UNIT 7

BUSINESS
SECTION A: ACCOUNTING AND FINANCE
TASK SHEET 1:
Match up the terms on the left with the definitions on the right.

1 bookkeeping
2 accounting

A
B

3 managerial accounting

4 cost accounting

5 tax accounting

6 auditing

7 creative accounting

calculating an individuals or a companys liability for tax

writing down the details of transactions
(debits and credits)
keeping financial records, recording income and
expenditure, valuing assets and liabilities
preparing budgets and other financial reports
necessary for management
inspection and evaluation of accounts by a
second
set of accountants
using all available accounting procedures and tricks
to disguise the true financial position of a company
working out the unit cost of products, including materials,
labour and all other expenses

TASK SHEET 2:
Match up these words with the definitions below:
assets depreciation liabilities turnover creditors (GB) or accounts payable (US)
debtors (GB) or accounts receivable (US) overheads (GB) or overhead (US)
revenue or earnings or income shareholders (GB) or stockholders (US)
stock (GB) or inventory (US)
1. a companys owners
2. all the money received by a company during a given period
3. all the money that a company will have to pay to someone else in the future, including taxes,
debts, interest and mortgage payments
4. the amount of business done by a company over a year
5. anything owned by a business (buildings, machines, so on) that can be used to produce goods or
pay liabilities
6. the reduction in value of a fixed asset during the years it is in use
7. sums of money owed by customers for goods or services purchased on credit
8. sums of money owed by suppliers for purchases made on credit
9. raw materials, work in progress and finished products stored ready for sale
10. various expenses of operating a business that cannot be charged to any one product, process and
department

TASK SHEET 3:
ACCOUNTING AND FINANCIAL STATEMENTS
Insert the words in the box above in the gaps of the following text:
In accounting it is always assumed that a business is a going concern that it will
continue indefinitely into the future, which means that the current market value of its fixed assets
is irrelevant, as they are not for sale. Consequently, the most common accounting system is
historical cost accounting, which records (1) at their original purchase price,
minus accumulated depreciation charges. In times of inflation, this understates the value of
appreciating assets such as land, but overstates profits as it does not record the replacement cost
of plant or (2) The value of a businesss assets under historical cost accounting
purchase price minus (3) - is known as its net book value.
Company law specifies that (4) must be given certain financial
information. Companies generally include three financial statements in their annual reports.
The profit and loss account (GB) or income statement (US) shows (5)
and expenditure. It usually gives figures for total sales or (6) , and costs and
(7).. The first figure should obviously be higher than the second, namely
there should be a profit. Part of the profit goes to the government in taxation, part is usually
distributed to shareholders as a dividend and part is retained by the company, for it to be able to
cope with possible future threats.
The balance sheet shows a companys financial situation on a particular date, generally
the last day of the financial year. It lists the companys assets, its (8) and
shareholders funds. A businesss assets include (9) and it is assumed that these will
be paid. Liabilities include (10) , as these will have to be paid. Negative items on
financial statements, such as creditors, taxation and dividends paid are usually enclosed in
brackets.
In accordance with the principle of double-entry bookkeeping (that all transactions are
entered as a credit in one account and as a debit in another), the basic accounting equation is:
Assets = Liabilities + Owners Equity
This can be rewritten as:
Assets Liabilities = Owners Equity or Net Assets
This includes share capital (money received from the issue of shares), share premium (GB) or
paid-in surplus (US) (any money realized by selling shares at above their nominal value) and
the companys reserves (including the years retained profits). Shareholders equity or net assets
are generally less that a companys market capitalization (the total value of its shares at any
given moment, meaning the number of shares times their market price), because net assets do not
record items such as good will.
The third financial statement has various names, including the source and application of
funds statement and the statement of changes in financial position. This shows the flow of
cash in and out of the business between balance sheet dates. Sources of funds include trading
profits, depreciation provisions, sales of assets, borrowing and the issuing of shares. Application
of funds includes purchases of fixed or financial assets, payment of dividends, repayment of
loans and trading losses.

TASK SHEET 4:
Match the definitions with the correct money word:
1. a fixed amount which is paid, usually monthly, to workers of higher rank
2. an amount of money which you lend to someone
3. a sum of money which is owed to someone
4. paid while travelling, especially on public transport, buses, trains, etc.
5. paid to the government for services that the state provides
6. paid as a punishment for breaking the law
7. money paid by a company or the state on your retirement
8. money paid by the state, usually to students
9. money paid for professional services, e.g. to a doctor
10. money which is in the form of coins and notes, not cheques
11. an amount of money you receive, usually weekly, in return for labour or service
12. money paid by divorced father to his former wife to upkeep his children
13. tax on imported articles paid to the customs
14. paid at a restaurant after eating
15. extra percentage paid on a loan

salary
fare
taxes
loan
debt
cash
fee
limon
duty
interest
grant
pension
fine
bill
wage

TASK SHEET 5:
Give the name for the following definitions:
a) money paid to authors or inventors according to the sales of their work
b) a sum of money used to make more money from something that will increase
in value
c) the money which a building society or bank lends to someone to buy a house
d) the money that a person pays to an insurance company to protect against loss or
damage
e) money, usually from a relative, to live on
f) an amount of money, related to the value of goods sold, which is paid to a
salesman for his services
g) part- payment of money which you make to stop the seller from selling his
goods to others
h) part of the value of a company that you may buy
i) money paid by divorced or separated people to support the former husband or
wife
j) the amount of money that goes to a shareholder
k) money received from someone in his or her will
l) the amount of money borrowed from a bank, greater than that which is in your
account
m) an additional payment which is a reward to those who work for a company for
their extra work

an a-------a m------a s---r-------a p-----an o-------m---------a l----an I--------a d------a d-----c--------a b----

TASK SHEET 6:
Choose the correct answer and fill in the blanks:
1. The..of the pound has fallen recently.
a. expense
b. price
c. value

d. worth

2. The accounts show a ..of $ 500 this month.

a. decrease
b. deficit
c. deterioration

d. devaluation

3. The bank will require three signatures when you open an account.
a. natural
b. sample
c. specimen
d. trial
4. Im afraid that the bank will refuse my application for an extended . .
a. balance
b. compensation c. estimate
d. overdraft
5. At this bank you can get 17%..on your own savings.
a. interest
b. rate
c. rent
d. salary
6. I want $ 500 worth of French francs. What is the rate, please?
a. currency
b. exchange
c. market
d. money
7. Miss Positivethe bank manager that she would be able to repay the loan.
a. assured
b. ensured
c. certified
d. insured
8. The debt should be paidwithin thirty days of receiving this statement.
a. all over
b. as a whole
c. for good
d. in full
9. Please find enclosed ourscale for life insurance premiums.
a. gauging
b. raising
c. sliding
d. slipping
10. Reminders must be sent out to all customers whose accounts are more than a month .
a. indebted
b. overdue
c. unbalanced
d. unpaid

SECTION B: BANKING, STOCK AND SHARES, BONDS

PERSONAL BANKING
TASK SHEET 1:
Match up the following terms with the definitions on the right:
1. cash card

A. 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

2. cash dispenser

B. a fixed sum of money on which interest is paid, lent for a

fixed period and, usually, for a specific purpose

3. credit card

C. a loan, usually to buy property, which serves as a security

for the loan

4. home banking

D. doing banking transactions by telephone or from ones

personal computer, linked to the bank via a network

5. loan

E. one that pays interest, but usually cannot be used for paying
checks and on which notice is often required to withdraw
money

6. mortgage

F. one that generally pays little or no interest, but allows the

holder to withdraw his or her cash without any restrictions

7. overdraft

G. a plastic card issued to bank customers for use in cash

dispensers

8. standing order

H. an instruction to a bank to pay fixed sums of money to

certain people or organizations at stated times

9. current account (GB)

checking account (US)

I. a computerized machine that allows bank customers to

withdraw money, check their balance and so on

10. deposit account (GB)

time or notice account (US)

J. an arrangement by which a customer can withdraw more

from a bank account than has been deposit in it, up to an
agreed limit; interest on the debt is calculated daily

TASK SHEET 2:

TYPES OF BANKING

1. COMMERCIAL BANKING
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
currency 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
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.
2. INVESTMENT BANKING
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 in the USA are similar, but they can only act as intermediaries offering advisory
services and do not offer loans themselves. Investment banks make their profits from the fees and
commissions they charge for their services.
3. UNIVERSAL BANKING
In the USA, the Glass-Steagall Act of 1934 imposed a strict separation between commercial banks and
investment banks or stockbroking firms. Yet the distinction between commercial and investment banking
has become less clear in recent years. Deregulation in the USA and Britain is leading to the creation of
financial supermarkets: conglomerates combining the services previously offered by banks,
stockbrokers, insurance companies, and so on. In some European countries (notably Germany, Austria
and Switzerland) there have always been universal banks combining deposit and loan banking with share
and bond dealing and investment services.
4. INTEREST RATE
A countrys 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 lenders 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.
5. EUROCURRENCIES
In most financial centers, there are also branches of lots of foreign banks, largely doing Eurocurrency
business. A Eurocurrency in any currency held outside its country of origin. The first significant
Eurocurrency market was for US dollars in Europe, but the name is now used for foreign currencies held
anywhere in the world (e.g. yen in the US, DM in Japan). Since the US dollar is the worlds most
important trading currency and because the US has for many years had a huge trade deficit there is a
market of many billions of Eurodollars, including the oil-exporting countries petrodollars. Although a
central bank can determine the minimum lending rate for its national currency it has no control over
foreign currencies. Furthermore, banks are not obliged to deposit any of their Eurocurrency assets at
0% interest with the central bank, which means that they can usually offer better rates to borrowers and
depositors than in the home country.

TASK SHEET 3:
Match the following definitions with the words and expressions from the previous text:
1. to place money in a bank; or money placed in a bank

A. solvency

2. the money used in countries other than ones own

B. currencies

3. how much money a loan pays, expressed as a percentage

C. collateral

4. available cash and how easily other assets

can be turned into cash

D. deposit

5. the date when a loan becomes repayable

E. yield

6. to guarantee to buy all the new shares that a company issues, if they
cant be sold in public

F. maturity

7. when a company buys or acquires another one

G. merger

8. when a company combines with another one

H. portfolio management

9. buying and selling stocks or shares for clients

I. takeover

10. taking care of all a clients investments

J. blue chip borrowers

11. the ending or relaxing of legal restrictions

K. conglomerate

12. a group of companies, operating in different fields,

that have joined together

L. underwrite

13. a company considered to be without risk

M. stock

14. ability to pay liabilities when they become due

N. liquidity

15. anything that acts as a security or a guarantee for a loan

O. deregulation

TASK SHEET 4:
Match up the verbs and nouns below to make common collocations:
charge
do
exchange
issue
make
offer
pay
raise
receive
underwrite

advice
bonds
business
currencies
deposits
funds
interest
loans
profits
security issues

TASK SHEET 5:
STOCKS AND SHARES
Read the following text and answer the questions:
1. Why do people form limited companies?
2. Why do companies issue shares?
3. Why do people buy the shares?
COMPANIES
Individuals and groups of people doing business as a partnership, have unlimited liability for debts, unless
they form a limited company. If the business does badly and cant pay its debts, any creditor can have it
declared bankrupt. The unsuccessful business people may have to sell nearly all their possessions in order
to pay their debts. This is why most people doing business form limited companies. A limited company is
a legal entity separate from its owners and is only liable for the amount of capital that has been invested
in it. If a limited company goes bankrupt, it is wound up and its assets are sold, liquidated in order to pay
the debts. If the assets dont cover the liabilities or the debts, they remain un paid. The creditors simply do
not get all their money back.
Most companies begin as private limited companies. Their owners have to put up the capital
themselves, or borrow from friends or a bank, perhaps a bank specializing in venture capital. The
founders have to write a Memorandum of Association (GB) or a Certificate of Incorporation (US), which
states the companys name. Its purpose, its registered office or premises and the amount of authorized
share capital. They also write Articles of Association (GB) or Bylaws (US), which set out the duties of
directors and the rights of shareholders (GB) or stockholders (US). They send these documents to the
registrar of companies.
A successful company can apply to a stock exchange to become a public limited company (GB)
or a listed company (US). Newer and smaller companies usually join over-the-counter markets. Very
successful businesses can apply to be quoted or listed (i.e. to have their shares traded) on major stock
exchanges. Publicly quoted companies have to fulfill a large number of requirements, including sending
their shareholders an independently-audited report every year, containing the years trading results and a
statement of their financial position.
The act of issuing shares for the first time is known as floating a company (making a flotation).
Companies generally use an investment bank to underwrite the issue, that is to guarantee to purchase all
the securities at an agreed price on a certain day, if they cant be sold to the public.
Companies wishing to raise more money for expansion, can sometimes issue new shares, which
are normally offered first to existing shareholders at less than their market price. This is known as a
rights issue. Companies sometimes also choose to capitalize part of their profit (turn it into capital) by
issuing new shares to shareholders rather than paying dividends. This is known as a bonus issue.
Buying a share gives its holder part of the ownership of a company. Shares generally entitle their
owners to vote at a companys Annual General Meeting (GB) or Annual Meeting of Stockholders (US)
and to receive a proportion of distributed profits in the form of a dividend, or to receive part of the
companys residual value if it goes into liquidation. Shareholders can sell their shares on the secondary
market at any time, but the market price of a share the price quoted at any given time on the stock
exchange, which reflects, more or less, how well or badly the company is doing may differ radically
from its nominal value.

TASK SHEET 6:
Find words or expressions in the previous text, which mean the following:
1. having a responsibility or an obligation to do something (ex. to pay a debt)
2. a person or organization to whom money is owed (for goods or services rendered, or as
repayment of a loan)
3. to be insolvent (unable to pay debts)
4. everything of value owned by a business that can be used to produce goods, pay
liabilities
5. to sell all the possessions of a bankrupt business
6. money that a company will have to pay to someone else (bills, taxes, debts, interest and
mortgage payments)
7. to provide money for a company or other project
8. money invested in a possibly risky new business
9. the people who begin a new company
10. the place in which a company does business: an office, shop, workshop, factory,
warehouse
11. to guarantee to buy an entire new share issue, if no one else wants it
12. a proportion of the annual profits of a limited company, paid to shareholders
ALTERNATIVE TERMINOLOGY
Americans often talk about corporations rather than companies and about an initial public
offering rather than a flotation.
Another name for stocks and shares is equities because all the stocks or shares of a company or
at least all those of a particular category have equal value.
Two other terms for nominal value are face value and par value.
Other names for a bonus issue are a scrip issue (short for subscription certificate) and a
capitalization issue and in the US a stock dividend or stock split.

TASK SHEET 7:
Match the following definitions with the words from the box:
blue chip
defensive stock
growth stock
insider share-dealing
institutional investors
mutual fund
market-maker
portfolio
stockbroker
1.
2.
3.
4.
5.
6.
7.
8.
9.

a company that spreads investors capital over a variety of securities

an investors selection of securities
a person who can advise investors and buy and sell shares from them
a stock in a large company or corporation that is considered to be a secure investment
a stock in an industry not much affected by the cyclical trends that offers a good
return but only a limited chance of a rise or decline in price
a stock which usually has a high purchasing price and a low current rate of return that
is expected to appreciate in capital value
a wholesaler in stocks and shares who deals with brokers
financial organizations such as pension funds and insurance companies which own most
of the shares of all leading companies (over 60% and rising)
the use of information not known to the public to make a profit out of buying or selling
shares

TASK SHEET 8:
There is a logical connection among three of the four words in each of the following groups.
Which is the odd one out and why?
1.
2.
3.
4.
5.
6.
7.
8.
9.

annual report external auditors financial statements stockbroker

blue chip defensive stock growth stock rights issue
bonus issue dividend over-the-counter shareholder
creditor market-maker shareholder stockbroker
debt equity share stock
face value market value nominal value par value
float liquidation share issue underwriter
institutional investor insurance company liabilities pension fund
mutual fund portfolio risk underwriter

TASK SHEET 9:
Read the following text and answer the following questions:

1. Why do most companies use a mixture of debt and equity financing?

2. Why do governments issue bonds?

BONDS
Companies finance most of their activities by way of internally generated cash flows. If they
need more money they can either sell shares or borrow, usually by issuing bonds. More and more
companies now issue their own bonds rather than borrow from banks, because this is often
cheaper: the market may be a better judge of the firms creditworthiness than a bank (it may lend
money at a lower interest rate). This is evidently not a good thing for the banks, which now have
to lend large amounts of money to borrowers that are much less secure than blue chip companies.
Bond-issuing companies are rated by private ratings companies and given an investment
grade according to their financial situation and performance, Aaa being the best and C the worst
(nearly bankrupt). Obviously, the higher the rating the lower the interest rate at which a company
can borrow.
Most bonds are bearer certificates, so after being issued (on the primary market), they can
be traded on the secondary bond market until they mature. Bonds are therefore liquid, although
of course their price on the secondary market fluctuates according to changes in interest rates.
Consequently, the majority of bonds on the secondary market are traded either above or below
par. A bonds yield at any particular time is thus its coupon (the amount of interest it pays)
expressed as a percentage of its price on the secondary market.
For companies, the advantage of debt financing over equity financing is that bond interest
is tax deductible. In other words, a company deducts its interest payments from its profits before
paying tax, whereas dividends are paid out of already-taxed profits. Apart from this tax shield,
it is generally considered to be a sign of good health and anticipated higher future profits if a
company borrows. On the other hand, increasing debt increases financial risk: bond interest has
to be paid, even in a year without any profits from which to deduct it and the principal has to be
repaid when the debt matures, whereas companies are obliged to pay dividends or repay share
capital. Thus companies have a debt-equity ratio that is determined by balancing tax savings
against the risk of being declared bankrupt by creditors.
Governments, of course, unlike companies, dont have the option of issuing equities.
Consequently, they issue bonds when public spending exceeds receipts from income tax, VAT
and so on. Long-term government bonds are known as gilt-edged securities, or simply
gilts (GB) or Treasury Bonds (US). The British and American central banks also sell and buy
short-term (three month) Treasury Bills as a way of regulating the money supply. To reduce the
money supply, they sell these bills to commercial banks and withdraw the cash received from
circulation; to increase the money supply they buy them back, paying with newly created money
which is put into circulation in this way.

TASK SHEET 10:

Match up the words or phrases on the left with the corresponding ones on the right:
1. investors
2. issuing bonds
3. principal
4. maturity
5. pension funds
6. buy-and-hold investors
7. non-payment
8. price appreciation
9. price depreciation
10. capital gains

A. the amount of a loan

B. borrowing money
C. date at which the money will be returned
D. fall in interest rates
E. keep their bonds till maturity
F. default
G. profits on the sale of assets
H. providers of funds
I. retirement money
J. rise in interest rates

TASK SHEET 11:

In each case, which of the three statements is TRUE?
1. Banks loan portfolios are now generally less secure than 20 years ago
A. because bankers are becoming irresponsible.
B. because blue chip companies are becoming irresponsible.
C. because blue chip companies issue their own bonds, and banks that receive deposits still
have to lend money.
2. Bondholders can
A. only get their money back when the bond matures.
B. get their money back at any time.
C. try to get their money back at any time.
3. If interest rates
A. rise above a bonds coupon, the bond will probably sell at above par.
B. fall below a bonds coupon, the bond will probably sell at above par.
C. rise above a bonds coupon, its yield will normally decrease.
4. The fiscal system in most countries makes it advantageous for companies
A. to issue bonds rather than borrow from a bank.
B. to issue stocks or shares rather than bonds as long as they dont make a loss.
C. to issue bonds rather than stocks or shares as long as they make a profit.
5. A. Governments systematically issue bonds to finance public spending.
B. Governments issue bonds to finance public spending when necessary.
C. Governments or central banks regularly issue bonds to increase the money supply.

TASK SHEET 12:

Match up the expressions on the left with the definitions on the right:
1. equity financing
2. debt financing
3. bearer certificate
4. liquid
5. par
6. coupon
7. yield

A. a security whose owner is not registered with the issuer

B. easily sold (turned into cash)
C. the rate of interest paid by a fixed interest security
D. the rate of income an investor receives taking into account a securitys
current price
E. issuing bonds
F. issuing shares
G. nominal or face value (100%)

TASK SHEET 13:

Choose the right word to fill in the gaps:
1) The Board of is responsible for deciding on and controlling the strategy of a
corporation or company.
a) workers
b) directors
c) control
2) Small businesses depend on investors providing capital.
a) venture
b) individual
c) cooperative
3) Investors are influenced by the projected on their capital
a) market
b) return
c) rate
4) The capital needed to run a business is provided by...
a) gain
b) risk
c) investment
5) Rent and rates, which do not change as turnover volume changes, make up the costs of the
company.
a) fixed
b)contribution
c) variable
6) Materials and direct labor costs, which change as turnover volume changes, make up the costs of a
company.
a) fixed
b) contribution
c) variable
7) Every company must watch its carefully if it is to avoid bankruptcy.
a) market managers
b) cash flow
c) production lines
8) The account shows whether the company is profitable or not.
a) profit and loss
b) volume
c) shareholders
9) Banks require to guarantee a loan.
a) accounts
b) shares
c) securities
10) Insurance companies may use to negotiate the amount of insurance to be paid.
a) claim forms
b) tariff companies
c) insurance adjusters

SECTION C: BUSSINESS LETTERS AND IDIOMS

BUSINESS LETTERS
TASK SHEET 1:
Fill in the correct prepositions in these sentences. All are expressions which occur
frequently in business letters:
1.

We are sending samples separate cover.

2.

We allow discounts up to 7% larger quantities.

3.

We look forward meeting you the Trade Fair.

4.

We had the pleasure meeting you your stand the trade Fair.

5.

We hope this product can compete both price and quality.

6.

Im afraid Mr. Kelly is away business at the moment.

7.

Thank you your cheque $7648 complete settlement your account

date.

8.

We regret to inform you that we do not deal recycled paper.

9.

We have taken the liberty forwarding your enquiry our agents in India.

10.

The form should be completed duplicate capitals and signed you

before you forward it to us.

11.

We expect all debts to be settled full due course.

12.

We have a good supply wood suitable these desks stock the

moment.

13.

She deals many enquiries this sort the course of her work.

14.

Duty has been paid the goods and they are not liable VAT.

15.
effect

We are writing to inform you a change of address of our Atlanta branch

May 1st.

TASK SHEET 2:
Here are a number of standard sentences from business letters. Can you fill in each space
with ONE word?
In most cases there is only one possibility although sometimes two or three different words
are possible for a particular space.
1. We you that any you with us will have prompt and careful .
2. In of the that we have now been business with you for a year, we
appreciate quarterly of our accounts in the .
3. We should be if you would the references when ordering, as your
Company is to us.
4. Our for first orders are in advance. Delivery will be not more than three weeks
receipt order.
5. Our at the moment are limited and we are orders in rotation as not
to our regular .
6. No you will your records and let us an statement in course.
7. We be if you would your records and us have an amended
statement by .
8. To our dispatch department we be if you would use of the enclosed
order-forms, so that your orders be without delay.
9. We are to this concession to assist you in extending your exports and in the
that this will to orders.
10. We agree this price and ask you to this letter as our official order for the
goods in . ship the first opportunity.
11. We for any which have been caused a result of our oversight.
12. May we how we are to collaborating you this new
project.

BUSINESS IDIOMS
Although there are a lots of standard phrases in business English which sometimes make is
seem rather formal, one of the most important features of the spoken English used by English
bussiness themselves, is that the opposite is true - the use of idioms is a sign of a relaxed
atmosphere and that the discussion are friendly. The standard pharases (outside official meetings)
often sound cold and unfriendly. Although a foreigner who uses idioms taking a big risk, it can
be useful to understand what your English colleague means.
Try the following. Match up the expression in list 1 with the meaning in list 2.
PRACTICE 1
List 1
1. Hes got a lot on just now.
2. He got carried away.
3. Hes been there donkeys years.
4. Hes tied up at the moment.
5. He doesnt miss a trick.
6. Hes got everything going for him.
7. Hes a bit of a lame duck.
8. Hes on the ball.
9. Hes a in a bit of a rut.
10. Hes not easy to get on with.

List 2
a. argues a lot
b. understands very quickly
c. always gets the best from a situation
d. is very busy
e. needs a change
f. is an old employee
g. often needs help from the others
h. exaggerated what he meant
i. cant speak to you
j. ought to succeed

PRACTICE 2
These you may hear after a bussiness meeting-perhaps at lunch or dinner.
List 1
1. Shall we wet our whistles?
2. Can I top you up?
3. One for the road?
4. Can I square up with you later?
5. Can I just spend a penny?
List 2
a. Im going to the toilet.
b. Do you want a drink?
c. Do you want another drink?
d. Do you want more to drink?
e. Ill pay my share later.

PRACTICE 3
Match up the expressions in List 1 with the meaning in List 2.
1.
2.

List 1
He got on his high horse.
He called a spade a spade.

3.
4.
5.
6.
7.
8.
9.

He was given the red carpet treatment

He was completely our of his depth.
He was stopped in his tracks.
He put his head on the block.
He put his foot down.
He was held his own all right.
He was the blue-eyed boy.

List 2
a. insisted
b. was so popular he couldnt make
a mistake
c. was very well cared for
d. took the responsibility
e. met an enexpected problem
f. was rather arogant
g. was in serious difficulties
h. said exactly what he thought
i. wasnt able to do what he was
supposed to do
j. was very busy
k. didnt understand at all
l. wasnt able to do what he was supposed to

10. He was up the creek without a paddle.

11. He was up to his eyes.
12. He couldnt cope.
PRACTICE 4
List1
1. He wanted to keep out options open.
2. We were on a wild goose chase.
3. We sat on it for a while.
4. We painted the town red.
5. We didnt play our cards too well.
6. We hadnt a leg to stand on.
7. We pulled out all the stops.
8. We were feeling the pinch.
9. We were in rather a tight corner.
10. We were all on our mettle.

List 2
a. were short of money
b. tried as hard as possible
c. waited
d. hod no hope of explaining
e. tried to show ourselves at out best
f. made some mistakes negotiating
g. were wasting out time
h. didnt want to decide too early
i. were in difficulties
j. had rather a wild party/evening

PRACTICE 5
1.
2.
3.
4.
5.
6.
7.

List 1
There have been a few teething troubles.
Theres been a slight hitch.
Theres a catch.
There was a lot of hot air around.
There was a bit of a free-for-all.
Theres more in the pipeline.
There was a lot of beating about the bush.

List 2
a. an unnoticed problem
b. silly, meaningless arguin
c. irrevelant talk
d. confusing argument
e. early problems
f. a problem
g. everything is not as it seems

8. Theres more in it than meets the eye.

h. extra bussiness in the future

PRACTICE 6
Match up the expressions in List 1 with the explanation in List 2.
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.

List 1
List 2
Can we count on it?
a. Is there a temporary solution?
Can you fill me in ?
b. Is there a temporary solution?
Can we get out of it?
c. Is it certain?
Can we find some sort of stop-gap?
d. Do you think arguing will help?
Can we play it by ear?
e. Dont say anything yet.
Can we kick up a bit of a fuss?
f. Lets talk about the real problem.
Can you tone it down a bit?
g. Dont be so direct!
Can you keep an eye on things for us?
h. Give me the background, please.
Can we get down to brass tacks?
i. Will you take care of our interest?
Can we keep this under out hats for a while? j. Do we need to be prepared?

PRACTICE 7
Choose the correct explanation of the phrase in italics in each case.
1. Then we got down to the nitty gritty.
2. I think they are trying to string us along.
3. It left something to be desired.
4. Ill put in a word for you.
5. That puts a different complexion on things.
6. They are bendind over backwards for us.
7. Hes up to something.
8. I think they are rather dragging their feet.
9. I think we can take that as read, cant we?
10. I think we were taken for a ride last time.

a. important business
b. small details
c. tems not on the agenda
a. delay things
b. lie to us
c. make us agree with them
a. it was a bit unsatisfactory
b. it was very unsatisfactory
c. it was not complete
a. correct what you have written
b. try to help you
c. explain what you meant
a. things seem better now
b. things seem worse now
c. things seem different now
a. cheating us
b. trying to agree with our view
c. helping us as much as possible
a. doing something good
b. doing something bad
c. doing something I dont know about
a. going deliberately slowly
b. going slowly
c. making it extra difficult
a. not waste time with a document
b. assume I am right
c. agree without discussion
a. cheated
b. not given enough details

c. given special treatment (good)

PRACTICE 8
Choose the correct alternative in each of the following. All the sentences would sound quite
natural if used by a native English-speaking business man to a colleague.
1. I wouldnt bank on it.
a) lend money

b) borrow money

c) rely

d) promise

c) pay

d) apologize

2. Youll have to climb down.

a) lower you price

b) make a concession

3. When do you think theyll cough up?

a) answer

b) pay

c) deliver the goods d)ring

4. He cried off at the last moment.

a) said he couldnt come

b) refused to apologize

c) wouldnt pay

d) refused to
change his mind

5. Youll have to knuckle down to it.

a) work hard

b) accept the bad news

c) try harder

d) repeat it

c) paying interest

d) listening

c) pay

d) relax

6. Hes not letting on at the moment.

a) saying what he thinks

b) lending money

7. When are you going to let up?

a) collect your money

b) increase your price

8. Id like to mull it over.

a) discuss it with others

b) think about it

c) re-read it

d) change
some of the details

9. The deal is just about sewn up.

a) agreed

b) signed

10. We need a day or two to size up the situation.

c) certain to fail

d) spoilt by
one person

a) discuss

b) get all the details together

c) consider

d) prepare a
report

PRACTICE 9
Match each sentence a) to j) with a sentence from 1) to 10) which has a similar meaning.
a) We have to haggle.
b) We have a nice little nest-egg.
c) We have high expenditure.
d) We get in free.
e) We are in debt.
f) We are very thrifty.
g) We are paid on commission.
h) We want a rise.
i) We lend money.
j) We have a high income.

1) We spend a lot.
2) We dont waste money.
3) We let people borrow from us.
4) We earn according to what we sell.
5) We argue about the price.
6) We earn a lot.
7) We dont have to pay.
8) We need higher wages.
9) We owe money.
10) We have some savings.

GRAMMAR SECTION: GERUNDS AND INFINITIVES

The gerund and the infinitive can function as nouns.
-

the gerund may stand alone as the subject of a verb; the infinitive is not often used in
this way.

e.g.: Smoking is bad for your health.

To ease credit restrictions at this stage would be unwise.
-

both may stand alone as the object of a verb

e.g.: I have finished working.

I want to leave.
-

both may function as the complement of to be:

e.g.: My worst vice is gambling.

Her first impulse was to run away.
-

both may be qualified by adverb:

e.g.: A teacher of foreign language must avoid speaking too quickly.

He asked me to leave immediately.
-

both may be followed by a direct or an indirect object:

e.g.: Closing the factory leads to social unrest. (direct object)

He hates speaking to strangers. (indirect object)
To leave the door unlocked means to invite burglars in. (direct object)
The manager wants to speak to you. (indirect object)

GERUNDS
A. Common verbs often followed by gerunds; verbs marked with * can also be followed
by that + clause:
*appreciate, avoid, contemplate, delay, *deny, detest, dislike, endure, enjoy, escape, excuse, face,
*fancy, finish, involve, *mention, mind, miss, postpone, practise, resent, risk, suggest, burst out,
its no good/ use, feel like, give up, keep on, leave off, put off, cant stand, spend/ waste time
B. Verbs followed by prepositions + gerund (including their adjectival forms):
absorbed in smth; be engrossed in smth; specialize in smth; succeed in smth; apologize for smth;
blame someone for smth; pay for; accuse someone of smth; remind someone of smth; suspect
someone of smth; charge someone with smth; concern with smth; deal with smth; suffer from
smth; decide on smth; insist on smth (someone doing smth); insure smth against smth; protest
against smth; be concerned about smth; dream about smth; hint at smth; marvel at smth; be used
to smth.
C. Prepositions following adjectives and nouns + gerund:
OF: afraid of, aware of, capable of
AT: good at, surprised at,
WITH: obsessed with, pleased with
ON: keen on, an authority (expert) on, ban on
TO: addicted to, grateful to, immune to, prone to, a solution to, a threat to, an alternative to
BY: bored by, distressed by, surprised by
IN: experienced in, interested in
FOR: thankful for, credit for, desire for, responsibility for
OVER: be in dispute over smth
D. Phrasal verbs + gerunds:
break down, break off (stop talking), give up, put off, get round to (find tome to ), end up,
feel up to (feel capable of doing smth), put oneself out (take the trouble to help someone)

INFINITIVES
A. Common verbs often followed by infinitive with to; verbs marked * can also be
followed by that + clause:
*agree, *appear, *arrange, attempt, ask, choose, dare, *decide, *demand, deserve, *expect, fail,
grow, hasten, *happen, *hope, hurry, *learn, long, manage, neglect, offer, pay, *plan, *pledge,
*pretend, *promise, refuse, *resolve, seek, *seem, struggle, *swear, *threaten, *vow, want, *wish
B. Common verbs often followed by infinitive without to ; verbs marked * can also be
followed by that + clause:
help, make, let, *feel, *hear, *notice, watch, *observe, *perceive, *se, *sense

GERUNDS OR INFINITIVES
Verbs followed by either ing or infinitive with to:
1. Cant bear, hate, like, love, prefer
Like to usually refers to habitual preferences: We like to go out to lunch on Sunday.
Not like to means think it wrong to: I dont like to disturb colleagues at home.
2. Forget, remember
With to both verbs refer to an obligation: I had to phone the office but I forgot to do it.
With ing both verbs refer to past events: I dont remember learning to walk.
Both can be followed by that + clause: I remembered that I had to pay the phone bill.
3. Try
With to refers to something attempted, which might fail or succeed: I tried to warn
him, but it was too late.
With ing this refers to making an experiment, or to a new experience:
Have you tried windsurfing? Its great!
Try taking an aspirin. Youll feel better.

4. Go on
With ing this refers to the continuing of an action: She went on working even though it
was late.
With to this refers to the continuation of a speech: The Prime Minister went on to
praise the Chancellor. This means: The Prime Minister continued his speech by
praising the Chancellor.
5. Mean
With the meaning intend, this is followed by to: Sorry, I meant to tell you about the
party.
With ing and an impersonal subject, this refers to what is involved: If we catch the
early train, it will mean getting up at 6.00.
That + clause is possible when meaning is being explained: This means that you have
to report to the police station.
6. Regret
With to this refers to the speakers regrets about what is going to be said. It often occurs
in formal statements of this kind: We regret to inform you that your application has
been unsuccessful.
With ing this refers to a regret about the past: I regret saying that to him.
That + clause is also possible: We regret that we didnt tell her earlier.
7. Stop
With to this refers to an intention: Jane stopped to check the oil level in the engine.
With ing this refers to the ending of an activity: The baby stopped waking up during
the night now.
8. Hear, see, watch
When followed by infinitive without to, the action is complete: We watched all the cars
cross the finishing line.
With ing, the action is still in progress: I heard someone coming up the stairs.

EXERCISE 1:
Put the verbs in brackets into their correct form (Gerund or Infinitive):
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
22.
23.
24.
25.
26.
27.
28.
29.
30.
31.
32.
33.
34.

Have you ever watched people (try) (catch) fish?

If you dislike (peel) potatoes, try (hold) them under water while (do) so.
Therell be an opportunity (ask) questions before (leave) the classroom after (hear) the lecture.
His plans are well worth (listen to) in spite of (they, sound) so unpractical.
I hoped (arrange) (come) early (help) you (put) the room in order before the guests (come).
I know you will pardon (I, say) so, but you keep (give) us to many difficult words (spell) in
English.
Ive had a lot of occasions (complain) of (he, come) late.
Its silly (risk) (get) your feet frost-bitten.
Stop (make) a fool of yourself by (keep on) (repeat) the same stupid idea.
I remember (allow) them (play) in my garden without first (ask) for permission.
I must remember (remind) my mother that the garden needs (water).
We mustnt risk (be) late for the theatre. I put off (go) last week and I dont want (miss) (see) the
play.
I appreciate (you, not want) (mention) (he, have) been an alcoholic before (come) to work for us.
Is it any use (I, ask) you (insist) on (Tom, be) present without (wait) for any further invitation?
He recollects (his uncle, say) that if a job was worth (do) at all is was worth (do) well.
She likes (read) detective stories so I cant understand (she, be) unable to resist (look at) the end
of the book first.
I dont mind (your children, play) in the garden, but I wont have (they, walk) over my roses.
Dont (keep) (I, wait) long before (answer) the phone.
I advise you (wait) before (decide) (accept) the offer.
Is (boil) or (fry) the best way of (cook) this fish?
I should like (watch) these workers (fix) the engine for a few minutes before (go) any further.
Did you forget (remind) Tom (ask) his friend (pay back) the money he owes us?
Please (begin) (eat) mow without (wait) for the other guests. Theres no (tell) when theyll
manage (get) here.
I can see (him, begin) (smile), so it is no use (he, pretend) (be) asleep.
Do you remember (I, ask) you (lend) me a dictionary?
Try (persuade) Mary (be) more reasonable.
If you dont enjoy (eat) sour lemons, try (put) sugar on them after (peel) them.
Im surprised at (you, have) to work so late. Just imagine (I, do) the same! No, it doesnt bear
(think about).
A child cant learn (spell) without (be) helped.
On (hear) my girl-friend Margot (speak), everybody took her (be) a French.
I dislike (be) looked at while (attempt) (learn) (swim).
They refused (allow)us (go in) without (sign) the paper.
Forgive (I, ring) you up so late, but I couldnt allow your birthday (pass) without (congratulate)
you.
Did you remember (post) my letter on your way home? I remember (go) into the post-office
for some stamps, but even then Im afraid I forgot (post) it.

EXERCISE 2:
Show the differences in meaning between the sentences in pairs:
a) Sorry , I meant to tell you about the party.
If we catch the early train, it will mean getting up at 6.00.
b) I heard someone coming up the stairs.
I heard you enter the room.
c) I had to phone the office but I forgot to do it.
I forgot telling him the news.
d) I cant help to clean the place up.
I cant help falling asleep.
e) He said he would like to go to the museum, but he didnt have enough money.
He said he liked going to the museum, but he didnt have enough money.
f) I remember telling him that there was no bus on Sundays.
I remembered to tell him that there was no bus on Sundays.
g) He couldnt stop saying thank you for all his brother had done.
He couldnt stop to say thank you for all his brother had done.
h) He was used to getting up early.
He used to get up early.
i) Why dont you try to hire a car?
Why dont you try hiring a car?
j) I regret to say that youll be held responsible.
I regret saying that youd be held responsible.

EXERCISE 3:
Fill in the blanks with a gerund or an infinitive:
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.

The man was last seen (board) a train at Huston.

Everyone assumed what he said (be) based on facts.
The teacher caught the pupil (cheat).
I vaguely remember (tell) him something like that.
The new committee member did not venture (speak) at his first meeting.
He remembered .. (pass) on most of the information, but omitted (mention) one or two of
the most important facts.
The reporters asked many questions which the freed man declined (answer).
He left me .. (sit) in the restaurant alone.
The Company saw its market .. (disappear) and took immediate steps to develop new products.
Having mentioned the main problem, he went on (talk) of other, less important matters.
He dared (call) me a fool to my face.
Unreliable delivery dates are one of the most important obstacles to (increase) our exports.
By selling council houses, we are able to devote more money to .. (build) fresh properties.

EXERCISE 4:
Complete each sentence using either an infinitive construction or a gerund construction.
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.

I strongly resent your..

Will the new job involve your ?
The question is whether anyone will volunteer
Surely you will never consent
We tried to delay his., our main concern being to prevent him
It would be unwise to defer
I hesitated , since I didnt know him very well.
He is the most competent man
His plans are well worth even though they sound so unpractical.
How can we be sure of his ..?

EXERCISE 5:
Rewrite each sentence, beginning as shown, so that the meaning stays the same:
1. I went to the hairdresser; I wanted her to cut and style my hair.
I went to the hairdresser
2. Actually, she succeeded in getting the loan at last.
Actually, she .
3. Never cross the street without looking at the traffic lights, mother advised her son.
Mother advised .
4. They repaired my gar at the garage.
I
5. Dont try to drive it; the engine is out of order.
Its no use
6. The President is just going to sign the treaty.
The President is on
7. We couldnt continue our journey because of the storm.
The storm
8. I advise you to teach him a lesson.
Its time .
9. Alice has said that I am responsible for the stain in the carpet.
Alice has accused .
10. The prisoner claimed that he had not murdered the old woman.
The prisoner denied
11. I can hardly wait to get some rest.
Im looking
12. Could you manage to make her accept my proposal?
Could you succeed .
13. She pushed the door ajar so that she might get some fresh air.
She pushed the door ajar
14. According to his arrangement , a bonus will be given to each of us.
He has arranged

15. Im doing more work than I bargained for.

I didnt expect
16. Sally was rude but Anne got her revenge.
Anne paid
17. The full truth is only just beginning to sink in.
Im only just beginning
18. I bet you wouldnt ask your father to join the meeting!
I dare
19. If you work for this company, you have to travel a lot!
Working for this company involves ..
20. We havent seen one another for a long time.
We stopped ..

EXERCISE 6:
Choose the most suitable words underlined;
a)
b)
c)
d)
e)
f)
g)
h)
i)
j)

You are perfectly capable for/ of making your own bed, I would have thought!
I am surprised at/ by your forgetting about our annual meeting.
The union and the management are in collaboration/ dispute over working conditions.
It seems to be your boss who is under/ at fault in this case.
When David started to speak/ speaking everyone fell about in laughter/ laughing.
I told her off/ told off her for leaving the office unlocked.
Its time you got/ set about organizing your revision programme.
Half the meeting was left/ given over to reading the minutes.
Closing the factories means putting/ to put people out of work.
Your calling/ call on us just at this time is most inconvenient.

EXERCISE 7:
Fill in the blanks with one of the phrasal verbs from the box. Choose the most appropriate
form for every context:
bring up
take to
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.

get on with
cut down

go on
keep on
go through with

give up
take on
shut down

She riding because she wanted to lose weight.

At the last committee meeting, the treasurer the question of raising the annual subscription.
How are you your new project?
He going for a walk every night before he went to bed.
He wanted to talk to me but I working and refused to listen.
He began by describing the route and to tell us what the trip would probably cost.
After his fourth attempt he trying to pass the examination.
You would recover your sense of taste if you smoking altogether.
Several gambling clubs have been recently for breaking the regulations.
The Government wont this new legislation if public feeling is against it.

EXERCISE 8:
Complete the sentences below with a suitable form of the verbs in brackets:
1. My father (remember/ spend) long happy hours on the beach when he was a child.
..
2. We (regret/ say) that you have not won a prize in our competition.
..
3. Your football boots (need/ clean) before the next match.
..
4. You (not need/ explain) the situation to me because I understand perfectly.
.
5. John (try/ remember) his boss address, but it had completely gone out of his mind.
..
6. (Try/ not make) elementary grammar mistakes when you are writing a composition.
..
7. Please (remember/ phone) home and tell them Ill be late.

8. My sister (regret/ not work) harder when she started University.

.
9. The technician (try/ fiddle) with knobs, but the machine still wouldnt work.
..
10. The matter (need/ look) into.
..

BASIC VOCABULARY:
a buck (fam. US) un dolar
a quid (fam. UK) o lir sterlin
account - cont
account for (to) - a reprezenta, a explica
accountancy - contabilitate
accountant contabil
actuarial - notarial, contabil
actuary - notar, contabil
agenda o ordine de zi
allotted share capital - capital social autorizat
annual report - raport anual de activitate
arrears datorii, restane, arierate
assets - activ (al unei firme)
audit - revizie contabil
auditor - revizor contabil
authorised share capital - capital social autorizat
authorised share capital - capital social autorizat
bad debt o crean nepltit
balance - sold
balance un sold
balance of account un sold de cont
balance sheet - bilan
bank - banc
bear un speculator la burs (care mizeaz pe scderea cursului)
bid o ofert de cumprare
bill - trat, factur
bill of exchange - trat, scrisoare de schimb
bill of landing - conosament
blank cheque un cec n alb
blue chips aciuni ale marilor companii
bounded cheque un cec refuzat
building rate o banc popular de economii pentru cumprarea de locuine
bull un speculator la burs (care mizeaz pe creterea cursului)
called up share capital - capital social atras
capital - capital
cash point un aparat distribuitor de bancnote
central bank - banc central
cheque book - un carnet de cecuri
company, corporation (US) o societate comercial
composite rate o rat compus
concern o firm, un concern
confirming bank - banc confirmatoare
cost - cost
cost - effective - rentabil
cost effective rentabil, care i merit preul

cost efficient - rentabil

costing - estimare (a preului)
cost-sharing - participare la cheltuieli
council tax impozitele locale
credit card o carte de credit
creditor un creditor
current account - cont curent
current account deficit un deficit al balanei de pli curente
current assets - active (mijoace) circulante
deposit account - cont de depuneri
dip o scdere, o descretere
direct debit debitare direct
direct debit - virament automat
dirt cheap - foarte ieftin
divident divident
downturn, downswing un regres
draft o retragere
dud/ rubber cheque un cec fr acoperire
equities aciuni ordinare
expenses cheltuieli, pli
extravagant, profligate cheltuitor, risipitor
firm, bussiness o firm, o afacere
fixed assets - active (mijloace) fixe
flat rate rat uniform
front company o societate paravan
funds - fonduri
general meeting o adunare general
gilt-edged securities valori/titluri fr risc (obligaiuni de stat)
godsend o man cereasc
hand currency o valut forte
headoffice, headquarters sediul social
holding company un holding
income tax impozit pe venit
inheritance tax drepturi de succesiune
interest dobnd
internal audit - revizie contabil intern
investor - investitor
issued share capital - capital social emis
issuing bank - banc emitent
joint stock company societate pe aciuni
joint venture o societate pe aciuni
junk bonds obligaiuni fr valoare
limited partnership o societate n comandit simpl
loan un mprumut
loan shark un cmtar
merchant bank o banc comercial
monetary - monetar
money spinner o min de aur
money supply mas monetar
mortgage o ipotec
multinational o campanie multinaional

operating costs - costuri de exploatare

outstanding balance - sold debitor
overdue scadent, ntrziat de mult
parent company o companie mam
partner un asociat, un partener
partnership o societate de persoane
pay to - a plti
pay roll - stat de plat
PAYE pay as you earn - impozite reinute la surs
payment o plat, un vrsmnt
payment against payment - contra cost
phantom profit - profit fantom
portfolio un portofoliu (de valori)
preference dividend - dividend preferenial
pre-paid - pltit n avans
private company o societate cu rspundere limitat
profit to - a profita
profit making - realizare de profit
profitability rentabilitate
profit-sharring - participare la profit
public company o societate anonim
public expenditure cheltuieli publice
redeem (to) - a rambursa, a onora, a amortiza
redeemable - rambursabil, amortizal
redemption date - dat de rambursare
repayment rambursare
retained profit - profit nedistribuit
savings - economii
set back o cdere, o involuie, un regres
settlement o reglare, plat a unui cont
share premium account - prim de
emisiune
sight bill - trat la vedere
sister company o societate din acelai grup
slump o scdere masiv
spending - cheltuieli
spot market - piaa tranzaciilor la termen
stake, holding o participare la capital
statement of account un extras de cont
stock market o pia bursier
takeover o preluare
tangibile assets - active corporale
tax collector un perceptor
tax evasion evaziune fiscal
tax heaven un paradis fiscal
tax relief o degrevare de impozit
taxation impozitare, taxare
taxpayer un contribuabil
the Balance of Payments balana de pli
the Balance of Trade balana comercial
the base rate rat de baz

the discount rate rat de scont

the exchange rate rat de schimb
the Gross Domestic Product Produsul Intern Brut
the Gross National Product Produsul Naional Brut
the lending date rat de mprumut
the Mercantile Exchange Bursa de Mrfuri
to be in the black - a fi creditor
to be in the red a fi descoperit, n deficit
to bid for a face o ofert pentru
to borrow a mprumuta de la cineva
to break even a regla conturile
to cap taxes a fixa un plafon pentru impozite
to collect a ncasa
to default a nu onora
to dip a scdea, a descrete
to draw money a retrage, a scoate bani
to establish a fonda, a ntemeia
to file an account - a depune documentele de constituire a societii
to file for bankruptcy ,to file a-i depune bilanul, a cere falimentul
to flourish a prospera
to go belly up (US) a da faliment
to hedge a se acoperi (risc)
to invest a investi
to lend a mprumuta cuiva
to manage, to run a conduce, a gestiona
to overdraw a depi contul n banc, a semna un cec fr acoperire
to owe money a datora bani
to pay back, to repay a rambursa
to pay money in/into - a vrsa bani n
to pay money off - a fi valabil/pltitor, a rambursa o datorie
to plummet a merge foarte prost, a avea greuti mari
to raise profit - profit
to save a economisi
to set up a organiza, a nfiina
to settle a echilibra un cont
to shoot up a crete vertiginos
to slacken, to slow down a ncetini, a frna
to slump a scdea masiv
to squander a irosi, a risipi, a delapida
to take-over a prelua
to take-over bid o ofert public de preluare
to tax a impune taxe, a impozita
to undertake a ntreprinde
turnover cifr de afaceri
undertaking- o operaiune ntreprins
upturn, upswing o redresare, o ascensiune
windfall chilipir

FURTHER READINGS:
Financial Times, Tuesday, January 2, 2001
PROFILE SIR DAVID TWEEDIE, CHAIRMAN, IASC
A WORRIOR RAISES HIS STANDARD
The quest for a system of internationally accepted accounting practices now has a worthy
champion, says Michael Peel
David Tweedie is a Scottish accountant intrigued by the tactics of naval warfare. In
particular, he is fascinated by the Battle of Jutland, the 1916 confrontation between the British
and German fleets that ended without a clear victor. One day, he suggests, he will appear on
television telling people about the first world war and how we could have won Jutland.
Sir David takes the same trenchant approach to accounting as he does to military history.
His successful chairmanship of Britains Accounting Standards Board, which ended with the old
year, was founded on a distinctive blend of intellectual certainty and relish for battle. From this
week he applies those skills to an even more challenging role. As chairman of the board of the
International Accounting Standards Committee, he will lead the drive for a set of rules to allow
companies to list on any stock market in the world using a single set of accounts.
Sir David, 56, will pursue this goal with his twin weapons of academic scalpel and verbal
bludgeon. He speaks softly but is not afraid to apply mockery and scorn where he thinks it is
deserved: a speaker at an event held to mark his departure from the ABS compared his style to a
modern form of bear-baiting. In his long-running feud with Ernst & Young, the accountancy
firm, he described his opponent as having all the vision of a mole and the eloquence of a
whoopee cushion.
Sir David says his manner reflects his time spent as an academic and apprentice in
Scotland. He trained in Glasgow 30 years ago under the tutelage of an accountant who was as
straight as a die he would not allow anyone to get away with anything. He honed the arts of
argument through debating and a five-year spell at the University of Edinburgh, where he
lectured in accounting and business methods.
This self-proclaimed iconoclast has little time for those who see him as flashy or
crowd-pleasing. He bridles at the suggestion, made by one familiar with his style, that he is good
at making jokes at other peoples expense. I dont try to attack people who cant take it, he
says. Its nothing personal and I dont take it personally when people do it to me.
Sir David will need all his strategic skills if he is to prosper in his new job. The IASC has
made appreciable but slow progress since it was set up by the profession in 1973 to lead the
campaign for international rules. The committees job is to convince the financial community
that its standards are credible and bear comparison with the best existing national beanchmarks.

The task is made harder by the growing complexity of companies and the transactions
they undertake. Accountants are faced with huge problems, such as measuring the value of
high-technology companies that make no profits and have few physical assets. As Sir David
says: Accounting is a primitive subject skill. There are lots of things we havent got right.
He says his proudest achievement was curbing the notorious practice of big bath
accounting. This involved companies taking an overly pessimistic view of the prospects of
businesses they bought, allowing them to book big profits when the acquisitions performed better
than expected.
Sir David says it is vital that co-operation between countries develops further. Global
standards will take root only if differences between national rules of which there are many
are narrowed. The prime objective for the IASC in the next three years must be the
convergence, he says, trying to bring national standards closer together.
There is no doubt Sir David is more a consensus-builder than he might at first appear. His
great skill is in tailoring his message to the audience he is addressing, whether that is accountants
worrying over technical niceties or finance directors concerned about profits growth. He
appreciates, too, that accounting must reach out to the growing number of non-expert private
investors who read financial statements.
This progressive attitude is well-suited to an era in which shareholders of all kinds need
an increasing amount of guidance. Many of the companies of today sit ill in the framework of
traditional accounting, which is a creation of the manufacturing era. Sir Davids task is to bridge
past and future, using the same critical scrutiny that he applies to wartime events off the coast of
Jutland.