Business and Finance

1. Business and Finance Bank and businesses Most business need to borrow money to finance ( pay for) investments (things they need to buy in order to help the company, e.g. Machines)

2. Business and Finance Bank and businesses The money they borrow from the Bank is called a loan, and on this loan they have to pay interest,e.g. If you borrow $1.000.- and the interest rate is 10%, then you pay back or repay $1.000.- plus $100 in interes.

3. Business and Profit Most companies are happy if they can break even in their first year of business. One of the main aims / objectives( the things that you hope to do /achieve)of a company is to make profit (earn / receive more money than it spends) (# make a loss). If a company does not make a profit or a loss, it brakes even.

4. Business and Finance Profit and costs Companies receive money from selling their products, this money is called turnover. The money that they espend is called the expenditure.They spend money on these things: raw materials ; labour ; overheads.

5. Business and Finance Vocabulary • Raw material = material in their natural state used to make something else. • e.g. Coal and oil are important raw materials used to make plastics. • Labour = employees • Overheads = necessary costs for a company. • e.g. Rent for buildings, electricity, telephone

6. DESCRIBINGTRENDS Rise and fall Business often need to talk about the movement of sales, prices, interest rates, profit and loss, etc. Here are some of the words used to describe thesetrends ( = movements, changes): rise/go up/increase rise slowly/slightly rise sharply fall /go down fall slowly go down sharply

7. VERBS OR NOUNS VERB (ACTION) NOUNS (THING) • a rise • an increase • an improvement • a recovery • a growth • an upturn • an upward trend • an advance • a boost • to rise • to increase • to improve • to recover • to grow • to turn up • to pick up • to strengthen • to boost • to edge up • to go up • to rocket U P W ARD

8. VOCABULARYUpward trends to improve (-ed, -ed, -ing) = to make something better than it was before. to increase (-ed, -ed, -ing) = to become larger in amount, number or degree. to recover (-ed, -ed, -ing) = to increase or improve after a difficult period or fall. to rise (rose, risen-rising) = to increase in number, amount or value.

9. VOCABULARYUpward trends to grow (grew – grown) = to increase in amount, size or degree. to pick up(picked up) = to improve. to turn up (turned up) = suddenly becoming better. to strengthen (-ed) = to increase in value;to improve the financial situation

10. VOCABULARYUpward trends to boost (boosted) =To make something increase by an external push or help to edge up (edged up) = to increase by a small amount. to go up(went up, gone up)= to rise, to increase to rocket(rocketed) = to rise or increase quickly and suddenly.

11. VERBS OR NOUNS VERB (ACTION) NOUNS (THING) • To fall • To drop • To decrease • To go down • To reduce • To cut • To plummet • To plunge • To slash • To halve • To weaken • a fall • a drop • a decrease • a decline • a reduction • a cut • a slump • a downward trend DOWNWARD

12. VOCABULARYDownward trends to fall(fell- fallen) = to go down to a lower level, price or amount. to drop(dropped) = to fall to a lower level or amount. to decrease(decreased) = to go down to a lower level, to make sth do this. to go down(went down , =to move to a lower level. gone down)

13. VOCABULARYDownward trends to reduce (reduced) = to make sth less or smaller in price, amount or size. to cut(cut –cut) = to reduce prices , amounts, money. to plummet(-ed) = to suddenly and quickly go down in value or amount. Plunge. to plunge(plunged) = to suddenly go down by a large amount. Plummet.

14. VOCABULARYDownward trends to slash(slashed) = to greatly reduce an amount, price or money to go down to half or a previous amount, level, price. to halve(halved) = to begin to fall in value, e.i. Investments, prices, currencies, etc to weaken(weakened) =

15. Business and the Economy • In order to grow/ expand (get bigger) and thrive/prosper (do well/be successful), many companies want or need the following: • Low inflation • Low interest rates • Economic and political stability So prices do not go up So the company can borrow money without paying a lot of interest. Things remain steady and stable and there are no sudden changes in the economy and politicalsituation.

16. A healthy or strong economy is in good condition.

17. An ecocomy in recession is in a period of reduced and slow business activity.

18. Tax cuts = tax reduction / lower taxes so companies can keep more of their profits. This often depends on government expenditure, e.g. the government will not be able to reduce taxes if public expenditure continues to rise.

19. Exercises • What single word or phrace is being defined • in each of these sentences? • Money you borrow from a bank for your business. • What you must pay the bank if you borrow money. • The continous increase in the price of things. answers

20. Exercises • What single word or phrace is being defined • in each of these sentences? • The things you hope to do/achieve within a period of time. • When a company does not make a profit or a loss. • When an economy is in a period of reduced and slow business activity. answers

21. Exercises • Replace the underlined word(s) in each sentence with • another word that has the same meaning. • 1. There has been a slow rise in sales. • This comes after a dramatic fall last year. • Fortunately the company is doing well now. answers

22. Exercises • Replace the underlined word(s) in each sentence with • another word that has the same meaning. • And it’s growing very quickly. • This is one of their main objectives. • Profits have risen considerably. answers

23. Exercises: Describing graphs. • Look at the graph and complete the sentences with • one word for each gap. • In 1996 sales • In the following year they • In 1998 there was a in sales. • In 1999 business improved and there was a • 5. And in 2000 sales . • 6. In the fiv-year period sales by 40,000. answers

24. Describing trends

25. Exercises • Fill the gaps to form compounds words or common phrases. _________ expenditure _________ stability 2. tax _________ 3. answers

26. Exercises • Fill the gaps to form compounds words or common phrases. _________ rate 4. raw _________ 5. Profit and _________ 6. answers

27. Exercises 5. Can you answer these questions about your own country? What is the current inflation rate? 2. If you borrowed $10.000 from your bank, what would the interest rate be approximately?

28. Exercises 5. Can you answer these questions about your own country? What is the state of the economy at the moment? Is it strong? Is it in recession? 3. 4. Do you think businesses are Optimistic about the future?

29. Exercises 5. Can you answer these questions about your own country? Has the government reduced company taxes or personal taxes in the last twelve months? 5. 6. Has public expenditure risen or fallen in the last twelve months?

30. Answer sheet • What single word or phrace is being defined • in each of these sentences? • Money you borrow from a bank for your business. • What you must pay the bank if you borrow money. • The continous increase in the price of things. a loan interest inflation Back

31. Answer sheet • What single word or phrace is being defined • in each of these sentences? • The things you hope to do/achieve within a period of time. • When a company does not make a profit or a loss. • When an economy is in a period of reduced and slow business activity. Aims Objectives It breaks even recession Back

32. Answer sheet • Replace the underlined word(s) in each sentence with • another word that has the same meaning. • 1. There has been a slow rise in sales. • This comes after a dramatic fall last year. • Fortunately the company is doing well now. increase sharp thriving prospering Back

33. Answer sheet • Replace the underlined word(s) in each sentence with • another word that has the same meaning. • And it’s growing very quickly. • This is one of their main objectives. • Profits have risen considerably. expanding aims/goals gone up increased Back

34. Answer sheet • Look at the graph and complete the sentences on the • left with one word for each gap. • In 1996 sales • In the following year they • In 1998 there was a in sales. • In 1999 business improved and there was a • 5. And in 2000 sales • 6. In the fiv-year period sales by 40,000. increased slightly went down slowly sharp fall gradual rise. rose sharply/dramatically. went up / rose Back

35. Answer sheet • Fill the gaps to form compounds words or common phrases. public expenditure economic and political stability 2. tax cuts/ reductions 3. Back

36. Answer sheet • Fill the gaps to form compounds words or common phrases. interest rate 4. raw material 5. Profit and loss 6. Back