English for Economist and managers-1

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3)If I ( pass / will pass) my exams, I (enter / will enter) the University.

4)If there (is / will be) a good program on TV, I (watch / will watch) it.

5)I (tell / will tell) him the news when I (see / will see) him.

6)If it (rains / will rain), I (stay / will stay) at home.

7)I (try / will try) to speak to the Managing Director before he (leaves / will leave) for New York.

8)I (buy / will buy) a car when I (save / will save) enough money.

9)If you (insist / will insist), I (accept / will accept) the invitation.

10)What (do / will) you do if you (miss / will miss) the train?

11)I (pay / will pay) for the coffee if you (don't / won't) mind.

12)In case you (arrive / will arrive) earlier, wait for me at the station.

2. Choose the correct verb form from those in brackets.

1)If you (are not able / will not be able) to do this yourself, I (help / will help) you.

2)I (go / will go) to stay with my grandparents as soon as the exams (are over / will be over).

3)Can you look after my cat while I (am / will be) away?

4)If it (isn't /won't be) too expensive, I (buy / will buy) it.

5)You (fail / will fail) your exam if you (don't / won't) study hard.

6)Where (do / will) you stay when you (arrive / will arrive) in Paris?

7)As soon as I (get / will get) tickets 1 (phone / will phone) you.

8)The flowers (don't / won't) grow well if you (don't / won't) look after them properly.

9)I (don't / won't) go to bed until I (finish / will finish) writing the paper.

10)If you (are / will be) out, I (leave / will leave) a message on the answer phone.

3. Choose the correct verb form from those in brackets.

1)I (show / will show) you round the factory as soon as the interview (is / will be) over.

2)As soon as we (get / will get) money for the project we (start / will start) constructing the building.

3)If we (get / will get) cold, we (make / will make) a fire somewhere on the way.

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4)You (recover / will recover) soon, if you (follow / will follow) the doctor's advice.

5)We (go / will go) there straight away as soon we (get / will get) a message from them.

6)I (have / will have) lunch as soon as I (finish / will finish) typing the report.

7)If he (calls / will call), tell him I (am / will be) at home after 8 o'clock.

8)Where (do / will) you stay if hotels (are / will be) full?

WRITING

1. Put the parts of the letters into correct order. A

A.Yours faithfully,

B.We are interested in Rosles company products. We should be very pleased if you could send us all possible information about your production, so your price-lists and catalogues will be much appreciated.

C.Dear Sirs,

D.We look forward to your prompt reply.

B

A.Yours faithfully,

B.Dear Sirs,

C.We thank you in anticipation of a prompt reply.

D.We are interested in importing your office equipment to Russia. We should be grateful if you send us catalogues and prices.

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ВНЕАУДИТОРНОЕ ЧТЕНИЕ

Read and translate the following units. Pick out unfamiliar terms and learn them.

Unit 1

What is Business? Business is not an easy thing. It's rather a difficult kind of human activity. It has many important elements such as money, taxes, customers, transport, banks and others. There are two general types of business: small business and big business.

Why do people do business? People do business by producing goods or providing services. They buy and sell goods. They do business for a profit. There is no business without a profit. Production of goods is very profitable, provision of different services is profitable too. Communications are a good business too, for example, telephone, telegraph and mail services. Financial services, for example, banking and insurance, work very well, too.

Doing business has become very popular everywhere. At present it is very popular to be a businessman or a businesswoman. It should be noted that women, like men, successfully run a firm or a company, they prove to be good bank managers or shop keepers. Briefly speaking, doing business is a comparatively new and perspective tendency in modern life.

Setting up a Small Business. Not long ago I decided to set up a small business. As I had no experience in business activities it was difficult for me to choose an appropriate business. So I went to the lawyer's for consultation.

After clarifying all the details of my project and my financial possibilities he recommended me to set up a small business in the field of services. According to the lawyer anyone who wants to set up a small business is to make sure that he/she is choosing one which will work and yield big profit. This requires a thorough investigation into the customers' needs. So, the first step I had to take was to study my future customers' needs and wants.

One of the difficulties I was faced with was lack of money, and I had to borrow it from the bank. The next day I made a loan of 2 m. pounds, and was "on the seventh heaven" because now I could put my project into practice.

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Now, at the prime of my business life I still remember my lawyer's words: when choosing a business weigh all pros and cons and ask yourself the questions: what kind of customers am I going to serve upon? How many potential customers are there in my district? How shall I attract customers? What products or services shall I offer?

Briefly speaking, plan every step of the way before you start your business. Never make haste while making a decision. Remember: haste makes waste.

How I Started Business. It's common knowledge that doing business has become very popular everywhere. At present it is a comparatively new and perspective tendency in modern life.

So, not long ago I made up my mind to go into business. Following my lawyer's advice I chose small business in the field of services. It goes without saying that I weighed all pros and cons before making a decision. I understand that production of goods is very profitable, but provision of services is profitable too. After all, people do business for a profit.

At first I wanted to be a sole trader, but then I changed my mind and organized a partnership. I went into business with my friend Jean. She has a solid background in accounting, she is good at keeping the books and ordering stock. As for me, I enjoy selling and like talking to customers.

So far our business is going pretty well, and the shop is beginning to attract more customers. I won't be boasting if I say that we begin to make a good profit. By the way, we have a certain arrangement for distribution of profits and losses. They are equally shared. I hope to be in business for a long time. I've really become very knowledgeable about business.

Reasons of Failure. There are several reasons why many new businesses fail. First of all there has been general recession. Then there's the question of labour

relations. What is officially called "industrial action", which actually means strikes contributed to the rapid disappearance of many little enterprises. But it is more than likely that what really accounts for most of the failures is simply bad management.

Let's look at some of the ways in which a business may be badly managed.

First, many new businesses are undercapitalized, that is there isn't enough money available to them to give them a real chance to succeed. Those enterprises which are undercapitalized are sure to be in trouble. Therefore, never attempt to start a new venture if you haven't got enough capital.

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Second, many new businesses fail because they are in the wrong place or their premises are unsuitable; they operate inefficiently, because they haven't got enough room or appropriate facilities. So, don't hurry to settle on premises which turn out to be unsuitable.

Third, some ambitious new businesses spend too much of their capital on presenting a glossy image, expensive office furniture and fittings which do not contribute anything to meeting the expenses.

Fourth, far too many businesses fail because their managers do not carry out the necessary research of the market to make sure that their product is in demand and needed by the people. Therefore, always research the market before you decide to enter it.

There are a lot of other factors to be taken into account: installing the right equipment, hiring a suitable workforce, ensuring a supply of raw materials on term you can afford; controlling production, keeping a close check on prices and customer credit.

Unit 2

Starting a New Business. When you start a new business, you are often in the red at least for the first few months, sometimes even years. If you are lucky and work hard, after a couple of years your company may break even, or even be in the black.

To turn a profit in a new venture, you often need someone to float you a loan, such as a rich uncle. Of course, if you have a credit card with a high credit limit, you can always use plastic to help you overcome difficult times. But watch out: interest rates on credit card loans are typically very high.

When you set up a business, it may so happen that you are short of money. In this case you will need some help in financing your business. You should know how to calculate the amount of money you need to borrow. It is usually done by drawing up a plan - a cash flow chart.

What is cash flow? Money does two things in a business: it comes in and it frees out, like water in a bath. This is called cash flow. If money comes in faster than it goes out, the business is said to be effective, and money is available for expansion or investment. But if money goes out faster than it comes in, the business can dry up.

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Achieving wealth in some form, usually money, in addition to financials, some businesses need to collect that money after providing a service or selling a product.

Sometimes collecting is easy, as in a store, when the buyer pays at the time of purchase. In many businesses, however, collecting money is the hardest part of doing business because clients are given credit and are expected to pay later. Even if your customer has strong financials and strong credit, it is not a guarantee of payment.

Costs and Profit. Once you have decided on a business scheme which your market research suggests will be successful, you can find out whether you will make a profit. To do this, you need to estimate your costs (how much it'll take you to run the business) and your pricing (how much you can sell your goods or services for).

What are your costs? Your business costs can be broken down into four areas: material costs, labour costs, overheads and your own wages. Decide on a time period (say, three months) and work out each of your costs. Material costs. If you are making a product, you will need to buy the materials. Estimate how much money you will spend to buy the necessary things for making your product.

Labour costs. If there is more demand for your work than you can do yourself, you will have to take on an assistant. When estimating, you must take into consideration how long it will take to have coffee breaks, giving or receiving instructions, travelling time and dealing with customers; all this may come to 15 or 25 per cent, on top of the time required to perform the main job.

Overheads. They are charges incurred in the general running of the business. They include: rent, rates, telephone bills, postage, fuel, advertising, insurance, travel, interests on borrowed money and money spent on the upkeep of equipment. Own wages. This is the minimum amount of money you feel you can live on.

What price? Base your prices on what people have said they would pay for your service or product as compared with the price (service) in other shops.

Book-keeping. It is necessary to keep records of the financial affairs of even the smallest business. There are three main reasons for this.

Firstly, they will remind you to pay your bills and collect your debts from customers on time. Secondly, you can see how much money you are making or losing. Finally, they will enable you to work out how much tax you should pay.

Keep accurate, clear accounts using the documents shown below. Accounting reminders: PURCHASE / ORDERS / DELIVERY NOTES / INVOICES. Check book stubs. When you open a bank account, you are given a paying-in book and a

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check book for taking money out. These often have stubs or forms attached on which you can make a note on the amount you are paying in or out.

Borrowing from a bank. This involves preparing a campaign to convince the bank manager that your business is a good investment. The bank manager may ask you to provide with security (a promise that you will sell a valuable possession to pay off your debts if your business goes bust), or a guarantor (a friend or relative who agrees to repay the loan if you cannot). Usually, you borrow money from a bank in the form of a loan.

A Short History of one’s Business. In 1960 Brian Baker, Managing Director of Lindon & Son, borrowed a large sum of money from Bridges and Company Bank to finance the business.

It's in place here to mention that Mr. Baker's business has been in full swing since that time, and seems to be prospering in future. Suffice it to say that within a short period of time the parent company "gave birth" to many subsidiaries, and now has got 50,000 employees, as well as many manufacturing assembly plants and factories. They have their branches in 25 cities and towns all over the world.

It's no exaggeration to say that they produce high quality products. They use the most advanced technologies, and are in close contact with the market. They produce a great variety of products ranging from spare parts of domestic appliances to small tractors and grass-cutters.

To keep abreast with the time and to have the production on a high technological level they try and invest a lot of money in research and development. The company has sales reps all over the world, and theirr prices are said to be very competitive.

As regards their future they plan to increase the production, profits and turnover, to export to more countries, and expand their international links. In the latter case, they have made considerable progress by concluding economic, scientific, and hightech agreements as well as through exchanging specialists.

Now back to Mr. Baker and a short history of his business. Mr. Baker has had an enormous input in his business, and proved to be a talented and gifted manager. 18 years ago Mr. Baker earned a good salary at Frankfurt, but he wanted to have his own company. He could not afford to start a company immediately, because he needed money. During his years in Frankfurt he saved as much money as he could, and some years later he invested his money of $500,000 in total in his new company.

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His profits rose by 25 % per year and reached $45,6 m. in 1990. Now he owns 80 % of the company, and his shares in the company are now worth $899 m.

Company Strategy. A business company is an institution established for the purpose of making profit. It's a big organization which is operated by individuals. Their share of ownership is represented by shares.

In order to operate successfully a business or a company has to have its strategy. The company strategy must be flexible enough and take into account the changing market conditions.

The main objective here is to gain a market share, and in order to achieve it, it's necessary to reduce prices. But if you reduce prices, your margins will be lower, and that will cut profits.

If you can slowly increase production, you will be able to cut unit costs though it seems to be a long-term prospect. Unit costs can come down if you invest in new plants and machines. Let's try to define the company strategy from the point of view of the market and manufacturing.

If you think that increased market share is the main objective in the company strategy, you are highly mistaken. First of all you should go in for a higher profitability. If you can upgrade the product, you are sure to get better prices and therefore higher profits.

You should bear in mind that the market is very competitive now. If you increase prices, whatever the quality, sales may drop rapidly. Let's look at the problems from the manufacturing view-point. If you can reduce costs in manufacturing, it'll put you in a strong position and enable you to adapt to the market.

The only way you can become flexible enough is to subcontract more of the production. It means job losses if you do that, but the jobs which remain will be more secure.

Liquidation. If a limited or public company builds up large debts which it cannot pay, it goes into liquidation.

The latter may be voluntary or compulsory. If it is voluntary, the directors promise to pay all debts within a certain period of time (12 months in the U.K.). Compulsory liquidation occurs when an unpaid creditor applies to the courts.

In both cases, the directors must prepare a full statement of the company's affairs, listing its assets and liabilities, and why it is in debt. The company must also stop trading. Directors of large companies sometimes give press conferences to

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explain the situation to the shareholders. They can also give a televised talk on the matter.

How to avoid bankruptcy or liquidation. If you have a temporary cash flow problem, there are a number of ways you may follow without going bankrupt or into liquidation:

-raise some money from the bank. If the company that owes you money is secure (for example, a large prosperous company), a bank may be prepared to tide you over with a short term loan;

-sell some assets, for example, stock, or sell your premises and rent them back;

-you may be able to sell the business at a low price.

Unit 3

Company Organisation in Britain. This is a typical organization of a British company. The highest managerial organ of a Stock Company is the Assembly of shareholders which elects the Board of Directors, and the latter elect their supreme governor. The Board of Directors performs three main functions: it appoints the administration, considers general policy questions, makes corporate decision and exercises control over the activities of the administration. It also sees to it that the enterprise (business) can yield profits, that shareholders can get high income on their stocks, and it must also analyze its own activities.

The absolute head of the company is the Chairman of the Board, and his job is to take the chair at meetings of the shareholders, and the Board of Directors, and to represent the company's interests at outside functions. He does not take much part in the running of the business.

There are two kinds of directors: so to say non-executive directors (not full time employees). They are the sort of people who have some standing in various parts of the business world and are in a position to help the company to succeed. They only appear when there are meetings of the Board. But the second lot of directors - the executive directors - are full time employees of the company. Most of them are managers of the departments. First comes the Managing Director whose job is to coordinate the policies decided by the directors, and see that they are implemented. It is carried out through various departmental managers.