Stocks and shares
Individuals and groups of people doing business as a partnership, have unlimited liability for debt, unless they form a limited company. If the business does badly and cannot pay its debts, any creditor can have it declared bankrupt. The unsuccessful business people may have to sell nearly all their possessions in order to pay their debts. This is why most people doing business form limited companies. A limited company is a legal entity separate from its owners, and is only liable for the amount of capital that has been invested in it. If a limited company goes bankrupt, it is wound up and its assets are liquidated (i.e. sold) to pay the debts. If the assets don’t cover the liabilities or the debts, they remain unpaid. The creditors simply do not get all their money back.
Most companies begin as private limited companies. Their owners
have to put up the capital themselves, or borrow from friends or a bank,
perhaps a bank specializing in venture capital. The founders have to write a
Memorandum of Association (GB) or a Certificate of Incorporation (US), which
states the company’s name, its purpose, its registered office or premises, and
the amount of authorized share capital. They also write Articles of Association
(GB) or Bylaws (US), which set out the duties of directors and the rights of
shareholders (GB) or stockholders (
A successful, growing company can
apply to a stock exchange to become a public
limited company (GB) or a listed company (
The act of issuing shares (GB) or stocks (US) for the first time is known as floating a company (making a flotation). Companies generally use an investment bank to underwrite the issue i.e. to guarantee to purchase all the securities at an agreed price on a certain day, if they cannot be sold to the public.
Companies wishing to raise more money for expansion can sometimes issue new shares, which are normally offered first to the existing shareholders at less than their market price. This is known as a rights issue. Companies sometimes also choose to capitalize part of their profit, i.e. turn it into capital, by issuing new shares to shareholders instead of paying dividends. This is known as a bonus issue.
Buying a share gives its holder part of the ownership of a company. Shares generally entitle their owner to vote at a company’s Annual General Meeting (GB) or Annual Meeting of Stockholders (US), and to receive a proportion of distributed profits in the form of a dividend – or to receive part of the company’s residual value if it goes into liquidation. Shareholders can sell their shares on the secondary market at any time, but the market price of a share – the price quoted at any given time on the stock exchange, which reflects (more or less) how well or badly the company is doing – may differ radically from its nominal value.
Find words in the text which mean the following
1 having a responsibility or an obligation to do something, e.g. to pay a debt
2 a person or organization to whom money is owed (for goods or services rendered, or as repayment of a loan)
3 to be insolvent: unable to pay debts
4 everything of value owned by a business that can be used to produce goods, pay liabilities, and so on
5 to sell all the possessions of a bankrupt business
6 money that a company will have to pay to someone else (bills, taxes, debts, interest and mortgage payments, etc.)
7 to provide money for a company or other project
8 money invested in a possibly risky new business
9 the people who begin a new company
10 the place in which a company does business: an office, shop, workshop, factory, warehouse, and so on
11 to guarantee to buy an entire new share issue, if no one else wants it
12 a proportion of the annual profits of a limited company, paid to shareholders
Americans often talk about corporations rather than companies and about an initial public offering rather than a flotation.
Another name for stocks and shares is equities, because all the stocks or shares of a company – or at least all those of a particular category – have equal value.
Two terms for nominal value are face value and par value.
names for a bonus issue are a scrip issue (short for ‘subscription
certificate’) and a capitalization issue,
and in the
Match up the following words and definitions.
Blue chip Defensive stock Growth stock
Insider share-dealing Institutional investors Mutual fund
Market-maker Portfolio Stockbroker
a company that spreads investors’ capital over a variety of securities
an investor’s selection of securities
a person who can advise investors and buy and sell shares for them
a stock in a large company or corporation that is considered to be a secure investment –
a stock – in an industry not much affected by cyclical trends – that offers a good return but only a limited chance of rise or decline in price
a wholesaler in stocks and shares who deals with brokers
financial organizations such as pension funds and insurance companies which own most of the shares of all leading companies (over 60%, and rising)
the use of information not known to the public to make a profit out of buying or selling shares
Companies finance most of their activities by way of internally generated cash flows. If they need more money they can either sell shares or borrow, usually by issuing bonds. More and more companies now issue their own bonds rather than borrow from banks, because this is often cheaper: the market may be a better judge of the firm’s creditworthiness than a bank, i.e. it may lend money at a lower interest rate. This is evidently not a good thing for the banks, which now have to lend large amounts of money to borrowers that are much less secure than blue chip companies.
Bond-issuing companies are rated by private rating companies such as Moody’s and Standard & Poors, and given an ‘investment grade’ according to their financial situation and performance, Aaa being the best, and C the worst, i.e. nearly bankrupt. Obviously, the higher the rating, the lower the interest rate at which a company can borrow.
Most bonds are bearer certificates, so after being issued (on the primary market), they can be traded on the secondary bond market until they mature. Bonds are therefore liquid, although of course their price on the secondary market fluctuates according to the changes in interest rates. Consequently, the majority of bonds on the secondary market are traded either above or below par. A bond’s yield at any particular time is thus its coupon (the amount of interest it pays) expressed as a percentage of its price on the secondary market.
For companies, the advantage of debt financing over equity financing is that bond interest is tax deductible. In other words, a company deducts its interest payments from its profits before paying tax, whereas dividends are paid out of already-taxed profits. Apart from this ‘tax shield’, it is generally considered to be a sign of good health and anticipated higher future profits if a company borrows. On the other hand, increasing debt increases financial risk: bond interest has to be paid, even in a year without any profits from which to deduct it, and the principal has to be repaid when the debt matures, whereas companies are not obliged to pay dividends or repay share capital. Thus companies have a debt-equity ratio that is determined by balancing tax savings against the risk of being declared bankrupt by creditors.
Governments, of course, unlike
companies, do not have the option of issuing equities. Consequently they issue
bonds when public spending exceeds receipts from income tax, VAT, and so on.
Long-term government bonds are known as gilt-edged securities, or simply gilts,
Rating company – firma de rating
Debt financing – finantarea debitului
Equity financing – finantarea actiunilor
Investment grade – gradul riscului de investitie
Debt-equity ratio – ratia debit-actiuni
Public spending – chletuieli publice
Receipts – incasari, venituri
Treasury bonds – certificate de trezorerie pe termen lung
Treasury bills – certificate de trezorerie pe termen scurt
Match up the words or phrases on the left with the corresponding ones on the right.
1 investors A the amount of a loan
2 issuing bonds B borrowing money
3 principal C date at which the money will be returned
4 maturity D fall in interest rates
5 pension funds E keep their bonds till maturity
6 buy-and-hold investors F default
7 non-payment G profits on the sale assets
8 price appreciation H providers of funds
9 price depreciation I retirement money
10 capital gains J rise in interest rates
Match up the expressions on the left with the definitions on the right.
1 equity financing A a security whose owner is not
registered with the issuer
2 debt financing B easily sold (turned into cash)
3 bearer certificate C the rate of interest paid by a fixed interest security
4 liquid D the rate of income an investor receives taking into account a security’s current price
5 par E issuing bonds
6 coupon F issuing shares
7 yield G nominal or face value (100%)
37. Futures, options and swaps
Match up the following words and definitions.
A contracts giving the right, but not the obligation, to buy or sell a security, a currency, or a commodity at a fixed price during a certain period of time
B contracts to buy or sell fixed quantities of commodity, currency, or financial asset at a future date, at a price fixed at the time of making the contract
C a general name for all financial instruments whose price depends on the movement of another price
D buying securities or other assets in the hope of making a capital gain by selling them at a higher price (or selling them in the hope of buying them back at a lower price)
E making contracts to buy or sell a commodity or financial asset at a pre-arranged price in the future as a protection or ‘insurance’ against price changes
F raw materials or primary products (metals, cereals, coffee, etc.) that are traded on special markets
Select ten or eleven of the following words that you would expect to find in an introductory text about futures and options.
Assets beer bush call commodities contracts
Copper currencies discount store foodstuffs hedge
Liabilities plastic phone raw materials shout
Spot market supermarket tea
Now read the text, and see if you find the words you selected.
Every weekday, enormous amounts of commodities, currencies and financial securities are traded for immediate delivery at their current price on spot markets. Yet there are also futures markets on which contracts can be made to buy and sell commodities, currencies, and various financial assets, at a future date (e.g. three, six or nine months adead), but with the price fixed at the time of the deal. Standardized deals for fixed quantities and time periods (e.g. 25 tons of copper to be delivered next June 30) are called futures; individual, non-standard, ‘over-the’counter’ deals between two parties (e.g. 1.7 billion yen to be exchanged for dollars on September 15, at a rate set today) are called forward contracts.
Futures, options and other derivatives exist in order that companies and individuals may attempt to diminish the effects of, or profit from, future changes in commodity and asset prices, exchange rates, interest rates, and so on. For example, the prices of foodstuffs, such as wheat, maize, coca, coffee, tea and orange juice are frequently affected by droughts, floods and other extreme weather conditions. Consequently many producers and buyers of raw matrials want to hedge, in order to guarantee next season’s prices. When commodity prices are expected to rise, future prices are obviously higher than (at a premium on) spot prices; when they are expected to fall they are at a discount on spot prices.
In recent years, especially since financial deregulation, exchange rates and interest rates have also fluctuated widly. Many businesses, therefore, want to buy or sell currencies at a guaranteed future price. Speculators, anticipating currency appreciations or depreciations, or interest rate movements, are also active in currency futures markets, such as the London International Financial Futures Exchange (LIFFE, pronounced ‘life’).
As well as currencies and commodities, there is now a huge futures market in stocks and shares. One can buy options giving the right – but not the obligation – to buy and sell securities at a fixed price in the future. A call option gives the right to buy securities (or a currency, or a commodity) at a certain price during a certain period of time. A put option gives the right to sell an asset at a certain price during a certain period of time. These options allow organizations to hedge their equity investments.
For example, if you think a share worth 100 will rise, you can buy a call option giving the right to buy at 100, hoping to sell this option, or to buy and resell the share at a profit. Alternatively, you can write a put option giving someone else the right to sell the shares at 100: if the market price remains above 100, no one will exercise the option, so you earn the premium.
On the contrary, if you expect the value of a share that you own to fall below its current price of 100, you can buy a put option at 100 (or higher): if the price falls, you can still sell your shares at this price. Alternatively, you could write a call option giving someone else the right to buy the share at 100: if the market price of the underlying security remains below the option’s exercise price or strike price, no-one will take up the option, and you earn the premium.
Options are merely one type of derivative instrument, based on another underlying price. Many companies nowadays also arrange currency swaps and interest rate swaps with other companies or financial institutions. For example, a French company that can borrow francs at a preferential rate, but which also needs yen, can arrange a swap with a Japanese company in the opposite position. Such currency swaps, designed to achieve interest rate savings, are of course open to the risk of exchange rate fluctuations. A company with a lot of fixed interest debt might choose to exchange some of it for another company’s floating rate loans. Whether they save or lose money will depend on the movement of interest rates.
Call option – optiune de achizitie
Put option – optiune de vanzare
Swap – schimb
Complete the following sentences
1 The difference between futures and forward contracts is ….
2 Producers and buyers often choose to hedge because ….
3 Speculators can make money on currency futures if …
4 If you believe that a share price will rise, possible option strategies include …
5 On the contrary, if you think a share price will fall, possible option strategies include …
The risk with currency and interest rate swaps is that …
Find words in the text that are in an obvious sense the opposite of the terms below.
Appreciate call discount drought floating
Hedging spot market strike price
Acceptance – acceptare (trata)
Acceptor – tras, acceptor
Allow credit – a acorda un credit
All-time high – un record de crestere a cursului
All-time low – un record de scadere a cursului
Amount – o suma, un total
Amount to – a se ridica la, a ajunge la
Arrears – datorii, restante, arierate
Articles of Association – statutul societatii
Assess, to estimate – a evalua, a estima
Assessment, an estimate – o evaluare, o estimare
Assets – activul
Auction – o vanzare prin licitatie
Austerity – austeritate
Back – a sustine financiar
Bad cheque, dud check – cec fara acoperire
Bad debt – o creanta neplatita
Balance of account –un sold de cont
Balance of Payments – balanta de plati
Balance of Trade – balanta comerciala
Bank clerks – functionari bancari
Bank (A.E. discount) rate – rata scontului Bancii centrale
Bank account – cont bancar
Bank tellers – casieri (la banca)
Bank wickets – ghisee ale bancii
Banking regulation – reglementari bancare
Banknotes (A.E. bills) – bancnote
Bargain – a negocia
Barrier – o bariera
Barter / counter-trade – troc
Be in the black – a fi creditor
Be in the red – a fi descoperit/ in deficit
Bear – un speculator de bursa (care mizeaza pe scaderea cursului)
Bear an interest – a produce o dobanda
Bearer – un purtator
Bearer cheque – cec la purtator
Benefit – un avantaj
Bill, a check (US) – o nota de plata
Bills – facturi, note de plata, efecte bancare
Bills of Exchange (B.E.), drafts – cambii, polite, trate
Bite – a avea efect
Blank cheque – cec in alb
Blue chips – actiuni ale marilor companii
Board of directors – consiliul de administratie
Bond – o obligatiune
Bonus issue, shares / stock dividends – actiuni gratuite, dividente nominale
Boom – un avant (perioada de succes)
Boost – a relansa
Borrow – a lua cu imprumut
Borrower – cel care ia cu imprumut
Branch – sucursala
Brand – o marca comerciala
Break even – a echilibra conturile
Bring down – a micsora, a diminua
Brisk – activ, animat
Buck – bancnota sau bancnote de un dolar (A.E. familiara)
Building society – o banca populara de economii pentru cumparare de locuinte
Bull – un speculator de bursa (care mizeaza pe cresterea cursului)
Bullion – lingou din metal pretios
Buoyant – sustinut, bine orientat
Buy forward – a cumpara la termen
Bylaw – prevedere regulamentara
Cap taxes – a fixa un plafon pentru impozite
Cash a cheque – a incasa un cec
Cash point – un aparat distribuitor de bancnote
Cashier – casier in unitati economice
Ceiling – plafon, nivel maxim
Central Bank – banca centrala
Change francs into pounds – a schimba francii in lire
Charge – taxa, pret, cheltuieli
Cheque-book – carnet de cecuri
Cheque-book (A.E. checkbook) – carnet de cecuri
Chief executive officer / managing director – director general
Clearance sale – o vanzare la solduri
Clearing-house – camera de compensare/decontare/oficiu cliring
Close – inchidere
Close down – a avea un curs scazut la inchidere
Coin money – a bate moneda
Coins – monede, bani metalici
Collapse – a se prabusi
Collateral – garantie, gaj / garant, girant, gir
Collect – a incasa, a percepe (impozite)
Commercial / retail bank – banca comerciale / banca de depozit
Commodity – o marfa (de larg consum)
Compete with sb. – a concura cu cineva, a face concurenta cuiva
Competitive – competitiv
Composite rate – rata compusa
Contribution – cotizatie, contributie
Convergence criteria – criterii de convergenta
Cost accounting – contabilitate analitica / analiza costurilor
Cost effective- rentabil, care isi merita pretul
Cost of living – costul vietii
Council tax – impozite locale
Counter – ghiseu
Counterfeit – a contraface, a falsifica, a face bancnote false
Credit a sum to an account – a vira o suma intr-un cont
Credit an account – a credita un cont
Credit rating – evaluare a solvabilitatii clientelei
Credit squeeze – restrangere a creditului
Credit standing – situatie financiara, gradul de solvabilitate
Creditor – creditor
Crisis – o criza
Cross out – a bara
Crumble – a se prabusi
Curb – a frana, a stapani
Currencies – devize
Current / checking account – cont curent
Current account deficit – un deficit al balantei de plati curente
Current account; account current – cont curent
Custom-made – facut pe/la comanda
Customs – vama
Dabble on the Stock Exchange – a juca la Bursa
Deal – o tranzactie
Dealer – un dealer
Debit a sum from an account – a debita o suma dintr-un cont
Debit an account by a sum – a debita un cont dintr-o suma
Debt – o datorie
Debtor – un debitor
Decline – a decadea, o scadere
Deeds – acte, contracte
Default – a nu onora
Default on a payment – a nu onora o plata
Defaulter – rau platnic
Defer – a amana, a intarzia
Deficit – un deficit
Deflation – deflatie
Delay – a amana, a intarzia
Demand – cerere
Deposit – a depune
Deposit / time / notice account – cont de depunere
Deposit account – cont de depunere la scadenta, de depozit
Deposit bank – banca de depuneri
Depositor – depunator
Depreciation – amortizare, depreciere
Deregulation – dereglementare
Devaluate – a devaloriza
Devalue – a devaloriza
Dip – a scadea, a descreste
Direct debit – debitare directa
Directive – o directiva
Discontinue – a inceta (de a mai face ceva), a intrerupe
Discount – a sconta (o polita)
Discount a draft – a sconta o trata
Discount bank – banca de scont
Dividends – dividente
Downturn, a downswing – un regres
Draw on an account – a scoate dintr-un cont, a retrage dintr-un cont
Draw on sight – a trage la vedere
Draw on someone – a trage (o trata) asupra cuiva
Drawee – tras
Drawer – tragator
Drop, to fall, to come down – a scadea, a se micsora
Dull – inactiv
Duty –o taxa
Earn an interest – a produce o dobanda
Earnings – castiguri, venituri (salariale)
Ease – a se relaxa
Encash – a incasa un cec (la banca)
Endorse – a andosa
Endorse a cheque – a andosa un cec
Endorsement – andosare
Enquiry, inquiry – cerere de informatii
Equities – actiuni ordinare
Erasure – stergere, stersatura
Exceed – a depasi
Exchange – schimb
Exchange broker – agent de schimb
Exchange bureau – birou de schimb
Exchange rate – rata de schimb
Executive – administrator
Expenses – cheltuieli, plati
Face value – valoarea nominala
Fall back – a se replia
Fall due – a sosi la scadenta
Fall, drop in prices – o scadere a preturilor
Federal Reserve Bank (the Fed) (A.E.) – banca federala de rezerve, banca centrala a S.U.A.
Fee – un onorariu
Figure – o cifra
File for bankruptcy, to file under chapter 11 (US) – a-si depune bilantul, a cere falimentul
Fill in a form – a completa un formular
Finance, to fund – a finanta, a acorda fonduri
Financial backing (support) – sustinere financiara, sprijin financiar
Firm – ferm
Flat rate – rata uniforma
Float (a currency) – a face/ a lasa sa oscileze o moneda straina
Float a company – a lansa o societate
Flourish – a prospera
Foot the bill – a achita nota de plata
Forecast, an outlook – o previziune
Foreign / overseas trade – comert exterior
Foreign resident – rezident strain
Forge – a falsifica, a contraface (bancnote, documente)
Forgery – contrafacere, falsificare, falsuri (bancnote, documente)
Free trade – liber schimb
Fringe benefit – beneficiu suplimentar (in afara salariului)
Futures market – piata tranzactiilor la termen
Gain – a castiga / un castig, o plus-valoare
Gilt-edged securities – valori/titluri fara risc (obligatiuni de stat)
Giro – cecuri postale
Giro account – cont-cecuri postal
Give notice – a da un preaviz
Globalise – a se extinde la scara mondiala
Go belly up (US) – a da faliment
Go into administration – a fi supus unei proceduri de lichidare juridicara
Go into liquidation – a intra in lichidare
Go on a welfare – a se inscrie la asistenta sociala
Go public – a intra la Bursa, a fi acceptat la Bursa
Go up, to rise – a creste, a urca, a se mari
Goods, wares – produse, marfuri
Grant – a acorda, a aloca / o alocatie, un ajutor financiar
Grant a loan – a acorda un imprumut
Grant credit – a acorda un credit
Greenbacks – dolari (americanism familiar)
Gross Domestic Product – Produsul Intern Brut
Gross National Product – Produsul National Brut
Hard cash – bani gheata
Hedge – a se acoperi (risc)
Hike prices (US) – a mari, a creste preturi
Holder – titular (carte de credit)
Holder of an account, account holder – detinator al unui cont
Home savings plan – plan de economii pt. (constructia de) locuinte
Home trade – comert intern
Hot money – bani fierbinti (capital atras din strainatate de dobanzi ridicate sau de un climat politic sigur)
In cash – in numerar
In custody – in custodie
In real terms – in bani constanti
In the red, overdrawn – epuizat, descoperit (un cont)
Incentive – un stimulent
Income statement (A.E.)/operating statement (B.E.) – cont de exploatare, cont de profituri si pierderi
Income tax – impozit pe venit
Index – a indexa
Index-linked – indexat
Inflation – inflatie
Inflationary – inflationist
Inheritance tax – drepturi de succesiune
Interest – dobanda
International Monetary Fund (I.M.F.) – Fondul Monetar International (F.M.I.)
Investment (B.E. merchant) bank – banca de investitii
Investments – investitii
Invoice – factura
Issue – a emite
Jack up – a mari preturi
Jewels – bijuterii
Joint account – cont comun
Junk bonds – obligatiuni fara valoare
Kickstart the economy – a impulsiona economia
Leave a deposit – a lasa o garantie
Legal tender – oferta legala, curs legal
Lend – a da cu imprumut
Lending rate – rata de imprumut
Level off – a se relaxa
Leverage – capacitate de influenta / raportul dintre creante si capital / cresterea rentabilitatii capitalului unei societati ca urmare a contractarii de datorii
Leveraged buyout – rascumpararea unei societati datorita cresterii rentabilitatii capitalului ca urmare a contractarii de datorii
Levy – a percepe, a impune (o taxa, un impozit) / o taxa
Liabilities – pasivul
Liquidation – lichidare
Listed company – societate pe actiuni
Loan shark – un camatar
Loans – imprumuturi
Look up, to pick up – a se redresa
Loss – o pierdere
Loss-making, unprofitable – nerentabil
Lump sum settlement – plata forfetara, plata globala
Make – o marca (de fabrica), fabricatie
Maturity (of a loan) – scadenta unui imprumut
Mercantile Exchange – Bursa de marfuri
Merchant bank – o banca comerciala
Merchant bank / Investment bank – banca comerciala / de investitii
Mint – institut britanic de emisiune monetara/ Monetaria Statului
Monetary – monetar
Monetary supply – masa monetara
Money order – mandat postal
Mortgage – ipoteca
Mutual Fund – societate de investitii cu capital variabil
Note – bancnota divizionara
Offset – a contrabalansa, a compensa
Open up – a avea un curs ridicat la deschidere
Opt-out clause – o clauza exceptionala
Order – o comanda
Outlet – un debuseu, un punct de desfacere
neachitat, intarziat (
Overdraft – descoperire in cont, sold debitor
Overdraw (an account) – a descoperi, a epuiza un cont
Overdue – expirat, intarziat, scadent
Overheads, fixed costs – cheltuieli fixe
Overheat – a supraincalzi
Pace – beneficiar
Paper money – bani de hartie, bancnote
Pawn – a gaja, a amaneta
Pawnbroker – camatar
Pay (in) cash – a plati in numerar, a plati cu bani gheata
Pay as you earn (PAYE) – plata prin prelevare direct de la sursa
Pay back, to repay – a rambursa
Pay into an account – a varsa intr-un cont
Payee – beneficiar
Pay-in slip – foaie de depunere sau de varsamant
Payment by installments – plata in rate
Payment in cash – plata in numerar
Payment-in – virament (intr-un cont)
Pick up the tab – a achita nota de plata
Plough back profits – a reinvesti profiturile
Plummet – a merge foarte prost, a avea greutati mari
Policy – o politica, o strategie
Portfolio – un portofoliu (de valori)
Postpone –a intarzia, a amana
Premise – locatie
Price index – un indice de pret
Prime rate (A.E.) – rata de baza
Private limited company – societate cu raspundere limitata
Privatise – a privatiza
Production, output – productie
Profit margin – o marja de profit
Promissory note – bilet de ordin, cambie, titlu de gaj, obligatiune
Pundit – un expert
Purchase – o achizitie, o cumparare
Qualified majority – majoritatea calificata
Quid (B.E.) – bancnota sau bancnote de o lira (familiar)
Quota – o cota-parte
Quote – a cota
Quoted or listed company – societate cotata la bursa
Rally – a se reface, a se intari
Recover – a se restabili, a-si reveni, a se reface
Recurring – care se repeta, periodic, recurent
Recurring expenses – cheltuieli recurente
Reduce, to cut back – a reduce
Refund – a rambursa
Registrar of companies – registrul de comert
Regulation – regulament, reglementare
Remittance – varsamant
Rents – chirii
Repay, to pay back – a rambursa
Residual value – valoare reziduala
Restrict – a impune o restrictie
Retail price index – indicele preturilor cu amanuntul
Revalue – a reevalua
Revenue – venituri
Rights issue – emisiuni rezervate actionarilor
Rise in prices – o crestere a preturilor
Running costs – cheltuieli variabile
Safe – casa de bani
Savings – economii, bani economisiti
Savings account – cont de economii
Savings Bank – casa de economii
Security – titlu de valoare
Sell at a premium – a vinde sub pretul pietei
Sell short – a vinde la termen, a subevalua
Setback – o cadere, o involutie, un regres
Settle – a echilibra un cont, a plati
Settlement – plata
Share – a imparti, a participa impreuna
Share – o actiune
Shoot up – a creste vertiginos
Short term – pe termen scurt
Shortage – o penurie
Shortfall – o lipsa, o insuficienta
Sight withdrawal – retragere la vedere
Single market – o piata unica
Slacken, to slow down – a incetini, a frana
Slash – a reduce radical
Slide – a scadea
Slow payer – rau platnic
Slump – a scadea masiv
Small amount, small sum – suma mica
Solvency – solvabilitate
Spending – cheltuieli
Spin-off – o schimbare radicala
Spot market – piata tranzactiilor cu plata pe loc
Spread / Margin – marja, margine
Squeeze – a presa, a constrange
Stagflation – stagflatie, (stagnare economica + inflatie)
Stagnate – a stagna
Stake – participare, interest
Standard of living – standardul de viata
Statement of account – extras de cont bancar
Steady – stabil
Stimulate – a sitmula
Stock Exchange – Bursa de Valori
Stock market – o piata bursiera
Stock, securities – valori, titluri
Stockbroker – un agent de schimb/bursa
Stub, counter-foil – cotor, talon, matca (de chitanta, cec etc.)
Subscribe – a subscrie
Subscription – abonament
Subside –a subventiona
Sue – a face un proces, a chema in instanta
Sum – o suma
Supply / provide sb. With sth. – oferta, a furniza ceva cuiva
Survey – un studiu, o ancheta
Swap – swap (operatie de schimb intre doua devize prevazuta pentru o anumita perioada)
Target – o tinta
Tariff – un tarif vamal
Tax – a impune taxe, a impozita
Tax allowance – scutire de taxe
Tax break – o reducere/ scadere de impozit
Tax collector – un perceptor
Tax haven – un paradis fiscal
Tax relief – degrevare de impozit
Taxpayer – un contribuabil
Telegraphic money order – mandat telegrafic
Thrive, to prosper – a prospera
Tighten one’s belt – a strange cureaua
Trade – a face comert
Trade bank – banca comerciala
Trade gap – un deficit comercial
Transfer – a transfera, a vira
Traveller’s cheques (A.E. traveler’s checks) – cecuri de calatorie
Treasury – tezaurul public
Trend – o tendinta
Trust – a avea incredere, a incredinta
Turnover – volumul afacerilor
Underwrite – garantarea subscrierii unei emisiuni
Upturn, an upswing – o redresare, o ascensiune
Valuables – obiecte de valoare
Valuables / deeds – acte, valori
Value added tax – taxa pe valoarea adaugata
Venture capital – capital de risc
Veto sth. – a-si exprima dreptul de veto fata de ceva
Volatile – nervos, febril
Wind up – a lichida
Withdraw – a retrage
Withdrawal – prevelare, retragere
Write out (to make out) a cheque – a trage, a intocmi un cec
Yield – a aduce, a produce venit
Yield – randament
Yield an interest – a produce o dobanda
Practice 1 – a model version of the dialogue
Visitor: Hello, my name’s Henrik van der Linden from Amtel. I have an appointment with Sandra Bates.
Receptionist: Oh, yes, Mr Van der Linden. Welcome to Datalink. Ms Bates will be along in a few minutes. She’s just finishing a meeting. Can I get you something to drink?
Visitor: No thanks, I’m fine. Er, but I wonder if I could use the phone?
Receptionist: Yes, of course. And anything else… if you need to send a fax or anything…
Visitor: No, it’s okay, just the phone.
Receptionist: Right, well you can use this one.
Visitor: Thanks. (dials) Hallo, (fade)
(a few minutes later)
Visitor: (fade in) Au revoir. (click) Thank you very much.
Receptionist: Not at all. If there’s anything else you need, please ask. Anything…
Visitor: Yes, I was wondering how far is it to the station?
Receptionist: It’s about two miles – ten minutes by taxi. Shall I book one?
Visitor: Er, yes, thank you. that would be good. Can we say four o’clock?
Receptionist: Right, I’ll do that. Oh, I think Ms Bates is free now. Shall I take you to her office?
Visitor: With pleasure. Thanks.
Exercise 1 – First words
Visitor: a, d, f, g, i, k // the person receiving the visitor: b, c, e, h, j, l, m
Exercise 2 – Ending the small talk
a) B; b) A; c) B; d) B; e) A
1 literal a. direct and clear
2 understatement b. less strong way of talking
3 deduce b. work out
4 vague a. unclear
5 devious b. dishonest
6 pleasantries c. polite remarks
Exercise 1 – Making a call
(in order): speak to; through; office; can; hello; bad; speak; speaking; put; through; hold; office; moment; number; ring; back; on; message; rang; call
Practice 1 – a model answer
Reception: Good morning, Gorliz and Zimmerman.
Lara Camden: Hello, my name’s Lara Camden from Bulmer Cables Ltd. Please could I speak to Mr. Conrad Bird?
Reception: I’m sorry, but Mr. Bird is not in at the moment.
Lara Camden: I see. Er… when do you think I could contact him?
Reception: Well, at the moment he’s away. Would you like to leave a message?
perhaps you would ask Mr. Bird to call me? My name’s
Reception: Right, that’s Lara Canden on 0181 299 462. Okay?
Reception: Oh yes, sorry! I’ve got that now.
Lara Camden: Thank you. I look forward to hearing from Mr. Bird.
Reception: It’s a pleasure. Thanks for calling. Bye for now.
Practice 2 – a model example of the conversation
Intership: Intership, good morning.
Computech: Hello, my name’s Alex Hall from Computech
Intership: Sorry, did you say Alex Hall from Computech Arcos?
Computech: Yes, that’s right.
Intership: Okay, how can I help you, Mr. Hall?
Computech: Well, I’d like an appointment with Mr. Dionis.
Intership: Can you tell me what’s about?
Computech: Certainly. I’d like to discuss the
transporting of goods from
Intership: I see. When would be a good time for you to come here?
Computech: May I suggest next week?
Intership: I’m sorry, next week’s not possible – Mr. Dionis is away next week. How about the beginning of the next month?
Computech: Yes, that would be okay. Could we say Monday 3rd of May?
Intership: Er, unfortunately Mr. Dionis is busy all day on that Monday. He could make it Tuesday 4th.
Computech: That’s fine. Shall we say ten a.m.?
Intership: Yes, that’s a good time for us. Erm… can I ask you to confirm by fax? And would you like us to book you a hotel?
Computech: I’ll fax – and thank you but no, the hotel booking isn’t necessary. I think that’s everything, for now –
Intership: Right, many thanks, we look forward to your fax to confirm the meeting. Goodbye, Mr. Hall.
Computech: Bye for now.
A model of a fax message of confirmation:
Lorong One Toa Payoh
Telephone: ++65 350 574
Fax to: Mr. Dionis (Intership S.A.)
Fax Number: 30 1 657677 Page 1 of 1
From: Date: 19 April 19—
Re. Meeting with Mr. Dionis
With reference to our phone conversation of this morning I write to confirm my appointment with Mr. Dionis next month.
Transport of goods from
Date of Meeting: Tuesday 4th May at 10 a.m.
I also confirm that I will make my own hotel arrangements.
I look forward to meeting Mr. Dionis next month.
Exercise 2 – Changing arrangements
See language input.
Tao Loon: Hello, Sales Office here.
Luisa: Hello, my name’s Luisa Dominguez. I’m
Tao Loon: How can I help you, Ms Dominguez?
Luisa: The problem concerns a printer order. Let me give you the order number – it’s HF5618. It’s – it’s for twenty printers. The problem is that only seventeen have arrived.
Tao Loon: Really? I’m surprised to hear that.
Luisa: Well, I’m afraid it’s the second time we have received and incomplete delivery and nobody told us there would only be seventeen.
Tao Loon: Well, no, I think it was probably an administration mistake.
Luisa: Yes, I’m sure. Now, we need the other three printers urgently. Delays are causing us problem with our customers. They are rather unhappy.
Tao Loon: Okay, er, at the moment we have some stock problems.
Luisa: Well, can you give me a delivery date – it’s very urgent.
Tao Loon: Right – let me see. We can promise you a despatch next Monday.
Luisa: No, I’m sorry, that’s not good enough. We need despatch now.
Tao Loon: I’m sorry – that’s not possible. But we’ll despatch on Monday, I assure you.
Luisa: Well, will you please send a fax to confirm that.
Tao Loon: Of course. And I do apologize for the problem.
Luisa: Right, goodbye for now.
Tao Loon: Goodbye.
a. True; b. True; c. False; d. False; e. True; f. False
a. Probably very formal.
b. High expectations in terms of technical support, a fair amount of detail and clearly a lot of expertise.
c. High level of specialist knowledge – audience are experts.
d. Depends on congress organization – probably less then an hour.
e. Depends on congress organization – probably questions follow.
f. Use of visual supports with key information, plus later publication of Congress Proceedings
Purchasing and Product Managers of a Taiwanese company
a. Probably semi-formal.
b. High expectations in terms of technical support, a fair amount of detail and clearly a lot of expertise.
c. High level of specialist knowledge – at least the Product Manager will be very expert, the Purchasing Manager perhaps less so.
d. Depends on objectives and on complexity of equipment. Could be a very long presentation, even a whole day or a one hour presentation might be enough.
e. Probably interruption are encouraged to make everything clear as the presenter goes along.
f. Use of visual support, photographs, diagrams, or the actual machine itself. Follow-up documentation will also be available.
Internal meeting / administrative staff
b. Reasonably high expectations in terms of speaker’s knowledge.
c. The audience will probably have good background knowledge but have come to learn about a new system.
d. Probably short – thought it might be half a day!
e. Interruptions encouraged.
f. Probably illustrations, possibly handouts.
A staff meeting / charity event
b. Low expectations.
c. The audience have come to hear ideas.
d. Probably short – five or ten minutes?
e. Interruptions encouraged.
f. Keep to clear simple structure making one or two important points.
Subject / title of talk. 1
Introduction to oneself, job title, etc. 4
Reference to questions and / or discussion. 2
Reference to the programme for the day. 4
Reference to how long you are going to speak for. 3
Reference to the visual aids you plan to use. 5
The scope of your talk: what is and is not included. 4
An outline of the structure of your talk. 1
A summary of the conclusions. 4
Note: There are no hard rules about what should be included. Most suggestions here are open to discussion and
variation, depending on circumstances.
Visuals make information more memorable
Help the speaker
Show information which is not easily expressed in words
Cause audience to employ another sense to receive information
Bring variety and therefore increase audience’s attention
Clarify complex information
Presenters sometimes place the major emphasis on visual aids and relegate themselves to the minor role of narrator or technician
Visuals must support what the speaker says
It is not enough just to read what the visual says
Find out about the audience.
Find out what they need to know.
Plan what you’re going to say.
Say it clearly and concisely.
Introduce information using lists.
Give a link between parts of the presentation.
Provide a logical sequencing of information.
Use careful repetition of key information.
Don’t give too much information or too many fact.
a. The main body of the presentation contains the details of what was introduced in the introduction.
b. See figure included in the text.
Practice 4 – a model of presentation
Good morning, everyone. I’d like to talk about the advertising mix for the new Cheri range of beauty products. We are planing two categories of advertising, above-the-line and below-the-line. I’ll talk first about above-the-line advertising. There are three kinds: these are television commercials, secondly, newspapers – newspaper advertising. The third kind is magazines. There are two basic types we aim at: youth magazines and those aimed specifically at the women’s market. Now, below-the-line advertising: there are three methods here also: the first is in-store advertising, then there’s on-pack promotions and finally targeted mailing. So, in-store advertising: what does it mean? Basically, displays in the shop, merchandising, and that sort of thing. The second below-the-line advertising is on-pack promotions – there are many kinds, most obviously things like coupons, competitions, joint promotions and free samples. The last kind of below-the-line advertising is targeted mailing, using a mailing list. That completes the overview of what we can do to launch the product, so…
a. No response from the audience.
A truly successful and interesting talk will avoid the problem.
The speaker can give an instruction to the audience – especially in sales presentations.
To have question prepared to ask the audience, or identify someone whom you know will have something to say.
Difficulties may arise because:
1.questions / discussion is relatively unstructured
2. the speaker has less control
3. speaker has to switch into listen and answer mode
4. it may be difficult to hear, to understand, to answer or to distinguish between an opinion and a question.
Practice 5 – model answers
So, that concludes what I want to say, so now I’d like to ask you for your comments, opening up discussion, or perhaps you have a question or two?
Er, in fact what I said was this process has been going on for a very long time. I’m sorry if I was not clear on this point.
I wonder if anyone can suggest why this has happened or if anzone has any comments on it
Yes, you’re right, but can I suggest one or two other factors? One is the increasing number of take-overs of smaller companies…
So are you saying that in
Yes, I agree, but the situation is changing.
Sorry, I don’t quite follow you. Can you say that again … put it another way …?
Exercise 1 – The new product
Good morning ladies and gentlemen; we haven’t all met before so I’d better introduce myself. I’m Luis Lopez from the development department of Citrus Incorporated… I should say before we start that I hope you’ll excuse my English. I’m a little out of practice…
Anyway, I’m going to be talking this morning about a new product which we are planning to launch in two months’ time; it’s called KOOL-OUT, that’s K-O-O-L dash O-U-T, and it’s a lemon-flavoured drink…
Well, I’ll start with the background to the product launch; and then move on to a description of the product itself, I’m going to list some of the main selling points that we should emphasize in the advertising and sales campaign. I think if you don’t mind, we’ll leave questions to the end…
Now firstly, as you all know, we had a gap in our soft-drink product range for the last two years; we have been manufacturing mixed-fruit drinks and orange drinks for the last ten years, but we stopped producing lemonade two years ago; I think we all agreed that there was room on the market for a completely new lemon-flavoured drink … Secondly, the market research indicated that more and more consumers are using soft drinks as mixers with alcohol, so in other words, the market itself has expanded.
This brings me to my next point which is that we have rather new customer-profile in mind; I must emphasize that this product is aimed at the young-professional, high-income, market and not the traditional consumer of old-fashioned lemonade. At this point we must consider the importance of packaging and design, and if you look at the video in a moment, you’ll see that we have completely re-vamped the container itself as well as the label and slogan…
Now to digress for just a moment, the more sophisticated packaging means a high unit cost, and this may be a problem in the selling area, but we’ll have a chance to discuss that aspect later… so … to go back to my earlier point, this is a totally new concept as far as Citrus Incorporated are concerned; as you see we are using both the new-size glass bottle and the miniature metal cans.
Finally, let’s look at the major attractions of the product. In spite of the higher price it will compete well with existing brands; the design is more modern than any of the current rival products, and incidentally the flavour is more realistic and natural… it’s low calorie, too.
O.K., so just before closing, I’d like to summarize my main points again… We have KOOL-OUT, a new design concept, aimed at a relatively new age and income group; it’s designed to be consumed on its own, as a soft drink, or to be used as a mixer in alcohol-based drinks and cocktails. It comes in both bottle and can and this will mean a slightly higher price than we are used to; but the improved flavour and the package design should give us a real advantage in today’s market… well, that’s all I have today for the moment, thank you for listening, now if there are any questions, I’ll be happy to answer them…
Exercise 2 – The product presentation
See the model presentation and use the words in italics.
Exercise 3 – Can I interrupt here?
A 2; b 3; c 4; d 5; e 1
Exercise 4 – Anticipating questions
(suggestions) a. I can hear you say… b. Now you may well ask, what does he mean by… c. An obvious problem is the cost of the accessories. d. You will have noticed that… e. Now you may well ask…
a. Welcome, everybody. Thank you for coming.
b. We are here today to talk about … (and to decide …; to look at)
c. We have an agenda with three points. (You’ve all seen the agenda. I’d like to ask if anyone has any comments on it.)
d. I think Mr. Kano is ready to tell us something about … (Can I ask … to open with his remarks.)
e. If you don’t mind, can we let Mr. Kano finish? (Sorry, …, I can’t allow us to consider that question just yet…)
f. Thank you for that …
g. Now, can I ask Ms Perez de Sanchez to tell us her views…
h. Er, can we try to keep to the topic – I think we have gone away from it a little.
i. I’d like to sum up the main points. (So let me summarize that. You say that …)
j. Would anyone like to say anything else on this? (Does anyone have anything to add to that?)
k. I think we ought to move on to the next topic on the agenda.
l. So, before the next meeting, I’ll send out a report on this one, Mr Kano will prepare (…) and will then fix a new date, some time next month.
m. Thank you. that’s everything. That’s it for today.
A model of Agenda
Marketing Group: Year-end meeting
Apologizes for absence
Minutes of previous meeting
Chair’s opening address
Review of marketing performance in the current year
Marketing plans for next year
Any other business
Date of next meeting
The chair’s opening statement: a model
Okay I think we should begin. Thanks for coming – and as you know – this is … we are here for our annual meeting. As you know from the agenda there are four main issues to discuss. The first to review is the personnel changes. Secondly, we’ll look at the marketing performances in the current year. Then we’ll discuss about new products. And finally, we’ll examine the marketing plans for the next year. So – any comments, any suggestions, or is everyone happy with the agenda? Okay, then let’s start with item one on the agenda. I think Mr. Smith has prepared a statement on the personnel changes so I’ll hand over to him.
Practice 3 – a model conversation
A: The fall in sales is mainly due to the recession affecting world markets.
B: Er, can you tell us exactly how much sales have gone down?
A: Well, it’s a general fall of
around 5 % in sales for most product areas. Also, specifically in the oil
processing sector, we have much lower sales, mainly because we sold our
B: Can we talk about the decision to sell Anglo Oils …
A: Well, no, I’d rather not go into that. We discussed that in previous meetings. I’d prefer to talk about future prospects. The outlook is very good just now…
B: What? I’d say things look quite bad.
A: I’m very surprised you say that. In fact, sales forecasts are much better now. Anyway, let me tell you …
B: Sorry, I think I’d like to hear more about new markets.
A: New markets? Yes, but can we talk about new markets later? I have some important information on that. But first…
B: Wait, don’t you think we should take a short break – have a coffee?
A: Take a break? We’ve only just started!
a. Decision making meetings.
b. The structure of decision making: see the bulleted points in the second paragraph.
c. Communication has to be a two-way process to be successful.
a. Not all meetings are to make decision – as implied in the first sentence of the text. Decisions may already have been made, so a meting is called to tell people about the decision (an information giving meeting).
b. An alternative description of the structure of decision making is the DESC model, which is included in the Skills Checklist.
c. In many instances of communication, a message is given and it is sufficient that it is comprehended, without even an acknowledgement (a recorded message, for example). However, this may be slitting hairs: the point is that in meetings at least an acknowledgement or agreement is expected. It seems fair to say that in most cases, communication is a two-way process.
d. It is true that often an agreement, or a consensus, can be arrived at without a formal vote: it is the leader’s responsibility to make clear what the consensus is and ask if everyone accepts it.
b. time- and cost-effective manner
d. set an objective
g. evaluate alternatives
i. awareness / empathy
a. – a restatement of objectives
- a summary of what has been accomplished
- a summary of what action must be taken after meeting
b. Meetings should be part of a learning experience, so future meetings can be improved by asking participants to evaluate meetings.
Practice 4 – a model conversation
A: Can we reach a decision on this?
B: Well, I … I think … er, I think we need more information.
A: Hmm. Can you explain – say exactly what sort of detail you think we need?
B: Well, I feel first of all, we need to know more about the effects of a price increase.
A: Perhaps we should, er, commission some market research?
B: Yes, I agree. That’s right. We could ask Hamid to recommend someone.
A: Well, I think before that we could look at our own experience of price rises. Then later we can perhaps ask a marketing consultancy. Does everyone agree with that proposal?
All: (murmur of agreement)
A: Okay, let’s move to the next item on the agenda.
Practice 5 – a model example
So, we’ve almost finished. Does anyone have anything else to say? Well, we had to decide on action regarding training courses. To summarize, to confirm our decision, we’ve agreed a $10,000 budget. And also that Peter is going to identify three possible training organizations. Is everyone happy? Is that okay? Now, Peter will organize a presentation for next week, on the 14th at 2 p.m. until then, thanks everyone for coming. That’s it for today.
Exercise 1 – Chairing a meeting
Chairman I’d like us to reach a decision today about item 1. The issue is falling sales in the Italian market. Henry will explain the background to this, and the present situation.
Henry Thanks. Well, as you know, in
Chairman Thank you, Henry. Now, let’s look at possible courses of action.
Bob Could I just say something ? The Italian
market isn’t as important to us as the Russian orders. I was in
Chairman Let’s keep to the immediate subject, which is the Italian market.
Chairman Let’s not jump too far ahead at this stage.
Bob My own feeling is this : in years of experience, in many different markets throughout the world, I’ve often found that, when… and you know, if I could pass on my experience to the younger people here, I’d say that the only way to sell in Italy is to go there and see the market for yourself, instead of asking your agents to do it.
Chairman Sorry to interrupt you, Bob, but I’d like to know if the others agree. What do you think about this, Walter?
Walter I’m not too sure about this . My own feeling is that if…
Bob I don’t know why you don’t ask me. I’ve been
Chairman Could you let Walter finish? I’d like to have his view on this .
Walter Well, I’d like to say that for the last two years we haven’t had a stand at the Milan Trade Fair. I understand that the Fair has produced lots of contracts in the past.
Chairman That’s an interesting point, Walter . Let’s summarize what we’ve said so far. Bob thinks we depend on the agents too much, and Walter suggests that the Trade Fair is important.
Exercise 2 – Formal meetings
a. address; approve; move; second; carried; casting; on
b. true: 1, 2, 6, 7
false: 3, 4, to second means to give formal support to the motion for presentation to the board, 5 to abstain means to decide no to vote
Exercise 3 – Could I ask you a question?
You: I’m afraid I can’t comment at the moment.
You: A statement will be issued shortly.
You: I’m sorry, but I can’t comment at this stage.
You: Yes, I’m pleased to be in your country.
You: I can’t tell you anything before the statement is issued.
You: I would rather not answer that question at present.
You: I did not say that at all.
Practice 1 – a model
a. Well, welcome to … It’s very good that you could come to see us here.
b. I hope you had a good trip? Not too long …? Did you get a taxi when you arrives here?
c. At lunchtime we’ll be able to show you a little bit of the city – have something to eat in a local restaurant.
d. Well, shall we make a start?
e. Okay, well, can I ask Luke Fox, from our Marketing Department, to begin our discussion with some opening remarks. I think you’ve met James already this morning, and a little while ago too?
f. Firstly, we see this meeting as an exploratory session, I think it’s best for both of us that we look at some general questions.
g. We’d like to establish the beginnings of a partnership … It would be particularly interesting for us to learn about your supply systems … about price variations and about supply costs.
Identify your minimum requirements. 2
Prepare your opening statement. 7
Decide what concessions you could make. 3
Know your own strengths and weaknesses. 4
Know your role as part of a team. 6
Prepare your negotiation position – know your aims and objectives.1
Prepare any figures, any calculations and any support materials you may need. i
a. Knowing your aims and objectives
ii. helps clear thinking and purpose.
b. Knowing your own strengths and weaknesses
iv. helps you to know the market, the context in which you want to work.
c. Preparing any figures, calculations and other materials
means you can support your argument.
d. Preparing an opening statement
iii. creates reasonable expectations.
b. F Better not to guess (though privately you might to some extend).
d. F Issues are best dealt together with other issues, in a package.
e. T One should usually be prepared to make concessions.
g. F No, one can keep on talking and find a way round the problem.
a. Check what they say without commenting, at least not immediately.
b. Vary the quantity or the quality, or bring in third parties.
c. Be prepared, think about the whole package, be constructive.
b We can give you free delivery with a larger order.
c We provide free on-site training for only a small price increase.
d. We can give 5 % discount if you agree to payment on delivery.
e. We can offer you an extra £50,000 compensation in exchange for your agreement not to go to law.
f. We promise to improve safety for staff provided that we reach agreement on new contracts.
g. The company will introduce better working conditions if the staff accept shorter breaks.
Ojanpera: Well, we’re happy to buy a machine if you can give us a good price.
Beck: I’m sure we can. As you know our prices are very competitive.
Ojanpera: Even so, I’m sure you can allow us a discount?
Beck: Okay, well a discount could be possible if you agree to pay for the shipping costs.
Ojanpera: That sounds okay, if the discount is a good one.
Beck: How about 4 %?
Ojanpera: 6 % would be better.
Beck: I’m sorry, we can’t manage that unless you pay for the installation.
Ojanpera: Okay, our engineers will take care of that.
Beck: Okay then, so to confirm: a 6 % discount but you pay all the shipping and installation costs.
Ojanpera: That sounds all right.
GIBSON TRUST LIMITED
Units 9-12 East Side
Monks Cross Industrial Estate
Telephone 01272 547777 Fax 01272 547701
Ministry of Urban Development
May 2 200—
Re: Meeting in
I am writing to (a) confirm points (b)agreed in the above meeting, held to discuss the sale of government owned railway land to Gibson Trust Limited.
We would like to confirm through this letter and the (c) enclosed drawings that the property (d) included in the above sale consists of the land presently occupied by the station buildings and also the former car parks to the east of the station, the offices to the west and the warehouse alongside the tracks. The government-owned housing on the north side of the railway lines is (e) excluded .
We also agree that the station will be renovated by the Transport Department and that the government will be responsible for running an eventual museum and paying a rent of £ 100,000 per year to Gibson Trust. The remaining land will be (f) developed by Gibson Trust and later sold off separately. The development is intended to be for commercial and residential use. The eventual use of the land should be (g) specified in the contract.
Our next meeting will be on May 15 at 10 a.m., at which development plans will be (h) examined. Soon after this, contracts will be (i) drawn up. Then we will need time to consider the contracts but hopefully they will be (j) signed by the end of September.
Do contact us if you have any comments or alterations you would like to make to this summary. Thank you once again for a very constructive meeting and we look forward to seeing you again on May 15.
a. emphasize the benefits available to both sides
b. invent new options for mutual gain
c. change the package
d. adjourn to think and reflect
e. change location
f. change negotiator (personal chemistry?)
g. bring in a third party (mediator?)
h. fix an off-the-record meeting
The problem is that we have never offered the kind of warranty you are looking for.
Since we have a difficulty here, may I suggest we leave the problem of the warranty and come back to it later? Perhaps we could talk about training for our technical staff?
There’s a number of issues on the table. We seem to be a long way from an agreement.
Can I suggest a lower price, but link this with us paying the shipment costs or agreeing to different payment terms?
The price you are asking is rather high, quite a lot higher than we were expecting.
Well, if it would help, we could agree to longer payment terms
There are several problems. We think there is quite a lot of negotiation ahead before we can agree on a common strategy.
The benefits of reaching agreement are considerable. We will have more global influence and better prospects for the future.
Strategies in dealing with conflict
I think we’re not really making much progress. Perhaps it would be better to leave this point for a while and come back to it later. Could we talk about a different aspect to the deal, perhaps the question of delivery?
I think it is important to think about what could happen if we do not reach agreement. The most obvious consequence will be that we will both lose market share. The only winners will be our competitors. It could be serious for both of us.
There seem to be a number of problems, but I’d like to summarize the positive elements – issues where we have made progress. First, we agree that we have to settle the dispute between us, we understand how important this is. Second, we agree that the terms of our original agreement need to be changed. Third, we also agree that the change will depend on the different market conditions which affect our products… These are important points of progress.
Can I suggest we take a short break? I think it will help if we look at some of the issues that are dividing us. Perhaps we will see areas where we can make a fresh offer.
The point at issue, Mr. Cinis, is quite simple. We can offer you an extra 5 % discount, but only if the order is increased by 20 % over the next three years.
Let me make a suggestion. If you agree to buy 100 units every month for the next twelve months, we’ll agree a 10 % discount.
Unfortunately, I can’t say how many we’ll need in six months and certainly not in twelve. I can’t take the risk on such a large order at this stage.
The price we are offering excludes installation costs but does include a twelve month’s guarantee.
I’m afraid that’s not really acceptable. You know that other suppliers offer free installation and two year parts and labour warranty?
I think the absolute minimum investment in advertising must be $40,000, otherwise we cannot reach enough of our market. It’s not much to ask for.
It’s a pity but it’s still more than our budget. I can’t go that high.
Now, some excellent news: we’d like to increase our order. Right now you are sending us 350 boxes a month. We need at least 500, demand is very high …
Well, I’m glad you’re having a lot of success with our products, but the bad news is that our order books are full, and the plant is working at full capacity. We’re a bit stuck I’m afraid
It’s been a long meeting, but finally I’m very glad we’re able to reach agreement. I think it would be good if we could go on to a restaurant now, we’d be pleased if you can join us.
I’m sorry our efforts to reach agreement have not been successful. I suggest we stop here, but I hope that in the future we might work together on something.
Unfortunately I feel it would be better if I don’t join you on this project, but no doubt there’ll be plenty of other things we’ll work on.
I’d like to repeat our order, but not on those terms. I’m sorry, we can’t agree to this. I think we’ll go elsewhere, but thanks anyway.
I’m sorry, but it really is physically impossible. We cannot supply goods in so short time. It’s just impossible. Sorry we can’t help you.
Exercise 1 – Your turn to negotiate
Suggested replies: Let’s see how we get on. Why such a long delivery period? This is our position. We need delivery of six weeks maximum, with four weeks for installation. I’m sorry, but I can’t accept eight weeks. You’ll have to do better than that, I’m afraid. I’m afraid I can’t increase the delivery period any further. I have my instructions. May I make a suggestion? If you can promise delivery in six weeks, then we may be able to talk about further order. Let’s go through the terms: six weeks for delivery and four weeks for installation; and the decision about the next order to be taken by the 26th. Agreed?
Exercise 2 – Ten rules for negotiating
a 4; b 6; c 1; d 8; e 2; f 5; g 7; h 3.
Exercise 3 – When things get difficult
A. Would you like me to go through that again? B. I’ll have to come back to you on this. C. Could you give me a moment to do some calculations? D. What is the basis of calculation for transport? E. I’m just looking. Could you bear with me a moment? F. The figure for installation costs? What is the basis for calculation? G. I’m sorry, could you go through it again?
Exercise 4 – Vocabulary for contracts
a. agreement; parties; sections; clauses; conditions. b. provides for, binding; abide by/comply with; breach c. arbitration; litigation; compromise; court; out of court d. term; terminate.
Exercise 5 – Licensing terms
(in order): have the legal rights over; let you have; permission; country; an immediate payment; 5 % to pay; yearly bottom limit; period; further years; when it ended; illegal copying; official manufacturer; ask for a ban; copier’s.
A personal choice of qualities: D, F, H, and J.
a. 1 resources 2 manageable 3 setting, communicate
4 supervise, performance 5 achieved 6 board of directors
b.Common collocations include: allocate resources (or people); communicate information or decisions; develop strategies (or people or subordinates); make decisions; measure performance; motivate people; perform jobs; set objectives; and supervise subordinates.
1 C; 2 E; 3 B; 4 A; 5 F; 6 G; 7 D
A functional structure
B matrix structure
C line structure
D staff position
Describing company structure
Here is a short description of the organization chart illustrated.
The chief Executive Officer reports to the President and the Board of Directors. The company is divided into five major departments: Production, Marketing, Finance, Research & Development, and Human Resources. The Marketing Department is subdivided into Market Research, Sales and Advertising & Promotions. The Finance Department contains both Financial Management and Accounting. Sales consists of two sections, the Northern and Southern Regions, whose heads report to the Sales Manager, who is accountable to the Marketing Manager.
a. 1 subcontractor 2 component
3 outsourcing or contracting out 4 capacity 5 plant
6 location 7 inventory 8 lead time
b. 1 A and E 2 C 3 D 4 A and E 5 A and E 6 D
7 F 8 E 9 F 10 E 11 B 12 E 13 B 14 C and E 15 B and F
1 component 2 subcontractor 3 inventory 4 outsourcing
5 location 6 plants 7 capacity 8 lead times
What is a product? / The definition of a product.
Product lines and product mixes.
Line-stretching and line-filling.
1 credit facilities 2 warranty or guarantee 3 shelf
4 brand-switchers 5 (product) life cycle 6 profitability
7 opportunities 8 market share 9 image 10 niche
1 A 2 I 3 F 4 H 5 D 6 J 7 E 8 B 9 C
Paragraph 1 – the selling and marketing concepts
Paragraph 2 – identifying market opportunities
Paragraph 3 – the importance of market research
Paragraph 4 – the marketing mix
Paragraph 5 – company-to-company marketing
1. Customer needs; 2. Market; 3. Coordinated marketing; 4. Profits through customer satisfaction
1 word-of-mouth advertising 2 institutional or prestige advertising
3 advertising agencies 4 an account 5 an advertising budget
6 a brief 7 advertising campaign
8 target customers or target market 9 media planners
10 the threshold effect 11 the comparative-parity method
12 counter-cyclical advertising
The numbers of respodents who agreed with the statements were as follows:
2. 72% 3. 85% 4. 51% 5. 41% 6. 49% 7. 60% 8. 57%
1 target 2 awareness 3 medium 4 tactics
5 trial 6 maturity 7 aimed 8 loyalty 9 advertising
1 When a new product is launched, the producer has to inform customers about its existence and develop brand awareness.
2 Promotion is one of the four elements of the marketing mix; sales promotions are one of the four different promotional tools.
3 The advantages of publicity include the fact that it is much cheaper than advertising, and can have a better impact, because it seems that people are more likely to read and believe publicity than advertising.
4 The four stages of the standard product life cycle (excluding the pre-launched development stage) are introduction, growth, maturity and decline.
5 Reasons to offer temporary price reductions include attracting price-conscious brand-switchers, offsetting a promotion by a competitor, and, for stores, attracting customers by way of ‘loss leaders’.
6. Sales promotions need not only be aimed at customers; they can also be used with distributors, dealers and retailers, and with a company’s sales force.
7. Apart from selling a company’s products, sales representatives bring information back to a company from its customers, including ideas for new products.
1. competitors 2 word-of-mouth advertising 3 brand-switchers
4 points of sale 5 brand name 6 line-stretching 7 packaging
8 product improvement 9 media plan 10 packaging
1 Market leaders
2 Expanding markets
3 Market challengers
4 Market followers
5 Establishing a niche / Dangers faced by market followers
1 market share 2 promotions 3 monopoly
4 competitors 5 slogan 6 market segmentation 7 niche
8 differential advantage 9 turnover 10 recession
1 to innovate (innovation) 2 to diversify (diversification)
3 to merge (a merger) 4 a raid 5 a takeover bid
6 horizontal integration 7 vertical integration 8 backward
integration 9 forward integration 10 synergy
1 The fact that many large conglomerates’ assets were worth more than their stock market valuation demonstrated that they were clearly not maximizing stockholder value, i.e. giving their stockholders the maximum possible return on their investment.
2 Raiders bought conglomerates in order to strip them of their assets, i.e. to restructure them, split them up, and resell the pieces at a profit.
3 Raiders showed that the stock market did not necessarily value companies’ assets correctly, especially land, buildings and pension funds.
4 Raiders were particularly interested in companies with large cash reserves, companies with successful subsidiaries that could be sold, and companies in fields that are not sensitive to a recession.
5 Investors were prepared to lend money to finance LBOs because they received a high rate of interest which more than compensated for the risk that the bonds would not be repaid.
Raiders argue that the possibility of a buyout forces company managers and directors to do their jobs well, and to use their capital productively.
1 charities 2 legitimacy 3 perfect competition 4 welfare
5 threatening 6 vitality 7 free enterprise 8 conforming
9 embodied 10 proponents
1 B 2 C 3 D 4 G 5 A 6 E 7 F
1 shareholders or stockholders 2 earnings or income 3 liabilities
4 turnover 5 assets 6 depreciation or amortization
7 debtors or accounts receivable 8 creditors or accounts payable 9 stock or inventory 10 overheads or overhead
1 assets 2 stock or inventory 3 depreciation or amortization 4 shareholders or stockholders 5 earnings or income
6 turnover 7 overheads or overhead 8 liabilities
9 debtors or accounts receivable 10 creditors or accounts payable
Vocabulary – Financial statements
turnover 2. overheads 3. depreciation 4. freehold properties
5. historical cost 6. debtors 7. cash in hand at bank 8. corporation tax. 9. net assets 10. called – up share capital.
A The period of gold convertibility.
B Floating exchanges rates.
C The abolition of exchange controls.
D Intervention and managed floating exchange rates.
E The power of speculators and the collapse of
F Why many business people would prefer a single currency.
G The introduction of the single European currency.
1 False 2 False 3 True 4 False
5 True 6 True 7 True 8 False
1. 1 B 2 D 3 A 4 C 5 F 6E
1 adjust 2 convert 3 abolish 4 suspend
5 fluctuate 6 diverge
1 overdraft 2 credit card 3 cash dispenser or ATM
4 loan 5 standing order or direct debit 6 mortgage 7 cash card
8 home banking 9 current or checking account 10 deposit or time or notice account
1 Commercial banking
2 Investment banking
3 Universal banking
4 Interest rates
1 deposit 2 foreign currencies 3 yield 4 liquidity
5 maturity 6 underwrite 7 takeover 8 merger
9 stockbroking 10 portfolio management 11 deregulation
12 conglomerate 13 blue chip 14 solvency 15 collateral
.Common collocation include: charge interest; do business; exchange currencies; issue bonds; make loans; make profits; offer advice; offer loans; pay interest; raise funds; receive deposits; underwrite security issues
1B 2 A 3 A 4 B 5 C 6 A 7 B 8 C 9 C
A The functions of taxation.
B Advantages and disadvantages of different tax systems.
C Tax evasion.
D Avoiding tax on salaries.
E Avoiding tax on profits.
1 depreciation 2 disincentive 3 regressive 4 consumption
5 self-employed 6 national insurance 7 perks
8 tax shelters 9 tax-deductible 10 tax havens
1 liability 2 creditor 3 bankrupt 4 assets
5 to liquidate 6 liabilities 7 to put up capital
8 venture capital 9 founders 10 premises
11 underwrite 12 dividend
1 mutual fund 2 portfolio 3 stockbroker 4 blue chip
5 defensive stock 6 growth stock 7 market-maker
8 institutional investors 9 inside share-dealing
1 H 2 B 3 A 4 C 5 I 6 E 7 F 8 D 9 J
1 F 2 E 3 A 4 B 5 G 6 C 7 D
1 B 2 A 3 F 4 C 5 E 6 D
1 The difference between futures and forward contracts is that futures are standardized deals and forwards are individual ‘over-the-counter’ agreements between two parties.
2 Producers and buyers often choose to hedge because this allows them to guarantee prices for several months.
3 Speculators can make money on currency futures if they correctly anticipate exchange rate appreciations or depreciations or interest rate changes.
4 If you believe that a share price will rise, possible option strategies include buying a call, which you will be able to sell at a profit, and writing (selling) a put, which will never be exercised, so you earn the premium.
5 On the contrary, if you think a share price will fall, possible option strategies include buying a put, so you will be able to sell your shares at above the market price, and writing a call, which will never be exercised, so you earn the premium.
6 The risk with currency and interest rate swaps is that the exchange and interest rates may change unfavourably.
Appreciate – depreciate
Call – put
Discount – premium
Drought – flood
Floating – fixed
Hedging – speculation
Spot market – futures market
Strike price – market price
The word ‘premium’ is used twice with two different meanings in the text. ‘At a premium’ means above the nominal or market price; premium also means the price of an option contract.
Adauga cod HTML in site