108

• Реєстраційний номер

• Факультет романо-германської філології

• Кафедра лексикології і стилістики англійської мови

• Л.О. Мойсєєнок, доцент кафедри лексикології і стилістики англійської мови

• Методичний посібник до англомовних текстів економічної спрямованості для студентів першого та другого курсів Інституту математики, економіки і механіки. Розмовні теми. Спеціальність „міжнародні економічні відносини”

• Рецензенти : М.Д. Кирилова, кандидат філологічних наук, доцент кафедри

теорії та практики перекладу;

О.А. Розанова, кандидат філологічних наук, доцент кафедри лексикології і стилістики англійської мови

• Рекомендовано до друку Вченою радою факультету романо-германської філології Одеського національного університету імені І.І. Мечникова

Протокол № 2 від 11 листопада 2008р.

Міністерство освіти і науки України

Одеський національний університет ім. І.І. Мечникова

Розмовні теми

Методичний посібник до англомовних

текстів економічної спрямованості

для студентів першого та другого курсів

Інституту математики, економіки

і механіки

Спеціальність

«Міжнародні економічні відносини»

Одеса

2008

Цей посібник, призначений для студентів першого та другого курсів відділення міжнародних економічних відносин, було укладено у відповідності до програми з англійської мови для студентів зазначеної спеціальності. Мета посібника – навчити студентів читати, розуміти та перекладати тексти економічної спрямованості і вести бесіду за спеціальними темами.

Посібник складається з 15 уроків, кожен з цих уроків містить текст і діалог на одну із тем, передбачених програмою. До текстів і діалогів додані активний словник і розділ, в якому наведені докладні коментарі до економічної термінології за відповідною темою. До посібника також включено тренувальні та комунікативні вправи для закріплення лексики уроків. Лексичний матеріал містить як економічну термінологію, так і загальновживані слова і словосполучення, котрі студенти можуть вживати в розмові за неспеціальними темами.

Посібник розраховано для студентів, які тільки починають вивчати економіку, тому в текстах уроків не порушуються складні проблеми економічної теорії, а подається тільки загальний огляд деяких основних розділів економіки. Розглядаються різні види торгівлі, засади банківської справи, оподаткування, страхування, види компаній. Окрім цього порушуються загальні проблеми рекламування в бізнесі, імпорту товарів, контрактів і т.п.

Посібник може використовуватися як для роботи в аудиторії, так і для самостійної роботи студентів.

Lesson 1

The businessman and his bank

Part I

The bank plays an important part in the activities of a businessman. The owner of a company will open a Current Account with a bank on commencement of a business. He will deposit the daily proceeds of the business into this account. The bank will supply the company with a cheque book of 25 to 50 cheques. The manager will pay the company’s bills by issuing cheques. The bookkeeper of the company will check the correctness of each bill and obtain the approval of the manager before making payments. He will fill up the cheque with the date and state the amount payable in words and figures. The cheque must be signed by an authorised person. It should be made payable to the company which supplied the goods or services.

If a company has surplus funds its manager may place them in a Fixed Deposit Account. The money cannot be withdrawn for an agreed period of time such as six months or a year. This will enable the bank to use the depositor’s money for which it will pay him interest. The rate of interest will depend on the period of deposit.

A bank often helps a businessman by allowing him to issue cheques for an amount in excess of the funds he has in the account. The latter will have to pay interest on the loan. This service is called an overdraft. It will be reviewed by the bank every year. The bank may increase, decrease or cancel the overdraft facility at its discretion.

Payment for goods imported from a foreign country can be made through a bank. One way to do this is for the buyer to purchase a bank draft for the amount payable. He may request that the bank draft be made payable in the currency of the supplier. The buyer would pay his bank the equivalent amount plus the bank commission in the local currency. Because of these services and many more banks are a great help to businessmen.

Vocabulary

Part II

bank businessman business activity current account commencement to deposit proceeds cheque book bill manager authorised person bookkeeper funds surplus surplus funds fixed deposit account to withdraw depositor interest rate of interest to depend the former the latter to expand bank overdraft to review to cancel currency supplier buyer bank commission facility

an organisation for the safe keeping of money and valuables. a man who is engaged in buying and selling. work relating to buying and selling. an account from which money may be drawn without previous notice. beginning. to put in, to place. income from commercial ventures. a book of blank cheques and counterfoils fastened together. a statement of claim for goods delivered or services rendered. one who controls a business. one who has the power to do something. one whose profession is to keep accounts. money. extra. money in excess of needs. money in a bank account which cannot be taken out over a period of time. to take out. one who puts money into an account. money charged or paid for the use of money belonging to others. percentage of interest paid annually. to rely on. the first of two things or people already mentioned. the second of two things or people already mentioned. to make larger. money borrowed from a bank. to examine again. to cross out. the money used in a country. a person or firm supplying goods. a person who buys. a payment collected by a bank for a service performed. aid or circumstances which make it easy to do something.

Explanations

Part III

1. Current account. This is a bank account which enables a customer to make payments by means of cheques. Interest is not paid on money deposited in such an account. In fact a service charge may be levied if the monthly balance in the account is not up to a specified minimum.

2. Sales proceeds. This is money collected from sales at the shop.

3. Fixed Deposit Account. This is a bank account into which a customer can deposit a sum of money for a fixed period of time in return for interest. Generally, the longer the period of deposit, the greater will be the rate of interest.

4. Overdraft. This is one way of borrowing money from a bank. The borrower is permitted by the bank to issue cheques for an agreed amount in excess of his funds, for a specified period. Interest is payable by the borrower and it is calculated on a daily basis for the amount overdrawn.

Exercises

I Answer the following questions.

1. What type of bank account will the owner of a company open on commencement of a business?

2. What will the manager of a company deposit into the Current Account?

3. How will the company pay its bills?

4. Who will check the correctness of each bill?

5. What can a manager do with surplus funds?

6. How does a bank often help a businessman?

II Give the meanings of the following words.

1. Commencement. 2. Surplus. 3. To withdraw. 4. To depend. 5. To expand.

III Give the word that fits the description.

1. An organisation for the safe keeping of money and valuables.

2. Work relating to buying and selling.

3. Income from commercial ventures.

4. One who has the power to do something.

5. Money charged or paid for the use of money belonging to others.

6. To examine again.

7. To cross out.

8. The money used in a country.

9. Aid or circumstances which make it easy to do something.

Conversation at the bank

Part I

Mr Smith. Good morning. Could I purchase a bank draft?

Bank Clerk. Yes, certainly.

Mr Smith. A bank draft for two hundred American dollars, please.

Bank Clerk. Please fill in this form.

Mr Smith. How much do I have to pay in pounds?

Bank Clerk. At today’s rate of exchange it will be one hundred and twenty

two pounds.

Mr Smith. Thank you. What should I do with the bank draft?

Bank Clerk. You should keep the duplicate for your reference and post the

original to your friend in San Francisco.

Mr Smith. How will he use the bank draft?

Bank Clerk. He will deposit it into his account.

Mr Smith. When will he be able to get his money?

Bank Clerk. A day or two after he presents the bank draft.

Mr Smith. How is this possible?

Bank Clerk. Our bank has a branch in San Francisco. His bank will therefore

be able to verify the bank draft almost immediately with our

branch.

Mr Smith. How should I send this bank draft?

Bank Clerk. For extra safety, it’s best that you post it by registered mail.

Mr Smith. Thank you for your advice. Now can I cash the cheque?

Bank Clerk. Please present it to the teller over there.

Mr Smith. Good morning. Can I cash this bearer cheque for me?

Teller. Yes, of course.

Mr Smith. Could I have ten pound notes and some coins, please.

Teller. Certainly.

Mr Smith. What are your rates of interest for fixed deposits?

Teller. The current rates are 4% for 6 months and 5% for a year.

Mr Smith. Where can I get the application form?

Teller. Please see the clerk over there.

Mr Smith. Thank you.

Vocabulary

Part II

to purchase bank draft to fill up rate of exchange duplicate original cheque to present branch registered mail advice teller bearer cheque to endorse account deduction to sign to verify

to buy. a special cheque which can be bought from a bank. It can be used for making a payment. to make entries. relationship between the currencies of two countries. a copy of the original. the first. a written order to a bank to pay money to a named person or organisation. to hand over. a subdivision of an organisation. letters sent by special postal service. an opinion on what to do. a person who receives and pays out money over a bank counter. a cheque which can be cashed by the person presenting it to the bank. to write one’s name at the back of a cheque. a statement of money used. an amount taken away. to write one’s signature. to test the truth of.

Explanations

Part III

1. A bank draft is a cheque drawn on a bank. Personal cheques are sometimes unacceptable to creditors. A bank draft can then be used. As the debtor pays the bank to purchase it, it is a safer form of payment.

2. The rate of exchange is the value of one currency in terms of another.

3. A cheque may be defined as a bill of exchange drawn on a banker and payable on demand. It is an order written by the drawer (owner of the account) to a banker to pay a specified amount of money to the payee (the person or the people named in the cheque). To be able to draw a cheque the drawer must maintain a Current Account in that bank. The drawer has to fill up the cheque by naming the payee and the amount he is to be paid. He must also date the cheque and sign it.

4. A bearer cheque is a cheque payable to the bearer (one in possession of it). The possession of the cheque gives him the right to payment without formalities. A bearer cheque which is uncrossed can be cashed over the counter of the issuing bank without having to be endorsed (to write one’s name on the back of the cheque) by the person presenting it. An order cheque is one in which the word bearer has been cancelled and the word order remains. The endorsement of an order cheque is required unless it is paid into the payee’s own account. The payee can renounce his interest in an order cheque by endorsing it. He can then use it to pay a debt of his own to another person. Restrictions on the negotiability of the cheque can be placed by the use of special crossings. This is a precaution to make a cheque safer, e.g. A/C Payee Only.

5. Rate of interest. Interest is a payment made by a borrower to a lender for a sum of money lent for a period of time. The rate of interest is a price which is determined by the supply and demand of funds. Generally, the greater the risk (as with unsecured loans), the higher will be the rate of interest.

Exercises

1. Answer the following questions.

1. What did Mr Smith purchase at the bank?

2. What was Mr Smith advised to do with the duplicate of the bank draft?

3. What was the value of the bank draft in American dollars?

4. Which city was Mr Smith remitting money to?

5. What was Mr Smith advised to do with the bank draft for extra safety?

6. What were the rates of interest for fixed deposits?

7. Why is a bank draft a safer form of payment?

8. How can a cheque be defined?

9. What must a drawer have in the bank to be able to draw a cheque?

10. What kind of bearer cheque can be cashed over the counter of the issuing bank without having to be endorsed by the person presenting it?

11. When is the endorsement of an order cheque required?

12. What kind of price is the rate of interest?

2. Give the meanings of the following words.

1. Duplicate. 2. Original. 3. To present. 4. Advice.

3. Give the word that fits the description.

1. A written order to a bank to pay money to a named person or organisation.

2. A sudivision of an organisation.

3. A person who receives and pays out money over a bank counter.

4. An amount taken away.

5. To test the truth of.

Lesson 2

Types of companies

Part I

When a person wants to go into business, he has to form a company. If he is alone in the venture, he will be called a sole proprietor. The capital of the business will have to be contributed by him. Sole proprietors are usually the owners of small shops. They can be tailors, grocers or booksellers.

Sometimes two or more people want to operate a business jointly as partners. They will contribute the capital in equal parts or in an agreed proportion. The profits or losses will be shared in the same proportion. In a partnership, each partner depends on the other for capital or skill. Lawyers and doctors often enter into partnerships.

A private company may be owned by a few shareholders who will enjoy the protection of limited liability. The liability of each shareholder is limited to the amount of capital invested by him. His private property cannot be claimed by the creditors of the company. Family businesses are usually registered as private companies. A private company belonging to Mr Smith and his family could be called Smith Trading (Private) Limited.

Companies requiring a great deal of capital may form a public company. They can raise money by selling shares to the public. Such a company must have a minimum of seven shareholders but no maximum is fixed. With its vast financial resources, it can engage in production on a large scale. Share certificates are issued to the shareholders to enable them to prove their ownership of shares. If Mr Smith’s company grows to become a public company, it can be called Smith Trading Limited.

Vocabulary

Part II

to form venture sole proprietor to contribute to operate proportion to raise money share public share certificate to issue shareholder ownership public company capital to limit private property claim creditor vast

to organise. business. a person who owns a hotel, store, land etc. to give money, help etc. to manage. portion. to manage to get it. one of the equal parts of a company’s capital which entitles the owner to part of the profits. people in general. a document proving ownership of shares in a company. to give out something. an owner of shares in a company. possession. a company which must have at least 7 shareholders. It can raise capital by selling its shares to the public. money with which a business is started. to restrict. property belonging to an individual, e.g. his house, car, savings etc. a sum of money demanded for loss. a person to whom money is owed. immense.

Explanations

Part III

1. The sole proprietor often runs a small business. It is a business that is managed solely by one person. He provides the capital and bears all the risks. There are some advantages in this type of a business unit. The self-interest of the owner will make him work efficiently. He can give personal attention to all aspects of the business and take decisions quickly. The disadvantages include too much dependence on one man. His capital may be small and the expansion of the business will not be rapid. He will be responsible for all the debts of the company.

2. Capital. This word has several definitions. In this lesson it has the same meaning as that of money. It can also be described as wealth used in the production of further wealth. If we want to be more specific, capital consists of machinery, tools, factory buildings, raw materials, partly finished goods and means of transport. Economists consider that capital can be produced by the use of factors of production. These factors are land, labour and capital.

3. Partnership. Like a proprietorship, a partnership is a business unit. Two or more people, called partners, subject to the maximum of twenty, can form it. The partners share the responsibility of managing the business but their share of the profits (or losses) will be proportionate to their capital contribution. A partnership has many of the advantages of a proprietorship. In addition it has greater continuity of existence, for if one partner dies, the others can continue the business. There will also be a greater pool of capital and skills for the use of the partnership.

4. Private company. This is a company whose members enjoy limited liability. A minimum of two and a maximum of fifty shareholders can form such a company. Shareholders cannot dispose of their shares without the consent of the other shareholders. The company cannot invite the public to buy its shares. It is not required to publish its balance sheet for public information.

5. Limited liability. The shareholder of a private as well as a public limited company is liable to its creditors. He is liable to the extent of his capital invested in the paid-up shares. If he owns shares which are partly paid-up, then his liability is limited to the amount outstanding on those shares. British Companies were first granted limited liability protection in 1720. By 1825 the protection was extended to all registered companies. This was the most important factor in the development of the company as a business unit. Prior to this people hesitated to invest in such companies.

6. Share Certificate. This is a certificate issued to a shareholder under the seal of a company, showing his ownership of shares in the company.

7. Public company. A public company is a business unit like a proprietorship and a partnership. It must have a minimum of seven shareholders but there is no limit as to the maximum number. It can make public issues of shares to raise capital and therefore can conduct business on a large scale. Its shares can be bought and sold on the stock exchange.

8. To operate a business. To operate is to manage. It also means to cause to work and to be in action.

The company operates two factories.

John operates the printing press.

The noise of machinery that operates here is deafening.

Exercises

1. Answer the following questions.

1. What does a person have to do when he wants to go into business?

2. What is a person called if he is alone in a business?

3. What are two people called if they jointly operate a business?

4. What kind of protection do the shareholders of a private company enjoy?

5. What is the liability of a shareholder in a private company?

6. What minimum number of shareholders is required to form a public company?

2. Give the meanings of the following words.

1. Venture. 2. To issue. 3. Capital. 4. Creditor. 5. To limit.

3. Give the word that fits the description.

1. To manage to get. 2. People in general. 3. An owner of shares in a company. 4. A sum of money demanded for loss. 5. To give money, help etc.

4. Match the two parts of the sentences.

1. Companies requiring a great deal of money…

2. Share certificates are issued to the shareholders…

3. The sole proprietor provides the capital…

4. Capital can also be described as wealth…

5. Shareholders cannot dispose of their shares…

________________________

1. … used in the production of further wealth.

2. … without the consent of the other shareholders.

3. … may form a public company.

4. … to enable them to prove their ownership of shares.

5. … and bears all the risks.

5. Ask your fellow-student.

1. what kind of business the sole proprietor often runs.

2. what capital consists of.

3. whether he knows the factors of production.

4. when British companies were first granted limited liability protection.

6. Fill in the blanks.

The sole proprietor enjoys certain _____ . He can give personal _____ to all aspects of the business and take _____ quickly. The disadvantages include too much _____ on one man. His capital may be small and the _____ of the business will not be rapid.

Conversation about companies

Part I

Mrs Smith. Can you tell me something about different types of

companies?

Mr Smith. Yes, dear. First of all there are individuals in business and they

are called sole proprietors.

Mrs Smith. What about partnerships?

Mr Smith. When two or more people agree to own a business they form

a partnership.

Mrs Smith. What do they have to do?

Mr Smith. They have to contribute towards the capital and share the

responsibilities of the business.

Mrs Smith. What types of businesses are partnerships?

Mr Smith. Private clinics and lawyers’ firms are often partnerships.

Mrs Smith. What is a private company?

Mr Smith. It’s usually a small company formed by businessmen who wish

to limit their liability.

Mrs Smith. What is a public company?

Mr Smith. It is a large company that is owned by the public.

Mrs Smith. Who manages a public company?

Mr Smith. A board of directors and their executives manage it.

Mrs Smith. How does a board of directors work?

Mr Smith. The directors act at a board meeting; they will discuss

important company matters and take decisions.

Mrs Smith. Who carries out the decisions?

Mr Smith. This is done by the executives of the company.

Mrs Smith. Who assists the executives?

Mr Smith. The administrative staff and other workers in the office and

factory assist them.

Mrs Smith. How many shareholders are required to form a public company?

Mr Smith. Only seven shareholders are required.

Mrs Smith. What is a share certificate?

Mr Smith. It is a certificate which helps shareholders to prove their ownership of shares.

Mrs Smith. What is one of the greatest advantages of forming a public company?

Mr Smith. In my view, it is its ability to engage in production on a large

scale.

Vocabulary

Part II

type individual sole partner partnership responsible responsibility limited liability company liability executive director to manage meeting board of directors to decide to carry out to produce to engage private clinic lawyer

one of a group. a single member of a category. only, single. one of the owners of a business. a business owned by partners. answerable for something. duty. a company whose shareholders are responsible for its debts, each being liable only up to the amount he has paid in as his capital. debts. a senior employee who carries out the decisions of a company’s directors. a member of the board of directors of a company who manages the affairs of the company. to control. coming together of a number of people. a group of people controlling a business. to make up one’s mind. to put into practice. to manufacture; to create. to take part in. a small privately owned hospital. a person who practises law.

Explanations

Part III

1. Board of directors. This is a committee of directors elected by the shareholders of a limited company. They make policy decisions. Some directors serve full time and take charge of a particular branch of activity. Other directors may serve part-time. They are paid directors’ fees.

2. Director. It is the practice for the shareholders of a company, acting under the regulations of the company, to select a few people to administer the affairs. These representatives are called directors. Directors are agents of the company, and are therefore subject to the general principles of the law of agency. Directors are in a sense trustees and must therefore exercise their powers for the benefit of the company. A director shall at all times act honestly and use reasonable diligence in the discharge of his duties.

3. Executive. A person who has administrative or managerial authority in a business or commercial organisation.

4. Liability. To be liable is to be responsible according to law. Liability refers to the state of being liable.

John is liable to pay customs duties.

James is liable for military service.

Jack did not admit liability for the accident.

Jill is more of a liability at parties than an asset.

5. To manage a public company. To manage is to control.

She has to manage a yacht.

She also manages a business.

During the day she manages her household.

Management refers collectively to all those concerned in managing an industry, enterprise etc.

The company requires stronger management.

Talks commenced between the workers and the management.

A manager is one who controls a business. Managerial is an adjective as in the managerial class of people.

6. To take decisions. To take here means to select or pick out a suitable decision. The word has numerous meanings and it is interesting to note how widely it is used. Here are only a few examples. Reference may be made to a good dictionary for other examples.

To take a back seat – to play an unimportant role.

To take advantage of – to use to one’s benefit.

To take apart – to divide into component parts.

To take heart – to cheer up.

To take smb. on – to oppose in a competition.

To take over – to assume control.

To take smth. down – to dismantle.

7. Administrative. To administer is to look after business affairs, a houshold etc., whereas to administer a state is to govern it. Administrative is the adjective from this word.

An administrative position.

Deficient in administrative skill.

An administrator is a person who administers; he is one with ability to organise. Administration is the management of affairs, business etc., especially public affairs, government policy etc.

8. Staff. The word describes a group of assistants working under a manager.

The manager and his staff were present.

It is an honour to be on your staff.

The word can be used as a collective noun with a singular verb.

The staff of administrators was ready to help.

9. To engage in production. To produce is to manufacture.

They produce tinned milk powder.

Let’s produce more goods for export.

A product is sometimes produced by nature or by man.

Agricultural product.

Main products of Ireland.

Products of a genius (e.g. great works of art).

Production is the process of producing.

The present production of crops is insufficient.

The government stepped up the production of guns.

Mass production is necessary to meet the demand.

10. On a large scale. Scale means a relative size or extent.

This is a war on a large scale.

Large scale movement of troops was noticed.

Exercises

1. Answer the following questions.

1. What are the obligations of partners?

2. What protection does a private company offer a businessman?

3. Who manages a public company?

4. What does a board of directors do?

5. What is a share certificate?

2. Give the meanings of the following words.

1. Liability. 2. Board of directors. 3. To produce. 4. To engage. 5. To manage.

3. Give the word that fits the description.

1. Only, single. 2. One of a group. 3. Coming together of a number of people. 4. To make up one’s mind. 5. Answerable for something.

4. The word “to take” has a lot of meanings and it is interesting to note how widely it is used.

Give the meanings of the following word combinations and use them in sentences of your own.

Look them up in a dictionary.

1. To take breath. 2. To take steps. 3. To take aim. 4. To take into account. 5. To take offence. 6. To take aback. 7. To take after. 8. To take off. 9. To take the floor. 10. To take up (history, foreign languages).

Lesson 3