811.111:336(075.33)

ANDREI NICULESCU SANDA MARCOCI (Coordonator) CRISTINA CRIŞAN CĂLIN VLAD

The Language of Business

Accounting • Banking • Finance Workbook

– Second Edition –

EDITURA FUNDAŢIEI ROMÂNIA DE MÂINE Bucureşti, 2007

5

CUPRINS

UNIT 1: MEETING AND GREETING PEOPLE …………... 7UNIT 2: JOBS ……………………………………………….. 16UNIT 3: SOCIALISING IN BUSINESS …………………… 28UNIT 4: HOBBIES AND INTERESTS …………………….. 41UNIT 5: OBTAINING INFORMATION: TELEPHONING 49UNIT 6: HIGHER EDUCATION AND CAREERS: “SPIRU HARET” UNIVERSITY ………………...

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UNIT 7: EUROPEAN UNION MEMBERSHIP ……………. 67UNIT 8: COMPANY ORGANISATIONAL STRUCTURES 76UNIT 9: ACCOUNTING ……………………………………. 88UNIT 10: BANKING ………………………………………... 100UNIT 11: FINANCIAL ACCOUNTING …………………… 111UNIT 12: FILING SYSTEMS ………………………………. 124UNIT 13: INTERNATIONAL TRADE …………………….. 132UNIT 14: THE STOCK EXCHANGE ……………………... 143UNIT 15: FINANCIAL MANAGEMENT ………………….. 157FURTHER READINGS: FINANCE ………………………... 166Bibliography …………………………………………………. 215

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UNIT 1

MEETING AND GREETING PEOPLE

INTRODUCTIONS I’m Hans Schnabl from Düsseldorf, Germany. I’m a German

citizen although my mother comes from Austria. I live at Number 10 Weisstrasse Street. My parents and I live in a large house. I’m the only child. My family is rather small. My uncle and aunt are both clerks. My cousin is a football player. I work as a consultant in a large software company. I like playing sports, climbing mountains, reading novels and poetry and speaking English. I also like travelling both inside Germany and abroad. So far, I’ve visited some Eastern and Western European countries. I also visited the USA, Canada, Japan, China and Thailand. I’d like to travel all over the world. I consider that all countries are very interesting from many points of view. They really deserve to be visited. I’ll tell you some more things about my family. My father is a manager at a large international company and my mother is a professor. She teaches Classical and Modern German Literature at the Düsseldorf University. We all love our jobs very much.

I’m Monica Angelescu from Bucharest, Romania. I’m a

Romanian. I live at Number 6 Iuliu Maniu Road in a block of flats at the 3rd floor, apartment no 32. My telephone number is 775 644 021. I have a large family. My dad is a businessman and my mum is a teacher. I also have two younger sisters who are pupils at an elementary school in Bucharest. My uncle is an economist, my aunt is an accountant and my cousins are both doctors. I’m a student. I love speaking English and listening to English pop music, which is a great way of learning new words and every day expressions. I also like playing tennis, swimming and travelling a lot both inside Romania and abroad. I visited some Western European countries. In future, I’d

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like to visit some countries from other continents, such as Canada or the USA. I know they are very interesting. Now, I’d like to give you some more details about my family. My father speaks English very fluently. He wants me to speak it well enough so that I can join his company after graduating university. But I’d rather work in public relations in the near future.

READING COMPREHENSION 1) Specify whether the following statements about the two

above texts are True or False: a) Monica Angelescu is from Bucharest. b) She works as a consultant in a large software company. c) She likes speaking English, listening to pop music, playing

tennis, swimming and travelling a lot. d) She wants to work in public relations in the near future. e) Her father doesn’t want her to join his company after she

graduates University. f) Hans Schnabl is from Berlin. g) He likes playing sports, climbing mountains, reading novels

and poetry and speaking English. h) His father is a professor at the Dusseldorf University. i) Hans and his parents live in a small house in Dusseldorf. j) They all love their jobs very much. 2) Read these conversations and then complete with the

correct forms of the verb To Be: am, are and is. Use short forms where possible, e.g. I’m, you’re, he’s, so on.

a) A: Good morning. I….(1) Jack Harrison. B: Pleased to meet you. My name….(2) Ken Robertson. b) A:…..(3) you Ms. Johnson? B: Yes, I….(4). Please call me Julia. c) A: Excuse me,….(5) your name Lawson? B: No, it….(6). It….(7) Wilson. d) A:….(8) you Mr. Watson?

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B: No, I…..(9). I….(10) Mr. Brown e) A:….(11) your name Richardson? B: Yes,…..(12). How do you do? f) A: ….(13) you Herbert Ross and Mary Palmerston from

London? B: Yes, we....(14).Pleased to meet you A: Pleased to meet you, too. 3) Match the first part of the sentence in Column A with the

second part of the sentence in Column B:

A B 1) Monica Angelescu lives in Bucharest

a) is a consultant in a large software company

2) Hans Schnabl lives in Dusseldorf

b) He’s from Germany

3) Monica Angelescu’s father wants her….

c)….is a manager at a large international company

4) Hans Schnabl’s father…. d) She’s from Romania 5) In future, Monica Angelescu…. e)….to join his company after she

graduates University 6) Hans Schnabl works…. f) …prefers to work in public

relations Read the following interview: A: Just a few question, Mr. Olafsson. It won’t take long. B: That’s fine. A: Who do you work exactly? I understand it’s a division of Sony. B: Yes, the full name is Sony Electronic Publishing. A: Sony…Electronic…Publishing…And you’re the President of the company. Excuse me, but you’re very young. B: Yes…well…It’s a very young company. A: And where do you live and work? B: In the United States. A: But you’re from Iceland?

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B: Yes, that’s right. A: And what does your company do? Do you make hi-fis? TVs? B: No, we make video games and software. A: Video games? Do you play them at home? B: No, I don’t take my work home. When I’m at home, I write. That takes a lot of my time. A: That’s interesting. What sort of things do you write? B: Novels and short stories, mainly. A: Is this one of your books? B: Yes, it is. A: “Absolution”… Oh, you’re name’s Olafsson. Let me write

that in my notebook. O-L-A-F-double S-O-N. But there’s one thing I don’t understand. You run a big division of an international company and you write novels? How do you find the time?

B: Well, I travel a lot, so I have free time to work in the evenings, in my hotel room. And at weekends, of course. 4) This is an extract from the article Miguel Martinez wrote

about Olaf Olafsson. Fill in the spaces with one of the verbs: are, is, does, do, don’t, isn’t, write, writes, works, makes

Meet sony’s best selling president

Sony Electronic Publishing is a division of Sony. It….(1) video

games and software. The President of the division….(2) old – in fact he is only 30 years old! And his name ….(3) Olaf Olafsson.

But….(4) you know his other job? In his free time, Olaf Olafsson….(5) novels and short stories. In his native country, Iceland, Olafsson’s books are best-sellers. But if you….(6) live in Iceland, don’t worry! His new novel called “Absolution” is translated into English and German. And the books….(7) in the shops now!

Olafsson is a busy man. He….(8) long hours, and he travels all over the world for Sony. So how…..(9) time to write?

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“I usually write for an hour or two every evening” he says. ”And at the weekends, I often….(10) for eighteen hours, alone, on the roof of my apartment building.”

(Adapted from Business Basics by David Grant and Robert Mc Larty, Oxford University Press, 1995)

VOCABULARY DEVELOPMENT 1) Complete these sentences about yourself: a) I work for………………(company) as…………….(position) b) My business address is………………………………………. c) My business telephone number is…………………………… d) My private address is………………………………………… e) My private telephone number is…………………………….. 2) Translate into Romanian the following useful words and

expressions: 1) Branch (noun) 2) Office 3) Excuse me 4) How do you do? 5) I’m sorry 6) Please call me…. 7) Pleased to meet you 8) How are you? 9) Fine, thanks 10) Not too bad 11) I’d like to introduce…. 12) How about some coffee? 13) Nice to meet you 14) See you later GRAMMAR 1) Fill in the blanks with the correct article: a) My friend is….tennis player b) Mary goes to….church every Sunday

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c) He has….hour and….half for dinner d) …. radio is broken. I need….screwdriver e) We never refuse to offer someone a job on ….basis of….age f) Don’t worry. Everybody makes….mistakes g) ….visitors must be accompanied at all times. 2) Choose the right pronouns in brackets in the following

sentences: a) Do you think (he/him) is stronger than I am? b) Just between you and (me/I), it’s (him/he) I’m afraid of, not

(she/her) c) Let (we/us) all go for a walk except (she/her), since (she/her)

is tired d) You’re as tall as (I/me), so you can easily ride my bike, but

you’re much fatter than either (I/me) or my cousin, so we can’t lend you a sports jacket

e) How can you talk to a woman such as (she/her)? f) Help (I/me) carry (she/her), (she/ her) has fainted. 3) In the following sentences insert the missing possessive

adjectives and pronouns: a) James has come to see me; ….father and I were school friends. b) I see that she has lost….pencil; perhaps you can lend her … c) Tell him not to forget….tickets; she mustn’t forget….either d) It was a very good chocolate, but I’ve eaten…up; can you give me a little piece of….? e) They have two of….houses in this street, and the house on the corner is also… f) This doesn’t look like….notebook; it must be…. * The Plural of Nouns:

Model: - Regular: houses; planes, knives, watches, et - Irregular: man-men; woman- women; child- children; tooth- teeth, etc.

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- Collective nouns: family; army; police, crowd, jury, etc. e.g: My family are at the mountains (Correct) My family is at the mountain ( Incorrect) - Compound nouns: brothers- in -law, armchairs, overalls, etc. - Foreign plurals: formula- formulae; datum- data; appendix- appendices, alga- algae, etc.

4) Put the words in brackets at the right plural forms: a) They have some nice (flower) in their garden. b) The (boy) are talking to their (friend). c) ( Dog) are nice and friendly (animal). d) The (dictionary) are on the (shelf). e) The (mouse) were caught by the (cat). f) She asked that her (book) should contain detailed (appendix). g) Television and (newspaper) are the mass (medium) for advertising.

• The Synthetic Genitive: – answers the question “whose”? • At the singular and irregular plural forms- s; e.g: the professor’s courses; children’s books • At the regular plural forms ’: the students’ notebooks.

5) Complete the next sentences with the right form: a) Entering the room I saw that the children.. books were thrown

everywhere on the floor b) This waitress.. smile is quite nice and pleasant c) I don’t remember these students…names d) His father.. job is interesting e) The professor.. remark should be taken into account f) Today.. journey was very interesting and comfortable 6) Make questions and put the right Auxiliary Verbs using

the examples below: e.g. The students/ go to courses every day?

Do the students go to courses every day? Paul/ like Mathematics? Does Paul like Mathematics?

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a) Mary / understand the question? b) it / rain a lot in autumn? c) Mr. White / read the newspaper on the bus? d) your parents / like old films? e) the shops / close at 9 o’clock? f) you / attend a good University? g) he / know what he is doing? h) these magazines/ publish interesting articles? 7) Choose the correct form of the verbs in brackets according

to the Subject- Predicate Concord: a) A great number of pupils (have/ has) spent their holidays in

the camp b) (Is/Are) Mathematics your favourite subject? c) Several Chinese (have/ has) contributed to the success of the

research d) (Was/Were) the news good? e) Fortunately all the crew members(was/were) saved f) The money (is/ are) on the table g) The local police (has/ have) helped the firemen to put out the

fire h) The Romanian army (have/ has) always fought for the

country’s independence i) I want to know if this species (has/ have) survived j) The great variety of fruit on display (attract/ attracts) most of

the customers. 8) Put the verbs in brackets at the correct form according to the Subject- Predicate Concord: a) Either my parents or my elder brother (accompany) my younger sister to school. b) Neither Joan or her sisters (wash) the dishes after lunch. c) Crime and Punishment (rank) among the best novels of world literature.

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d) To treat them this way (be) unfair? e) Where (be) the scissors? f) These sort of mushrooms (be) not good to eat. g) The cat, together with the kittens, (be) playing in the sun. h) My father, as well as my mother, (be) eager to know you. i) John, alongside with his friends, never (miss) a basketball match. j) The principles on which he worked, as well as the way he acts, (be) appreciated by his fellow-students.

9) Write sentences using the following words and expressions of price, speed, ratio, time, so on.

A couple; a dozen; half a dozen; a score (20); a gross (144); a

hundred: a thousand; a lot of; a great many of; a great deal of; five pence a kilo; six pence a dozen; eighty kilometers an hour; four times a day; a pound; a metre.

E.g: I saw him a couple of days ago. There are a lot of students at the University. He usually drives with eighty kilometers an hour, so on.

SPEAKING In groups of four discuss about your name, addresses, birth

place, occupations, nationality, families and relatives

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UNIT 2

JOBS What is the employment outlook for office careers? The great

influx of computers and other office technological advances has not changed the need for people with good skills. Statistics estimate a 10 percent increase in secretarial positions in the ten-year period through 2010. Managerial / administrative positions are expected to increase by more then twice that percentage.

Now that you are aware of the promising outlook for office employees, you should familiarize yourself with the steps you must follow in seeking employment. If you work full time, you will spend approximately 50 percent of your waking hours at your job. Make sure, then, that the job you select will be a rewarding one to which you can give your best effort.

Sources of job information – newspaper advertisements: the classified section of

newspapers is a major source of job openings. Two kinds of classified advertisements are listed in newspapers: signed and blind. A signed advertisement includes the name of the firm placing the advertisement. A blind advertisement does not show the firm’s name. In many cases only a telephone number or a post office box number is given in a blind advertisement. Private employment agencies must place signed advertisements;

– employment agencies; – placement offices and instructors: most schools and colleges

have placement counsellors that aid students in career planning; – friends and relatives. The job application process Before you apply for a job with a particular company, find out

all you can about the company. This information is needed for two major reasons. First, you need to know if you meet your career goals

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by working for this company. Secondly, you need to know as much about the company as possible in order to be prepared for the interview. One question often asked in the interview is “Why do you want to work for this company” Unless you know something about the company, you cannot satisfactorily answer this question.

When a company needs to employ new people, it may decide to advertise the job or position in a newspaper. People who are interested can then apply for the job by sending in a letter of application or covering letter (US cover letter) and a curriculum vitae or CV (US resumé) containing details of their education and experience. In some cases a company may prefer to do this initial selection after asking candidates to complete a standard application form. The company’s human resource department will then select the applications that it considers the most suitable and prepare a shortlist of candidates or applicants who are invited to attend an interview.

How to write a Letter of Application ? A letter of application should be concise and to the point. It

should contain three or four paragraphs. – First paragraph

state your interest and purpose for writing the letter. if you know of a specific job opening, state that you are applying

for it and how you learned about it. – Second paragraph

emphasize your qualifications. Highlight only those areas that will give you an advantage over other applicants.

State what experience you have and how useful you can be to the company.

create interest in your abilities and state your desire to work for that particular firm. – Third paragraph

request an interview. Be clear as to when and where you can be reached. If you are responding to an advertisement which asks for salary requirements, give a range instead of a specific number.

How to write a CV The CV or résumé is a concise statement of your background,

education, skills and experience. In writing your CV, remember that it

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is one of the tools that should help you get a job. You should present your qualifications in the best light possible. In addition to personal information such as your name, address and telephone number, other information include:

your career objective education

list degree, institution, major & date (suggest beginning with the highest degree and working backwards office skills and abilities

work experience / work history title, employer’s name, dates (dates can go first if you

wish; list your experience in reverse chronological order). achievements and accomplishments (if relevant to your

objective) references

The interview If you have done well thus far in the application process, you

may get the opportunity you’ve been hoping for – the chance to meet the employer face-to-face. Helpful hints:

dress appropriately give a firm handshake maintain good eye contact try not to act nervous, display good humour show a genuine interest in what the interviewer says and be

alert to all questions try to understand your prospective employer’s needs and show

how you can fill them express yourself clearly and with a well-modulated voice.

From your application, your CV, and your employment tests that may have been administered, an interviewer can determine your specific skills. What must be determined, however, is your ability to project yourself through your use of good grammar, your knowledge of current events, your interests and your attitude toward people and work in general.

Commonly asked questions: regarding experience

Why did you leave your previous job(s)?

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Which duties performed in the past have you liked the best ? the least? Why? Have you had any problems with previous supervisors?

regarding education: Which courses did you like the best? the least? Why? Did your grades adequately reflect your full capability? What special training have you had that is required for

this position? questions you need to ask:

What are the key responsibilities of the position? What factors determine promotion eligibility? Has the organisation had any layoffs or cutbacks in the

last five years? Preparing for an interview takes quite a bit of work. If you believe in

your ability to be a good employee, prove it in the interview. READING COMPREHENSION 1) List sources that can be used to obtain job information. 2) Give two reasons why you need knowledge about a company

before you apply for a position. 3) List five musts for writing a good letter of application. 4) What categories of information should be included on a CV? 5) Which are the main considerations in preparing for an

interview? 6) What questions you need to ask in an interview? VOCABULARY DEVELOPMENT

♦ Synonymous pairs: o occupation ( anything one does) // profession ( requires higher education or special training) o wages ( paid weekly usually for manual or clerical work) / salary (paid monthly usually by cheque)

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1) Chose the appropriate word: a. Her main (occupation / profession) appears to be sitting in

cafés and watching people go by. b. Very high (wages / salary) is / are offered for working on oil

rigs or diving. c. Teachers are constantly complaining about their (wages /

salaries) d. Being a truck driver is not a / an (occupation / profession) for

someone who likes staying at home. e. In many countries the most lucrative (occupations /

professions) are medicine and the law. f. We offer occupational / professional advice. 2) Match the job titles with the job descriptions (a-j)

1. Auditor a. I specialise in advising on management reporting systems.

2. Bank manager b. I obtain and record financial records. 3. Accountant c. We build bridges. 4. Management consultant d. We examine and (usually) approve a

company's financial records. 5. Receptionist e. I receive and pay out money in a

bank. 6. Civil engineer f. I have about 500 patients on my list. 7. Sales representative g. I visit all my clients four or five

times a year to tell them about our latest products.

8. General practitioner h. I welcome and deal with people arriving in the office building.

9. Bank teller i. We are always ready to discuss lending possibilities with our clients.

10. Bookkeeper j. I draw up and check financial statements, calculate tax, and the unit cost of products.

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3) Match the form of revenue with the right recipient

1. commission a. retired employee 2. wage b. shareholders 3. salary c. sales representative 4. fees d. government 5. royalty e. blue-collar worker 6. redundancy pay f. student 7. tax g. financial adviser 8. grant h. author 9. pension i. laid off employee 10. dividend j. white-collar worker

4) Complete the sentences by rearranging the letters in

CAPITALS to form a word to do with work, as in the example.

Now he works form home, he doesn’t have to commute by train to and from Long Beach CMMOTUE

a. In Britain, the normal working week for _________-time

employees is anything up to eighteen hours a week, while people working ________-time do around thirty-eight hours. RPAT / LUFL

b. I have sent an _____________ form TPLIACAIOPN c. They are ___________ off 500 workers. AYGLIN d. Her academic __________ are good but she doesn’t have any

previous _________. FUNALIIOQCATIS / PEEERINCEX e. He works thirty-eight hours a week but sometimes with

_________ he does as many as fifty. TRVEOIME f. Nowadays many designers or IT specialists are __________ ;

in other words they sell their work or services to different companies. AERLENEFC.

g. Employers are interested in practical________ like word processing and fluency in foreign languages. LKILSS

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5) What’s the job?

Decide which job is being referred to in the following job advertisements. Choose the job from the list.

a. accountant b. clerk c. R&D Manager d. computer operator e. personnel officer f. advertising executive

1. Duties include filing, mailing, relief reception and other general office work. 2. Reporting directly to Managing Director. You will take over financial control for all aspects of daily operation. 3. You will be an essential member of an agency responsible for some of the country’s top accounts. You will be responsible for the administration of local and national promotion. 4. With particular responsibilities for recruitment and selection. Excellent communication skills needed. 5. You will be in charge of a team of highly creative individuals delivering new quality products and enhancing our existing range. 6. Some experience in C++ programming is essential but training will be given to the successful applicant.

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6) Complete the definitions by choosing the correct alternatives:

1. A manager who leaves a company earlier than planned may receive a

a. pay-in b. pay-off c. pay-down 2. If you move to another company, you a. joint it b. join it c. joist it 3. If you leave a company because you want to, you a. resignate b. rescind c. resign GRAMMAR

♦ ADJECTIVES AND ADVERBS ♦ Revising irregular comparisons good – better – the best bad – worse – the worst little – less – the least much – more – the most far – farther – the farthest ( of distance only) far – further – the furthest ( of distance and time) late – later – the latest ( the most recent) / last (the final one) old – older – the oldest ( of things and people) old – elder – the eldest ( comparisons within a family)

1) Fill in the blanks with the suitable forms of the adjectives

or adverbs in brackets:

a. (little) He seemed to get……….and ………interested in the job offer.

b. (much, good) The …………he worked the ………..results he obtained.

c. (soon, good) The ………….the rain stops the…… d. (few) There are ……….and….… mistakes in your exercise. e. (strong) The wind gets ……….and……….. f. (early, good) The ………we start the…. … g. (high, cold) The …we climbed the …it became.

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2) Choose the right adjective from the list given below and fill in the blanks:

frightened, cold, delicious, expensive, friendly, smart, electric, fresh, helpful, attractive, correct

a. The librarian proved to be very……….. b. She looks quite …………in her new dress. c. You can eat ……….food in this hypermarket. d. Have you bought an………….overcoat? e. The little boy was so ………..that he couldn’t speak a word.

3) Fill in the following sentences with the comparative or

superlative adjective given in brackets:

a. The bus I have come by today is much…….than the one I came by yesterday (fast)

b. We bought the ………….clothes we could find (thick). c. Tea is………than coffee in England (popular) d. What is the ………..city in your country (large) ♦ Adjectival word order

opinion – size/age/shape-colour- origin- pattern/material- noun

4) Decide on the correct adjective order for each of the

items below:

a. striped / jeans / she / is / tight / wearing b. lawyer / Armenian / clever /a / middle-aged c. a (an) / Dutch / attractive / girl / 23-year-old d. a (an) / leather / wears / he / long / coat / black e. box / silver / interesting / small / a (an) f. gingery-brown / hair / long / wavy / has / Amelia

♦ Adverb position: manner – place – time

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5) Decide on the correct adverb order

a. They negotiated ( for five hours / aggressively) b. John read ( at home / very much / all day yesterday) c. My friend spoke to me ( in the street / very kindly / the day

before yesterday) 6) Choose the right adjective or adverb to fill in the

following sentences:

a. Everybody felt……..(happy, happily) b. George is the best student in class. He studies………(hard,

hardly) c. Jane speaks so ……..that I can’t understand her. (fast, fastly) d. The food smells …….(nice, nicely) e. She smelled the food ……(careful, carefully) f. You look ………(sad, sadly) g. Some of us did the exercise very……… (good, well) h. The students worked very ……………..(carefully, careful) i. Yes, she said……….. (soft, softly) j. Drive ……….! Don’t walk so ……..(slowly, slow) k. Business is ………..(slow, slowly) l. Your can solve this problem………... (easy, easily) 7) What are the possible opposites of the words ‘hard’,

‘high’ and “good” in these phrases?

a. Hard exam b. High price c. High-rise building d. Hard drugs e. High opinion f. Good performance

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8) Which collocation (word partnership) is more likely?

a. big detail / great detail b. strong tea / powerful tea c. a lengthy car / a lengthy meeting d. strong car / powerful car e. broad summary / wide summary 9) What adjectives can be derived from the following?

a. occupation b. skill c. manager d. clerk e. profit

♦ Expressing similarities and differences :

(Affirmative and negative agreement)

so do I / I did too neither do I/ I don’t either etc. 10) Read the statements made by several speakers and agree

with them, using so or neither.

a. Our company directors have awarded themselves huge pay rises (US pay raises)……………

b. I don’t like to do overtime. ………………. c. We went to the meeting yesterday….. d. I’m tired…………… e. I can’t stand waiting in the airports……………. f. I’ll be going to the meeting………….. g. I’d prefer to do it myself…….. 11) Choose the correct answer (Affirmative agreement)

Technically, glass is a mineral and _____________ a. Water so b. Water is so c. So is water d. So water is

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12) Suppose you are writing a cover letter to apply for a job. Pick up four adjectives that best describe you. Then write four sentences that describe your qualities. (Do not include the four adjectives in your sentences).

e.g. I always think of other people’s opinions before making decisions (considerate)

reliable determined fluent confident sociable flexible organised convincing considerate tidy competitive balanced successful

SPEAKING ♦ Most people think they are overworked and underpaid.

What’s your opinion?

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UNIT 3

SOCIALISING IN BUSINESS Business people have to talk not only on the actual aspects of the

business, but also in a variety of social situations, while travelling abroad or receiving visitors.

At an international fair

A: How do you do? My name is Charles Stevens. B: How do you do? I’m Diana Nicolae. A: Nice to meet you…So, you’re with…. B: Sorry? Oh, you mean….I’m with the Global Telecommunications. A: Oh, really! B: You seem to have heard of us…. A: Sure I have. Global Networks…Global Mobile Phones … You’re a multinational, aren’t you? B: You’ve got it quite right. I’m the Finance Manager of the Romanian Branch. A: You are?! B: Well, yes, actually. I’ve been with them ever since I graduated seven years ago. A: That sounds like a perfect example of company loyalty. B: I’d say so, too. And you? A: Well… I’ve been with mine for nearly … two years now. B: What is your company, by the way? A: Oh, I work for a firm of car engine manufacturers. Best Motors Ltd., we’re called. We produce and install machine parts, mostly for British motorcars. Let me give you my card. B: Thank you… and here’s mine. A: Thank you. B: …So, you’re Area Sales Manager.

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A: Yes, I used to work as an editor for a racing car magazine before. I prefer what I’m doing now, I must say. I meet all kinds of people…I like that…I enjoy the driving, too. I’m always happy to get out of the office. B: I take it you travel around a lot. A: That’s right. You see, we’re based in Bristol, but we’ve got branch offices all over Britain…Is your head office here in Bucharest, by the way? B: Well, no actually. We’re in Arad – that’s in western Romania -… but I work in our Bucharest office. A: That’s interesting… So, what’s it like to be with a huge multinational? You’re pretty big, aren’t you? B: Well… I’d say so. Our branch alone has a turnover of… roundabout € 20m. And we’ve got a workforce of over…1,000… A: Ah, that’s a lot. B: Yes, you can call us big. A: Indeed, it’s really big. My company’s much smaller. Our total turnover’s just over € 5m. B: I see. And … how about your staff? A: Our staff? Yes, I’d say about 80 people, maybe 90, that’s full-time staff. We’re a private company, by the way. But I reckon the firm is doing quite well so I expect we’ll go public in a year or so’s time. B: Really? That’s most interesting. We’re a public company, of course. We have been so for the last 10 years.

READING COMPREHENSION A. Read the conversation again and mark the phrases used

by the characters to express the aspects mentioned below: a.introducing themselves b. responding to introductions c. saying what their company is d. saying what the company's line of business is

e. describing company size f. giving other details about the company g. summarising their career to date

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h. speaking of their present job/responsibilities B. Match each phrase with one of the topics given in the

exercise above. There may be more than one phrase for each topic. 1. I work for Best Motors Limited. 2. I dea1 with. Customer comp1aints. 3. I’m Sales Manager. 4. I’m with Global Telecommunications. 5. We deal in mobile phones. 6. We employ around 300 people. 7. My company's based in 8. We produce spare parts for the car

industry. 9. I’ve worked for this company for 5 years. Before joining it... 10. Our head office/headquarters is in... 11. I’m responsible for marketing strategies. 12. Our turnover is Sm Euro. 13. We have subsidiaries in... 14. We've got a work-force ofnearly 500. VOCABULARY DEVELOPMENT 1. Write one or more words into each gap to complete this

dialoque:

Example: Pleased to… meet…. you.

Receptionist: Good afternoon. ..1…. I help you? Charles Stevens: Good afternoon. My name is Charles Stevens. I’m ….2… Best Motors Ltd. I …..3… an appointment with Mary Taylor at 2 o’clock. Receptionist: Ah yes.Take a seat, please. Mrs Taylor….4…be with you in a moment, Mr Stevens. Mrs Taylor: Good afternoon, Mr Stevens. I’m Mary Taylor. Pleased to meet you. Charles Stevens:…………5…, Mrs Taylor. Mrs Taylor: Welcome to our company……………..6 a good trip? Charles Stevens: Oh yes, it was fine thanks. Mrs Taylor:……7…. a cup of coffee before we start?

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Charles Stevens: Thanks very much, that would be nice. Mrs Taylor: ….8….1 milk and sugar? Charles Stevens: Just sugar, please.

2. Choose the best word or phrase from the list below to

complete the extract.

Charles Stevens…9…for Best Motors in the Sales Department. He…10…in the company for three years now. He enjoys the job, although he spends…11…time on the road visiting customers from all over Britain. Sometimes he travels hundreds of miles in a day. Last week, he …12….more than 2,000 miles. If he …13…make a long trip, he usually stays overnight in a hotel. His wife complains that he spends too …14…….time at home.

9. a) work b) works c) is working d) is worked 10. a) is b) was c) has been d) had been 11. a) many b) a lot of c) few d) quite much 12. a) drive b) drove c) has driven d) drived 13. a) would have to b) will have to c) had to d) has to 14. a) little b) few c) short d) less

3. Match the following most likely conversational topics with

the appropriate suggested questions:

1. the journey a. Did you have a good flight? 2. plans b. How long are you going to be here?

previous 3. visits c. Whereabouts in Britain do you live? 4. visitor’s country/town d. How do you find our climate? 5. the weather e. Is this your first visit to Romania? 6. accommodation f. Where are you staying?

g. How was your trip here? h. Have you been to Bucharest before? i. Which part of France are you from? j. What was the weather like when you

left London?

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4. Match the questions with the appropriate reply from those listed below:

1) Do you have to travel a lot on business, Ann? 2) How well do you know London, Robert? 3) You’re from Bucharest, aren’t you? 4) You live in London, don’t you? 5) How’s the hotel? I’ve heard it’s very good. 6) How are you enjoying your stay in London? 7) Have you ever been to Romania?

a) Yes, that’s right. I’ve got a small house in the suburbs. b) Yes, it’s fine. Very comfortable. Great service, too. c) Not very much, a couple of times a year, mostly to Eastern Europe. d) Yes, I was on holiday near Sinaia last summer. I enjoyed it very much. e) No, I come from the north of the country, a city called Iaşi . f) Very much. It’s a beautiful city and not at all as foggy as I imagined. g) Not at all. It’s my first time here.

5. The conversation below takes place at a sales conference.

Complete it with appropriate phrases from the list.

A: Frank!………....1! B: Hello, Pamela………….2? A:………..…3, thanks. B:Pamela,…………4 Robert Smith from the European Headquarters? A:Hello!………..5! C:………………….6! B:…………….7 in the new Portuguese project. A: That’s right. We’ll be working together on that. C: Perhaps we could meet and talk about it later. Right now ………...8. A: OK……………………...9 this afternoon? C: Yes,…………………….10.

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a) Nice to meet you. b) Nice to meet you, too. c) How nice to see you again. d) How are you? e) I’m fine. f) That would be good. g) I’m afraid I have to go to a meeting. h) Maybe we could meet. i) I think you both have an interest. j) Can I introduce

6. Read these short extracts from different conversations.

In each one someone is telling a visitor about their country. Which ones are talking about:

1. a festival? 2. the climate? 3. natural resources? 4. politics? 5. the economy? 6. the tax laws? 7. a local drink? 8. a national sport? 9. the currency? a. There are a hundred öre to the krone and each krone is worth around l0p. b. Our biggest problem is the balance of payments. There’s a huge deficit. c. In spring, when the cherry blossoms are out, hundreds of people gather under the trees for picnics. d. You have to be careful it doesn’t burn your throat. Some people put it in the deep freeze for a while, so it’s cold when they swallow it. e. The rate you pay depends on how much you earn. f. We’ve just changed from a proportional representation system to a first past the post system. So instead of working out the total votes cast for each party, we count up the votes in each constituency and the winner is elected.

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g. You have to wrap up really warm. Minus 10 or 15 degrees is quite common, so you need a hat that covers your ears. h. You have a puck and you have to try and hit it into the other team’s goal. i. There are the mountains of course. We have a few copper and tin mines, but that’s all in the way of minerals.

7. Social Quiz

Do you know what to say on social occasions? Choose the best word or phrase for these situations.

1. What would you say to someone on their 27th birthday?

a. Congratulations. b. Happy birthday. c. Joyous birthday. d. Happy anniversary.

2. The taxi fare is 8.30 Euro so you give the taxi driver 10 Euro. What do you say?

a. The tip is yours. b. The change is yours. c. Keep the tip. d. Keep the change.

3. You didn’t hear what someone said. What do you say?

a. I apologize. b. Please repeat. c. I didn’t hear. d. Sorry? 4. You want to attract a waiter’s attention in a restaurant. What do you say?

a. Waiter! b. Sir! c. Over here! d. Come, please! 5. Your colleague tells you he can’t come to your party . What do you say?

a. How shameful! b. I don’t care. c. What a pity! d. You don’t matter.

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6. Your English client says, ‘I’ll get the first round’. Where are you?

a. At a boxing match. b. On a golf course. c. In a pub. d. In a car. 7. The person you are playing golf with has just missed a shot. What do you say?

a. Good luck. b. Bad luck. c. Bad chance. d. Sorry. 8. The person you are playing golf with has just made a good shot. What do you say?

a. Good shot! b. Good chance! c. Well shot! d. Good luck! 9.You meet an old friend at a conference. She says, ”Lovely to see you. How are things?” What do you say?

a. How do you do? b. Very well, thank you. c. Fine, thanks. d. Good.

8. Match each comment with a suitable reply:

1.We’ve just won that large contract with ICI. 2. Here, let me pay. 3. Our sales manager is in hospital. 4. It’s not good news. They say they might have to make me redundant. 5. I’m just off to my interview. 6. I’m so sorry we’re late. 7. Do have a seat. 8. Would you mind waiting for a moment? 9. Thank you very much. 10. It’s been a lovely party but I’m afraid I must be going. a. Good luck! b. It’s a pleasure. c. No, please, I insist. Dinner is on me.

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d. What a pity! Lovely to see you anyway. e. Congratulations! f. No, not at all. g. I am sorry. Bad luck! h. That’s all right. We haven’t started yet. i. Thank you. j. Oh dear! Nothing serious I hope.

9. Match the sentence on the left with the response on the right

1. Sarah is getting married in the spring, a) It was my pleasure. 2. Thanks for the ride. b) Fine, thanks. 3. How do you do? c)Wow! 4. How’re you doing? d) No, it’s true, I assure

you. 5. I’ll get another round of beers. e) Yeah, take care. 6. Thank you for a wonderful time. f) No, this one’s on me. 7. Here’s to a successful partnership! g) Any time. 8. We made over a million bucks in five days.

h) How do you do?

9. You’re joking! i) Congratulations. 10. Bye then. j) Cheers! 11. Thank you very much indeed. k) Spain 12. Can you speak German? l) Sorry, I don’t smoke. 13. Do you know Mr Davis? m) You’re welcome. 14. Where do you come from? n) Yes, we met last week. 15. You haven’t got a light, have you? o) Just a few words.

10. Choose one of the accompanying phrases to thank your host.

Situations a) While on a business trip, some foreign friends invited your delegation over for a drink.

b) A colleague has bought you coffee. c) A potential customer you have been visiting has invited you to dinner at a country club. d) You have spent ten weeks running an English course for a company’s staff in Bucharest. The people have been quite friendly and invited you to a farewell reception.

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e) While in London, your business associates arranged for you to see a performance at the Albert Hall. f) The Sales Manager of a company you do business with has taken you to the theatre to see a comedy.

Phrases of thanks: 1. Thank you for getting me a ticket. 2. It was most kind of you to invite us over. 3. It was very nice of you to invite me. I always enjoy a good laugh. 4. Thanks, Roy. 5. Thank you for all your hospitality. I really appreciate it. 6. Thank you very much for the meal. 11. Fill in with a necessary word/phrase to express thanks:

a) Mr Smith is thanking an airline clerk for flight information for his summer holiday. Mr Smith“Thank you for the information. Airline Clerk:“You’re…” b) Mr Williams is thanking an elderly lady for a lift back to his office. Mr Williams: “See you tomorrow madam, and thanks for the lift. I hope it hasn’t taken you out of your way. Mrs. Jones: “That’s ... I live quite near anyhow.” 12. Read the six expressions of thanks below and match them

with one of the sentences on the right.

a) Thanks for the coffee. 1) That’s okay/all right. b) I did enjoy the performance. It was really excellent.

2) You’re welcome.

c) I think we’ve got all the details now. Thanks for the information.

3) Really, it was no trouble.

d) Thanks for everything. You’ve been very helpful.

4) Good. I’m glad you liked it.

e) Thank you very much for finding out about the shipping charges.

5) Don’t mention it.

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SPEAKING Over to you

Decide which would be the most appropriate way of greeting people in each of the following situations:

a. A trade delegation from Japan is visiting your company. As Public Relations Officer, you have been asked to look after them. Greet the visitors, then introduce yourself and state your position in the company.

b. You have made appointments to meet a financial expert on two previous occasions, but something has always gone wrong. Finally you meet.

c. Someone has just arrived in your department to do a one-week computer training course.

d. You are meeting Mary Perkins, a customer from Britain, at the airport. She’ s going to spend a couple of days in your company. Identify yourself and your company.

e. A new colleague has just arrived at the office. Greet him/her and introduce yourself and your other colleagues.

GRAMMAR Questions Subject-Predicate Order in Questions Direct Questions Aux+Subject +verb? Indirect Questions (I wonder if/what/where) Subject+verb Indirect Questions are generally used when some sort of

difficulty is involved: we don’t know the person we’re talking to, or we need to be polite. In a series of questions, we start with an indirect question to establish politeness, then we ask direct, usually shorter questions. When a lot of questions are asked, using varied question types is advisable.

Questions may be Yes/No ones (using an auxiliary as the first word, requiring a positive or negative answer), open ones (with a question word before the auxiliary), with who, what or which as

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subject (an auxiliary is not used). Tag questions are used when we expect the speaker to confirm what we are saying or when making an offer, suggestion. They are formed using an auxiliary and the pronoun referring to the subject.

1. Ask questions to the words in italics:

a) We worked with an important customer. b) I’m interested in the new project. c) The manager invited Michael to visit the company. d) The divisional director complimented Daniel on his organisation e) Two hundred people visited the plant. 2. Tag Questions

Fill in the blanks with the right positive or negative question tag: a) You finished all your tests in time,…………? b) He isn’t quite a nice guy, …………….? c) The train arrives at 6.30 p.m.,……….? d) You will call me as soon as you arrive,………..? e) Catherine left on a trip to Paris last summer, ………..? f) I’m not intruding, I hope,…………? g) You aren’t too enthusiastic about my idea,…………? h) Janice was going to revise the estimates,………..? i) She said she would talk to Bill about it,………….? j) Bill wanted to change the procedure, …………….? k) Let’s call up a meeting on Monday morning,………?

WRITING

1. Customer’s Personal Letters Match the type of letter with the excerpts below: 1. Congratulatory letter 2. Referral 3. Invitation 4. Thank-you letter

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a) Dear Professor Harrold, Three senior editors from Herald Business will serve on a panel at a special luncheon, June, 2nd, at noon in the Japanese suite of the Palace Hotel. We’d like you to join us. These gentlemen will be giving their informed views on the business outlook and tax reform. I’ll look forward to meeting you there.

Yours faithfully, Charles Sherman

b) Dear Mr. Markinson, Thank you for your letter requesting information about financial planning. I’m sorry to say that we have not yet added that kind of service to our firm. But I recommend you IM Consult, an organization I consider among the best in the field, highly knowledgeable in investment strategies. I suggest you give Mr. Davidson a call for the help you requested in your letter.

Yours truly, Tom Beadley

c) Dear Mr. Lawrence, I certainly enjoyed reading the April 21st “Financial Times” article on your fast-developing company. Such coverage renders the company’s achievements and objectives for future products.

Sincerely, ………..

d) Dear Mr. Atkins, I am writing to thank you for your kind hospitality during my visit to your company. I was impressed by the high quality standards that you maintain. It was thoughtful of you to give up so much of your time. You have a good range of fashion items and I am certainly hoping to be able to place an order with you in the near future.However, I must first wait for my company to finalise the purchasing plan for the next quarter.

I will be in contact with you again as soon as I can. Yours sincerely, ………………..

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UNIT 4

HOBBIES AND INTERESTS Hobbies are spare-time recreational activities. They have their

origin in the Middle Ages, when falconry was a very popular leisure activity (what today might be called a hobby), and of all the different birds used for it, the Euroasian Hobby was perhaps the most popular. It is said that the modern use of „hobby“ to indicate a pastime followed from this.

An alternative explanation is that the usage grew from another recreational animal called hobby, which was a type of small ambling horse. A hobby-horse was a wooden or wickerwood toy made to be ridden just like the real hobby. From this derived the expression „to ride one’s hobby-horse“, meaning „to follow a favourite pastime“, and in turn, hobby in the modern sense of recreation.

Hobbies are practised for interest and enjoyment rather than financial reward. Examples include collecting, making different objects, sports, etc. Engaging in a hobby can lead to acquiring substantial skill, knowledge, and experience. However, personal fulfilment is the aim.

Activities that are hobbies for some people are professions for others: a professional photographer may enjoy cooking as a hobby, while a professional chef might enjoy taking photographs as a hobby. Generally speaking, the person who does something for fun, not remuneration, is called an amateur (or hobbyist), as distinct from a professional.

Almost no one can make a living by collecting stamps, but many find it enjoyable; so it is commonly regarded as a hobby.

While some hobbies are considered by many people trivial or boring, hobbyists have found something compelling and entertaining about them.

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Pursuit of a hobby may have calming and helpful therapeutic side-effects. In some cases, however (for example in collecting), the line between a hobby and an obsession can become blurred. There is more than one recorded case of violence over things as simple as coin collecting.

(adapted from Ann Huxley,History and Present in Hobbies, Edition Laurel,1984)

Reading comprehension 1. Read the text again and specify whether the following

statements are true or false:

a. In the Middle Ages, falconry was a very popular leisure activity.

T/F

b. The modern meaning of hobby is profession. T/F c. Hobbies are practised for interest and enjoyment. T/F d. We don’t learn anything from having a hobby. T/F e. A hobbyist is a person who does something for fun. T/F f. Hobbies are boring and unimportant activities. T/F g. Hobbies can become obsessive and lead to acts of violence. T/F h. “To ride one’s hobby-horse” means to ride a horse received

as a gift. T/F

2. Choose the words and phrases most similar in meaning to

the following as used in the reading passage:

1.alternative: a. atypical b. another c. optional d. distinct 2.enjoyment: a. entertainment b. relaxation c. satisfaction d. gladness 3.engage: a. participate b. commit c. employ d. go in for 4.skill: a. aptitude b. ability c. know-how d. technique 5. trivial: a. meaningless b. frivolous c. unimportant d. irrelevant 6. compelling: a. necessary b. attractive c. exciting d. provocative7. blurred: a. indistinct b. obscure c. confused d. vague

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VOCABULARY DEVELOPMENT 1. Match the words and phrases in column (A) to the right

explanation in column (B), then use them to fill the blanks in the sentences below:

I.

(A) (B) 1.spare time a. a horse walking at a slow, easy pace. 2.leisure activity b. money given for a service or merit. 3.ambling horse c. personal development 4.side-effects d. time not needed for work; extra time 5. financial reward e. to earn one’s living by 6. personal fulfilment f. activity done during a time that is free

from work 7. make a living by g. the breeding and training of hawks 8. falconry h. secondary (usually less desirable)

effects II. a. They played football and considered it a......................activity.

b. He decided to make miniature figures and.....................by selling them.

c. They had a small..................for their daughter to learn to drive. d. She didn’t expect any..................., she did it with the greatest

pleasure. e. During his..................he was fond of listening to music. f. She didn’t know that the medicine had................... g. The aim of hobbies is generally................................ h. Bored and without any occupation he took to......................

2. Complete the following text with the right prepositions:

A hobby store is a place dedicated.........the selling............things that people usually employ...........their personal satisfaction. Hobby stores are particularly popular..........men and children, less so...........women, although many hobby stores today cater........women’s interests, too.

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Typical items to be found.......hobby stores include airplane models, train models, ship models, house models, dolls, coins, stamps, specialty magazines and sometimes even flowers and small animals. A specific type ......a hobby store is a game store.

3. Here are some eponyms in sports, i.e. sports terms named

after people. Specify to which sports they refer and complete the sentences:

Tsukahara – after Mitsuo Tsukahara (Japan) Axel – after Axel Paulsen(Norway) Lutz – after Alois Lutz (Austria)) Biellmann – after Denise Biellmann (Switzerland) Davis – after Dwight F. Davis Frances Pomeroy after James Naismith’s daughter-in-law Frances Pomeroy Naismith(USA)

a. Her...............jump made the audience applaud frentically. b. She was such a perfect gymnast that her..............vault was worth a gold medal. c. In skating contests, a..............jump and a..........spin are compulsory. d. It’s the first time our basketball team has been given the.................Award. e. Being the best tennisman in the world, he won the ...........Cup. Remember:

Play = refers to sports played with a ball and where teams are involved Go = refers to individual and leisure activities Do = refers to sports or activities where body movements are implied 4. Complete the following sentences with Play, Go, Do:

E.g. My best friend likes Doing judo, Going skiing in winter and PLAYING bowls with his friends.

a. All little girls are fond of..............ballet. b. Are you looking forward to..............fishing next weekend?

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c. He gave up...........hockey with his broken arm. d. She took to.........jogging as she was getting fat. e. I feel like..........football with my friends this weekend. f. What about.........diving, the weather is very fine. g. She put off........fitness as she was very busy. h. She preferred.........gymnastics to............snooker. 5. Fill in the blanks in the following text with the words below:

Letter Manuscripts Prices Collectors Signed Photographs Signatures Auction To Pay Today,........are prepared ........ever-increasing..........for coveted

hand-written autographs and...........letters or......., not just scrawled...........on............or slips of paper. A letter written by Charles Dickens could be bought for 1 pound in 1903; today it is worth £ 600 at an ........

GRAMMAR Modal verbs

Can/could express present and past ability (was able to or managed to are used when speaking about more specific actions; be able to is used for infinitive, future and present perfect)

1. Use modal verbs to express ability:

a. He is very persuasive, he...........make his team mates adopt his opinion.

b. After a few months of training after the accident, she........skate well again.

c. You’ve put too much in your bag, you ...........to carry it. d. They had a very successful meeting and they..........make the

Olympic Board agree to a 60% discount. e. I knew the town very well so I..........advise them what to visit. f. The injured football player.............to walk in a few weeks.

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May/might, can/could to express permission (allow or permit supply past and future tenses ; can used for permission is an informal alternative to may ; could is more polite)

2. In the following sentences, use modal verbs to express

permission:

a. He.............to drive the family car ever since he was sixteen. b. ........I use your phone? Mine is out of order. c. On weekdays we had to get up early but on Sundays we.......stay in bed till ten. d. I don’t know what to answer. I make a suggestion? e. ........fill in this application form for me? f. ........I see your passports, please? May/might = to grant, refuse or request permission, and to

express possibility in the present or future (you can, one can are also used to express possibility, but in a different way : you can = it is possible = circumstances permit)

3. Use modal verbs in the following sentences:

a. Take your coat, it............rain on the sports ground. b. Candidates .........not bring textbooks into the examination room. c. I think I left my bag in your office. .....I ask your secretary to look for it for me? d. They sacrificed their lives so that we..........live free. e. You.........ski on the hils. There is enough snow. Must and have to express positive obligation (have to expresses an

external obligation), needn’t, don’t have to express lack of obligation, and mustn’t, can’t, (be) not allowed to express prohibition.

4. Use modal verbs to express obligation or prohibition:

a. As you are from the European Union, you.............have a visa to go to Germany. b. You.............write more than 250 words on this subject.

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c. I’m sorry, but we............give the results by phone. d. Drivers wishing to hire a car............be over 21 and have a

full driving licence. e. She...........leave home at 8.00 every morning at present, given

her new job. f. I can’t support you any longer; you............earn your own

living from now on. Can’t/couldn’t + perfect infinitive express negative deduction

and reproach; may/might + perfect infinitive express speculations about the past; must + perfect infinitive expresses affirmative deductions; needn’t + perfect infinitive = a past action which was unnecessary but was performed.

5. Use modal verbs + perfect infinitive to express deductions,

reproach, speculations, past unnecessary performed actions:

a. He had his umbrella in the morning, but he hasn’t got it now. He.......(leave) it in a shop. b. He............(escape) by this window because it is not locked. c. You..........(warn) me about his arrival. You know I don’t want to see him. d. I think he swam across the river. No, he........(do) that; he can’t swim. e. I spoke French very slowly. You............(speak) slowly. He speaks French fluently. f. I don’t remember reading about it in the newspapers. I............(be) abroad at the time. Opinions and advice Should, ought to = advice, must =strong advice, had better =

strong opinion, would rather = preference 6. Fill in the blanks with modal verbs to express opinions

and advice:

a. You are really ill, you.............go to the doctor. b. I..............not interrupt him while he’s speaking on the phone.

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c. I can’t tell you what to do, you...........speak to your boss. d. You............go and and visit your parents immediately. e. I............go abroad during my holidays than stay at home. f. You..................keep an account of all your expenses. SPEAKING

1. Try to ascertain the difference between an interest and a hobby.

2. Speculate about going deeper into the matter, what do you think of being more scientific between an interest and a hobby, what do you think of people who go beyond all bounds in a hobby and reach the field of a profession, and give examples.

3. Speak about the closeness of art and sport and how it is revealed by the nature of the Olympic Games which, as we know, are celebrations of both sporting and artistic achievements.

4. Speak about “sportsmanship” and how this concept is reflected in what a journalist once said : “it’s not that you won or lost but how you played the game”.

5. Comment the creed expressed by the founder of the Modern Olympic Games, Pierre de Coubertin : “The most important thing is not winning but taking part”.

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Unit 5

OBTAINING INFORMATION: TELEPHONING

A: Fenton Engineering. B: Extension 273, please. A: I’m afraid the line’s engaged. Will you hold? B: Yes. A: The line’s free now. I’ll put you through. B: Thank you. C: Travel agency. B: I’d like to speak to Mrs Isaacs. C: Who’s calling, please? B: Jacques Duvil. C: Hold on, M Duvil. I’ll get her. C: I’m afraid she’s in a meeting. Do you want to call back later? B: No, it’s urgent. Could you take a message? C: Yes, of course. B: Could you ask her to call me back? C: Does she have your number? B: No. It’s Paris – the code is 00 331 then the number is 45458394. Could you read that back to me? C: 00 331 45458394. B: That’s right. C: Anything else? B: No, that’s all. Thank you very much. C: You’re welcome. B: Goodbye.

READING COMPREHENSION

I. Answer the following questions:

a. What exactly did each person say when answering the phone?

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b. How did the company secretary tell the caller he couldn't speak to the person he wanted?

c. What did the company secretary suggest? d. What did Jacques Duvil say when he round out Mrs. Isaacs

was in a meeting?

VOCABULARY DEVELOPMENT

1.Telephone language

Look at these expressions which are often heard or used when telephoning. Decide which are from recorded messages and mark them with X.

1. Sorry to keep you waiting. 2. Heathrow Travel. Christine speaking. How may I help you? 3. I’ll get him to call you back as soon as possible. 4. Hold on a moment and I’ll put you through. 5. Could you put me through to the accounts department, please? 6. Could you speak up a little? 7. We are unable to take your call at the present time. Please

leave your name and number after the tone. 8. This is the Australian Embassy visa information line. The

consulate section is open every morning from 10 o’clock to 13 o’clock.

2. Taking someone’s name

Write the names of the people in the blanks. 1. My name’s………….. I’ll spell that for you — gee are ay

aitch ay em new word aitch you gee a itch ee es. 2. My name’s…………, that’s jay eh en i see ee new word why

oh you en gee. 3. Which phrases are most appropriate in a telephone

conversation? Mark all the acceptable ones in each set

1. a) James Watt’s office. Good afternoon. b) James Watt’s office. Can I help you? c) James Watt’s office. What do you want? d) James Watt’s office.

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2. a) Could I speak to James Watt, please? b) I must speak to James Watt. c) Give me James Watt. d) Can I speak with James Watt, please? 3. a) He’s not here. b)Who are you? c) Sorry, you can’t. d) I’m afraid he’s not in the office at the moment. 4. a) Oh, could I leave a message then please? b) Give him a message, will you? c) Would it be possible to give him a message? d) Well, could you ask him to call me back? 5. a) Certainly. b) Yes, that’s no problem. c) What’s your message? d) What’s your name? e) Yes. Who’s calling please?

4. A phone conversation

Number this jumbled conversation in the correct order. The first one has been done for you:

… I’ll sign them this afternoon and send them back to you. … Hello. My name’s Betty Green. I’d like to speak to Katie Stevens, please. … 1. Good morning. HMV Industries. How may I help you? … Hold the line, please. I’ll see if she’s in. … Great. Thanks a lot. … (pause) Hello. Katie Stevens speaking. … Betty Green and I’d like to speak to Katie . … Hello, this is Betty. … Sorry, I didn’t quite catch that. … Hi, Betty. How are you doing? … OK. Busy as usual. … Fine, thanks. And you? … Yes, they came this morning but I haven’t signed them yet.

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… I’m just ringing to find out if you’ve received the copies of the contract. … OK, there’s no rush.

5. Complete the following conversations with phrases from

the list below. Use each phrase only once

a………………………………………………. Good morning. Could I speak to Mr Dennis please?

b………………………………………… Lesley Lewis from RB Manufacturers. c. Oh, hello, John. How are things? …………………………………….

d………………………………….. Yes, hold the line and I’ll put you through to him.

e…………………………………… OK.Could you ring me back today?

f. I’m afraid he’s out of the office at the moment. ………………………………………..

g……………………………………… I’ll look it up for you... It’s 01 320 6745. 1) Fine. I’m phoning to ask you about the Woodrow Group. 2) Who’s calling, please? 3) I can’t tell you right now, but can look into it. 4) Thompson Chemicals, good morning. 5) Right. I’ll ring again. Thanks a lot. 6) I’m afraid I haven’t got Steve Lester’s number. 7) Could I speak to Charles Williams?

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6. Here are some dialogues about fixing an appointment. Fill in the missing words and phrases, choosing from those listed below. (Two of the expressions are not used) 1. A: Hello. I’d like to __________________ with Mrs Rush in the Personnel Department. My name is Sydney Jones. B: Yes, Mr Jones. Would 10.30 on Wednesday ? A: That ___________ thank you.

2. A:Mr Smith? This is Tom Ronalds. B:Oh, hello, Mr Ronalds. Nice to hear from you. A:______________to see if we can discuss a business proposition that I wish to make. B:I see. Can you be more specific?

A:Actually, _______________ we could meet somewhere and talk about it. How about lunch today, if that’s ___________________ B:I’m afraid _______________ today. How about tomorrow? A:Tomorrow’ll be fine. Let’s say 12.30 at the French restaurant, shall we? B:Yes, 12.30’s OK. See you there. A:Right. ________________ seeing you. Goodbye.

3. A:Mr Russell? B:Oh, good morning, Mr Higgins. A:I’m ringing _____________ tomorrow. 2.15 at your office, as arranged? B:2.15. That’s right. A:Good. See you then. Goodbye. 4. A:Hello? Mr Murray? I’m ringing for Mr Durham of Durham and Associates. He’s_______________ but he won’t be able to manage Wednesday afternoon. Friday afternoon instead?

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B:__________my diary. I’m afraid I can’t _____________. I have somecustomers visiting then.________change our meeeting to Thursday afternoon? A: Well, I think that should be all right, _______________ later on to confirm. Thank you. Goodbye.

a.very sorry j. very busy b.I’m phoning k. I wonder if c.make an appointment l. I look forward to d.I can’t manage m. see you e.all right with you n. to confirm our meeting f. Let me just get o. suit you g. make it on Friday p. I give you a call h. Perhaps we could q. Could I suggest i. would be fine r. This is Jim Higgins

♦ Phrasal verbs 7. English has a lot of phrasal verbs — verbs that are combined

with prepositions to form new verbs with new meanings. Complete the sentences below with phrasal verbs. Choose a word from each column:

pin on is out put off put off pencil forward draw up look in tied with bear up put through come down

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Example:Good morning. Could you put me through to extension 253, please?

1. I’ve been trying to arrange a meeting with Mrs Carter for weeks but she’s a difficult woman to ________________

2. I’m afraid I can’t make this afternoon’s meeting. Something urgent has _______

3. Shall we ____________ next Tuesday? I’ll check that I’m free with my secretary and give you a ring to confirm.

4.Tomorrow’s meeting ______________. Everyone seems to be too busy doing other things.

5. That’s settled then. I ______________to seeing you on the 15th.

6. Are you sure it’s convenient? I know you’re very busy and I don’t want to _______ you ________.

7. I think Mr Lee’s number has been changed. Could you ________________ me a moment and I’ll find the new list.

8.We only have a few permanent staff but there are a lot of freelance designers and consultants we can ________________ if we need ideas and advice.

9. She asked me to tell you she’ll be late. She’s _____________ in a meeting with a client.

10. There’s an emergency at the Athens office. You’ll have to ____________ your trip to the States and fly out to it instead.

GRAMMAR

♦ The Present Tenses

Present Simple vs. Present Progressive

Form: Present Simple: verb+s (IIIrd ps.sg.) Present Progressive: aux. "to be” + verb-ing Present Simple is used for actions and situations which are

considered generally true, in order to present factual information, in

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summaries, headlines, timetables, for directions, instructions, with frequency adverbs (never, often, always, every), with a number of verbs (of perception, like and dislike, possession, being, mental states or performance ones, such as to “declare”, “to admit”, “to name”, ”to demand”, “to advise”, ”to apologise”). Present Progressive is used when talking about an event in progress at the moment of speaking, in order to describe ongoing projects, temporary situations, changes, arrangements and plans as well as repeated actions (with always).

E.g. Our company employs over 100,000 people. I never smoke at work. The legislation comes into force on 1st January. Mr. Branwell can’t see you now. He is interviewing someone. He’s working in New Zealand on a fixed-term contract. I’m seeing Mr Sykes tomorrow. I’m taking our client to the

best restaurant in town.

1. Read the following dialogue about travel arrangements. Make any necessary changes to the verbs in brackets.

Traveller: Hello, I ….(need) to go to London next Friday and come back on the same day. I’ve a meeting which ….. (start) at 11 o’clock.

Agent:……you…..(want) to fly or take the train? Traveller: That……… (depend) on the price. How much

……….. it………(cost)? Agent: The train………. (be) cheaper and…..(get) you right

into the centre of London. It (take) just three hours. Traveller: OK, that’s fine. What about times? Agent: Well, the Eurostar… (leave) Paris at 7.19 and… (arrive)

in London at 10.13 local time. Traveller: What time…I…(have to) check in? Agent: Not later than 20 minutes before departure. Traveller: OK, how…. (make) a reservation?

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2. Complete this dialogue appropriately, using verbs in the present progressive.

A Are you free next Wednesday? B No, sorry. I’m afraid I…1…. A Well, I can’t make it on Thursday so what about Friday? B In the morning I…2... but in the afternoon I…3. anything special. A Fine, that’s OK by me.

3. Present simple or present progressive?

Which of these ideas do you associate with the present simple and which with the present progressive ?

1. regular activities 6.permanent and factual situations 2. temporary situations 7.a present arrangement for the future 3. fixed timetables 8.mental states 4. giving instructions 9.trends and changing situations 5. an event in progress 10.doing by saying

4. Study these sentences and decide which example corresponds

to each of 1-10 above.

a) I’m replacing Bill because he’s off sick. b) The scheduled flight leaves next Monday at 8.15 from JFK. c) The technician is mending the photocopier so you can’t use it

right now. d) I’m seeing Bill Williams tomorrow afternoon, I’ve got it in

my diary. e) The conference room measures 162 square metres. f ) I admit there has been a mistake. g) I understand they have gone bankrupt. h) Enter code number, select menu, press OK. i) With the Internet the world is getting smaller. j) We have a planning meeting once a month.

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Present Perfect Simple vs. Present Perfect Progressive Form: Present Perfect Simple: have + IIIrd forme of the verb (past participe) Present Perfect Continuous: have + been + v-ing Present perfect simple is used when describing present results of

past actions, when talking about life experiences, announcing news, with expressions referring to “up to now”, with “for” and “since”, when referring to an event in the future after “when”, “as soon as”. Present Perfect Progressive is used when talking about actions in progress for a period until now, about the effect of recent events or about repeated actions.

E.g. This is the first time we have ever received a complaint. I’ve already talked to Cristopher about it. He has been manager of the company for two years. I’ve been reading your proposals. I’ve been trying to repair my car all afternoon. 5. Complete each of these sentences, using the present

perfect simple or progressive

a) How long (you / wait)? b) I (play) tennis four times this week. c) Look outside. It (rain); the pavement’s still wet. d) ‘You look tired”. I (drive) all day long.’ e) I (know) John since we were at school together. f) The government (announce) a drop in unemployment. g) I (read) a book on negotiating skills but I don’t think I’ll

finish it. h) He (work) as a consultant for three different firms in the same

sector of activity; I think there’s a conflict of interest and he should resign.

i) He (work) as a consultant for three different firms in the same sector of activity, but was fired from the first two.

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UNIT 6

HIGHER EDUCATION AND CAREERS: “SPIRU HARET” UNIVERSITY

“Spiru Haret” University-21st Century University- Established in

1991, today “Spiru Haret” University comprises 23 accredited faculties with over 43 specializations.

“Spiru Haret” University has a complex structure which reflects a diversity of specializations- from law, public administration and economic studies to architecture and veterinary medicine, from philosophy, journalism, sociology and psychology to history and international relations, from mathematics and informatics to drama, music and physical education. But the most important aspect is the fact that in terms of the content of studies, teaching methodology, the Faculties of “Spiru Haret” University have reached European standards .Students working for their first degree at our university are called undergraduates. When they take their degree we say that they graduate and then they are called graduates. If they continue studying at “Spiru Haret” University, after they have graduated, they are called Post- graduates.

“Spiru Haret” University has made investments of over one hundred million US dollars.

“Spiru Haret” has a highly-educated staff – the teaching quality at “Spiru Haret” relies, first of all, on the activity of highly dedicated professors with excellent methodological skills. Moreover, many of them are personalities well known nationally and internationally. Another aspect, just as important as the one mentioned above, is the fact that “Spiru Haret” has a permanent staff of professors, which ensures the continuity of teaching.

40 Postgraduate programmes – The quality of the academic staff, as well as the results obtained in teaching activities and scientific

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b) The University was founded in 1993. c) “Spiru Haret “ University has a complex structure which reflects a large diversity of specializations. d) The University organizes post-graduate studies for its alumni. e) “Spiru Haret” University has made investments of over one hundred million pounds. f) Besides traditional forms of teaching, the University has also introduced distance learning.

2) Answer the following questions about “Spiru Haret”

University:

a) How many accredited faculties and specializations does “Spiru Haret” University include today? b) What specializations does the structure of the University include? c) How can you describe the academic staff of the “Spiru Haret” University? d) What kind of Postgraduate programmes does the University organize for its alumni? e) How many Postgraduate programmes are organized by the University in the academic year 2005-2006? f) How can you describe the distance learning promoted by the “Spiru Haret” University?

3) a) Match the abbreviations on the left to the full form on

the right:

1) B Sc A. Doctor of Philosophy 2) BA B. Very Important Person 3) PhD C. Master of Arts 4) MA D. Bachelor of Arts 5) M Phil E. Master of Philosophy 6) VIP F. Bachelor in Science

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3) b) Can you write some more abbreviations and give their full form?

READING: HIGHER EDUCATION IN BRITAIN There are forty-seven universities in Britain and thirty

polytechnics, plus 350 colleges and institutes of higher education. Undergraduate courses normally take three years of full-time study, although a number of subjects take longer, including medicine, architecture and foreign languages (where courses include a year abroad). They lead in most cases to a Bachelor’s degree in Arts or Science (BA or BSc). Students of law, architecture and some other professions can take qualifications that are awarded by their own professional bodies instead of degrees. There are various postgraduate degrees, including Master of Arts or Philosophy (MA or MPhil) and Doctor of Philosophy (PhD). Universities accept students mainly on the basis of their “A” levels, although they may interview them as well. At present, students who have been accepted by Universities or other institutions of higher education receive a grant from their local authority, which covers the cost of the course, and may cover living expenses, books travel, although parents with higher incomes are expected to make a contribution. Before 1990 the grant was paid back, but since then a system of loans has been introduced.

(Adapted from Britain Explored, Longman, 1998) 4) Complete the chart. Then compare the educational system

in UK or the USA with the educational system in Romania:

UK USA Romania Courses Degrees Admission Tuition fees Concern

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GRAMMAR Tenses- part two: Past section (past tenses simple and continuous and past perfect) Read the following model and examples:

*The Past Tense Simple- an action finished in a specified past moment; e.g: I went to the University yesterday/ last week/ three days ago.

Past questions and Negatives : Did you go to the University yesterday?

Yes, I did/ No, I didn’t (short answers) I didn’t go to the University yesterday Regular Verbs: work-worked; try-tried,etc. Irregular Verbs: do-did; write-wrote, etc. 1) Use the following verbs to complete the sentences. Some of

the sentences are positive statements, some are negative, and some are questions. The first sentence has been done for you.

accept; complain; hire; place; realize; study; visit a) Oh, I’m sorry to disturb you. I didn’t realize you had a visitor. b) …….you…..economics when you were at the university? c) Last week a number of customers…..about slow service d) …….you…..the Acropolis when you were in Greece? e) I am writing with reference to the order. I…..with you last week f) At last year’s lunch party, who…you….to do the catering? 2) Complete the following passage by putting the verbs into

the Past Tense Simple. Pay attention to the Irregular Verbs. The first one has been done for you.

After the second World War, Akio Morita, co-founder of Sony (1), joined (join) forces with a friend, Masaru Ibuka. Both men (2)….(know) a great deal about telecommunications, so they (3)….(use) all their money, about 100 pounds, and (4)….(set) up a small engineering company, Tokyo Tsushin Kogyo. They (5)….(find) a small broken- down building to use as a laboratory in Tokyo. There

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(6)…..(be) so many holes in the roof that when it (7)….(rain), they (8)…..(have) to continue working under umbrellas.

Their first task (9)….(be) to decide what to make. They (10)….(not want) to make radios because of the competition from much larger companies. Instead, they (11)…..(decide) to create an entirely new product, a tape recorder. They (12)…..(succeed) in making a machine, but unfortunately they (13)…..(not have) any tape, and they (14)….(not know) how to produce it.

So they (15)….(start) to experiment, and (16)…(try) using a number of different materials. Finally, they (17)….(make) a breakthrough. They (18)….(cut) up strips of paper to make a reel, and (19)….(paint) them with a magnetic material that they (20)…(heat) on a frying pan in their small room. It (21)….(work), and they gradually (22)…(improve) the process. In 1950, they (23)….(begin) trying to sell their revolutionary machine.

And the rest is history! (Adapted from Oxford Business English- Grammar& Practice

by Michael Duckworth) * The Past Tense Continuous – an action taking place at a

certain past moment or interrupted by another past one; Subject +was/were+ verb+ the suffix-ing; e.g.: I was working at a new project at this time yesterday; or: He was writing his essay when the phone rang.

3) Choose the correct past tense form in the following sentences:

I (1) met/ was meeting an old business colleague of mine while I (2) travelled/ was travelling to New York for a conference. She (3) noticed/ was noticing me while I (4) stood/ was standing in the queue at the airport check-in desk. We decided to travel together, and while we (5) waited/ were waiting for the flight to leave, we (6) realized/ were realizing that we were going to the same conference and staying at the same hotel. We talked about old times, and while we (7) had/ were having lunch on the plane, she (8) said/ was saying that she was going to look for a new job. I didn’t think of it at the time, but later on when the plane (9) came/ was coming in to the land, I suddenly (10)

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5) Complete the sentences by putting the verbs at the right past tense. The first example has been done for you:

a) Did you manage to see the Director, or had he gone (he/ go) by the time you got there?

b) I couldn’t get into the office yesterday morning because I (leave) my keys at home.

c) We could not call our new low-fat spread Mono, because one of our competitors (already/ choose) the name.

d) I found out about the vacancy too late. When my application form arrived, they (appoint) someone else.

e) By the time he sold off the shares, his original investment (grow) by 80%.

f) He found his first few weeks at the new company very difficult because he (not/ study) accountancy before.

g) When I got back to the office, I was surprised to hear that the manager (put) someone else in charge of my main project.

h) The bank returned the cheque to me because I (not/ sign) it. 6) Complete the following sentences using past perfect

according to the example:

a) She found working from 9 to 5 very difficult because……… she had never had a full-time job before.

b) The company decided to take legal action because….. ………………………………………………………… c) The company was forced to pay a fine to the tax authorities

because………………………………………………..…. d) My trip to the airport to collect Mr. Jones was a waste of

time. When I got there I found that… ……………………………………………………. e) She was not worried when the stock market fell because… ……………………………………………………………….... f) I went to my office as soon as I heard that…. ………………………………………………………..………

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UNIT 7

EUROPEAN UNION MEMBERSHIP The European Union (EU) is an intergovernmental and

supranational union of 25 democratic member states from the European continent. The European Union was established under that name in 1992 by the Treaty of Maastricht. However many aspects of the Union existed before that date through a series of predecessor relationships, dating back to 1951.

The Union nowadays has a common single market consisting of a free flow of goods, persons and capital, a customs union, a single currency managed by the European Central Bank (so far adopted by 12 of the 25 member states), a common Agricultural Policy, a common trade. The SchengenAgreement abolished passport control, and customs checks were also abolished at many of the EU’s internal borders, creating a single space of mobility for EU citizens to live, travel, work and invest.

Originally created by six founding states in 1952, the EU has grown to its current size of 25 member states by five successive enlargements, with the largest occurring on May 1st, 2004, when 10 new member states joined.

The EU will have 27 member states when further enlargement takes place in 2007, with the addition of Romania and Bulgaria. The process of enlargement is sometimes referred to as European Integration.

Romania established diplomatic ties with the EU in 1990 , and the following year a Trade and Cooperation Agreement was also signed. In 1995, the bilateral Europe Agreement entered into force. Its formal application for membership of the EU was submitted on June 22nd, 1995. The Romania – EU intergovernmental meeting in Brussels on February 15, 2000, marked the official start of membership negotiations.

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At the Copenhagen Summit in December 2002, EU leaders set 2007 as the target date for Romania and Bulgaria to join the Union.

In December 2004, the Brussels Council took note of Romania’s progress in its accession preparations and considered that the country “will be able to assume all the obligations of membership at the envisaged time of its accession, (i.e. January 2007) provided that it continues its efforts to that end and completes all necessary reforms and commitments undertaken, in particular important commitments regarding Justice, Competition and Environment”.

In spite of the good progress made, Bucharest must redouble its efforts to meet the accession requirements, the Brussels Council added.

Meanwhile the EU Commission will continue to monitor Romania’s compliance with its commitments closely.

(adapted from Şerban Boicescu, Business Communication, Editura Universitară, 2005, “The Economist”, no. 24, 2005, The Sunday Times, 4,2006)


1. Read the text again and specify whether the following statements are true or false:

a. The European Union was formerly known as the North Atlantic Treaty Organisation (NATO). T/F

b. The EU was established under that name in 1992. T/F c. There are 25 member states now in the EU. T/F d. Estonia, Latvia, Lithuania, Slovakia, Slovenia don’t belong to

the EU. T/F e. The candidate countries are Bulgaria, Romania, Turkey and

Albania. T/F f. The free flow of goods, persons and capital; a customs union,

harmonization of laws,a single currency are the major aims of the EU. T/F

g. Romania submitted its formal application for membership of the EU on June 22nd, 1995. T/F

h. On 15th February 2000 in Brussels, EU leaders set 2007 as the target date for Romania and Bulgaria to join the Union. T/F

i. European Integration supposes the process of enlargement of the EU. T/F

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2.Choose the words or phrases most similar in meaning to the following as used in the reading passage:

1. predecessor : a. antecedent b. Forerunner c. precursor d. previous 2. currency : a. money b. dollars c. finances d. funds 3. abolish : a. suppress b. cancel c. repudiate d. invalidate4. borders : a. frontier b. boundary c. threshold d. edge 5. found : a. establish b. generate c. Organize d. initiate 6. envisage : a. feature b. anticipate c. predict d. consider 7. commitment : a. obligation b. engagement c. undertaking d. vow 8. comply with : a. conform to b. go along with c. shape up d. agree to

VOCABULARY DEVELOPMENT 1.A. Match the words and phrases in column A to the right

definitions in column B:

A B 1. customs union a. A meeting attended by heads of two or

more countries. 2. bilateral agreement b. The state of being a member or the total

number of members or the members of an organization collectively.

3. application c. A group of countries that have arranged to charge the same amount of duty on imported goods

4. summit d. To keep watch over, to record or test or control the work

5. membership e. An arrangement agreed between two persons or groups.

6. to monitor f. making a formal request B.....Use the words above to fill in the blanks in the following

sentences:

a. The two countries established a.......................on the import and export of goods.

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b. At the...................of Copenhagen in 2002, the EU leaders set the EU joining date for Romania, January 2007. c. The new organization numbers a total of 100.................. d. The EU Commission will..................Romania’s compliance with its engagements. 2. The following text illustrates the way of enlarging the

European Union.Fill in the blanks with the words given below: democratic level trademember adjustmentstate integrate development membership agreements

To become a………….of the EU, a …………..must be European, ………….and able to fully……………..into the Union’s activities after a short…………….period, necessary for attaining an equivalent …………..of economic……………..and for building similar structures. Association agreements, free………… agreements, and partnership ………………. Are forms of co-operation which can prepare a state, in time, for integration and full ……………… .

GRAMMAR

The FUTURE = WILL, ‘LL + short infinitive 1. Match the following sentences with the equivalent

functions of the Simple Future:

1. I’ll answer the phone. a. prediction 2. There will be probably another lecture and I expect we’ll attend it.

b. invitation

3. Believe me, I’ll never be late again. c. offer of help 4. Shall I give you a cup of tea? d. polite request 5. Unless you finish your project, you won’t get the money.

e. promise

6. Will you please call on us on Sunday? f. instant decision 7. Consolidation in the technology department will create a greater demand.

g. first conditional

8. I like this camera; I’ll offer you $300 for it. h. future belief

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Simple present = a planned future action or series of actions, fixed timetable, programme

Present continuous = a definite future arrangement with the time almost always given in the near future.

2. Use either simple present or present continuous of the

verbs between brackets in the following sentences:

a. Our president.....................(make) a speech on Wednesday. b. We...............(leave) here at six,...........(arrive) in London at noon, and ...........(take) a plane on to Amsterdam. c. The sales...............(start) on Monday. d. The plane for Paris............(take off) at 7.30 a.m. e. She.................(leave) at the end of the week. f. The elections..............(be held) next week. g. The last train.............(leave) at midnight. „Going to“ expresses intentions, decisions and predictions

(when there is mere physical evidence that an event will take place). 3. Use Going to and match the sentences with its functions in

the following sentences:

1.As RTM bought MTS last month, there........................(be) some big changes in the company.

2.They have ordered new equipment; they ...................... (modernize) the factory.

3.The A.M.Group..............(open) a new branch this summer. 4.I’ve just heard the news; we.............................(lose) this

bargain. 5.They..................(offer) him a good job. 6.He won’t be in the company for the next few days;

he...................(visit) the new subsidiary.

a. intention b. decision c. prediction

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Future continuous = will + present participle (will be doing) = an activity that will be in progress at a particular moment in the future

4. Use future continuous of the verbs in brackets:

a. In spring they....................(start) the new production. b. Next year, he...............(work) in their London office. c. Where...................(live) in six months’ time? d. New European companies..................(invest) in our country

starting from next year. e. In September.................(build) the new wing of the company. f. They........................(hold) an important meeting at the

beginning of June. Future perfect = will + perfect infinitive (will have done) + in

most cases, a time phrase with BY = to look back from one point in the future to an earlier period of time

5. Use future perfect of the verbs in brackets in the following

sentences:

a.By the time we prepare our proposal,........................(find) another partner.

b. I.....................(finish) this job in twenty minutes. c. By next winter they..................(build) the new factory. d. By the end of the year they..................(manufacture) all the

engines. e. 1,000 workers ..............(go) on strike by the end of the week. f. At the present rate, they...............(sell) all the cars by the end

of the month. Time clauses = simple present tense or present perfect (never

will) are used to refer to the future after Time words and phrases like: when, before, as soon as, after, until, till, by the time, whenever,etc.

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6. Complete each sentence 1-6 with an ending a.- f., paying attention to the use of the tense after time words:

1. When we have signed the contract

a. they have been/are introduced to one another.

2. I’ll pay you as soon as b. we get the information. 3. One Englishman will not speak to another until

c. till the bus strike is over.

4. We will contact you as soon as d. we’ll have a party. 5. Please take a seat until e. I get my cheque. 6. I won’t come to London f. the manager is ready to see you

Remember

To be (at present) + likely to/unlikely to/certain to + infinitive = refers to things that we think are probable, improbable, certain to happen in the future;

Will + definitely/probably or probably/ definitely + won’t or Maybe/perhaps + subject + will = show how probable or certain

we believe a future event is. 7. Match the sentences in column A with the sentences in

column B that are similar in meaning:

A B 1.We will definitely sign the contract.

a. I’m 50% sure that I’ll work abroad in the next years.

2. I’m quite sure they will win the deal.

b. Volksbank probably won’t reduce the interest soon.

3. Perhaps I’ll work abroad in the next years.

c. We are certain to sign the contract.

4. I’m confident that they will give us a pay rise.

d. We are very unlikely to win the deal.

5.Volksbank is unlikely to lower the interest rates soon.

e.They are certain to win the deal.

6. I doubt very much whether we’ll win the deal

f. We’re almost certain to be given a pay rise.

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BUSINESS WRITING Letter of application for a scholarship in the European Union

The purpose of a LETTER OF APPLICATION is to help you obtain what you want (job,scholarship,studies).A LETTER of APPLICATION for a SCHOLARSHIP should present you to possible scholarship supporters in the best light. It should state clearly what you want (money allowance or studies), and should tell what your abilities are and what you have to offer. In writing a Letter of Application for a Scholarship you have to bear in mind that the necessary things to be known about you are: your age, your education, your domestic status(married or single), your personality (how you get along with others), your training, your experience, your abilities (what you can do),your record (what you have done), your work habits, your character, your aims and ambitions.

Read the following LETTER OF APPLICATION FOR A SCHOLARSHIP in the European Union. Insert in the blank spaces the three missing paragraphs given below, in the logical order:

a. I have an inquisitive and analytical mind – plus enthusiasm, persistence, and the willingness to study hard.

b. I am 24 years of age, unmarried, and living with my family. I am a graduate of the National Economics Institute, where I specialized in European Economy.

c. I offer my qualifications and very good letters of recommendation from my instructors, in the hope you will consider me for this scholarship.

Dear Mr.Bolton,

The advertisement in this morning’s‚Transcript’ about your funding organization, greatly appeals to me because a scholarship supporting a training programme for experts in European problems meets my deepest aspirations for the future. ................................................................................................................. .................................................................................................................

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UNIT 8

COMPANY ORGANISATIONAL STRUCTURES EFFICIENT MANAGEMENT STRUCTURES

ARE VITAL FOR SUCCESS “The need for a solid structure within all business entities is

absolutely fundamental”, according to Ms Angela Tripoli, a lecturer in Business Administration at University College Dublin. “Organisational structure concerns who reports to whom in the company and how different elements are grouped together. A new company cannot go forward without this and established companies must ensure their structure reflects their target markets, goals and available technology.”

Depending on their size and needs there are several organisa-tional structures companies can choose from. Increasingly though, in the constantly evolving business environment, “many firms are opting for a kind of hybrid of all of them.”

The most recognisable set up is called the functional structure where a fairly traditional chain of command (incorporating senior management, middle management and junior management) is put in place. The main benefit of this system is clear lines of com-munication from top to bottom but it is generally accepted that it can also be a bureaucratic set up which does not favour speedy decision-making.

More and more companies are organising themselves along product lines where companies have separate divisions according to the product that is being worked on. “In this case the focus is always on the product and how it can be improved.”

The importance for multinational companies of a good geo-graphic structure, said Ms Tripoli, could be seen when a manufacturer produced an innovative rice cooker which made perfect rice - according to western standards. When they tried to sell it on the

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Asian market the product flopped because there were no country managers informing them of the changes that would need to be made in order to satisfy this more demanding market.

The matrix structure first evolved during a project developed by NASA when they needed to pool together different skills from a variety of functional areas. Essentially the matrix structure organises a business into project teams, led by project leaders, to carry out certain objectives. Training is vitally important here in order to avoid conflict between the various members of the teams. During the 1980s a wave of restructuring went through industry around the globe. This process, known as delayering, saw a change in the traditional hierarchical structures with layers of middle management being removed. This development was driven by new technology and by the need to reduce costs. The overall result was organisations that were less bureaucratic.

The delayering process has run its course now. Among the trends that currently influence how a company organises itself is the move towards centralisation and outsourcing. Restructuring has evolved along with a more “customercentric” approach that can be seen to good effect in the banks. They now categorise their customers and their complex borrowing needs into groups instead of along rigid product lines. Another development can be seen in larger companies, which are giving their employees more freedom to innovate in order to maintain a competitive edge. Ms Julia MacLauchlan, Director of Microsoft’s European Product Development Centre in Dublin, said the leading software company had a very flat organisational structure. “There would not be more than around seven levels between the average software tester and Bill Gates”, she said. Microsoft is a good example of a company that is structured along product lines. In Ireland, where 1,000 employees work on localisalion of the software for all Microsoft’s markets, the company is split up into seven business units. Each unit controls the localisation of their specific products while working closely with the designers in Microsoft’s Seattle Headquarters.

It works, said Ms MacLauchlan, because everyone who works in the unit is “incredibly empowered”. “Without a bureaucratic infrastructure people can react a lot more quickly to any challenges and work towards the company’s objectives.”

From “The Irish Times”

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READING COMPREHENSION 1. Match these definitions with the four organisational

structures described in the text.

a. A cross-functional structure where people are organised into project teams.

b. A structure rather like the army, where each person has their place in a fixed hierachy.

c. A structure that enables a company to operate internationally, country by country.

d. A structure organised around different products. 2. Read the text about the different ways in which companies

are organised and answer these questions.

a. Four main kinds of organisational structure are described in the article. What are they?

b. Is one kind of organisational structure more common than the others?

c. When did ‘delayering’ take place? d. What were the reasons for delayering and what were the results? e. How does Julia MacLauchlan describe Microsoft’s organi-

sational structure? VOCABULARY DEVELOPMENT Collocations 1. Match these nouns as they occur in the text. 1. product a) teams 2. target b) objectives 3. borrowing c) lines 4. project d) units 5. delayering e) company 6. country f) process 7. business g) markets

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8. software h) needs 9. company i) managers 2. Use an appropriate phrase from Exercise A to complete

each sentence.

Example: Banks need to be fully aware of their customers’ ..…borrowing needs. a) Silicon Valley is full of………… b) Many companies are now organised along …….., in which each division is responsible for a group of products. c) A matrix organisation groups people into……….. d) Some companies are divided into different………., often also called profit centres. e) A multinational company will often have a number of………

in charge of activities in different parts of the world. Definitions

3. Match these terms with their definitions

1. business entities a) focusing on the customer rather than the product

2. set up b) new, original 3. innovative c) companies 4. flopped d) something that makes you better than other

companies 5. outsourcing e) did not succeed, failed 6. customercentric f) structure 7. competitive edge g) getting external companies to do work for

your company 4. Fill in with a suitable word according to the model:

Example: The Finance (manage)…manager……. is in his office. a. Our (compete) ….. have brought out a new product and it looks very good. b. After a long negotiation, we finally reached (agree)……….

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c. The Far East suffered from (economy)…… difficulties in the late1990s. d. The Z400 is our best-selling ……..(produce). e. The World Bank is an international………(organise) that

supports development projects around the world. 5. Match these words with their definitions (a—j).

1. advertisement a) A reduction in the price offered by the seller.

2. customer b) A person or company that makes goods from natural materials.

3. discount c) What remains from a company’s income from sales after its expenses have been deducted.

4. employer d) An arrangement with a bank to borrow money with a promise to pay it back at a future date.

5. loan e) A person or company who sells goods to you, usually on a regular basis.

6. manufacturer f) A buyer, client or guest. 7. personnel g) All the people who work for a company. 8.profit h) A public notice selling goods or services. 9. research i) A person or company who provides work

for others. 10. supplier j) Exploring a new market or developing a

new product. 6.

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7. A. In the following groups of sentences, the speaker is either complaining or responding to a complaint.

Which is the most forceful of these complaints? a) I’m sorry but I’m not satisfied with this product. b) There is a small problem with this product. c) Unfortunately, we had some problems with this product. d) The product doesn’t seem to work very well.

B. Which is the most polite of these responses? a) What’s the problem then? b) I’m very sorry to hear about your problem. c) You could be using it incorrectly. d) It’s not our fault if the equipment wasn’t installed correctly. SPEAKING Discuss these questions

1. How many different ways of organising or structuring a company can you think of? Think about departments, products and markets.

2. The functional organisational structure has clear lines of communication. In contrast, where things are organised along product lines or with a matrix structure, people often report to two people at the same time — their boss is the functional structure and their manager or team leader in the other structure. What, if any, problems could you imagine in the second case?

3. Do you think people from certain cultures would favour one kind of organisational structure over another? Can you think of some other examples and give some reasons.

GRAMMAR

Direct/Indirect Speech We use indirect speech in order to report what people say or

think, changing verb forms and pronouns as necessary. It is not necessary to follow the introductory verb said by that.

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Direct Speech Indirect Speech

She is getting annoyed. He said that she was getting annoyed. I’ve forgotten the area code. He said that he had forgotten the area

code. I’ve been trying to get through.

She said she had been trying to get through.

Mary sent the invoice. They said Mary (had) sent them the invoice.

They were driving carelessly.

She said they had been driving carelessly.

Don’t sell yor shares yet. He warned me not to sell my shares yet.

You can/may/must go. She said that we could/might/had to go. You could hire more temporary staff.

She suggested hiring more temporary staff.

Certain adverbial expressions used in Direct Speech also change:

Direct Speech Indirect Speech today that day yesterday the previous day/the day before tomorrow the next day; the following day last week/year the previous week/year a week ago the week before next week/year the following week/year the day before yesterday two days before now then here there this that these those

1. A. Reporting what the MD said These are some of the things that the Managing Director said at a meeting you attended recently. A colleague who was unable to attend wants you to tell her what the MD said.

a. ‘I think a joint venture is the best way to break into the Far Fast.’ b. ‘We are not planning to set up a subsidiary.’

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When reporting open questions (beginning with which, what, where, why, when , how), we report them using a different word order. “Where is the station?” She wanted to know where the station was. “When will you be leaving?” He wondered when I would be leaving. “Who told you?” They wanted who (had) told me 3. Sentence transformation

Report these yes/no questions using the words in brackets, as in the example:

‘Do you want to call Derek?’ (asked) He asked me if I wanted to call Derek. 1. ‘Have you seen Bernard yet?’ (asked) 2. ‘Are you open on a Saturday?’ (could) 3. Did you get my message?’ (wondered) 4. How much time is there left?’ (idea) 5. ‘Will you be taking your wife with you?’ (wanted to know) 4. Enquiries

Maria works at an information desk in an airport. These are the answers she gave — what do you think the questions were?

1. ‘The restaurant is upstairs. 2. ‘You can get a shuttle outside the building.’ 3. ‘The duty free is on the first floor.’ 4. ‘Yes, you can leave your suitcases in the left-luggage lockers

over there’. 5. ‘I’m sorry, I really don’t know why the flight has been

delayed.’ BUSINESS WRITING 1. Match the beginnings of each sentence with the correct

ending:

1. Thank you a) for not replying to your letter before. 2. I apologise b) on helping you to prepare the report. 3. I insist c) to seeing you soon.

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4. They succeeded d) in getting everything ready on time. 5. We look forward e) for sending the documents. 2. Match the elements of the following business letter with

their corresponding Dames:

a. COURTNEY & Co.LTD 6, Nottingham Street London Telephone: Lon 7785653 b. May 15th2006 c. Our ref.: CAlER 45-P93-29 Yourref: Gh/SD 613 d. „Software Today” Ltd. 3, Shepton St. Manchester e. Dear Sirs, f. Acknowledgement of letter and printed material g. Yours faithfully, h. COURTNEY & Co.LTD Per pro. John Brown Selling Manager i. We acknowledge receipt ofyour letter of May 15th 2006, and

we thank you very much for the 10 copies of the magazine „Software Today” which are really interesting and helpful to us. We would appreciate ifyou would kindly continue to send us these magazines in the future.

1. Heading 2. Date 3. Reference 4. Inside Address 5. Salutation 6. Subject line 7. Body of the letter 8. Complimentary close 9. Signature

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3. Match the type of statement with the corresponding lines (components of the body of the letter)

1. Introductory paragraph a. The subject of our letter is to notify you…

2. Conveying the message b. We hereby let you know… 3. Closing paragraph c. We are in receipt of your letter dated…

d. Complying to your instructions… e. We are unable to accept such terms f. Looking forward to receiving your answer, we remain… g. We hope to receive your news h. We count on the matter being solved according to our instructions.

4. Choose the correct word or phrase to complete the

following letter:

Dear (Sir/ Mr. Daniels/Mr. Sales Manager)1

With (relation/reference/connection)2 to our telephone (dialogue/meeting/conversation)3 today, I am (posting/enclosing/including)4 our latest catalogue. I (am afraid/deeply regret/apologise)5 our most up-to-date price list is not yet available, but I shall send you one as soon as they are printed.

I hereby wish to inform you that our products listed on pages 20 and 21 meet the most recent environmental conditions. We would be happy to supply you with any samples you may (require/pretend)6.

If you have any further (questions/enquiries/doubts)7 or would like to arrange a meeting, please do not ( pause/delay/hesitate)8 to (connect/contact/correspond)9 us again.

In the meantime, I (look/wait/expect)10 forward to (listening/hearing/seeing)11 from you.

(Regards/ Yours sincerely/ Love from)12 J.P.Green (Enc./p.p.)13

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5. Enlarge upon

a. The parts of a business letter (The heading, date, reference line, inside address, salutation, subject line, body of the letter, close, signature, enclosure).

b. Types of complimentary close. c. What is the difference between letters and memos?

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UNIT 9

ACCOUNTING FINANCIAL ACCOUNTING AND MANAGEMENT ACCOUNTING

Accounting may be defined as “the process of identifying and

communicating economic information to permit informed judgments and decisions by the users of the information“ (The American Accounting Association).

In other words accounting is a language – the language of business. Like all languages it has its own vocabulary, methods of expression, terminology and conventions- and because of these, its own difficulties of interpretation and understanding. When using accounting words, it is important that you understand their accounting meaning.

As in any language, some accounting rules and terms have a single correct meaning, and others are like dialects in that their meaning varies with different users. Accounting is a language which pervades, in some measure, everybody’s life, and hence it is a language with which everyone should have some familiarity.

Accounting is usually subdivided into two areas: • Financial accounting • Management accounting Management accounting seeks to provide information to those in

positions of authority within the organisation, ie. managers. Financial accounting, on the other hand, seeks to provide

information to other interested groups, including shareholders, government, customers, suppliers of goods and services, lenders of finance and employees.

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Briefly, the major differences are as follows:

• Nature of the reports produced Financial accounting reports tend to be general-purpose reports

available to parties that are not part of the company proper—stockholders, present and future creditors, customers, suppliers, regulatory State commissions, competitors, financial analysts, and trade associations although the information is also of interest to the company's officers and managers. Such information relates to the financial position, liquidity (that is, ability to convert to cash), and profitability of an enterprise.

Management accounting reports, on the other hand, are often specific-purpose reports. They are designed for a particular manager. The information is not generally disseminated outside the company.

• Level of detail Financial accounting reports provide users with a broad

overview of the performance and position of the business for a period. As a result, summaries of information are made available and detailed information is often lost.

Management accounting reports provide managers with considerable detail to help them with a particular operational decision.

• Regulations Financial reports, for many businesses, are subject to accounting

regulations, which try to ensure they are produced according to a standardised format.

Because management accounting reports are for internal use only, there are no regulations from external sources concerning the form and content of the reports.

• Reporting interval Financial statements are issued either at the end of an accounting

period or on a quarterly basis. Management accounting reports may be produced as frequently

as required by managers. In order for managers to make timely decisions, the reporting cycle is usually much shorter than for financial accounting.

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• Time horizon Financial accounting reports are backward looking. They do not

incorporate expectations concerning the future. Management accounting reports, on the other hand, may provide

information concerning future performance as well as past performance.

• Range and quality of information Management accounting prepares information for the

management that is the users are inside the company, the range of information is much wider, more detailed and based on specific methods.

Financial accounting reports concentrate on information that can be quantified in monetary terms.

Management accounting reports may contain information of a non-financial nature. For example if management intends to put pressure on slow payers, information on the dates when sales took place and on the customer’s past record is required. Other examples of non-monetary data required by management might be the percentage of shipments made on time, number of customer complaints received, unfilled sales order, in other words, backlog, the estimated market share of competitors. For deciding if it is advisable to continue the output of a certain product, management might require an analysis on the breakeven point, that is the point at which revenue will equal total costs. For cost estimation managerial accounting might resort to the Cost-Volume-Profit analysis (CVP), which is an instrument for cost analysis.

Financial accounting places greater emphasis on the use of objective, verifiable evidence when preparing reports.

Management accounting reports may use, at times, information that is less objective and verifiable.

We can see from the above that management accounting is less constrained than financial accounting. The only real test to be applied when assessing the value of the information produced for managers is weather or not it improves the quality of the decisions made.

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Most accounting reports and other detailed information are generated mainly for the company’s managers so that they may be able to make decisions on future strategies for the company. Reports to management may be either summaries of past events, forecasts of the future, or a combination of the two. Preparation of these data and reports is the focus of managerial accounting, which consists mainly of the following functions: (1) budgetary planning, (2) cost and profit analysis and (3) performance evaluation and control.


1. Say whether the following statements are true or false according to the text:

a. Financial accounting reports may provide information

concerning future performance as well as past performance. b. Management accounting exists in order to improve the quality

of economic decisions made by users. c. Managers are interested solely in information expressed in

monetary terms. d. Management accounting provides information for investment

analysts, competitors, and future creditors. e. Financial accounting is less constrained than the management

accounting. f. A breakeven point analysis reveals whether it is profitable to

produce a certain item. g. Managers have greater control over the form and content of

information provided than other user groups. h. As a rule financial statements are produced every week. i. Financial accounting provides information especially for

inside users. VOCABULARY DEVELOPMENT

2. Find in the text words/phrases that mean:

a. a quantity of goods to be sent together. b. a person or organization that provides necessary goods or

services.

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c. a committee or an organisation appointed by the government that draws up and enforces codes of conduct for the control of certain economic issues.

d. of an order or promise that has not yet been supplied or completed.

e. a number of jobs waiting to be done that were not done at the proper time, resulting in a lot of extra work.

f. the percentage of the total sales of a product in a particular area or country obtained by one company.

g. the quantity of goods produced by a worker, a machine or an organization.

h. the position where income from sales equals costs. i. money received from the sale of goods or services. 3. Match up the terms on the left with the definitions on the

right

A B 1. managerial

accounting a) the process of using unusual but not illegal ways to change business accounts to make them look better than they really are

2. bookkeeping b) the design and maintenance of the accounting system.

3. financial accounting c) daily recording of financial information 4. auditing d) Preparing budgets and other financial

reports for decision-makers 5. “creative

accounting” / “window dressing”

e) an official examination of a company's financial records in order to check that they are correct

SPEAKING

Discuss in small groups on the following topics:

1. Are there any similarities between financial accounting and managerial accounting? 2. Is there any overlap between the information needs of managers and the needs of other users?

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BUSINESS WRITING • Letters of enquiry

What should you say in a letter of enquiry?

1. Say where you saw the advertisement – giving reference. 2. Give some general information about your company. 3. State your general reason for writing-why you want the

information. 4. Request action and further information-tell what you want. 5. Close the letter. 6. Add a formal ending: (yours faithfully)-if the salutation is Dear Sirs. (yours sincerely) – if the salutation is Dear Mr/Mrs/Miss/Ms). 1. Match the sentences below with the list of functions

Eg. A. We look forward to receiving your reply. = Close the letter (5)

Some functions can be matched with more than one sentence. a. We look forward to receiving your reply b. Could you send us at least two samples of ….. c. Please send us your latest catalogue and price list d. We are one of the largest importers of … e. I would also like to know … f. We have seen your advertisement in today’s “Capital” g. We are interested in importing your range of …. h. Could you please send us some samples of…. i. We have read you advertisement in this month’s edition of…. j. We are a company which specializes in / imports… k. We would appreciate it if you would send us more

information about…. l. We have seen your new model at Bucharest International Fair m. We are interested in purchasing n. Could you tell me whether …

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2. Complete the letter. Refer to the list of functions above

Dear Sirs, We have_________ (1) your advertisement ______(2)Aro

Vehicles _________(3) the June _______(4) of “Capital”

We are a large company __________(5) specialises ________ (6) overland safaris for tourists and ________(7) our business is expanding rapidly, we are ________(8) in _________(9) some new vehicles.

We would therefore ________(10) it if _________(11) send us your ___________(12) catalogue and price lists. We would also want to know if you are offering any trade discounts.

We look forward to__________(13) from you soon. Yours ___________(14) D.Cliff Managing Director • Replying to letters of enquiry How should you reply to a letter of enquiry?

1. Acknowledge the letter- thanking the potential customer for his/her interest.

2. State what action you are taking –providing requested materials.

3. Answer any specific questions the enquirer asked, for example about prices and delivery.

4. Suggest alternatives (optional). 5. Suggest ways in which you could help the enquirer to make a

decision to buy-“selling” your product. 6. Invite the enquirer to ask for further information. 7. Close the letter hoping for future business.

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3. Match the sentences in the following letter with the functions listed above. Some functions can be matched with more than one sentence

Eg. C. Invite the enquirer to ask for further information. “Please do not hesitate to contact us to arrange a suitable date

and time for a demonstration.”

a. We can assure you that the MLI 2005 is one of the most outstanding machines on the market today, and our confidence in it is supported by our three-year guarantee.

b. We look forward to … hearing from you / receiving your order / welcoming you as our client (customer).

c. Please do not hesitate to contact us to arrange a suitable date and time for a demonstration.

d. ….Fortunately we have produced an amazing substitute, “ CP Soft” which has the same texture, strength and quality of leather, but is less than a quarter of the cost.

e. We would like to thank you for your letter of … enquiring (asking for information) about ..

f. We would like to draw your attention to our offer of …. g. We would like to suggest a demonstration of this model by

one of our representatives h. Please find enclosed our current catalogue and price list

quoting f.o.b. prices Constanţa. i. Our prices include insurance and delivery. j. We are sending the samples you requested under separate

cover. k. We would be pleased to supply any further information you

require. 4. Complete this letter. Refer to the list of functions above.

Dear Mr. Cliff Thank you __________(1) your letter _________(2) 25 June

enquiring ___________(3) our Aro vehicles.

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We _________ (4) pleasure ________(5) enclosing our latest brochures and price list. Please ________(6) that the prices quoted do not _____(7) insurance and delivery.

As we _______(8) received a large number of _______(9) from all over East Africa in response to our advertisement , we _________(10) shipping two of our _______(11) to Nairobi, and sending out ________(12) of our most experienced ________(13).

We__________(14) that you should contact Mr. Ionescu, who will be staying __________(15) the Grand Hotel, Nairobi, between 10 and 30 July, if you __________(16)like to examine and drive these vehicles. The Aro vehicles that we are sending out _______(17) special modification, carried out by ourselves, which will be of particular __________(18) to you.

We look _________(19) to hearing from you. Yours _______(20) Marcel Pruteanu Sales Manager GRAMMAR If clause

I. Zero conditional: Stating a general rule (what generally happens when something else happens): Both verbs are in the present simple tense:

If you pay people peanuts you get monkeys. If you order in bulk you usually get a discount.

1. Match the first part of the sentences in column A with the

right endings in column B

A B 1. If inflation is high a) if they work in pleasant

surroundings 2. If a company doesn’t advertise b) people tend not to save

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3. If the government lowers interest rates

c) you don’t pay income tax

4. People are more productive d) if they give aid 5. Governments expect something in return

e) it makes borrowing easier

6. If you have an offshore bank account

f) it loses market share

II. First conditional: Speculating about the future (possible

future events )

If I do an MBA I’ll improve my job prospects. If our main competitor goes bankrupt we will increase our

market share. 2. Put the verbs in brackets into the correct tense

a. If the meeting (finish) late, I (spend) the night in Bucharest b. If you (give) us a 5% discount we ( make) a firm order of 10,

000 units. c. If you (order) now you (get) a free gift. d. If we (break) into the Bulgarian market, our turnover

(increase) substantially. e. If sales (not/go) well this year, we (try to) reduce our costs. III. The second conditional ( for unlikely, imaginary situations)

What would you do if you won a million dollars? If I lost my job tomorrow I would move to the country side. I wish I wasn’t working next weekend.

3. Read through the following sentences. Decide whether the

events in them are likely or imaginary, and put the verbs in brackets into the right tense.

a. I ___________(apply) for the job if I ________(have) a degree, but unfortunately I am still an undergraduate.

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b. I’m leaving now; I _______(be) back at noon if the traffic_______(not /be) too bad.

c. If I __________(be) chief accountant I _______(insist) on having more staff in the accounting department.

d. We _________(not/be) able to do business with you unless you ______(comply) with our ethical policy.

e. If I ________(invent) a new product, I _________(patent) it immediately.

f. If you _________(increase) sales by over 15% the company _______(pay) you a performance bonus.

IV. The third conditional : speculating about the past

(unfulfilled past conditions)

If I had got up earlier, I would have caught the train They wouldn’t have given me the job if the interview

hadn’t gone well. I wish we had advertised on TV.

4. Put the verbs into the correct form

a. If the flight had been delayed, I ___________(stay) at the airport hotel.

b. If I ________(know) that you are coming , I would have met you at the airport.

c. If we had followed his advice, we could _________(lose) a great deal of money.

d. If we ___________(offer) large quantity discounts, we might have won the order.

e. If we ____________(had) the right figures, we could have avoided a costly error.

f. If you___________(leave) earlier, you might have got there on time.

5. Write down what you would have done if the following

things had happened

What would you have done if……

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a. You hadn’t come to this university? b. You had lost your passport in Iraq? c. You had fallen seriously ill while you were abroad? d. You had missed your return flight ? e. A burglar had come into your room at night? 6. Choose the correct continuation for each sentence:

a. I can’t enter the system because I don’t know the password. i. If only I would have the password ii. If only I had the password

b. I wasn’t taking notes, and now I can’t remember what she said. i. I wish I took notes ii. I wish I had taken notes.

c. I am worried about the meeting tomorrow. We need to reach an agreement.

i. I wish we succeed. ii. I hope we succeed.

d. I am not a good typist. i. I wish I could type better. ii. I wish I would type better.

e. This is a very unusual situation i. I wish I had known what to do. ii. I wish I knew what to do.

Review questions on management accounting

• Management accounting has been described as ‘the eyes and ears of management’. What do you think this expression means?

• Accounting information should be understandable. As some managers have a poor knowledge of accounting we should produce simplified financial reports to help them’. To what extent do you agree with this view?

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UNIT 10

BANKING

Banking refers to the business of providing financial services to

consumers and businesses. The basic services a bank provides are checking accounts, which can be used like money to make payments and purchase goods and services; savings accounts and time deposits that can be used to save money for future use; loans that consumers and businesses can use to purchase goods and services; and basic cash management services such as check cashing and foreign currency exchange.

Four types of banks specialize in offering these basic banking services: commercial banks, savings and loan associations, savings banks and credit unions.

A broader definition of a bank is any financial institution that receives, collects, transfers, pays, exchanges, lends, invests, or safeguards money for its customers.

ROMANIAN BANKS

Romanian Banks must extend the maturity of their mortgage loans in

a bid to counteract the restrictive norms set by the central bank. These norms stipulate that the monthly instalment a borrower

pays towards a mortgage loan cannot exceed 35 per cent of his or her income.

Some banks are also beginning to advertise new products, such as loans for new and second-hand cars.For all types of loans, the minimum down payment one has to make is 25 per cent of the value of the goods.

Last week Volksbank announced it has extended the maximum maturity of mortgage loans to 25 years.The amount one can borrow is

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unlimited however, and the bank will decide on its value after analyzing the family revenues.Housing loans provided by Volksbank in 2005 amounted to some eight million Euro. „Around 40,000 people took a housing loan from our bank by December 2005“, said the communication officer at Volksbank Bank. „Most of the clients prefer to take a loan in foreign currency because of the lower interest“, she added.

At HVB someone applying for a mortgage loan must be aged between 25 and 55 and have a family income of a minimum 300 Euro.The payback period for acquiring or extending the house is between three to 20 years while for refurbishing is between three to five years.The minimum amount of the loan is 10,000 Euro.

Car loans given by banks target a different customer’s segment than the one targeted by leasing companies. „The loans we offer mostly address private individuals, while leasing addresses more the corporate segment“, said the communication officer at HVB.

Raiffeisen offers loans for those who want to purchase a new car, Romanian or foreign-made.The loans are given in RON, Euro or US dollars, with a maximum value of 75,000 Euro and with a reimbursement period between six months to five years.The total value of the loans taken out in 2005 increased by nine times on the previous year, said the bank.

The loaning market will increase further but with a lower year-on-year percentage than the last two years. New players will come on the market such as Banca Tiriac, ABN Amro, Banca Românească, while the clients will search for the most convenient loans.

(adapted from “BUCHAREST BUSINESS WEEK”, October 2005) READING COMPREHENSION 1. Read the text again and specify whether the following

statements are true or false:

a. The restrictive norms set by the central bank stipulate that the monthly instalment a borrower pays towards a mortgage loan has to be more than 40 per cent of his or her income.

T/F

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b. Loans for new and second-hand cars are not granted by the Romanian Banks.

T/F

c. For all types of bank loans, the minimum down payment the borrower has to make is 25 per cent of the value of the goods.

T/Fd. Given the lower interest, most of the clients prefer to

take a loan in foreign currency.

T/Fe. The minimum amount of the loan at HVB is 20,000

Euro.

T/Ff. The director of the Credit Division of Volksbank

declared that the loans they offer address mostly private individuals.

T/F 2. Choose the words or phrases most similar in meaning to

the following as used in the reading passage:

1. grant : a. allow b. authorize c. admit d. bestow 2. acquire : a. obtain b. annex c. earn d. gain 3. reimburse : a. compensate b. pay back c. recompense d. make up for 4. bid : a. offer b. present c. submit d. propose 5. observe : a. celebrate b. honour c. respect d. commemorate 6. refurbish : a. rehabilitate b.renovate c. restore d. redecorate 7. target : a. aim b. purpose c. procure d. get hold of


1. Match the words in column A to their right definition in column B

A B 1.maturity a.any of the parts in which a debt is paid,over

a period of time. 2.mortgage b.to give someone a claim on (property) as

security for payment of a debt or loan 3.instalment c.payment at the time of purchase 4.borrower d.date when a bill has to be paid 5.down payment e.the person who gets the temporary use of

sth.,on the understanding that the thing received is to be returned

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6.leasing f.a contract by which the owner of a car,a building,land,etc. allows another person to use it for a specified time, usually in return for payment.

2. Fill in the blanks with words chosen from the above ones:

a. They decided to extend their house and got a ....................... loan for a period of five years.

b. As he was short of money, he wasn’t able to pay on the date of ...............................

c. The monthly .........................they had to pay was as much as his wife’s wages.

d. As she was not very wealthy, she made a ..................of $50. e. They used .................contracts for all the buildings in the

district. f. He wasn’t the real inventor, he only was the...............of their

methods. 3. Which verb refers to which nominal group to form bank

collocations:

1.grant a.the maturity date 2.pay b.a down payment 3.extend c.an instalment 4.make d.a housing loan 5.take e.mortgage loans 6.apply for f.a loan 4. Match the words on the left, having to do with “kinds of

payments”, to the explanations on the right:

1.dole a. money given in recognition of services rendered, a tip

2.graft b. state payment to insured persons who are unable to find employment.

3.alimony c. money received during a certain period (esp. a year) as wages or salary,interest on investments,etc.

4.gratuity d. an allowance payable by a man to his wife or former wife after a legal separation or divorce.

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5.income e. a sum of money paid as a penalty. 6.interest f. money given to obtain some advantage in business

or politics by bribery or unfair influence. 7.fine g. fixed payment made by an employer at regular

intervals,usually calculated on an annual or quarterly or monthly basis

8.salary h. money paid for the use of money lent 9.wages i. money paid or received for work or services,

specially paid daily or weekly. 10.pension j. an income consisting of a periodic payment made

by the State to people who are above a certain age or widowed or to certain disabled people or by an employer to a retired employee.

5. Use some of the above words in the following sentences: a. Being above age of working, he retired and received

a................ b. As she lent so much money, the................she had to pay was

considerable. c. He used substantial................to reach that position. d. Without any job, they have been living for years on

a.............. GRAMMAR The passive voice = to be + the past participle of the main verb 1. Change the following sentences as shown in the example: E.g. They have made progress. Progress has been made.

a. They will develop new techniques of accounting. b. They have improved their lending methods. c. They eliminated the restrictive norms last year. d. They had identified the causes of the loss. e. They are extending the maturity date one of these days. f. They advertise new products every two months.

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2. Put the following sentences into the passive voice making all necessary changes and mentioning the agent where necessary:

a. The judge gave him one month in which to pay the fine. b. They will say nothing more about the matter if somebody

returns the stolen document. c. The burglars had cut an enormous hole in the steel door of the

bank. d. The organizers will exhibit the objects until the end of the

month. e. He has just written a special edition for the bank employees. f. Anyone with the proper knowledge can understand these

instructions. g. They will have to adopt a different attitude. 3. Change the following sentences from the Passive Voice

into the Active Voice:

a. Last year a profit of two million pounds was made in the first six months by our bank.

b. Your money could be put to better use instead of being left idle in the bank.

c. He spoke for an hour, and his remarks were received by the audience with loud applause.

d. Someone will have to be found to take her place. e. The matter will be dealt with in a later paragraph. f. My computer is being repaired at the moment. g. I’m afraid all our copies have been sold but others have been

ordered. Remember: In English, both direct and indirect object of the verb in the

active voice can become subject of the passive construction. 4. Change into passive the following sentences according to

the model:

E.g.I showed him his mistakes. His mistakes were shown to him. He was shown his mistakes. a. They offered him a good job.

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b. They promised her immediate help. c. I paid them the money this morning. d. She will give us the answer as soon as possible. e. He owes her quite a lot of money. f. The lawyer has just given to him the details of his uncle’s will. Causative have – The verb to have is used to show that the

action is made by someone else for the person who needs a certain service.

5. Rewrite the sentences according to the model, with the

proper form of the verb to have: E.g.Our door is broken, we’ll call the carpenter to repair it. We will have our door repaired. a. The office was dark so last year we decided to put in another

window. b. I can’t read Chinese so that somebody had to translate my

documents. c. The manager asked us to finish the report at once. d. I need to print some visiting cards till tomorrow. 6. Fill in the spaces with the correct form of the verb TO

HAVE, the past participle of the verb between brackets and, where necessary, a pronoun:

E.g. The room is very untidy, but we...it......next month. (redecorate)

The room is very untidy, but we are having it redecorated next month.

a. They can’t find a house to suit them so they............one......... (build)

b. My dress is too long, I must................(shorten). c. You’ve spilt oil on your coat; now you’ll have to .........

it........(clean)

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d. They didn’ like the colour of the walls so they .......... them ........(paint)

e. We went to a service to.............the puncture............(mend) BUSINESS WRITING

1. Order letter

The letter in which a company expresses its decision to buy, on certain terms, some specified goods, is called LETTER OF ORDER.It is usually a reply to an offer. As a rule the order is placed on an order form, which gives all the details on quantities, qualities, terms of delivery, terms of payment and prices, packing, sizes, deadlines, etc. When placing an order it is essential to be accurate and clear. Orders may be first time orders, repeat orders and trial orders (meaning that the goods are ordered subject to being accepted by the buyer after examining them. If he does not accept them he returns them to the supplier with no commitment to pay for them).

Functions to be found in an order letter: − acknowledge receipt of previous correspondence (offer) − express your reaction to prices, discounts, etc. − place the order − discuss or suggest terms of payment − set deadline for delivery − close the letter Fill in the blanks in the following order letter with the terms

mentioned below: DISCOUNT CANCEL OFFER PAYMENT ORDER FORM CATALOGUE EXPENSE CREDIT RISK SHIPMENT DELIVERY

18 September 2005

Dear Mr.Brown,

Thank you for your.......... of 15 September 2005,accompanied by your latest............and price-lists as well as your quotation for one million units and a pro-forma invoice.

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Your trade..............of 12% plus your 7% quantity discount is quite satisfactory.

We are therefore enclosing our........... .............. for 1 million metal paper clips with all the details containing sizes, terms of delivery, types of documents required.

We agree to ................ by documentary ............to be opened at Barclays’ Bank,London

And undertake to apply to our bank and have the credit opened within the next two weeks.

......................by 10 October 2005 is essential and we reserve the right to..................the order and return the entire....................at your entire..............and ................any time after that date.

We hope that this will be the first of many orders we will be placing with you.

Yours sincerely M.Smith Sales Manager Enclosure: Order form 2. Reply to an order

An order that has been received by a company must be confirmed at once, especially when it can be carried out. In it you tell the buyer that the order has been received and has been put in hand. You assure him it will be executed carefully and without any delay.

Sometimes the terms and conditions of the order are repeated in the confirmation.

The functions of this type of letter are: − acknowledge receipt of the order − confirm that you are able to supply the goods and can meet

the conditions of the order − say what you have done and what you are going to do to

implement the order − close the letter

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Here is a list of some phrases to illustrate the above mentioned functions:

1. Acknowledge receipt of the order. Use phrases like : − Thank you for your first time order; − We want to tell you how pleased we are as it is our first

dealing with you. 2. Confirm that you are able to supply the goods and meet the

conditions of the order. Use phrases like: − We are happy to inform you that we can meet your order

immediately; − We are glad to confirm that we can supply your order from

stock. 3. Say what you intend to do to implement the order. Use

phrases like: − We are now making arrangements for the shipment of your

order; − We are now dealing with your order and you may expect

delivery within the next 15 days; − The order will be dispatched as soon as we get confirmation

of the opening of the documentary credit from our bank. The following letter of confirmation of an order normally has

four paragraphs. Put the paragraphs below in their right order:

Dear Mr. Peters,

a. We are looking forward to the safe arrival of your order and receiving further orders from you.

Yours sincerely, Paul Hartley Sales Manager b. We thank you for your order of 5th May 2006 for 150 portable

electric typewriters which we received today. c. The order has been put in hand and will be dispatched as soon

as we receive confirmation of the opening of the documentary credit.

d. We are glad to confirm that we can supply your order from stock.

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3. The turning down of an order

There are different circumstances when an order cannot be carried out.

Here are the functions of such type of letter: − Thank the customer for the order; − Say that you cannot meet the order; − Suggest an alternative.

Fill in the blanks in the following letter of turning down of an order, with the words listed below:

Order difficulty sorry available shortage send fill Gentlemen: We are ……..to have to tell you that we cannot ……your order

for 200 pairs of black doeskin gloves.

We can…….you all the white, tan or yellow gloves you want; but there is a temporary……..of black due to…………with the dyes.

Thank you very much for your………. – which we hope you’ll give us an opportunity to fill when black doeskin gloves again become ………….

Yours very truly,

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UNIT 11

FINANCIAL ACCOUNTING

FINANCIAL STATEMENTS As we know an Accounting department systematically records,

sorts and summarizes the thousands of documents representing the transactions of a business. These transactions are then compiled, classified and summarized into financial reports for a business so that a financial statement can then be prepared.

Financial statements are usually prepared on a quarterly, biannual or annual basis. Most are drawn up on a yearly (fiscal) basis. Statements provided that are outside of the fiscal closing are known as interim statements.

Therefore a financial statement can be defined as an accounting report that shows income and expenses for an accounting period and normally consists of a balance sheet, a profit and loss account (US income statement) and a statement of cash flows. These year-end financial statements are drawn up by most accounting professionals.

Balance Sheet The purpose of a balance sheet is to show what a company is

worth. It is like a “snapshot” of the firm's position on the last day of the financial year. It is basically concerned with the capital of the business and not with its performance.

The balance sheet comprises three major components: a) the assets the entity controls (what the company owns) b) the liabilities the entity is obliged to meet (money owed for

goods or services already received and c) the equity interests of the entity's owners (the asset value that

actually belongs to the owner-in a corporation, this is usually divided into original capital and retained earnings)

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A balance sheet, as the name implies must balance: -sources of funds equal employment of funds. In other words:

creditors equal debtors. (US accounts payable vs. accounts receivable)

This can be calculated by a simple equation: • assets = liabilities + owner’s equity /net worth or • owner’s equity = assets - liabilities This is a basic formula that must always be true, unless some

kind of fraud or serious errors have occurred. Since assets represent the way in which funds have been employed, and liabilities and net worth represent sources of funds (i.e. funds borrowed) this means that:

-employment of funds = sources of funds. This balance in which for every debit there is a corresponding

credit, is the basis of the accounting procedure known as double-entry book keeping

Profit and Loss Account / Income Statement (US) The Profit and Loss Account presents the entity's performance

during the current accounting period. It measures the profit or loss for the period. Unlike the balance sheet which is dealing with the capital of the business the P&L is basically concerned with the performance of the business. Therefore the statement will show the firm's trading position in terms of its profitability for the whole twelve months of the financial year. The components of the P&L account are:

• revenue / cash from sales From this must be deducted: o cost of sales (raw materials, labour costs, overheads,

depreciation) What is left when these costs have been deducted are: o trading profits From these must be deducted o interest on loans This leaves: o Pre-tax profit Out of the pre-tax profit must be paid o Corporation tax

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leaving a sum available to be paid either as: o -dividends to shareholders or o -retained in the business To assess whether a gross profit or a loss has been made over

a period a company needs four figures: 1. the value of the stock at the beginning of the period 2. the cost of the stock acquired during the period 3. the value of sales made during the period 4. the value of stock remaining at the end of the period (at the price it

cost the company not at the price the company hopes to sell it for) The balance sheet and income statement are related to each other.

Your equity on the beginning balance sheet plus the profit (or minus the loss) from the income statement equals your equity for that period.

Cash Flow Statement The cash flow statement (CFS) shows how the movements in the

balance sheet from the previous year to the present one have been brought about, so it “ties together” two consecutive year-end balance sheets, illustrating the company’s ability to earn cash. It is a historic view of the flows of cash into and out of the business.

Many if not most of the features are the same as in the P &L account. Both statements show income and expenses. However, the bottom line on the Profit and Loss Account is not the same as in the Net Cash Flow. But why is this ? The answer is quite simple, the figures included in each are similar but they are not identical. The main differences result from how depreciation and certain payments are recorded. For example:

Income from sales is entered as it is received, not before. If a credit sale is made, the income is only entered when the actual bill is paid. In the P&L account, sales are applied to the accounting period in which the sale occurs. So a good sold in one period on credit, is entered as a sale for that period, even though the payment may not be due until the next accounting period.

In the cash flow statement expenses are entered as paid. In the P&L account , provision is made in accounts for expenses incurred but not yet paid, these are known as accruals.

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Another distinction refers to depreciation. As depreciation is a paper accounting transaction, not involving actual expenditure, this is not shown. In the P&L account, depreciation is shown as a business expense.

Also, capital inflows are recorded differently. If a business receives a further injection of capital that has not arisen from its trading activities then, this is shown in the cash flow statement as a type of income. The P&L account will only show an inflow of capital that has arisen as a result of trading activity.

VOCABULARY DEVELOPMENT 1) Find words/phrases in the text which have the following

meanings: a. money owed by a company; a debt b. an item of value belonging to a person or a company, such as

a share, a piece of land, a building or a machine, especially if it can be sold to pay a debt

c. a system of recording accounts where each sale or purchase is shown as having an effect on both the DEBIT COLUMN and the CREDIT COLUMN of an account

d. the amount of money put into a company by its shareholders when they buy shares and used to buy the items it needs to carry on its activities

e. money received from the sale of goods or services f. a gradual loss in the value of something, such as a vehicle, a

machine or any ASSET that wears out with use and age g. an amount charged for money borrowed h. an amount of money received from the sale of goods minus

the cost of manufacturing or buying them i. part of the annual profit that is not paid out to shareholders as

dividend, but reinvested in the company j. the profit obtained before tax has been deducted k. money taken by a government from the profits made by

companies and corporations

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Quiz: How to Analyze a Balance Sheet

1) Here are a number of essential business entries used on a balance sheet. Use the words listed below to decide which type of entry fits the definition.

(intangible assets dividends liabilities depreciation fixed assets distribution costs overhead variable costs advertising costs operating costs)

a. Payments made to shareholders based on company profits b. Equipment and other assets which generally loses value over

time c. Patents, ideas, trade marks, licenses d. Costs and money owed e. Property, equipment currently owned and not intended for sale f. Non-changing costs such as rent, lighting, heating, etc. g. Changing costs of employment, raw materials, etc. based on

rate of production. h. Costs related to encouraging consumers to buy a product i. Costs related to delivering goods to points of sale j. Day to day cost of running a business

2) The opposite of accounts receivable is...

a. Current Liabilities b. Long Term Debt c. Notes Payable d. Accounts Payable

3) Working Capital is...

a. Current Assets – Current Liabilities b. Current Liabilities c. Notes Payable d. Accounts Payable

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4) At least some of the capital surplus of any business is the result of...

a. Inventory Markdowns b. Treasury Stock c. Retained Earnings d. Bank Loans

5) What is the difference between Shareholder Equity and

Book Value?

a. They are the same thing b. Book value excludes intangibles c. Shareholder Equity measures only the net assets d. One is an asset, the other is a liability 6) Match each of the words in brackets with the correct

definitions below:

(debit, teller, withdrawal, balance, deposit, credit, cash, b.

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detailed account of the meeting. f) Your expenses can be paid straight into a bank account _________by you. g) The deposit account ________ a high rate of interest but withdrawals require 90 days’ notice. h) The account was ________ on the 15th of August and is now overdue. i) We enclose a debit note showing the amount due and look forward to the _______ of your account. j) I am _________ my bank account from the city centre branch to one nearer my home. k) The account will be ______.

Numeric response questions 1) If an insurance company purchased a bank with a book value

of $23,487,525 for $75,387,000 in stock and cash under the purchase method, how much Goodwill would the insurance company be required to put on its balance sheet?

a. $75,387,000 b. $63,028,480 c. $31,398,500 d. $51,899,475 2) If a large Jewelry store chain purchased a family owned

Jewelry store for $187,400,000 and the family retained 14.387%, what is the minority interest that will be put on the balance sheet?

a. $39,230,200 b. $26,961,238 c. $18,209,218 d. $14,210,094 BUSINESS WRITING

Payment

Advice of payment

We would like to inform you that we have arranged for a credit transfer through our bank, Banca Românească. The transfer is for € 3,650 in payment of invoice no. Re1825. Could you confirm the transfer has been made as soon as the correspondent bank advises you?

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Acknowledgement of payment

We received an advice from our bank this morning that your transfer for invoice no. Re1825 has been credited to our account. We would like to thank you, and ask you to contact us if you need anything else….

1. Complete the following business letter choosing the

appropriate word or phrase from the sample letters above. MODIFY its form where necessary.

Dear Mr. Savolainen We have instructed our bank to ____________(1) for a letter of

credit for € 4,850.92 to be _________(2) against your __________(3) no. Gl 1538 and the proceeds will be credited to you as soon as Finish Trust receives the documents.

Chasing late payments / bad debts

Summarize what has happened since the payment was due. Try to make the bad debtor guilty of his / her behaviour Remind him / her of your agreement Say what action you intend to take

2. Complete the following business letter choosing the

appropriate word or phrase from the list below. MODIFY its form where necessary. (remittance, undertake, cash flow, overdue, full, settle, debt, outstanding )

Dear Mr. James Re: Invoice 32448 I am writing to you once again regarding the above invoice,

dated 11 January , for the exhibition equipment we supplied to you. This invoice is still ___________(1)

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According to our records, we have not yet received your ___________(2) or a reply to our previous requests for payment, dated 18 February and 15 March.

Under the terms of our contract you _________(3) to settle within thirty days of receipt of our invoice. We felt, that as the owner of a small business yourself, you would appreciate the effect that late payments have on our __________ (4) and therefore, had expected to receive your remittance some time ago. However, as of today, your account is sixty days ____________(5).

We will, of course, be able to recover the _____(6) through the courts, which would involve you in additional legal costs. However I’m prepared to give you a final opportunity to ________ (7) your account. Unless I receive _____(8) payment within the next seven days, you will leave me no alternative but to put this matter into the hands of my solicitor.

Yours sincerely, Marin Ionescu Head of Financial Dept. GRAMMAR

Subjunctive

Structure

For all verbs except the past tense of be, the subjunctive is the same as the bare infinitive (infinitive without “to”):

be (past) be (present) all other verbs (past & present)I wereyou werehe, she, it werewe wereyou werethey were

I beyou behe, she, it bewe beyou bethey be

I workyou workhe, she, it workwe workyou workthey work

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Use Talking about events that somebody: • wants to happen • hopes will happen • imagines happening It may also express A demand, requirement, request or suggestion. The subjunctive is typically used after:

• the verbs: ask, command, demand, insist, urge, propose,

recommend, request, suggest + that • the expressions: it is desirable, essential, important,

necessary, vital, a good/bad idea + that • if, as if, wish, suppose In fixed expressions:

Bless you ( which means: May God bless you) Long live our gracious queen (The first line of the British National Anthem) Long live the bride and groom Be that as it may

Examples: • The manager insists that the main entrance be locked at night. • The board of directors recommended that she join the

company. • It is essential that we do something about it as soon as

possible. • The President requests that you be present at the meeting. • Romanian people demand that the troops be withdrawn • She acts as if she were Queen. The use of the subjunctive as above is more common in

American English than in British English, where should + infinitive is often used:

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• The manager insists that the main entrance should be locked at night.

• The board of directors recommended that she should join the company.

Subjunctive Quiz I 1) After each sentence, select the verb or verb string that

best completes that sentence. Caution: the subjunctive form will not be the best choice in all sentences.

a) Her employees treated Mrs. Ionaşcu as though she (is, be, were) a queen.

b) It is essential that she (was / is / be) at the meeting. c) I hope that he (finish / finishes/ finished) his job on time. d) The doctors recommended that she (take / takes / took) a

holiday. e) Suppose she ( is / be / were ) here. What would you say? f) I think it's an interesting fact that she (come/ comes / should

come) from Estonia. g) The landlord requested that John (moves, move, will move)

out of the apartment. h) We want the windows (to be / be / were) washed before

Saturday. i) She says that the government (regulate/ regulates) the airline

industry. I don't know if that is true. j) The office administrator demanded that the heater (repair /

repairs / was repaired / be repaired) immediately. k) It is important to remember that Janine (think/ thinks) very

differently from you. She may not agree to the changes you have made in the organization of the company.

l) The doctor recommended that she sees / should see/ saw an eye specialist.

m) The teacher insists that his students arrive / arrived / on time. n) I demand that she immediately (apologize/ apologizes) for

what she just said.

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Negative, Continuous and Passive Forms of Subjunctive Examples:

♦ The company asked that employees not accept personal phone calls during business hours.

♦ The President demanded that I be allowed to take part in the negotiations.

♦ I propose that we all be waiting in Andy’s apartment when he gets home.

2) Subjunctive Quiz II

a. The boss insisted that Mr. Predescu (be not / is not / not be) at the meeting.

b. It is important that you (are / be / is ) standing there when she gets off the plane.

c. We suggested that you (are / be / were) admitted to the organization.

d. It is crucial that a car (is / be / were) waiting for the boss when the meeting is over.

e. I suggest that you (don’t take /not take / didn’t take) the job without renegotiating the salary.

f. Jake recommended that Susan (is / be / were) hired immediately.

Financial accounting terms

How many of these questions can you answer?

1. Which of the following will appear as a current asset on a balance sheet:

a. Proposed dividend to shareholders b. Creditors c. Trade debtors d. Bank loans and overdrafts

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2. When Mrs. Petcu writes out a cheque for $100 and sends it to Electrica S.A., then Mrs. Petcu is known as the:

a. creditor b. drawer c. payee 3. Which of the following assets are intangible?

a. buildings b. machinery c. trademarks 4. An item can be reported as an asset only if it passes three

of the following tests.

a. item is valuable b. item is located in a building owned by the entity c. item is used by the entity d. the entity has ordered the item. e. item was acquired at a measurable cost f. item is owned or controlled by the entity. 5. Indicate whether the following statements about the

BALANCE SHEET of a corporation is true or false:

a. The amount reported for the paid-in-capital item is approximately the market value of the stock

b. Land is reported at approximately what it is worth

6. Capital accounts represent the owner's ......... worth in the business.

a. equity b. value c. net d. profit

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UNIT 12

FILING SYSTEMS

The most important rule for successful management of

information is: Be Consistent. Choose a system for each kind of filing you must do and follow it religiously. If you are moving into an office where a filing system already exists, learn the rules as soon as possible. The more information passes through your office, the more you need a logical system for filing it.

ALPHABETICAL FILING SYSTEMS In an alphabetical system, all information is filed in ABC order.

There are several types of alphabetical systems: − Alphabetical by Name is the system to use if you are

managing or organizing any type of business that involve clients. You may organize your system by a person’s last name, by first name of corporation, by case name, and so on.

− Alphabetical by Subject is useful when the information you are filing corresponds to a number of different topics. You may handle materials for several departments, or your office might deal with a number of products.

− Alphabetical by Location is helpful if you work with a number of branch offices or have sales regions over a broad area. You might list files alphabetically by state or region and then by city within those areas, or by city with clients or companies listed as subheadings.

NUMERICAL FILING SYSTEMS Depending on the amount and type of information you need to

file, you may find that filing by number makes the best sense. There are a few kinds of numerical systems:

− Consecutive Filing is useful when filing invoices or numbered forms of any kind. Numbers in consecutive files often begins with 0001 and range to 9999.

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− Digit Filing (Terminal Digit Filing, Middle Digit Filing) is based on six digits, and usually indicates the drawer, guide, and folder in which an item is filed.

− Chronological Filing is simply filing by date. This may be useful in a correspondence file or as a record of sales figures.

NON-PAPER FILING SYSTEMS In theory, today’s electronic offices have less and less paper to

file. Materials may be filed on microforms, stored on computer or filed on optical disks.

− Micrographics is the process of storing photographic reductions of documents.

− Computer Files are part of our software. We can save files to a hard disk, a floppy disk, or a tape. Depending on the software we have, we may have the option of consolidating large amounts of information, merging files, and creating management systems.

− Optical Disks can store large amounts of information, both printed and graphic. A CD-ROM disk can store nearly a quarter of a million pages of text.

(adapted from K.A. Zahler, Ellen Lichtenstein, “21st Century Office Assistant’s Manual”, The Philip Lief Group, Inc.1996)


1.Read the text again and specify whether the following statements are true or false:

a. The more information passes through your office, the less you need a logical system for filing it.

T/F

b. In an alphabetical filing system, all information is filed in ABC order.

T/F

c. Alphabetical filing system by location is useful if we work with branchoffices over a broad area.

T/F

d. Consecutive filing means to file documents by date. T/F e. Non-paper filing systems suppose information stored

on computer. T/F

f. A CD-ROM disk can store nearly a quarter of a million pages of text.

T/F

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GRAMMAR

GERUND = -ING verbal form = used in some particular situations: − as a subject; − after prepositions; − after phrasal verbs; − after certain verbs (deny, avoid, keep, suggest, dislike,

understand, etc.) − after can’t phrases; − after certain common phrases (it’s no use, to be worth, to

be/get used to/accustomed to 1. Transform the verbs between brackets into subjects of the

sentences:

E.g....................(to fish) is a profession, and..........(to angle) is a hobby.

Fishing is a profession, and angling is a hobby.

a..............(to deal) with figures is not a very easy job. b..............(to give) employees higher wages helps to increase

motivation. c..............(to fly) Business Class makes trips abroad less

stressful. d..............(to become) a fully-qualified doctor can take about ten

years. e. ...........(to find) a good job is rather difficult. f..............(to learn) foreign languages is a very pleasant pastime. 2. Use Gerund after prepositions in the following sentences:

E.g. She left the room without ............(to say) good-bye. She left the room without saying good-bye. a. He left university after............(to get) a good job in a good

company. b. She’s very interested in.........(to visit) foreign countries. c. He in sisted on..........(to see) her. d. I have no objection to............(to hear) the story again. e. They had a lot of difficulty in............(to find) the company. f. We managed to extend the house without..........(to take)

another loan.

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3. Use Gerund after phrasal verbs (verbs + prepositions/ adverbial particles):

E.g. He took to.............(garden) when he retired.# He took to gardening when he retired.

a. She went on..........(work) until late in the evening. b. I have seen the film, now I am looking forward to..........(read)

the book. c. They gave up........(work) inindustrial business and took

to.......(farm) d. I don’t care for.......(stand) here and......(wait) for them. e. Because of the strike they put off......(meet) on that day. f. They kept on.......(laugh) and.......(speak) until the end of the

meeting. 4. Fill in the blanks with the verbs given below:

PUNISH MEET BE LATE WAIT RESIGN TRAVEL

a. He didn’t want to risk........ so he left very early. b. They often try to avoid.............in the rush hours. c. He always resented..........his employees. d. They suggested...........for the manager. e. We can’t understand him...........his job. f. They don’t anticipate...........any opposition. Remember

Gerund + can’t phrases (can’t help, can’t bear, can’t stand, can’t resist, afford) :

5. Use Gerund of the verbs between brackets

a. She couldn’ resist.................(buy) a new car. b. They can’t help...........(laugh) at her story. c. He can’t afford..........(miss) such an opportunity. d. I can’t resist..........(help) them. e. She can’t afford..........(travel) business class every time.

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Remember

Gerund is used after certain common phrases, such as : it’s no good/use, to be worth, good at, to be/get used to/accustomed to.6...Fill in the blanks with the following verbs at gerund:

Tell work buy stay leave

a. He’s used to..................at night. b. There’s nothing here worth............ c. She’s accustomed to.................the office so late. d. He’s good at..............jokes at the parties. e. She got used to.................late at the company. BUSINESS WRITING

1. In business, letters of complaint are not unusual. Their purpose is to get better goods or service, or to effect a satisfactory adjustment of some kind. You are more likely to get what you want if you are polite in your letter. Nothing is gained by being sarcastic or insulting. So just state your case, say what the trouble is and how you expect it to be corrected. Be specific and to the point, but be pleasant about it. The sequence of the paragraphs is:

− refer to order − state reason for complaint − suggest possible causes of the problem − state action(s) you require the other company to take Fill in the blanks in the following letter of complaint with the

words given below:

error refund customers complaints protection complaining instructions shipment Gentlemen,

Many of our.............have been............about your ball-point pens. They are clearly not giving satisfaction, and we have had to...........the purchase price of many of them.

We have had trouble only with the last ............. .The pens received before were satisfactory and we had no.............. from customers.

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Please check to see if there was an.............in the making of these pens. We suggest that you check also to see if they are being packed with adequate ......................for shipping.

We have 8 thousand of the pens left, and we should like you to send us a new shipment at once to replace them. We will wait for.................from you before returning the others.

Sincerely yours, 2. The adjustment letters, in answer to complaints, must be

written without anger or impatience, very politely, to avoid further conflicts. One of the most effective way to disarm an angry person and win him over to your way of thinking is to admit a cause for complaint. Accusations only make things worse, as a rule. But being very reasonable and understanding about the whole thing, explaining how or why it happened, often settles the trouble pleasantly, and without loss of good will. Here are the stages of a reply to a letter of complaint:

− acknowledge the letter − apologize − explain the cause of the problem − action(s) taken to solve the problem − end optimistically Here are two models of letters of adjustment. After studying the

writing technique of these two letters, try to answer the letter of complaint under Ex.no.1, by an adequate letter of adjustment.

(1)

Dear Madam,

Thank you for your very courteous letter. We are sorry the furniture arrived in poor condition. It was

apparently damaged during shipment.

We are sending you another table at once, doubly well-packed, this time, to make sure it reaches you safely. The driver who delivers it will pick up the damaged table.

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We hope you have not been inconvenienced and that you will enjoy your purchase for a long time to come.

Sincerely yours,

(2) Dear Mr.Goodwill,

We’re sorry you found it necessary to return our last bill for correction.

You are right about the 15% discount, of course. But the $45 is not an error; it represents charges for air-express deliveries made at your request during the month of February.

We’ll take care that our accounting department makes no mistakes about the discount in the future.

Yours very sincerely, 3. Here are some jumbled paragraphs of a letter of adjustment.

Put them into the appropriate order according to the stages presented above:

Dear Madam,

a. However, your stationery is now ready and will be sent to you at once. You should receive it about the same time as this letter.

b. We can understand your annoyance at not having received the stationery you ordered on March 3rd.

c. We hope you will forgive us for the delay, and that you will thoroughly enjoy your purchase!

Sincerely yours,

d. Orders for printed stationery take three to four weeks for delivery; and our salesmen have been instructed to so inform customers. Apparently you were not told it would take long; and we are certainly sorry for the oversight.

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Unit 13

INTERNATIONAL TRADE IMPORT-EXPORT

International Trade is the process of exchanging goods or services between two or more countries, involving the use of two or more currencies. The benefits derived from the development of international trade are numerous, including a wider consumer choice and higher levels of consumer satisfaction. International trade increases competition and prevents the monopolistic control of the home market by local exporters.

Exporting today is a highly skilled and professional operation. Above all, the exporting results must be profitable and, accordingly, it is most desirable that the export personnel are of a high calibre, with language proficiency, adequately qualified and rewarded, to attain this objective. The export department has two main functions: marketing and shipping.

The former is responsible for sales, pricing enquiries, quotations, recording and checking orders, and other marketing functions such as promotion, research, etc. whilst the latter is responsible for transportation, customs duties and the relevant documents involved, packaging, costing for distribution, etc.

Overall, the export department’s objective is to ensure that the export order processes smoothly from start to finish to obtain complete customer satisfaction and produce a modest profit to the company.

DOCUMENTATION A typical export–import transaction may involve some or all of

the following documents and records. Quotation The quotation states: a) prices at which goods can be supplied

b) special export packing, handling c) terms including discounts

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available d) cost of carriage of the goods (freight costs) e) time required for delivery f) banking charges (service fees, interest) f) period for which the price will remain valid. Where the term “carriage forward” is used, this means that payment for transport will be the responsibility of the consignee. Where the term “carriage paid” is used, this denotes the carriage charges will be paid by the sender of the goods.

Pro-forma invoice – similar to a sales invoice except that it is headed “pro-forma”. It is not a record of sales effected, but a representation of a sales invoice issued prior to the sale. As it contains all relevant details, it is used for quotations to customers and for submission to various authorities. When used as quotation the pro-forma invoice constitutes a binding offer of the goods covered by its price and condition shown.

Purchase Order is a request by an overseas buyer to be supplied with goods or services.

Export Order acceptance by which the exporter agrees to accept order only if customer will pay by confirmed letter of credit.

Letter of Credit (L/C): a written undertaking from a bank, at the request of its customer, the Importer (Applicant) that it will pay the beneficiary (Exporter) so long as he meets the conditions of the credit. A Letter of Credit is also commonly referred to as a Documentary Credit.

The main points: an agreement between banks (not buyer and seller). contract from buyer to seller (not the other way around) requires proof of specific acts of performance uses credit line, or ties up cash flow the wording must match exactly the terms of the credit

Commercial Invoice: is an accounting document through which the Exporter claims payment from you, the Importer, for goods and services purchased. It provides details about the goods and/ or services (size, quantity, shipping marks and numbers etc.) as well as the trade terms (CIF, FOB etc.). It shows practically who shipped what to whom. Where there are several packages in one consignment the invoice is usually accompanied by a packing list.

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Packing list indicates which goods are in each carton and since the cartons are numbered this facilitates Customs inspection. The numbering in a six-carton consignment should read 1 of 6, 2 of 6, etc.

Consular Invoice. This applies particularly in South America. The reason may be concerned with the country’s need to control foreign exchange to ensure that only essential goods are imported.

Insurance certificate is a proof that the goods are covered for risk of damage or loss during transit and is often asked for in the documentary credit (L/C)

Bill of Lading is one of the prime documents which ensures the exporter gets paid for his goods It serves three major purposes:

Contract to deliver the goods; Receipt from the ocean-carrier for the goods shipped; Becomes certificate of ownership. It is a document having the

force of law. House Bill (of Lading) B/L is issued for a full container load. If

the load has to be broken up at destination for a number of different customers than, a house bill is issued for each consignee receiving part of the load.

Certificate of Origin (c/o) is prescribed by certain countries as a condition of importation. Whether or not goods are being imported form an embargoed nation. It may be issued by the exporter himself or by a Chamber of Commerce or Consular authority, as specified. Its true function is to help identify the origin of goods for the purpose of levying duties and taxes. It has a further purpose in so far as it is often used as a means of collecting statistics.

Airway bill (AWB) a receipt for dispatch of goods transported by air detailing all the information about the flight and destination. It is non-negotiable so it does not carry the same validity as a bill of lading for sea transport.

Certificate of Health- Agricultural and animal products require a certificate stating that they comply with the health regulations in the importing country.


1. Find words/phrases in the text which have the following meanings:

a. having or requiring a particular talent or ability b. the coins and banknotes that belong to a particular country

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3. Where a freight forward operating a groupage service takes small consignments from exporters and consolidates them into a full container load for a number of consignees? What documentation should he also prepare?

a. bill of lading for the consignor b. house bill for the consignor c. house bill for each consignee d. bill of lading for each consignee

4. Which one of the following can be a document of title

enforceable at law?

a. House bill c. Airway bill b. CMR consignment note d. Bill of Lading 5. If the Romanian currency were to rise sharply against

other world currencies, the probable effect on the Romanian economy would be to:

a. make imports cheaper b. make exports cheaper c. Increase the price of products made in Romania d. encourage foreign tourism in Romania. BUSINESS WRITING

Apology for delay in shipment 1. Complete the following business letter choosing the

appropriate word or phrase from the list. MODIFY its form where necessary. Not all the words should be used. Use standard English spelling:

(to allow, to want, to cause, sell, unloading, stroke, to buy, to contact, to be able to, to be, to make, to serve, to cancel, delay)

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Dear Mr. Boyanov

I’m sorry that we have not ____________deliver as scheduled your shipment of rugs from India. Unfortunately, the dock workers’ strike in Contanţa has prevented the ___________ of the ship. I expect that the strike will be over soon and that we can deliver your shipment within the next month.

I apologize for the __________ and inconvenience this __________ you. I will notify you as soon as the strike _____ over.

Yours sincerely Marin Nedelcu Shipping Dept. Apology for damaged shipment

2. Complete the following business letter choosing the appropriate word or phrase from the list. MODIFY its form where necessary. Not all the words should be used. Use standard English spelling

(to order, to want, to cause, to sell, to purchase, to tell, to contact, to be able to, to be, to make, to arrive, to serve, to cancel)

Dear Mr. Boyanov, I’m sorry to learn about the damage to the sofa that you

_________ from us last month. Our driver has determined that the damage occurred in shipment (most likely from the manufacturer’s warehouse to our store).

I’ve ordered an exact replacement from the factory, and I’ve been____________that it will take four to six weeks to get here. I’ll call you as soon as it_____________, and we will arrange a convenient time for delivery.

I am sorry for the inconvenience this ___________you. I’ll be in touch very soon.

Sincerely, Bob Chamberlain Manager

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VOCABULARY DEVELOPMENT Business idioms

1. Match the verbs on the left with the nouns on the right to form common banking collocations

1. purchase a. bills 2. open b. funds 3. earn c. an account 4. make d. a deposit 5. withdraw e. financial data 6. pay f. goods 7. transfer g. cash 8. download h. interest 2. Replace the words in italics with expressions from

exercise above

a. Just by using the keypad on your phone, BCRPhone Banking lets you __________________ settle invoices from wherever you are.

b. The BRD Euro Account allows you to _______________ buy products in local currencies without paying any exchange rates.

c. All you need is a modem or Internet connection to _______________ transfer account information onto your personal computer.

d. You can __________________put money into your account by post at Bankpost branches.

e. Online banking services lets you ______________ move money from one account to another quickly and easily.

f. The Citicard allows you to _______________take out money from cashpoints around the word.

g. With Citibank, you can______________receive a percentage on your current account balance.

h. Just fill out and return the application form or call a Ţiriac Bank representative to __________________ set up a banking arrangement.

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Banking collocations Account (bank)

Adjectives: Current/ checking account; Deposit account, Savings account; joint account, open account, interest-bearing/ paying account, numbered account, healthy~

Verbs: open, have, credit, debit, add sth to, close, publish, draw

on, keep, overdraw, pay sth into ~ Verbs: is in the red/black; is overdrawn/in credit Noun; holder, deficit 3. Choose the pairs of words (collocations) listed above that

best fit the context

a. Transilvania bank has launched a (an) ……………….. ………. for small businesses and charities. It allows up to ten free withdrawals a month.

b. I am not sure if the two spouses hold a … ……………with our bank.

c. Business is slow, our …………………..is……………… ….. d. He has admitted that he has money in his

………………………….. but still he said he would not pay. 4. Choose the best verb to complete each sentence

1. The bank is charging / providing /giving/requesting/ a minimum rate of 9% for the loan.

2. They paid / awarded / gave / credited the money to his wife’s account.

3. Some cash machines give / make / reveal / sell information about accounts.

4. It may be easier to refund / draw / take / remove money from your account than to pay money in.

5. She put / paid / deposited / placed the cheques in her account.

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Confusing financial terms 5. Choose the correct word to finish the phrase or question:

a. I haven't got enough money for lunch. Could you borrow/lend me some?

b. How much does she earn/gain in her position? c. It was a very good dinner. Can we have the account/bill

please? d. We expect prices to raise / rise by at least 4 percent. e. We only exchange goods if you produce a receipt / recipe. f. He's an excellent doctor, but he doesn't charge/spend too much. 6. Complete the sentences below by inserting the right

derivate of the verbs in brackets

The first has been done for you : The contract is not negotiable (to negotiate) a. We charge each ……………………..a fee of €50 to arrange a

loan (borrow) b. We are looking for a ………………..who offers reasonable

interest rates. (lend) c. I think that our……………………..is now under control.

(borrow) d. This year we will pay a ……………of 1 RON per share

(divide) e. To get the loan we had to use our brand new Toyota as

……………..(secure) Polysemantic words 7. How many meanings or senses do you know for the

following English words?

How are they translated in the different contexts presented below?

Account Bank Head Share Enterprise Performance

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Have you kept an account of expenses? Our suppliers must account for the delay. The salesman was visiting one of his most important accounts. Put it on my account. Please give me a detailed account of the meeting. I asked for the goods to be charged to my credit account. You need to take into account the quality as well as the quantity of goods produced. Exports account for 42% of sales.

My salary is paid into the bank. Do you bank with Bankpost? The bank was steep and overgrown. I know I can bank on her. We need to bank that cheque today to avoid being overdrawn. I don’t have a bank account yet.

Have you hurt your head? She’s head of the accounting department. I’ll meet you at the head of the valley.

The computer company has a 25% market share. The price of

shares rose today on the Stock Exchange.

We are going to start up a new enterprise. She has great enterprise and is sure to make the business work. Romania is now an economy based on free enterprise. The government plans to make Giurgiu into an enterprise zone. The great majority of the companies all around the world are SMEs (small and medium sized enterprises).

She was fired on account of poor performance. Care must be taken in the performance of these tasks. How can we improve our sales performance? More and more companies are adopting a system of performance-related pay. We watched a musical performance yesterday.

8. Complete the sentences below by inserting the right

business idiom in brackets:

(In the red, to break even, to carry over, to go over the books, to write off, to keep books)

a. The new manager has no experience to ……………. and has made many mistakes.

b. After only two months the company was able to ………….and started to make a profit.

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c. The company’s final results put it seriously …………. and a sharp fall in its share price has taken place.

d. Our company is facing difficult times and we must …………. last year’s losses to this year.

e. We hired an auditor to …………………… f. It was impossible for the bank to collect the money so they

were forced to …………. the loan.

Idiom Quiz

9. Choose an idiom to replace the expression in the brackets:

a. The large drug company (took control of) the small drugstore chain.

1. took over 2. took stock of 3. turned over 4. sold out

b. After the earthquake the company was forced to sell most of their merchandise (and lost much money).

1. by a long shot 2. at a loss 3. in black and white 4. in the long run

c. The price of oil (reached its lowest point) in July and began to rise soon after.

1. cut corners 2. closed out 3. broke even 4. bottomed out

d. We closed the store early in order to (count the number of items we had).

1. take stock 2. run short 3. buy out 4. gain ground

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UNIT14

THE STOCK EXCHANGE

Securities markets are the marketplace wherein investors can

conveniently invest in stocks and bonds. They provide investors with a convenient means of disposing of their stocks and bonds as well as purchasing new ones. They operate amazingly fast- The New York Stock Exchange boasts that once the order to sell has been placed, it can take less than one minute to dispose of a stock such as IBM. Contrast this with an investment in real estate – which can take months or years to dispose of- and the usefulness of securities markets is readily apparent.

The most important marketplaces for the stocks of the largest corporations in the United States are the stock exchanges. A stock exchange is an organization whose members join together and provide a trading room where members can meet to buy and sell securities for their customers. Stock exchanges provide a key service: they organize all the information that exists, at any one moment, about the prices at which investors are currently willing to buy and sell particular stocks. Thus, the stock exchanges save investors and their brokers the trouble of shopping around (it should be noted that stock exchanges do not hold an inventory of stocks for sale; they are merely a place for matching a buyer and a seller) …Most stocks are purchased from other investors, at prices that are determined by the ups and downs of investors’ enthusiasm for the stocks, as expressed through the workings of the stock exchange. The value of a stock goes up if investors are willing to pay more for it, and this gain in value goes into the pocket of the present owner of the stock – not the company in which it is a share. This return on investment falls into the capital appreciation – growth in the value of an investment over time. Investors base their valuation of a stock on the amount of dividends it

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pays: by watching changes in dividends, they can make assumptions about the profits the company is making, for it is out of those profits that the company pays dividends. If investors foresee that the company’s earnings are likely to increase tomorrow, they will try to acquire shares in that company today, thus bidding up the price of the company’s stock…

But there is also another very important kind of marketplace for stocks and other securities – the over – the – counter (OTC) market. In this market there is no single trading floor where transactions occur. Instead, the market consists of a network of about 250,000 registered stock and bond representatives scattered across the country, who trade with each other by telephone or teletype. They provide stocks to their customers by holding stocks in inventory. They also stand ready to purchase stock from their customers (at a price of the dealers’ choosing) , and thus they are said to “make a market” in that stock. The New York Stock Exchange (NYSE) is the largest of the nine stock exchanges now operating in the United States. It accounts for about 81 percent of he trading on all the exchanges. The American Stock Exchange, or Amex, also located in New York City, is the next largest, handling roughly 7 percent. These two exchanges-NYSE and Amex – are sometimes referred to as the national exchanges. This is because the trade primarily in stocks of companies that operate throughout the nation.

Besides these two national exchanges, there are the regional exchanges of different American cities. Regional exchanges tend to trade the stock of companies that do business only in their areas. Some stocks are traded on a national exchange and on several regional exchanges as well. U.S Steel stock, for example, is traded primarily on the New York Stock Exchange, but it’s also available on all the regional exchanges.

There are stock exchanges in all major cities of the world, including London, Paris, Hamburg, Tokyo and Toronto. The world’s oldest exchange, founded in 1611 when the Dutch East India Company sold its shares to the public, is in Amsterdam. Each of these exchanges specializes in the securities of its national companies. However, some U.S. companies that do substantial business abroad now trade on these foreign exchanges (IBM, for example, trades in

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both London and Tokyo) , and some foreign companies (Sony of Japan and Holland’s Royal Dutch/ Shell) trade on U.S. exchanges. The over- the- counter (OTC) market provides a means to trade stocks not listed on the national securities exchanges. The OTC market is made up of a network of several thousand brokers. These brokers maintain contact with each other and buy and sell securities for the public. A nationwide electronic system communicates trades to the brokers. The system is known as the National Association of Securities Dealers Automated Quotation system (NASDAQ- pronounced “nazz-dak”) .

Originally the over-the- counter market dealt mostly with small firms that could not qualify for listing on the national exchanges or did not want to bother with the procedures. Today, however, well-known firms such Apple, MCI, and Coors prefer to have their stock traded on the OTC market.

The over- the- counter market also handles most corporate and U.S. government bonds as well as many city and state government bonds. Common stock of most insurance companies and banks as well as the stock of many smaller firms is traded over- the- counter. If you look in the Wall Street Journal under “NASDAQ Bid and Ask Quotations” you will see that the price of over- the-counter stocks is determined by supply and demand as reflected in “bid” and “ask” prices.

There are some other types of securities, such as: − stocks − bonds − debentures − A bond is a document issued by a government or a company

borrowing money from the public, stating the existence of a debt and the amount owing to the holder of the document, called a bondholder, who must use the document to obtain the repayment of the loan. There are different types of bonds like: tax-free bonds, revenue bonds, so on. A debenture is an acknowledgment of a debt, usually in a form of a deed (document under seal) by a company or public organization and secured by a trust deed protecting the rights of a debenture-holder. A debenture represents a separate debt of a fixed sum of money.

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− A debenture stock is the borrowed capital of a company or other organization, with all or some of the borrower’s property promised as security by a trust deed. A debenture- stock certificate represents part of one large debt, and thus differs from a debenture. The debenture stock is usually not redeemable and is registered in the owner’s name. The stock holder has the right to be paid debenture interest before any dividends are paid on the equity capital (shares) .

− -A share is a particular separate part or portion which the capital of a company is divided, thus, e.g. a company may have a capital of 1 million pounds into two million shares of 50p each. Ownership of a share gives the owner, called a member or a shareholder, the right to receive a share in the profits of the company and to share in its management. The main clauses of shares are; ordinary shares; deferred shares; preferable shares and founders’ shares; but there are many variations of these. Shares can be bought and sold on a stock exchange in lots or parcels according to their price. In a limited liability company, the liability of the shareholder is limited to the amount of their share in the company. In the U.S.A, although the capital of a stock corporation, the equivalent of a company, is divided into shares, they are called stock and their holders are called stock holders.

− A stock is a portion of those debts of a company that consists of money lent to it. The stock can also a fixed-interest security issued by the government of a country or by a local government authority.

− (Adapted from Business Today by David J. Rachman& Michael H. Mescon, Fourth Edition, Random House, 1984;


1) Say whether the following statements are True or False according to the text:

a) OTC is a National Association of Securities Dealers Automated Quotation system;

b) OTC provides a means to trade stocks not listed on the national exchanges;

c) A stock exchange is an organization whose members join together and provide a trading room where members can meet to buy and sell securities for their customers;

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d) The world’s oldest exchange was founded in 1611 in London; e) NASDAQ is the National Association of Securities Dealers

Automated Quotation system; f) NASDAQ can’t revolutionize stock trading; g) NYSE and Amex are sometimes referred to as national

American exchanges. VOCABULARY DEVELOPMENT

1) Find in the text words/ phrases that mean:

a) An organization whose members join together and provide a trading room where members can meet to buy and sell securities;

b) A portion of those debts of a company that consists of money lent to it;

c) The National Association of Securities Dealers Automated Quotation system;

d) A document issued by a government or a company borrowing money from the public and stating the existence of a debt;

e) An acknowledgment of a debt, usually in the form of a deed (document under seal) by a company or public organization;

f) Two American national exchanges. 2) Explain what a stock exchange is and speak about the

stock exchanges both in the world and in Romania. 3) Read and translate into Romanian the following excerpt.

Identify the following words in it and give their definition in Romanian: Financial centre; City: Square Mile: Wall Street; Trade; Securities; Bonds; Commodities: Currencies; foreign exchange; forex; stock; stocks; equities; blue chip shares; blue chip stocks; blue chips.

Financial centres

Stock exchanges are found in financial centres. New York’s financial centre is, of course, Wall Street and London’s is the City, also referred to as the Square Mile.

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Things traded in financial centres include: Securities: shares and bonds, investment certificates with a fixed

rate of interest. Commodities such as cereals and precious metals. Currencies such as dollars, pounds, and francs on the foreign

exchange or forex markets. Shares are also called stock, stocks, or equities. Blue chip shares, blue chip stocks, or blue chips are the safest

share investments in leading companies. (Adapted from Key Words In Business Helping Learners with real

English by Collins Cobuild) 4) Fill in the blanks:

a) The financial….of the shareholders is limited to the value of

their shares; b) Shares yield a dividend,….yield an interest; c) The accountants of the company are checked every year by….;d) If you cannot attend the meeting in person, you may vote by….; e) you are hereby….that the meeting will be held on March 2nd; f) The official address of the company is that of the….Office; g) When the market price of a share is the same as the price printed on it, the share is said to be….

SPEAKING 1) Answer the following questions:

a) Can you mention three legal types of firms? ;b) Can you mention two different kind of securities?; c) What is the difference between a company and a society?; d) What else can you say for “to create a company”?; e) What does the expression to “chair a meeting” mean?; f) What are the two meanings of the word “ a vote”? (Answer in Romanian); g) Can you define bulls and bears (on the Stock Exchange)?

(Adapted from Commercial English in 40 Lessons by Michel Marcheteau, Jean Pierre Berman and Michel Savio, Editura Niculescu, 2003)

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BUSINESS WRITING Contracts In business, a contract represents a mutual understanding among

two partners, concluded in a binding legal form. Here are a large variety of types of contracts: -Sales Contract (or Sale purchase Contract)

− Contract of Agency − Leasing Contract − License Contracts, so on. According to local traditions and customs, the contact in

business may take different forms. In Japan, for example, a simple verbal understanding is enough to arrange a business. But, in the most cases, the businessmen prefer to conclude a contract as a written document. Such a document is always safer, in special in a situation of disagreement between the contracting parties. Whatever of its forms, the contract comes into force from legal point of view only when it bears the signatures of both seller and buyer. As a rule, the object of a Sales Contract is the transfer of property over certain goods from the seller to the buyer, at a price agreed upon by them. The Preamble of a Sales Contract commonly contains: number of contract, place and date of its conclusion, contracting parties, their names and legal addresses. A Sales Contract has different clauses, such as: the Quality, the Quantity, the Packing and Marking Clauses, the Price and Terms of Payment ones, the Insurance and the Force Majeure Clauses. In this fragment, I am going to describe these clauses briefly. Every contract of sale indicates the quantity of goods sold/bought. Commonly, the nature of goods or commercial practice in different branches determine measuring units used in a contract. Thus, quantity is expressed in units of weight, length, area/surface, volume (capacity) , number of pieces, etc. The quantity must be indicated in exact figures. It also contains precise provisions concerning quality of the goods. The quality is designated by brands, trade-marks, international and local standards, samples, so on. The goods’ quality is attested by a quality certificate, issued by the seller or by a quality control organization, mentioned in the contract. The Packing Clause is about

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the proper packing of the goods according to the contract. The marking of the products should be according to the buyer’s instructions and identical with the marking in the shipping documents. The Price Clause must show the amount of money for which an article or commodity can be bought or sold. The world prices are based on the international value of goods. They are established relying on a great volume of transactions under the law of value in force. The Payment Clause stipulates the terms of payment under which the goods are supplied. It should include elements like: place of payment, the method of settlement, the methods of payment, the currency and a bank guarantee. Finally, the Insurance and the Force Majeure Clauses refer to the safety of the transactions in case of accidents or other unpredicted situations. In the last cases, either one or both parties may be excused from performing his/ their part of agreement.

− A Contract of Agency is an agreement between a principal and an agent by which an agent has to sell the principal’s goods.

− A Leasing Contract is an agreement in writing by which one person gives another one the right to use his/ her property, usually for a fixed number of years, in return for either a single sum of money called a premium or a series of regular payments called rent. The person giving the lease is called lessor and the person to whom it is given is the lesee or tenant.

− A License Contract consists of: 1) a formal permission in writing from an authority recognized by law, to perform an act which without permission would be lawful; e.g: an import/ export/driving/ building license; 2) the usage of someone’s property; 3) permission given by the owner of a copyright to reproduce an article, such as a book or work of art; or by the owner of a patent, to use a process or to produce an article under license.


1) Answer the following questions:

a) What is a contract? b) How many types of contracts in English do you know? c) What is a sales contract?

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d) How many clauses does a sales contract have? e) Name some of these clauses of a sales contract and describe

them briefly. VOCABULARY DEVELOPMENT 1) Find in the text words/ phrases that mean: a) A mutual understanding between two partners, usually in a

written form; b) The transfer of property over certain goods from the seller to

the buyer; c) The first part of a sales contract; d) The different parts contained by a sales contract; e) The money expression of a good’s value; f) The conditions regarding prices, discounts and payment under

which the goods are supplied. 2) Match the terms on the left (A) with those on the

right(B):

A B 1) A contract is a… a) …. must show the amount of

money for which an product can be bought/sold

2) A Sales Contract refers to …. b) … brands and trade-marks 3) The first part of a Sales contract is called…

c) the Preamble

4) The quality of a product is d esignated by..

d) the transfer of property over certain goods from the seller to the buyer

5) The Price Clause …. e) a written understanding-between two partners

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3) Read and translate into Romanian the following types of Agreements in business letters:

I) A Covering Letter:

We have set our arrangements in a formal agreement which we are enclosing, signed, with this letter.

If the terms of the agreement meet with your approval we should be glad if you would return one copy duly signed to us.

II) An Agency Agreements: We, the undersigned,….have appointed Mr… of… as our

representative for….under the following conditions. a. Mrs…, undertakes to obtain orders in our name and for our

accountant at the prices and conditions quoted by us. b. We undertake to allow Mr…a commission of…% on all

orders transmitted by him and reimburse him for all expenses incurred c. Mr….agrees not to represent any competitive firm during the

period for which this agreement remains valid

III) A Collection of Royalties: An agreement made the….day of…. between….(hereinafter

called “the Author”) and the COPYRIGHT PROTECTION SOCIETY OF…(hereinafter called “the Society”) .

1) The Author hereby appoints the Society as his/ her Sole Agent for the collection of all fees, royalties or other sums of money that may now be payable or at any time hereafter may become payable to the Author in respect of the copyright or his/her works during an agreement.

2) In consideration of the services to be rendered by the Society to the Author, The Author hereby agrees for the Society to retain as a commission a sum equivalent to…% of all sums of money collected by the Society on his/ her behalf (Adapted from English For the Economists by Lavinia Croitoru Fediuc)

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SPEAKING 4) Explain the differences among the above-mentioned

contracts. Can you give some other examples of different types of contracts?

GRAMMAR

Final revision The Gerund can be used as the subject of a sentence, like in the

following examples: Skiing is enjoyable (general meaning) ; No smoking (prohibitions) ,so on. The gerund can be used after prepositions, such as: After swimming I felt tired.

1) Turn the following short Infinitive verbs into Gerunds in

the following sentences:

a) I have read the book, now I am looking forward to…(see) the film.

b) He took to…(garden) after he retired. c) They gave up…(ski) and took to….(farm) . d) I don’t care for….(stand) and (watch) the football match. e) She insisted on (to see) me. f) They are good at…(relate) different stories. 2) Read these sentences carefully and put the following

Infinitive verbs in brackets at the right tense:

a) I usually teach literature, but I (teach) grammar this year b) You (hear) from your daughter? c) I (be) in Oxford for almost a month now d) He (have) a wonderful time at that party yesterday e) When she (arrive) at the theatre, the play (begin) f) Before we (reach) the stadium, the coach (already, arrive) g) It (be) an excellent football match tomorrow evening on T.V. h) He (play) tennis with his father as soon as he (come back)

from his office

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i) Before the ball, he (meet) his friends in a Romanian traditional pub called “Carul cu Bere” j) He (find) out that he can learn a lot just by visiting other

foreign countries. 3) Use the grammatical constructions There is/ There are in

different Affirmative, Interrogative and Negative sentences. 4) In the following sentences choose the best phrasal verb

(verb+ preposition/ adverbial particle; e.g: to look for something; to run into somebody, so on)

a) I agree, and if they criticize you at the meeting, I will back you (up; down; out; in)

b) Could you ring TAROM and find (up; over; in; out) details about our next flight?

c) Work is always so much better if you have a manager you (get; carry; take; hold) on with.

d) Power PCs are expensive, but if you wait, prices will (back; run; turn; come) down .

e) By the way, I (looked; turned; came; ran) into Mary in Los Angeles, and she sends you her regards.

f) What words are you (looking; asking; waiting) for in that dictionary?

5) Put the verbs in brackets at the correct tenses. Give

several variants where possible for the following If Clauses:

a) If there (be) any problem, I’ll contact you. b) If you (not run) , you (be) late. c) We (play) in the school yard if we (have) a longer break. d) If you (not tell) me the truth, I’ll punish you. e) If foreign aid (dry up) , the situation (be desperate). f) If the weather (be) fine, we (leave) to the seaside. g) If he (wake) up early in the morning he can catch the train. h) I (speak) to him if I (see) him.

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6) Change the following sentences from Direct into Indirect Speech as in the following example.

“ I like Economics”- She said she liked Economics a) Who is the woman dressed in black? (I asked my wife) b) The conference will bring about greater international

cooperation (the Prime- Minister considered) c) It is still raining (the weather report I was reading said) d) What day is it? (I asked) e) The judge will decide the case next week (Lucy rang and told me) f) I defy you to prove I have lied to you (I told him) g) Deeds are better than words when people need help (my

grandparents taught me) h) I’m not coming with you….and that’s my last word! (Paul

declared)

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UNIT 15

FINANCIAL MANAGEMENT SOURCES OF FUNDS

Successful business needs: workforce money materials

Money is needed: to pay for raw materials for making goods to meet running costs; everything from rate demands, pencils

and wages to electricity bills, paper clips and petrol This is “working capital” needed to keep the business running. Money is also needed to keep the business in business and able

to grow, in other words to: Build new factories Extend existing ones; Buy machinery, equipment and transport; To replace or renew outdated or worn out equipment

This is “fixed capital” needed to keep the business properly equipped and able to develop.

Where the money comes from depends on what it is for and how long it is needed.

The four main sources are: Money earned from the sale of goods or services, retained and

ploughed back into the business; Money specially set aside to replace particular items of

equipment; Selling assets not essential for running the business; Borrowing from banks or shareholders.

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Working capital for day-to-day expenses is needed all the time; fixed capital is needed when major items of expenditure are planned. Thus working capital will usually be met by money retained in the business while fixed capital will largely be met by borrowing.

Although customers eventually pay for the goods produced or services rendered, there may be a long time between paying for the raw material needed to make the goods and receiving payment for them. Workers have to be paid until the end of the month even if the goods they made are not sold until the following month. Meanwhile the business is “out-of-pocket”. The money has to come from somewhere just to keep in business. Ideally this out of pocket period will be covered by money kept in the business.

If costs rise very fast, the money kept in business may not be enough to cover it so money may have to be borrowed just to keep going. This is a problem of liquidity, of not having enough cash “liquid” or “on tap” as it were, to meet immediate needs. When this happens cash may have to be borrowed to meet these immediate needs.

This creates a new problem since future earnings form sales must cover the cost of borrowing the cash and paying it back over an agreed period.

SOURCES AND USES OF SHORT-TERM AND LONG-TERM FUNDS

The choice of a source of cash for borrowing will depend

upon such considerations as: Interest rates; Length of loan; Repayment terms; Conditions of loan-security to back loan, etc.; Amount needed.

In general, loans can be divided into short-term and long term. Short-term is usually one to five years, long-term over five years. The principal sources are as follows:

Short term (1 to 5 years): Creditors; Banks; Hire Purchase; Merchant Bank or Finance House, Leasing

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Long (over 5 years): Leasing-Banks; Merchant Bank or Finance House; Retained Profits; Share Issues; Government Agencies (Finance for industry, grants, etc)

An alternative way of looking at sources of finance is to consider those which are internal to the company and those which are external.

Internal sources

a) Long term Profits retained in the business

b) Short term Cash budgets for the forthcoming year will reveal any

surplus arising during the year; Dividend policy-the level of dividends could be reduced

to conserve cash; Tax reserves (which do not have to be paid immediately); Within a large company or group some divisions may

have surplus funds which could be transferred to meet shortages elsewhere; The time given to customers to pay for sales could be

shortened; The company’s debts could be sold to a factor for

immediate cash at a discount, leaving the factor (a third party) to collect from the customer, The time taken to pay suppliers could be extended; Sale of surplus assets which are not required for present

operations; Sale of free hold property under a sale and lease back

arrangement to realize the capital value of the property. External sources a. Long term

Preference shares. These shares usually have a fixed rate of dividend and their holders are paid in full before the ordinary shareholders receive anything. To persuade people to invest in preference shares the fixed interest is normally a

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little higher than that yielded by investments in Government Stock. Ordinary shares. Generally these shares carry no fixed

rate of dividend and investors receive a share of the profit only after all other claims have been met. Deferred shares. Holders of deferred shares rank for

dividend after the ordinary shareholders have had a percentage of the profits. Loan. Raising a fixed interest loan repayable after a

period of years. Debentures. Are fixed interest security given in return for

a long-term loan. Debentures are not shares and the holders are creditors, and not members of the company, like the shareholders.

b. Short term Bank overdrafts; Hire Purchase; Other loans. There are various other bodies that will offer

loans over short to medium term, e.g. Pension Funds, Insurance companies etc.


1) Which of the following statements are true and which are false according to the reading text? Mark each answer by “T” or “F”?

T. F. a. The most common type of spontaneous financing is a

commercial bank loan. b. Stretching accounts payable is a cost-free method of financing

a business. c. Trade credit is a system of barter or exchange of "credits"

instead of cash. d. To accelerate the turnover of receivables, a firm may either

shorten the discount period or increase the discount offered. e. A practical alternative in collecting past due receivables is to

use the services of a collection agency.

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2) Place the following assorted items under the appropriate headings:

Bank overdraft Retained profits Hire Purchase Leasing Factoring Share issues Bank loan Sale and lease back agreement

Internal sources External sources short term

long term

short term

long term

VOCABULARY DEVELOPMENT 1) Find in the text words/phrases that mean:

a. A regular cost of running a business, e.g. rent, salaries, heat, light, etc.

b. Unmanufactured material, material from which something is or may be made.

c. An item such as land, a machine, a building or a vehicle belonging to a business and expected to last a long time.

d. A written or printed list of charges or money owed for goods and services.

e. The money and stock of goods held by a business and used to produce and sell more goods, i.e. to continue trading.

f. To use the profits made by a business to buy new equipment, etc to improve and expand the business.

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g. An item of value belonging to a person or a company, such as a share, a piece of land, a building or a machine, especially if it can be sold to pay a debt.

h. Having no money available; out of funds. i. Made readily available in large quantities. j. An act of repaying someone or something; payment back of

money. 2) Look at the words in the box. Refer to the text to see how

they are used. Then match the words with their correct definitions.

overdraft sale and lease back agreement leasing retained profits shortage savings return on capitalsecurity interest factor hire-purchase

a. An arrangement whereby property, machinery, etc is sold and

then taken back on a lease. b. A situation where there is not enough of something. c. A debt with a bank arising from drawing more from an

account than the account holds; bank’s authorization for an account-holder to incur such a debt.

d. The cost of borrowing money expressed as a percentage of the capital borrowed.

e. Part of the annual profit that is not paid out to shareholders as dividend, but reinvested in the company.

f. A way of buying goods where the buyer takes the goods and pays for them in regular instalments over a fixed period of time. The goods can be reclaimed if the payments are not made, but at the end of the fixed period or after a certain number of payments the goods legally belong to the buyer.

g. Property or an item of financial value (an ASSET) that can be claimed by a person, bank or other organization if a loan is not repaid.

h. To grant or obtain the use of property, land, machinery etc for a fixed period.

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i. A person who buys the right to manage the debts of a /(an export) company by paying for goods as soon as they are supplied, charging the company a fee, and collecting payment from the customers.

j. Sums of money saved on a regular basis, often by means of economizing.

k. The profits of a business shown as a percentage of total assets less total liabilities.

• Collocations / word partnerships

MONEY

Our investment will still make money. He could raise enough money from the sale of those assets. Money market rates strengthened as a result of the election. The big question is how much money you can make out of this

business. This CD provides unbeatable value for money. Most manufacturers usually provide a money back guarantee. I’ve just run out of money and I’m going to withdraw $100

from my bank account. GRAMMAR

Prepositions

1) Complete the sentences with the correct prepositions a. Sales have increased …………… 25% over the last three months. b. The decrease …………. Profits is due to the bad market.

The increase in salaries is around 4%. (in + noun) There was an increase of 5%. (of + number) Inflation has increased to 6%. (movement) Inflation now stands at 6%. (no movement) Income tax has gone up from 25% to 30%. (the total increase is 10%.)Income tax has gone up by 25% to 30%. (the total increase is 30%)

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c. The rise …… consumer prices could lead to the fall of the government.

d. The FT index went up five points ……. 3850, a rise ……. over 3%.

e. When the index was ……….. 3000 our shares were worth €3.20 each.

f. We’ve seen a fall ……….. prices recently. 2) Choose the right preposition a. We set ………. The Bucharest office ten years ago. b. I am quite happy to listen ………….. what you have to say. c. There is absolutely no way we can make a deal ………..

them. d. She found the €100 ……….. accident. e. We are not interested …………. your service. Review questions on sources of funds: 1. Which one of the following would be classed as a source of

long-term funds for a company?

a. An issue of ordinary shares b. Trade creditors c. Bank overdraft d. Factoring

2. Which of the following would be treated as short-term

fund by a company?

a. Ordinary shares b. Debenture stock c. Tax provisions d. Preference shares

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3. Which of the following could be used as a short term means to improve cash flow in a business?

a. A new issue of debentures b. A new issue of preference shares c. Taking out a mortgage on firm’s depot d. Debt factoring WRITING

Write a 100-word paragraph to compare and contrast the sources and uses of long term funds

SPEAKING

Discuss in small groups on the following topic:

A dry-cleaning company which is a private limited company wishes to employ additional labour for a short-term contract with the US Air force based in Kogălniceanu, Constanţa county. This entails outlay of approximately $15,000. How might it reasonably try to raise the extra money?

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Further Readings

FINANCE

TWO MAJOR FINANCIAL SCANDALS Recently, several major American companies have been forced

to reveal involvement in some major financial irregularities. Some companies don’t record their losses, or record them as loans to specially created subsidiaries. Other companies record normal expenses as capital expenses, and remove them from the profit-and-loss account. In some cases, important flows of finance are simply not recorded at all, and just disappear from the balance sheets.

Other accounting discrepancies include understanding of interest payments, fictitious investments, and simply taking cash out of employees’ pensions and social security funds. These are not small amounts of money. They often involve several billions of dollars. Many financial experts also say that these cases are not “mistakes”, but practices that have been occurring for years.

The biggest and most public scandal of recent times was that concerning the energy trading multinational giant Enron. Enron admitted to improperly inflating earnings and hiding debt through a complex system. The company later went bankrupt, and hundreds of people lost their jobs.

WorldCom, like Enron, was a symbol of American capitalism in the past decade, with enormous success in the stock market.

WorldCom has now admitted that $3.8 billion of operating costs were treated as capital spending, forcing it to restate results for 2001 and the first quarter of 2002. With so many losses, WorldCom had to file for bankruptcy and default on its $35 billion debt. WorldCom and Enron were only tow examples of what could be a major crisis for

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corporate America. Many financial analysts agree that corporations have to “clean up their act” and start behaving more ethically with their finances. Can business meet that challenge?

(taken from the vocabulary section in www.onestopenglish.com. 2002) READING COMPREHENSION True or False ? (according to the text) 1) In order to avoid paying taxes some companies don’t record

their profits. 2) Some expenses are removed from the profit and loss account. 3) Companies are used to taking cash out of their accounts in

order to pay employees’ pensions. VOCABULARY DEVELOPMENT

1) Find the words in the text with the following definitions a. To fail to pay money that you owe: _______________ b. Money that a person, company, etc. loses when it spends more

than it earns: _________ c. An amount of money that a person, business, or country

borrows, especially from a bank:___________ d. A situation in which the rules have been broken: __________ e. A company that is owned by a larger company: ___________ f. An amount of money that you owe: ________________ g. A document that shows how much money, for example

money used for buying property or stock in a company: ___________

h. An amount of money you spend in order to buy or do something:__________

i. A written statement showing the value of a company at a particular time:_____

j. An amount of money that you collect , save or invest: ______ k. Money that a company spends on things such as equipment

and buildings that it needs to operate as a business: ________ l. The usual expenses involved in running a business but not

including the costs of producing the goods to be sold ______

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4) Make word partnerships to name typical banking products and services. The words can be used more than once

currency cheque banking safe foreign cards book internet machine/dispenser/point box deposit cash credit

SPEAKING & WRITING Banking products and services 1) A new customer would like to meet with you about doing

business with your bank. Use the practice below to help you prepare a talk about your bank’s products and services.

Your bank features basic accounts for customers. Write 1-2 characteristics for each type of account.

■ current account ________________________________________________________ ________________________________________________________

■ deposit account ________________________________________________________ ________________________________________________________

■ money market account ________________________________________________________ _______________________________________________________

Types of property The two kinds of property are real and personal.

Real property, according to English legal tradition, is the land and anything firmly attached to it, such as buildings and the permanent fixtures of those buildings, and the minerals beneath the surface of the land. Personal property is anything that can be owned other than real property.

Personal property can be divided into tangible and intangible property. Tangible property exists physically; an example is a book. Intangible personal property has no physical existence but nevertheless can be legally owned; an example is patent rights.

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Certain items, such as the atmosphere and the high seas, are viewed as neither real nor personal property.

British and American English

widely used terms in the area of finance BRITISH AMERICAN Romanian equivalent

authorized share capital

authorized capital stock

capital social subscris

company corporation firmă / societate/companie

creditors accounts payable conturi creditoare current account checking account cont curent debtors accounts receivable conturi debitoare gilt / gilt-edged securities

treasury bonds obligaţiuni de stat

overheads overhead costuri administrative, de regie

profit and loss account

income statement contul de profit şi pierdere

property real estate proprietate (clădiri, şi sau terenuri)

quoted company listed company companie cotată la bursă

share stock acţiune shareholder stockholder acţionar shareholder’s equity stockholder’s equity capitalul acţionarilor stock inventory stocuri trade union labor union sindicat

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Annex A: Common Abbreviations and Acronyms

A ACC. CUR. sau A/C: account current

A/cs Pay sau A/cs pay: accounts payable

A/cs Rec. sau A/cs rec: accounts receivable

ACV: actual cash value

adv. pmt. : advance payment

A.O.: accountant officer

ARR : accounting rate of return

AS sau A.S.: account sales

ASAP sau a.s.a.p. as soon as possible

ATM: automatic telling machine attn.: attention / for the attention of B B&B sau b.and b.: bed and breakfast

BBA: Bachelor of Business Administration

BC sau B.C. : before Christ

B/E sau b/e: Bill of exchange

bldg. sau Bldg. : building

B.L. sau B/L : bill of lading

b.o sau b/o: back order

B.O.M. Stock: beginning-of-the month inventory

BRE: Business Reply Envelope

BSC business service center C

cc carbon copies

C& F: cost and freight ( a shipping term)

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CEO Chief Executive Officer

c/f: carried forward

ch.fwd: charges forward

C.I.A.: cash in advance;

C.I.F.: cost-insurance-freight (a shipping term)

Co : company

C.O.D.: cash /collect on delivery

CPA certified public accountant

C/T: cable transfer

CV: curriculum vitae

C.W.O.: cash with order D D/A (en.) 1. deposit account 2. Documents against acceptance

DAP: Documents against payment

DB: day book

dba: doing business as

DD: direct debit

deb: 1. debenture 2. debit

disc.: (en) discount

dft: draft

DN: debit note

DPS: dividend per share

d/s sau d.s.: days after sight E EFTPOS: electronic funds transfer at point of sale

eg: for example

enc enclosure

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EPOS: electronic point of sale

eps: earnings per share

ERM: exchange rate mechanism

ext extension F FIFO: first in, first out;

F.O.B.: free on board;

f.o.c.: free of charge

FMCG: fast moving consumer goods; G

GATT: general agreement on tariffs and trade;

GDP: gross domestic product

GMT: Greenwich Mean Time

GNP: gross national product;

H HO sau H.O.: (en.) 1.head office 2. Home Office

HP: 1.hire purchase 2. horsepower

HQ: headquarters ;

HRM: human resource management I IBRD: the International Bank for Reconstruction and Development

I/F: insufficient funds

ILO: the International Labour Organization

IMF: the International Monetary Fund

in: inch

inc: incorporated

inv. sau invt.: inventory

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IOU: I owe you

IRS: Internal Revenue Service

ISE: international stock exchange

IT: information technology J JA: joint account

JFK: John Fitzgerald Kennedy or airport K KK: Kabushiki Kaisha (Japanese : joint stock company) L LAN: local area network

LBO: leveraged buyout;

L/C sau LC: letter of credit

LCE: London Commodity Exchange

L&D: 1. loans and discounts 2. loss and damage

l.d.c.: long-distance call

LIBOR: London Inter-Bank Offered Rate

LIFO: last in, first out

Llds: Lloyds

London FOX: London Futures and Options Exchange

Ltd: limited M MBA: Master of Business Administration

MBO: 1. a management buyout 2. management by objectives

MD: managing director MEP: Member of the European Parliament;

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MDSG: merchandising

MIS: management information system

Mr: the title used for a man

Mrs: the title used for a married woman

Ms: the title used for a married or unmarried woman

M.Sc. sau MSc: Master of Science

M.Sc. Econ.: Master of Science in Economy

mph: miles per hour N n/a sau n.a.: not applicable

NAG sau n.a.g.: net annual gain

NASDAQ: National Association of Dealers in Securities Automated Quotation

NAV: net asset value

NBV: net book value

n.c.v sau NCV: no commercial value

nil: no number or amount NNP: net national product

No.: number

NPV: net present value

NYSE: New York Stock Exchange O OD sau O/D: overdraft

OH sau O/H: overhead

o/s.: 1. (accounting) outstanding; 2. (commerce) out of stock P PA: 1. (banking) personal account 2. (commerce) personal assistant

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3. (law) power of attorney 4. (insurance) particular average

p.a.: per annum

PAC sau P&C.: put and call (option to sell or buy stock)

PAYE: (tax) Pay As You Earn

payt: payment

pc sau p.c.: percent

PCB sau p/cb: petty cash book

PER: price-earnings ratio

per cent: in or for every hundred

PIN: personal identification number

P/L sau p.l.: partial loss

p.m. sau pm: after noon

P/N: promissory note POS: point of sale

Q qr: quarter

qty: quantity

qtly. sau Qtly: quarterly

quot.: quotation R R: ratio

R&D sau R and D: research and development

re: with reference to

ref: reference

rep: representative

Rev. a/c: revenue account

ROA received on account

RORO: roll-on roll-off

RPI: retail price index

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S Sav.: savings

SE: single entry (accounting)

S.E.C. sau SEC: Securities and Exchange Commission T TB: trial balance

tba: 1. to be agreed 2. to be advised 3. to be announced

Tessa: tax-exempt special savings account

T/O sau TO: turnover

TPI: tax and price index

TSE: Tokyo Stock Exchange

TT: telegraphic transfer

TU: trade union

U unp. sau unpd.: unpaid

USM: unlisted securities market

USP: unique selling proposition

U/W sau UW: underwriter V vac.: 1. vacant 2. vacation

VAT: value added tax W W: wire

WAN: wide area network

WB: 1.way-bill 2. World Bank

w.c.: without charge

wkds: weekdays

wkly: weekly

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WO: work order

w/o: without

wpm sau w.p.m.: words per minute

wt.: weight X x sau xtn.: extension Y Y: yen

yr: 1. year 2. your

Yrs. yours Z Z: (en) zero

ZEG: zero economic growth

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ANEX B GLOSSARY

account a record of the money that a business

receives or pays out cont

accounting recording the past growth or decline of the business, analyzing these results and suggesting the ways in which the business may grow in the future

contabilitate

accountant expert who is familiar with the methodology of finance and the fundamentals of fiscal and business administration and who analyzes and interprets business transactions

economist, contabil

accounts accounts recording money owed to an payable organization or person for things or services purchased by credit accounts the claims against customers that owe money conturi

conturi creditoare

receivable debitoare allowances special price adjustments for certain

customers rabaturi

assets the things of value owned by the company, including cash, securities, property

active

audit a review of the financial records of an organization

audit

balance sheet

shows what the business owns and what it owes to its creditors and to its owners on the last day of the accounting period

bilanţ

blue-collar factory worker muncitor într-o fabrică

bookkeeper one who enters data in financial books contabil boom a period of optimism,high economic

activity and relatively low unemployment

apogeu, avânt

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brand a name used to identify the maker or distributor of a good or their trademark

marcă

brand competition

products that perform the same function and compete against each other

concurenţă directă

bribe money that is paid secretly and dishonestly to obtain someone’s help

mită

branch an office or shop that is connected to a larger company

sucursală

budget an amount of money set aside for a special purpose

buget

budget competition

the broadest form of competition; included in this category is anything that the consumers might want to spend their available money on cash dispenser/

concurenta prin buget

ATM an automatic machine for supplying cash to cardholders,installed outside banks to provide round-the-clock service

bancomat

chief accounting officer

controller responsible for maintaining the records of the company’s operations, interprets the results of the operations, plans and recommends future actions

contabil-şef

cash flow the movement of cash in and out of a business

fluxul de trezorerie

capital money used to start a business capital capital expenditure

money spent on buildings, equipment,etc

cheltuieli de capital

clearance sale

selling items at lower prices in order to reduce stocks

vânzare cu preţ redus; solduri

commercial advertising run on TV reclama TV consignment a quantity of goods delivered at the

same time transport, livrare

consumer goods

goods purchased by members of the public

bunuri de larg consum

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current account

a bank account on which deposits do not necessarily earn interest,withdrawals can be made,however,at any time,even by cheque

cont curent

CEO cyberstore

(Chief Executive Officer) the head of a company online store

director general magazin virtual

CPA – Chartered Accountant (in U.K.) – Certified Public Accountant (in U.S.A)

contabil autorizat

current assets

circulating(floating) assets:stocks,debtors and cash at the bank

fondurile active

current ratio measures the current assets against current liabilities

coeficient de lichiditate

client someone who receives a service client deposit account

a bank account which pays interest,but notice is required for withdrawals and cheques cannot be used for making payments out of it

cont la termen

discount a reduction in price allowed to customers

reducere

domestic/ home trade

referring to the home market comerţ interior

expenses costs incurred in connection with the earning of revenue

cheltuieli

efficient working well and quickly,producing a good result in the minimum time

eficient, competent

effective producing the result that you want eficace, apt flexitime a system in which people who work in a

company do a fixed number of hours each week, but can also choose what time they start or finish work within certain limits

program de lucru flexibil

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foreign/ overseas trade

flow of goods and services across national frontiers

comerţ exterior

gross profit turnover minus direct costs profitul brut gross domestic product

one of the main measures of economic activity;it measures activities located in the country regardless of their ownership

produs intern brut

headquarters the main office of a company sediul central

holding company

company controlling shares in a company

compania mamă

income receipts from sales or payments of interest and dividends

venit, profit

interest rate the percentage a bank pays to depositors for the amount in deposit

rata dobânzii

joint venture a co-operative operation between two companies, sharing expertise, resources, etc

societate mixtă

ledger detailed listing of all accounts of an organization

cartea mare, registru

letter of credit liabilities

a bank document arranging a payment for goods debts owed to creditors, wages or salaries owed to employees or taxes that have not been paid yet

scrisoare de credit pasive

long-term liabilities

debts extending over a long time datorii pe termen lung

manufacturer materials

a person or company that makes goods from raw

producător industrial

market economy

an economy where the market is relatively free

economie de piaţă

minority interests

money owed to minority shareholders in the company’s subsidiaries and associated companies

dobânzi datorate acţionarilor minoritari

mortgage loan with properties and securities to be paid

ipoteca

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notes payable

promissory notes with the current assets(on a balance sheet)

efecte de plătit

notes receivable

promissory notes with the current liabilities (on a balance sheet)

efecte de primit

net(opp. gross)

after everything is taken away (opposite gross)

net (op. brut)

operating profit

gross profit minus operating expenses profit din exploatare

outcome consequence rezultat outlet a place where sth. can be sold vad

comercial, debuşeu

output quantity of goods produced producţie overdraft arrangement with your bank by which

you can withdraw more money than you have in your account

împrumut prin descoperire de cont

overspending buying more items than you can afford cheltuiala peste buget

overheads administrative costs and rates (power,water,etc)

cheltuieli de întreţinere

peak the highest point of a fluctuation punctul maxim al unui ciclu de afaceri

placement supplying goods to retailers distribuţie planned economy

economic system in which economic decisions are made by centralized planners

economie planificată

price range the area of variation of prices for a particular product

gama de preturi

promotion publicity;

to reach a higher rank publicitate, promovare

pay-roll records

company’s employees and how much they earn

statele de plata

patents exclusive right given to an inventor to produce

brevete de invenţie

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premises buildings, offices, property proprietate, clădirile firmei

plant assets land,buildings and store equipment active imobilizate

prepaid insurance

insurance paid in advance asigurări plătite

prosperity period of relatively rapid growth of output

in avans creştere, expansiune

receipts an amount of money received over a period by an organization; a written acknowledgement of this

încasări, chitanţe

recession period of relative stagnation or decline recesiune recovery period of relatively rapid growth of

output redresare

retailing the sale of goods in small quantities to the public

vânzare cu amănuntul

profit and loss

account income statement;summarizes the profitability of the company by balancing revenue against epenses

contul de profit si pierdere

purchases budget

the budget for the goods that the business will have to buy first in order to sell

buget de cumpărări

purchase book

register where purchases are recorded registru de cumpărări

quick ratio measures current assets,from which are deducted the stocks against current liabilities

rată rapidă

record of cash

register where cash is recorded registru de casă

recruit to employ or take on new staff a recruta refund to pay back money spent a restitui

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Revenue (=turnover)

any increase in the owner’s equity resulting from the operation of the business

cifră de afaceri, venitul mare

share premium

measures the current assets against current liabilities

prima de capital

staff the people who work for a company, its personnel, its employees

personal

stake a number of shares in a company participaţie subsidiary a company that is controlled by another

company sucursala

survey research undertaken among consumers studiu de piaţă

stocks inventories(USA), goods stored ready for sale

stocuri

trade buying and selling comerţ trial balance the test that determines whether the

total of debits equals the total of credits

balanţa de verificare

white-collar worker

a clerical worker in an office funcţionar

wholesale buying and selling in large quantities vânzare en gros

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Answer key UNIT 1: MEETING AND GREETING PEOPLE READING COMPREHENSION: 1) a-T; b-F; c-T; d-T; e-F; f-F; g-T; h- F; i-T; j-T. 2) a. A: am; B: is; b. A: are; B: am: c. A: is; B: isn’t; is; d. A: Are; B: am not; am; e. A: Is; B: it is; f. A: Are; B: are. 3) 1-d; 2-b; 3-e; 4-a; 5-f; 6-a. Reading 4) (1) makes; (2) isn’t; (3) is: (4) do; (5) writes; (6) don’t; (7) are; (8) works; (9) does; (10) write. GRAMMAR: 1) a) a; b) Zero article; c) an; a; d) the; a; e) the; Zero article; f)

Zero article; g) the. 2) a) he; b) me; him; her; c) us; her; she; d) I; me; e) her; f) me;

her; she. 3) a) his; b) her; yours; c) his; hers; d) it; yours; e) their; theirs;

f) my; yours 4) flowers; b) boys; friends; c) Dogs; animals; d) dictionaries;

shelves; e) mice; cats; f) books; appendices; g) newspapers; media.

5) a) ’s; b) ’s; c) ’; d) ’s; e) ’s; f) ’s. 6) a) Does Mary understand…?; b) Does it rain…?; c) Does Mr.

White read…? ; d) Do your parents like…?; e) Do the shops close…? f) Do you attend..?; g) Does he know…?; h) Do these magazines publish…?

7) a) have; b) Is; c) have; d) was; e) were; f) is; g) have; h) have; i) has; j) attracts.

8) a) accompanies; b) wash; c) ranks; d) is; e) are f) are g) is; h) is; i) misses; j) are.

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Answer key UNIT 2: JOBS VOCABULARY DEVELOPMENT 1. a. occupation; b. wages; c. salaries; d. occupation;

e. professions; f. professional. 2. 1D; 2I; 3J; 4A; 5H; 6C; 7G; 8F; 9E; 10B. 3. 1C; 2E; 3J; 4G; 5H; 6I; 7D; 8F; 9A; 10B. 4. a. PART-TIME ……….. FULL-TIME; b. APPLICATION;

c. LAYING OFF; d. QUALIFICATIONS ………… EXPERIENCE; e. OVERTIME; f. FREELANCE; g. SKILLS. 5. a2; b1; c5; d6; e4; f3. 6. 1 b. ; 2. b; 3 c. GRAMMAR 1) a. Less and less……….; b. The more………..the better;

c. The sooner………..better; d. Fewer and fewer…………; e. Stronger and stronger…; f. The earlier…………the better; g. The higher …………the colder.

2) a. friendly; b. attractive; c. delicious; d. expensive; e. frightened. 3) a. faster; b. thickest; c. more popular; d. largest. 4) a. She is wearing tight striped jeans. b. A clever middle-aged Armenian lawyer. c. An attractive 23-year-old Dutch girl. d. He wears a long black leather coat.

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e. An interesting small silver box. f. Amelia has long wavy gingery-brown hair 5) a. They negotiated aggressively for five hours b. John read very much at home all day yesterday c. My friend spoke to me very kindly in the street the day before yesterday 6) a. happy; b. hard ; c. fast; d. nice; e. carefully; f. sad; g. well;

h. carefully; i. softly; j.slow …………slowly; k. slow; l. easily. 7) a. Easy b.low c.low-rise d.soft e.low; f. poor. 8) a. great detail; b. strong tea; c. lengthy meeting; d. powerful car; e. e. broad summary. 9) a. occupational b. skilful c. managerial d. clerical e. profitable. 10) a. So have ours; b. Neither do I; c. So did we/I; d. So am I; e.

Neither can I; f. So shall I; g. So would I 11) ANS: c

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Answer Key UNIT 3: SOCIALISING IN BUSINESS VOCABULARY DEVELOPMENT 1. Can/may; 2. from/with; 3. have; 4.will; 5. Pleased to meet

you/ Nice to meet you/ How do you do; 6. Did you have; 7.would you like; 8. Do you take/Would you like.

2. 9.b, 10.c, 11.b, 12.b, 13.b, 14.d, 15.a 3. 1.a, g, 2.b, 3.e, h, 4.c, i, 5. d, j, 6.f 4. 1.c, 2.g, 3.e, 4.a, 5.b, 6.f, 7.d 5. 1.c, 2.d, 3.e, 4.j, 5.a, 6.b, 7.i, 8.g, 9.h, 10.f 6. 1.c, 2.g, 3.i, 4.f, 5.b, 6.e, 7.d, 8.h, 9.a 7. 1.b, 2.d, 3.d, 4.a, 5.c, 6.c, 7.b, 8.a, 9. c 8.1-e, 2-c, 3-j, 4-g, 5-a, 6-h, 7-i, 8-f, 9-b, 10-d 9. 1-e, 2-c, 3-j, 4-g, 5-a, 6-h, 7-i, 8-f, 9-b, 10-d 10. a-2, b-4, c-6, d-5, e-1, f-3 11. a- welcome, b-okay/all right 12. a - 2/5, b-4, c-5, d-1/2/5, e-1/3/5

GRAMAR

a. Who did we work with? b. What are you interested in? c. Who invited Michael to visit the company? / Who did the

manager invite to visit the company? d. Which director complimented Daniel? e. How many people visited the plant? 2. a-didn’t you, b-is he, c-doesn’t it, d-won’t you, e-didn’t she,

f-am I, g-are you, h- wasn’t she, i- didn’t she, j-didn’t he, k-shall we. 3. 1.c, 2.b, 3.a

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Answer key UNIT 4: HOBBIES AND INTERESTS READING COMPREHENSION

1. a-true, b-false, c-true, d-false, e-true, f-false, g-true, h-false. 2. 1b, 2a, 3d, 4a, 5c, 6b, 7c. VOCABULARY DEVELOPMENT

1. I. 1d, 2f, 3a, 4h, 5b, 6c, 7e, 8g. II.a-leisure, b-make a living, c-ambling horse, d-financial reward, e-spare time, f-side-effects, g-personal fulfillment, h-falconry. 2. to, of, for, with, with, to, at, of. 3. a-Axel, b-Tsukahara, c-Lutz, Biellman, d-Frances Pomeroy Award, e-Davis. 4. a-doing, b-going, c-playing, d-doing, e-playing, f-going, g- doing, h-doing, playing. 5. collectors, to pay, prices, signed, manuscripts, signatures, photographs, letter, auction. GRAMMAR

1.-------a-can, b-could, c-won’t be, d-managed to, e-was able to, f-will be able to

2. ------a-has been allowed, b-may, c-could, d-may, e-can/could, f-may

3. -----a-may, b-may, c-may, d-might, e-can 4. -----a-don’t have to, b-need not, c-can’t, d-must, e-has to, f-

must/will have to 5. ----- a-must have left, b-may/might have escaped, c-could

have warned, d-can’t/couldn’t have done, e-needn’t have spoken, f-must have been

----- a-must, b-I’d better, c-should, d-ought to, e-would rather, f-should

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Answer Key UNIT 5: OBTAINING INFORMATION: TELEPHONING VOCABULARY DEVELOPMENT 1. Numbers 7 and 8 are recorded messages. 2. 1. Graham Hughes, 2. Janice Young. 3. 1. a,b,d; 2. a,d; 3. d; 4. a,c,d; 5. a,b,e. 4. line 1 in the exercise is actually line 14, 2-2, 3-1, 4-5, 5-15,

6-6, 7-4, 8-7, 9-3, 10-8, 11-10, 12-9, 13-12, 14-11, 15-13. 5. 1.c, 2.b, 3.e, 4.a, 5.f, 6.g, 7.d. 6. 1.c,o,i; 2.b,k,e,d,l; 3. r,n; 4.a,q,f, g, h, p. 7. 1. pin down; 2.come up; 3. pencil in; 4. is off; 5. look forward;

6. put out; 7.bear with; 8 draw on; 9. tied up; 10. put off. GRAMMAR 1. 1. need; 2. starts; 3. Do… want; 4. depends; 5. does…cost;

6. is, 7. gets; 8. takes; 9. leaves; 10. arrives; 11. do...have to; 12. do…make.

2. 1.’m visiting our London office; 2.’m seeing a new customer; 3’m not doing anything special.

3. 1.PS; 2.PP; 3. PS; 4.PS; 5.PP; 6.PS; 7.PP; 8.PS; 9.PP;10.PS. 4. a.2; b.3/6; c.5; d.7; e.6; f.10; g.8; h.4; i.9; j.1. 5. a. have you been waiting, b. have (‘ve) played, c. has (‘s) been

raining, d. have been driving, e.have known, f. has announced, g. have been reading, h. has been working, i.has worked.

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Answer Key UNIT 6: HIGHER EDUCATION AND CAREERS: “SPIRU HARET” UNIVERSITY READING COMPREHENSION 1) a) T; b) F; c) T; d) T; e) F; f) T. 3a)1-F; 2-D; 3-A; 4-C; 5-E; 6-B GRAMMAR

1) b) Did…. study….?; c) complained; d) Did…visit?; e) placed; f) did…hire?

2) (2) knew; (3) used; (4) set up; (5) found; (6) were; (7) rained; (8) had; (9) was; (10) didn’t want; (11) decided; (12) succeeded; (13) didn’t have; (14) didn’t know; (15) started; (16) tried; (17) made; (18) cut; (19) painted;( 20) heated; (21) worked;( 22) improved; (23) began.

3) (1) met; (2) was travelling; (3) noticed; (4) was standing; (5) were waiting; (6) realized; (7) were having; (8) said: (9) was coming; (10) remembered; (11) were having; (12) accepted.

4) a) had gathered: b) had given; c) had played; d) had finished; e) had broken; f) had invited; g) had finished; h) had begun.

5) a) had he gone?; b) had left; c) had already chosen; d) had appointed; e) had grown; f) hadn’t studied g) had put; h) hadn’t signed.

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Answer key UNIT 7: EUROPEAN UNION MEMBERSHIP READING COMPREHENSION

a-false, b-true, c-true, d-false, e-false, f-true, g-true, h-false, i-true. 1d, 2a, 3b, 4a, 5a, 6d, 7b, 8a.


1. A-----1c, 2e, 3f, 4a, 5b, 6d B-----a-bilateral agreement, b-summit, c-membership, d-monitor. 2. member, state, democratic, integrate, adjustment, level,

development, trade, agreements, membership. GRAMMAR

1……..1c, 2a, 3e, 4b, 5g, 6d, 7f, 8h. 2……...a-is making, b-leave, arrive, take, c-are starting, d-takes

off, e-is leaving, f-are being held, g-leaves. 3……..1c, 2b, 3a, 4c, 5a, 6b. 4……..a-will be starting, b-will be working, c-will she be living,

d-will be investing, e-will be building, f-will be holding. 5…….a-will have found, b-will have finished, c-will have built,

d-will have manufactured, e-will have gone, f-will have sold. 6…….1d, 2e, 3a, 4b, 5f, 6c. 7…….1c, 2e, 3a, 4f, 5b, 6d. BUSINESS WRITING

b., a., c.

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Answer Key UNIT 8: COMPANY ORGANISATIONAL STRUCTURES READING COMPREHENSION 1. a. matrix; b. functional; c. geographic; d. product lines.

2. a. Functional structure, Organisation along product lines, Geographic structure, Matrix structure. b. Yes, the functional structure. c. During the 1980s. d. Reduce costs and take advantage of new technology. e. A flat organisational structure.

VOCABULARY DEVELOPMENT 1. 1.c; 2.g; 3.h; 4.a; 5.f; 6.i; 7.d; 8.e; 9.b. 2. a.software companies; b. product lines; c. project teams;

d. business units; e. country managers. 3. 1.c; 2.f; 3.b; 4.e; 5.g; 6.a; 7.d. 4. a.competitors; b. agreement; c.economic; d product; e. organisation. 5. 1.h, 2.f, 3.a, 4.i, 5.d, 6.b, 7.g, 8. c, 9.j, 10.e. 6. a. on; b.along; c. through; d.by; e.up into. 7. A. a; B. b GRAMMAR 1. a. He said (that) he thought a joint venture was the best way

to break into the Far East. b. He said (that) he was/we were not planning to set up a

subsidiary. c. He said (that) he had been talking to a group of investors in

Asia. d. He said he didn’t want to diversify in the immediate future. e. He said we shouldn’t attempt to move too fast because we

might get our fingers burned. f. He said he would be sending Stuart Campbell on a fact-

finding mission.

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2. e; 2.c; 3.a; 4.b . 3. 1. She asked me if I had seen Bernard yet. 2. Could you tell me if you are open on a Saturday? 3. He wondered if/whether I had got his message. 4. Have you got any idea how much time there is left? 5. She wanted to know if/whether he would be taking his

wife with him. 4. 1. Someone asked her where the restaurant was. 2. Someone asked her where you can get a shuttle. 3. Someone asked her where the duty free was. 4. Someone asked her where they could leave their suitcases. 5. Someone asked her why the flight had been delayed. 1. A. 1.e, 2.a, 3.b, 4.d, 5.c 2. 1.a.b,c; 2.d, e, h; 3.f, g BUSINNES WRITING 1. 1.e, 2.a, 3.b, 4.d, 5.c. 2. a.1, b.2, c.3, d.4, e.5, f.6, g.8, h.9, i.7. 3. 1.a.b,c; 2.d, e, h; 3.f, g 4. 1. Mr. Daniels; 2. reference; 3. conversation; 4. enclosing

5. am afraid; 6. require; 7. questions; 8. hesitate; 9. contact; 10. look; 11. hearing; 12. Yours sincerely; 13. Enc.

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Answer key UNIT 9: ACCOUNTING READING COMPREHENSION

1) a) F; b) T; c) F; d) F; e) F; f) T; g) T; h) F; i) F.


2) a) shipment; b) supplier; c) regulatory state commission; d) unfilled sales order; e) backlog; f) market share; g) output; h) breakeven point; i) revenue.

3) 1 d; 2c; 3b; 4e; 5a. BUSINESS WRITING

Letters of enquiry

1) a. 5; b. 4; c. 4; d. 2; e. 4; f. 1; g. 3; h. 4; i. 1; j. 2; k. 4; l. 1; m. 3; n. 4.

2) Dear Sirs,

We have seen (1) your advertisement of (2)Aro Vehicles in (3) the June issue (4) of “Capital”

We are a large company which (5) specialises in (6) overland safaris for tourists and since (7) our business is expanding rapidly, we are interested (8) in purchasing (9) some new vehicles.

We would therefore appreciate (10) it if you could (11) send us your latest (12) catalogue and price lists. We would also want to know if you are offering any trade discounts.

We look forward to hearing (13) from you soon.

Yours faithfully (14)

D.Cliff Managing Director Replying to letters of enquiry

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3) a. 5; b. 7; c. 6; d. 4; e. 1; f. 3; g. 5; h. 2; i. 3; j. 2; k. 6.

4) Dear Mr. Cliff,

Thank you for (1) your letter of (2) 25 June enquiring about (3) our Aro vehicles.

We have (4) pleasure in (5) enclosing our latest brochures and price list. Please note (6) that the prices quoted do not include (7) insurance and delivery.

As we have (8) received a large number of enquires (9) from all over East Africa in response to our advertisement, we are (10) shipping two of our Aro vehicles /models (11) to Nairobi, and sending out one (12) of our most experienced technicians / engineers (13).

We suggest (14) that you should contact Mr. Ionescu, who will be staying at (15) the Grand Hotel, Nairobi, between 10 and 30 July, if you would (16) like to examine and drive these vehicles. The Aro vehicles that we are sending out underwent 17) special modifications, carried out by ourselves, which will be of particular interest (18) to you.

We look forward (19) to hearing from you. Yours sincerely (20) GRAMMAR If clause I. Zero conditional: 1) 1b; 2f; 3e; 4a; 5d; 6c

2) a. If the meeting finishes late, I will spend the night in Bucharest. b. If you give us a 5% discount we will make a firm order of

10, 000 units. c. If you order now you ‘ll get a free gift. d. If we break into the Bulgarian market, our turnover will

increase substantially. e. If sales don’t go well this year, we’ll try to reduce our costs.

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3)

a. I would apply for the job if I had a degree, but unfortunately I am still an undergraduate.

b. I’m leaving now; I’ll be back at noon if the traffic is not too bad.

c. If I were chief accountant I would insist on having more staff in the accounting department.

d. We won’t be able to do business with you unless you comply with our ethical policy.

e. If I invented a new product, I would patent it immediately. f. If you increase sales by over 15% the company will pay you

a performance bonus.

4) a. If the flight had been delayed, I would have stayed at the

airport hotel. b. If I had known that you are coming, I would have met you at

the airport. c. If we had followed his advice, we could have lost a great deal

of money. d. If we had offered large quantity discounts, we might have

won the order. e. If we had had the right figures, we could have avoided a

costly error. f. If you had left earlier, you might have got there on time. 6) a. ii; b.ii; c. ii; d. i; e. ii.

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Answer key

UNIT 10: BANKING

READING COMPREHENSION 1. a-false, b-false, c-true, d-true, e-false, f-true. 2. 1a, 2a, 3d, 4a, 5c, 6d, 7a, 8b. VOCABULARY DEVELOPMENT

1. 1d, 2b, 3a, 4e, 5c, 6f. 2. a-mortgage, b-maturity, c-instalment, d-down payment,

e-leasing, f-borrower. 3. 1e, 2c, 3a, 4b, 5d, 6e. 4. 1b, 2f, 3d, 4a, 5c, 6h, 7e, 8g, 9i, 10j. 5. a-pension, b-interest, c-graft, 4-dole. GRAMMAR

1. a-will be developed, b-have been improved, c-were eliminated, d-had been identified, e-is being extended, f-are advertised.

2. a-was given, b-will be said, c-had been cut, d-will be exhibited, e-has just been written, f-can be understood, g-will have to be adopted.

3. a-made, b-could put, leaving it, c-received, d-will have to find, e-will deal with, f-are repairing, g-have sold, have ordered.

4. a-a good job was offered, he was offered, b-immediate help was promised, she was promised, c-money was paid, they were paid, d-the answer will be given, we will be given, e-money is owed, she is owed, f-details were given, he was given.

5. a-we had another window put in, b-I had my documents translated, c-he wanted to have the report finished, d-I’ll have my visiting cards printed.

6. a-are having one built, b-have it shortened, c-have it cleaned, d-had them painted, e-to have the puncture mended.

BUSINESS WRITING 1. offer, catalogue, discount, order form, payment, credit,

delivery, cancel, shipment, risk, expense. 2. b, d, c, a.

sorry, fill, send, shortage, difficulty, order, available.

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Answer key UNIT 11: FINANCIAL ACCOUNTING VOCABULARY DEVELOPMENT 1) a. liabilities; b. assets; c. double-entry book keeping; d. equity;

e. revenue; f. depreciation; g. interest; i. (trading) profit; j. retained profits / earnings; k. pre-tax profit; l. corporation / income tax.

Quiz: How to Analyze a Balance Sheet 1) a. dividends; b. depreciation; c. intangible assets; d. liabilities;

e. fixed assets; f. overhead; g. variable costs; h. advertising costs; i. distribution costs; j. operating costs;

2) (Accounts Payable) 3) (Current assets – Current Liabilities) 4) (Retained Earnings) 5) (Book value excludes intangibles)

6) a. statement (of account); b. deposit; c. debit; d. cash;

e. withdrawal; f. cashier; g. balance; h. teller; i. credit.

7) Have you KEPT an account of expenses? b) The account doesn’t BALANCE because a credit has been wrongly entered in the books. c) Please acknowledge receipt of the enclosed cheque and CREDIT our account accordingly. d) Please supply the goods as soon as possible and DEBIT our account. e) Please GIVE me a detailed account of the meeting. f) Your expenses can be paid straight into a bank account NOMINATED by you. g) The deposit account OFFERS a high rate of interest but withdrawals require 90 days’ notice. h) The account was RENDERED on the 15th of August and is now overdue. i) We enclose a debit note showing the amount due and look forward to the SETTLEMENT of your account. j) I am TRANSFERRING my

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bank account from the city centre branch to one nearer my home. k) The account will be UNBALANCED.

Numeric response questions 1) D. 2) B. BUSINESS WRITING 1. Dear Mr. Savolainen We have instructed our bank to ARRANGE (1) for a letter of

credit for € 4,850.92 to be PAID (2) against your INVOICE (3) no. Gl 1538 and the proceeds will be credited to you as soon as Finish Trust receives the documents.

2. Dear Mr. James Re: Invoice 32448 I am writing to you once again regarding the above invoice,

dated 11 January, for the exhibition equipment we supplied to you. This invoice is still OUTSTANDING (1)

According to our records, we have not yet received your

REMITTANCE (2) or a reply to our previous requests for payment, dated 18 February and 15 March.

Under the terms of our contract you UNDERTOOK (3) to settle

within thirty days of receipt of our invoice. We felt, that as the owner of a small business yourself, you would appreciate the effect that late payments have on our CASH FLOW (4) and therefore, had expected to receive your remittance some time ago. However, as of today, your account is sixty days OVERDUE (5)

We will, of course, be able to recover the DEBT (6) through the

courts, which would involve you in additional legal costs. However I’m prepared to give you a final opportunity to SETTLE (7) your

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account. Unless I receive FULL (8) payment within the next seven days, you will leave me no alternative but to put this matter into the hands of my solicitor.

GRAMMAR

Subjunctive Quiz I 1. a) Her employees treated Mrs. Ionaşcu as though she were a

queen. b) It is essential that she be at the meeting c) I hope that he finishes his job on time d) The doctors recommended that she take a holiday e) Suppose she were here. What would you say? f) I think it's an interesting fact that she comes from Estonia. g) The landlord requested that John move out of the apartment h) We want the windows to be washed before Saturday. i) She says that the government regulates the airline industry.

I don't know if that is true. j) The office administrator demanded that the heater be repaired

immediately. k) It is important to remember that Janine thinks very differently

from you. She may not agree to the changes you have made in the organization of the company.

l) The doctor recommended that she should see an eye specialist. m) The teacher insists that his students arrive on time I demand that she immediately apologize for what she just said Subjunctive Quiz II

2. a) The boss insisted that Mr. Predescu not be at the meeting. b) It is important that you be standing there when she gets off the

plane. c) We suggested that you be admitted to the organization.

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d) It is crucial that a car be waiting for the boss when the meeting is over.

e) I suggest that you not take the job without renegotiating the salary.

f) Jake recommended that Susan be hired immediately. Financial accounting terms How many of these questions can you answer? 1. C 2. C 3. C 4. A; E; F 5. a. F; b. F 6. C

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Answer key UNIT 12: FILING SYSTEMS READING COMPREHENSION

1. a-false, b-true, c-true, d-false, e-false, f-true. 2. 1b, 2a, 3c, 4b, 5b, 6b. VOCABULARY DEVELOPMENT

I. 1d, 2a, 3b, 4f, 5c, 6e. II. a-digits, digit, b-hardware, c-filing, d-software, e-folders. GRAMMAR

1……..a-dealing, b-giving, c-flying, d-becoming, e-finding, f-learning.

2……..a-getting, b-visiting, c-seeing, d-hearing, e-finding, f-taking.

3…….a-working, b-reading, c-working, d-standing, waiting, e-meeting, f-laughing, speaking.

4…….a-being late, b-travelling, c-punishing, d-waiting, e-resigning, f-meeting.

5…….a-buying, b-laughing, c-missing, d-helping, e-travelling. 6…….a-working, b-buying, c-leaving, d-telling, e-staying. BUSINESS WRITING

1. customers, complaining, refund, shipment, complaints, error, protection, instructions.

2. b, d, a, c.

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Answer key UNIT 13: INTERNATIONAL TRADE READING COMPREHENSION

1. a. skilled; b. currency; c. the former; d. smoothly; e. the latter;

f. embargo; g. carriage forward; h. carriage paid; i. handling; j. consignee; k. freight (cost); l. packaging; m. customs duties; n. consignment; o. load; p. non-negotiable.

Multiple Choice Questions

1. C: foreign exchange 2. B: Saudi Arabia 3. C: a house bill for each consignee 4. D: Bill of Lading 5. A: Make imports cheaper

BUSINESS WRITING

Apology for delay in shipment – 1.

Dear Mr. Boyanov

I’m sorry that we have not BEEN ABLE TO deliver as scheduled your shipment of rugs from India. Unfortunately, the dock workers’ strike in Contanţa has prevented the UNLOADING of the ship. I expect that the strike will be over soon and that we can deliver your shipment within the next month.

I apologize for the DELAY and inconvenience this HAS CAUSED you. I will notify you as soon as the strike IS over.

Yours sincerely Marin Nedelcu

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Apology for damaged shipment – 1. Complete the following business letter choosing the

appropriate word or phrase from the list. MODIFY its form where necessary. Not all the words should be used. Use standard English spelling

(to order, to want, to cause, to sell, to purchase, to tell, to contact, to be able to, to be, to make, to arrive, to serve, to cancel)

Dear Mr. Boyanov

I’m sorry to learn about the damage to the sofa that you PURCHASED from us last month. Our driver has determined that the damage occurred in shipment (most likely from the manufacturer’s warehouse to our store).

I’ve ordered an exact replacement from the factory, and I’ve been TOLD that it will take four to six weeks to get here. I’ll call you as soon as it ARRIVES, and we will arrange a convenient time for delivery.

I am sorry for the inconvenience this HAS CAUSED you. I’ll be in touch very soon.

Sincerely, Bob Chamberlain Manager Vocabulary development Business idioms 1) 1F; 2C; 3H; 4D; 5G; 6A; 7B; 8E 2) a. Just by using the keypad on your phone, BCRPhone Banking

lets you PAY BILLS from wherever you are. b. The BRD Euro Account allows you to PURCHASE GOODS

in local currencies without paying any exchange rates. c. All you need is a modem or Internet connection to

DOWNLOAD FINANCIAL DATA onto your personal computer.

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d. You can MAKE A DEPOSIT by post at Bankpost branches e. On line banking services lets you TRANSFER FUNDS from

one account to another quickly and easily. f. The Citicard allows you to WITHRAW CASH from

cashpoints around the word. g. With Citibank, you can EARN INTEREST on your current

account balance. h. Just fill out and return the application form or call a Ţiriac

Bank representative to OPEN AN ACCOUNT. Banking collocations 3) a. Transilvania bank has launched an INTEREST BEARING

ACCOUNT for small businesses and charities. It allows up to ten free withdrawals a month.

b. I am not sure if the two spouses hold a JOINT ACCOUNT with our bank.

c. Business is slow, our CURRENT / CHEKING ACCOUNT is IN THE RED

d. He has admitted that he has money in his SAVINGS ACCOUNT but still he said he would not pay.

4) a. The bank is CHARGING a minimum rate of 9% for the loan. b. They CREDITED the money to his wife’s account. c. Some cash machines REVEAL information about accounts. d. It may be easier to DRAW money from your account than to

pay money in. e. She DEPOSITED the cheques in her account. Confusing financial terms 5) a. I haven't got enough money for lunch. Could you lend me

some? b. How much does she earn in her position?

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c. It was a very good dinner. Can we have the bill please? d. We expect prices to rise by at least 4 percent. e. We only exchange goods if you produce a receipt. f. He's an excellent doctor, but he doesn't charge too much. 6) The first has been done for you: The contract is not negotiable (to negotiate) g. We charge each BORROWER a fee of €50 to arrange a loan h. We are looking for a LENDER who offers reasonable interest

rates. i. I think that our BORROWING. is now under control. j. This year we will pay a DIVIDEND of 1 RON per share k. To get the loan we had to use our brand new Toyota as

SECURITY Polysemantic words

7) Ţineţi/aţi ţinut evidenţa vreunui cont de cheltuieli? Furnizorii

noştri trebuie să răspundă pentru întârziere. Agentul comercial făcea o vizită unui beneficiar/ client important. Trece-o în contul meu. Vă rog daţi-mi un raport detaliat al şedinţei. Am cerut ca mărfurile să fie achitate din contul meu de credit. Trebuie să ţineţi cont atât de calitatea cât şi de cantitatea mărfurilor produse. Exporturile reprezintă 42% din vânzări.

Salariul meu este achitat în bancă. Îţi ţii banii la Bankpost/ Lucrezi cu Bankpost? Ţărmul era abrupt ….. Ştiu că pot să mă bizui pe ea. Trebuie să depunem acel cec la bancă pentru a evita…... Nu am un cont bancar încă.

V-aţi lovit la cap? Ea este şefa compartimentului contabilitate. Ne întâlnim la capătul văii.

Compania de calculatoare are o segment de piaţă de 25%. Preţul acţiunilor a crescut azi la Bursa de valori.

Vom înfiinţa o nouă întreprindere. Ea are spirit întreprin-zător……. România este acum o economie bazată pe libera iniţiativă. Guvernul plănuieşte să transforme Giurgiu într-o zonă de…. Marea majoritate a companiilor din lume sunt întreprinderi mici şi mijlocii. (IMM-uri)

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Ea a fost concediată pentru rezultate slabe /prestaţie necores-punzătoare. Trebuie să se aibă grijă în îndeplinirea acestei sarcini. Cum putem să îmbunătăţim activitatea de vânzare? Din ce în ce mai multe companii adoptă un sistem de plată bazat pe realizări. Ieri am urmărit un spectacol muzical.

8) a. Keep books. b. Break even. c. In the red. d. Carry over. e. Go over the books f. Write off. Idiom Quiz 9) a. 1: took over; b. 2: at a loss; c. 4: bottomed out; d. 1: take

stock.

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Answer key UNIT 14: THE STOCK EXCHANGE READING COMPREHENSION

1) F; 2) F; 3) T; 40 F; 5) T; 6) T; 7) T VOCABULARY DEVELOPMENT

1) a) a stock exchange; b) share; c) NASDAQ; d) bond; e) debenture; f) NYSE and Amex

4) a) liabilities; b) bonds; c) auditors; d) proxy; e) notified; f) registered; g) at par

SPEAKING

1) a) One-man business; partnerships; companies; b) shares and bonds; c) society is a non-profit association; d) to set; to form; to found; to float; to launch a company; e) to preside over a meeting; f) a) un vot; b) o opinie; g) Bulls are spectaculators who expect a rise, bears are spectaculators who play for a fall.

3) 1-a; 2-b; 3-c;4-d 5-e BUSINESS WRITING (contracts) VOCABULARY DEVELOPMENT

1) a) a contract; b) a sales contract; c) the Preamble; d) Clauses; e) price; f) The Payment Clause

2) 1-e; 2-d ;3-c; 4 –b; 5-a. GRAMMAR

1) a) seeing; b) gardening; c) skiing; d) standing; watching; e) seeing; f) relating;

2) a) am teaching; b) Did you hear; c) I have been; d) arrived; had begun; e) reached; had already arrived; f) will play; g) will be; h) will play; comes back; i) had met; j) found out;

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4) a) back you up; b) find out; c) get on; d) come down; e) ran into; f) looking for;

5) a) is ;b) don’t run; you’ll; c) will play; have; d) don’t tell me; e) had dried up; would be desperate; f) is; will leave; g) wakes; h) I’ll speak; see;

6) a) who the woman in black was; b) ….the conference would bring about greater international cooperation; c) …it was still raining; d) … what day it was; e) …the judge would decide the case the next month; f) …I defied him to prove that he had lied to you; g) …deeds were better than words when people needed help; h) …he wasn’t coming with him and that was his final word.

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Answer key UNIT 15: FINANCIAL MANAGEMENT Reading comprehension 1) a. F; b. T; c. T; d. T; e. T.

2)

Internal sources External sources short term long term short term long term Sale and lease back agreement

retained profits bank overdraft share issues

factoring hire purchase bank loan Leasing

VOCABULARY DEVELOPMENT 3) a. running costs; b. raw material; c. fixed capital; d. items of

expenditures; e. working capital; f. money retained in the business / retained profits; g. asset; h. out of pocket; i. on tap; j. repayment.

4) a. sale and lease back agreement; b. shortage; c. overdraft; d. return on capital; e. retained profits; f. hire-purchase; g. security; h. leasing; i. factor; j. savings; k. interest;

GRAMMAR

1. a. by b. in c. in d. to, …of e. at f. in2. a. up b. to c. with d. by e. in

Review questions on sources of funds:

1. a; 2. c; 3. d.

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WRITING Write a 100-word paragraph to compare and contrast the sources

and uses of long term funds Speaking Discuss in small groups on the following topic:

A dry-cleaning company which is a private limited company wishes to employ additional labour for a short-term contract with the US Air force based in Kogălniceanu, Constanţa county. This entails outlay of approximately $15,000. How might it reasonably try to raise the extra money?

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Answer key

FURTHER READING

FINANCE READING COMPREHENSION

1) F 2 ) T 3) F VOCABULARY DEVELOPMENT

1) a. DEFAULT ON; b. LOSS; c. LOAN; d. IRREGULARITIES; e. SUBSIDIARY; f. DEBT; g. PROFIT AND LOSS ACCOUNT; h. INVESTMENT; i. BALANCE SHEET; j. FUND; k. CAPITAL EXPENSE; l. OPERATING COSTS; m. BANKRUPT.

2) a. GO/ BE bankrupt; b. TAKE OUT A loan / DEFAULT

ON a loan; c. Capital EXPENSES; d. Make a LOSS / TAKE A LOSS/ RUN AT A LOSS; e. All EXPENSES paid; f. TO BE IN debt / PAY OFF a debt; g. FILE FOR bankruptcy;

3) a. loans; b. overdraft facility; c. bonds; d. pension; e. standing

order. 5) Cash machine/dispenser/point

Cheque book Internet banking Credit cards Foreign currency Safe banking Deposit box /Safe deposit box Cash book

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BIBLIOGRAPHY

1. Anthony, R.N., Essentials of Accounting, Addison-Wesley Publishing Company, Inc., Reading, Massachusetts, 1999 (reprinted).

2. Boicescu, S., Business Communication, Ed. Universitaria, Bucureşti, 2005.

3. Duckworth, M., Oxford Business English Grammar & Practice, Oxford University Press 2000.

4. Eichler, L.,Correct Letter Writing, Bantam Books, N.Y.,1993.

5. Emerson, J., Business Grammar Builder, Macmillan, 1998. 6. English for Business and Administration, edited by The

British Council, Bucharest, Prosper, Cavaliotti Publishing, 2000.

7. Flinders S., Test your Business English-Intermediate, (ESP) Penguin Books, London, 1997.

8. Hollett, V., Business Objectives Workbook, Oxford University Press, 1992.

9. Hollett, V., Business Opportunities Workbook, Oxford University Press, 1994.

10. Huxley,A., History and Present in Hobbies, Ed.Laurel,1984 11. Marcheteau M., Berman JP., Savio M., Engleza comercială

în 40 lecţii, Editura Niculescu, Bucureşti, 2003. 12. McLarty R., Grant D., Business Basics.- Beginning - Pre-

Intermediate, Oxford University Press, Oxford 1995. 13. Milea, C., English for Banking, editura All Educational,

Bucureşti 1999. 14. Rachman J.D., Mescon M., Business Today, Random House

1984. 15. Smith, T., Market Leader Test File, Pearson Education

Limited, 2000.

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16. Ştefan R., Pricope M., Beldea E., Go ahead-English course for Business Studies, ed. Fundaţiei România de Mâine, 2001.

17. Ştefan R., Marcoci S., Vasilescu R., Beldea E., Come along, Editura Fundaţiei România de Mâine, Bucureşti 2002.

18. Tuck, A., Oxford Dictionary of Business English, Oxford University Press, 1993.

19. Turcu, F., Engleza de afaceri în economia de piaţă, Bucureşti, Ed. Uranus, 1999.

20. Turcu, F., Năstăsescu Violeta, Engleza de afaceri, curs intensiv, editura Uranus, 1999.

21. Vasilescu R., Dumbrăvescu D., Niculescu A., Burcea R., Dicţionar explicativ poliglot de termeni economici, Editura Fundaţiei România de Mâine, 2006.

22. Zahler, K.A., Lichtenstein,E., 21st Century Office Assistant's Manual, Philip Lief Group, 1996.

23. www.onestopenglish.com

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