Warming up
Ex. 1. Discuss the following questions.
1. What are the main duties of public relation officer?
2. What is the purpose of a press statement?
3. What do you think the public relation officer should do if he mustn’t reveal the details?
Ex. 2. The following useful phrases will help you to give a press statement.
| How to say nothing | I’m afraid I can’t comment at the moment. A statement will be issued shortly. I’m sorry, but I can’t comment at this stage. Yes, I am pleased to be in your country. Thank you for interest but I can’t tell you anything before the statement is issued. |
| Difficult questions | I didn’t say that at all. I would rather not answer that question at present. Do you have any other questions? |
| Giving information in a press statement | As a result of this meeting, agreement has been reached on the following points. First, …. Secondly, …. Finally, …. Thank you. |
| Not giving information in a press statement | This has been a useful meeting. Both parties have expressed their views clearly, and the meeting has taken place in a spirit of cooperation. Further details cannot be given at present, but it is hoped that the increased understanding resulting from this meeting will be of assistance in resolving the present situation. I am afraid that we cannot answer questions at this stage. Thank you. |
Ex. 3. Produce the dialogue on the given topic.
Imagine you are leaving an important negotiation with another company. The press are at the door. You must speak to the journalists, but try not to tell them anything (except that a statement will be issued soon). Answer their questions:
1. Good afternoon Mr. / Mrs. …. Could I ask you a couple of questions?
2. Could you say if the negotiations were a success, from your point of view?
3. Can you tell us, what will be in the statement?
4. Are you pleased to be here?
5. So, you think the negotiations have been good for your company?
6. Do you have any plans for similar talks with other companies in the industry?
7. One last question: is it true that you said you expect to get everything you want from these negotiations?
8. Thank you…
Ex. 4. Speak on the given topic.
You are a Public relation officer. You’ve just been present at an important negotiations with another company. Give a press statement, but don’t tell the details and try to be polite.
Listening
Ex. 5. Malcolm, an undergraduate studying Marketing, is giving a presentation about an internship he served in an advertising company to the other students on his course. A fellow student took some notes while he was talking, but was distracted and made some mistakes. The mistakes are underlined in the notes below. Listen to the presentation and correct the mistakes.
| Notes | Correct information |
| 1. The company was founded in 1996. | |
| 2. They have a turnover of 800,000 Euros a year. | |
| 3. Malcolm helped in the marketing department in Paris. | |
| 4. Malcolm had to secure the advertising deals. | |
| 5. He spoke French on the phone every day. | |
| 6. He observed the marketing team brainstorm ideas for advertising new products. | |
| 7. He ate lunch in the office canteen. | |
| 8. The main disadvantage was that he didn’t meet people from other departments. |
Ex. 6. Listen to the presentation again and give its main points. Make a presentation about your internship or training practice.
UNIT 5. NEGOTIATING
Warming up
Ex. 1. Discuss the following questions.
1. Do you know what negotiation is?
2. When do you have to negotiate?
3. Do you like negotiating? Why/why not?
4. Do you think people should tell the complete truth when negotiating?
Ex. 2. Read the following extract and discuss the questions below. Which of the situations remind you of something that’s happened to you? Discuss your ideas with other people in the class.
1. Daily life is full of negotiations that can drive you crazy. Over breakfast you get into an argument with your spouse about buying a new car. You think it’s time, but your spouse says: “Don’t be ridiculous! You know we can’t afford it right now”.
2. A morning meeting with your boss. You present him with a carefully prepared proposal for a new project, but he interrupts you after a minute and says: “We already tried that and it didn’t work. Next item”.
3. During your lunch hour you try to return a defective toaster-oven, but the salesperson refuses to refund your money because you don’t have the sales slip: “It’s store policy”.
4. In the evening you need to return some phone calls, but the line is tied up by your thirteen-year-old daughter. Exasperated, you ask her to get off the phone. She yells: “Why don’t you get me my own phone line? All my friends have them”.
5. In order to give the person in the extract in 1 advice, what else would you need to know about each situation?
6. What would you say in response to each of the people in the text? Compare your ideas with a partner.
7. Complete the following sentence in not more than five words: ‘A good negotiator....’
Types of Negotiation
Ex. 1. Relate these headlines to the situations below. Then choose any type you like and describe it.
| customer-supplier negotiations wage negotiations merger or takeover negotiations trade negotiations | contract disputes labour disputes trade disputes |
Ex. 2. a) Study the following negotiating styles and discuss the questions below.
1. Avoider: Hate conflicts and avoid them at all costs. Hence making an agreement with an Avoider very difficult.
2. Compromiser: Their priority is to maintain a productive relationship. So they will make a compromise first, giving the other person what they want in order to reach an agreement and preserve the relationship.
3. Accommodator: They like to resolve conflict by solving the other person’s problems. If the other person is also an accommodator then they return the favour and help solve their problems. If not, the other person takes and gives nothing in return.
4. Competitor: They like to win and be in control of the situation. They believe if they win, you lose.
5. Problem Solver: The most imaginative thinkers who think about fair “win / win” solutions and greater solutions that “ make the pie bigger. ”
b) Now study what outcomes (Good or Bad) these negotiation styles produced when two people (A and B) interacted together in a negotiation. What did the research show?
| Avoider (B) | Compromiser (B) | Accommodator (B) | Competitor (B) | Problem Solver (B) | |
| Avoider (A) | Good | Bad | Bad | Bad | Bad |
| Compromiser (A) | Bad | Good | Good | Bad | Good |
| Accommodator (A) | Bad | Good | Good | Bad | Good |
| Competitor (A) | Bad | Bad | Bad | Good | Good |
| Problem Solver (A) | Bad | Good | Good | Good | Good |
1. Do you think there are more or less than 5 common negotiation styles?
2. In your opinion, what type of people (negotiation style) do you like to negotiate with? Why?
3. When have you been most effective in negotiations?
4. Describe your favourite negotiators.
5. In your sector which negotiation style is the most typical? Why?
6. Can you think of other habits of effective negotiators?
Preparing to Negotiate
Ex. 1. Look at these golden rules to successful negotiations. Do you agree with the advice? What other advice would you give?
1. Always try to negotiate for at least 15 minutes. Any less than that and it is unlikely that either party has had enough time to fairly consider the other side. Generally, the size or seriousness of the negotiation determines the amount of time needed to negotiate it. Setting a time limit is a good idea. Approximately 90 % of negotiations get settled in the last 10% of the discussion.
2. Always offer to let the other party speak first. This is especially important if you are the one making a request for something such as a raise. The other party may have overestimated what you are going to ask for and may actually offer more than what you were going to request.
3. Always respect and listen to what your opponent has to say. This is important even if he or she does not extend the same courtesy to you. Do your best to remain calm and pleasant even if the other party is displaying frustration or anger. Remember some people will do anything to intimidate you.
4. Acknowledge what the other party says. Everyone likes to know that what they say is important. If the other party opens first, use it to your advantage, by paraphrasing what you have heard. Repeat their important ideas before you introduce your own stronger ones.
5. Pay attention to your own and your counterpartner’s body language. Review the chart below to learn how to interpret body language during the negotiations. Make sure that you aren’t conveying any negative body language.
Ex. 2. Practice the following dialogue with a partner.
Ann: Flying Bird. Ann Smith speaking. How can I help you?
Tom: Oh, hello. This is Tom Sanders calling from Design Express. Thank you for asking us to quote for designing your newsletter. Based on the specification you gave, that’ll be £75 per page – so, £600 per issue.
Ann: £75 a page? That sounds rather a lot … but then I don’t know much about design costs these days ….
Tom: I assure you you’ll not find a cheaper quote elsewhere – we’re very professional and extremely competitive.
Ann: Hmm … I can’t really compare, as I haven’t asked anyone else for a quote – but it’s more than we can afford. Um … perhaps you’d like to reconsider your price – or offer a discount, as it’s the first issue and everything.
Tom: A discount? We don’t usually offer discounts, I’m afraid.
Ann: Well, we urgently need the newsletter designed, so we’ll pay the £600 this time, but I’m afraid we won’t be able to use your services in the future.
Tom: Oh, I see. Well, I’m sorry you feel that way, but ….
Ex. 3. Look back at the dialogue. What advice would you give each speaker for improving their negotiation skills?
Ex. 4. Read the following situations and respond to each of them.
1. I need to know that construction work will not disturb my employees.
2. Production cannot be disrupted. Can you guarantee to have the spare parts for the broken machine to me by the end of the week?
3. Your company didn’t supply suitable goods last month. Can you assure me that quality of the next batch will be better?
4. Health and Safety standards have to be met. Is the lightning adequate in this office?
5. How can I reassure my staff that they will have enough desk space for the work they do? They have heard that the new desks will be smaller than their current ones.
6. We need meeting rooms with large screens for video-conferencing sessions. I’m not convinced these requirements went into the specification.
7. How can I be sure you will deliver on time? You have been consistently late in the past.
8. Your company is new on the international market. How do I know that you will give me the service I need?
Reaching Agreement
Listening
Ex. 1. Listen to an experienced negotiator speak about reaching agreement. Make notes on what he says about influencing people under the headings given.
Persuading Checking and clarifying
Listening Giving reassurance
Ex. 2. Mr. Brown is head of Aero Bravo a Brazilian aircraft manufacturer. He is preparing for negotiations with Siemens, an engine supplier. Match each point (1–6) in Mr. Brown’s notes with one of the tips (a–f).
1. Organize preparatory meeting with head of manufacturing and head of purchasing to discuss strategy.
2. Persuade Siemens representatives to come to our office in Săn Paulo.
3. Principal objective: delivery of first 20 engines in six months; other objectives: flexible payment, strong quality guarantees; price less important, but aim for us $500,000 per engine; find out more about Siemens ’ priorities.
4. Rumor says that Siemens are in financial difficulty: they badly need orders.
5. Will accept price up to us $550,000 if specifications are good.
6. Siemens well-known in the industry for its ”strong” negotiating techniques.
a) Get as much information as possible about the situation. If dealing with people from another culture, find out about its etiquette and negotiating styles: the way people negotiate, what they consider to be acceptable and unacceptable behavior, and so on.
b) Work out your initial bargaining position: what are your needs and objectives (the things that you want to achieve)? Decide your priorities (the most important objectives).
c) Try to estimate the needs and objectives of the other side.
d) Prepare a fallback position: conditions that you will accept if your original objectives are not met.
e) Perhaps you are in a position to influence the choice of venue: the place where you are going to meet. If so, would you prefer to:
– be on your own ground/home ground (in your own offices);
– go to see the other side on their gro und (in their offices);
– meet on neutral ground, for example in a hotel?
f) If you are negotiating as part of a negotiating team, consult your colleagues about points a) to e), and allocate roles and responsibilities.
Ex. 3. In your own words, explain the words and expressions in bold.
Ex. 4. Look at the steps and arrange the phrases Mr. Brown uses at the beginning of the negotiation in the correct order.
| At the beginning of a negotiation, follow these steps | |
| Meet and greet representatives of the other company and introduce your colleagues |
| Offer coffee and small talk. Try to create a relaxed atmosphere |
| Go to the meeting room and suggest that you get down to business. |
| Have a clear agenda and timetable |
| First, give the background to the negotiations. Talking about the situation is a good way of reminding people of key facts and issues. |
| Then kick off the negotiations themselves, perhaps by finding out more about the priorities of the other side (the things they think are almost important) or talking about your own requirements |
1. As you all probably know, Mr. White and I met at the Aerospace Trade Fair in Frankfurt last year and we had a very interesting discussion about the possibility of our companies working together.
2. I believe you’re flying back on Friday evening, so that gives us three days. I think two days should be enough to cover all the points. On the third day, Friday, if we have an agreement, I’ll ask our lawyers to finalize conditions for the contract with you.
3. Mr. White, good to see you again. How are you? Let me introduce my colleagues: Sandra Brown, our chief purchasing officer, and this is Fred Eaglesmith, head of production at Aero Bravo.
4. Shall we go to the conference room and make a start?
5. Well we’ve looked at the potential market for our new plane, and it looks as if we will need 100 engines over the next three years.
6. Would you like some coffee or tea, or would you prefer juice? How was the flight?
Language input
Ex. 5. Below are the stages of a negotiation and some expressions which you may find useful at this stage. Learn the new words and word combinations. Consult the dictionary if you don’t know the meaning.
| Conversation | I’m sure / confident we can reach agreement (optimistic). I’m sure there’s room for negotiation. We have a lot to discuss. Let’s see how we get on (cautious). |
| Presenting your position | This is our position. This is how we see it. We think the following is reasonable / appropriate. Our approach is this. |
| Questioning the other’s position | How do you / explain your attitude? / Justify …? Account for…? Arrive at…? Why do you want …? Why such a / high charge? /long delivery period? / low discount? |
| Refusing to accept | I’m sorry, I can’t accept 2 %. You’ll have to do better than that, I’m afraid. I’m afraid it’s not enough. Other firms offer more than 2 %. |
| Refusing to move | I’m afraid I can’t agree to that / increase the rate/lower the price / shorten delivery. We’ve done our best for you. We have to maintain a policy. I have my instructions. |
| Suggestion a compromise | May I make a suggestion? If you … then we may be able to …. We may be able to … but only if you …. Unless you … there is no question of our being able to …. |
| Reaching agreement | Let’s just go through the terms. Let’s summarize the conditions. |
Ex. 6. Practice the following dialogue with a partner.
Now you have the opportunity to negotiate delivery periods for machines you have ordered with the supplier. When the supplier stops talking you should speak in turn until an agreement is reached. The information above will help you.
Supplier: Well, let’s get started. You know, with this delivery problem. I’m sure there’s room for negotiation.
You: ………………………..
Supplier: Right, well this is how we see it. We can deliver the first machine in ten weeks, and install it four weeks after that.
You: ………………………...
Supplier: Well, these are in fact the usual periods. It’s pretty normal in this kind of operation. Did you expect we could deliver any quicker?
You: ………………………...
Supplier: I see what you mean, but that would be very difficult. You see we have a lot of orders to handle at present, and moving just one of these machines is a major operation. Look, if I can promise you a delivery in eight weeks, does that help?
You: ………………………...
Supplier: Ah – ha! Well, look … er … You want the machine in six weeks. Now that is really a very short deadline in this business. You said that you couldn’t take it any later, but couldn’t your engineers find a way to re-schedule just a little, say another week?
You: ………………………...
Supplier: Well, you really are asking us for something that is very difficult. I’ve already offered you seven weeks. I’ll have to consult with my colleagues and come back to you, but I can’t see what we can do.
You: ………………………
Supplier: Well, on that basis I suppose we might be able to look at some kind of arrangement. In fact, if you can promise another order I think we could accept your terms.
You: ……………………….
Supplier: Exactly. If you could confirm this in writing I ….
Ex. 7. Act out your own dialogues based on situations 1–3.
1. Negotiate your salary and benefits package for a job you’ve just been offered with a new employer. The employer would like to know what you were compensated in your last job.
2. You go out to see a car. It is great and you want it. The owner tells you the asking price. You don’t want to pay so much. Negotiate over the price.
3 You work for Jason Electrics, a company that manufactures electrical cable. The regular working week for production staff is 39 hours, compared with a maximum of 37 hours in other, similar companies in on the estate. The union would like to negotiate a reduction in working hours to 37, without any reduction in basic salary. They realize that in return for this they will probably have to increase productivity. The management is happy to consider a reduction in hours if it can win greater productivity and flexibility in working time. (It often needs to ask staff to do overtime for special orders).
Listening
Ex. 8. You are going to hear an interview with experienced management consultant Brian Fields. Brian discusses key concepts and important strategic considerations. Listen to the dialogue and answer the questions that follow.
1 What are the top mistakes people make in a negotiation?
2 What is a BATNA, or “best alternative to a negotiated agreement?”
3 What does Brian think about the idea of “win-win” negotiations?
Ex. 9. Listen and check your answers.
UNIT 6. FINANCE
Warming up
Ex. 1. Discuss the following questions.
1. Do you think finance has different meanings to different people? Explain your ideas.
2. What does the area of finance cover?
3. Would you like to work in finance? In what sphere?
Costs and Production
Warming up
Ex. 2. Read the text and discuss the following questions.
It is difficult for companies to set the price of a product. A lower price may help to increase sales, but it also reduces the profit margin. As a result, the company may have to cut costs to keep prices down. We often use graphs to show trends in prices over months or years. Studying the trends can help the company to choose the right pricing strategy for their products.
1. What kind of products and services are increasing in price at the moment? What things are getting cheaper?
2. How can the wrong pricing strategy reduce a profit margin?
3. Why do businessmen need to study the graphs?
Language input
Ex. 3. Learn the new words and word combinations. If you don’t know the meaning – consult the dictionary.
| account administrative expenses assets | debit / debtor debts distribution costs | liabilities ordinary shares preference shares |
| bankruptcy bill of exchange bill of lading cash flow | dividend financial year fixed profit margin fixed costs | overdue payment overheads payment payment order |
| COD (cash on delivery) CWO (cash with order) credit / creditor | gross profit inflation (in)tangible asset | quote a price surcharge transaction |
| credit loan current assets deadline | interest payable invoice inventory (AmE) / stock (BrE) | turnover value added tax wages |
Ex. 4. Add the missing word to the puzzle. Use the rest of new words and word combinations in your own sentences.
1. Few companies pay their shareholders a regular ….
2. Suppliers expect their … to be paid promptly.
3. The increase in … will not change our price policy.
4. Although we paid our bills regularly, we still have some outstanding ….
5. If you buy something by mail order it’s normal to pay CWO (…), rather than COD (…).
6. We were about to breach the contract with our suppliers, because the goods arrived after the ….
7. People with large incomes or … can always get credit from a bank.
Ex. 5. The following verbs can all be used to describe changes commonly represented on line graphs. Learn them and then answer the questions below.
Plummet decrease fluctuate peak rise
drop rocket increase decline level out
soar fall
1. Which 5 verbs mean “go up”?
2. Of these, which 3 mean “go up suddenly/a lot”?
3. Which 5 verbs mean “go down”?
4. Which verb means “reach its highest level”?
5. Which verb means “stay the same”?
6. Which verb means “go up and down”?
Ex. 6. Look at the different types of graphs and charts. Match them with the following labels. Compare your answers with the answers of your partners. What types have you ever used in your scientific works? For what purposes?
line graph pie chart flow chart pictogram
bar chart scatter diagram
Ex. 6. Study the following tips to describe the graphs. Use it as a plan in further graphs descriptions.:
1. Carefully analyze the table or chart before you start writing. What are the topics and the time frame? What do the numbers and labels represent?
2. Be clear about what you are describing: A number? A percentage? A price?
3. Start by describing the overall situation.
4. DO NOT describe every single detail. Find important trends. Select examples that represent the overall picture.
5. Try not to keep repeating the same language and sentence structures.
6. DO NOT describe the reasons or give your opinions — stick to the facts.
7. Finish with a concluding sentence summarizing what we learn from the chart.
Ex. 7. Study the following phrases clichés which will help you to describe graphs.
| Presenting visuals | As you will see from this graph.... I'd like to show you.... Let me draw your attention to this part of the graph. Let's look more closely at this month’s figures. Here you can see a comparison between.... |
| On the line graph you will note | A strong upward trend in the sales of product A.... Despite occasional fluctuations …. With a slight drop during the holiday season.... With occasional variations due to …. A period of slower growth in the second half of the year. |
| Commenting trends | Increases: A slight / constant / marked / substantial increase in sales. An increase of about / roughly / approximately / in the region of … %. A little over / above what we predicted …. An upward trend in the demand for.... Sales reached record levels/reached a peak in (month) …. Decreases: just under our target way below our expectations a slight / notable / significant decrease in…. a drop of about % in.... a slight / regular / dramatic decline / reduction in.... Fluctuations / Variations: A slow start developed into steady progress in sales. An initial upward trend was followed by.... We note slight fluctuations throughout the year. Normal seasonal variations are the cause of occasional downward trends. Sales have been (rather) irregular …. |
| Conclusions | We must focus our attention on …. What I suggest is …. Appropriate measures must be taken …. The result/outcome will be …. To conclude, I am happy/I regret to announce that …. |
Ex. 8. Study the chart showing production of vehicles from 1992 to 2006. Present this graph to your colleagues. Be ready to answer questions after your presentation.
Payments
Warming up
Ex. 1. Discuss the following questions.
1. What types of payments can the customers use?
2. What type of payments have you used? When?
3. What should be done in case of overdue payment?
Ex. 2. Read the following dialogue between Rachel, the owner of a small business and her business account manager and find out the ways of international payment. Practice the dialogue with your partner.
Account manager: Ah, Rachel, good to see you again. What can I do to help you?
Rachel: Well, as you know, I run a small company manufacturing children’s clothes. I’ve recently increased production, and I’m very happy with my sales figures. What I’d like to know is if I can make and accept payments in foreign currencies.
Account manager: There shouldn’t be a problem. We have an extensive foreign correspondent bank network so funds can easily be transferred worldwide.
Rachel: So this bank is part of a network of foreign banks?
Account manager: That’s right. The advantage is that payments can be made and received quickly and efficiently and at the lowest cost to you and your suppliers and purchasers. You can do this by wire transfer – it’s the fastest and safest way to transmit money around the world. Using our services, you can send international wires in foreign currency. You pay lower fees and you reduce risk because you lock in the exchange rate and know the full cost of the transaction before the wire is sent.
Rachel: How exactly does this reduce risk?
Account manager: Currency exchange rates fluctuate, so if you send a wire in sterling, you won’t know the exact exchange rate applicable when the wire is received and the funds converted into the foreign currency. You could find yourself under or overpaying your supplier. Using the supplier’s currency may also mean you can negotiate more favorable pricing of materials.
Rachel: What happens if a foreign customer wants to pay by cheque?
Account manager: We offer foreign currency cheque conversions for a wide range of countries. We can even offer Next-day credit for many countries, so you don’t have to wait weeks for the cheque to clear. All you have to do is complete a foreign cash letter agreement and send it, along with the cheque and a deposit slip, to our foreign cheque processing centre.
Ex. 3. Speak on the given topic.
Imagine you are the business account manager. Give the advice of the most efficient ways of international payment.
Language input
Ex. 4. Sometimes you may need to call a customer, in English, to ask where the money is! The following phrases will help you to deal with this situation.
| You | You |
| I’m sure you know why I’m ringing. Then why didn’t you tell us earlier? You realize that payment is now overdue? You know that you’ve exceeded your credit limit? Our agreement was quite clear concerning payment. I’m only concerned the promises are kept. I don’t think I like your attitude. | I’d like your payment to be made without any more delay. We don’t want to have to take the matter any further. We’ll be able to process your orders as soon as your payment comes through. I look forward to immediate payment, then. Thank you. Good bye. |
| The customer | If the problem is very serious you may have to end the call with |
| It’s because – of defects in your product; – of errors in your invoice; – you sent the wrong items. | We may have to consider legal action. |
Ex. 5. Study the following numerical expressions and symbols which will help you in reading business documents.
| 07/09/1959 | The seventh of September 1959 (BrE) The ninth of July 1959 (AmE) | 37 % | thirty seven percent |
| Nineteen fifty-nine | @ | at sign | |
| Nineteen hundred | . | dot (howard@yahoo.com – howard at yahoo dot com) | |
| (The year) two thousand and eleven | / | slash / stroke | |
| 1/8 | one eighth | \ | backslash |
| 1/4 | a / one quarter | () | brackets |
| 1/3 | a / one third | [ ] | square brackets |
| ½ | a / one half | - | dash |
| 3/4 | three quarters | _ | understrike |
| 2.36 | two point three six | : | colon |
| 0.125 | (nought) / (zero) point one two five | ; | semicolon |
Ex. 6. a) Practice saying the following.
0.15 %; Invoice No. H345/5 – L45; ½ of the profit; $2,560,600;
esl@gmail.com
b) Use the numerical expressions and symbols in your own sentences.
Ex. 6. a) Read the text and number the lines in the correct order.
__ can borrow it, and in doing so they issue certificates of debt. These certificates are called
__ obtain money through taxation or through borrowing. When a government borrows, it
__ them. A person who buys a bond expects, over time, to recover the principal (the amount
___money). Corporations also have two means of raising money (apart from profits). They
___ Governments and corporations need money in order to operate. Governments can
___bonds. As with government bonds, interest is paid to the buyer. The second way for a
__ issues bonds, or certificates of debt. These certificates pay interest to the people that buy
__ company to raise money is to issue stocks, which represent ownership in the corporation.
__ of the loan) plus the interest (the fee the government pays the lender for the use of the
Finance and The Company
Warming up
Ex. 1. Discuss the following questions.
1. What do you know about the financial and accounting side of business?
2. Would you like to work in the financial and accounting department of a company? Why or why not?
3. Do you think companies have much paperwork? What kind of paperwork do companies have?
Ex. 2. Look at the sample definition and define the words below.
E.g.Paperwork is the movement of documents involved in a transaction.
capital liabilities balance sheet fixed assets
current assets debtor creditor inflation
Ex. 3. a) Rearrange the order of operations involved in the transaction. The first one has been done for you.
| You check the payment. | |
| The customer places the order. | |
| The customer checks the invoice. | |
| You acknowledge the order. | |
| You invoice the customer. | |
| A potential customer makes an inquiry. | |
| You produce and dispatch goods. | |
| You quote a selling price. | |
| The customer makes payment. |
b) Describe the usual order of “paperwork” – the movement of documents in transaction.
Ex. 4. Compare actual to budget costs using the expressions above / up on and below / down on; express the variance using by.
| Six months costs analysis January-July, 2010 | |||
| Cost | Actual cost $ 000 | Budget $ 000 | Variance favorable / adverse, $ 000 |
| Direct wages Direct materials Factory costs Indirect wages Selling and distribution Administrative costs | 9,550 12,500 3,760 4,350 2,550 2,960 | 9,000 11,000 3,500 4,500 2,750 2,700 | (550) (1,500) (260) (260) |
| TOTAL COSTS | 35,670 | 33,450 | (2,220) |
Listening
Ex. 5. а) Listen to this Finance Director and complete the balance sheet with the correct numbers.
b) Now use the information in the balance sheet to complete these calculations.
1. Working capital (current assets – current liabilities) =....
2. Total net asserts ( fixed assets + working capital ) =....
Ex. 6. Complete each space in the text with the following words from the box.
demand inelastic elastic economic falls inverse
percentage increases direct economists income price
Demand for a product is affected by a range of variables. Two key variables are the (1) price of the product, and consumers’ (2).... According to (3)... theory, there is normally an (4)... relationship between the price of a product and the quantity demanded of that product. As price (5)..., the quantity demanded increases. There is else normally a (6)... relationship between consumers' income and the quantity demanded at any given price; i.e. as consumers’ income increases, demand (7).... The (18)... for some products is very responsive to changes in price or in consumers’ income. A certain (9)... change in price or income leads to a greater percentage change in the quantity demanded. (10)... describe such products as having (11)... demand. The demand for some other products is much less responsive to changes in price or income, These products are said to have (12)... demand.
Ex. 7. a) Using the following notes plus your own ideas, write a letter in your notebook offering advice to a friend who is trying to reduce expenses in his / her small hotel business.
b) In pairs, role-play a conversation in which two friends compare and discuss problems they have had in managing expenses.