new_insights_into_business_studen

CODE NAME: 'CONGENBILL', EDITION 1994

- • Shipper

TRANSEA & Co .

-# Consignee

ASIAN GOODS IMPORTING EMPORIUM

Notify Address

Unit 18, Walterstown

Industrial Estate, Dover

BILL OF LADING

TO BE USED WITH CHARTER PARTIES

B/L.No. 689381

FREIGHT ADVANCE

Received on account of freight:

Paid

Freight payable at

the Vessel for carriage to the Port of Discharge or so near thereto as she may safely get the goods specified above. Weight, measure, quality, quantity, condition, contents and value unknown.

IN WITNESS whereof the Master or Agant of the said Vessel has signed the number of Bills of Lading indicated below all of this tenor and date, any one of which being accomplished the others shall be void.

FOR CONDITIONS OF CARRIAGE SEE OVERLEAF

Place and date of issue

The future

Practice

Import Export

Match the parts of the bill of lading opposite with the descriptions below.

1 The date of the contract between the exporter and the shipping company, a

2The name of the importer.

3Details of the goods.

4The name of the ship.

5Money paid to the shipping company before the journey.

6The place where the goods are unloaded.

7The name of the shipping company.

8The place where the goods are loaded.

LanguageFocus

Which sentence below refers to

1a future fact?

2a prediction not based on present evidence?

3a degree of probability or certainty?

4a decision made now?

5something decided before, an intention?

6a prediction based on present evidence?

aIs it urgent? OK, I'll do it right now.

bNext year, we're going to start exporting to Japan.

cHis overseas trip will be a success.

dExports are slowing down; there's going to be a recession.

eThe market will definitely be there in a few years.

fThis company will be 100 years old next year.

••For more information on will and going to, turn to page 167.

Complete this dialogue between Steve, an export manager, and Bob, his agent in Australia, using will or going to and the verbs in brackets.

Steve: Hello Bob, I'm phoning to check a few things with you about my trip next

Steve: Well, we've had a few problems here in the European office so I've decided to

unit nine

Describing

trends

Practice

Finland's paper exports to Japan

markkaa (millions)

1400

What's an

annual report?

An annual report is prepared by the management of a company whose stock is traded publicly. It discusses the company's financial affairs. An annual report performs a useful function in a free market system, transmitting information from the company to its shareholders and investing public. Although the report is addressed to shareholders, other people who have a stake in the business - stakeholders such as employees, suppliers, customers, and lenders - will find it informative.

unit ten

Reading

I Read the text and match the headings to the paragraphs.

SEC-required elements include:

reporfc. This summary by independent

public accountants shows whether the financial statements are complete, reliable, and prepared consistent with generally accepted accounting principles (GAAP).

2 Reporfc. of manexae.rcAr\L This letter, usually from the

board chairperson and the chief financial officer, takes responsibility for the validity* of the financial information in the annual report, and states that the report complies with SEC and other legal requirements.

3 These provide the complete numbers for the

company's financial performance and recent financial history. The SEC requires:

• Statement of earnings*

The statement of earnings shows how much revenue a company brings into the business, and the costs and expenses associated with earning that revenue during that time.

• Statement of cash flows*

The statement of cash flows reports the flow of cash into and out of a company in a given year. Cash is a company's lifeblood*. Cash includes currency and deposits in banks.

Cash equivalents are short-term, temporary investments that can be quickly and easily converted to cash.

• Statement of financial position*

The statement of financial position reports a company's financial status at a set date. The statement is like a snapshot* because it shows what the company is worth at that set date. The statement shows:

•what the company owns (assets)

•what the company owes (liabilities)

•what belongs to the owners (stockholders' equity)

4 This information summarizes a company's

financial condition and performance over five years or

longer, including gross profit and net earnings (net income).

5 This series of short, detailed reports

discusses and analyzes the company's performance. It covers results of operations, and the adequacy* of resources to fund operations.

Optional elements include:

6. This list gives the names and position titles of the company's board of directors and top management team. Sometimes companies include photographs.

7This information covers the basics - the

company's headquarters, the exchanges on which the company trades its stock, the next annual stockholders' meeting, and other general stockholder service information. It is usually in the back of the annual report.

8 This may be from the chairperson of the

board of directors, the chief executive officer, or both. It can provide an analysis and a review of the year's events, including any problems, issues, and successes the company had. It usually reflects the business philosophy and management style of the company's executives, and it often lays out* the company's direction for the next year.

9Some consider this an advertisement for the company. However, it almost always reflects how a company sees itself, or how it would like others to see it. Here, the company can explain itself to the stockholders, using photographs, illustrations, and text. It may cover the company's lines of business, markets, mission*, management philosophy, corporate culture, and strategic direction.

10Probably the most often-read section of any annual report, these give a quick summary of a company's performance. The figures appear in a short table, usually accompanied by supporting graphs.

International Business Machines

Guide to UnderstandingFinancials

Validity: correctness

'statement of earnings (US): profit and loss account (GB) 'statement of cash flows (US): cash flow statement (GB)

*lifeblood: the essential item

'statement of financial position (US): balance sheet (GB)

*a snapshot: information that quickly shows a situation at a point in time

'adequacy: sufficiency, whether there is enough

'to lay out: to present

*a mission: the aim of an organisation

a director

a chief executive officer a stockholder

a chief financial officer

5a chairperson

6an auditor

ahas bought shares in the company

bis in charge of the board

cis a member of the board

dis an outside financial specialist

eis responsible for finance

fis responsible for all operations

Statement of financial position

6anything with money value that a company owns

7 a company's debts

Selected Financial Data

8the difference between a company's total sales and costs of sales

9a company's total revenue minus total expenses, also known as 'the bottom line'