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UNIVERSITE DE DOSSO
INSTITUT UNIVERSITAIRE DE TECHNOLOGIE (IUT)

LV3101-1 :
ANGLAIS, LANGUE DE SPECIALITE 3
(BUSINESS ENGLISH)
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ADVICE FOR MAKING PROGRESS IN LEARNING ENGLISH

Every situation that can allow you to often find yourself in the cultural environment of the
language is to be favoured. This is only way of making progress in learning English when you
don’t live in an English speaking country.

1. Listening to radio (like BBC or VOA) is an excellent way of handling the hearing
capacity.
2. CNN, BBC World, Sky News and Anglophone channels are excellent exercises
which allow you to be familiar with the pronunciation of British and American
English.
3. Reading of the Anglo-Saxon press is highly recommended for improving the
comprehension, and acquiring an up-to-date glossary: Newsweek (US); The Herald
Tribune (US); The Economist (GB).
4. Watching movies on DVD in English with subtitling in English allows you to read
what you are hearing without going through translation.
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I. FINANCE & CREDIT

This chapter will familiarize you to the financial vocabulary through the description of usual
situations in the business world, viz credit management, bad debtors and the problems caused
by these to the company. This text is an extract from The Economist and presents different
situations based on European examples. It throws a glance somehow optimistic at indebtedness
which does not seem to imply inevitably “making bad business”. After reading carefully this
article, you can verify your comprehension with the help the proposed exercises.

I.1. An increasingly familiar scenario

It is an increasingly familiar scenario. You billed a client company for £ 250,000 three months
ago but, although you have sent them one polite, and one less polite, reminder, the
money has not yet been paid. Their excuse is that current cashflow difficulties are
causing the delay, but the non-payment of such a large sum is now creating serious
problems for you as well. You could, of course, take legal action against your bad debtor,
but since they are promising you half a million pounds worth of business next year, you
are naturally reluctant to upset them unnecessarily. What can you do? Outline four
possible courses of action.

I.2. Do we need more control over credit?

They say money makes the world go round. But it isn’t money: it’s credit. For when the
corporations of the world buy, they buy on credit. And if your credit is good, no one asks to see
the colour of your money. Indeed, if everyone were to demand immediate payment in cash, the
world would literally go bust. But as Trevor Sykes points out in his book, ‘Two Centuries of
Panic’, “there are few faster ways of going broke than by buying goods and then passing them
on to customers who cannot pay for them”. As if getting orders wasn’t tough enough, these
days getting paid is even tougher. And with the amount of cross-border trade increasing every
year, credit is rapidly going out of control

I.3. Companies on brink of collapse.

In Germany, Denmark and Sweden, whose governments strictly regulate business-to-business

relations, companies pay on time. They have to. Late payers may actually be billed by their
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creditors for the services of a professional debt collector. But in Britain companies regularly
keep you waiting a month past the agreed deadline for your bill to be paid. That is why a
Swedish leasing agreement can be drafted on a single page, but a British one is more like a
telephone directory. The French and Italians too will sit on invoices almost indefinitely and
push creditor companies to the brink of bankruptcy.

I.4. Money management

But bad debt does not necessarily mean bad business. Ninety years ago the legendary
Tokushichi Nomura was racing round the streets of Osaka in a rickshaw to escape angry
creditors. They are not angry now, for today Nomura is the biggest securities company in Japan.
Nomura knew what all good financial directors know: that what distinguishes the effectively
managed commercial operation from the poorly managed one is the way it manages its money.
And increasingly a key feature of successful money management is the skill with which a
company can stall its creditors and at the same time put pressure on its debtors.

I.5. Exercices - FINANCE & CREDIT

EXERCISES I.5.1. Language focus:

 Have you ever thrown good money after bad on a project that turned out to be a non
starter?
 All of the following expressions mean go bankrupt except for one. Which one?

• go bust

• go like a bomb

• go to the wall

• go down the tubes

• go under

• go broke

• go down the pan

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I.5.2. Complete the following dialogues using the words below.

tight waste channelling tied liquid bad made

1. What do you think of the plan to install an executive gym? To be honest, I think it’s a
complete.............of money.

2. Why don’t we just inject some more cash into the project if it is still underfunded?
Because there’s no point throwing good money after..........

3. Can’t we pay off the loan with the money that’s coming in from our subsidiaries in the
Gulf?

Well, most of that money is ........... up, I’m afraid.

4. So, why aren’t we investing in a new plant? Because I’m afraid money is a bit ............
at the moment.

5. How much of that money is.......... ?

Very little. In fact, hardly any of it can be turned into cash for over a year.

6. We’ve made a pretty good profit for the last three years running. In that case,
shouldn’t we be.............. some of it into R&D?

7. I don’t suppose you could lend me a couple of hundred pounds, could you? What do
you think I am : ........... of money?

I.5.3. Word partnership

All the words below form strong partnerships with the word order. But the vowels are missing
from each word. Can you work them out ?
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w-n pl – c –

l-s– c – nc - l

h – ndl – ph – n - thr - - gh

pr – c – ss d – sp – tch

r–c--v- b – lk

I.5.4. Use these words to complete the following:

win – lose – handle – process – receive – place – cancel – phone through – dispatch –
bulk

Well, we were expecting you to ...................... your order last month, but, since we
only............... it yesterday, it will now need to be................... before we can............. it. Although
we managed to.............. another new order from Ghana three weeks ago, we have .............this
one rather badly, and if they end up................ it, I’m worried that we may just................all our
Nigerian orders before very long.

I.5.5. Business Grammar

Complete the following summary of the article by writing in the correct prepositions:

By on in up off behind

Most people pay their domestic bills...........cash or.............cheque. This is often unrealistic in
business. But allowing customers to buy large amounts of stock..........credit is not without its
problems. It is extremely difficult to ask a valued customer for payment...........advance because
it may look as if you don’t trust them. You can’t really charge them interest..........the
outstanding sum either, even if they miss the agreed deadline for settlement, or they might get
upset and withdraw their business altogether. To make matters worse, many companies these
days will deliberately sit...........your invoice and wait to see how long it is before you actually
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put pressure............them to pay......... Of course, you can ease both your cashflow situation and
theirs by offering them the facility to pay..............what they owe you.................regular
instalments. But that doesn’t mean to say they won’t fall............ with their repayments
whenever they’re short of cash. And you may end up writing............. half the debt altogether.
Things would probably be a lot simpler if everyone paid..............front for the goods they bought
and in theory a customer should be able to pay straightaway............direct bank transfer. This,
of course, would mean customers remained................constant credit with their suppliers, but it
would also prevent them from playing the waiting game with their creditors. Since most
companies cannot pay you your money till they get theirs, they will continue to conserve cash
until the very last minute.
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II. COMPANIES & THEIR BANKS

The two proposed letters will familiarize you with financial correspondence in English which
is an importance element in professional relations. You will notice that the tone used is always
courteous even though it can sometimes be firm. The level of written English be it in British
English or American is always very meticulous, respectful of the rules of good usage.
After reading these letters carefully, the exercises that follow will help you to understand the
texts well and will enrich your vocabulary.

II.1. Relations between banks and their corporate customers -Letter 1

Dear Mr Smith,
On the attached you will find the Bank’s proposed Schedule of Charges which will take effect
as from 1st of January 2006, and will be reviewed annually. We very much regret that we are
unable to continue offering ‘free banking’ to our customers. This recent change of policy is due
to increasing costs, and we feel that if we are to continue to maintain the professional level of
personal service that we have always provided to our customers, we must now obtain a
contribution to our expenses. You will note that our charges are below the average levied by
other UK banks, as we wish to remain competitive in this market.
The charges will be debited to your account monthly in arrears. The minimum balance
requirement for those accounts which are interest bearing has been reduced from USD
100,000.00 to USD 50,000.00 or currency equivalent. This reduction in the minimum balance
requirement will therefore compensate for some of the charges which will have to be paid by
yourselves.
Should you have any questions concerning the new charges, would you please call either
myself or my colleague, Robert Jones.

Yours sincerely,

Mary Biggs,
Account Manager.
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II.2. Banking facilities - Letter 2

Dear Sirs,

The Bank is pleased to offer your company banking facilities on the terms referred to below
but otherwise subject to normal banking terms and conditions.
Facilities: Withdrawals may be made under the following facilities provided that the total
amount of withdrawal at any time shall not exceed the overdraft limit of : £ 50,000
Availability: The bank may at any time discontinue all or any of the facilities and/or may
demand repayment of all sums owing. The facilities are due for review in twelve months’ time.

Interest rate: Interest on the overdraft facility is to be charged at 2.25% per annum over the
Bank’s Base Rate as published from time to time.
Fees: An arrangement fee of £150 will be payable.
Security: The repayment of all monies owed in respect of the facilities will be secured by
Business Premises, 59, Cornwall Road, Colchester.
All costs and expenses, as mentioned in the General Terms and Conditions attached to this
letter, shall be payable by the company.

To accept this offer, please sign and return the enclosed copy of this letter.
Yours faithfully,

Thomas Biggs,
Branch Manager.

II.3. Exercises - COMPANIES & THEIR BANKS

II.3.1. Comprehension questions LETTER 1:
a) - How long will the new charges remain the same?
b) - Did the company have to pay charges before?
c) - Why has the bank changed their policy ?
d)- When will the company have to pay the charges ?
e) - From what account balance should the company be able to earn interest?
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II.3.2. Find a word or phrase from letter 1 that has a similar meaning.
• each year =
• keep something at the same level =
• amount that partly meets costs but does not cover them completely =
• having the same value =

II.3.3. Comprehension questions LETTER 2 :

a) - How much can the company overdraw?
b) - How long are the terms of this letter valid?
c) - Has the bank the right to stop the overdraft facility before the end of this period?
d) - By what can the overdraft facility be secured?
e) - Are there any charges to pay other than interest?

II.3.4. Vocabulary
Find a word or phrase from letter 2 that has a similar meaning.
• go above a specified maximum level =
• by the year =
• fixed amount that has to be paid for a service =
• place where a company carries out its business activities =

II.4. THE MONEY MOVE

Extracted from Financial Times, this article introduces, with some humour, the difficulties
arising from the demand of salary increase, and proposes solutions that you will have to
decipher.

II.4.1. You want a raise

You want a raise. You deserve a raise. But how do you ask for it? Experts say there are
several ways to make the interchange less stressful and more successful.
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The first sign her co-workers noticed was the empty candy bowl; Lisa, an accountant at a
construction company, was a cheerful woman who had always kept a dish of goodies on her
desk. When she started removing the pictures and the plants from her office, rumours began to
circulate. She did not explain her behaviour to anyone. Then the candy disappeared. ‘She had
been promised a raise for a long while, recounts Linda Talley, an executive coach based in
Houston. Removing things from her office was a subtle way of letting her employers know she
wouldn’t wait any longer, but it worked. A few months later her salary was boosted by $5,000.
There are many ways to ask for a raise, and Lisa’s method is not for everyone. But experts say
there are some basic ways to enhance your prospects for success.

II.4.2. Adding Value

The golden rule is to offer value, based on qualifications and achievements. Forget about your
years of hard work, your experience, your personal needs and expenses, your mortgage, your
ailing grandmother and your Great Dane’s dog food bills. The ‘dumbest case you can possibly
present is one based on pity,’ warns Howard Figler, a career counselor and author of The
Complete Job-search Handbook. In the private sector, your contribution probably falls within
certain categories. You may be a key person who attracts new customers or one who is skilled
at retaining the present relationships. You may be a cost-cutter, who improves the company’s
bottom line. Less important, your reputation might enhance that of your employer or you could
be one of those sunny personalities who boosts the morale of all around them, enhancing
productivity.

II.4.3. R&D

It stands for ‘research and documentation’, which is your responsibility. You must pinpoint
your worth in the market place before entering into any salary negotiation. Although specific
salaries are a taboo topic and rarely discussed among co-workers, you can find comparative
information on career-related websites and through professional organisations.
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Brad Marks, CEO of an executive search firm specialising in the entertainment industry, recalls
a cable TV company division head who wanted a 30 percent raise as a good example. When
Mr Marks asked him to make a case for the huge jump, the executive returned armed with
details of his contributions over the years and the statistics to show he was underpaid compared
to peers in the company and the industry. ‘However, some people just give a number at random,’
according to Mr Marks. I.6.4. Taking the plunge.

Now that you have done your homework, it is time to prepare yourself mentally for the big day.
Few people enjoy the idea of confronting their boss and risking refusal (which is one reason so
many companies have built in a structured system of regular reviews and promotions), but it is
important to remain calm. Lastly, even if your palms are sweating, don’t forget to smile.

By Vanessa Drucker

From the Financial Times.

II.5. Exercises – THE MONEY MOVE – EXERCISES

II.5.1. Match the verbs
Match the verbs 1-8 with the expressions a. to h. from the article.
1. offer a) your experience
2. forget b) your employer’s reputation
3. present c) value
4. attract d) present relationships
5. retain e) new customers
6. improve f) morale
7. enhance g) the company’s bottom line
8. boost h) a dumb case

II.5.2. Match the following expressions with their meanings.

1. offer value - 2. forget your experience - 3. present a dumb case - 4. attract new customers -
5. retain present relationships - 6. improve the company’s bottom line - 7. enhance your
employer’s reputation - 8. boost morale
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a. - keep on good terms with current customers and suppliers

b. - use weak or stupid arguments
c. - improve the way people feel
d. - improve the opinions that people have about your company
e. - obtain new clients
f. - add to profit because of your qualifications and experience
g. - don’t talk about what you have done
h. - contribute to the company’s profitability

II.5.3. Look at the expressions in italics as they are used in the article. True or false?

a) R&D here means ‘Research and Development’.

b) If you pinpoint something, you identify it.
c) If you are armed with information, you have it with you and use it to your advantage.
d) Your peers are the people above and below you in your organisation.

II.5.4. Choose the best alternatives to replace the expressions in bold.

a) Taking the plunge
1. diving into a pool
2. falling in value
3. doing something after a period of preparation or hesitation

b) Few people enjoy the idea of confronting their boss

1. talking to their boss in a roundabout way
2. Facing their boss directly to talk about a difficult subject
3. attacking their boss

c)- ...structured system of regular reviews

1. appraisals
2. criticisms
3. shows
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d)- ...even if your palms are sweating, don’t forget to smile

1. transpiring
2. expiring
3. perspiring
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III. PROFIT AND LOSS ACCOUNT

The following account documents: profit and loss account and balance-sheet will initiate you
to the English vocabulary on accountancy. This approach is essential for understanding the
functioning of the enterprise. The technicality should not put you off. The exercises that
accompany these documents will help you to understand them better.
III.1. Read the financial data produced by British Airways and published on the
Internet for investors.
SUMMARY GROUP PROFIT AND LOSS ACCOUNT
Audited for the year to March 31, 1998
£ million 1998 1997
Most of our revenue was earned from our main business, airline operations: 7,881 7,608
Income from other activities earned: 61 751
This gave us total Group turnover of: 8,642 8,359
Our expenses comprised:
Pay and other employee costs: 2,211 2,248
Depreciation of fixed assets: 551 506
Selling costs: 1,217 1,187
Other operational costs: 4,159 3,872
In total, therefore, our overall Group operating costs were: 8,138 7,813
Deducting this from our Group turnover left a Group operating profit of: 504 546
Other income and charges amounted to: 80 256
The net profit on sale of fixed assets during the year was: 164 20
Net interest payable amounted to: (168) (182)
This produced a Group profit after tax of: 580 640
Then we provided for tax totalling: (133) (90)
This produced a Group profit after tax of: 447 550
Profit or loss from subsidiaries in which we have a minority interest: 13 3
This left a Group profit attributable to shareholders of: 460 553
From this we allowed for dividends representing a total of: (176) (154)
Finally, this left a profit retained in the business of: 284 399
Earning per share
The standard measure of a company’s profitability is calculated by dividing profit attributable
to shareholders by the average number of shares.
On this basis, our earnings per share were: 44.7p 55.7p

III.2. Exercises – PROFIT AND LOSS ACCOUNT

III.2.1. Understanding the main points: True or false?
1. The total Group turnover increased slightly on the previous year.
2. Salaries paid to employees are part of the operating costs.
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3. Interest payable on loans is deducted from the profit after tax.

4. British airways sold off some of its assets in 1998.
5. All the profit is distributed to shareholders.
6. Earnings pershare were lower than in the previous year.
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IV. COMPANY BALANCE SHEET

The following account documents: profit and loss account and balance-sheet will initiate you
to the English vocabulary on accountancy. This approach is essential for understanding
functioning of the enterprise. The technicality should not put you off. The exercises that
accompany these documents will help to understand them better.

IV.1. SUMMARY GROUP BALANCE SHEET

Audited for the year to March 31, 1998

SUMMARY GROUP BALANCE SHEET

Audited for the year to March 31, 1998
£ million 1998 1997
The group’s fixed assets comprised:
Our fleet: 7,227 6,337
Property : 1,181 988
Computers, ground and other equipment: 259 263
Investments in other businesses: 388 684
Added together these represented total fixed assets of: 9,055 8,272
Our current assets, mainly money we are owed, our ‘cash in hand’ and stock,
represented: 2,245 2,164
Most passengers book and pay for tickets in advance. This money, and
amounts owing to creditors that are payable within one year, totalled: (2,881) (3,160)
Deducting this gave us net current liabilities of: (576) (996)
Adding this to the total fixed assets left us with total assets less current
liabilities of: 8,479 7,276
In addition, we owed to creditors amounts due after more than a year including:
Long-term borrowings of: (4,978) (4,034)
We have also made provision for other liabilities and charges: (180) (284)
We also had contributions from a minority shareholder in one of our
subsidiaries of: - 26
Thus our assets less liabilities represented: 3,321 2,984
The money invested in the British jAirways Group comprised:
Our share capital, some 1,038.9 million 25p shares: 260 251
Our reserves: 3,061 2,733
3,321 2,984

IV.2. Exercises – COMPANY ACCOUNTS – BALANCE SHEET

IV.2.1. Understanding the main points: True or false?
1. The airline’s fixed assets include aircraft.
2. The company had acquired new aircraft since the previous year.
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3. The amount of current assets was greater than the amount of current liabilities.
4. Net current liabilities are calculated by deducting current liabilities from total assets.
5. British Airways had issued more than a billion shares at the time of publishing these
accounts.
6. British Airways had increased its reserves since the previous year.

IV.2. Match these terms with their definitions.

1. turnover a) amount deducted each year from profits
to allow for the fact that assets lose their
value as they get older.
2. operating costs b) total sales during a trading period.
3. operating profit c) people the company owes money to,
e.g. suppliers.
4. depreciation d) past profits not paid out as dividends
but retained in the business.
5. fixed assets e) short-term assets used in operations,
e.g. cash, items held in stock.
6. dividend f) money which shareholders have put into
the business.
7. current assets g) long-term assets owned by the
company, e.g. buildings, machinery
8. creditors h) expenses of running a business
including salaries, rent, etc. but not
including the direct costs of manufacturing.
9. current liabilities i) result of deducting the operating
expenses from turnover.
10. share capital j) part of a company’s profits paid to
shareholders.
11. reserves k) debts that must be paid within one
year.