Curs Engleza Anul II IDD

Suport de curs Limba engleza
Anul II
CONTENTS
Chapter 1: MARKETING ....................................................... 12

Chapter 2: PROMOTION ....................................................... 19
Chapter 3: PRODUCTS .......................................................... 29
Chapter 4: PRICES AND TERMS OF PAYMENT ............... 40
Chapter 5: DISTRIBUTION ................................................... 46
Chapter 6: THE BANKING ENVIRONMENT ..................... 54
Chapter 7: FINANCIAL STATEMENTS .............................. 66
Chapter 8: TAXES AND TAXATION ................................... 82
Chapter 9: THE STOCK EXCHANGE .................................. 92
Key to the exercises ................................................................ 99
2
GHID DE UTILIZARE A MANUALULUI DE STUDIU
Introducere
Prezentul manual de studiu reprezintă o sinteză a conţinutului

disciplinei Limba Engleza, care este comună învăţământului la
forma de zi şi la forma de învăţământ la distanţă, conform
planurilor de învăţământ în vigoare.
El este destinat studenţilor de la forma de învăţământ la

distanţă (ID) şi constituie materialul bibliografic minim necesar
pentru parcurgerea, însuşirea şi evaluarea disciplinei
respective.
Manualul este structurat în conformitate cu standardele şi

procedurile de uz larg în învăţământ naţional şi internaţional,
care se adresează învăţării individuale pe baze interactive.
Parcurgerea manualului, pe baza prezentelor instrucţiuni
asigură reţinerea informaţiilor de bază, înţelegerea fenomenelor
fundamentale şi aplicarea cunoştinţelor dobândite la rezolvarea
unor probleme specializate.
Manualul este structurat pe teme de studiu. Tema de studiu

reprezintă o parte omogenă din componenţa manualului,
caracterizată de un număr limitat de termeni de referinţă
(cuvinte-cheie), care poate fi parcurs şi însuşit printr-un efort
continuu de concentrare intelectuală care să nu depăşească 1-4
ore (intervalul se referă la conţinutul de idei al modulului de
studiu şi nu ia în calcul întrebările recapitulative, temele pentru
acasă, testele de autoevaluare sau pe cele de evaluare).
Fiecare unitate de studiu are o structură proiectată din

perspectiva exigenţelor autoinstruirii.
3
Rezultatele efective ale utilizării manualului se vor suprapune
pe rezultatele aşteptate doar cu condiţia respectării întocmai a
procedurii de parcurgere a modulelor de studiu, procedură care
este prezentate în cele ce urmează.
Procedura de învăţare în sistem de autoinstruire
Utilizarea manualului de studiu individual se face pe baza unui

program de autoinstruire.
Recomandăm câteva reguli de bază în procedura de realizare a

programului de autoinstruire pe baza manualului de faţă:
1. Temele de studiu se parcurg în ordinea în care sunt

prezentate în manual, chiar în cazul în care studentul apreciază
că ar putea ”sări” direct la o altă unitate de studiu. Criteriile şi
modalitatea de ”înlănţuire” a modulelor de studiu sunt
prezentate la fiecare modul de studiu şi ele trebuie respectate
întocmai, sub sancţiunea nerealizării la parametrii maximali a
programului de autoinstruire;
2. Fiecare modul de studiu conţine şi un test de evaluare şi/sau

temă pentru acasă pe care studentul trebuie să le realizeze, cu
scopul evaluării gradului şi corectitudinii înţelegerii
fenomenelor si proceselor descrise sau prezentate în modulul
de studiu;
3. Întrebările de autocontrol, testele de evaluare sau tema

pentru acasă nu sunt de perspicacitate, deci nu trebuie rezolvate
cotra cronometru;
4
4. Ordinea logică a parcurgerii unităţii de studiu este
următoarea:
(a) se citesc obiectivele şi competenţele modulului de studiu

(b) se citesc termenii de referinţă (cuvintele cheie)
(c) se parcurg ideile principale ale modulului sintetizate în
rezumat
(d) se parcurge conţinutul dezvoltat de idei al modulului
(e) se parcurge bibliografia recomandată
(f) se răspunde la întrebările recapitulative, revăzând, dacă este
necesar, conţinutul dezvoltat de idei al modulului
(g) se efectuează testul de autoevaluare ţi se verifică, prin
confruntare cu răspunsurile date la sfârşitul manualului,
corectitudinea răspunsurilor
(h) se efectuează testul de evaluare şi/sau tema pentru acasă
sau de control (după caz)
OBS.: Este recomandabil ca, înainte de efectuarea testelor de

autoevaluare, să se facă o pauză de 30 de minute sau o oră. De
asemenea este recomandabil ca la fiecare 2 ore de studiu să se
facă o pauză de 30 de minute.
5. Nu este recomandabil să se parcurgă mai mult de un modul

de studiu pe zi, pentru a nu se periclita însuşirea temeinică şi
structurală a materiei. În funcţie de necesităţile şi posibilităţile
de studiu ale studentului, studiul unui modul poate fi fracţionat
pe mai multe zile, dedicând cel puţin 30 de minute pe zi
studiului.
TEMA PENTRU ACASĂ (TA) reprezintă un exerciţiu

obligatoriu de reflecţie pentru fiecare temă de studiu. Ea se
constituie într-un instrument indispensabil de studiu individual
necesar însuşirii şi mai ales înţelegerii temei. Rezolvarea ei se
poate face în aprox. 1-2 or2.
5
6
PREZENTAREA MANUALULUI DE STUDIU ŞI A
DISCIPLINEI
Manualul de studiu ”Limba engleza” reprezintă o sinteză

realizată în manieră interactivă a cursului corespondent utilizat
la forma de învăţământ zi.
Conţinutul de idei nu a fost redus ci doar sintetizat, în

principiu, într-o manieră mai accentuat enunciativă, elementele
de detaliu sau de explicaţie redundantă (necesare pentru
atingerea scopului pedagogic al fixării şi corelării
cunoştinţelor) putând fi găsite de către student în bibliografia
de specialitate recomandată.
Obiectul cursului ”Limba engleza”:
Obiectul cursului îl reprezintă prezentarea unui vocabular

specializat din domeniul comercial, precum si a unor notiuni
fundamentale din corespondenta de afaceri.
Obiectivele disciplinei:
Manualul de Limba engleza îţi propune ca obiectiv

cunoaşterea şi însuşirea de către studenţii anului II a unui
vocabular specializat din domeniul comercial, precum si a
uzantelor specifice comunicarii in scris (scrisori/ emailuri) in
limba engleza.
Obiective principale:
(a) formarea unui vocabular specializat necesar intelegerii si

discutarii unor texte din literatura comerciala, presa,
precum si din alte surse.
7
(b) insusirea unor cunostinte de baza pentru comunicarea orala
in mediul de afaceri.
Descrierea structurii manualului:
Manualul este structurat în conformitate cu rigorile

studiului individual (autoinstruire) și este compartimentat în
teme de studiu. Structura fiecărei teme de studiu este
următoarea:
a. Obiective (rezultatele aşteptate ale temei)
b. Competenţele dobândite de student (utilitatea temei

pentru student)
c. Termeni de referinţă (concepte cheie)
d. Structura temei de studiu
e. Rezumatul ideilor principale
f. Conţinutul dezvoltat de idei al modulului
g. Bibliografia recomandată
h. Întrebări recapitulative
i. Teste de autoevaluare, teste de evaluare, teme de casă
8
I. Prezentul manual constituie bibliografia generală
minimală obligatorie pentru studiul disciplinei Limba
Engleza. El reprezintă minimul de informaţie necesară pentru
înţelegerea şi însuşirea noţiunilor fundamentale ale disciplinei.
II. Bibliografia generală complementară:
Studiul ştiinţific al disciplinei impune parcurgerea următoarei

liste de bibliografie românească si internationala:
1. Geffner, A: Business English – A Compete Guide to

developing An Effective Business writing Style,
Barron’s, 2004
2. Bond, A: 300 + Successful Business Letters for All
Occasions, Barron’s, 2005
3. Brieger, N and Comfort, J: Language Reference for
Business English, Prentice Hall International, 1992
4. Stanton, AJ and Wood, LR: Longman Commercial
Communication, Longman, 1992
5. Sweeney, S: Test Your Professional English –
Marketing, Penguin Books, 2002
6. Hollinger, A: Test Your Business English Vocabulary,
Teora, 2004
7. Mascull, B: Business Vocabulary in Use, Cambridge
University Press, 2004
8. MacKenzie, I: English for Business Studies, Cambridge
University Press, 2002
9. Bantas, A, Nastasescu, V: Dictionar economic englez –
roman/ roman – englez, Editura Niculescu, 2001
10. Longman Business English Dictionary, Pearson
Education Limited, 2000
9
III. Pentru realizarea unor studii ştiinţifice, a
temelor pentru acasă, a temelor de control, precum
si pentru aprofundarea disciplinei studentul se va
adresa pentru bibliografie suplimentară tutorelui
de disciplină.
10
11
Chapter 1: MARKETING
I. Objectives:
- to deveop reading skills (reading comprehension)
-to acquire and practice the specialized vocabulary required
for the discussion of marketing-related topics.
II. Specific competencies acquired by the student.

After completing this chapter the student should be able to:
- understand and discuss marketing-related texts
III. Key words: marketing, the marketing mix.
IV. Structure:
1. Marketing vocabulary
V. Summary:
This chapter introduces marketing-related vocabulary.
VI. Content: Marketing
1. Read the following text
Most management and marketing writers now distinguish

between selling and marketing. The ‘selling concept’
assumes that resisting consumers have to be persuaded by
vigorous hard – selling techniques to buy non-essential
goods or services. Products are sold rather than bought. The
‘marketing concept’ on the contrary, assumes that the
producer’s task is to find wants and fill them. In other
words, you don’t sell what you make, you make what will
be bought. As well as satisfying existing needs, marketers
can also anticipate and create new ones. The marketers for
the Walkman, video recorders, videogame consoles, CD
12
players, personal computers, the internet, mobile phones,
mountain bikes, snowboards, and genetic engineering, to
choose some recent examples, were largely created rather
than identified.
Marketers are consequently always looking for market

opportunities – profitable possibilities of filling unsatisfied
needs or creating new ones in areas in which the company
is likely to enjoy a differential advantage, due to its
distinctive competencies (the things it does particularly
well). Market opportunities are generally isolated by
market segmentation. Once a target market has been
identified, a company has to decide what goods or services
to offer. This means that much of the work of marketing
has been done before the final product or service comes
into existence. It also means that the marketing concept has
to be understood throughout the company, e.g. in the
production department of a manufacturing company as
much as in the marketing department itself. The company
must also take account of the existence of competitors, who
always have to be identified, monitored and defeated in the
search for loyal customers.
Rather than risk launching a product or service solely on

the basis of intuition or guesswork, most companies
undertake market research (GB) or marketing research
(US). They collect and analyse information about the size
of a potential market, about consumers’ reactions to
particular product or service features, and so on. Sales
representatives, who also talk to customers, are another
important source of information.
One the basic offer, e.g. a product concept, has been

established, the company has to think about the marketing
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mix, i.e. all the various elements of a marketing
programme, their integration, and the amount of effort that
a company can expend on them in order to influence the
target market. The best-known classification of these
elements is the ‘Four Ps’: product, place, promotion and
place. Aspects to be considered in marketing products
include quality, features (standard and optional), style,
brand name, size, packaging, services and guarantee. Place
in a marketing mix includes such factors as distribution
channels, locations of points of sale, transport, inventory
size, etc. promotion groups together advertising, publicity,
sales promotion, and personal selling, while prices include
the basic list price, discounts, the length of the payment
period, possible credit terms, and so on. It is the job of a
product manager or a brand manager to look for ways to
increase sales by changing the marketing mix.
It must be remembered that quite apart from consumer

markets (in which people buy products for direct
consumption) there exists an enormous producer or
industrial or business market, consisting of all the
individuals and organizations that acquire goods or services
that are used in the production of other goods, or in the
supply of services to others. Few consumers realize that the
producer market is actually larger than the consumer
market, since it contains all the raw materials,
manufactured parts and components that go into consumer
goods, plus capital equipment such as buildings and
machines, supplies such as energy and pens and paper, and
services ranging from cleaning to management consulting,
all of which have to be marketed. There is consequently
more industrial than consumer marketing, even though
ordinary consumers are seldom exposed to it. (English for
14
Business Studies, by Ian Mackenzie, Cambridge University
Press 2004)
2. The marketing mix. Marketing is often defined in terms

of:
Product: deciding what products and/or services to sell.

The word ‘product’ for us can refer to a product or service,
or a combination of these.
Price: setting pries that are attractive to customers and that

are profitable for the company
Place: finding suitable distribution channels and outlets to

reach these customers groups
Promotion: all the activities, not just advertising, used to

support the product – everything from pre –sales
information to after –sales service.
VII. Further reading:

Communication, Longman, 1992, pp. 22-34
Marketing, Penguin Books, 2002, pp. 1-12
Necessary time for study: 3h or 30 min./ day
Revision and consolidation

15
1. What is the marketing mix? What are its elements?
………………………………………………………………
………………………………………………………………
………………………………………………………………
………………………………………………………………
.
Self-assessment tests
1. Here is a definition of marketing. Complete it

inserting the following verbs in the gaps.
design develop identify influence modify persuade
Marketers have to (1) ………………….or anticipate a

consumer need; (2) ……………… a product or service that
meets that need better than any competing products or
services; (3) ………………….target customers to try the
product or service; and, in the long term, (4)
………………..it to satisfy changes in consumer needs or
market conditions. Marketers can (5)
………………….particular features, attractive packaging,
and effective advertising, that will (6)
…………………..consumers’ wants. Marketing thus
begins long before the product or service is put on the
market; it combines market research, new product
development, distribution, advertising, promotion, product
improvement and so on.
2. Match up the words or expressions on the left with

the definitions on the right.
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1. distribution channel a. all the companies or individuals
involved in moving a particular
good or service from the producer to
the consumer
2. to launch a product b. an idea for a new product, which
is tested with target consumers
before the actual product is
developed.
3. market opportunities c. attributes or characteristics of a
product: quality, price, reliability.
4. market research d. dividing a market into distinct
groups of buyers who have different
requirements or buying habits
5. market segmentation e. goods are sold to the public –
shops, stores, kiosks, market stalls,
etc.
6. packaging f. possibilities of filling unsatisfied
needs in sectors in which a company
can profitably produce goods or
services
7. points of sale g. someone who contacts existing
and potential customers, and tries to
persuade them to buy goods or
services.
8. product concept h. collecting, analysing and
reporting data relevant to a specific
marketing situation (such as a
proposed new product)
9. product features i. to introduce a new product onto
the market
10. sales representative j. wrappers and containers in which
products are sold
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3. For each definition choose the correct word or
phrase.
1. The activity of moving goods from the producer to the

consumer.
a. selling b. distribution c. orientation
2. The proportion of the total market which one company
controls.
a. dominion b. market place c. market share
3. To launch a product on the market is
a. when the product is taken off the market b. when a product
is tested before being sold c. when a product is first released
onto the market
4. The complimentary closing of a letter starting Dear Sir or
Madam is
a. Yours sincerely b. Yours faithfully c. Best wishes
5. When the addressee’s name is not known, a letter should
begin with
a. Dear Sir b. Dear Madam c. Dear Sir or Madam
6.The marketing mix consists of
a. product, people, place, promotion b. product, price, place,
promotion c. product, process, place, promotion d.
product, packaging, place, people
7.The correct way to write the following date is
a. 5 November 2008 b. 2008, 5 November c. 5th nov. 2008
(a) The correct way to address a woman whose marital status is
unknown is by
a. Mrs b. Mr c. Miss d. Ms
8.The complimentary closing of a letter starting Dear Mr.
Smith is
a. Yours sincerely b. Yours faithfully c. Best wishes d. See
you soon
9. When the addressee’s name is known, a letter should begin
with
18
a. Dear Sir b. Dear Madam c. Dear Sir or Madam d.Dear Mr.
Johnson
Homework: Think of a product that you bought recently.

Describe it in terms of the 4Ps.
Chapter 2: PROMOTION
I. Objectives:
- to introduce and practise the vocabulary of promotion and
advertising
- to develop speaking skills (to be able to discuss advertising-
related topics)
- to develop reading skills
II. Specific competencies acquired by the student:

After studying this chapter the student should be able to:
- discuss promotion-related matters by using the specific
terminology of the field.
III. Key words: advertising, advertisement, publicity,

promotional tools.
IV. Structure:
3. Promotion, promotional tools, advertising.
V. Summary:
This chapter introduces the vocabulary of promotion and

advertising.
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VI. Content:Promotion
I. Read the following text on promotional tools, paying

attention to the underlined words and expressions. (adapted
from MacKenzie, Ian. English for Business Studies. Cambridge
University Press, 2004)
The basic idea behind the 'marketing concept' - that you make
what you can sell rather than sell what you make - does not
mean that your product will sell all by itself. Even a good,
attractively priced product that clearly satisfies a need has to be
made known to its target customers. During the introduction
and growth stages of the standard product life cycle, the
producer (or importer, and so on) has to develop product or
brand awareness, i.e. inform potential customers (and
distributors, dealers and retailers) about the product's existence,
its features, its advantages, and so on.
According to the well-known 'Four Ps' formulation of the
marketing mix (product, place, promotion and price), this is
clearly a matter of promotion. Since budgets are always
limited, marketers usually have to decide which tools -
advertising, public relations, sales promotion, or personal
selling - to use, and in what proportion.
Public relations (often abbreviated to PR) is concerned with
maintaining, improving or protecting the image of a company
or product. The most important element of PR is publicity
which (as opposed to advertising) is any mention of a
company's products that is not paid for, in any medium read,
viewed or heard by a company's customers or potential
customers, aimed at assisting sales. Many companies attempt to
place stories or information in news media to attract attention
to a product or service. Publicity can have a huge impact on
public awareness that could not be achieved by advertising, or
20
at least not without an enormous cost. A lot of research has
shown that people are more likely to read and believe publicity
than advertising.
Sales promotions such as free samples, coupons, price
reductions, competitions, and so on, are temporary tactics
designed to stimulate either earlier or stronger sales of a
product. Free samples, for example, (combined with extensive
advertising), may generate the initial trial of a new product. But
the majority of products available at any given time
are of course in the maturity stage of the life cycle. This
may last many years, until the product begins to be replaced by
new ones and enters the decline stage. During this time,
marketers can try out a number of promotional strategies and
tactics. Reduced-price packs in supermarkets, for example, can
be used to attract price-conscious brand-switchers, and also to
counter a promotion by a competitor. Stores also often reduce
prices of specific items as loss leaders which bring customers
into the shop where they will also buy other goods.
Sales promotions can also be aimed at distributors, dealers and
retailers, to encourage them to stock new items or larger
quantities, or to encourage off-season buying, or the stocking
of items related to an existing product. They might equally be
designed to strengthen brand loyalty among retailers, or to
gain entry to new markets. Sales promotions can also be aimed
at the sales force, encouraging them to increase their activities
in selling a particular product.
Personal selling is the most expensive promotional tool, and is
generally only used sparingly. As well as prospecting for
customers, spreading information about a company's products
and services, selling these products and services, and assisting
customers with possible technical problems, salespeople have
another important function. Since they are often the only
person from a company that customers see, they are an
21
extremely important source of information. It has been
calculated that the majority of new product ideas come from
customers via sales representatives.
II. Read the following text on advertising and answer the

following questions (source: MacKenzie, Ian. English for
Business Studies. Cambridge University Press, 2004).
Advertising informs consumers about the existence and

benefits of products and services, and attempts to persuade
them to buy them. The best form of advertising is probably
word-of-mouth advertising, which occurs when people tell
their friends about the benefits of products or services that they
have purchased. Yet virtually no providers of goods or services
rely on this alone, but use paid advertising instead. Indeed,
many organizations also use institutional or prestige
advertising, which is designed to build up their reputation
rather than to sell particular products.
Although large companies could easily set up their own
advertising departments, write their own advertisements, and
buy media space themselves, they tend to use the services of
large advertising agencies. These are likely to have more
resources, and more knowledge about all aspects of advertising
and advertising media than a single company. The most
talented advertising people generally prefer to work for
agencies rather than individual companies as this gives them
the chance to work on a variety of advertising accounts
(contracts to advertise products or services). It is also easier for
a dissatisfied company to give its account to another agency
than it would be to fire its own advertising staff.
The client company generally gives the advertising agency an
agreed budget; a statement of the objectives of the advertising
22
campaign, known as a brief; and an overall advertising strategy
concerning the message to be communicated to the target
customers. The agency creates advertisements (the word is
often abbreviated to adverts or ads), and develops a media plan
specifying which media - newspapers, magazines, radio,
television, cinema, posters, mail, etc. - will be used and in
which proportions. (On television and radio, ads are often
known as commercials.) Agencies often produce alternative
ads or commercials that are pre-tested in newspapers,
television stations, etc. in different parts of a country before a
final choice is made prior to a national campaign.
How much to spend on advertising is always problematic.
Some companies use the comparative-parity method - they
simply match their competitors' spending, thereby avoiding
advertising wars. Others set their ad budget at a certain
percentage of current sales revenue. But both these methods
disregard the fact that increased ad spending or counter-
cyclical advertising can increase current sales. On the other
hand, excessive advertising is counter-productive because after
too many exposures people tend to stop noticing ads, or begin
to find them irritating. And once the most promising
prospective customers have been reached, there are
diminishing returns, i.e. an ever-smaller increase in sales in
relation to increased advertising spending.
1. What is the best kind of advertising?

2. Why do most companies use advertising agencies?
3. When a company hires an advertising agency, what are
the roles of both parties?
4. What is a media plan?
5. Why does advertising become ineffective after a certain
point?
23
1.1. Find the terms in the text which mean the following
1. free advertising, when satisfied customers recommend

products to their friends
2. advertising that mentions a company’s name but not
specific products
3. companies that handle advertising for clients
4. a contract with a company to produce its advertising
5. the amount of money a company plans to spend in
developing its advertising and buying media time or
space
6. the statement of objectives of an advertising campaign
that a client works out with an advertising company
7. the advertising of a particular product or service during
a particular period of time
8. a defined set of customers whose needs a company
plans to satisfy
9. the people who choose where to advertise, in order to
reach the right customers
10. choosing to spend the same amount on advertising as
one’s competitors
11. advertising during periods or seasons when sales are
normally relatively poor

Marketing, Penguin Books, 2002.
Teora, 2004
24
developing An Effective Business Writing Style,
Barron’s, 2004
Necessary time for study: 3 h or 30 min./ day
1. What are the main promotional tools that you know?

………………………………………………………………
………………………………………………………………
………………………………………………………………
………………………………………………………………
.
2. What is the difference between advertising and
publicity?
………………………………………………………………
………………………………………………………………
………………………………………………………………
………………………………………………………………
3. What are the main advertising media?
………………………………………………………………
………………………………………………………………
………………………………………………………………
………………………………………………………………
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1. A public notice in a newspaper, magazine or free sheet

whose purpose is to sell a product is a/an
a. commercial b. advertisement c. announcement d.
article
2. An advertising film or message broadcast on television

or on the radio is a/an
a. movie b. account c. campaign d. commercial
3. A person or a company whose job is to develop

advertisements is a/an
a. advertiser b. developer c. director d. marketer
4. ………… plays an important part in the advertising of

goods.
a. packing b. conditioning c. padding d. packaging
5. Which of the following sentences is a good example of a

request?
a. Send me your price list. b. I want you to send me your
price list c. Could you please send me your price list? d.
You must send us your price list.
Assessment tests
1. A …. is an article sold below cost price in order to attract

shoppers.
a. leading loser b. dead loss c. loss leader d. losing leader
2. Kodak is a famous ….
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a. nickname b. brand name c. surname d. namesake
3. The oldest form of advertising is .......

a. by way of mouth b. by word of mouth c. from mouth to
mouth d. from mouth to ear
4. Which of the following sentences is a good example of a

request in English?
a. I would be grateful if you could tell me what your bank
charges for money transfers. b. Tell me what your bank
charges for money transfers. c. You must tell me what your
bank charges for money transfers. d. I would be grateful if
you tell me what your bank charges for money transfers.
5. A natural way of ending a letter of inquiry is

a. I hope I can see you soon b. See you  c. Please answer
immediately d. I look forward to hearing from you.
Homework:
2. Think of one or two well-known companies. Use some of

the terms in this chapter to describe how they promote their
products.
3. Which of the following claims do you agree with and
why?
 Advertising is essential for business, especially for

launching new consumer products.
 Advertising often persuades people to buy things they
don’t need.
 Advertising often persuades people to buy things they
don’t want.
 Advertising does not present a true picture of products
27
 Advertising has a bad influence on children.
Glossary of terms
Advertising= publicitate
Advertisement= reclama
Advertising agency= agentie de publicitate
Advertising media= mijloace publicitare
Advertising campaign= campanie publicitara
Brand awareness= cunoastere a marcii
Brand loyalty= loialitate fata de marca
Brand-switcher= client care schimba des marca
Brief= rezumat, scurta expunere
Commercial= reclama tv sau radio
Coupon= cupon, bon
Free sample= mostra gratuita
Institutional advertising= publicitate institutionala
Loss leader= produs vandut in pierdere in scopul atragerii de
clienti
Marketing mix= mix de marketing
Media plan= plan media
Price reduction= reducere de pret
Product life-cycle= ciclul de viata al produsului
Promotional tool= instrument de promovare
Public relations= relatii cu publicul
Retailer= detailist
Sales representative= reprezentant de vanzari
Sales promotion= promovare a vanzarilor
Sales revenue= venituri/ incasari din vanzari
Target customers= clienti tinta
Word-of-mouth advertising= publicitate din om in om
28
Chapter 3: PRODUCTS
I. Objectives:
- to develop reading skills (reading comprehension)
- to introduce and practice a product-related vocabulary

- discuss marketing problems by using the specific terminology
of the field, especially in relation to different types of products.
III. Key words: product, brand, brand image, brand awareness,

brand loyalty, brand identity
IV. Structure:
3. Specialized vocabulary (products)
V. Summary:
This chapter introduces the vocabulary necessary for
discussing product-related topics.
VI. Content: Products
I. Read the following text paying attention to the

underlined words and expressions (see the glossary of terms
at the end of this chapter).
1. Marketing theorists tend to give the word product a very

broad meaning, using it to refer to anything capable of
satisfying a need or want. Thus, services, activities, people
(politicians, athletes, film stars), places (holiday resorts),
organizations (hospitals, colleges, political parties), and
ideas, as well as physical objects offered for sale by
29
retailers, can be considered as products. Physical products
can usually be augmented by benefits such as customer
advice, delivery, credit facilities, a warranty or guarantee,
maintenance, after-sales service, and so on.
2. Some manufacturers use their name (the ‘family name’)

for all their products, e.g. Philips, Colgate, Yamaha.
Others, including Unilever and Procter & Gamble, market
various products under individual brand names, with the
result that many customers are unfamiliar with the name of
the manufacturing company. The major producers of soap
products, for example, are famous for their multi-brand
strategy which allows them to compete in various market
segments, and to fill shelf space in shops, thereby leaving
less room for competitors. It also gives them a greater
chance of getting some of the custom of brand – switchers.
3. Most manufacturers produce a large number of products,

often divided into product lines. Most product lines consist
of several products, often distinguished by brand names,
e.g. a range of soap powders, or of toothpastes. Several
different items (different sizes or models) may share the
same brand name. Together, a company’s items, brands and
products constitute its product mix. Since different products
are always at different stages of their life cycles, with
growing, stable or declining sales and profitability, and
because markets, opportunities and resources are in
constant evolution, companies are always looking to the
future, and re-evaluating their product mix.
4. Companies whose objectives include high market share

and market growth generally have long product lines, i.e. a
large number of items. Companies whose objective is high
profitability will have shorter lines, including only
30
profitable items. Yet most product lines have a tendency to
lengthen over time, as companies produce variations on
existing items, or add additional items to cover further
market segments. Additions to product lines can be the
result of either line-stretching or line-filling. Line-
stretching means lengthening a product line by moving
either up-market or down-market, i.e. making items of
higher or lower quality. This can be carried out in order to
reach new customers, to enter growing or more profitable
market segments, to react to competitors’ initiatives, and so
on. Yet such moves may cause image problems: moving to
the lower end of a market dilutes a company’s image for
quality, while a company at the bottom of a range may not
convince dealers and customers that it can produce quality
products for the high end. Line-filling- adding further items
in that part of a product range which a line already covers –
might be done in order to compete in competitors’ niches,
or simply to utilize excess production capacity. (source:
English for Business Studies by Ian MacKenzie, Cambridge
1.1 Match the following words with their definitions. See the
glossary of terms at the end of this chapter:
1. Service 6. Generic product

2. Clone 7. Perishables
3. Consumer durable 8. Manufacturing
4. Sell-by date
5. Fast moving consumer goods
a) Natural products, usually food, that will go bad after a

certain period of time
31
b) Products sold in very large quantities, such as groceries.
They are bought often and move through stores quickly.
c) A new product, especially in the high technology
sector, which is almost the same as a successful one
made by a famous manufacturer.
d) Long-lasting products produced and sold in large
quantities.
e) Products which are not known by a brand name, e.g.
pharmaceutical products like paracetamol for
headaches.
f) Specialist expertise or advice to help companies or
individuals, e.g. in legal matters, marketing.
g) A time suggested for reasons of safety by which
perishable goods should be used.
h) The actual making of products or components for
products.
1.2. Change each word in bold type to a related word which

fills the gap in the sentence correctly.
1. We sell a very large range of goods, including fast

moving consumer goods such as canned foods,
cleaning materials and cassettes.
Consume
2. Of course, we also sell ………………….. goods

like milk, cheese and meat, which need to be sold
within a short time.
Perish
32
3. It is not only food ………………….. which have a
very short shelf life. Fashion items quickly become
out of date.
Produce
4. For large consumer ……………………, like music

systems and TVs, we provide an after-sales service.
Duration
5. An important aspect of marketing goods like

computers is possible …………. value, such as free
software, Internet access and technical support.
Add
6. The business of a ………………… is to sell

products.
Retail
7. A ………………… industry is one that offers

specialist expertise or advice. Lawyers, marketers,
translators and financial consultants all do this.
Serve
8. If you are not completely satisfied with any product

……………….. in this store, you may return it and
receive a complete refund or exchange it for a
different item.
Purchaser
33
9. A …………………….gives one person or company
the right to make a particular product for a period of
time. The inventor may sell or lease it to a
manufacturer.
Patented
10. A product which was expensive to develop,

manufacture and launch, and which does not have
the sales that the manufacturer expected can be
described as a ………………….
Flopped
Brands and branding
A brand is a name given to a product or group or products

so that it can be easily recognized. ‘The most distinctive
power of professional marketers is their ability to create,
maintain, protect and enhance (strengthen the power of)
brands, says Philip Kotler. This is reflected in the value that
companies put on their brands. For example, BMW paid
$60 million for Rolls Royce name alone, not including any
material assets such as manufacturing plant.
‘Brand’ often occurs in these combinations
brand awareness/ familiarity/ recognition - the degree to

which people know a brand
brand promise - what people expect from a brand
brand preference - when consumers like one brand more
than another
brand image - all the ways that people think about a brand
34
brand equity - the value of a brand to its owners, as
sometimes shown on a firm’s balance sheet (source:
Business Vocabulary in Use by Bill Mascull, Cambridge
1.3. Brand also occurs in expressions such as those below.

Complete each sentence with the correct word or phrase
from the following list:
brand identity, brand name, brand image, own-brand,

intangible assets, brand loyalty, premium brand, brand
valuation, unbranded.
1. Coca Cola, Sony, Mercedez Benz: each of these is a

famous ………………
2. Deciding a financial value for a brand name is called
…………………
3. Consumers usually expect to pay less for products that
are ……………………..
4. Producers like Chanel or Christian Dior have a
…………………. which is more glamorous than that of
many less well-known competitors.
5. In the 1990s most supermarkets began to sell
…………………. products.
6. A brand name is valuable not only for the main products
that are represented by the name, but also for the range of
………………….. that accompany that name.
7. A key concern for marketers is to establish
………………………among their customers so that they
do not buy similar products made by other companies.
8. Consumers are often prepared to pay a high price for a
……………….. which they believe represents high quality.
9. A new product must create a …………………. so that it
is easily recognized and associated with specific qualities.
35
Further reading:

Teora, 2004
(b) Longman Business English Dictionary, Pearson Education
Limited, 2000
1. Think of five collocations with ‘brand’ and exemplify

them with sentences.
………………………………………………………………
………………………………………………………………
………………………………………………………………
………………………………………………………………
………………………………………………………………
………………………………………………………………
……………………………………………………………..
2. Think of several collocations with ‘product’ and
exemplify them with sentences.
………………………………………………………………
………………………………………………………………
………………………………………………………………
………………………………………………………………
………………………………………………………………
………………………………………………………………
36
………………………………………………………………
………………………………………………………………
1. Several products, often distinguished by brand names,

e.g. a range of soap powders, or of toothpastes, make up
a
a. product class b. product line c. product mix d.
product category
2. A company’s items, brands and products constitute its

a. product mix b. marketing mix c. product line d.
product range
3. Natural products, usually food, that will go bad after a

certain period of time
a. durables b. clones c. fast moving consumer goods d.
perishables
4. Products sold in very large quantities, such as groceries,

which are bought often and move through stores quickly
are
a. durables b. clones c. fast moving consumer goods
d. perishables
5. A time suggested for reasons of safety by which

perishable goods should be used
a. deadline b. sell-by date c. warranty d. guarantee
6. A natural way to open a letter of reply is to say

a. Thx for yr letter. b. We are in receipt of your message,
dated 15th of this month. c. Thank you for your letter of 15
June. d. I received your letter. I have sent the goods.
37
Assessment tests
1. A new product, especially in the high technology

sector, which is almost the same as a successful one
made by a famous manufacturer is a
a. durable b. clone c. fast moving consumer good d.
perishable
2. Long-lasting products produced and sold in large

quantities are
a. durables b. clones c. fast moving consumer goods d.
perishables
3. The actual making of products or components for

products is called
a. manufacturing b. fabrication c. processing d. delivery
4. The degree to which people know a brand is called

a. brand awareness b. brand promise c. brand loyalty d.
brand image
5. When consumers like and buy one brand rather than

other competing brands, this is called
a. brand awareness b. brand promise c. brand loyalty d.
brand image
Homework:
Think of a product you know well and describe it.
Glossary of terms
38
Warranty= garantie
Maintenance= intretinere
After-sales service= service post-garantie
Manufacturer= producator
Brand= marca
Product line= linie de produs
Product mix= mix de produs
Market share= cota de piata
Market segment= segment de piata
Niche= nisa
Consumer durables/ Durables= produse de folosinta
indelungata
Sell-by date= termen de valabilitate
Perishables= produse peribabile
fast-moving consumer goods= bunuri de consum cu circulatie
rapida
Added value= valoare adaugata
Patent= patent, brevet
Flop= esec, produs fara succes
Own-brand= marca proprie
Intangible assets= active necorporale
Premium brand= marca premium
Brand valuation= evaluare a marcii
39
Chapter 4: PRICES AND TERMS OF
PAYMENT
I. Objectives:
- to introduce and practice a price-related vocabulary

- discuss economic problems by using the specific terminology
of the field, especially in relation to different types of prices
and terms of payment.
III. Key words: delivery, terms of delivery/ payment, etc.
IV. Structure:
2. Examples of orders
3. Specialized vocabulary (price)
V. Summary:
This chapter introduces the vocabulary necessary for
discussing price-related topics.
VI. Content:Prices and terms of payment
I. Read the following text on prices and terms of payment,

paying attention to the underlined words and expressions.
Refer to the glossary at the end of the chapter for unknown
words.
Budget-priced goods are goods which are sold at a very low

price and are aimed at the lower end segment of the market.
40
Goods can also be sold at a sale price when they have already
been offered at the recommended retail price for a period of not
less than three months. Discounts, on the other hand, are
usually offered to loyal customers or for large orders.
The factory gate price is the price offered by wholesalers to

producers of goods. They must allow the latter to cover
production costs and also to realize a profit that will allow it to
remain on the market. Producers, however, often prefer to sell
directly to retailers, as this will cut out intermediaries and
avoid retail prices being forced higher by high wholesale
prices.
The market price is the price the market will accept for a given
product. It shouldn’t exceed the going rate. (source: Test Your
Professional English- Marketing, by Simon Sweeney, Penguin
Books, 2002)

Teora, 2004
VIII. Revision and consolidation
41
1. Think of several phrases with ’price’ and use them in
sentences of your own.
................................................................................................
................................................................................................
................................................................................................
................................................................................................
................................................................................................
2. What is the factory-gate price?
................................................................................................
................................................................................................
................................................................................................
3. What is the market price?
................................................................................................
................................................................................................
................................................................................................
...............................................................................................
Self-assessment test
Match the words (1-9) with the definitions (a-i)
1. break-even point a. the prices wholesalers and

distributors pay to the producer for
goods
2. discounting b. a pricing strategy based on low
pricing and low unit profits
3. factory gate price c. an illegal and secret agreement
between competitors to fix higher
prices to boost their profits.
4. inelastic demand d. the day-to-day costs of running
a business
42
5. overheads e. sales of a product do not change
much with variations in price
6. penetration strategy f. reducing the price of goods in
return for bulk sales or to a
favoured customer
7. price sensitive buyers g. a product sold at a specially low
price, perhaps at a loss, in the
expectation that customers will
spend money on other goods
where margins are high.
8. loss leader h. the point in the development of
a product when sales begin to
exceed the investment.
9. cartel i. consumers who are very
attentive to price changes and look
for lower-priced items.
Assessment tests
1. Goods which are sold at a very low price and are aimed
at the lower end segment of the market are
a. premium goods b. cheap goods c. budget-priced goods
d. fast moving consumer goods
2. The price offered by wholesalers to producers of goods

is the
a. factory-gate price b. retail price c. market price d.
wholesale price
3. The price the market will accept for a given product is

the
wholesale price
43
4. The price offered by retailers to wholesalers is the
wholesale price
5. The price offered by consumers to retailers is the

wholesale
6. The point in the development of a product when sales

begin to exceed the investment is called the
a. point of no return b. break-even point c. point of sale d.
despatch point
7. Reducing the price of goods in return for bulk sales or to

a favoured customer is called
a. discounting b. giving away c. sharing d. offering
Glossary of terms:
Budget price= pret de deviz

Sale price= pret de sold
Factory-gate price= pret de fabrica
Retail price= pret cu amanuntul
Wholesale price= pret cu ridicata
Recommended retail price= pret recomandat de producator
Discount= reducere
Production costs= costuri de productie
Market price= pret de piata
Going rate= tarif obisnuit
Break-even point= prag critic al rentabilitatii
Cartel= cartel
Overheads= costuri indirecte
Penetration strategy= strategie de penetrare
44
Inelastic demand= cerere inelastica
45
Chapter 5: DISTRIBUTION
I. Objectives:
- to introduce and practice a customer-related vocabulary
- to develop speaking skills

- discuss marketing problems by using the specific terminology of
the field, especially in relation to different types of distribution
channels and retail outlets.
III. Key words: complaint, distribution, retail outlets.
IV. Structure:
3. Specialized vocabulary (distribution)
V. Summary:
This chapter teaches introduces the vocabulary necessary for
discussing distribution -related topics.
VI. Content:Distribution
Read the following text on retail outlets and selling

methods, paying attention to the words and phrases written
in boldface (also see the glossary of terms at the end of this
chapter).
The variety of selling techniques has increased remarkably in

recent years. Some industries, such as banking, have moved
enthusiastically into e-commerce, completely changing the
customer's experience. Many shops now offer e-shopping and
46
a home delivery service. However, old traditions live on. Most
towns and cities still have traditional street markets!
The growth in hypermarkets, supermarkets, chain stores
and multiples has had a big impact on the small business
sector. Many small retailers have disappeared, but some have
continued to trade profitably. One way that small specialist
retailers have survived is by forming buying groups, which
provide them with economies of scale and cost benefits.
Franchises also help small businesses to compete. A parent
company (the franchisor) grants a licence to use its name to a
smaller business (the franchisee). Hypermarkets, supermarkets
and railway stations increasingly have in-plants - smaller shops
which operate within them and pay them rent - and these are
often franchises. Another recent development is the growth in
convenience stores. These are small food and grocery outlets,
selling fresh milk and bread, and also newspapers,
confectionery, and so on. They are often open long hours.
Many are attached to petrol stations. (source: Test Your
Professional English- Marketing, by Simon Sweeney, Penguin
Books, 2002)
1.1. Match each term in the box with a set of words in italics in
the newspaper extract (for unknown words see the glossary of
terms at the end of this chapter). Then write the number after
the term.
chain stores cold calling

commission door-to-door selling
e-commerce franchises
hypermarkets Internet service providers
large multiples (ISPs)
mail order companies mail order
specialist retailers purchasing power
47
warehouses telesales staff
(1) Companies which specialize in selling goods through a

catalogue sent out through the post normally have (2) large
buildings full of goods from where the goods are despatched.
(3) Companies which own many stores have (4) strength in
negotiating prices where manufacturers are concerned. Small
shops do not have this. (5) Retail outlets which pay a licence
fee to trade under a famous brand name often benefit from
increased business, since the name is a powerful advertisement.
(6) Going from one house to another, knocking on doors, is a
highly labour-intensive type of sales operation. This type of
work is normally paid on the basis of a (7) percentage of the
sales achieved being paid to the seller. Another type of selling
is by (8) a combination of catalogue and ordering by post. This
may be complemented by (9) personnel who sell by telephone,
trained to deal with customers' calls. Another kind of telephone
selling is through (10) telephoning someone who is not
expecting your call but whom you think might buy your
product. The idea is to get your prospective customer to agree
to buy your products or receive a home visit for a
demonstration. A variation on this - popular with banks and the
financial services industry - is to call existing customers and
offer them new products.
(11) Large out-of-town stores selling a huge range of goods
have had a serious effect on business for smaller, city centre
shops. (12) Small shops offering a personalized and highly
specialized service can survive better than small shops which
try to compete directly with the larger outlets and other (13)
retail outlets owned by the same company and trading under
the same name. In recent years (14) selling over the Internet
has become much more common. Customers order and pay for
goods or services by accessing a website from a home or office
48
computer. Companies wanting to trade over the Internet need
access to the world wide web (WWW) which is provided by
one of the (15) companies that provide access to the net.
(source: Test Your Professional English- Marketing, by Simon
Sweeney, Penguin Books, 2002)
VII. Further reading

developing An Effective Business writing Style,
Barron’s, 2004
Marketing, Penguin Books, 2002
Teora, 2004
1. What are the main retail outlets that you know?

................................................................................................
................................................................................................
................................................................................................
................................................................................................
................................................................................................
...............................................................................................
49
1. Fill in the blanks with the right words from the list
below:
producer, place, services, intermediary, customer,
provider, user, goods, distribution
Shipping, or shipment, in the marketing or selling sense,

means the despatch of (1) ................... from the
(2)............................ to the (3) ........................., or to an (4)
............................ The entire process of moving goods or
(5) ....................... from the producer or (6) .......................
to the customer or (7) ........................... is described as the
(8) ........................... process. It is also known as (9)
.............................. one of the four Ps.
2. Replace each underlined word in the text with a word

from the list below that has a similar meaning.
Consumers ........... despatch ...............

e-business ..................
Mail order ............. middlemen ............ multiples
....................
Producer ............... retailers ............... sales
forces ................
Sales representatives .........
wholesalers......
50
Dear Sara,
As the (1) manufacturer, we obviously must ensure that

products reach (2) customers with maximum efficiency.
At present we use independent (3) distributors, but we
should consider better alternatives. The following changes
need urgent consideration:
- cutting out (4) intermediaries- this would bring cost
savings.
- Larger (5) sales teams.
- Many more (6) reps.
- Improved (7) shipment systems.
- Closer relations with (8) dealers.
- More links with (9) chains.
- More use of (10) direct selling by post.
- Using our website for more (11) selling over the
internet.
Please call me to discuss these points as soon as possible.
Regards,
Alain
Assessment tests
1. A large building full of goods from where the goods are

despatched is called
51
a. supermarket b. hypermarket c. warehouse d. store
2. Retail outlets which pay a licence fee to trade under a

famous brand name, which is a powerful advertisement are
called
a. franchises b. stores c. subsidiaries d. branches
3. Small shops offering a personalized and highly

specialized service are called
a. supermarkets b. hypermarkets c. warehouses d.
specialized retailers
4. Selling over the Internet is known as

a. e-banking b. e-commerce c. e-shopping d. e-invoice
5. Companies that provide access to the net are called

a. internet service providers b. internet companies c.
dotcoms d. i-companies
Homework:
What do you think about the future of small shops in the

context of hypermarket/ supermarket boom that is currently
taking place?
Glossary of terms
Chain store= magazin in retea

Consumer= consumator
Commision= comision
Multiple= magazine universal
E-commerce= comert electronic
E-shopping= cumparaturi electronice
52
Economies of scale= economii de scara
Franchise= franciza
Franchisor= francizor
Franchisee= francizat
Mail order= comanda prin posta
Warehouse= depozit
Door-to-door selling= vanzare din usa in usa
Internet service provider= furnizor de servicii de internet
Purchasing power= putere de cumparare
53
Chapter 6: THE BANKING
ENVIRONMENT
I. Objectives:
- to acquire some basic vocabulary related to banks and
banking
- to be able to discuss financial topics
- to understand specialized texts about the financial sector

- understand specialized texts about banks and banking
- discuss financial matters by using the specific terminology of
the field.
III. Key words: banks, banking products and services, credit,

interest, deposit, borrow, lend, IMF, IBRD.
IV. Structure:
1. Types of banks
2. Banking products and services
3. International financial institutions
V. Summary:
Several important types of banks are commercial, investment,
development, and central banks. The main services these banks
offer are credits (including overdrafts and mortgages) and
deposits. Other important banking products are credit and cash
cards, standing orders, current and deposit accounts, etc.
Institutions such as the International Monetary Fund (IMF) and
the International Bank for Reconstruction and Development
54
(IBRD) play an important role on the international financial
market.
VI. Content:
A. Read the following text on types of banks and banking

products/ services, paying attention to the underlined key
words. For any unknown words, see the glossary of terms
at the end of the chapter.
Commercial or retail banks are businesses that trade in money.

They receive and hold deposits, pay money according to
customers' instructions, lend money, offer investment advice,
exchange foreign currencies, and so on. They make a profit
from the difference (known as a spread or a margin) between
the interest rates they pay to lenders or depositors and those
they charge to borrowers. Banks also create credit, because the
money they lend, from their deposits, is generally spent (either
on goods or services, or to settle debts), and in this way
transferred to another bank account - often by way of a bank
transfer or a cheque (check) rather than the use of notes or
coins - from where it can be lent to another borrower, and so
on. When lending money, bankers have to find a balance
between yield and risk, and between liquidity and different
maturities.
Investment banks, often called merchant banks in Britain, raise
funds for industry on the various financial markets, finance
international trade, issue and underwrite securities, deal with
takeovers and mergers, and issue government bonds. They also
generally offer stockbroking and portfolio management
services to rich corporate and individual clients. Investment
banks make their profits from the fees and commissions they
charge for their services.
55
In some European countries (notably Germany, Switzerland
and Austria) there have always been universal banks
combining deposit and loan banking with share and bond
dealing and investment services, but for much of the 20th
century, American legislation enforced a strict separation
between commercial and investment banks. The Glass-Steagall
Act, passed during the Depression in 1934, prevented
commercial banks from underwriting securities. The Japanese
equivalent was abolished the previous year, and the banking
industry in Britain was also deregulated in the 1990s, and
financial conglomerates now combine the services previously
offered by banks, stockbrokers, and insurance companies.
A country's minimum interest rate is usually fixed by the
central bank. This is the discount rate, at which the central
bank makes secured loans to commercial banks. Banks lend to
blue chip borrowers (very safe large companies) at the base
rate or the prime rate; all other borrowers pay more, depending
on their credit standing (or credit rating, or creditworthiness):
the lender's estimation of their present and future solvency.
Borrowers can usually get a lower interest rate if the loan is
secured or guaranteed by some kind of asset, known as
collateral. (adapted from English for Business Studies, by Ian
Mackenzie, Cambridge University Press 2004)
The text contains a number of common verb-noun

partnerships (e.g. to lend money, to finance international
trade). Match up the verbs and nouns below to make
common collocations.
Charge Advice
Do Bonds
56
Exchange Business
Issue Currencies
Make Deposits
Offer Funds
Pay Interest
Raise Loans
Receive Profits
Underwrite Security issues
B. Match up these terms with the definitions below. For any

unknown words, see the glossary of terms at the end of the
chapter.
cash card
cash dispenser (GB) or ATM (automated teller machine) (US)
credit card home banking loan
mortgage overdraft
standing order or direct debit
current account (GB) or checking account (US)
deposit account (GB) or time or notice account (US)
PIN borrow commercial governor
debt SWIFT correspondent bank IBRD IMF
lending credits
57
2. an arrangement by which a customer can withdraw more
from a bank account than has been deposited in it, up to an
agreed limit; interest on the debt is calculated daily
3. a card which guarantees payment for goods and services
purchased by the cardholder, who pays back the bank or
finance company at a later date
4. a computerized machine that allows bank customers to
withdraw money, check their balance, and so on.
5. a fixed sum of money on which interest is paid, lent for a
fixed period, and usually for a specific purpose.
6. an instruction to a bank to pay fixed sums of money to
certain people or organizations at stated times.
7. a loan, usually to buy property, which serves as a security
for the loan.
8. a plastic card issued to bank customers for use in cash
dispensers
9. doing banking transactions by telephone or from one's own
personal computer
10. one that generally pays little or no interest, but allows the
holder to withdraw his or her cash without any restrictions
11. one that pays interest, but usually cannot be used for paying
cheques (GB) or checks (US), and on which notice is often
required to withdraw money
12. a bank that performs services for banks in other countries.
13. abbreviation for an organisation which facilitates payment
messages between banks.
14. the action of obtaining funds from a bank, repayable with
interest.
15. abbreviation for an organisation which monitors external
debts of countries.
16. a bank which performs banking services for the public, a
full service bank.
17. the main activity of banks, how they earn their revenue.
58
18. abbreviation for a client's security code used in ATM cash
withdrawals.
19. an amount owing, which must be repaid.
20. a synonym for loans.
21. abbreviation for the World Bank.
22. the head of a country's central bank.
C. Complete the articles below with the words in the box
The World Bank
stands for loans function funds

set up sources headquarters bonds
develop capital sales
The World Bank was (1).............................. in 1944 and its

(2).............................. are in Washington. The World Bank is
the short name for the IBRD, which (3).............................. the
International Bank for Reconstruction and Development. The
(4).............................. for the World Bank comes from three
main (5)..............................; firstly, its 180 member countries;
secondly, (6).............................. of its own
(7)..............................; and, finally, interest on its
(8).............................. The main (9).............................. of the
World Bank is to provide (10).............................. for poor
countries to help them to (11).............................. .
The International Monetary Fund
59
purpose member balance of payments
establish cooperative exchange rate
The IMF stands for the International Monetary Fund. It was set
up after World War II and its main (1) .............................. was
to (2).............................. a fixed (3) .............................. system.
The IMF is a (4).............................. deposit bank. The IMF
offers credit to (5).............................. countries experiencing
(6).............................. difficulties.
1. Sweeney, S: Test Your Professional English – Finance,

Penguin Books, 2002, pp. 36-43
Teora, 2004
3. Pratten, Julie, Banking English, Delta publishing Ltd.,
1997
(c) What are the main types of banks?

…………………………………………………………………
…………………………………………………………………
…………………………………………………………………
…………………………………………………………………
…………………………………………………………………
(d) What are the main products and services offered by banks?
60
…………………………………………………………………
…………………………………………………………………
…………………………………………………………………
…………………………………………………………………
…………………………………………………………………
(e) How many types of bank accounts do you know?
......................................................................................................
......................................................................................................
......................................................................................................
...
(f) What is an overdraft?
......................................................................................................
......................................................................................................
......................................................................................................
......................................................................................................
...
(g) What is a mortgage?
......................................................................................................
......................................................................................................
......................................................................................................
......................................................................................................
...
6. What does the IMF stand for? What about the IBRD?
......................................................................................................
......................................................................................................
......................................................................................................
.................................................................................................
Self-assessment tests:
1. Match the services in the box with the list of clients'

requirements.
business loan cash card cheque encashment

61
credit card deposit account direct debit
safe deposit box SWIFT transfer mortgage
overdraft personal loan
standing order
8. A client has a lot of bills to be paid this month and does not
have enough funds in the account to pay for them.
9. A manufacturing company wants to buy new premises.
10. A client has to pay several bills on a regular basis.
11. A client wants her jewellery to be kept in the bank.
12. Ms. Massant wants to send $5,000 to her son in New York
as quickly as possible.
13. A client travels a lot and has to pay hotel and restaurant
bills regularly.
14. A client works irregular hours and does not have time to
visit the bank to withdraw money from his or her account.
15. A client wants to withdraw money against a personal
cheque.
16. A client wants to earn a higher rate of interest by depositing
money for a fixed period of time.
17. A client wants a long-term loan to purchase a house.
18. A client allows a creditor to withdraw money from his
account at regular intervals to pay for goods and services.
19. A client wants to borrow money to renovate his house.
2. Choose the best explanation for each of the terms in

italics from a), b) or c).
1. fixed rate lending

b. an agreement to lend money at a current rate of interest that
could change if base rates go up or down
c. lending money at an agreed interest rate for a fixed time
d. any agreement to lend money for a fixed period of time
62
2. commission
12. a percentage of a credit or debit which may be deducted by
the bank
13. a request by a bank that more money should be paid into an
account
14. a bonus paid by the bank to a customer if charges have
been too high
3. interest
 a percentage fee added to the debt you have with the bank
if you are borrowing money
 a charge made by the bank on any account they provide
 a payment made to your account as a percentage of the
amount you have deposited in the bank
4. withdrawal fee
i) charge for closing your bank account
j) charge for using a cash point to get money from your
account
k) charge for using internet banking
6. A bank that provides services to individual customers

rather than to businesses is a ............................. bank.
(a) retail (b) wholesale (c) central
7. An arrangement between a bank and a customer to pay a

fixed amount of money from the customer’s bank account
to another account is a
………………………………………
(a) mortgage (b) standing order (c) notice account
Assessment tests
1. The official bank of a country is the ……………………….

bank.
a. commercial b. development c. central
63
2. An account with a low interest rate, but allowing
withdrawal at any time is a ……………………….. .
a. time account b. current account c. profit and loss account
3. An electronic machine inside or outside a bank, which

customers use to take out money is a ……………………..
a. cash dispenser b. computer c. exchange office
4. The abbreviation designating the World Bank is

…………………..
a. EBRD b. IMF c. IBRD
5. The IMF stands for ...........................

a. The International Money Market b. The International
Monetary Fund c. Internet Service Provider
6. A loan for buying a house or land is

a………………………..
a. short-term loan b. credit-card loan c. mortgage
7. An arrangement between a bank and a customer, allowing

them to take out more money than they have in their
current account is a/ an ………………………………..
a. debt b. loan c. overdraft
Homework: What banking products and services do you use?

What changes do you think will take place in banking in the
foreseeable future?
Glossary of terms:
Account= cont
ATM, cash dispenser= bancomat
64
Balance of payments= balanta de plati
Bond= obligatiune
Borrow= a lua cu imprumut
Commercial bank= banca comerciala
Central bank= banca centrala
Currency=moneda
Current account= cont curent
Debt= datorie
Deposit account= cont de depuneri
Exchange rate= curs de schimb
Funds= fonduri
Headquarters= sediu central
Interest= dobanda
Investment bank= banca de investitii
Issue= a emite
Lend= a da cu imprumut
Loan= imprumut
Maturity= scadenta
Merger= fuziune
Mortgage= credit ipotecar
Overdraft= descoperire de cont
Spread= ecart, diferenta, decalaj
Takeover= preluare
Standing order= ordin de plata permanent
Withdraw= a retrage
Withdrawal= retragere
IMF= FMI
IBRD= BIRD
65
Chapter 7: FINANCIAL STATEMENTS
I. Objectives:
- to acquire some basic vocabulary related to financial
statements and accounting
- to be able to discuss accounting matters
- to understand specialized accounting texts

- understand specialized accounting texts
- discuss accounting matters by using the specific terminology
of the field.
III. Key words: balance sheet, assets, liabilities.
IV. Structure:
1. Financial statements- the balance sheet
2. Assets
3. Liabilities
V. Summary:
66
A company’s balance sheet shows its assets and liabilities.
Assets include fixed assets (buildings, land, vehicles, etc) and
current assets (stocks, debtors, investments in other
companies), as well as intangible assets (brand names, licences,
patents, etc). Liabilities are sub-divided into current liabilities
(creditors, overdrafts, tax payable) and long-term liabilities
(long-term loans, bonds, etc). Other financial statements are the
profit and loss account and the cashflow statement.
VI. Content:
Read the following text about assets and liabilities, paying

attention to the underlined key words (source: Business
Vocabulary in Use, by Bill Mascull, Cambridge University
Press, 2004). For any unknown words, see the glossary of
terms at the end of the chapter.
A company's balance sheet gives a 'snapshot picture' of its

assets and liabilities at the end of a particular period, usually
the 12-month period of its financial year. But the snapshot
could be taken on any day of the year.
Assets
67
An asset is something that has value or the power to earn
money for a business. Assets are what a company owns. Assets
include:
1. current assets:
1. cash at the bank.
2. securities: investments in other companies.
3. stocks, of raw materials, unfinished goods and finished
goods, that are going to be sold.
4. debtors: money owed to the company by customers.
2. fixed or tangible assets: equipment, machinery, vehicles,

buildings, land.
3. intangible assets: for example, goodwill, the value that the

company thinks it has as a functioning organization with its
existing customers, and in some cases brands, because
established brands have the power to earn it money, and would
have a value for any potential buyer of the company.
However, there are some things of value that are never shown
on a balance sheet, for example the knowledge and skills of the
company's employees.
68
Depreciation
Of course, some assets such as machinery and equipment lose

their value over time because they wear out and become
obsolete and out of date. Amounts relating to this are shown as
depreciation or amortization in the accounts. For example,
some computer equipment is depreciated or amortized over a
very short period, perhaps as short as three years, and a charge
for this is shown in the accounts. The value of the equipment is
written down or reduced each year over that period and written
off completely at the end.
The amount that is shown as the value of an asset at a
particular time is its book value. This may or may not be its
market value, i.e. the amount that it could be sold for at that
time. For example, land or buildings may be worth more than
shown in the accounts because they have increased in value.
Equipment may be worth less than shown in the accounts
because its value has not been depreciated by a realistic
amount.
Note: The terms 'depreciate' and 'depreciation' are usually

used in the UK; 'amortize' and 'amortization' are more
69
common in the USA.
Liabilities
A company's liabilities are its debts to suppliers, lenders,

bondholders, the tax authorities, etc.
Current liabilities are debts that have to be paid within a year,
for example:
- creditors: money owed to suppliers etc.
- overdrafts: when the company spends more money than it
has in its bank accounts.
- interest payments that have to be paid in the short term.
- tax payable.
Long-term liabilities are debts that have to be paid further into

the future, for example long-term bank loans and bonds.
BrE: creditors
AmE: accounts payable or payables
Shareholders’ funds
When you deduct a company's liabilities (everything it owes)

70
from its assets (everything it owns), you are left with
shareholders' funds. In theory, this is what would be left for
shareholders if the business stopped operating, paid all its
debts, obtained everything that was owed to it and sold all its
buildings and equipment.
Shareholders' funds as shown in a company's accounts
includes:
3. The share capital the shareholders have invested.
4. The profits that have not been paid out in dividends to
shareholders over the years, but have been kept by the
company as retained earnings, also called reserves.
BrE: shareholders' funds

AmE: shareholders'/owners' equity

3. Sweeney, S: Test Your Professional English – Accounting,
Penguin Books, 2002
Teora, 2004
71
6. Longman Business English Dictionary, Pearson Education
Limited, 2000
Necessary time for study: 3h or 30 min./ day
1. What are assets?

......................................................................................................
.................................................................................................
2. How many types of assets do you know? What do they

include?
......................................................................................................
......................................................................................................
......................................................................................................
......................................................................................................
......................................................................................................
......................................................................................................
.................................................................................................
72
3. What are liabilities?
......................................................................................................
.................................................................................................
4. How many types of liabilities do you know? What do they

include?
......................................................................................................
......................................................................................................
......................................................................................................
......................................................................................................
......................................................................................................
.................................................................................................
1. Match the words in column A with their definitions in

column B.
A B
1. accounting period a. Fixed plus current assets minus current

liabilities.
73
2. balance sheet b. The regular period to which the
accounts of a business are made up.
3. liabilities c. What a company owes.

4. net assets d. Statement produced by an organization
at the end of the accounting period, in
which the financial situation of
the organization is shown.
2. Fill in the blanks with words suitable in meaning from

the list at the end of the exercise.
The ...(1) sheet shows the financial situation of a company at

the end of a(n) ...(2) period. It consists of three parts: ...(3),
...(4), and ...(5). In many countries ...(6) appear on the left-hand
side of the page, while ...(7) on the right-hand side. In Britain
the three sections of a ...(8) sheet are arranged vertically. Fixed
...(9) are listed and ...(10) assets are added to them. Thus we
obtain ...(11) assets. Net assets are obtained by ...(12) from the
before mentioned items the current ...(13), long-term loans and
deferred taxation.
accounting; assets (3 times); balance (2 times); current;
deducting; liabilities (3 times); owners'/shareholders' equity;
total.
74
3. These are some of the most common terms in accounting.
Match them up with the definitions below.
assets liabilities turnover

depreciation (GB) or amortization (US)
creditors (GB) or accounts payable (US)
debtors (GB) or accounts receivable (US)
overheads (GB) or overhead (US)
earnings or income
shareholders (GB) or stockholders (US)
stock (GB) or inventory (US)
(i) a company's owners

(j) the revenues received by a company during a given period,
minus the cost of sales, operating expenses, and taxes
(k) all the money that a company will have to pay to someone
else in the future, including taxes, debts, and interest and
mortgage payments
(l) the amount of business done by a company over a year
(m) anything owned by a business (cash investments, buildings,
machines, and so on) that can be used to produce goods or
pay liabilities
(n) the reduction in value of a fixed asset during the years it is
75
in use (charged against profits)
(o) sums of money owed by customers for goods or services
purchased on credit
(p) sums of money owed to suppliers for purchases made on
credit
(q) (the value of) raw materials, work in progress, and finished
products stored ready for sale
(r) the various expenses of operating a business that cannot be
charged to any one product, process or department
4. Look at this example of a balance sheet. Replace the

underlined words or phrases with a word or phrase from
the box with a similar meaning.
bank overdraft capital reserves creditors land

ordinary shares plant preference shares share capital
stock tax working capital
BOGUS INDUSTRIES plc

Balance sheet as at 31 December 2001
ASSETS $000
76
Fixed assets
(1) Property 420
Buildings 180
(2) Equipment and machinery 100
Total fixed assets
Current assets
Raw materials
Work-in-progress (3) goods held in storage 200
Finished goods
Debtors 90
Cash in bank 60
Total current assets
Current liabilities
(4) People owed money 80
(5) Money owed to the bank 50
(6) Money owed to the government 35
Total current liabilities
(7) Net current assets
77
CAPITAL
(8) Money invested in the company and represented

by shares
(9) Shares paying a variable dividend to shareholders 500
(10) Shares paying a fixed dividend to shareholders 300
(11) Shares held in a special fund used to pay off 85

creditors if the company goes into liquidation
Total
5. Choose the correct variant
1. The overall picture of assets and liabilities is called

a. balance sheet b. profit and loss account c. company
accounts
2. Items of value which are not easily changed into cash but
which the business needs
a. net assets b. current assets c. fixed assets
3. The cost of borrowing from a bank
78
a. pre-tax profit b. interest paid c. net sales
4. The fall in value of equipment over time

a. dividend b. depreciation c. overdraft
5. Everything a company owes to outside entities

a. assets b. liabilities c. capital
6. Taxes, debts to suppliers, short-term bank loans are

examples of ....................................... liabilities.
a. fixed b. current c. deposit d. long-term
7. Something that a business owns, but which cannot be easily
calculated (for ex. a brand name, technical knowledge, loyalty
from customers, etc) is a (an) ........................ asset.
a. fixed b. current c. intangible d. liquid
8. People who owe money to the company are its
.......................
a. debtors b. creditors c. customers d. employees
9. Debts due for payment later than one year are
..............................
a. long-term liabilities b. turnover c. stock d. current
liabilities
10. Work that has been started but not yet completed is called
79
............................
a. work-in-progress b. finished goods c. stock d.
inventory
11. The goods and materials held available in stock by a
business are its ........................................
a. fixed assets b. intangible assets c. debtors d. inventory
12. The money paid to shareholders out of profits is called
.........................
a. liquidity b. dividend c. overdraft d. revenue
13. Money owed to the government is called .......................
a. debt b. loan c. tax d. capital
Homework: Describe the balance sheet of a company you know

well.
Glossary of terms:
Assets= active
Balance sheet= bilant contabil
Book value= valoare contabila
Creditor= creditor
Current assets= active circulante
Current liabilities= datorii pe termen scurt
80
Debtor= debitor
Depreciation= depreciere
Equity= capital propriu
Finished goods= produse finite
Fixed assets= mijloace fixe
Intangible assets= active necorporale
Liabilities= pasive
Overheads= cheltuieli indirecte
Raw materials= materii prime
Reserves= rezerve
Retained earnings= profit retinut
Share capital= capital social
Turnover= cifra de afaceri
Supplier= furnizor
Unfinished goods= semifabricate
Work-in-progress= produse in curs de executie
Working capital= capital circulant
Write down= a reduce, a amortiza partial
Write off= a amortiza complet
81
Chapter 8: TAXES AND TAXATION
I. Objectives:
- to acquire some basic vocabulary related to taxes and taxation
- to be able to discuss fiscal matters
- to understand specialized texts on tax issues

- understand specialized texts on tax issues
- discuss fiscal matters by using the terminology of the field.
III. Key words: income tax, corporation tax, VAT, excise duty.
IV. Structure:
1. Functions of taxation
2. Types of taxes
V. Summary:
The main function of taxes is to support government spending.
Taxes can be levied directly on people’s incomes (income tax),
property (property tax), etc, as well as on company profits
(corporation tax). Indirect taxes include excise duties and the
value-added tax (VAT). Some people try to avoid paying taxes
either by finding loopholes in the tax law (tax avoidance) or by
not declaring their incomes honestly (tax evasion).
VI. Content:
Read the following text on taxes and taxation, paying

attention to the underlined key words (source: English for
Business Studies, by Ian MacKenzie, Cambridge University
82
Press, 2004). For any unknown words, see the glossary of
terms at the end of the chapter.
The primary function of taxation is, of course, to raise revenue

to finance government expenditure, but taxes can also have
other purposes. Indirect excise duties, for example, can be
designed to dissuade people from smoking, drinking alcohol,
and so on. Governments can also encourage capital
investment by permitting various methods of accelerated
depreciation accounting that allow companies to deduct more
of the cost of investments from their profits, and consequently
reduce their tax bills.
There is always a lot of debate as to the fairness of tax systems.
Business profits, for example, are generally taxed twice:
companies pay tax on their profits (corporation tax in Britain,
income tax in the USA), and shareholders pay income tax on
dividends.
Income taxes in most countries are progressive, and are one of
the ways in which governments can redistribute wealth. The
problem with progressive taxes is that the marginal rate - the
tax people pay on any additional income - is always high,
which is generally a disincentive to both working and
investing. On the other hand, most sales taxes are slightly
regressive, because poorer people need to spend a larger
proportion of their income on consumption than the rich.
The higher the tax rates, the more people are tempted to cheat,
but there is a substantial 'black' or 'underground' economy
nearly everywhere. In Italy, for example, self-employed
people - whose income is more difficult to control than that of
company employees - account for more than half of national
income. Lots of people also have undeclared, part-time
evening jobs (some people call this 'moonlighting') with small
and medium-sized family firms, on which no one pays any tax
83
or national insurance. In 1986, the Director of the Italian
National Institute of Statistics calculated the size of the
underground economy, and added 16.7% to Italy's gross
national product (GNP) figure, and then claimed that Italy had
overtaken Britain to become the world's fifth largest economy.
To reduce income tax liability, some employers give highly-
paid employees lots of perks or benefits instead of taxable
money, such as company cars, free health insurance, and
subsidized lunches. Legal ways of avoiding tax, such as
these, are known as loopholes in tax laws. Life insurance
policies, pension plans and other investments by which
individuals can postpone the payment of tax, are known as tax
shelters. Donations to charities that can be subtracted from
the income on which tax is calculated are described as tax-
deductible.
Companies have a variety of ways of avoiding tax on profits.
They can bring forward capital expenditure (on new factories,
machines, and so on) so that at the end of the year all the
profits have been used up; this is known as making a tax loss.
Multinational companies often set up their head offices in
countries such as Liechtenstein, Monaco, the Cayman Islands,
and the Bahamas, where taxes are low; such countries are
known as tax havens. Criminal organizations, meanwhile, tend
to pass money through a series of companies in very
complicated transactions in order to disguise its origin from
tax inspectors - and the police; this is known as laundering
money or money laundering.
A. Are the following statements true or false according to

the text?
1. Taxes can be designed both to discourage and to
encourage spending.
2. The same amount of money can be taxed more than
once.
84
3. Progressive taxes may discourage people from working
extra hours.
4. Sales taxes are unfair because poor people spend more
than the rich.
5. The Italian government knows that about one seventh of
national income escapes taxation.
6. Loopholes are a common form of tax evasion.
1. Brieger, N and Comfort, J: Language Reference for Business

English, Prentice Hall International, 1992
Penguin Books, 2002
3. Hollinger, A: Test Your Business English Vocabulary, Teora,
2004
Limited, 2000
Necessary time for study: 2h or 20 min/ day
VIII. Revision and consolidation:
1. What is the main function of taxation?

……………………………………………………………………
……………………………………………………………………
……………………………………………………………………
2. How many types of taxes do you know?
……………………………………………………………………
……………………………………………………………………
……………………………………………………………………
85
……………………………………………………………………
…………………………………………………………………….
3. What is the difference between tax avoidance and tax evasion?
……………………………………………………………………
……………………………………………………………………
……………………………………………………………………
……………………………………………………………………
2. Match the words in column A with their

definitions in column B.
A B
a. A form on which a tax-payer makes an
1. value-added tax annual statement of income and personal
2. taxation circumstances enabling claims to be made
for personal allowances.
3. excise duty
b. A tax levied to certain goods such as
4. corporation tax alcoholic drinks and tobacco.
5. tax return c. A compulsory transfer of money from
private individuals, institutions and
6. tax haven commercial enterprises to finance
7. tax shelter government expenditure.
8. income tax d. A tax levied on the assessable profits of
companies.
9. progressive tax e. An indirect tax, its burden being borne
not by the retailers but by the ultimate
consumers. It is levied at each stage of
production of goods and services and on the
value added at each stage.
f. A tax in which the rate increases with
increases in the tax base.
g. Legal means to take advantage of tax
concessions to reduce or eliminate tax
liabilities
86
h. The principal direct tax, levied on either
incomes of individual taxpayers or
households.
i. A country or independent area that has
low rate of tax, offering advantages to
wealthy individuals or companies who can
thus pay lower taxes.
3. Fill in the gaps with suitable words given at the end of

the text.
The purpose of a taxation system is to ...(1) revenue for the

state budget, to support government ...(2). In all countries
everyone's income is ...(3) to tax. In the U.K. it is the obligation
of every adult person to prepare a ...(4) of his income, whatever
its source might be, be it from salary, dividends, ...(5) on
investments etc. The tax authority to whom such returns should
be submitted is called Inland ...(6) in the U.K. and Internal
Revenue Service in the U.S.A. The tax that companies pay is
called ...(7) tax in Britain, and income tax in the United States.
There are lots of taxes such as ... (8) added tax (VAT), payable
when you buy goods or services, and other indirect taxes such
as ...(9) duty, payable on the purchase of tobacco, alcohol. The
term ...(10) tax signifies that higher taxation ...(11) pay a higher
percentage of their income than those from lower taxation
brackets. Such an approach to taxation is a ...(12) to both salary
earners and investors. People are often inclined to cheat, so as
to avoid paying high taxes or paying any tax at all. Using
...(13) in tax legislation some people to pay minimum taxes, the
so-called tax .. .(14). Others do not declare honestly their
incomes and might be brought to law for tax ...(15). The ...(16)
economy existing in some countries allows people not to reveal
their earnings. People who avoid paying taxes may be called
tax dodgers, while those who travel by bus without paying their
fare are fare dodgers. People with high incomes, property
...(17), famous artists or sportsmen, sometimes choose to ...(18)
in countries where taxation is less severe, the so called tax
...(19).
87
Tax accountants advise and assist their clients in keeping the
company records and in preparing and ...(20) the tax returns. In
some countries investments are encouraged by stipulations
regarding accelerated ... (21) of assets, this method bringing
about a reduction of the value of the assets for which tax has to
be paid. In some countries laws have been passed to permit the
depreciation of ...(22) assets so as to eliminate tax ...(23)
against takeovers.
avoidance; barriers; black; brackets; corporation;

depreciation; disincentive; evasion; excise; expenditure;
filling; havens; intangible; liable; loopholes; progressive;
raise; return (2 times); revenue; settle; tycoons; value.
3. Match each definition on the right with a term from the

box. Write the term beside each definition.
capital gains tax corporation tax

creative accounting excise duty income tax loophole
money laundering progressive tax tax deductible tax
evasion tax haven tax shelter value added tax
1. People pay this tax on the money they

earn.
2. Companies pay this tax on their profits.
3. Profits from the sale of assets may be
subject to this tax.
4. Government tax on things such as
cigarettes, alcohol and petrol.
5. This kind of tax means that the more
money you earn, the higher the rate of tax
you have to pay.
6. A clever but still legal way of reducing
the amount of tax to an absolute minimum.
88
7. A country such as Liechtenstein and the
Bahamas where tax is low.
8. A mistake in the law which allows
people to avoid paying tax.
9. These payments are not subject to tax.
10. This tax is added to the price of goods

and services.
11. Avoiding paying tax by giving false
information to the authorities.
12. Investment schemes which allow
people to postpone paying tax.
13. Handling money made from illegal
activity.
Assessment tests
Which terms do the following sentences define?
1 The tax people pay on their wages and salaries is called
A capital transfer tax B income tax C wealth tax
2 A tax on wages and salaries or on company profits is a/an

A direct tax B indirect tax C value-added tax
3 A tax levied at a higher rate on higher incomes is called a

A progressive tax B regressive tax C wealth tax
1. A tax paid on property, sales transactions, imports, and so

on is a/an
A direct tax B indirect tax C value-added tax
2. A tax collected at each stage of production, excluding the

already-taxed costs from previous stages, is called a/an
89
A added-value tax B sales tax C value-added tax
6. Profits made by selling assets are generally liable to a

A capital gains tax B capital transfer tax C wealth tax
7. Gifts and inheritances over a certain value are often liable

to a
A capital gains tax B capital transfer tax C wealth tax
8. The annual tax imposed on people's fortunes (in some

countries) is a/an
A added-value tax B capital gains tax C wealth tax
9. Making false declarations to the tax authorities is called

A fiscal policy B tax avoidance C tax evasion
10. Reducing the amount of tax you pay to a legal minimum is

called
A creative accounting B tax avoidance C tax
evasion
Homework: Bring arguments for and against taxes.
Glossary of terms:
Capital gains tax= impozit pe venitul din investitii

Capital transfer tax= impozit pe transferul de capital
Corporation tax= impozit pe profit
Excise-duty= acciza
Flat rate tax= impozitare cu cota unica
Government expenditure= cheltuieli guvernamentale
Income tax= impozit pe venit
Money laundering= spalare de bani
Progressive tax= impozit progresiva
Property tax= impozit pe proprietate, impozit funciar
Regressive tax= impozit regresiv
Revenue= venituri, incasari
90
Value added tax (VAT)= taxa pe valoarea adaugata (TVA)
Tax rate= cota de impozitare
Tax avoidance= evaziune fiscala legala
Tax evasion= evaziune fiscala
Tax haven= paradis fiscal
Tax return= declaratie de impozit
Tax revenue= venituri din impozite
Wealth tax= impozit pe avere
91
Chapter 9: THE STOCK EXCHANGE
I. Objectives:
- to acquire some basic vocabulary related to stock exchanges
- to be able to discuss financial matters
- to understand specialized texts about financial markets in
general

- understand specialized texts
- discuss financial matters by using the specific terminology of
the field.
III. Key words: stock exchange, joint stock company, share,

bull, bear, shareholder, broker.
IV. Structure:
1. Stock exchanges
2. The London stock exchange
V. Summary:
A company whose shares are traded on the stock exchange is
said to be quoted (BE) or listed (AE). Share prices fluctuate
according to changes in supply and demand, so that their
market value rarely coincides with their nominal/ par/ face
value. Brokers act as intermediaries between buyers and sellers
on the stock exchange.
VI. Content:
1. Read the following text about the London Stock

Exchange, paying attention to the underlined key
92
words. For any unknown words see the glossary at
the end of the chapter (source: Stanton, AJ and Wood,
LR: Longman Commercial Communication, Longman,
1992)
.
At the end of the 17th century the first joint-stock companies

were formed in England to trade overseas, eg, the East India
Company (1600) which traded in India. In order to establish
these companies, a number of people contributed sums of
money and then shared the profit or accepted the loss when the
company began trading. Each person’s contribution was
divided into shares - £ 1,000 would be divided into 1,000£1
shares, for example. If the company did well, the shareholders
could sell all or some of their shares at a higher price than they
had paid for them to people who wanted to have a share of the
company’s profit, or who expected that the price of a share
would increase even more and that they could sell at a profit
too. A market in shares developed in the coffee houses of the
City of London. At first it was an unregulated market and in
1720 many people lost their money in the ‚South Sea Bubble’,
when the South Sea Company collapsed.
In 1801 the Stock Exchange was formed and soon became the
accepted place to buy and sell shares. One reason for its
success was the fact that people would be compensated if a
member of the Stock Exchange behaved dishonestly. The
Stock exchange was formed as a private organization whose
members could be expelled if they did not maintain the highest
standards.
The way of doing business on the Stock Exchange changed

over the years but by the end of the nineteenth century
members were divided into two groups – stockbrokers, who
bought and sold shares for their clients and charged fixed rates
of commission for this service, and stockjobbers who bought
and sold shares on their own account. Brokers bought shares
from jobbers, who made money from the difference between
their selling price and their buying price. Jobbers had ‚pitches’,
93
rather like market stalls, on the trading floor of the Stock
Exchange where brokers could go to buy or sell according to
their clients’ instructions. Jobbers were not allowed to sell
directly to the public, and brokers were not allowed to sell their
own shares to their clients.
During the 1970s it became clear that this system would not
allow London to compete successfully as an international
financial market place with the larger stock markets in New
York and Tokyo. In particular, the firms of jobbers and brokers
were very small in comparison with the American and
Japanese investment banks. Consequently, on 27th October
1986, on a day known as ‚Big Bang, the system described
above was abolished.
There were four main changes. Firstly, there is no longer any

distinction between broker and jobber. All member firms of the
Stock Exchange can now buy from and sell to their clients.
Secondly, fixed commissions were abolished. This makes little
difference to the individual but it means that large purchasers
of shares, such as insurance companies can negotiate vey low
charges. Thirdly, firms outside the Stock Exchange, such as
British and foreign banks were allowed to become members of
the Stock exchange, and fourthly, a new computerised dealing
system – Stock Exchange Automated Quotations – was
introduced.
The effect of these changes was that many firms of jobbers and
brokers became part of large financial groups centered on
banks. These became ‚market makers’. This means that they
committed themselves to always offering a buying and a
selling price in a range of shares. There are also ‚broker
dealers’ who buy from and sell to their clients, but do not
always ‚make a market’, and ‚agency brokers’ who, as before,
act only as agents for investors and charge commission.
Because of the new computerised dealing system the trading
floor of the Stock Exchange is much less busy, since dealers
buy and sell ‚off-screen’ in their offices, instead of face to face
on the trading floor. Many firms have moved into new offices
94
with huge dealing rooms full of the latest electronic equipment
with which they can deal in Tokyo and New York as well as in
London.
Because of the pace of technological change and the intensity

of competition, it is likely that the number of firms dealing in
shares will become fewer and larger.
The prices of shares change from day to day according to

supply and demand and the rise or fall of the market is
measured by the Financial Times’ 30-share index which
records movements in the share prices of thirty large
companies. People who believe that prices will rise are called
‚bulls’, and those who believe that prices will fall are known as
‚bears’. People who buy new issues of shares and sell
immediately in the hope of making a profit are called ‚stags’.
From 1973 to 1987 share prices rose steadily, although there
were falls from time to time. It was a ‚bull market’. However,
in the week beginning 19 October 1987 there were sudden and
dramatic falls in share prices on all the world stock markets.
Some people expected prices to rise again, but others believed
this was the beginning of a long-term ‚bear market’ and a
worldwide economic recession. They compared it to the Great
Crash of 1929 and the recession of the 30s.
1. Brieger, N and Comfort, J: Language Reference for Business

English, Prentice Hall International, 1992
Penguin Books, 2002
7. Hollinger, A: Test Your Business English Vocabulary, Teora,
2004
Limited, 2000
95
Necessary time for study: 2h or 20 min/ day
VIII. Revision and consolidation:
1. What is the stock exchange?

……………………………………………………………………
……………………………………………………………………
……………………………………………………………………
2. What are bulls and bears?
……………………………………………………………………
……………………………………………………………………
……………………………………………………………………
……………………………………………………………………
…………………………………………………………………….
3. Name three important stock exchanges.
……………………………………………………………………
……………………………………………………………………
……………………………………………………………………
……………………………………………………………………
11. Match the following terms with their definitions.
Broker, commission, blue-chip, primary, bond, bull, fee,

secondary/ over the counter, Footsie, trading floor, par value,
SEAQ
1. A long-term debt instrument which is issued in a

standardised format, with a maturity of five years or more,
which pays interest and promises repayment of the principal
sum.
2. The fee charged by a broker for services.
96
3. The popular name used for the Financial Times 100 share
index.
4. The face value on a certificate or bond. (3,5)
5. A speculator who expects the market to rise and buys
heavily.
6. The place where trading is done on the New York Stock
Exchange. (7,5)
7. The market in which newly issued securities are traded.
8. The market for the resale of securities, where ownership is
transferred to another party.
9. The abbreviation for the system used in the London Stock
Exchange to deal on the screen.
10. The stock of a company which has a good record of
management and financial performance, and which pays
regular dividends.
(s) Money paid for services rendered, to a bank, to a
professional, etc.
(t) An agent on the stock exchange who carries out the clients’
instructions and offers advice to them.
12. Choose the correct answer
5. A member of the stock exchange who acts as an

intermediary between buyers and sellers is a
a. agent b. broker c. salesman d. sales representative
6. A company whose shares are traded on the stock exchange

is said to be
a. quoted b. bankrupt c. private d. limited
7. Another word for nominal value is

4. market value b. real value c. par value d. book value
8. The part of a company’s profit distributed to shareholders

is called
a. interest b. salary c. dividend d. bonus
9. The general term for shares, stocks and bonds is
a. investments b. commodities c. goods d. securities
97
Assessment tests
1. The stock exchange is a market for buying and selling

a. commodities b. currencies c. shares d. goods and services
2. A company’s capital is divided into

a. bonds b. parts c. dividends d. shares
13. People who own shares in a company are called

a. shareholders b. shareowners c. share proprietors d. share
investors
4. People who believe that prices will rise are called

a. bulls b. bears c. stags d. invaders
5. People who believe that prices will fall are known as

6. People who buy new issues of shares and sell immediately in

the hope of making a profit are called
Homework: Describe the history and evolution of the

Bucharest Stock Exchange.
Glossary of terms:
Joint-stock company= societate pe actiuni

Share= actiune
Shareholder= actionar
Stock exchange, stock market= bursa
Commission= comision
Insurance= asigurare
Bull market= piata in crestere
Bear market= piata in scadere
98
Bull= speculant care mizeaza pe cresterea preturilor
Bear= speculant care mizeaza pe scaderea preturilor
Market maker= formator de piata
Trading floor= sala operationala a bursei
Key to the exercises
Ch.1
Ex.1: 1 identify, 2 design, 3 persuade, 4 develop, 5 modify, 6

influence
Ex.2: 1a, 2i, 3f, 4h, 5d, 6j, 7e, 8b, 9c, 10g
Ex.3: 1b, 2c, 3c, 4b, 5c,
Ex.4: 1b, 2a, 3d, 4a, 5d, 6b, 7a, 8a, 9d
Chapter 2
Ex.1.1: 1 word-of-mouth, 2 institutional or prestige advertising,

3 advertising agencies, 4 advertising accounts, 5 budget, 6
brief, 7 campaign, 8 target market, 9 media planner, 10
comparative parity method, 11 counter-cyclical advertising.
Self- assessment tests: 1b, 2d, 3a, 4d, 5c.
Assessment tests: 1c, 2b, 3b, 4a, 5d.
Chapter 3
99
Ex. 1.1: 1f, 2c, 3d, 4g, 5b, 6e, 7a, 8h.
Ex.1.2. : 1 consumer, 2 perishable, 3 products, 4 durables, 5

added, 6 retailer, 7 service, 9 purchased, 9 patent, 10 flop
Ex.1.3. : 1 brand name, 2 brand valuation, 3 unbranded, 4

brand image, 5 own-brand, 6 intangible assets, 7 brand loyalty,
8 premium brand, 9 brand identity.
Self-assessment tests: 1b, 2a, 3d, 4c, 5b, 6c
Assessment tests: 1b, 2a, 3a, 4a, 5c
Chapter 4
Self-assessment test: 1h, 2f, 3a, 4e, 5d, 6b, 7i, 8g, 9c.
Assessment tests:1c, 2a, 3c, 4d, 5b, 6b, 7a
Chapter 5
Ex. 1.1.: chain stores 13, cold-calling 10, commission 7, door-

to-door selling 6, e-commerce 14, franchises 5, hypermarkets
11, internet service providers 15, large multiples 3, mail order
8, mail order companies 8, purchasing power 4, specialist
retailers 12, telesales staff 9, warehouses 2.
Self-assessment tests:
3. 1 goods, 2 producer, 3 customer, 4 intermediary, 5
services, 6 provider, 7 user, 8 distribution, 9 place
2. consumers 2, despatch 7, e-business 11, mail order 10,
middlemen 4, multiples 9, producer 1, retailers 8, sales
forces 5, sales representatives 6, wholesalers 3.
100
Assessment tests: 1c, 2a, 3d, 4b, 5a
Chapter 6
Ex.A: charge interest, do business, exchange currencies, issue

bonds, make profits, offer advice, pay loans, raise funds,
receive deposits, underwrite security issues.
Ex.B: 1 overdraft, 2 credit card, 3 cash dispenser/ ATM, 4 loan,

5 standing order, 6 mortgage, 7 cash card, 8 home banking, 9
current account/ checking account, 10 notice/ time/ deposit
account, 11 correspondent, 12 SWIFT, 13 borrow, 14 IMF, 15
commercial, 16 lending, 17 PIN, 18 debt, 19 credits, 20 IBRD,
21 governor
Ex.C:
1 set up, 2 headquarters, 3 stands for, 4 capital, 5 sources, 6
sales, 7 bonds, 8 loans, 9 function, 10 funds, 11 develop.
1 purpose, 2 establish, 3 exchange rate, 4 cooperative, 5

member, 6 balance of payments.
Ex.1: 1 overdraft, 2 business loan, 3 night safe, 4 portfolio

services, 5 standing order, 6 executor, 7 safe deposit box, 8
SWIFT transfer, 9 credit card, 10 cash card, 11 cheque
encashment, 12 deposit account, 13 mortgage, 14 direct debit,
15 personal loan.
Ex.2: 1b, 2a, 3a, 4b, 5a, 6b
Ex.3: 1c, 2b, 3°, 4c, 5b, 6c, 7c.
101
Chapter 7
Ex.1: 1b, 2d, 3c, 4a
Ex.2: 1 balance, 2 accounting, 3 assets, 4 liabilities, 5 owners’/

shareholders’ equity, 6 assets, 7 liabilities, 8 balance, 8 assets,
10 current, 11 total, 12 deducting, 13 liabilities.
Ex.3: 1 shareholders, 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 stocks
or inventory, 10 overheads.
Ex.4: 1 land, 2 plant, 3 stocks, 4 creditors, 5 bank overdraft, 6

tax, 7 working capital, 8 share capital, 9 ordinary shares, 10
preference shares, 11 capital reserves.
Ex.5: 1a, 2c, 3b, 4b, 5b, 6b, 7c, 8a, 9a, 10a, 11d, 12b, 13c
Chapter 8
Ex.1: 1T, 2T, 3T, 4F, 5T, 6F,
Ex. 2: 1e, 2c, 3b, 4d, 5a,6i, 7g, 8h, 9f
Ex.3: 1 raise, 2 expenditure, 3 liable, 4 return, 5 revenue, 7

corporation, 8 value, 9 excise, 10 progressive, 11 brackets, 12
disincentive, 13 loopholes, 14 avoidance, 15 evasion, 16 black,
17 tycoons, 18 settle, 19 havens, 20 filling, 21 depreciation, 22
intangible, 23 barriers.
Assessment test: 1b, 2a, 3a, 4b, 5c, 6a, 7b, 8c, 9c, 10 b
Chapter 9
102
Ex. 1: bond, 2 commission, Footsie, 4 par value, 5 bull, 6
trading floor, 7 primary, 8 secondary/ over the counter, 9
SEAQ, 10 blue chip, 11 fee, broker,
Ex.2: 1b, 2a, 3c, 4c, 5d
Ex.3: 1c, 2d, 3a, 4a, 5b, 6c.
103

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Suport de curs Limba engleza

Chapter 1: MARKETING ....................................................... 12

Prezentul manual de studiu reprezintă o sinteză a conţinutului

El este destinat studenţilor de la forma de învăţământ la

Manualul este structurat în conformitate cu standardele şi

Manualul este structurat pe teme de studiu. Tema de studiu

Fiecare unitate de studiu are o structură proiectată din

Procedura de învăţare în sistem de autoinstruire

Utilizarea manualului de studiu individual se face pe baza unui

Recomandăm câteva reguli de bază în procedura de realizare a

1. Temele de studiu se parcurg în ordinea în care sunt

2. Fiecare modul de studiu conţine şi un test de evaluare şi/sau

3. Întrebările de autocontrol, testele de evaluare sau tema

(a) se citesc obiectivele şi competenţele modulului de studiu

OBS.: Este recomandabil ca, înainte de efectuarea testelor de

5. Nu este recomandabil să se parcurgă mai mult de un modul

TEMA PENTRU ACASĂ (TA) reprezintă un exerciţiu

Manualul de studiu ”Limba engleza” reprezintă o sinteză

Conţinutul de idei nu a fost redus ci doar sintetizat, în

Obiectul cursului ”Limba engleza”:

Obiectul cursului îl reprezintă prezentarea unui vocabular

Manualul de Limba engleza îţi propune ca obiectiv

(a) formarea unui vocabular specializat necesar intelegerii si

Descrierea structurii manualului:

Manualul este structurat în conformitate cu rigorile

a. Obiective (rezultatele aşteptate ale temei)

b. Competenţele dobândite de student (utilitatea temei

c. Termeni de referinţă (concepte cheie)

d. Structura temei de studiu

e. Rezumatul ideilor principale

f. Conţinutul dezvoltat de idei al modulului

i. Teste de autoevaluare, teste de evaluare, teme de casă

II. Bibliografia generală complementară:

Studiul ştiinţific al disciplinei impune parcurgerea următoarei

1. Geffner, A: Business English – A Compete Guide to

II. Specific competencies acquired by the student.

III. Key words: marketing, the marketing mix.

VI. Content: Marketing

1. Read the following text

Most management and marketing writers now distinguish

Marketers are consequently always looking for market

Rather than risk launching a product or service solely on

One the basic offer, e.g. a product concept, has been

It must be remembered that quite apart from consumer

2. The marketing mix. Marketing is often defined in terms

Product: deciding what products and/or services to sell.

Price: setting pries that are attractive to customers and that

Place: finding suitable distribution channels and outlets to

Promotion: all the activities, not just advertising, used to

VII. Further reading:

1. Bond, A: 300 + Successful Business Letters for All

Necessary time for study: 3h or 30 min./ day

Revision and consolidation

1. Here is a definition of marketing. Complete it

design develop identify influence modify persuade

Marketers have to (1) ………………….or anticipate a

2. Match up the words or expressions on the left with

1. The activity of moving goods from the producer to the

Homework: Think of a product that you bought recently.

II. Specific competencies acquired by the student:

III. Key words: advertising, advertisement, publicity,

This chapter introduces the vocabulary of promotion and

I. Read the following text on promotional tools, paying