COMPANY TRENDS

The new electronic interdependence recreates the world in the image of a global village. Year: 1962 Author: Marshall McLuhan (1911-1980) More than four decades ago, the Canadian historian and mass-communication theorist, Marshall McLuhan used the term global village in his famous book The Gutenberg Galaxy to describe the trends of the electronic mass media collapsing space and time barriers in human communication, due to its capacity to connect people on a global scale. Today we use the phrase global village as a metaphor to refer to the Internet and the World Wide Web. They say that if we reduced the Earths population to a global village of 100 people, it would have the following global structure: There would be 57 Asians, 21 Europeans, 14 North and South Americans, 8 Africans. 70 % of the whole population would be non-white and 30 % white. 50 % of the entire worlds population would be in the hands of 6 global citizens who would come from the United States. 70 of the 100 people would not be able to read. 50 of the 100 people would suffer from malnutrition. 60 of the 100 people would live in substandard housing. Only 1 of the 100 people would have a college education.

In order to clearly understand the figures in the report above we use different types of illustrations such as graphs, tables and charts. A graph is a diagram which shows the relationship between two quantities that vary with one another. It is usually based on two lines called axes: the horizontal axis and the vertical axis. For instance, customer demand for ice-cream changes with every season. We can draw a graph to illustrate the relationship between sales of ice-cream and months of the year.
sales in million Lei 1200 1000 800 600 400 200 0 1 2 3 4 5 6 7 8 9 10 11 12 months of the year

A table is a list of numbers and references arranged systematically in columns. Take for instance the following statement: the elder you get the less ice-cream you eat. The relationship between age and demand could be illustrated in a table.

Age Groups 0-10 10-18 18-30 30-50 0ver 50

Percentages 10% 25% 30% 25% 10%

A chart is a graphical presentation of information. A pie chart is in the shape of a circle, divided into slices like the slices of a pie. Each slice represents a share of the whole, and the bigger the slice the bigger the share. Take for instance national sales of ice-cream.

10% 20%

70%

FACT BOX Pie charts were invented by Florence Nightingale during the Crimean War (1854-1856) to support her argument that more soldiers died from disease than in battle.

A bar chart is a graph on which bars of equal width but varying height are used to represent quantities.
6000 5000 4000 3000 2000 1000 0 1 2 3 4 quarter of the year

A flow chart is a pictorial representation used to describe a process being studied or to plan stages of a project. Example: How to eat an ice-cream cone safely
TEAR OFF UPPER WRAPPER THROW UPPER WRAPPER IN THE BIN KEEP LOWER WRAPPER ON USE RIGHT HAND TO HOLD THE CONE USE TONGUE TO EAT TEAR OFF LOWER WRAPPER THROW LOWER WRAPPER IN THE BIN TAKE SMALL BITES OF THE LOWER WRAPPER WASH HANDS

sales in units

I Draw a graph / table / chart to illustrate the information in the report on the global village. Graphs, tables and charts must be clear, simple and relevant to the objectives of the report. The commentary must be accurate and varied. Transferring information from illustration to text become thus a priority. It is important for graphs, tables and charts to speak the same language with texts. Do you speak the language of trends? VOCABULARY NOTE

There are three basic trends:

There are different verbs and nouns for each trend to describe the movement.

We use the following verbs to describe an upward economic movement: Nouns increase rise raise

Verbs increase (regular verb) rise ( irregular verb rose, risen) raise (regular verb) go up (irregular verb went, gone) be up (irregular verb was/were, been) grow (irregular verb grew, grown) improve (regular verb) enhance (regular verb) extend (regular verb) expand (regular verb) boom (regular verb) soar (regular verb) surge (regular verb) rocket (regular verb)

growth improvement enhancement extension expansion boom soar surge rocket

We use the following verbs and nouns to describe a downward economic movement: Nouns decrease fall drop

Verbs decrease (regular verb) fall (irregular verb fell, fallen) drop (regular verb) go down (irregular verb went, gone) be down (irregular verb was/were, been) decline (regular verb) cut (irregular verb cut, cut) reduce (regular verb) collapse (regular verb) slump (regular verb) plummet (regular verb) tumble (regular verb) plunge (regular verb) crash (regular verb)

decline cut reduction collapse slump plummet tumble plunge crash

We use the following verbs and nouns to describe a constant movement.

Verbs Nouns keep (irregular verb kept, kept) stable/constant hold (irregular verb held, held) stable/constant stability remain (regular verb) stable maintain (regular verb) (at the same level) stay (regular verb) constant stagnate (regular verb) Stagnation

We use the phrases to stand at, to level off , to reach a peak of/ to peak and to bottom out to focus on a particular point before we mention the trends of movement. Example:

In 2003 sales of ice-cream for people in the age group 15-30 stood at 400m LEI as compared to 2002 when they reached a peak of 900m LEI. In August sales peaked and in November they bottomed out. Sales levelled off in May We use adjectives and adverbs to describe changes in terms of (1) degree of change and (2) speed of change. The order is from the least significant to the most significant change. 1. Degree of change Adjectives little negligible slight moderate significant considerable substantial enormous huge vast dramatic Adverbs a little negligibly slightly moderately significantly considerably substantially enormously hugely vastly dramatically 2. Speed of change

Prepositions could make the difference when we describe trends.

Adjectives slow steady gradual swift quick rapid

Adverbs slowly steadily gradually swiftly quickly rapidly

We use from to to refer to the starting point and the end point. Example: Sales plunged from 200m EUR in 2001 to 90m EUR in 2004. We use by to describe the value of the difference itself. Example: Sales have decreased by 110 units this year. We use to to refer to the end point. Example: Sales fell to 90m EUR in 2004.

II

1. Use the information in the vocabulary note to describe the chart below.

2. Complete the following text with suitable prepositions. a. b. c. d. e. Industrial production in the first half-year increased _____ 2.8% The GDP went up ____ 4.3% as compared to last year. Unemployment decreased ____ 8.1% ____ 7.8% in 2003. Labour productivity grew up _____ 9.2% in the industry sector. The latest analysis indicates that the economic growth will stand ____ 4.6% at the end of 2003.

3. Read the information in the vocabulary note and fill in the gaps in the text by following the table. Use suitable verbs and prepositions to describe the change. In Romania unemployment _____ _____ 8.8% at the end of 2001 ____8.1% at the end of 2002. Inflation _____ _____ 30.3 % in 2001 ____ 17.8% in 2002 - the lowest level after 1990. External debt ______ slightly ____ 21.4% of GDP ______ 22.4% in 2001. Foreign direct investments (FDI) ______ _____1269 million USD in 2002 _____ 1154 million USD in 2001. Thus significant efforts have been made to prepare the countrys accession to the European Union. The pace of negotiations will not _____ in order to meet the 2007 target. 2001 2002

unemployment 8.8% 8.1% inflation 30.3% 17.8% external debt 22.4% 21.4% FDI 1154m USD 1269m USD Source: Annual Report of the National Bank of Romania, based on the information from the National Commission of Statistics 3. Read the following text on economic trends. Find similar words or phrases for the words and phrases underlined in the text. Illustrate the information in a graph/table/chart.

In 2001 the economy grew by 5.3% but slowed to 4.4% in 2002, largely due to economic slowdown in the European Union. Growth is forecast to rise to 4.6% in 2003 and 5% in 2004 as structural reforms lead to an improvement in the business culture. Inflation remained stable at 23% in 2002 but it is expected to fall to 14% by 2003 and 9% by 2004. Unemployment soared to 9.2% in 2002 and is largely associated with redundancies caused by restructuring. 4. Choose the correct word to complete each sentence. They are all connected with upward or downward movements. There has been a increase in costs in the last five years. A steadily B steady C stead D steadfast Sales of ice-cream dramatically in the final quarter. A fall B falling C felt D fell The sudden in share prices came as a surprise to everyone. A collapse B collapsing C collapsed D collapsible Total expenditure is expected to from $33,666m in 2003 to $39,666m in 2004. A raise B rice C race D rise A big in spending has never affected the company before. A drop B dropping C drops D dropped During the civil war, the level of investment dropped A sharp B shapely C sharply D sharpish The in business airline communication has accelerated the use of technology as an alternative to taking business trips. A improvement B extension C expansion D increase The research and development budget stood $ 500m over the past few years. A for B by C in D at Prices have rocketed lately due to a increase in raw material costs. A dramatic B slight C moderate D substantial New Yorks stock market has risen 19% thanks to hopes of economy recovery in the United States. A to B by C at D with

5. Use the following graphs to describe the movement of the various objects concerned.

a. production costs
14000 12000 10000 8000 6000 4000 2000 0 1 2 3 4 5 6 7 8 9 10 11 12 production units months of the year

b. overheads
120 100 80 60 40 20 0 1 2 3 4 quarter of the year

c. travel expenses
50 million USD 40 30 20 10 0 1 2 3 4 5 6 7 8 9 10 11 12 months of the year

III 1. Choose one of the words or phrases below to complete the following sentences: web marketing, marketplace, come onto the market, in the market for, on the

million Lei

market, market prices, market research, market value, to market, marketing. Be careful with the tenses. a. b. c. d. e. f. g. h. i. j. We could send someone to our products in England. Let me tell you what I think she is definitely an expensive car. Competition is always welcomed in the They will conduct a before they launch the new products. have plunged due to increased competition. The new office building has just at the beginning of this month. The revolutionary electronic system is not yet. We have decided to sell the old plant at $ 1000 below its I have not met the new director yet. Due to a significant growth of purchases off line, e-companies are improving their strategies. VOCABULARY NOTE

Marketing is the process of planning, designing, pricing, promoting and distributing ideas, goods and services, in order to satisfy customer needs, so as to make a profit. The five Ps of marketing are:

Product decide what to sell Packaging decide what materials to use to protect and present products
before they are sold Price decide what price to charge Place decide how products will be distributed and where customers will buy them Promotion decide how products will be supported with advertising, etc

We describe products that are more expensive than other products of the same type as upmarket products. If you buy such products you move upmarket. Demand for better quality at lower price could be referred to as mid-market product demand. Low-priced products may be referred to as downmarket, but this term usually shows disapproval. We use the term mass market products for non-luxury goods that sell in large quantities. The term niche market refers to a small group of buyers with special needs, which may be profitable to sell to. 2. Describe the global products you have learnt about in Unit 4 in terms of upmarket / midmarket / mass market / downmarket / niche market products. Provide reasons for your choice. 3. Consider the rule of the 5 Ps in marketing the global products. FACT BOX

Stock market or Stock exchange refers to the place where stocks and shares are publicly bought and sold. The term Wall Street, which is used to refer to the American money-market, dates far back as 1653 when a 12-foot-high wood stockade was erected across lower Manhattan from river to river to protect Dutch settlers from attacks by the British and the Indians. The Wall Street of today is located along the line of the stockade. The term bear in phrases such as bear market comes from bear skin jobbers who were known for selling skins from bears that they had not caught yet. It is used to refer to those who sell shares assuming that the market will continue to fall and that his/her own selling will accelerate the decline. Then he/she will be able to buy back at a lower price. Bull and bear baiting were once popular sports; as a result, bulls was considered the opposite of bears. If bears were those who sold thinking prices were slumping, bulls would be those people who bought shares in expectation that prices would be rocketing and they would be able to sell at higher prices and make profit. When describing a market it is possible to say use the adjectives bearish / bullish as in bearish market or bullish market. The term stag is used only in the UK and it refers to the person who buys newly issued shares in the expectation of a heavy subscription and a rapid rise in price. A bond is a certificate issued by a government or a company acknowledging that money has been lent to it and would be paid back with interest.

IV

1. Analyse the three situations below. Choose the bear, the bull and the stag. a. Devaluation is expected to have a negative influence on share prices. Last night they decided to sell all their shares. b. The Malaysian government was privatising Petronas Gas in 1995. Shares were being offered at the lowest prices. A few small firms bought as much as they could. c. Shares prices boomed in the final quarter of last year. He bought 10,000 shares. OPINION BOX

No price is too low for a bear or too high for a bull. Stock Exchange Proverb Is it not odd that the only generous person I ever knew, who had money to be generous with, should be a stockbroker. P.B. Shelly Cut your losses and let your profits run. American proverb

2. Match the words and phrases in the left-hand column with their definitions in the righthand column: stocks shares investor trader speculator individual investor institutional investor bull bear bond stock parts/portions of the companys capital which are issued in fixed amounts parts/portions of the companys capital which are not issued in fixed amounts a person who takes large risks in the hope of making quick large gains a person who buys and owns stock a person who buys and sells stock a financial institution which invests large amounts of money in the stock individual or retail investor who invests his/her own money a person who thinks stock prices will go down a person who thinks stock prices will go up it represents ownership in a corporation it represents loan from bondholder to a company

FACT BOX Cash flow of a business is the actual movement of money into and out of it, independently of how much it owes or is owed. Cash flow is also used to refer exclusively to cash flowing into a company from sales. Trade credit refers to the period of time agreed upon by any company supplying goods and/or services to another company from the moment of delivery to the moment of payment. Accounts receivable or receivables are the amounts that a company is waiting to be paid by its customers. Customers owing money in this way are called debtors. Accounts payable or payables represent the money that a company owes to its suppliers. Suppliers waiting to be paid are called creditors.

V Fill the gaps by choosing one of the words or phrases in the box to complete the following sentences related to cash flow. creditors debtors payables receivables accounts receivable trade credit accounts payable cash flow

a. The latest market research estimate that their company can generate of 15m a year. b. They argued that we didnt give them any as we agreed before. c. She managed to convince the board that the lack of control of costs was due to an extremely flexible system. d. They have never recognized the fact that they had no but plenty of e. Our have already notified us that if we didnt comply with August they wouldnt deliver anything in September. f. She is implementing her strategy of doing away with any .

VI Trends in clothing market sector have shown that mid-market products sell more than mass market or upmarket brands. 1. Describe the trends in clothing sales illustrated in the chart below. Are the figures realistic for the Romanian market?

Since business casual wear came onto the scene, employees have been pushed back into the emperors confusion what new clothes to wear to keep up with the trends. FACT BOX In H.C. Andersens fairy tale The Emperors New Clothes an emperor, who is exceedingly fond of beautiful new clothes, is persuaded by two swindlers that they have fitted him with a suit of fine clothes that are invisible to anyone who is unfit for his position or stupid, but in fact the clothes did not exist. He pretends to admire them and wear them proudly until a little child sees him and cries But he doesnt have anything on! The emperor has no clothes has become a saying which could refer to a situation in which a sensible person at last points out that what the majority of people blindly accept as existing or true (because other more influential people have said so) does not in fact exist or is completely false.

More than 2/3 of the American business people are uncertain about the difference among business wear, business casual and casual dress in the workplace. 30% of those surveyed said that it is harder today to decide what is acceptable wear than it was ten years ago. Depending on your position in the organization, for men business casual wear means sport coat without a tie or tie without a jacket and for women pants, blouse and jacket or skirt and top or dress. The higher up in the company the formal the casual business wear. However, business casual wear has never meant Tshirts and shorts or clothes with frayed edges or showing your stomach, thighs or cleavage. OPINION BOX Are you familiar with the concept of Casual Friday? Has the concept of Casual Friday been adopted in Romania? What are the trends of casual Friday business wear worldwide / in Romania? Have you ever heard of the dress down day? Do you think Romanian companies should adopt the dress down day?

 LANGUAGE NOTE Clothing is an uncountable noun in English. English nouns can be divided into countable nouns and uncountable nouns. The distinction between nouns that can be counted and nouns that cannot be counted is a grammatical distinction it is obvious that in reality we can count money although grammatically money is an uncountable noun. Countable nouns have a singular and a plural form, e. g. jacket jackets; dress dresses; machine machines. We use many and several before countable nouns. Uncountable nouns have only one form. This may be grammatically singular, e. g. clothing, equipment, information, money, news, advice, or grammatically plural, e.g. personnel, police. We use the singular form of the verb with grammatically singular nouns, e. g. The news is fantastic! We use the plural form of the verb with grammatically plural nouns, e.g. The police have arrested the CEO. We use much and little before uncountable nouns. We cannot use a/an in front of uncountable nouns. We use some in front of uncountable nouns. When we refer to specific pieces of an uncountable substance , we use a piece of, a bit of before a large number of uncountable nouns, e.g. a piece of chalk, a bit of information. For a limited number of uncountable nouns, we use fixed phrases such as a bar of chocolate, a cube of ice, a sheet of paper, a slice of bread, a lump of sugar, a box of matches, a metre of cloth, a game of football, a pair of jeans, a bunch of flowers. VII 1. Choose the correct word to complete the text He is executive / an executive in the company I have applied for. They are in a clothing / clothing industry. The good news are / is they have promoted me thanks to his proposal. He gave me an advice / advice how to improve my efficiency. The information he passed on is / are from brochure / a brochure. They have made a progress / progress this year. The board are / is wondering how successful he could get. The personnel is / are happy with his unusual management style. He offers a bunch / bench of flowers to the most efficient female employee and a pair / pack of jeans to the most efficient male employee every month. 2. Identify the following nouns as countable nouns ( C ) or uncountable nouns ( U ). Information Money Sugar Rice Grapes Machinery Equipment Luggage Travel

Trip Traffic Web sites Web marketing

3. Decide on the following nouns whether they are countable or uncountable. Use each of them in sentences of your own: clothes, experience, land, people, fish, wine, pollution, police, department, board, advice, commerce, business, employment, work, accommodation. 4. A, an or some ? Fill the gaps by using a / an or some. a. His father is executive. I am consultant and she is accountant. b. Im going on business trip with colleagues from the head office. c. Id like information, please. d. What successful negotiation! I have never seen better negotiator. e. Ive got idea. Lets postpone the appointment. f. When I was junior executive I used to work less than I do now as senior. g. Have dates! Our Tunisian partner has brought us this morning. h. of the staff can speak perfect English. i. Would you like wine? j. I asked the secretary to do typing for me. LANGUAGE NOTE We use quantity terms with countable and uncountable nouns, little with uncountable nouns and few and quite a few with countable nouns, a lot with both countable and uncountable nouns as it follows: - if we mean not much we shall use little - if we mean not many we shall use few - if we mean a rather large number we shall use quite a few - if we mean a rather large amount/number we shall use a lot 5. Use little, a lot, few or quite a few to replace the underlined phrases in the following sentences: a. The head of the department spends a rather large amount of time with the new employee. b. We do not spend much money on TV advertising because do not believe it works. c. During the business lunch they drank a rather large amount of wine. d. There are not many investors interested in buying land in this region. e. A rather large number of executives came to the AGM. f. The new employee does not know many of his colleagues. g. He doesnt have much experience. h. After the presentation she asked a rather large number of questions.

VOCABULARY NOTE

To affect means to influence. An effect is a result or consequence of an action as in the phrase cause and effect chain. Effects in the plural form means personal property, possessions. We can use effect in the sense of impact. In effect means for practical purposes, in fact. To effect has a formal meaning to make. VIII Use either affect or effect to complete the following sentences. Be careful with the tenses ! a. b. c. d. e. f. g.

The civil war has already the tourism industry. Personal are not included in a curriculum vitae. The tax increases have the elder population. The three planning strategies are, , identical. They postpone delivery until payment are We expanded our activities in Malaysia but with little The decision of the board did not his plan. VOCABULARY NOTE

We use to borrow when we receive or obtain something temporarily with the promise or intension of returning it. Borrow is a regular verb. The preposition we usually associate with to borrow is from. We use to lend when we give or allow the use of something temporarily on the understanding that it will be returned. Lend is an irregular verb (lent, lent). The preposition we usually associate with to lend is to. IX a. b. c. d. e. 1. Choose the correct answer to complete the following sentences. Last week I lent / borrowed some money from the bank. Ive forgotten my dictionary at home. Could I lend / borrow yours? Could you lend / borrow me $500 ? Ill pay you back first thing in the morning. Banks are lending / borrowing money at a competitive rate of interest. He is always lending / borrowing money from us and he has never paid us back a cent. f. I lent / borrowed that CD to my colleague and he has not returned it yet. VOCABULARY NOTE

We use the term bank loan when we refer to a sum of money which a bank lends to a person or company ( who is called the borrower) for a fixed period and usually with approved security. Those who borrow money in this way have to pay interest. An overdraft is a term used in the UK to refer to the situation in which you are allowed to take out more money from your bank account than you have in it. The bank charges interest on daily basis and it is usually less than for a loan.

2. Here is a list of words and phrases that you can associate with the business terms overdraft and/or bank loan. Choose the suitable words and/or phrases for the two business terms. Sometimes you can use the same words and/or phrases for both. Use them in sentences of your own. money borrow fixed amount of money bank account lend interest specific period daily calculation of interest take out borrower

X A company reports its performance in a particular period in its results. Results for a particular year are shown in the companys annual report. The annual report contains a BrE profit and loss account / AE income statement. If a company makes more money than it spends it makes a profit. If not, it makes a loss. A companys gross profit is before charges are taken away. Net profit is afterwards. The bottom line is an informal way of talking about the results of a company: the so-called bottom line of the profit and loss account refers, in fact, to the final figure of profit and loss account. 1.What is the bottom line of the profit and loss account of the company you work for or you are interested in applying for?

XI

1. Choose the correct phrase to complete the following sentences. a. His assets/fixed assets/current assets included shares in the company and a house in Poiana Brasov. b. The good will/good sense/good looks is being sold together with the shop. c. As a result of dramatic economical changes, shares in the company have depreciation/depreciating/depreciated. d. A loan that a company has to repay to the bank over ten years is a current liability/long-term liability/balance sheet.

VOCABULARY NOTE

We use the term assets to refer to something that has value, or the power to earn money. Current assets refer to the following: money in the bank investments that can easily be turned into money money that customers owe stocks of goods that are going to be sold Fixed assets refer to equipment, machinery, buildings and land. Intangible assets refer to things you cannot see: good will which describes a companys good reputation with existing customers brands, i.e. established brands have the power to earn money Assets such as machinery and equipment lose value over time because they wear out and are no longer up-to-date. This is called depreciation. Liabilities refer to a companys debts to suppliers, lenders, tax authorities. Current liabilities are debts that have to be paid within a year. Long-term liabilities are debts that have to be paid in more than a year: e.g. bank loans. The balance sheet illustrates the companys assets and liabilities at the end of a particular period, usually the 12-month period of its financial year.

2. What are the main assets and liabilities in the current balance sheet of the company you work for or you are interested in applying for?

XII A pay, pay-day, payroll, pay, pay back, pay for, pay off, payable or payment? Use one of the above to complete the sentences. Be careful with the tenses! a. Instalments are on the last day of the month. b. Dont worry! Ill you next week. c. He always gets drunk on his d. I have applied for a company with 1000 employees on the e. We have agreed on monthly f. He surprised everyone when he the car in cash. g. Eventually they managed to their debts. h. increase was more than he expected. i. Are you in cash or by cheque ?

XIII

Price, charge, fee or commission ?

1. What are the missing words in the following definitions? A .is a payment to an agent calculated as a percentage of sales made and which increases with the quantity of goods sold. is used mostly in the context of paying for services. A is payable for services provided by the legal profession, consultants, accounts, etc. The is the amount of money you have to pay usually for goods in order to buy them.

2. Choose the correct answer to complete the following sentences: a. Share prices / charges / fees / commissions have soared this month. b. Higher prices / charges / fees / commissions increase competition among salesmen. c. Internet use in hotel rooms is usually free of price / charge / fee / commission. d. I dont think I can afford the lawyers prices / charges / fees / commissions. e. The higher the price / charge / fee / commission the lower the demand. f. We have agreed on a moderate membership price / charge / fee / commission. g. An extra price / charge / fee / commission for confirming the letter of credit has not been discussed yet.

XIV 1. Choose the correct word from the table below to complete the following sentences. Use the information in the vocabulary note below.

salary

wage perks

earnings

income revenue

a. As a result of successful negotiations, they offered their Romanian agent $1000 _________. b. The managers _________ include a car provided by the company. c. She must have gone bankrupt by now since she spent all her ___________. d. The ____________ of the City Council is rather high. e. _________ are paid on Fridays. f. Tax is payable on all _______ over 2000.

VOCABULARY NOTE

We use the term salary to refer to the monthly payment which is made to professional employees, usually by bank transfer. Wages are paid weekly to manual or unskilled workers. Perks (also known as fringe benefits) are extra payments made in kind: e.g. a company car, free accommodation. In many job advertisements the combination of salary plus perks is referred to as remuneration package. We use the term earnings to refer to the sums of money earned by working. The word earnings is always in the plural form. Common expression with earnings are: earnings per share and price/earnings ratio. Income is a synonym for earnings but may include unearned income acquired from other sources: e.g. share dividends, property or other investments. It is subject to income tax. Revenue is similar in meaning to income but it is more likely to refer to the money that a company or an organisation receives through sales. We would not normally refer to a private individuals income as revenue. In Britain, the government department responsible for tax collection is Inland Revenue. XV Sometimes colours and trends go together hand in hand. Choose the right colour (white, black, blue, red, green) to complete the following sentences. a. ________ chip is largely used to refer to industrial share considered to be a safe investment. b. Stolen goods sell well on the __________ market. c. A ________ elephant refers to possession that is useless and often expensive to maintain. d. It takes weeks to get through the _________ tape. e. Being in the _______ means having more liabilities than assets. f. This payment will get me out of the _________. g. We call ______ legs people who work when their fellow workers are on strike. h. I have never accepted a _______ collar job. I will always be a _______ collar employee. i. If I have money in my bank account it means I am in the _________. j. The negotiator made it clear that they wanted the contract in _______ and _____ otherwise they would never give the production team the _______ lights.

XVI a. b. c. d. e. f. g. h. i.

Read the text on famous bankruptcies and answer the following questions: Define bankruptcy. How can you predict the misfortune ? Refer to the symptoms of bankruptcy. Do you think it is best to file for bankruptcy ? Who was the famous seventeenth century painter who filed for bankruptcy? Who was Jacob Peter Thomasz and what did he do? What was the Paige Compositor? What did Mark Twain do to repay his debts? What happened in June 1903 ? Who was the owner of the town of Braselton, Georgia ?

Why me of all people ? We globally wonder so many times whenever we feel we are the only ones to suffer from so frequent misfortunes which are usually money-related. Bankruptcy is the word that all business people hate the most. The state of being unable to pay all your debts in full this is how the dictionary defines the most terrible thing that we all fear. An appointment postponed, a meeting cancelled , a business lunch forgotten, a smiling face never to be seen again, a phone call never returned, a promise unfulfilled But there were others before us who did have similar financial difficulties and filed for bankruptcy to discharge their debts without fear of all this. Rembrandt Haremenszoon Van Rijn, the famous seventeenth century Dutch painter, accumulated more debts than he could repay and filed for bankruptcy at the age of 50 in 1656. Jacob Peter Thomasz, a lawyer, supervised the sale of his assets in 1657 and 1658. Many of Rembrandt's paintings and his house were sold at an auction. After the bankruptcy, he continued to paint but was not allowed to sell his works directly to customers. However, he managed to find a solution to his misfortune: his son took over his business and sold his paintings. Mark Twain (1835-1910), the famous American writer, lost most of his money investing in a worthless machine called the Paige Compositor, an automatic typesetting machine. He filed for bankruptcy in 1894 and discharged all his debts, but was determined to repay the debts. He knew he could earn money by giving lectures to large audiences, so he travelled to Europe and spent the next four years lecturing in every major city and he managed to repay all his debts. Henry Ford (1863-1947), the automobile manufacturer, survived the failure of his first two automobile manufacturing companies. The first company filed for bankruptcy and the second ended because of a disagreement with his business partner. In June , at the age of 40, he created a third company, the Ford Motor Company with a cash investment of $28,000.00. By July of 1903 the bank balance had plunged to $223.65, but then Ford sold its first car, and as they say the rest is history.

Kim Basinger, the famous actress, earned so much money from her movies that she was able to purchase the town of Braselton, Georgia. After the purchase she was sued for breach of contract for pulling out of the movie, Boxing Helena. She was not able to pay the damages resulting from the suit and filed for bankruptcy in 1993. As part of her bankruptcy she sold the town. She later married Alec Baldwin, had a child and won an Oscar for her role in the movie L.A. Confidential.