Suport Curs IDFR an 2, Engleză, Zagan-Zelter Diana

UNIVERSITATEA BABE-BOLYAI

FACULTATEA DE TIINE ECONOMICE I GESTIUNEA AFACERILOR

DEPARTAMENTUL DE LIMBI MODERNE I COMUNICARE N AFACERI

CURS PRACTIC DE LIMBI MODERNE APLICATE N DOMENIUL AFACERILOR

LIMBA ENGLEZ ANUL II

Autori: Lect. dr. DIANA ZAGAN-ZELTER, Asist. dr. KOVCS RKA

Titular Curs: Lect. dr. DIANA ZAGAN-ZELTER

CLUJ-NAPOCA

2013

I. Informaii generale

Date de identificare a cursului

Date de contact ale titularului de curs:

Nume: DIANA ZAGAN ZELTER

Birou: Campus, 113, etaj I

Telefon: 418 655

Fax:

E-mail: [email protected]: prin e-mail, la cerere

Date de identificare curs i contact tutori:

Numele cursului: Curs practic de limbi moderne aplicate n domeniul afacerilor - limba englez

Codul cursului: EBL 3006, EBL 4006

Anul, Semestrul: anul II sem. 1,2

Tipul cursului: obligatoriu

Pagina web a cursului: -

Tutor: Diana Zagan-Zelter

Adresa e-mail: [email protected]

Condiionri i cunotine prealabile

nscrierea i frecventarea acestui curs presupune parcurgerea i promovarea programei de studiu din anul I de la FSEGA la disciplina limba englez sau un nivel de limba englez cel puin B2 conform Portofoliului lingvistic european.

Descrierea cursului

Cursul se adreseaz studenilor de anul II de la Facultatea de tiine Economice.

Organizarea temelor n cadrul cursuluiOrganizarea temelor din cadrul cursului precum i bibliografia care trebuie consultat sunt prezentate n detaliu n paginile introductive ale syllabus-ului.

Formatul i tipul activitilor implicate de curs

Studentul are libertatea de a-i gestiona singur, fr constrngeri, modalitatea i timpul de parcurgere a cursului. n cadrul cursului vor fi abordate urmtoarele tipuri de activiti: proiecte de grup, proiecte individuale, studiu individual, activiti tutoriale.

Materiale bibliografice obligatorii

Sursele bibliografice obligatorii pentru acest curs se regsesc n syllabus-ul aferent cursului. Dintre acestea, enumerm:

1. Cambridge Business English Dictionary (2011), Cambridge University Press

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

3. Dubicka, I. & OKeeffe, M. (2011) Market Leader Advanced (3rd edition). Edinburgh: Pearson Longman

4. Hollinger, A. (2009) Test Your Business English Vocabulary. Bucureti: Editura Universitar

5. Mascull, B. (2010), Business Vocabulary in Use Advanced. Cambridge University Press

Swan, M., Baker D. (2012), Grammar Scan. Diagnostic Tests for Practical English Usage, OUP

6. Calendar al cursuluiSptmna

tematermen

predare

1Marketingnoiembrie

2Finance and Accounting

3Import - Exportdecembrie

4Starting a Business/The Business Planmartie

5Bank, Stocks and Shares

6Insurance

7Corporate Alliances and Acquisitionsmai

Politica de evaluare i notare

tipurile de evaluare ce vor fi utilizate: test de testare a competenei lingvistice (listening, reading, vocabulary, English in use, writing)

criteriile de notare: evaluarea studenilor se va realiza conform rezultatelor primite la testul de testare a competenei lingvistice

studenii trebuie s pstreze toate sarcinile realizate pe parcursul cursului pn la primirea notei finale

forma sub care studenii vor primi feed-back la sarcinile realizate: prin e-mail, prin comunicare direct pentru cei ce solicit acest feed-back

Elemente de deontologie academic

Codul de deontologie academic reglementeaz urmtoarele:

Frauda se refer la:

a. copiat (utilizarea de materiale sau informaii neautorizate), falsificri, i orice alte activiti care pot afecta o corect evaluare a performanelor studenilor

b. ajutorul acordat altora n aceste privine

c. ncercarea de a se angaja n astfel de fapte

Studeni cu dizabiliti

Exist disponibilitatea de a lua legtura cu studenii afectai de dizabiliti motorii sau intelectuale pentru a identifica eventuale soluii n vederea oferirii de anse egale acestora. Calea de comunicare prin care putem fi contactai pentru acest gen de situaii: e-mail sau prin comunicare direct pentru cei ce solicit acest feed-back.

Strategii de studiu recomandate

Numrul de ore estimativ pentru parcurgerea cursului (suport de curs, activiti, discuii, sarcini etc.) este de 100.

CONTENTS

Module 1MARKETING6

Module 2 FINANCE AND ACCOUNTING19

Module 3IMPORT - EXPORT31

Module 4STARTING A BUSINESS/THE BUSINESS PLAN40

Module 5BANKS, STOCKS AND SHARES46

Module 6INSURANCE57

Module 7CORPORATE ALLIANCES AND ACQUISITIONS 62

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

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.

PromotionAnother one of the 4P's is 'promotion'. This includes all of the tools available to the marketer for 'marketing communication'. As with Neil H. Bordens 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 Selling2. Sales Promotion

3. Public Relations4. Direct Mail5. Trade Fairs and Exhibitions6. Advertising7. Sponsorship

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.

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

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

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 DONTs 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 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.

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:

ISLANDLONG DISTANCESeptember 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.

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 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-MailI'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.

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, Ill 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 dont you explain everything to him? If you (not tell) him the truth, Im 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 Im afraid I havent 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 friends party. If we (not go) there, I (never meet) Adrian.

8. Its ridiculous that trains are so expensive. If fares (be) cheaper, Im 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 shes 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, Im sure she (help) us fix the car, but I think she knows even less than we do.

13. Theyve been married for twenty years now but I dont 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. Im sure they (be) happier if they (spend) more time playing outside.

15. Jamie has everything he wants but hes always moaning. Im 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 were a bit late. If the concerts already started, we (not be allowed) to go in.

2. He wouldnt 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 dont think thats 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 oclock, Ill 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.

11. You cant expect kindness and support from your family if you (not give) the same to them.

12. If shes 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, Ill have finished it by tonight.

15. If I could borrow some money, I (definitely come) on the holiday with you, but I think its 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, Im going to buy a new car.

Bibliography






6. Swan, M., Baker D. (2012), Grammar Scan. Diagnostic Tests for Practical English Usage, OUPMODULE II

FINANCE AND ACCOUNTING

Basic Concepts:

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

General objectives:

a. improve students command of English

b. help students develop and practice basic skills to enable them to operate effectively in real life situations

c. increase students knowledge of business terms

Specific objectives

a. to provide information and explanations about notions related to accounting;

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

c. to revise grammar knowledge about indirect speech

Recommendations:





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

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 companys 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.

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 corporations 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)FThe 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.

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. (2H) 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. (3G) 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 countrys 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 ones 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 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 bookkeepers 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 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 auditors 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

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 clients 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 auditors 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 auditors 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.

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.

GRAMMAR

Indirect 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.

Dont 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 dont like soft rock. He said (that) he didnt 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.

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.

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) Dont wait for me! she said to him. (tell)

c) Please dont 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 dont 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) Were not staying in a hostel. They said

c) The boys went home at ten oclock. They said

d) Im a vegetarian and I dont eat meat. She said

e) Ive lost my purse. Nicola said

f) I cant read the writing on the board. The boy said

g) Well phone on Saturday. They said

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

i) I didnt work the early shift on Sunday. Tom said

III. Change the direct questions into reported questions.

a) Whats 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)

Bibliography






6. Swan, M., Baker D. (2012), Grammar Scan. Diagnostic Tests for Practical English Usage, OUPMODULE III

IMPORT EXPORT

Basic Concepts:

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

Objectives:




Specific objectives

a. to provide information and explanations about notions related to 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:b. improve students command of English

c. build up speaking and writing skills

d. practice writing for specific purposes

e. encourage the independent study and self-instruction

BEFORE YOU READ1. 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.

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

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

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)?

GRAMMAR

Subjunctive and Unreal Past

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, hell be jailed for ten years.

after whether: Whether she (should) agree / agrees or not, were 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.

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, its more common to use was and were in their usual ways: I wish he wasnt such a bighead. (= informal)

were is common only in the phrase if I were you and in the formal conditional pattern were + subject + infinitive: I wouldnt argue with her if I were you. / Were the vote go against me, Id resign.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, hed have become the team captain. / Were he to agree, hed probably become the next coach.

after if only to express regrets and frustration: If only he were / was more adventurous. / If only I hadnt 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 werent / wasnt having the injection tomorrow (= but I am) / I wish Id listened to you. (= but I didnt). 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 wouldnt make such a mess. after would rather and would sooner to express preferences: Do you mean youd sooner I werent / wasnt here? ; Id rather you hadnt 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.; Suppose she were to have followed / had followed your advice. (= but she didnt)

after its time: Its time I wasnt here.; Its time we left. / Its time to leave.Exercises

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

a. Id rather you (not watch) television while Im reading.

b. Its 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) recalledi. 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. Id rather you dont eat all the bread.c. Its 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. Ill be on your side.h. I hope it would stop raining.i. Id prefer if you didnt wait.j. I wish I didnt listen to you before.Bibliography






6. Swan, M., Baker D. (2012), Grammar Scan. Diagnostic Tests for Practical English Usage, OUPMODULE 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 practicing different types of exercises

Expected results:f. improve students command of English

g. build up speaking and writing skills

h. practice writing for specific purposes

i. encourage the independent study and self-instruction

BEFORE READING1. 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.

READINGLooking 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 values. Most successful strategies tend to be simple and concentrate on the businesss 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 businessThe 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 businesss objectives and related strategyThese 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 historyBefore lending you money, a potential source of finance will want to know all about your product or service and the history of your business.

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 businesss management team is organised and describe each members 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 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)

SPEAKING1. 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.

Bibliography






6. Swan, M., Baker D. (2012), Grammar Scan. Diagnostic Tests for Practical English Usage, OUPMODULE 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 practicing different types of exercises

Expected results:j. improve students command of English

k. build up speaking and writing skills

l. practice writing for specific purposes

m. encourage the independent study and self-instruction

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 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, Ive 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.

COMPREHENSION QUESTIONS 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?

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 PRACTICE1. 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

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?

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 stockbrokers 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 stockbrokers credentials. Key questions will include: how long has the brokers company been in business? Who are the partners, and what is the companys 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 youll 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.

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 UKs 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 stockbrokers 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)

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 doesnt 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.

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, dont 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 dont 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. Ive just spoken to Sally, sends you her love.

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

1. I like Brenda, shes 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 dont 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)Bibliography






6. Swan, M., Baker D. (2012), Grammar Scan. Diagnostic Tests for Practical English Usage, OUPMODULE 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 practicing different types of exercises

Expected results:n. improve students command of English

o. build up speaking and writing skills

p. practice writing for specific purposes

q. encourage the independent study and self-instruction

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 dependants 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 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 dont take all necessary precautions?

VOCABULARY PRACTICE

1. Match the following collocations with the corresponding definition:

1. accident insurance; 2. disablement insurance; 3. employers 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, travellers cheques, credit cards

b) covers the risks involved by compensation payable to employees for suffering injury or disease during their work

c) covers the insured partys risks of suffering loss in consequence of being disabled

d) covers an owners 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 partys 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 partys motor vehicle

m) covers the insured partys expenses for private medical treatment

n) covers all risks linked with the insured partys property

Bibliography






6. Swan, M., Baker D. (2012), Grammar Scan. Diagnostic Tests for Practical English Usage, OUPMODULE 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 practicing different types of exercises

Expected results:r. improve students command of English

s. build up speaking and writing skills

t. practice writing for specific purposes

u. encourage the independent study and self-instruction

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 firms 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 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

Documents

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