The Language of Small Business Texts and Vocabulary Training (for students of Economics) Part 1. Учебное пособие

Franchises

Royalty – money paid to the owner of a patent for permission to use a patented design usually at an agreed percentage of the selling price of the product.

Levy: n. – the amount of tax collected. v. – to collect a tax.

Enterprise – the quality (in a businessman) of commercial energy and daring, and a willingness to take financial risks. It is considered by many economists to be one of the factors of production, along with land, labour and capital.

Return, fin. – the gain from an investment, either as income or yield or as profit on the sale of the investment.

Goodwill:

1.com. – the advantage possessed by an established business over a new business. The attractive force that brings in customers.

2.law. – the right to use and to profit from the established name and connections of a business.

3.fin. – the capital value of an intangible asset, that is the right to receive the extra profits which an established business may be expected to earn, over and above the normal earnings for a similar business.

Clear, v.:

1.com. – of goods – to sell off, get rid of, «To clear» – for sale at a cheap price to get rid of old stock.

2.To dear one's costs/expenses – to make neither a profit nor a loss

3.bkg – to clear a cheque – to pass it through a clearing house.

Clearing House, bkg. – the London Bankers' Clearing House – an association formed by the larger commercial banks to carry out the process of sorting and exchanging cheques and drafts and settling differences at the end of the day by cheque drawn on the members1 accounts at the Bank of England.

Solicitor, law – a lawyer, especially in England, who after a period of training in law office and after passing the examinations of the Law Society, has been made an officer of the Supreme Court. He thus

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becomes a member of that branch of the legal profession that is alone qualified to be a legal adviser to clients, to act for them in cases in the civil and criminal courts, to represent them personally in the lower courts, and to prepare cases for barristers in the higher courts. Solicitors attend to a variety of other legal matters such as preparing wills, admistering estates and trusts, conveyancing (transferring ownership of) land and buildings, forming companies, and drawing up contracts and other legal documents.

Mark up – the amount added to the costs of goods by a seller when figuring selling price; usually expressed as a percentage of the selling price.

Reference, com. – persons or firms named by a customer asking a supplier for credit, from whom the supplier can get information about the business reputation of the customer.

Field force, com. – persons employed by a business to work in areas away from the office, such as travelling salesmen or representatives under a field sales manager.

Lease, law – an agreement in writing by which one person gives another the right to use property, usually for a fixed number of years, in return for either a single sum of money called a premium or a series of regular payments called rent. The person giving the lease is called the lesser, the person to whom it is given is the lessee or tenant.

Audit, accts. – an official examination and checking of the annual accounts of an organization by an independent qualified person, called an auditor, in order to make certain that they show accurately the true financial position and do not hide any dishonesty, and also that they are presented in proper form ordered by law.

Option – a contract by which one party, the giver or holder, gives a small sum of money, the premium or option money, to the other party, the taker, for the right to buy from, or sell to, him a certain quantity of a stated security or commodity during an agreed period, usually three, six or nine months, at an agreed price, the striking price; this price remains fixed during the entire period of the option and allows the giver, who is usually a speculator, to limit his losses and increase his gains according to movements in the market price during the period.

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Break even, v.:

1.in Britain, to be in a situation where income from sales equals the expenses of production, so that neither profit nor loss is made.

2.in USA to earn from sales not only just enough to pay all expenses but also enough for a moderate dividend.

Break-even point – the level of sales at which the income from goods sold is just enough to cover production, neither profit nor loss being made.

Transfer, n. law.:

a the passing of a right of ownership from one person or organization to another, by an intentional act by a transferor as a sale or gift, or as a result of the operation of law, such as bankruptcy or intestacy.

2. a document recording or authorizing such as a change of ownership.

Transfer fee, stk. exch. – a small fee which a company, under the Article of Association, may charge for registering a transfer of stock or shares. It is so small that most companies do not trouble to collect it.

Merchandise, com. — goods, especially manufactured articles, that are intended for sale, not for the personal use of the present owner.

Goods:

1.law & com. – all personal movable property other than money and certain claims to money.

2.any article or commodity that is the subject of manufacture or trade.

3.transp. – things carried by rail; rail freight.

Bargain, n,:

1.An agreement about price: To make/strike a bargain. To drive a hard bargain — to make severe conditions.

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Dutch bargain – a deal in which one side gets all the advantage.

2.Something bought cheap.

3.Something offered at a cheap or specially reduced price.

Bargain, v.:

1.com. – to discuss and agree on a price before making a business deal. Syn.: to negotiate a price.

2.(with «away») to sacrifice as part of a deal

3.(with «on») to depend on

4.(with «for») to expect

Handle, v.:

1.com. – to deal in, as an article of trade

2.to hold or move with hands

3.to attend to, to manage, to deal with a matter.

Definitions of terms

Франшиза:

1.право на создание коммерческого предприятия, предос- тавляемое на определенный период и зафиксированное в договоре. Издержки, связанные с получением Ф., учи- тываются как нематериальные активы;

2.предусмотренное условиями страхования освобождение страховщика от возмещения убытков, не превышающих определенный размер.

Реклама – целенаправленное воздействие на потребите- ля с помощью средств информации для продвижения товаров на рынке сбыта. Она осуществляется в разнообразных фор- мах: объявления в печати, по телевидению, радио, фильмы, плакаты, буклеты, проспекты, каталоги, пресс-релизы.

Опцион:

1.право выбора способа, формы, объема, техники исполнения обязательства, предоставленные одной изсторон условиями

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договора или право отказа от исполнения обязательств при обстоятельствах, обусловленныхдоговором;

2.соглашение, которое предоставляет одной из сторон в биржевой сделке купли-продажи право выбора между альтернативными условиями; эти права приобретаются при уплате премии, размер которой определяется с уче- том риска колебаний цен и курсов.

Предприимчивость – одно из основных качеств бизнесме- на, выражающееся в коммерческой энергии и смелости, в готов- ности взять на себя финансовый риск. Многими экономистами предприимчивость рассматривается как один из факторов произ- водства, наравнесземлей, трудомикапиталом.

Рекомендация, референция – справка о службе, отзыв,

характеристика, даваемая лицу или предприятию другим ли- цом (организацией), пользующимися доверием в деловых кругах; указываются деловые качества и кредитоспособность.

Договор аренды – договор имущественного найма, по которому одна сторона – арендодатель – предоставляет дру- гой стороне – арендатору – имущество во временное пользо- вание за определенную плату; договор может предусматри- вать последующий выкуп арендованного имущества.

Клиринг – система безналичных расчетов путем зачета взаимных требований и обязательств; внутри страны клиринг представляет собой систему безналичных расчетов между банками, осуществляемых через расчетные платы; специально созданные в международных расчетах клиринги осуществля- ются в форме соглашений между государствами о погашении задолженности друг другу, вытекающей из внешнеторговых операций, путем зачета взаимных требований (без уплаты зо- лотом или перевода иностранной валюты).

Vocabulary drill

1.He is promoted senior engineer. I'm afraid his qualifications are not suitable for the job.

2.We have heavy commitments next month.

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3.This is a firm commitment.

4.He is unable to meet his commitments.

5.I have committed myself to lending him money.

6.The company is committed to paying a staff bonus.

7.You are fully committed.

8.Goods imported as merchandise, are not considered as traveller's personal effects.

9.You've got a bargain.

10.They bargained all day about prices.

11.He bargained away his independence in return for a directorship.

12.I am bargaining on your support.

13.We did not bargain for his resignation.

14.We do not handle medical books.

15.We handle spare parts for motor cars.

16.He is handling this problem.

17.I handle only staff matters.

For discussion

1.Why do they say that the first three years of doing business are the danger years?

2.What are the intentions of the seller of the franchise?

3.3- «Safety net of a franchise» is mentioned in the text. What does it mean?

4.What can a business be based on?

5.What are the stages of developing a franchise?

6.Why does the Guide say that mutual suspicion should rule?

7.What are the rights and duties of franchisor?

8.Which of the pluses of a franchise for a franchisee do you consider to be most important?

9.Will you dwell on the first of the minuses mentioned?

10.Minus 8. Why is it a minus?

11.Why is it important for a franchisee that the franchisor is effective in marketing and purchasing?

12.What are the types of fees the franchisee has to pay? How much is each?

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13.Why is it pointed out that low service fee is not necessarily an advantage?

14.What is the purpose of making an advertising levy?

15.Why may raising money for buying a franchise be easier than for an average start-up?

16.Is territory one of the main issues in a franchise? Why?

17.How important for a franchisee is the operations manual provided by a franchisor?

18.What are the commitments of the franchisor in what is called “on-going support and supervision”?

Summary

1.Основное преимущество покупки франшизы в качестве исходного момента предпринимательства состоит в том, что большинство проблем начинания уже отставлены в сторону. Это означает, что у вас большие шансы выжи- вания, нежели при открытии бизнеса с нуля самому.

2.Основные недостатки состоят в том, что вы теряете неза- висимость в силу обязательств перед продавцом фран- шизы; также вы теряете возможность получать очень вы- сокие доходы, поскольку доходы должны быть поделены между вами и продавцом франшизы.

3.Воспользуйтесь пошаговыми рекомендациями при выборе франшизы; этопоможетвамотделитьхорошееотплохого.

4.Продавец франшизы обязан оказывать поддержку и по- могать развиваться в течение всего периода действия франшизы.

5.Вследствие неопределенности насчет того, что может случиться в конце начального оговоренного срока дей- ствия франшизы, ваше решение купить ее или нет должно опираться только на начальный период.

6.Пользуйтесь услугами своих собственных консультан-тов – банка, адвоката, бухгалтера – и проводите свое собственное исследование финансов, рынка, товара, продавца франши- зы, территории действия и детальных условий франшизы. Нестоитполагатьсянасловапродавцафраншизы.

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UNIT 4.

The Right Name

At an early stage in your planning, the question will come up: 'What am I going to call my business?' or 'What am I going to call my product?'. You may be tempted to spend a couple of minutes and then plump for your own name or your initials, and move on to other more important planning tasks. But this would be a mistake.

Choosing a name is a long-term decision, which is all wrapped up with working out what you are trying to sell and identifying why customers will buy from you rather than your competitors. Your company or product name should encapsulate a message to potential or existing customers. This will not happen overnight; it takes many years to build up a name to carry the message you want. But one thing is for sure, you cannot change horses mid-stream. The name you plump for now should be the name you still have in five, ten years' time.

Choosing a Name

Before you start the search for a name, there is quite a lot of background thinking you need to do about your marketplace, your competitors and your product.

Why do People buy from you?

If you analyse why people buy a particular product or service, the list might include things like:

•it is cheaper;

•the product has a special feature which others do not have;

•the service is near by and is very convenient;

•its running costs or maintenance are less;

•there is 24-hour-guaranteed service.

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These are all rational reasons, capable of proof. If your product or service has one feature, or more, which are like this you have a primary benefit. You may be able to achieve your sales on this alone.

The list of reasons why people buy a product might also include things like:

•it is better;

•it looks good;

•the quality or the service is high;

•it is believed to be very reliable;

•it is better value for money;

•the design is excellent.

These are all emotional reasons, which may be real or imagined. But they reflect how customers feel about a product.

A combination of the emotional and the rational reasons gives a product its reputation (or brand image).

How does your Product Rate?

Your product or service may have some unique element; if so, you are probably unusual. The chances are that there is nothing that is much different or better about what you are going to do than your competitors. But that does not mean you will not be more profitable, make more sales and get a bigger share of the market than someone with a product which does have unique features.

Creating a 'good feeling' among buyers about your product can give you a better general reputation, can make you better thought of and more widely known. Giving your business an identity can make you successful.

However, creating an image of quality and reliability for a utilitarian product can lead to a downfall if your product or service does not live up to it. The product must be good, if it is not the best; the service must be reliable, if not the most reliable.

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Where does Name come in?

You want to get the name of your business or product into the position that it summarizes all the emotional and rational feelings about the product. So, if a potential customer hears the name, it instantly gives a good connotation. On day one of your business, this will not happen. You must plan carefully to achieve it over a number of years.

Your first step is to select a name which does not, by itself, cause any feeling of antipathy. Ideally, the name on its own should give a clue to your image, but this is a counsel of perfection. You should at least aim for the name to generate neutral feelings in the early stages, until you have built the image from scratch.

One Name or Two?

Should your business and product share the same name? There is no clear-cut answer to this one, and for a small business it may not be very important. You will not have the resources to create two brand images, one for the product and one for your business. In any case, it could be confusing. So, even if you do have separate names for the two, you will be promoting only one.

If I’m selling to Induxtry, do I Bother with Image?

Yes. You may be selling to a buyer from an industrial firm but, with the other hat on, the buyer is also a normal human being. This means that he or she will probably have the same amount of prejudices as a member of the general public buying soap. It is as important to create a good feeling about your product with an industrial customer as with a domestic one.

If my Product Has a Unique Feature, do I have to Bother with Image?

Yes. You may have some original feature, but once you have launched it on the market, your competitors will be beavering away to make sure that it does not stay unique for very long. And,

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