Curs Engleza Id 2

UNIVERSITATEA BABEŞ-BOLYAI

FACULTATEA DE ŞTIINŢE ECONOMICE ŞI GESTIUNEA AFACERILOR

CATEDRA DE LIMBI MODERNE ŞI COMUNICARE ÎN AFACERI

CURS PRACTIC DE LIMBI MODERNE APLICATE ÎN

DOMENIUL AFACERILOR

LIMBA ENGLEZĂ – ANUL II-

Asist. drd. DIANA ZAGAN ZELTER

Asist. drd. KOVÁCS RÉKA

CLUJ-NAPOCA

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I. Informaţii generale

Date de identificare a cursului Date de contact ale titularului de curs:

Nume: DIANA ZAGAN ZELTER şi KOVÁCS RÉKABirou: Campus, 113, etaj ITelefon: 418 655Fax: E-mail: [email protected]@lingua.ubbcluj.roConsultaţii: luni, joi, 17.30-19

Date de identificare curs şi contact tutori:

Numele cursului: Curs practic de limbi moderne aplicate în domeniul afacerilor - limba englezăCodul cursului: Anul, Semestrul: anul II sem. 1,2Tipul cursului: obligatoriuPagina web a cursului: -Tutor: Adresa e-mail:

Condiţionări şi cunoştinţe prealabileÎnscrierea şi frecventarea acestui curs presupune parcurgerea şi promovarea programei de studiu din anul I de la FSEGA la disciplina limba engleză sau un nivel de limba engleză cel puţin B2 conform Portofoliului lingvistic european. Descrierea cursuluiCursul se adresează studenţilor de anul II de la Facultatea de Ştiinţe Economice. Organizarea temelor în cadrul cursuluiOrganizarea temelor din cadrul cursului precum şi bibliografia care trebuie consultată sunt prezentate în detaliu în paginile introductive ale syllabus-ului. Formatul şi tipul activităţilor implicate de cursStudentul are libertatea de a-şi gestiona singur, fără constrângeri, modalitatea şi timpul de parcurgere a cursului. În cadrul cursului vor fi abordate următoarele tipuri de activităţi: proiecte de grup, proiecte individuale, studiu individual, activităţi tutoriale. Materiale bibliografice obligatoriiSursele bibliografice obligatorii pentru acest curs se regăsesc în syllabus-ul aferent cursului. Dintre acestea, enumerăm:

1. Adam, J.H. – Dictionary of Business English, Longman York Press, 1988

2. Brookes, Michael – Business English, Teora, 2002

3. Budai László: Gramatica engleză. Teorie şi exerciţii, Teora, 2002

4. Hollinger, Alexander – Test Your Business English Vocabulary, Teora, 2002

5. Jones, Leo – New International Business English, Cambridge Publishing House, 1996

6. MacKenzie, Ian – English for Business Studies, Cambridge University Press, 1997

7. Mascull, Bill: Business Vocabulary in Use, Cambridge University Press, 2004

8. Tullis, Graham – New Insights Into Business English, Longman, 2000

9. Topală, Dragoş Vlad – Dicţionar economic englez-român, Editura Economică, 1999

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Calendar al cursului

Săp

tăm

âna

tema termenpredare

1 Marketing noiembrie2 Finance and Accounting3 Import - Export decembrie4 Starting a Business/The Business Plan martie5 Bank, Stocks and Shares6 Insurance7 Corporate Alliances and Acquisitions mai

Politica de evaluare şi notare- tipurile de evaluare ce vor fi utilizate: test de testare a competenţei lingvistice

(listening, reading, vocabulary, English in use, writing)- criteriile de notare: evaluarea studenţilor se va realiza conform rezultatelor primite

la testul de testare a competenţei lingvistice- studenţii trebuie să păstreze toate sarcinile realizate pe parcursul cursului până la

primirea notei finale- forma sub care studenţii vor primi feed-back la sarcinile realizate: prin e-mail,

prin comunicare directă pentru cei ce solicită acest feed-back Elemente de deontologie academicăCodul de deontologie academică reglementează următoarele:

Frauda se referă la:

a. copiat (utilizarea de materiale sau informaţii neautorizate), falsificări, şi orice alte activităţi care pot afecta o corectă evaluare a performanţelor studenţilor

b. ajutorul acordat altora în aceste privinţec. încercarea de a se angaja în astfel de fapte

Studenţi cu dizabilităţiExistă disponibilitatea de a lua legătura cu studenţii afectaţi de dizabilităţi motorii sau intelectuale pentru a identifica eventuale soluţii în vederea oferirii de şanse egale acestora. Calea de comunicare prin care putem fi contactaţi pentru acest gen de situaţii: e-mail sau prin comunicare directă pentru cei ce solicită acest feed-back. Strategii de studiu recomandateNumărul de ore estimativ pentru parcurgerea cursului (suport de curs, activităţi, discuţii, sarcini etc.) este de 100.

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CONTENTS

Module 1 MARKETING 6

Module 2 FINANCE AND ACCOUNTING 19

Module 3 IMPORT - EXPORT 31

Module 4 STARTING A BUSINESS/THE BUSINESS PLAN 40

Module 5 BANKS, STOCKS AND SHARES 46

Module 6 INSURANCE 57

Module 7 CORPORATE ALLIANCES AND ACQUISITIONS 62

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MODULE 1

MARKETING

Basic Concepts:

Marketing, the marketing mix, product, promotion, advertising

General objectives :

a. to improve students’ command of English

b. to help students develop and practice basic skills to enable them to operate

effectively in real life situations

c. to increase students’ knowledge of business terms

Specific objectives:

a. to provide information and explanations about notions related to

marketing;

b. to improve vocabulary related to the field of marketing

c. to revise grammar knowledge about conditionals

Recommendations:

a. read the texts carefully and try to address the corresponding tasks

b. use the dictionary to improve your vocabulary

c. focus on content and on language use

d. improve your control of grammar and build your vocabulary by

practicing different types of exercises

Expected results:

a. improve students’ command of English

b. build up speaking and writing skills

c. practice writing for specific purposes

d. encourage the independent study and self-instruction

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GROUP DISCUSSION:

Choose one of the definitions above and explain why you consider it the most suitable for

the field of marketing.

The 'marketing mix' is probably the most famous phrase in marketing. The elements are

the marketing 'tactics'. Also known as the 'four Ps', the marketing mix elements are

price, place , product, and promotion.

Some commentators will increase the mix to the 'five Ps', to include people. Others will

increase the mix to 'Seven Ps', to include physical evidence (such as uniforms, facilities,

or livery) and process (i.e. the whole customer experience e.g. a visit to the Disney

World). The term was coined by Neil H. Borden in his article 'The Concept of the

Marketing Mix' in 1965.

The concept is simple. Think about another common mix - a cake mix. All cakes contain

eggs, milk, flour, and sugar. However, you can alter the final cake by altering the

amounts of mix elements contained in it. So for a sweet cake add more sugar! It is the

same with the marketing mix. The offer you make to you customer can be altered by

varying the mix elements. So for a high profile brand increase the focus on promotion

and desensitize the weight given to price.

Promotion

Another one of the 4P's is 'promotion'. This includes all of the tools available to the

marketer for 'marketing communication'. As with Neil H. Borden’s marketing mix,

marketing communications has its own 'promotions mix.' Think of it like a cake mix, the

basic ingredients are always the same. However, if you vary the amounts of one of the

ingredients, the final outcome is different. It is the same with promotions. You can

'integrate' different aspects of the promotions mix to deliver a unique campaign. The

elements of the promotions mix are:

1. Personal Selling

2. Sales Promotion

3. Public Relations

4. Direct Mail

5. Trade Fairs and Exhibitions

6. Advertising

7. Sponsorship

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http://www.marketingteacher.com/Lessons/lesson_pricing.htm

http://www.marketingteacher.com/Lessons/lesson_promotion.htm

http://www.marketingteacher.com/Lessons/lesson_plc.htm

http://www.marketingteacher.com/Lessons/lesson_place.htm

http://www.marketingteacher.com/Lessons/lesson_place.htm

The elements of the promotions mix are integrated to form a coherent campaign. As with

all forms of communication, the message from the marketer follows the 'communications

process' as illustrated above. For example, a radio advert is made for a car manufacturer.

The car manufacturer (sender) pays for a specific advert which contains a message

specific to a target audience (encoding). It is transmitted during a set of commercials

from a radio station (Message / media). The message is decoded by a car radio (decoding)

and the target consumer interprets the message (receiver). He or she might visit a

dealership or seek further information from a web site (Response). The consumer might

buy a car or express an interest or dislike (feedback). This information will inform future

elements of an integrated promotional campaign. Perhaps a direct mail campaign would

push the consumer to the point of purchase. Noise represents the thousand of marketing

communications that a consumer is exposed to everyday, all competing for attention.

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GROUP DISCUSSION:

Which element of the promotions mix do you consider as being the most important?

Justify your answer.

VOCABULARY PRACTICE

For each definition choose the correct word or phrase (ex. 1-c):

1. Providing money to cultural or sporting activities in exchange for advertising rights

a) promotion b) grant aid c) sponsorship

2. A business which specializes in giving advice and support to companies about

marketing and markets

a) marketing consultancy b) counselling service c) company analysts

3. An economy which allows open and reasonably free exchange between private

companies

a) command economy b) conservative economy c) free market economy

4. A market in which there are too many suppliers producing similar products

a) saturated market b) buyers’ market c) heavy market

5. A market in which there are few suppliers producing goods that a lot of people want to

buy

a) weak market b) sellers’ market c) light market

6. A person who uses their specialist knowledge of a specific market to try to explain

what has happened and predict what will happen

a) market analyst b) forecaster c) market broker

7. A specific promotional activity over a limited period of time

a) campaign b) season c) trend

8. The activity of moving goods from the producer to the consumer

a) selling b) distribution c) orientation

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9. The proportion of the total market which one company controls

a) dominion b) market place c) market share

10. What a company or organization says it intends to do for its customers and the

community

a) corporate mission b) strategic plan c) corporate image

TYPES OF PROMOTION

1. Choose the correct alternative for each sentence. In one case, both/all of the

alternatives are possible.

1. direct mailing / mail order / postal advertising

Sending product or service information by post to specific individuals or companies is

called direct mailing.

2. personal selling / direct selling

A selling technique based on making a personal call to an individual or company is called

…

3. an in-store promotion / a special offer

A promotion based on advertising in the actual shop is …

4. point-of-sale advertising / on-pack promotion

A promotion method that involves the packaging of a product, such as including a free

sample or coupon is called …

5. sponsorship / perimeter advertising

Advertising around the playing area at sports grounds is called …

6. bargain selling / BOGOF

A promotion method for fast moving consumer goods which involves buying one and

getting one free is called …

7. online advertising / advertising on the web / Internet advertising

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Promoting your activities or your company and its products or services on the internet is

called …

8. cold calling / door-to-door selling

Telephoning direct to homes or businesses to try to interest people in your services or

your products is called …

SPEAKING

1. Discuss the following with a partner:

Negotiate a list including what you consider to be the DOs and DON’Ts of promotional

sales.

2. Discuss on the following topics, agreeing or disagreeing on the truth value of each

statement:

-Advertising does not present a real image of the product, exaggerating its characteristics.

-Advertising raises prices and brings few benefits.

-Advertising sometimes persuades customers to buy products they do not need.

3. Read the following text about direct mail and express your personal opinions about the

issues presented there:

Direct Mail's Deadly Sins

From Apryl Duncan,

Your Guide to Advertising.

How much junk mail do you receive each day? Do you read it? Toss it?

Now put yourself in the shoes of your direct mail recipients. Avoid direct mail deadly mistakes or your

materials will end up in the trash too.

Before you even begin to put your direct mail campaign together, you've got to know who your target

market is. Are they women? Parents? Young? Old? Understand what motivates them. What are their likes

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http://advertising.about.com/

http://advertising.about.com/mbiopage.htm

http://advertising.about.com/mbiopage.htm

and dislikes?

Write as if you're talking to them. And even use terms these types of people would use.

But all the fancy graphics and the most beautifully created sentences in the world won't do you a bit of good

if you don't carefully select the people on your mailing list. If you're selling adult diapers, you want to target

senior citizens...not 23-year-olds.

Tighten your mailing list as much as possible to be sure it's tailored to your needs. It's tough to make people

believe they need your product and even harder to convince them they need it now. But if you've researched

your list, you have a higher chance of hitting potential customers instead of the trash can.

You've made your list and checked it twice, so-to-speak. It's the perfect list. Now it's time to write. Define

your objectives before you start writing. Stay focused and hit the points of your objective. If you get off

track, your reader is going to stop reading.

Spend a lot of time on your headline. Just remember how you feel when reading mail that comes to you.

After you read that headline, do you keep reading? The headline can make or break your direct mail

campaign.

Does price really matter? Not unless you know what you're getting for that price. Hook your reader with all

of the product benefits. By the time they get to the end, they should be saying, "I can't live without that!"

And then you let them in on the price. Even if the price is extremely low, you have to tell potential

customers about the product first.

Disclosing this price shouldn't put people into shock. Is your product priced according to the market? If

you're selling a new teddy bear, it should be priced within reason. Not many people will pay $90 for a tiny

teddy bear, right? Truth is, a lot of direct mail goes unanswered because the products are unreasonably

priced.

Success! Your potential customer read all the way through your mailing. Now what?

Did you tell the reader what you want them to do? You can't sell if you don't tell.

Your readers need a call to action. Tell them to send in the card, call you, etc. Then tell them again.

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Once your direct mail is ready to go, test several smaller mailings before sending out a huge chunk. Test

each of these mailings by changing a few items when you send them out.

Have two or more sales letters you test against each other. By testing, you will find out which of those

mailings are bringing in more responses and - hopefully - more orders.

Stick with the clear winners. Remember the saying, "If it ain't broke, don't fix it."

Direct mail is a waste of money for a lot of people. But it doesn't have to be for you. Understanding direct

mail deadly mistakes -- and avoiding them -- will lead you to sales success!

4. Read the following example of a direct mail and try to define the basic features of such a letter:

I S L A N D

LONG DISTANCE

September 8, 200x

Julie Smythe

President

Alternative Retailing 777 Easy Way Los Angeles, CA

YOU CAN CUT YOUR COMPANY'S LONG DISTANCE

PHONE EXPENSES BY 30%!

Dear Ms. Smythe:

It's true! Island Long Distance saves direct mail retailers just like you as much as 30% off

their monthly long distance phone bills.

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We offer the same fiber optic telephone lines that your current service now offers, except

we charge a lot less for our high quality service. And, with Island Long Distance, you

never have to worry about lost sales due to a power or systems failure. In the event of an

emergency, our computer will automatically reroute the calls from your 800 system to

another location of your choosing.

Maybe you're wondering why you've never heard of us. That's because unlike AT&T and

MCI, we don't spend millions of dollars on expensive advertising campaigns. We choose

to pass this savings on to you. In fact, most of our new business is generated the old

fashioned way: our customers recommend us to their colleagues.

But that's not all. Island Long Distance offers:

Delayed payment options during your off-peak months. As a clothing retailer,

we understand your business has peaks and valleys, and we're prepared to help you

through the valleys. Simply choose one of our convenient payment options that's

best for your needs.

Guaranteed rates for two years. AT&T, MCI, and Sprint raise their rates 20%

every four months (those clever television commercials sure cost a lot of money).

We don't, and we'll put it in writing.

Guaranteed satisfaction. If after using our long distance for 90 days you're not

completely satisfied for any reason, we'll switch you back to your old service free.

A FREE month of long distance to new customers.

But please don't just take Island's word on it. Here's what some of customers think about

us:

"Island Long Distance has cut our long distance phone bills by 30%!"

— Ellen Walker, President, Peacock Fashions

"I'll never forget the hurricane that downed our phone lines for one week. And I'll never

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forget how quickly Island Long Distance rerouted our calls to our New York branch. They

saved us during our busiest sales season!"

— Alan Fisher, Sales Director, Candy-By-Mail

I've enclosed a brochure that further details our state-of-the-art rerouting system and

delayed payment options. Please be advised the free month of long distance is available

only to new customers who sign with us by July 1. You must act quickly to take

advantage of this exceptional savings opportunity.

I'd like to meet with you to discuss how Island Long Distance can immediately begin

saving you up to 30% on your monthly long distance expense. I'll be contacting you next

week to schedule an appointment. I look forward to meeting with you soon.

Sincerely,

Samuel Johnson

President

P.S. Don't forget, you must sign with Island Long Distance by July 1, 200x for your free

month of long distance service!

2. Write a similar letter promoting a product or service at our choice.

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GRAMMAR

Conditionals

First, Second and Third Conditionals

There are three main types of conditionals sentences.

a. First conditional (or Type 1 conditional):

If I see Andrew at the meeting, I’ll give him your message.

Present Simple Future Simple

b. Second conditional (or Type 2 conditional):

If my parents were alive, they would be very proud of me now.

Past Simple would + Inf.

c. Third conditional (or Type 3 conditional):

If she had worked harder, she would have passed the exams.

Exercises

I. The following sentences are first, second or third conditional. Put the verbs in brackets

into the appropriate form:

1. We wanted to go out yesterday but the weather was terrible. If it (be) a nice day, we

(go) for a picnic.

2. Why don’t you explain everything to him? If you (not tell) him the truth, I’m sure you

(regret) it one day.

3. Jennifer was here not long ago. If you (come round) earlier, you (see) her.

4. Apparently, the ferry company are planning to close the port in this town. If that

(happen), the town (lose) a great deal of money.

5. I (help) you with it if I (have) more time, but I’m afraid I haven’t got any spare time at

all at the moment.

6. The government is expecting to win the next election, but if it (lose), the Prime

Minister (resign) from politics.

7. I am so glad that you took me to your friend’s party. If we (not go) there, I (never

meet) Adrian.

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8. It’s ridiculous that trains are so expensive. If fares (be) cheaper, I’m sure more people

(use) the train and leave their cars at home.

9. If she (get) that job she applied for, she (be) delighted. And I think she’s got a good

chance of getting it.

10. Fortunately the explosion took place at night when the streets were empty. It (be) a

disaster if it (happen) in the middle of the day.

11. The talks between the two leaders keep breaking down. If they (break down) again, it

is possible that there (be) a war between the two countries.

12. If Alison (know) anything about car mechanics, I’m sure she (help) us fix the car, but

I think she knows even less than we do.

13. They’ve been married for twenty years now but I don’t think she (marry) him if she

(know) what a selfish man he was.

14. Children spend too much time watching television and playing computer games. I’m

sure they (be) happier if they (spend) more time playing outside.

15. Jamie has everything he wants but he’s always moaning. I’m sure that if I (have) so

much money, I (not moan) all the time.

II. Put the verbs in brackets into the appropriate form:

1. Oh dear, I think we’re a bit late. If the concert’s already started, we (not be allowed) to

go in.

2. He wouldn’t be coming here if he (not want) to.

3. If you were planning to leave your husband, I (advise) you against it.

4. He could be earning lots of money now if he really (want) to, but I don’t think that’s

what he wants.

5. You can stay here tonight if you (not have) anywhere else to stay.

6. If I could have phoned you, I (tell) you what was happening.

7. If you (have) any problems, give me a ring.

8. If you (get) here at about 8 o’clock, I’ll be waiting for you

9. We could have got there in time if you (phone) us earlier.

10. If this should happen again, (come) and (tell) me about it immediately.

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11. You can’t expect kindness and support from your family if you (not give) the same to

them.

12. If she’s been working all day, she (be) very tired when she gets in.

13. If the management were to reinstate the strike leader, the strike (be called off).

14. If I (keep) working on this essay, I’ll have finished it by tonight.

15. If I could borrow some money, I (definitely come) on the holiday with you, but I

think it’s unlikely.

16. I might have been able to help you if you (explain) the problem to me.

17. If I could live wherever I wanted to, I think I (choose) to live on a Scottish island.

18. If they had been listening more carefully, they (might understand) what I was saying.

19. If I (be) a year older, I could join the army.

20. If I (get) a pay rise, I’m going to buy a new car.

Bibliography

1. Cullen, V. & Lehniger, D. (2000) B for Business. München: Max

Hueber Verlag

2. Dubicka, I. & O’Keeffe, M. (2006) Market Leader Advanced.

Edinburgh: Pearson Longman

3. Hollinger, A. (2002) Test Your Business English Vocabulary. Bucuresti:

Teora

4. Longman Business English Dictionary (2006), Pearson Longman

5. Vince, M. (2005) Advanced Language Practice. McMillan

6. Topala, V.(2000) Dicţionar economic englez-român. Bucureşti:

Editura Economică

7. Topala, V.& Patriciu, S. (1999) Dicţionar economic englez-român.

Bucureşti: Editura Economică

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MODULE II

FINANCE AND ACCOUNTING

Basic Concepts:

Accounting, accountant, assets, liabilities, auditing, balance sheet, invoice

General objectives:


b. help students develop and practice basic skills to enable them to operate


c. increase students’ knowledge of business terms

Specific objectives


accounting;

b. to improve vocabulary related to the field of finance and accounting

c. to revise grammar knowledge about indirect speech

Recommendations:






Expected results:





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BEFORE YOU READ

1. You decide to set up your own business. What are the main requirements for such a

venture?

2. What type of business organization are you going to set up? What may your options

be?

3. As a small business owner do you need to hire professional accounting services or

can you manage by yourself?

4. Is it enough to have a professional accountant or do you have to know something

about financial operations yourself?

5. In your opinion what particular skills do accountants need?

READING

Read the article about Company Formation. Choose the best sentences from the list

below (A-H) to fill each gap (1-5). There is one sentence that you do not need. There is

an example at the beginning (0-D)

A. The big advantage of forming a public limited company is that advertisements may be

paced in financial newspaper inviting the public to apply for shares: a prospectus, as this

advertisement is called, gives details of the company’s past trading record and estimates

of future earnings, together with other information required by law.

B. On the other hand, bookkeepers are responsible for obtaining the financial data that the

accounting system processes. An accounting system cannot operate without good,

accurate bookkeeping, but a bookkeeper can generally be trained in a year or two.

C. As a consequence, owners in a corporation have limited liability. With limited

liability, the owners are responsible for the debts of the business only to the extent of the

amount they have invested.

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D. Perhaps you want to become a part-owner of a corporation by buying shares on it. You

may want to invest in a partnership by becoming a sleeping partner or you may want to

look into franchise.

E. Most probably you will have to employ a skilled person to keep the exact records of

your business and possibly to give you some professional advice as well.

F. There are more sole proprietorships than any other types of business in the United

States economic system, but it is the giant corporation, especially the multinational one,

that has become to many the symbol of the private American enterprise system.

G. Their personal savings and possessions cannot be taken to pay the corporation’s debts.

H. Usually, all the partners have personal unlimited liability for debts to creditors. A

partner who invests money in a partnership but who does not run the business is called a

sleeping partner.

Company Formation

A person starting a new business must decide which type of organization is best. To some

extent the answer depends on the person, the type of business, the money needed, and the

kind of product or service to be provided. If you are going in a restaurant business, you

may decide on a sole proprietorship or a partnership. (……0……-D)

(……1……)

The money needed to start a business is called capital. If you do not have enough capital

you may borrow some from the bank in the form of a loan or an overdraft. Before the

bank will give a loan you must put up some security (such as your own house) in case

you cannot pay back the money.

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If the business owned by yourself (sole proprietor) runs into trouble, you are liable to pay

all the debts to your creditor, even if you have to sell your private possessions. A sole

proprietor is personally liable to his/her creditors.

Sometimes two or more people own and run a business. This is called a partnership.

People who invest money in a business are called investors or backers. The backers in a

partnership are all partners and owners. (……2……) Sometimes a sleeping partner can

have limited liability; his/her liability is limited to the amount of money he/she invests.

A company or a corporation is a business that is legally regarded as a separate entity, as

“something that exists independently”. That means that, as far as law is concerned, the

corporation has a separate existence from the people who own it. It has a life of its own.

(……3……) Even if the business fails, the owners cannot lose more than they have

invested. (……4……) Limited liability companies are economically very efficient.

Although only about 6 percent of all businesses in the United States are corporations they

earn about 79 percent of the country’s income.

Investment in a limited company is in the form of shares. Everyone who buys shares in

the company is a shareholder. The liability of each share is limited to the amount of one’s

investment. If you have shares in a company, you have stake or holding in the company.

If you hold 20% of the shares, you have a 20% stakes. If a shareholder has more than

50% holding, that person is a majority shareholder and has a majority or controlling

interest in the company.

A public limited company is normally the largest form of business unit in the private

sector; its shares are often quoted on the stock exchange. Most present day public

companies were once private, having at one stage gone public with the help of a bank.

(……5……)

One of the main reasons for small business failure is not managerial incompetence, but

inadequate financial planning. Therefore, in order to ensure your success you have to

learn something about the market you want to enter, the goods and services already

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existing and you have to understand some basic business and accounting principles.

(……6……) This means writing down credits and debits, and adding up columns and

figures – usually bookkeeper’s duty, but also recording cash flow and the value of assets

and liabilities, calculate losses and profits etc. – which is what an accountant does. You

will have to know and understand the meaning of some basic accounting jargon such as

cash receipts, journal, check register, double entry, FIFO, trial balance. You need all this,

as well as financial statements, budgets, cash-flow projections, both to measure the

success of your company and to help you make decisions about allocating your resources

for future projects.

(Adapted from Ready for Business)

COMPREHENSION QUESTIONS

1. What do you understand by sole proprietorship?

2. What do you understand by partnership?

3. Why are limited liability companies economically efficient?

4. What are the main reasons for small business failure?

ENGLISH IN USE

1. Questions 1-10

For each blank (1-10), think of the word that best fits in the context. Use only one word

in each space.

Accounting is at least the second oldest profession in the world. But while earlier

professionals rapidly got to grips ……(1) basic techniques and even introduced

refinements, it is remarkable that generations of tax collectors staggered ……(2) for

thousands of years ……(3) finding a satisfactory general method of keeping a ……(4) of

their affairs. This should serve ……(5) a warning. The problem is common sense but the

answer is not. It is highly contrived and ……(6) some respects still imperfect.

A business may be pictured as a box. The box has contents and ……(7) virtue of owning

the box, the owner has a claim ……(8) the value of the contents. As the business buys

24

and sells goods and services, so the value of the contents of the box will increase or ……

(9), depending on whether the business makes a ……(10) or a loss.

2. Questions 11-20

For each blank (11-20), decide which of the options A, B, C or D is best. Only one

answer is correct and there is always one correct answer.

When the independent auditor begins an audit ……(11), he ……(12) that the internal

control system of the ……(13) is appropriate and ……(14); that the generally accepted

accounting principles have been applied in all accounting processes ……(15) the

financial statements; that these generally accepted accounting principles utilized have

been applied ……(16) between the current and the prior periods; and that there is an

adequate amount of informative financial ……(17) in the financial statements and

footnotes. Evidence gathering and its evaluation enable the auditors to ……(18) or

confirm these assumptions. Thus the auditor’s work involves the analytical process of

gathering sufficient evidential matter on a test or ……(19) basis to enable a competent

professional to express an opinion as to whether a given set of financial statements meets

……(20) standards of financial reporting.

11. A assortment B task C assignment D responsibility

12. A pretends B assumes C assures D insures

13. A entertainment B estate C enterprise D firm

14. A effective B proficient C affective D productive

15. A undertaking B basing on C undergoing D underlying

16. A consequently B considerably C consistently D consecutively

17. A discontent B display C discrepancy D disclosure

18. A deny B release C reject D direct

19. A sampling B dating C stamping D modelling

20. A stated B founded C foundling D established

25

Questions 21-25

In each of the following groups of sentences (21-25), there four underlined parts, A, B, C

and D. For each sentence, find the underlined part, A, B, C or D, that makes the sentence

incorrect. There is always one possible answer.

21. Auditing is (A) an analytical process applied to everyday business situations. (B)

While it is closely related to existing business practices. Without (C) first hand

knowledge of the nature of these practices and their setting, the auditor would rely

exclusively (D) on available financial data.

22. This would jeopardize (A) the two audit efficiency and effectiveness. Therefore (B) a

getting-acquainted phase (which usually includes a visit to a client’s facilities and certain

analytical preliminary tests and inquiries) (C) initiates the typical audit process. Such

“getting-acquainted” preliminaries to the conduct of an audit are (D) standard procedures

today.

23. The auditor’s evaluation of the control systems (A) operating within the enterprise

has a direct influence on (B) the scope of the examination (C) he undergoes and the

nature of the tests he conducts. (D) However, we must remember that eventually both the

system and the data it produces are covered by the audit process.

24. Evidential matter supporting financial statements consists of the underlying

accounting data and all (A) collaborating information available to the auditor. The auditor

tests (B) underlying accounting data (C) by analysis and review, retracing some of the

procedural steps followed in the original accounting process and (D) reconciling the

events with the information reported.

25. The auditor’s evidential material is the result of tests, selected observations, and

statistical sampling where large (A) compilations of data are involved. The auditor must

always (B) balance up the natural desire for more evidential matter to support an opinion

against (C) the costliness and social usefulness of completely reconstructing the (D)

underlying data and processes that produced the financial statements.

26

3. Questions 26-30

Use the word given in CAPITALS at the end of each gapped line (26-30) to derive a

word that fits a space.

But what (26) …… is accounting? It is very difficult to find a pithy SPECIFIC

definition that is all-(27) …… but we can say that accounting is INCLUDE

concerned with the (28) …… of information in PROVIDE

(29) …… terms that will help in decisions concerning resource FINANCE

(30) ……, and the preparation of reports describing the effects ALLOCATE

of past decisions.

27

GRAMMARIndirect Speech

In direct speech we give the exact words of the speaker, while in indirect speech we

report using our own words what somebody has said.

We change the pronouns, names according to the meaning of the reported sentence.

-Requests and commands are reported with the infinitive.

“Open the door!” He ordered me to open the door.

“Don’t feed the cat! He told me not to feed the cat.

Reported Statements

When the main clause contains a verb in the present tense the verb of the subordinate

(object clause) remains in the same tense as it was in the Direct Speech.

“I broke the vase yesterday”. He tells me (that) he broke the vase yesterday.

When the verb in the main clause is in the past tense all the tenses in the subordinate clause move back into the past. (backshift)

Present Simple – Past Simple

Present Continuous - Past Continuous

Present Perfect - Past Perfect

Present Perfect Continuous - Past Perfect Continuous

Past Simple - Past Perfect

Past Continuous - Past Perfect Continuous

Past Perfect - Past Perfect

Past Perfect Continuous - Past Perfect Continuous

Future Simple - Future in the Past

Future Continuous - Future Continuous in the Past

“I don’t like soft rock.” – He said (that) he didn’t like soft rock.

“Peter is reading a book.”- He told me (that) Peter was reading a book.

“I have changed my mind.” – She explained (that) she had changed her mind.

-Modal verbs change too.

28

may - might

can - could

must - had to / was, were to

have to - had to

will - would

shall - should

“I may help you.” - He said (that) he might help me.

-Adverbs and pronouns change too.

here - there

now - then

today - that day

yesterday - the day before/the previous

day

last week - the week before/the previous

week

tomorrow - the next day/the following

day

next week - the next week/the following

week

this - that

these - those

“I am here.” - He said (that) he was there.

“It is raining now.” - He related (that) it was raining then.

“We should have gone on a trip, if the weather had been fine.” - My friend told me (that)

we should have gone on a trip if the weather had been fine.

Reported Questions

When we report questions the word order of the subordinate clause follows the topic of

the declarative sentence.

“Where do you live?” - He asks me where I live.

“When are you both leaving?” – He wanted to know when we both were leaving.

“Are you coming?” - He asked me if I was coming.

“Do you eat soup or not?” - He inquired whether I ate soup or not.

29

Exercises

I. Report the following using the past simple of the verb in brackets.

a) “Put your bags in the car!” he said to me. (tell)

b) “Don’t wait for me!” she said to him. (tell)

c) “Please don’t tell my parents!” she said to us. (ask)

d) “Can you look at my essay?” he said to her. (want)

e) “Could you move up a bit?” she said to them. (ask)

f) “Please don’t play my CDs without asking!” she said to him. (want)

II. Change the statements into reported speech.

a) “I am a policeman.” He said…

b) “We’re not staying in a hostel.” They said…

c) “The boys went home at ten o’clock.” They said…

d) “I’m a vegetarian and I don’t eat meat.” She said …

e) “I’ve lost my purse.” Nicola said…

f) “I can’t read the writing on the board.” The boy said…

g) “We’ll phone on Saturday.” They said…

h) “The eggs are delivered fresh in the morning.” She said…

i) “I didn’t work the early shift on Sunday.” Tom said…

III. Change the direct questions into reported questions.

a) “What’s your name?” She asked me…

b) “Did you see the film on TV last night?” He wanted to know …

c) “Where do you come from?” They asked us …

d) “When are you both leaving?” He wanted to know …

e) “Do you like Cornwall?” The reporter asked Jake …

f) “Did you go to London first?” She asked me …

g) “How old are you?” The reporter asked me …

h) “Can you teach me to surf?” Nicola asked him …

i) “Will you ever visit Cornwall again?” She asked Jake …

(Snapshot Pre-Intermediate)

30

Bibliography

1. Alexander, L.G. (1988) Longman English Grammar. Edinburgh: Pearson

Longman

2. Frendo, E. & Mahoney, S. (2005) English for Accounting. Berlin: Cornelsen



5. Topala, V. (2000) Dicţionar economic englez-român. Bucureşti: Editura

Economică

6. Topala, V.& Patriciu, S. (1999) Dicţionar economic englez-român. Bucureşti:

Editura Economică

31

MODULE III

IMPORT – EXPORT

Basic Concepts:

Import, export, trade, tariff, quota, autarky, dumping

Objectives:





Specific objectives


international trade;

b. to improve vocabulary related to the field of import and export

c. to revise grammar knowledge about the subjunctive mood

Recommendations:






Expected results:





32

BEFORE YOU READ

1. What is commerce?

2. What commercial services do you know?

3. Why is the distribution of goods as important as their production?

READING

What Commerce is about

As a human activity commerce is concerned with the study of trade - i.e. the moving of

the goods from the seller to the buyer – and the aids to trade, of the business units which

provide goods and services.

The goods are almost always produced far away from the place of consumption and their

way from the producer is long and very complicated. Therefore, it is the function of

commerce to offer a link between the stages of this process and the necessary instruments

to make it work.

The main functions performed by commerce are as follows:

Trade is the basic commercial activity. It is essentially the exchange of goods and

services between producers and consumers. Trade consists of home/ domestic trade

including wholesale trade and retail trade, and foreign/ overseas trade dealing with import

and export trade.

But commerce includes more other functions in addition to trade. Distribution involves

getting goods from the manufacturer to the consumer. Without sophisticated systems for

storing goods and selling them to the consumers, it would be impossible for firms to find

customers for their goods.

Banking and financial services offered by bank and other institutions assist commerce by

providing loans and other services which allow business to function and invest in future

production, and enable consumers to purchase goods and services.

Communication, in both written and electronic form, allows firms to order and sell their

goods efficiently and cheaply. No transaction is possible without communication.

33

Transport is concerned with the moving of goods by land, sea or air as well as the means

necessary to do it.

Insurance allows risks to be taken without fear of loss. It gives security and stability to

commerce as it enables the business people to survive losses by damage, shipwreck, fire,

burglary etc. Without adequate insurance many enterprises would be too risky to

undertake.

Advertising also pays an important part as it enables firms to let prospective customers

know their offer. It includes a wide range of forms from hand-distributed leaflets to

highly sophisticated television commercials.

(Ready for Business)


1. What is the usual definition of commerce?

2. How would you define trade?

3. What is meant by commercial services?

4. What ways of distribution can you enumerate?

5. Who is a wholesaler and a retailer?

6. What does import trade deal with?

7. What does export trade deal with?

VOCABULARY PRACTICE

1. Give synonyms for: commerce, commercial, foreign trade, home trade, to provide, to

enable, aid, to assist, prospective, customer, link, goods.

2. Match the following word with their corresponding definitions.

1. goods

2. services

3. profit

4. turnover

34

5. stock

6. producer goods/industrial goods

7. consumer goods

8. commodity

9. consumer outlet

10. trade

a) the moving of goods from the seller to the buyer

b) the amount of money that is made by a business, e.g. when it sells something for

more than it costs

c) articles of trade or commerce; wares, merchandise; products as opposed to services

d) the work provided for others as an occupation or a business

e) items such as food or clothing produced for the final consumer

f) items meant to be used in producing other products

g) the rate at which goods are sold and restocked

h) any specific market where consumers buy goods, such as a shop, a store, a merchant,

an agency, an open-air stall

i) an accumulated supply of goods; to keep a supply of goods

j) a) raw material such as grain, cocoa, coffee, wool, cotton, rubber

b) goods regarded in economics as the basis of production and exchange

3. Fill in the blank choosing from these words: cash-and-carry, chain, discount,

demand, middleman, overheads, security, stock-control, turnover, wholesaler

a) The amount of money taken (without any deduction) or the amount of goods sold is

the ……

b) Deciding how many items should be ordered when is a matter of ……

c) A number of shops belonging to one company is a ……

d) Shops possess safes for ……

e) A wholesaler offers his goods at a …… to enable the retailer to produce a profit.

f) A retailer buys his stock from a ……

35

g) The costs of running a business caused by lighting, heating, rent, wages etc. are its

……

h) The wholesaler is the …… between the manufacturer and the retailer.

i) The everyday name for a warehouse from which the retailer collects the goods

himself is ……

j) There are industries where goods have to be made several months in advance of the

main buying for seasonal ……

(Ready for Business)

SPEAKING

1. Give arguments pro/against free trade and protectionism.

Take into consideration as guiding lines the following questions:

Why do most economists oppose protectionism?

Which are the main protectionist methods?

Why do governments impose import restrictions (tariffs, quotas)?

36

GRAMMAR

Subjunctive and Unreal Past

1. Present Subjunctive:Present Subjunctive is used mainly in certain fixed phrases and in formal, impersonal

English. In more informal language we commonly use the Present Simple or “should”

We use the Present Subjunctive:

- in “that”- clauses , after report verbs, adjectives or nouns to express plans,

urgency, intentions or suggestions: The police insisted the car (should) be

moved immediately. The police insist the car is / be moved immediately.

Words often followed by a Present Subjunctive are:

Verbs: insist, suggest, request, order, recommend, propose, think.

Adjectives: advisable, essential, desirable, preferable.

Nouns: decision, insistence, demand, requirement, condition.

- after “if”: If he (should) be found / is found guilty, he’ll be jailed for ten years.

- after “whether”: Whether she (should) agree / agrees or not, we’re going to

have to go ahead.

- after “whatever”: Whatever his reasons be / are, they are insufficient to excuse

him.

- the Present Subjunctive is common in particular phrases: Far be it from me…;

So be it…; Be that as it may…; Suffice is to say…; Come what may…; Heaven

forbid!; Long live the Queen.

2. Past Subjunctive:

We use the Past Subjunctive (“were” in all persons) in formal English. Its meaning is

similar to Unreal Past:

If the minister were here, he would no doubt refute the allegations. (= formal)

- however, it’s more common to use “was” and “were” in their usual ways: I

wish he wasn’t such a bighead. (= informal)

37

- “were” is common only in the phrase “if I were you” and in the formal

conditional pattern “were” + subject + infinitive: I wouldn’t argue with her if I

were you. / Were the vote go against me, I’d resign.

3. Unreal Past:

We use Unreal Past or Past Subjunctive to discuss imaginary situations, to express

impossible wishes, and to make proposals and polite requests:

- after “if” when we think it is unlikely or impossible that the condition will be

fulfilled: If she were to eat / ate more often, she might get to like it.

- to replace an “if”-clause when we imagine past, present or future events being

different: Had he agreed, he’d have become the team captain. / Were he to

agree, he’d probably become the next coach.

- after “if only” to express regrets and frustration: If only he were / was more

adventurous. / If only I hadn’t drunk so much coffee! (= but I did)

- after “wish” when we are wishing for the virtually impossible. For more

reasonable wishes, we commonly use “would” or “could”: I wish I weren’t /

wasn’t having the injection tomorrow (= but I am) / I wish I’d listened to you.

(= but I didn’t). “Would” is used when the speaker wants somebody or

something else to change: I wish he would change his mind and marry Jane. /

I wish it would stop raining. The use with “would” is often used to describe an

annoying habit: I wish you wouldn’t make such a mess.

- after “would rather” and “ would sooner” to express preferences: Do you

mean you’d sooner I weren’t / wasn’t here? ; I’d rather you hadn’t spoken so

rudely to him.

- after “as if” and “as though” we use Present and Present Perfect forms to

suggest something is likely to be true. Unreal Past suggests it is unlikely or

untrue: The man speaks as if he was / had never heard of the place. He acts as

though he owns / owned the place.

- after imperative “suppose” and “imagine” (Present Tense is also possible):

Imagine he were to tell you / told you / tells you his most personal secrets.;

38

Suppose she were to have followed / had followed your advice. (= but she

didn’t)

- after “it’s time…”: It’s time I wasn’t here.; It’s time we left. / It’s time to

leave.

Exercises

I. Put each verb in brackets into an appropriate form:

a. I’d rather you (not watch) television while I’m reading.

b. It’s high time you (start) working seriously.

c. I wish I (spend) more time swimming last summer.

d. Helen is bossy. She acts as if she (own) the place.

e. I wish you (not keep) coming late to class.

f. Suppose a complete stranger (leave) you a lot of money in their will!

g. I wish I (go) to your party after all.

h. The government demanded that the ambassador (be) recalled

i. You are lucky going to Italy. I wish I (go) with you.

II. Correct the error(s) in each sentence:

a. I wish I bought that old house.

b. I’d rather you don’t eat all the bread.

c. It’s time I go.

d. I wish I own a motorbike.

e. I wish we are not leaving in the morning.

f. Sue would rather reading than watching television.

g. Come comes. I’ll be on your side.

h. I hope it would stop raining.

i. I’d prefer if you didn’t wait.

j. I wish I didn’t listen to you before.

39

Bibliography

1. Alexander, L.G. (1988) Longman English Grammar. Edinburgh: Pearson Longman

2. Cullen, V. & Lehniger, D. (2000) B for Business. München: Max Hueber Verlag



5 Topala, V. (2000) Dicţionar economic englez-român. Bucureşti: Editura Economică


Editura Economică

40

MODULE IV

STARTING A BUSINESS/THE BUSINESS PLAN

Basic Concepts:

Business, entrepreneurship, sole trader, partnership, private limited company, business

plan

Objectives:





Specific objectives

a. to provide information and explanations about types of companies

b. to improve vocabulary related to types of companies and the business plan

c. to acquire knowledge about how to draw up a business plan

Recommendations:

e. read the texts carefully and try to address the corresponding tasks

f. use the dictionary to improve your vocabulary

g. focus on content and on language use

h. improve your control of grammar and build your vocabulary by


Expected results:

e. improve students’ command of English

f. build up speaking and writing skills

g. practice writing for specific purposes

h. encourage the independent study and self-instruction

41

BEFORE READING

1. If you had a large sum of money, would you start your own business? Why? If yes,

describe it.

2. How would you describe an entrepreneur? What skills would he/ she require?

3. What should a business plan include? Make a list of the main aspects you would

consider in writing one.

READING

Looking at the Project

Are you up to it?

Before carrying out any detailed work on your proposed business you should consider:

-your personal ambitions and the role of the business venture in their fulfillment

-the aspirations of your colleagues and whether you form a well-balanced team

-the market of your product

-a realistic strategy to exploit that market

You and your management team

In the early stages of business, you and possibly a small number of colleagues will be

responsible for all aspects of the business, whether it be concluding a major sales contract

or ensuring an adequate supply of stationery.

Financiers such as bankers or venture capitalists will not support a business which has

inadequate management. Thus, your business should comprise a committed team with

complementary skills. In addition, a significant financial commitment from entrepreneurs

is required by most investors.

The market

The first thing to be considered is the market in which you are going to operate and it is

essential that you should have the four Ps of marketing fixed in your mind.

Your business strategy

You should set realistic objectives for your business and develop appropriate strategies to

achieve them. These objectives must be compatible with your personal ambitions and

42

values. Most successful strategies tend to be simple and concentrate on the business’s

strengths while building an adequate defence against its weaknesses.

Preparing a business plan

A business plan is primarily a management tool. It helps you to focus, in a logical and

organised way, on the future growth of your company. The business plan acts as a control

device against which management can measure achievement.

An introduction to the business

The two-page summary is the most important part of the document, it should be a concise

overview of the business and its products and services, including the background of the

business, that is, when it was started and the highlights of its progress, as well as an

outline of the key roles of the management personnel, previous financing arrangements

where applicable and the current ownership of the business.

The business’s objectives and related strategy

These targets would include the level of sales, profitability and how much you will take

out of the business by way of remuneration. You should describe how and where you

plan to sell and distribute your product or service.

You must explain why customers will buy from you and demonstrate to prospective

investors that you understand how your market should be segmented, and that you have

the ability to sell and deliver your product or service effectively to the correct targets.

The pricing strategy and policy for your product or service should be explained, and

compared to your competition. Show how your pricing approach will enable you to:

penetrate the market, maintain and increase market share in a competitive environment

and make a profit.

The principal activities, products and history

Before lending you money, a potential source of finance will want to know all about your

product or service and the history of your business.

43

The markets, customers and competition

The financier should be convinced that there is a demand in the market for the particular

goods or services of your business, that you know your products and the niche that it fills

in the market place and that you have confidence in the product and service.

You should also provide an analysis of existing and potential customers, the market size

and trend, and any competition.

Research and development

You should describe the stage of development of the product, costs incurred to date, and

the extent to which further finance is required to complete development, test and establish

the product in the market-place.

The management

You should explain how your business’s management team is organised and describe

each member’s primary role, demonstrating how the managers’ role complements each

other. Investors are looking for a team with a balance of marketing, financial

management and production skills, as well as experience of the product or service you are

developing.

Major resource requirements

You should go into greater detail on the finance required, the reasons for it and the time-

scale over which the funding is required.

Financial information

The business plan should include the following financial information: projected profit

and loss statement, cash flow forecasts, projected balance sheets, break-even analysis

(where the income from your sales is equal to your expenditure on purchases and other

overheads).

Principal risks

The business plan should go on to describe the inherent risks to which your business is

vulnerable and how you intend to monitor and control them. Your financial projections

should include the sensitivity analyses mentioned above, highlighting how your profit

44

and cash flow forecasts will be affected by for example: deviations from forecast sales,

any change in the cost of sales, any possible changes in the pricing policy, fluctuations in

interest rates etc.

The long-term plans of the business

This is an opportunity to set objectives for your business in the medium to long term,

based on your forecasts and projections in the short term.

Detailed information

Finally you will need to include in appendices all the detailed information on your

business plan for example: the detailed budgeting schedules, assumptions, details of

management, product literature etc.

Setting up the business

These are the various matters which will need consideration before your trading entity

can make the first product, sell the first item or supply the first service: bank accounts

must be opened, trading premises must be found, trading terms must be set, relevant

authorities must be informed, employees recruited (if necessary), applications for VAT

registration must be made, letterheads, invoices and stationery must be printed,

nameplates obtained, insurance cover must be obtained.

(Adapted from Getting Started)

SPEAKING

1. Discuss about the advantages and disadvantages of being a sole trader, about the

advantages and disadvantages of the partnership and about the differences between

partnership and joint stock companies.

2. Work in pairs and decide what sort of business you would like to start. Give details

concerning: the type of company, the product or service, the market, personnel,

marketing strategies, premises, machinery, etc.

WRITING

Draft the plan of your business.

45

Bibliography

1. Alexander, L.G. (1988) Longman English Grammar. Edinburgh: Pearson Longman

2. Cullen, V. & Lehniger, D. (2000) B for Business. München: Max Hueber Verlag



5 Topala, V. (2000) Dicţionar economic englez-român. Bucureşti: Editura Economică


Editura Economică

46

MODULE V

BANKS, STOCKS AND SHARES

Basic Concepts:

Banks, stocks, shares, credit, stock market, dealer

General objectives:





Specific objectives

a. to provide information and explanations about banks and the stock

exchange

b. to improve vocabulary related to banking

c. to revise grammar knowledge about relative clauses

Recommendations:

i. read the texts carefully and try to address the corresponding tasks

j. use the dictionary to improve your vocabulary

k. focus on content and on language use

l. improve your control of grammar and build your vocabulary by


Expected results:

i. improve students’ command of English

j. build up speaking and writing skills

k. practice writing for specific purposes

l. encourage the independent study and self-instruction

47

BEFORE YOU READ

1. Which are the most representative banks in Romania?

2. What kind of services do they offer?

3. What kind of banking facilities do you use?

4. What changes have there been in personal banking recently?

5. Has the introduction of electronic banking had a significant impact on banking

activities? If yes, why?

6. What further changes do you foresee in the future?

READING

BRD Romania – A Bank for the Future

BRD (The Romanian Bank for Development) is the second largest bank on the Romanian

market. Its history goes back to 1923 when the National Society for Industrial Credit was

founded. The objective of this public institution was to finance the Romanian industry.

According to the nationalization law from June 1947 it became The Credit Bank for

Investment. In 1957 The Credit Bank changed its name into The Bank for Investment and

it had at the time a monopoly position in the field of medium and long term financing in

the industrial sector.

The birth of BRD as a commercial bank occurred in 1990. The basis of its activity was

provided by the taking over of the assets and liabilities of The Bank for Investment, but it

also started opening agencies and subsidiaries all over the country which stimulated the

orientation towards attracting deposits from companies and individuals but also towards

granting investment credits for trading firms.

BRD was chosen by the Romanian government to become the first private commercial

bank. The acquisition of the majority stock by the group Societe Generale was finalized

48

in March 1999. Very soon, BRD became a leader on the market of new products such as

bank cards and consumer credits.

Miss S.N. has been working for BRD for 10 years in the credit department. She says:

“Practically, I’ve been growing up with the bank. At the beginning, when I got hired

there, the bank provided credits especially for small, medium-size and state-owned

companies. In time, retail banking has developed with credits for farmers, for building

houses and purchasing cars. Lately, we have also offered consumer credits, which means

that a borrower can get the credit for any personal needs and he is not required to attach

any justification documents. Our bank also has other forms of financing such as

factoring, forfeiting, leasing and overdraft.

My job at the bank is to analyze credit files and to decide whether the company is worth

crediting or not. Such a file contains documents about the company, a financial analysis

of the balance sheet and the last trial sheet, as well as a commercial analysis of the market

and competition. The bank may also ask for information about the assets of the company,

the evolution of its shares on the stock market or the situation of other loans that the

company might have to return meanwhile. If everything is O.K. then the company gets

the credit.

Besides credits for companies and individuals, BRD offers a large range of banking

services such as: opening accounts, making deposits and other saving instruments, giving

loans, transferring funds, external payment, electronic banking. BRD has a well-

developed ATM network all over the country and it issues both credit cards and debit

cards. The bank is also involved in trainings and seminars for students and graduates in

economics. “


1. What position does BRD hold on the Romanian market?

2. What kind of bank is BRD?

3. Who owns the majority stock of the bank?

49

4. What types of banking services does BRD offer?

5. What sorts of documents does a credit file contain?

6. What is a consumer credit?

7. If you had a large sum of money and wanted to deposit it in a bank, would you

choose BRD? Why yes/ not?

VOCABULARY PRACTICE

1. Match the following words with the corresponding definitions below:

a) corporate banking 1.type of loan security used for buildings and

land

b) retail banking 2. arrangement between a bank and a supplier by

which the bank buys the right to collect the debts

from approved customers

c) credit card 3. banking products and services for

companies

d) debit card 4. the purchase by the bank of medium and

short-term bills of exchange accepted by the

drawee in international transactions

e) mortgage 5. type of card that allows the owner to be

debited by the bank with a certain sum

according to his income

f) factoring 6. a method of using an asset without

necessarily purchasing it

g) forfeiting 7 banking products and services for individuals

h) leasing 8. type of card that allows the owner to

withdraw only as much money as he/she has in

the account

50

SPEAKING

1. Discuss the following with a partner:

Do people usually buy or rent their houses in our country?

Where do most people get the money to buy their houses?

When people borrow money for a house or flat, what is the usual repayment period? Are

interest rates fixed or variable?

BEFORE YOU READ

1. If you had a large sum of money, would invest it in shares? Why yes / not?

2. If yes, would you use the services of a broker?

3. How would you select him / her?

4. Do you think you can use the Internet on this purpose?

READING

The DIY Approach

Putting your money where your mouth is pretty well sums up direct investment in stocks

and shares. You have to pick the right stocks. You have to track down possible avenues

of research and vital information affecting these shares. You have to decide on timing –

whether this is for buying, holding or selling shares.

Thanks to the Internet, direct dealing in stocks and shares is now much easier for the

smaller investor. Check out the websites of brokerages offering an interactive internet

facility. This is particularly important for investors living in different time zones. Some

brokerage services include the scope for clients to tap into personal portfolio valuations,

access individual share prices and valuations and the latest market research.

Before rushing in to any deal ask yourself some essential questions. Is the source of

research reliable? What other areas of company research could substantiate what you

have already? Have you factored in everything that could affect the investment –

economic trends, market issues, currency risk and so on?

51

When it comes to actually dealing, investors need to hire a stockbroker. Essentially, there

are two levels of service. For those that are not happy with confronting some of the

questions listed in the first paragraph of this article, a stockbroker’s advisory service will

be of most interest. This option provides the chance to talk through any direct investment

before it is made.

Given that your decisions may well rest upon such advisory sessions, it is essential to

check the stockbroker’s credentials. Key questions will include: how long has the

broker’s company been in business? Who are the partners, and what is the company’s

own financial position? How long has the broker been with the company? What is the

quality of research available to the broker?

Of equal importance is the fact that the relationship between broker and client is an

intimate one. Do you feel comfortable with the broker? Does he talk sense? Does his

view of the world of investments dovetail with your own? Find out exactly what the fees

are per hour before signing up, and check out how much you’ll pay per transaction.

The other option is to hire a brokerage house on an execution-only basis. Broadly, this is

a service which carries out all the deals as instructed by the investor. And that is it - \no

research, no tips, no pre-dealing chat, and no advice. Shop around between stockbrokers

for this service as the extent of services and charges vary hugely.

When signing up with a broker, on whatever level of service, make sure he or she is

aware of your status and appropriate documentation is used so that tax is not deducted

from dividends.

And before putting pen to the dotted line, it is vital that you check which regulatory body

is supervising the brokerage house. The cautious investor would run a double check and

contact the regulatory authorities to check the company is on the authorised list.

52

Unfortunately, there is a large underworld of dodgy share sales people. How to spot such

fraudsters is not always easy. Beware of postal offers suggesting that you have been

especially selected for a chance to buy shares. Never ever respond to an invitation to part

with money that begins with, or sounds “too good to be true”. If it is, why would they be

sharing it with you? Be vigilant on the internet as this is a whole new playground for

fraudsters.

The UK’s Securities & Investment Board offers advice and information to enquirers on

the bona fides of share dealing companies and although it may be a bore to log off and

check, better that than a rip off.

(Hannah Beecham)


1. In which way does the internet make share-dealing transactions much

easier for the smaller investor?

2. What kind of questions should an investor ask himself before making

such a deal?

3. Why is it necessary to check first the stockbroker’s credentials?

4. Why is so important the relationship between the client and the broker?

5. What is a brokerage house?

6. How can one spot possible fraudsters in the field?

VOCABULARY PRACTICE

1. Find words in the text that mean the following:

a) to detect (paragraph 1)

b) to verify (paragraph 2)

c) capaciousness (paragraph 2)

d) to undertake (paragraph 2)

e) to consider (paragraph 3)

f) to coincide (paragraph 6)

g) questionable (paragraph 10)

h) cheating (paragraph 11)

53

GRAMMAR

Relative Clauses

“Broadly, this [the brokerage house] is a service which carries out all the deals as

instructed by the investor.” (1)

“BRD, which is the second largest bank on the Romanian market, became a commercial

bank in 1990.” (2)

The clauses in italics have the function of describing the noun before; they perform, as to

say, the function of an adjective. Such clauses are called Relative Clauses because they

“relate” to the noun by means of a relative pronoun, in this case which. Relative Clauses,

like adjectives, can describe persons, things and events.

In sentence (1) the Relative Clause “which carries out all the deals as instructed

by the investor” provides essential information about the noun and the main clause

doesn’t make proper sense without it. Such a relative clause is called Defining

(Restrictive) Relative clause.

In sentence (2) the relative clause “which is the second largest bank on the

Romanian market” provides additional information about the subject and thus it can be

omitted. This is why it written between commas. Such a Relative Clause is called: Non-

Defining (Non-Restrictive) Relative Clause.

Relative Clauses are introduced through relative pronouns such as: who (for

people), which (for things), that (for both), whom, whose, where, when, why

(accompanied or not by prepositions – for relative clauses of place, time and reason) etc.

“That” is never used in non-defining relative clauses.

Exercises

I. Rewrite the following as one sentence using relative clauses introduced by when,

where or why:

1. The people I work with are the reason. This is why I would never change my job.

2. This is the right moment. You have to sell your shares.

3. Wall Street is the place. Most stock transactions are made here.

54

4. That day of May changed my life forever. I found out then that I had inherited $ 1

million dollars.

5. 1998 is the year. I took a loan from the bank and I guaranteed with my house.

II. Choose the most suitable words underlined.

1. What was the name of the person that/ which bought your old car?

2. All the doors were open, that/ which seemed rather odd.

3. I will stay here till six, by that/which time Jane should have phoned.

4. Whatever/ Whichever you do, don’t press this red button.

5. This is the school which I used to go/ I used to go to.

6. Driving carelessly/ As he was driving carelessly, the police arrested David.

7. It seems odd that/ what you should be here on holiday too.

8. This is Sophia, who/ whom is taking over my job when I leave.

9. On the Sunday, that/ which was my birthday, we went out for a meal.

10. The success of a shared holiday depends on who/ whom you share it with.

III. Put one suitable word in each space.

1. Midway through the second half City scored their forth goal, at which point United

gave up completely.

2. There is one person to …… I owe more than I can say.

3. It was the kind of accident for …… nobody was really to blame.

4. …… leaves last should turn off the lights.

5. Mary was late yesterday, …… was unusual for her.

6. At 6.00, …… was an hour before the plane was due, thick fog descended.

7. I don’t know …… told you that, but they were wrong.

8. The first time I saw you was …… you answered the door.

9. Mrs Brown was the first owner …… dog won the first prizes in the same show.

10. I’ve just spoken to Sally, …… sends you her love.

55

IV. Rewrite each sentence so that it contains the word in capitals and so that the meaning

stays the same.

1. I like Brenda, she’s my kind of person. THAT

Brenda is the kind of person that I like.

2. The whole summer was sunny and warm, for a change. WHICH

……

3. Jean was the first person I asked for advice. WHOSE

……

4. Not a single house in the street had escaped undamaged. WHICH

……

5. Then I realised that I had left my wallet at home. WHEN

……

6. I don’t really approve of his proposal. WHAT

……

7. It is an event I would rather forget. WHICH

……

8. The police never caught the culprit. WHO

……

9. I have read all her books but one. WHICH

……

10. The finder of treasure is entitled to part of its value. WHOEVER

(Michael Vince: Advanced Language Practice)

56

Bibliography

1. Cullen, V. & Lehniger, D. (2000) B for Business. Munchen: Max

Hueber Verlag



3. Hollinger, A. (2002) Test Your Business English Vocabulary. Bucuresti:

Teora




Editura Economică



57

MODULE VI

INSURANCE

Basic Concepts:

Insurance, premium, broker, life assurance

General objectives:





Specific objectives

a. to provide information and explanations about insurance and types of

insurance

b. to improve vocabulary related to insurance

Recommendations:

m. read the texts carefully and try to address the corresponding tasks

n. use the dictionary to improve your vocabulary

o. focus on content and on language use

p. improve your control of grammar and build your vocabulary by


Expected results:

m. improve students’ command of English

n. build up speaking and writing skills

o. practice writing for specific purposes

p. encourage the independent study and self-instruction

58

BEFORE YOU READ

1. How many types of insurance do you know?

2. What does life insurance (assurance) mean?

3. Have you ever thought of making a life assurance for yourself/

READING

The Facts of Life

When it comes to life insurance, there is a question to answer first: does it make sense to

mix what are two different things – investment and insurance? If it is insurance you are

after, go for term insurance. It lasts for a specified term – for example, 10, 20 or 30 years.

If you die during the term, there is a pre-determined pay-out. If you survive, you get

nothing back. There is no investment element.

This insurance is primarily for people who have dependants – spouse, children or anyone

else such as ageing parents who will be worse off as a result of your death. The level of

cover you buy will depend on what existing life insurance you already have (for instance

through your job) and your dependant’s needs.

Think of your spouse. Would he or she need a lump sum, perhaps to pay off a mortgage

or an income? If the latter, insure for the lump sum which would produce the right level

of income on a reasonably assumed investment yield. Consider, too, whether you want a

policy that pays out before your death if you suffer a critical death. Be wary of an adviser

who fails to question you closely on all these matters.

If it is investment you really want, are there any tax advantages to investing through a

UK-based life policy as opposed to, say, unit trusts? Do get advice. Ask about supposed

tax advantages. How do they weigh against possible disadvantages? One is inflexibility

in terms of varying a regular premium, the timing of cashing in the investment and where

you can actually invest your money. Another is the extra costs of investing through life

59

insurance, including the cost of life insurance you may not really need. Grill your adviser

on all these matters.

Assess carefully the reality of other advantages. Life funds may offer cheap switching

between different funds. But in practice, are you likely to be an active investor

transferring your money from one market to another? Some policies allow you to

increase the life cover and decrease the amount invested as your circumstances change –

you get married, have children. Make sure an adviser has taken account of all your needs.

Find out about the pros and cons of buying a cluster of small policies rather than one big

policy. You may want the flexibility to cash in some policies early while keeping the

others going. What are the investment track records of the different life companies?

What funds are available for investing your money? Answer to all these questions before

getting your life insurance.

(Adapted from Anthony Balley)


1. What kind of life insurance is the author of the article talking about?

2. What elements do you have to take into account when choosing a type of life

insurance?

3. What risks are there if you don’t take all necessary precautions?

VOCABULARY PRACTICE

1. Match the following collocations with the corresponding definition:

1. accident insurance; 2. disablement insurance; 3. employer’s liability insurance; 4.

fire insurance; 5. holiday and travel insurance; 6. household insurance; 7. loss-of-

profit insurance; 8. motor insurance; 9. old-age insurance; 10.private health

insurance; 11. property insurance; 12. public liability insurance; 13. sickness

insurance; 14. third party insurance

a) covers risks during vacations, including loss of luggage, losses due to

delays while travelling, theft or loss of money, traveller’s cheques, credit

cards

60

b) covers the risks involved by compensation payable to employees for

suffering injury or disease during their work

c) covers the insured party’s risks of suffering loss in consequence of being

disabled

d) covers an owner’s risk of having to pay compensation to a member of the

public who has been injured or has suffered loss while on the premises of

his company

e) covers risks linked with the insured party’s liability to pay compensation

to other parties to whom he / she has caused some injury or loss

f) covers expenses of the injured while being sick and therefore unable to

earn a living

g) covers expenses of insured party due to accident

h) covers risks linked with the destruction of property and loss caused to the

insured due to flames, lightning

i) covers risks linked with structure of a house, sometimes with the things in

the house

j) covers the risk of an owner of losing profit because of circumstances

beyond his control

k) covers the risks of being unable to make a living on account of the

advanced age

l) covers costs of damage to and due to the insured party’s motor vehicle

m) covers the insured party’s expenses for private medical treatment

n) covers all risks linked with the insured party’s property

Bibliography


Hueber Verlag



3. Hollinger, A. (2002) Test Your Business English Vocabulary. Bucureşti:

Teora

61



Editura Economică



62

MODULE VII

CORPORATE ALLIANCES AND ACQUISITIONS

Basic Concepts:

Joint venture, merger, takeover

General objectives:





Specific objectives

a. to provide information and explanations about types of alliances and

acquisitions

b. to improve vocabulary related to mergers and acquisitions

c. to acquire knowledge about writing a report

Recommendations:

q. read the texts carefully and try to address the corresponding tasks

r. use the dictionary to improve your vocabulary

s. focus on content and on language use

t. improve your control of grammar and build your vocabulary by


Expected results:

q. improve students’ command of English

r. build up speaking and writing skills

s. practice writing for specific purposes

t. encourage the independent study and self-instruction

63

BEFORE YOU READ

1. In groups, discuss the advantages and disadvantages of the combinations

mentioned above for both companies involved in the process.

2. Do you know any particular case of merger, joint venture or takeover? If you do,

give all the details that you remember and try to discover the reasons which led to

that alliance or acquisition.

READING

All Fall Down

Angry words and bruised egos are all too common in business. Even so, they rarely cost

$21 billion, the value wiped from the shares in Glaxo Wellcome and SmithKline

Beecham (SB) when the two British drug firms cancelled their proposed merger on

February 23rd, 1998. The cost of the collapse is startling: it eclipses the total value of

many other recent headline-grabbing bids. That the merger will not go ahead is even

more surprising. When it was announced, the deal seemed the acme of the mergers that

have swept through America and Europe in the past three years. This poses an awkward

question for a bull market that has in part been fuelled by such deals. If one of the most

praised mergers collapses, what does it say about the rest?

The plan that Glaxo and SB announced a month ago seemed like a dream come true. Just

when SB had been considering throwing in its lot with dull old American Home

Products, the British firm suddenly discovered that the local boy had fancied it all along.

Analysts argued that Glaxo was a stronger match. They also praised the way in which the

two had apparently solved all most difficult questions, such as which firm’s shareholders

would own what percentage of the new company and who would be the boss. Now SB is

protesting that Glaxo tried to change the terms at the last minute. The larger firm did not

want to appoint only the chairman; it wanted Glaxo folk to dominate the board.

Glaxo and SB had seemed to typify recent deals in several ways. First, its very size of

well over 100 billion pounds was emblematic. Next, the Glaxo-SmithKline deal was

64

typical in that it linked firms from the same industry. They thought that in combination

their corporate headquarters would be leaner and their laboratories stronger.

Again, this deal was typical of mergers that unite firms at different points in the

production chain. Drug firms hate admitting that they do anything as unmedical as

“market” their medicines, but SB liked Glaxo partly because of its energetic sales force.

Glaxo-SmithKline is no less revealing in its undoing. For at first sight it seems to confirm

the view that mergers are inspired more by the egos of managers than a desire to create

value. Report after report has shown that mergers on average fail to benefit shareholders,

especially shareholders in companies that are buying rather than being bought. The

reasons vary. But the most common problem, according to economists who have studied

mergers in America and Britain, has been that the aims of owners and managers are

misaligned. Managers want to build empires; shareholders, numerous and unorganised,

have often been powerless to stop them.

Intriguingly, even the apparently disastrous collapse of Glaxo-SmithKline hints that

managers might be behaving more like shareholders. Although the deal was feted by

analysts, the record of drugs mergers is no better than that of mergers in general. The new

Glaxo-SmithKline depended for its success on the collaboration of scientists and

managers from both companies. At a dreadful cost to their reputations, SB’s managers

appear to have concluded that this is impossible. Moreover, they have done so today

rather than in a few years’ time, when the cost to shareholders might have been far

higher. The biggest mergers of the 1980s went wrong after they happened. The biggest

corporate marriage of the 1990s has fallen apart without even making it to the altar.

That’s progress.

(Shortened and adapted from The Economist)

65


1. Why did Glaxo Wellcome and SmithKline Beecham want to merge?

2. Why did their intention of merging fail?

3. What are the general causes for the failure of mergers in the opinion of analysts?

4. What is your personal opinion about it?

5. Why is the merger compared to a wedding in the last paragraph of the article?

VOCABULARY PRACTICE

1. Find words in the text that mean the following:

a) hurt, offended (paragraph 1)

b) amazing (paragraph 1)

c) climax, peak (paragraph 1)

d) offer (paragraph 1)

e) rising stock market (paragraph 1)

f) section (paragraph 2)

g) healthily thin (used figuratively) (paragraph 3)

h) to be celebrated, to be feasted (paragraph 6)

SKILLS FOCUS

WRITING

A Report

1. Read the following report written by a member of the Personnel Department for his

boss concerning a change to flexible working hours for office personnel and match the

following headlines with the parts of the report:

a) The “body” of the report

b) The date

c) The name of the person who writes the report

d) The introduction

e) The subject of the report

f) The receiver of the report

66

g) The conclusion of the report and personal recommendations

h) Addressing formula

i) Ending formula

FROM: Ann Johnson, Head of Personnel Assistant (1)

TO: George Wilson, Head of Personnel (2)

SUBJECT: Reaction to the change to flexible working hours (3)

DATE: May 14th, 2003 (4)

Mr. Wilson, (5)

Here you have my preliminary report on the initial reactions of the staff regarding

the possibility of implementing flexible working hours for office personnel. (6)

Some of the staff agreed that a flexible schedule would have a positive effect on

their activity, such as the secretaries, the Accounts Department, the sales reps, and most

of the members of the General Administration Office. There is, however, a large part of

the staff who voted against such a procedure. The people from Data Processing have to

work in team, so flexible hours would be a strong impediment. The staff from the canteen

and security complained about having to work longer hours. The strongest negative

reaction came from the Office Manager who emphasised the fact that flexible working

hours would certainly lead to cheating and abusing the system and would imply lack of

supervision and more expenses. (7)

My recommendation is that a three-month trial period should be implemented,

during which an information session will be held at least every two weeks in order to

better monitor productivity and progress. (8)

Ann Johnson (9)

The report resembles the memo a lot. It is also an internal informal company document,

but it may be longer than the memo and it usually contains more details. It is generally an

informative document, presenting the results of a research, a project or a meeting

depending on the situation. It should be clear, concise and coherent; this is why it is

advisable to write first a draft in which to state very clearly the subject and the purpose of

67

your report and to summarize your findings as well as your recommendations. Don’t

forget to use linking devices and to check the spelling, the punctuation and the style at the

end.

2. Imagine that you work in the Research and Development Department of the famous

McDonald’s company. Your boss, the Head of this department, asked you to make a

research project concerning a possible collaboration between your company and a

Romanian construction company in order to open a new McDonald’s subsidiary in your

native town. You have to take into account the area, the economical situation of the

construction company as well as the costs of the investment and the desirable profit.

Write a report to your boss presenting the results of your research.

Bibliography


Hueber Verlag



3. Hollinger, A. (2002) Test Your Business English Vocabulary. Bucureşti:

Teora



Editura Economică



68

GLOSSSARY

MODULE 1

advertise verb

advertisement noun

auction verb

be in the market for something

bid noun, verb

billboard noun

brand noun

buy noun, verb

cold calling noun

commercial noun

consumerism noun

customer noun

customize noun

discount noun

distributor noun

endorse verb

flier verb

freebie noun

label noun

leaflet noun

market noun

promote verb

public relations

publicity noun

shopping noun

wrap verb

MODULE 2

accountancy noun

accountant noun

account noun

69

accounts payable plural noun

accounts receivable plural noun

asset noun

audit verb, noun

auditor noun

balance noun

balance sheet noun

bookkeeper noun

budget noun

capital noun

cash flow, cashflow noun

certified public accountant noun

cost noun

creative accounting noun

credit noun

deficit noun

fee noun

finance verb

invoice noun

liabilities plural noun

purchasing power noun

subsidise verb

tax noun

turnover noun

MODULE 3

barter noun

benchmark noun

bill of lading noun

cargo noun

Incoterm noun

letter of credit noun

trade noun

70

voucher noun

MODULE 4

articles of association noun

business plan noun

partnership noun

private limited company noun

public limited company noun

sole trader noun

SWOT analysis

MODULE 5

amortisation noun

ATM noun

bank noun

bankruptcy noun

bond noun

borrow (RECEIVE) verb

broker noun

checkbook noun

collateral noun

credit card noun

debit card noun

deposit noun

dividend noun

electronic banking noun

equity noun

exchange rate noun

flotation noun

internet banking noun

leveraged buyout noun

mortgage noun

71

merchant bank noun

overdraft noun

stock exchange noun

venture capital noun

MODULE 6

actuary noun

annuity noun

assure verb

assurance noun

claim noun

cover note noun

health insurance noun

indemnity noun

insure verb

insurance noun

life insurance noun

policy noun

premium noun

third-party insurance

underwriter noun

72

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