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8. Self-study task

To find out more information about the topic go to:

  • http://www.bbc.co.uk/schools/gcsebitesize/business/environment/ stateofeconomyrev1.shtml

  • http://www.bbc.co.uk/learningzone/clips/business-and-work-in-beijing/1327.html

Key Vocabulary (Unit 5)

Nouns:

accountancy

availability

labour

outsourcing

recession

rise

shipping

tax

trend

unemployment

wage

workforce

Adjectives:

average

competitive

domestic

legal

nationwide

Verbs:

to affect

Phrases:

chamber of commerce

exchange rate

government policies

labour costs

to make cuts

market-oriented economy

raw materials

to retain one’s position

shopping basket

trade association

Unit 6 Company Performance

(CD) 1. Listen, then read, paying attention to the words in the bold.

Companies need to know how they are performing in order to analyse problems, find solutions and make plans for the future. Management accounts provide data about operational efficiency and financial accounts give information about financial performance. These tell the company not only how much it is selling, or how much revenue it is receiving, but also what its costs are - how much it has to pay for the different things that it needs in order to operate. With this information a company can then calculate how much money it has made (profits) or how much it has lost (losses) during a specific period. Listed companies, whose shares are sold on the stock exchange, have to present their accounts to the public in an annual report.

  1. Read the information below. What’s an annual report?

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

MTS Employee Supplement to the 1994 Annual Report

    1. Answer the questions:

1. What is the purpose of an annual report?

2. What is the most important function of it?

3. What are stakeholders?

b) There are different people who are either directly or indirectly involved with a listed company. Match the words for people with their corresponding definitions:

  1. a director

a) has bought shares in the company

  1. a chief executive officer

b) is in charge of the board

  1. a stockholder

c) is a member of the board

  1. a chief financial officer

d) is an outside financial specialist

  1. a chairperson

e) is responsible for finance

  1. an auditor

f) is responsible for all operations

(CD) 3. Listen to a business analyst talking about IKEA paying attention to the following words and phrases.

global presence

to expand

to account for

significant

supplier

to establish a link with

proximity

reliable

distribution channel

(CD) a) Listen again and complete the tables: