ATMA JAYA CATHOLIC UNIVERSITY

ENGLISH FOR GLOBAL ECONOMIC

STUDIES MODULE (ACT 111)
 TABLE OF CONTENTS

1 ENTREPRENEURSHIP
Unit One
The Producer………………………………………………….…………………………………………………. 4
Business Vocabulary…………………………………………………………………………………………… 9
Structure and Written Expression………………………………………………………………………. 10
14
Pronunciation……………………………………………………………………………………………………. 12
Conversation……………………………………………………………………………………………………… 15
Listening Comprehension..……………………………………………………………………………….. 15
Composition……………………………………………………………………………………………………… 16
2 BUSINESS ELEMENTS IN A
COMPANY
Unit Two
A Giant Factory Rises to Make a Product Filling Up the World: Plastic………………. 15
Company Vocabulary………………..………………………………….. 18
Structure and Written Expression……………………..……………………………………………… 19
Pronunciation…………………………………………………………………………………………………… 20
Conversation…………………………………………………………………………………………………….. 20
Listening Comprehension………………………………………………………………………………….. 20
Composition……………………………………………………………………………………………………… 21

3 ORGANIZATION HIERARCHY
Hierarchy defined……………………………………………………………………………………………. 22
Hierarchy vocabulary………………………………...………………… 23
Structure and Written Expression……………………………………….. 24
Pronunciation…………………………………………………………………………………………………. 25
Conversation…………………………………………………………………………………………………… 26
Listening Comprehension……………………………………………………………………………….. 26
Composition…………………………………………………………………………………………………… 27
4 JOB DESCRIPTION IN BUSINESS
How to develop a job description…………………….…………………. 28
Job Description vocabulary…………………….………………………. 29
30
Structure and Written Expression………………………………………..
30
Pronunciation…………………………………………………………. 31
Conversation…………………………………………………………... 32
Listening Comprehension……………..………………………………… 33
Composition………………………………………………………… 34

5 MARKETING
Marketing………………………………………. 36
37
Marketing vocabulary……………………………………………………………………………………….
38
Structure and Written Expression……………………………………………………………………..
39
Pronunciation……………………………………………………………………………………………………
40
Conversation…………………………………………………………………………………………………….
41
Listening Comprehension………………………………………………………………………………….
42
Composition……………………………………………………………………………………………………..
6.FINANCE
Finance…………………………………………………………………………………………………………….. 44
Finance vocabulary…………………………………………………………………………………………… 45
Structure and Written Expression…………………………………………………………………….. 46
Pronunciation…………………………………………………………………………………………………… 47
Conversation……………………………………………………………………………………………………. 48
Listening Comprehension…………………………………………………………………………………. 49
Composition…………………………………………………………………………………………………….. 50
TOEFL PREPARATION MATERIALS
Listening Comprehension
Skill 1: Short Conversation………………………………………….
Skill 2: Longer Conversation (Longer Conversation)………………
Skill 3: Lecture………………………………………………………
Reading Comprehension
Skill 1: Main Idea of Paragraph…….……………………………….
Skill 2: Word Association (Vocabulary and Language Expressions)..
Skill 3: Inference and Conclusion……………………………………
1 ENTREPRENEURSHIP
 UNIT 1

READING COMPREHENSION
Pre-reading Questions
Exploring Business Ideas (Brainstorming)
1. What is business?
2. What is entrepreneurship?
3. Why do people run a business?
4. How do you relate entrepreneurship with business?
5. How do people manage a business?

A. Reading Passage

The Producer
Booker T. Whatley has a novel strategy for the small farmer:
Stop thinking soybeans and cotton
and start thinking peas,
quail, bees, and berries

BARBARA H.SEEBER

In the equipment barn at Tuskegee Institute, Booker T. Whatley, named for Booker T.
Washington, the founder of the college, chats with a crew wrestling with a tractor tire. “he’s
been led down the primrose path,” Whatley says, lamenting the plight of a local farmer about
to lose his land by foreclosure. “For 40 years he’s been planting his 200 acres in cotton and
soybeans, and now he’s about to go broke. He’s got to get out of the big-farmer ball park.”
A small farm has got to have high-value crops and a year-round cash flow. “A decade
ago, after too many years of hearing about failing small farms, Whatley set out to show small
farmers how to succeed.
Backed by a $250,000 Rockefeller Foundation grant, Whatley, a horticulturist, selected
the best producing fruits and vegetables available, established the right combination of soil and
fertilizer for each , and, with a two-man farm crew, planted his crops on 25 acres. Formally, his
purpose was to demonstrate that farms as small as that can be efficient, productive, and profitable—
grossing well over $100,000 annually within five years. He jokes mildly that he wanted to ‘turn the green
chlorophyll in plants into greenbacks for the farmer.”
 From 1974 until he retired in 1981 as a professor of horticulture at Tuskegee, Whatley
nurtured his model farm. From that farm arose a formula for a successful small farm.

This formula dictates that the farm must provide year-round income from about 10 crops. In
the south the harvest would include grapes, sweet potatoes, black eyed peas, blueberries,
strawberries, blackberries, and mustard, collard, and turnip greens. The crops should not compete for
harvest labor—strawberries and peaches, for example, don’t work together because they ripen
simultaneously. Every crop must generate an annual income of at least $3,000 per acre, so such old
stand bys as lettuce, onions, and white potatoes are out. The crops must be irrigated, and the
operation must be full-time employing a family or about three full-time workers. Most important, the
main market for the produce must come from a pick-your-own “club” of 1,000 member households
who pay an annual fee of $ 25 each ($40 if the household buys rights to fish in the farm’s pond) and
harvest most of the crops. To encourage a large and faithful membership, Whatley stipulates that the
farm to be on a paved road within 40 miles of a metropolitan area.

This plan, culled from the best modern farming technology and Whatley’s observations over a
lifetime of farming, shelters the farmer beneath a unique economic umbrella. One or two crops may
fail in a given year, but with 10, no one crop accounts for more than a tenth of the yearly income, so
losses cannot exceed 10 or 20 percent. The irrigation system guards against drought as well as late
spring and early fall frost. And the membership club, unlike other approaches, guarantees a local
market. Organic farms, for example, appeal to a clientele that rejects the use of pesticides, and pick-
your-own operations cannot count on steady customers.

The crops are meticulously chosen for cash flow as well as for variety and yield. Four of the
five acres of sweet potatoes grown on a farm in the South, for example, are harvested and cured—a
process of drying and storing to increase shelf life—to provide income through the winter. Every
Whatley farm also derives year-round income from a rabbitry, a quail of pheasant rookery, and 60
hives of honeybees that pollinate the crops and provide honey, pollen, and a pollination service. The
birds provide meat and eggs. And the rabbits furnish everything but the twitch of their noses: Meat
and pelts can be sold to members. Eyes and ears go to pharmaceutical labs. The tail makes luxurious
trim for coats. And, says Whatley, “the front feet can be sold to the superstitious and the hind feet for
ladies’ powder puffs.”

The crop mix of this 25 acres horticultural Eden can be altered according to climate and
customer demand. In the Northeast, for example, Whatley recommends cauliflower, broccoli,
Brussells sprouts, and spinach instead of the greens and black-eyed peas he specifies for the South;
the lowbush variety that thrives in the South; and sweet corn for sweet potatoes. For the West,
Whatley suggests, garlic and English walnut, pistachio, and hazelnut trees. In the Midwest, asparagus,
beans, and tomatoes replace greens, peas, and sweet potatoes, and high bush blueberries supplant
rabbiteye.
 It amounts to a kind of franchise for the small farm, and Whatley has worked out the recipe as
carefully as Colonel Sanders patented his fried chicken. And with good reason, as he sees it, The U.S.
Department of Agriculture, Whatley says, sees small farms simply as scaled-down big farms. He blames
decades of small farm failure—some 15 million small farmers have abandoned farming since 1950—on
the standard government line. “Get big or get out.” While agribusinesses rolled up huge grain and dairy
surpluses, the family farm foundered.

Twenty-five years ago the government defined small farms as those with total yearly income
below $10,000, in effect defining small farms as failures. By the mid-1970s inflation had pushed the
income figure to $20,000, still a meager amount for a working farm.

Now the government defines a small farm as one with “below median non metropolitan family
income in the state.” Whatley’s definition is simpler: “I mean limited acreage. A small farmer is a farmer
with 10 to 200 acres of land. I don’t mean someone in overalls chewing tobacco and butchering the
language.”

In October 1981 he started The Small Farm Technical Newsletter, a kind of Poor Richard’s
Almanac for the small farmer. For $12 a year, the farmer is told when to plant and replant, what yield
to expect from each crop, how to prune the grapes, what pesticides to spray and when, how to manage
his membership club. The newsletter has a circulation of about 1,200 which includes two prison
inmates. Recently one of them wrote to Whatley: “I tried to operate like the big operator and went bus,
and in an effort to save the farm, I entered into a short-term career as a bank robber…..I am scheduled
for parole this fall and I am most interested in going to farming.”

That kind of wide, practical appeal recently prompted a reporter to dub Whatley “the guru of
common sense.” It’s a label that makes him shake his head and chuckle.

But it is not Whatley’s common sense that makes him singular. His approach combines
homespun solutions with the best of modern technology. To keep bugs down, he recommends the
agriculture department’s “integrated pest management,” which balances natural predators such as
ladybugs and praying mantises with fungicides, bactericides, insecticides, and herbicides. The regime
Whatley worked out Tuskegee calls for fungicides such as captan mixed with insecticides such as
malathion, parathion, and gouthion—a different mixture each time—and applied sequentially so
insects cannot establish resistance.

He also suggests a flock of guinea fowl, voracious bug eaters that will reduce the need for
pesticides on the strawberries, sweet potatoes, greens, and peas by about 80 percent. To keep deer
and rabbits, Whatley strings small bags made from panty hose or cheesucioth, each filled with a fistful
of human hair, around his plants. A bag every 20 to 30 feet keeps deer out for as long as 10 months.
For rabbits the human hair must be interspersed every eight to 10 feet. “The human smell to deer and
rabbits.” Whatley chuckles, “is pretty awful” (He gleans the hair from cooperative beauty and barber
shops, whose operators have no idea of its purpose. “you can’t tell people you are going to string up
their hair to keep away the deer and rabbits, he says.)

For weed control, Whatley encourages “scratching Mother Nature’s back” with a cultivator
during the growing season. In addition, he fumigates the seed beds of the perennial crops (the berries
and grapes), rotates the annual crops, and lays wood chips, straw, or black plastic between the
strawberry rows to keep down weeds.

His drip irrigation system—long plastic hoses buried in the ground with rubber tubes rising
around each plant—trickles two to four gallons of water at the base of each grape and blueberry plant
each night through the hot summer months. A separate sprinkler system waters the other crops from
to November. An electronic clock sends water through the acres of pipes daily and monitors the
temperatures. When the temperature drops below 34 degrees Fahrenheit, a fine film of water sprays
the foliage. This sets up a cycle in which the water coating the plants turns into ice that then melts
again under the spray. Since heat is released when water changes from a liquid to a solid, the
temperature of each plant is raised, staving off frost damage down to about 25 degrees.

Whatley also recommends a biological clock his grandfather used for frost control. “Pecan
and other nut trees,” Whatley wrote in one issue of his newsletter, “seldom get caught by late spring
frost. When the leaves on a pecan tree reach the size of a squirrel’s ear, then it’s safe to plant tender
crops like tomatoes and sweet potatoes.”

Before any crop is planted, a test must determine the soil’s pH—its acidity or alkalinity. The
soil is then treated so that its pH suits each crop. “In Georgia, the state blueberry association
recommends a boggy portion the state, where the soil is acid, for growing blueberries because the pH
is right to start with, “Whatley says, “But they can grow blueberries all over that state if the pH is
adjusted with sulfur and an ammonium sulfate fertilizer to make the soil more sour.”

The McConnell Berry Farm, in the heart of Ohio’s corn and soybean belt, practices on 195 aces
much of what Whatley preaches. About 50 miles from Columbia, the farm originally grew
strawberries, blueberries, and raspberries, and added vegetables as a fail-safe against crop failure and
to please customers. Between May 1 and November 1 of last year, about 15,000 customer-pickers
went through their gate. Owned by three families, the farm grosses over $300,000 a year and nets
about $100,000.

“I wish I’d known about Whatley’s idea when we were getting started,” says George
McConnell, one of the owners. “The money from a membership club would help a lot repaying our
debt on the land.”

While the McConnells have prospered as full-timers, many small farmers have hung on only
by propping up their farms with a job in town. Others, called back-to-the-landers or Saturday-and-
Sunday farmers, approach farming as a second and perhaps retirement career. Theses part-timers
make up about 75 percent of all small farmers. But significantly, a new generation of young men and
women have chosen full-time farming as a good life. Census figures show that the exodus from the
farms ended in 1980.
Comprehension and Discussion Questions
Directions: Decide if each of the following statements is true (T) or false (F) based
on the selection.
____1. According to Booker T. Whatley, in order to increase his or her chances for success, a
small farmer must generate year-round cash flow by planting a variety of crops that do
not compete with each other during planting and harvest.

____2. A small farmer following Whatley’s plan doesn’t need any full time workers.
____3. The Small Farm Technical Newsletter tells small farmers when crops should be planted.
____4. Whatley relies on a combination of natural predators and synthetic pesticides known
as “integrated pest management.”

____5. Whatley recommends relying solely on a sprinkler-type irrigation system.

____6. Whatley’s plan is suited to anyone who is interested in operating a small farm.
____7. It is possible to change the chemical composition of the soil in particular areas in order
to grow crops that normally would not grow in these areas.

____8. In order to successfully sell their crops, small farmers must be more than 40 miles from
a large city.

____9. Whatley is very popular because of his common sense and practical ideas.
___10. Whatley also recommends a biological clock his grandfather used for frost control.

B. Vocabulary and Idiom Review

1. To lead down :
2. To lament :
3. Plight :
4. Foreclosure :

5. To go broke :
6. Cash flow :
7. Grant :
8. To be backed by :
9. Horticulturalist :
10. Fertilizer :
11. Efficient :
12. Productive :
13. Profitable :
14. Grossing :
15. Annually :
16. Nurture :
17. Formula :
18. Year-round income :
19. To compete :
20. Harvest :
21. Labor :
22. Stand by :
23. Annual income :
24. Employing :
25. Full-time workers :
26. Annual fee :
27. Faithful :
28. Membership :
29. To stipulate :
30. Lifetime :
31. Economic umbrella :
32. Account for :
33. Loss :
34. To exceed :
35. Drought :
36. Frost :
37. Organic :
38. Clientele :
39. Operation :
40. Steady :
41. Customer :
42. Variety :
43. Yield :
44. To pollinate :
45. Furnish :
46. To amount :
47. Patent :
48. Scale down :
49. To abandon :
50. Agribusiness :
51. To roll up :
52. Huge :
53. Grain :
54. Surplus :
55. Inflation :
56. Meager :
57. Overall :
58. To prune :
59. Circulation :
60. Homespun :
61. To keep bugs down :
62. To fumigate :
63. To rotate :
64. To keep down :
65. To reduce :

C. Structure and Written Expression

Words, Terms, Phrases, and Sentences.
1. Words and Their Categories
Word is defined as a single distinct meaningful element of speech or writing, used with
others (or sometimes alone) to form a sentence and typically shown with a space on either side
when written or printed. Words in English are categorized into Nouns, Verbs, Adjectives, Adverbs
Prepositions, Conjunctions, and so on. Nouns are words used to denote something. It includes
to denote persons such as child, pilot, Bill, place such as town, countryside, Pacific Ocean, India,
thing such as telephone, river, fish, material such as gold, plastic, mutton, condition such as
sadness, confusion, equality, and quality such as beauty and justice.
Verbs in English are words to express action, condition or state of being. The verb is the
predicate of a sentence. Not only does it say something about the object, but also it tells the time
of the statement, whether the subject acts or is acted upon, the manner in which the writer views
the action (as a statement, a command, a wish, or an exclamation). For instance, Toto smashed
the window. The word ‘smashed’ is a verb. It functions as the predicate of the sentence because
it states what the subject does. There are two different kinds of verbs: 1. Transitive, 2.
Intransitive. Transitive verbs are verbs that need an object. Meanwhile, intransitive verbs are
verbs that do not need an object.
Adjectives are words that modify or describe a noun or pronoun; it usually answers the
questions ‘what kind?’, ‘which one?’ or ‘how many?’ For example: My aunt is a fat woman. If an
adjective appears before the noun, it is said to be in the attributive position. If it follows the
verb, it is in the predicative position. For instance: the blue car (attributive); the car is blue
(predicative). In an adjective, there is a degree. What is meant by degree of adjectives? The
positive degree names a quality of something or someone without a reference to anything or
anyone else. For instance, the tree is large. The comparative degree shows that the qualities of
someone or something are being compared. For instance, “The tree is larger than the man”. The
superlative degree shows that the qualities of three or more are being compared. For instance,
“This is the largest of the trees”.
 Adverbs are words that modify or describe a verb, and adjective or another adverb. It
usually answers such questions as: ‘how?’, ‘when’?, ‘where?’, ‘why?’, ‘how much’? for example,
“He broke the glass deliberately”. The woman was extremely rude. Like adjectives, some adverbs
can be compared in three degree. Positive degree: Dita wears fashionably. Comparative degree:
Dita wears more fashionably than Anne. Superlative degree: Nita wears the most fashionably
clothes. Adverbs like adjectives, should be recognized by their function.
Prepositions are linking words that show the relationship of a noun or pronoun to another
word in a sentence, usually as a noun or a verb. In the following sentence into relates shop to
the verb went and the subject Bill. “Bill went into the shop.” A preposition is normally followed
by a noun or pronoun a word acting as a noun (nominal). If no nominal follows the word that
appears to be a preposition, the word under consideration is probably an adverb. For instance,
“Toto fell down the stairs. (down is a preposition): Bobby fell down (down is an adverb).
Pronouns are words that are used to replace a noun, or are used instead of a noun. Take,
for example, He instead of Jony; They instead of Kiki and Mariah; It instead of the house.
Pronouns allow us to avoid repeating the same noun. For example, Sue, will you give me your
check? Instead of Sue, will sue give me Sue’s check? In some sentences a pronoun is used because
the person or thing, that would otherwise be named, is unknown o indefinite. For example, What
is the child eating? Who is knocking on the door? Mother did not like any of my friends. Did
anyone finish the agreement?
Conjunctions are words to join another words or parts of a sentence. There are three
principle kinds of conjunctions: co-ordinating, sub-ordinating, and transitional. The role of
conjunctions in joining parts of a sentence, and in linking sentences and paragraphs, will be
explained in more details in the sections dealing with clauses and sentence classifications. The
common co-ordinating conjunctions are And, but, or Less common ones include: For, nor, yet,
so. These are said to be ‘co-ordinate’ because they join parts of a sentence that are of the same
grammatical types.
2. Terms
Terms are words or phrases used to describe a thing or to express a concept, especially
in a particular kind of language or branch of study. For example, computer, surplus, deficit,
supply, demand, etc.

3. Phrases
Phrase is a group of related words that does not contain a subject and a verb. Phrases are
comprised of Prepositional Phrases, Gerund Phrases, Infinitive Phrases, Absolute Phrases, and
Participial Phrases. For example: He let the cow to the barn.
4. Sentences
Sentence is defined as a group of words that contain Subject (S) and Predicate (P). The
difference between a phrase and a sentence lies in the existence of Predicate (P) as in the
examples mentioned above like to make matters worse, at the moment, a short while ago, etc.
As the definition of a sentence is a group of words containing Subject (S) and Predicate (P), the
elements of a sentence must be (S) and (P). The question is on the object. The object in English
is determined by the type of predicate itself; whether it is transitive or intransitive.
A transitive verb is defined as a word in verb function that needs an object. For instance,
in the word bring, send, and write. They absolutely need an object. In the example of “I am writing
a letter to my father” consists of at least two different objects which are “a letter” (direct object)
and “my father” (indirect object).

D. Pronunciation
Drought To keep bugs down To pollinate Surplus
Inflation Scale down Economic umbrella Annual fee
Membership Clientele Operation Horticulturalist

CONVERSATION
In pairs, create a conversational dialogue based upon the following pictures:
 LISTENING COMPREHENSION
Listen carefully to the tape and attempt to retell the story.

Big Business

____________________________________________________

COMPOSITION
Directions: Compose a paragraph about a business unit you are going to develop in the future
and highlight how you develop it along with your target (Milestones), coupled with
the reasons why you choose it as your business using your strength, weakness,
opportunity, and threats (SWOT).

Steps into a paragraph composition.

1. Brainstorming
2. Prioritizing
3. Outlining
4. Composing
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2 BUSINESS ELEMENTS IN A COMPANY
 UNIT 2

Part 1 Reading Comprehension

Pre-reading Questions
Exploring about the concept of a company (Brainstorming)
1. What is a company?
2. What do you think will be the elements of a company?
3. How do businesspeople divide the elements of a company?
A. Reading Passage

A Giant Factory Rises to Make a Product Filling Up the World: Plastic

Royal Dutch Shell’s plant will produce more
than a million tons of plastic, in the form of
tiny pellets. Many in the Pittsburgh area see
it as an economic engine, but others worry
about long-term harm.
MONACA, Pa. — The 386-acre property
looks like a giant Lego set rising from the
banks of the Ohio River. It is one of the
largest active construction projects in the
United States, employing more than 5,000
people.
When completed, the facility will be fed by
pipelines stretching hundreds of miles across
Appalachia. It will have its own rail system
with 3,300 freight cars. And it will produce
more than a million tons each year of
something that many people argue the
world needs less of: plastic.
As concern grows about plastic debris in the
oceans and recycling continues to falter in
the United States, the production of new
plastic is booming. The plant that Royal
Dutch Shell is building about 25 miles
northwest of Pittsburgh will create tiny
pellets that can be turned into items like
phone cases, auto parts and food packaging,
all of which will be around long after they
have served their purpose.
The plant is one of more than a dozen that
are being built or have been proposed
around the world by petrochemical
companies like Exxon Mobil and Dow,
including several in nearby Ohio and West
Virginia and on the Gulf Coast. And after
decades of seeing American industrial jobs
head overseas, the rise of the petrochemical
sector is creating excitement. On Tuesday,
President Trump is scheduled to tour the
Shell plant.
Comprehension and Discussion Questions
1. What company is going to build big number of plastics?
Answer:

2. What is it going to produce?

Answer:
3. Why is the building of the plant called a largest construction project?
Answer:
4. How many tons of plastic will it produce a year?
Answer:

5. Where is the plant located?

Answer:

6. Why is the production of plastic booming in the US?

Answer:

7. How many other companies will do the same thing as Royal Dutch plant?

Answer:

B. Vocabulary and Idiom Review

1. Plant =
2. Tiny =
3. Pellets =
4. Engine =
5. Construction =
6. Project =

7. Employing =
8. Facility =
9. To stretch =
10. To produce =
11. Debris =
12. Ocean =
13. To falter =
14. To boom =
15. Case =
16. Auto parts =
17. Packaging =
18. Petrochemical =
19. Industrial =
20. Excitement =

C. Structure and Written Expression

Economic Terms
Economic terms are standard words used in economic majors like in accounting,
management, developmental studies, business, entrepreneurship, and many others. Students
and academicians should possess an economic dictionary in that they can find the meanings of
the terms which are standardized by the experts in the economic domains. Then, the terms are
applied in phrases or sentences and finally in paragraphs and essays. As we can see in the
vocabulary and idiom review, some are listed below:
Plant Project Employment Employee Employability
Produce Product Production Industrial Industry
Autoparts Petrochemical etc.
Write 10 sentences using economic terms above:
1. ___________________________________________________________________________
2. ___________________________________________________________________________
3. ___________________________________________________________________________
4. ___________________________________________________________________________
5. ___________________________________________________________________________
6. ___________________________________________________________________________
7. ___________________________________________________________________________
8. ___________________________________________________________________________
9. ___________________________________________________________________________
10. ___________________________________________________________________________

D. Pronunciation
Utter the following economic terms:

Project Employment Employee Industry

Petrochemical Industrial Marketing

Part 2 Speaking
Presentation:
You are to sell a product to your client. Present the following products you are selling by choosing
one or two.

Part 3 Listening Comprehension

Listen carefully to the tape and try to answer the questions.
1. What is the topic about?
Answer: ________________________________________________________
 2. How many candidates of employee were interviewed?
Answer: ________________________________________________________
3. Who is Jessy Moreno?
Answer: ________________________________________________________
4. What does the candidate prefer about the job?
Answer: ________________________________________________________
5. Why does the candidate refuse to take the commute job?
Answer: ________________________________________________________
6. What does the interviewer offer the candidate?
Answer: ________________________________________________________
7. How long does it take to go to work if the candidate takes the commute job?
Answer: ________________________________________________________
8. Is there any salary negotiation during the interview?
Answer: ________________________________________________________
9. How does the candidate refuse to take the commute job?
Answer: ________________________________________________________
10. What is the conclusion of the employment interview?
Answer: ________________________________________________________
 Part 4 Composition

Directions: Analyze and give comments in writing to the above statistical data presented to
you. Your comments have to be in a descriptive paragraph of 150 words. It has to
consist of Introduction, Subject development, and Conclusion.
3 ORGANIZATIONAL HIERARCHY
 UNIT 3

Part 1 Reading Comprehension

Pre-reading Questions
Exploring Organizational Hierarchy (Brainstorming)
1. What is a hierarchy?
2. What is the function of a hierarchy in a company?
3. How do people in an industry make and run the hierarchy of their own?

A. Reading Passage

Hierarchy Defined
Meet Nathan. He is the chief executive officer of a large multinational
corporation. He manufactures a wide variety of chemicals for both
residential and commercial applications. Nathan's company engages in
business activities on five continents in over 25 countries.

The company employs over 50,000 people with a budget that rivals the
GDP of some third-world countries. Needless to say, running a
company of this size requires a high degree of organization and
management. This is where hierarchy comes in.

Hierarchy is a way to structure an organization using different levels of

authority and a vertical link, or chain of command, between superior
and subordinate levels of the organization. Higher levels control lower
levels of the hierarchy. You can think of an organizational hierarchy as
a pyramid. The highest level of authority is at the top of the pyramid,
and orders flow from this top level down to the next level where it
continues to move on down until it reaches the level where the order
is supposed to be carried out.

Information and directions flow vertically in a hierarchical structure.

Information flows up through each level until it reaches the top. After
all the information has been received and assessed, a decision will be
made at the top and will flow down through the levels of the hierarchy
until it reaches the level where the decision will be implemented. Also,
note that the top level of the hierarchy often coordinates all the
activities and communication of the various parts of the organization.
Comprehension and Discussion Questions

1. Who is Nathan?
Answer:

2. What does he do?

Answer:

3. How many employees does he recruit?

Answer:

4. How does he divide the hierarchy in his company?

Answer:

5. How does the hierarchy flow from top to the lowest levels?
Answer:

B. Vocabulary and Idiom Review

1. chief executive officer :
2. multinational :
3. corporation :
4. manufactures :
5. variety :
6. chemicals :
7. residential :
8. commercial :
9. applications :
10. To engage :
11. business :
12. activities :
13. budget :
14. rival :
15. needless to say :
16. to require :
17. direction :
 18. vertically :
19. hierarchical :
20. structure :
21. To flow up :
22. To receive :
23. To assess :
24. decision :
25. To note :
26. To coordinate :
27. communication :
28. various :
29. Parts :

C. Structure and Written Expression

Paragraphing
A paragraph is a group of sentences that develops one subject. Research has
shown that normally a paragraph is comprised of from 75 to 150 words at the most.
The elements of a paragraph consists of Introduction, Subject Development, and
Conclusion. The Introduction possesses Topic sentence and controlling ideas.
Topic sentence is a group of words that discusses a particular topic.
Controlling idea is the writer’s opinion about the topic. It shows what direction you
are going to take in writing about the topic. It helps the reader understand your
purpose for writing the paragraph or essay. Pay attention to the following example
of a Topic sentence:
Topic sentence: Victoria (Topic) is a wonderful city to visit because it has an ideal
location, beautiful gardens, and interesting things to do
(controlling ideas).

The writer has a positive feeling about Victoria and shows this by the use of positive
adjectives: wonderful, beautiful, interesting. From this topic sentence we know
that the paragraph will be about the positive aspects of the topic Victoria.
In order to find your main idea about a topic, review your pre-writing activities and
look for the most repeated words and phrases or key ideas. Look for your strongest
feeling. What makes the topic important to you?

Here is an example:

Topic Controlling Idea Feeling/Attitude

camping trips Camping with small children is hard work, positive
but worthwhile.
puppies As the puppy grows it will consume most of frustration, cautionary
your time, much of your sleep, and many of
your favourite possessions.

It is the controlling idea that the writer has to develop into a paragraph. Like in the
above example, the writer develops the reasons of having an ideal location,
beautiful gardens, and interesting things to do into details. Then, the paragraph
ends up with a Summary Sentence. A Summary sentence is a group of words that
concludes the writing of a paragraph.

D. Pronunciation
Utter the following words and phrases:
Chief Executive Officer manufacture needless to say
Multinational commercial applications
Communications corporation vertical
Hierarchical chemicals assess

Part 2 Speaking
You are the CEO of your company. You want to run an agenda meeting with your
VPs and managers. The agenda meeting is about the annual income and bonus
awards. Create the conversation in your group of 5 or 6.
 Part 3 Listening Comprehension
View the following video of Philip Hart, the CEO of DollarMart and try to answer
the following questions.
Choose the correct answer.
1. Philip Hart is angry at Brian because
a. Brian had some personal problems.
b. Brian is joking.
c. Brian lost an important contract.
2. Philip rings Marcia to ask her to
a. help him fire Brian.
b. help him decide on a replacement for Brian.
c. ask him a good question.
3. The new employee will need
a. a higher degree only
b. a higher degree and five years’ experience
c. a higher and five years’ international experience.
4. Which skills and experience are not essential for the new employee?
a. sales
b. languages
c. teamwork
5. Where is Marcia going to place an advertisement?
a. in the specialist media
b. online
c. online and in specialist media
 Part 4 Composition
As a CEO of a company, you are to write a descriptive paragraph about the reason why you need
to reorganize the structure of the company. The paragraph has to have 3 reasons to be developed
into your own descriptive paragraph. Your paragraph has to include Introduction (Topic
Sentence, Subject Development, and Summary Sentence).
The Product
4 JOB DESCRIPTION IN BUSINESS
 UNIT 4

Part 1 Reading Comprehension

Pre-reading Questions
Exploring about JobDescription in Business (Brainstorming)
1. What is a job description?
2. Why is a job description needed in a company?
3. How do you relate a job description with an organization hierarchy?

A. Reading Passage

How to Develop a Job Description

A job description is a useful, plain-language
tool that explains the tasks, duties, function
and responsibilities of a position. It details
who performs a specific type of work, how
that work is to be completed, and the
frequency and the purpose of the work as it
relates to the organization's mission and
goals. Job descriptions are used for a variety
of reasons, such as determining salary levels,
conducting performance reviews, clarifying
missions, establishing titles and pay grades,
and creating reasonable accommodation
controls, and as a tool for recruiting. Job
descriptions are useful in career planning,
offering training exercises and establishing
legal requirements for compliance purposes.
A job description gives an employee a clear
and concise resource to be used as a guide
for job performance. Likewise, a supervisor
can use a job description as a measuring tool
to ensure that the employee is meeting job
expectations.
Step 1: Perform a Job Analysis
This process of gathering, examining and
interpreting data about the job's tasks will
supply accurate information about the job so
that an organization can perform efficiently.
Performing a job analysis includes the
following steps:
 Interviewing employees to find out
exactly what tasks are being
performed.
 Observing how tasks are performed.
 Having employees fill out
questionnaires or worksheets.
 Collecting data on jobs from other
resources such as salary surveys and
the Occupational Outlook Handbook.
The results should be documented and
reviewed by the employee who is currently
in the position—and his or her supervisor—
for any changes regarding the knowledge,
skills, abilities, physical characteristics,
environmental factors and
credentials/experience of the position:
 Knowledge—comprehension of a
body of information acquired by
experience or study.
 Skill—a present, observable
competence to perform a learned
activity.
 Ability—competence to perform an
observable behavior or a behavior
that results in an observable product.
 Physical characteristics—the
physical attributes an employee
must have to perform the job duties
with or without a reasonable
accommodation.
 Environmental factors—working
conditions (inside or outside the
office).
 Credentials/experience—the
minimum level of education,
experience and certifications
acceptable for the position.
Step 2: Establish the Essential Functions
Once the performance standard for a
particular job has been made, essential
functions of the position must be defined.
This will provide a better avenue for
evaluating Americans with Disabilities Act
(ADA) accommodation requests. Defining
the essential functions encompasses the
following steps:
 Ensure that the tasks as part of the
job function are truly necessary or a
requirement to perform the job.
 Determine the frequency at which
the task is performed or how much
time is spent performing a task.
 Determine the consequences of not
performing the function and whether
this would be detrimental to the
employer's operation or result in
severe consequences.
 Determine if the tasks can be
redesigned or performed in another
manner.
 Determine if the tasks can be
reassigned to another employee.
Once the essential functions are defined, the
employer can make a determination as to
whether the functions are essential or
marginal. The use of the term "essential
function" should be part of the job
description, and it should explicitly state how
an individual is to perform the job. This will
provide future guidance as to whether the
job can be performed with or without an
accommodation.
Step 3: Organize the Data Concisely
The structure of the job description may vary
from company to company; however, all the
job descriptions within an organization
should be standardized so that they have the
same appearance.
The following topics should be included:
 Job title—name of the position.
 Classification—exempt or
nonexempt under the Fair Labor
Standards Act (FLSA).
 Salary grade/level/family/range—
compensation levels, groups or pay
ranges into which jobs of the same or
similar worth are placed, including
minimum and maximum pay bands.
 Reports to—title of the position this
job reports to.
 Date—date when the job description
was written or last reviewed.
 Summary/objective—summary and
overall objectives of the job.
 Essential functions—essential
functions, including how an
individual is to perform them and the
frequency with which the tasks are
performed; the tasks must be part of
the job function and truly necessary
or required to perform the job.
 Competency—knowledge, skills and
abilities.
 Supervisory responsibilities—direct
reports, if any, and the level of
supervision.
 Work environment—the work
environment; temperature, noise
level, inside or outside, or other
factors that will affect the person's
working conditions while performing
the job.
 Physical demands—the physical
demands of the job, including
bending, sitting, lifting and driving.
 Position type and expected hours of
work—full time or part time, typical
work hours and shifts, days of week,
and whether overtime is expected.
 Travel—percentage of travel time
expected for the position, where the
travel occurs, such as locally or in
specific countries or states, and
whether the travel is overnight.
 Required education and
experience—education and
experience based on requirements
that are job-related and consistent
with business necessity.
 Preferred education and
experience—preferred education
and experience based on
requirements that are job-related
and consistent with business
necessity.
 Additional eligibility qualifications—
additional requirements such as
certifications, industry-specific
experience and the experience
working with certain equipment.
 Affirmative action plan/equal
employment opportunity
(AAP/EEO) statement—clause(s)
that outlines federal contractor
requirements and practices and/or
equal employer opportunity
statement.
 Other duties—disclaimer, see Step 4.
Step 4: Add the Disclaimer
It is a good idea to add a statement that
indicates that the job description is not
designed to cover or contain a
comprehensive listing of activities, duties or
responsibilities that are required of the
employee. Duties, responsibilities and
activities may change or new ones may be
assigned at any time with or without notice.
Step 5: Add the Signature Lines
Signatures are an important part of
validating the job description. They show
that the job description has been approved
and that the employee understands the
requirements, essential functions and duties
of the position. Signatures should include
those of the supervisor and of the employee.
Step 6: Finalize
A draft of the job description should be
presented to upper management and the
position supervisor for review and approval.
A draft allows a chance to review, add or
subtract any detail before the final job reviews and performance appraisals.
description is approved. Employers may also wish to post them on
their intranet.
The final job descriptions should be kept in
a secure location, and copies should be
used for job postings, interviews,
accommodation requests, compensation

Comprehension and Discussion questions

1. Why is a Job description important in an organization/a company?
Answer:

2. What are the reasons of the existence of Job Description?

Answer:

3. How many steps can be found to decide a job description as in the passage?
Answer:

4. Who makes the job description in a company?

Answer:

5. What are you going to do with a job description when the organization
structure changes?
Answer:

B. Vocabulary and Idiom Review

1. Plain :
2. To complete :
3. To perform :
4. Frequency :
5. Purpose :
6. Mission :
7. Goals :
 8. Salary levels :
9. Performance reviews :
10. Clarifying mission :
11. Establishing titles :
12. Pay grades :
13. Creating :
14. reasonable :
15. accommodation :
16. controls :
17. tool :
18. To recruit :
19. offering :
20. training :
21. exercises :
22. career planning :
23. to establish :
24. legal :
25. requirements :
26. salary survey :
27. To document :
28. changes :
29. regarding :
30. the knowledge :
31. environmental :
32. factors :
33. credentials :
34. experiences :
35. To gather :
36. To interpret :
37. To supply :
38. accurate :
39. information :
40. to encompass :
41. consequences :
42. detrimental :
43. to redesign :
44. explicitly :
45. To vary :
46. Duties :
47. Responsibilities :

C. Structure and Written Expression

Developing the subject of a paragraph
Some people have no realize that the subject together unified and
problem sitting down and matter is completely cohesive sentences, comes
writing a number of ideas unorganized, and that into play.
on a sheet of paper at any there is no flow between
given time on a particular the sentences. Methods to
subject. However, after
they have jotted down These situations are where Develop Good
these thoughts, they paragraph development, a Paragraphs
review their work and system for putting
Several methods exist for stronger, more developed Once you have put all of
developing paragraphs. paragraphs. this information together,
Some writers may find return to the topic
that simply using an How to sentence. The topic
outline helps them to sentence should serve as a
better enhance their skills, Implement These mini guide to the rest of
while others may discover Methods your paragraph.
that they need to combine
all of these techniques to It is important to Support, Evidence and
put together stronger Analysis
understand each of the
writing.
methods available to
develop paragraphs. One The heart of the paragraph
Here are some methods of is the evidence used to
of the best ways to gain
developing paragraphs: prove the point. For
that understanding is by
reviewing examples of example, a piece of
 Creating an outline support in an essay about
how to tackle each of
 Topic sentence drug usage could read,
them.
development "Drug usage is becoming
 Supporting details an increasing problem in
 Using quotations
Outlining and Topic
the United States." After
and evidence Sentences
that, introduce a statistic
 Analyzing showing the rise of drug
quotations and Before beginning any type
usage over the last
evidence of writing, creating an
decade. Once you have
 Providing strong, outline is key.
cited the statistic, include
relevant a piece of analysis that
 Write down the
information explains why and how this
 Using concise main points that
you wish to discuss rise is detrimental to the
language country and to the future.
 Using colorful and in the paragraph
clear words first. Aim for two
or three main Paragraph Strength
 Crafting a strong
points. and Language
conclusion
 Underneath each
statement
main point, add a To craft a strong
 Utilizing
piece of supporting paragraph, important
appropriate
evidence from a facts, textual analysis and
transition words
journal, novel, all of the information must
 Following proper
poem, etc. be relevant. In an essay on
grammar rules
 After the evidence, the importance of gun
offer a brief control, going off on a
By using any of the
explanation. tangent about other types
methods in this list,
of weapons could be
writers, students and
others can create
detrimentally off topic.
Stay focused.
The language that you use
will also affect the
development of the
paragraph. Words such as
"good," "nice" and "bad"
are extremely vague and
should not be used in
professional writing. Find
clearer words -
"respectful," "giving" and
"selfish," for example, with
which to replace these
vague words.
Furthermore, do not using
confusing words or words
of which you do not know
the meaning, because
your lack of understanding
D. Pronunciation
Frequency
Credentials
Detrimental
Responsibilities
Part 2 Speaking
Speech: As a Human Capital Vice President, you are to deliver a speech in front of your
company employees about how important to abide by the rules and regulations of
employment in the company, like to come on time to work.
will translate to the
reader.
Clear Transitions
Crafting a strong
concluding statement
helps to transition into the
next paragraph. At the end
of one paragraph, suggest
that there is another idea
that piggybacks on top of
the one that you have
discussed, or state that
there are some
disagreeing ideas in the
field. Then, go on to write
about them in the next
paragraph.
performance reviews career planning
interpret consequence
redesign vary
Following
Grammar Rules
Even if you have the most
organized paragraph in the
world, it will not be
considered well-developed
if there are grammar
mistakes everywhere.
Consult a guide, such as
the collection of helpful
articles here on Your
Dictionary in the English
Grammar Rules & Usage
section to ensure that
your paper is free of
grammar errors.
 Part 3 Listening Comprehension
I. Listen carefully to the tape and state whether the sentences are true or false.
1. ____ Peter is new to the company.
2. ____ Peter is a designer.
3. ____ Carla works in a marketing.
4. ____ Peter plans events for new products.
5. ____ Carla is Brazilian.
6. ____ Peter started his job five years ago.
II. Write the sentences under the correct speaker.

I am happy to be here. I started last week. I design new products.

I work in the design team. I moved here from UK five years ago I’m new here.

CARLA PETER

Part 4 Composition
Develop the following paragraph subject into details of the following topic sentences:
1. Maternity payment is important because women deserve a secured life and the baby lives
happily.
2. Unpaid leave is given to the employees when the employees are in an overseas job training
and academic purposes.
The Product
Topic Sentence_________________________________________________________________
Subject
Development___________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
Topic
Sentence______________________________________________________________________
Subject
Development___________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
5 MARKETING
 UNIT 5

Part 1 Reading Comprehension

Pre-reading Questions
Exploring about Marketing (Brainstorming)
1. What is Marketing?
2. Why is Marketing needed in a company?
3. How do you relate marketing with a company?

A. Reading Passage

Marketing
What Is Marketing?

Marketing refers to activities undertaken by a company to

promote the buying or selling of a product or service.
Marketing includes advertising, selling, and delivering
products to consumers or other businesses.

Professionals who work in a corporation's marketing and

promotion departments seek to get the attention of key
potential audiences through advertising. Promotions are
targeted to certain audiences and may involve celebrity
endorsements, catchy phrases or slogans, memorable
packaging or graphic designs and overall media exposure.

Understanding Marketing

Marketing as a discipline involves all the actions a company

undertakes to draw in customers and maintain relationships
with them. Networking with potential or past clients is part of
the work too, including writing thank you emails, playing golf
with a prospective client, returning calls and emails quickly,
and meeting with clients for coffee or a meal.
At its most basic, marketing seeks to match a company's
products and services to customers who want access to those
products. The matching of product to customer ultimately
ensures profitability.

How Marketing Works

Product, price, place, and promotion are the Four Ps of

marketing. The Four Ps collectively make up the essential mix
a company needs to market a product or service. Neil Borden
popularized the idea of the marketing mix and the concept of
the Four Ps in the 1950s.

Product

Product refers to an item or items the business plans to offer

to customers. The product should seek to fulfill an absence in
the market, or fulfill consumer demand for a greater amount
of a product already available. Before they can prepare an
appropriate campaign, marketers need to understand what
product is being sold, how it stands out from its competitors,
whether the product can also be paired with a secondary
product or product line, and whether there are substitute
products in the market.

Price

Price refers to how much the company will sell the product
for. When establishing a price, companies must give
considerations to the unit cost price, marketing costs and
distribution expenses. Companies must also consider the price
of competing products in the marketplace and whether their
proposed price point is sufficient to represent a reasonable
alternative for consumers.

Place

Place refers to the distribution of the product. Key

considerations include whether the company will sell the
product through a physical storefront, online, or through both
distribution channels. When it's sold in a storefront, what kind
of product placement does it get? When it's sold online, what
kind of digital product placement of sorts does it get?
Promotion

Promotion, the fourth P, refers to the integrated marketing

communications campaign. Promotion includes a variety of
activities such as advertising, selling, sales promotions, public
relations, direct marketing, sponsorship, and guerrilla
marketing.

Promotions will vary depending on what stage of the product

life cycle the product is in. Marketers understand that
consumers associate a product’s price and distribution with
its quality, an Special Considerations.

As of 2017, approximately 40% of U.S. Internet users buy

several items online per month. Experts expect online sales
in the U.S. to increase from $504 billion in 2018 to over $735
billion by 2023.

Taking these statistics into consideration, it is vital for

marketers to use online tools such as social media and digital
advertising, both on website and mobile device applications,
and internet forums. Considering an appropriate distribution
channel for products purchased online is also an important
step. Online marketing is a critical element of a complete
marketing strategy.

Key Takeaways

 Marketing refers to all activities a company takes to

promote and sell products or services to consumers.
 Marketing makes use of the "marketing mix," also
known as the four Ps—product, price, place, and
promotion.
 At its core, marketing seeks to take a product or
service, identify its ideal customers, and draw the
customers' attention to the product or service
available.

Comprehension and Discussion Questions

1. What does the writer say about Marketing?
Answer:
2. How many elements are involved in the Marketing?
Answer:

3. What will happen if one element of Marketing is missing?

Answer:

4. How does the author narrate about the use of internet in Marketing in the US?
Answer:

5. In your opinion, how do you rate Marketing among other departments in a

company?
Answer:

B. Vocabulary and Idiom Review

1. To undertake :
2. Professional :
3. To promote :
4. Audience :
5. Target :
6. Catchy :
7. Slogan :
8. To draw :
9. Perspective :
10. To return :
11. Campaign :
12. Marketers :
13. Competitors :
14. Cost price :
15. Expenses :
16. To represent :
17. Reasonable :
18. Alternative :
19. Consumer :
20. Store front :
21. Communication :
22. Campaign :

C. Structure and Written Expression

Writing a Summary Sentence
In writing a summary sentence, the author has to paraphrase without any direct
quotes from the original materials and should not be copying and pasting
sentences right from the original. The author should be using his/her own words.

D. Pronunciation
Undertake professional perspective
Campaign marketers competitors
Reasonable alternative cost price

Part 2 Speaking
You are a professional marketer. You attempt to sell a new product to your customer. Your
product is nearly similar to the existing product but with several positive selling points. Present
your product in front of the audiences.
 Part 3 Listening Comprehension
Listen and attempt to decide whether the statements are True (T) or False (T)

_____1. Daniel shows Philip and Marcia a picture of his family.

_____2. Daniel thinks that the sales team will be upset if he leaves.
_____3. Sarah did a complete analysis of the strengths and weaknesses of WebWare.
_____4. Philip is impressed by Daniel’s presentation.
_____5. Philip is impressed by Sarah’s presentation.

Part 4 Composition
Pricelist and quotations are important aspects in Marketing. You have your own product to be
promoted. Compose the pricelist and quotations or flyer to your client. Create as innovative as
possible.
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
6 FINANCE
 UNIT 6

Part 1 Reading Comprehension

Pre-reading Questions
Exploring about Finance (Brainstorming)
1. What is Finance?
2. Why is Finance important in a company?
3. How do you relate finance with a company?

A. Reading Passage

Finance
What Is Finance?

Finance is a term broadly describing the study and system of

money, investments, and other financial instruments. Some
authorities prefer to divide finance into three distinct
categories: public finance, corporate finance, and personal
finance. Other categories include the recently emerging area of
social finance and behavioral finance, which seeks to identify
the cognitive (e.g., emotional, social, and psychological)
reasons behind financial decisions.

The Basics of Finance

Finance, as a distinct branch of theory and practice from

economics, arose in the 1940s and 1950s with the works of
Markowitz, Tobin, Sharpe, Treynor, Black, and Scholes, to
name just a few. Of course, topics of finance—such as money,
banking, lending, and investing—had been around since the
dawn of human history in some form or another.

Today, "finance" is typically broken down into three broad

categories: Public finance includes tax systems, government
expenditures, budget procedures, stabilization policy and
instruments, debt issues, and other government concerns.
Corporate finance involves managing assets, liabilities,
revenues, and debts for a business. Personal finance defines all
financial decisions and activities of an individual or household,
including budgeting, insurance, mortgage planning, savings,
and retirement planning.

Public Finance

The federal government helps prevent market failure by

overseeing the allocation of resources, distribution of income,
and stabilization of the economy. Regular funding for these
programs is secured mostly through taxation. Borrowing from
banks, insurance companies, and other governments and
earning dividends from its companies also help finance the
federal government.

State and local governments also receive grants and aid from
the federal government. Other sources of public finance include
user charges from ports, airport services, and other facilities;
fines resulting from breaking laws; revenues from licenses and
fees, such as for driving; and sales of government securities and
bond issues.

Corporate Finance

Businesses obtain financing through a variety of means,

ranging from equity investments to credit arrangements. A firm
might take out a loan from a bank or arrange for a line of credit.
Acquiring and managing debt properly can help a company
expand and become more profitable.

Startups may receive capital from angel investors or venture

capitalists in exchange for a percentage of ownership. If a
company thrives and goes public, it will issue shares on a stock
exchange; such initial public offerings (IPO) bring a great
influx of cash into a firm. Established companies may sell
additional shares or issue corporate bonds to raise money.
Businesses may purchase dividend-paying stocks, blue-chip
bonds, or interest-bearing bank certificates of deposits (CD);
they may also buy other companies in an effort to boost
revenue.
For example, in July 2016, the newspaper publishing
company Gannett reported net income for the second quarter of
$12.3 million, down 77% from $53.3 million during the 2015
second quarter. However, due to acquisitions of North Jersey
Media Group and Journal Media Group in 2015, Gannett
reported substantially greater circulation numbers in 2016,
resulting in a 3%

Personal Finance

Personal financial planning generally involves analyzing an

individual's or a family's current financial position, predicting
short-term, and long-term needs, and executing a plan to fulfill
those needs within individual financial constraints. Personal
finance depends largely on one's earnings, living requirements,
and individual goals and desires.

Matters of personal finance include but are not limited to, the
purchasing of financial products for personal reasons, like
credit cards; life, health, and home insurance; mortgages; and
retirement products. Personal banking (e.g., checking and
savings accounts, IRAs, and 401(k) plans) is also considered a
part of personal finance.

The most important aspects of personal finance include:

 Assessing the current financial status: expected cash

flow, current savings, etc.
 Buying insurance to protect against risk and to ensure
one's material standing is secure
 Calculating and filing taxes
 Savings and investments
 Retirement planning

As a specialized field, personal finance is a recent development,

though forms of it have been taught in universities and schools
as "home economics" or "consumer economics" since the early
20th century. The field was initially disregarded by male
economists, as "home economics" appeared to be the purview
of housewives. Recently, economists have repeatedly stressed
widespread education in matters of personal finance as integral
to the macro performance of the overall national economy.
Social Finance

Social finance typically refers to investments made in social

enterprises including charitable organizations and some
cooperatives. Rather than an outright donation, these
investments take the form of equity or debt financing, in which
the investor seeks both a financial reward as well as a social
gain.

Modern forms of social finance also include some segments of

microfinance, specifically loans to small business owners and
entrepreneurs in less developed countries to enable their
enterprises to grow. Lenders earn a return on their loans while
simultaneously helping to improve individuals' standard of
living and to benefit the local society and economy.

Social impact bonds (also known as Pay for Success Bonds or

social benefit bonds) are a specific type of instrument that acts
as a contract with the public sector or local government.
Repayment and return on investment are contingent upon the
achievement of certain social outcomes and achievements.

Behavioral Finance

There was a time when theoretical and empirical evidence

seemed to suggest that conventional financial theories were
reasonably successful at predicting and explaining certain types
of economic events. Nonetheless, as time went on, academics
in the financial and economic realms detected anomalies and
behaviors which occurred in the real world but which could not
be explained by any available theories. It became increasingly
clear that conventional theories could explain certain
“idealized” events, but that the real world was, in fact, a great
deal more messy and disorganized, and that market participants
frequently behave in ways which are irrational, and thus
difficult to predict according to those models.

As a result, academics began to turn to cognitive psychology in

order to account for irrational and illogical behaviors which are
unexplained by modern financial theory. Behavioral science is
the field which was born out of these efforts; it seeks to explain
our actions, whereas modern finance seeks to explain the
actions of the idealized “economic man” (Homo economicus).

Behavioral finance, a sub-field of behavioral economics,

proposes psychology-based theories to explain financial
anomalies, such as severe rises or falls in stock price. The
purpose is to identify and understand why people make certain
financial choices. Within behavioral finance, it is assumed the
information structure and the characteristics of market
participants systematically influence individuals' investment
decisions as well as market outcomes.

Daniel Kahneman and Amos Tversky, who began to

collaborate in the late 1960s, are considered by many to be the
fathers of behavioral finance. Joining them later was Richard
Thaler, who combined economics and finance with elements of
psychology in order to develop concepts like mental
accounting, the endowment effect, and other biases which have
an impact on people’s behavior.

Tenets of Behavioral Finance

Behavioral finance encompasses many concepts, but four are

key: mental accounting, herd behavior, anchoring, and high
self-rating and overconfidence.

Mental accounting refers to the propensity for people to

allocate money for specific purposes based on miscellaneous
subjective criteria, including the source of the money and the
intended use for each account. The theory of mental accounting
suggests that individuals are likely to assign different functions
to each asset group or account, the result of which can be an
illogical, even detrimental, set of behaviors. For instance, some
people keep a special “money jar” set aside for a vacation or a
new home while at the same time carrying substantial credit
card debt.

Herd behavior states that people tend to mimic the financial

behaviors of the majority, or herd, whether those actions are
rational or irrational. In many cases, herd behavior is a set of
decisions and actions that an individual would not necessarily
make on his or her own, but which seem to have legitimacy
because "everyone's doing it." Herd behavior often is
considered a major cause of financial panics and stock market
crashes.

Anchoring refers to attaching spending to a certain reference

point or level, even though it may have no logical relevance to
the decision at hand. One common example of “anchoring” is
the conventional wisdom that a diamond engagement ring
should cost about two months’ worth of salary. Another might
be buying a stock that briefly rose from trading around $65 to
hit $80 and then fell back to $65, out of a sense that it's now a
bargain (anchoring your strategy at that $80 price). While that
could be true, it's more likely that the $80 figure was an
anomaly, and $65 is the true value of the shares.

High self-rating refers to a person's tendency to rank

him/herself better than others or higher than an average
person. For example, an investor may think that he is an
investment guru when his investments perform optimally (and
blocks out the investments that are performing poorly). High
self-rating goes hand-in-hand with overconfidence, which
reflects the tendency to overestimate or exaggerate one’s ability
to successfully perform a given task. Overconfidence can be
harmful to an investor’s ability to pick stocks, for example. A
1998 study entitled “Volume, Volatility, Price, and Profit
When All Traders Are Above Average,” by researcher
Terrence Odean found that overconfident investors typically
conducted more trades as compared with their less-confident
counterparts—and these trades actually produced yields
significantly lower than the market.

Comprehension and Discussion Questions

1. What does the writer say about Finance?
Answer:

2. How many kinds of finances can you find in the passage?

Answer:

3. How do you compare between Behavioral finance and Personal Finance?

Answer:

4. What does the passage say about Public finance?

Answer:

5. In your opinion, what will be your profession in finance?

Answer:
 B. Vocabulary and Idiom Review
1. Expenditure :
2. Budget :
3. Debt issue :
4. Liabilities :
5. Revenues :
6. Debts :
7. Insurance :
8. Mortgage planning :
9. Savings :
10. Retirement planning :
11. To oversee :
12. allocation :
13. Distribution of income :
14. Funding :
15. Taxation :
16. earning dividends :
17. charges :
18. port :
19. airport services :
20. initial public offerings :
 C. Structure and Written Expression
Essay Writing

An essay is defined as "a short piece of writing that expresses information as well as the
writer's opinion."

7 Steps to Writing an Essay

For some, writing an essay is as simple as sitting down at their computer and beginning to type,
but a lot more planning goes into writing an essay successfully. If you have never written an essay
before, or if you struggle with writing and want to improve your skills, it is a good idea to go
through several steps in the essay writing process.

For example, to write an essay, you should generally:

 Decide what kind of essay to write

 Brainstorm your topic
 Do research
 Develop a thesis
 Outline your essay
 Write your essay
 Edit your writing to check spelling and grammar

While this sounds like a lot of steps to write a simple essay, if you follow them you will be able to
write more successful, clear and cohesive essays.

Choose the Type of Essay

The first step to writing an essay is to define what type of essay you are writing. There are four
main structures into which essays can be grouped:

 Narrative Essay: Tell a story or impart information about your subject in a straightforward,
orderly manner.
 Persuasive Essay: Convince the reader about some point of view.
 Expository Essay: Explain to the reader how to do a given process. You could, for example,
write an expository essay with step-by-step instructions on how to make a peanut butter
sandwich.
 Descriptive Essay: Focus on the details of what is going on. For example, if you want to
write a descriptive essay about your trip to the park, you would give great detail about
what you experienced: how the grass felt beneath your feet, what the park benches
looked like, and anything else the reader would need to feel as if he were there.
Knowing what kind of essay you are trying to write can help you decide on a topic and structure
your essay in the best way possible.

Brainstorm

You cannot write an essay unless you have an idea of what to write about. Brainstorming is the
process in which you come up with the essay topic. You need to simply sit and think of ideas
during this phase.

 Write down everything that comes to mind as you can always narrow those topics down
later.
 You could use clustering or mind mapping to brainstorm and come up with an essay idea.
This involves writing your topic or idea in the center of the paper and creating bubbles
(clouds or clusters) of related ideas around it.

Brainstorming can be a great way to develop a topic more deeply and to recognize connections
between various facets of your topic.

Once you have a list of possible topics, it's time to choose the best one that will answer the
question posed for your essay. You want to choose a topic that is neither too broad nor too
narrow.

If you are given an assignment to write a one-page essay, it would be far too much to write about
"the history of the US" since that could fill entire books. Instead, you could write about a specific
event within the history of the United States: perhaps signing the Declaration of Independence
or when Columbus discovered the U.S.

Choose the best topic idea from among your list and begin moving forward on writing your essay.

Research the Topic

Once you have done your brainstorming and chosen your topic, you may need to do some
research to write a good essay. Go to the library or search online for information about your
topic. Interview people who might be experts in the subject. Keep your research organized so it
will be easy for you to refer back to, and easy for you to cite your sources when writing your final
essay.

Develop a Thesis

Your thesis statement is the main point of your essay. It is essentially one sentence that says what
the essay is about. For example, your thesis statement might be "Dogs are descended from
wolves." You can then use this as the basic premise to write your entire essay, remembering that
all of the different points throughout need to lead back to this one main thesis. The thesis will
usually be used in your introductory paragraph.

The thesis statement should be broad enough that you have enough to say about it, but not so
broad that you can't be thorough.

Outline Your Essay

The next step is to outline what you are going to write about. This means you want to essentially
draw the skeleton of your paper. Writing an outline can help to ensure your paper is logical, well
organized and flows properly.

Start by writing the thesis statement at the top and then write a topic sentence for each
paragraph below. This means you should know exactly what each of your paragraphs is going to
be about before you write them.

 Don't jumble too many ideas in each paragraph or the reader may become confused.
 Ensure you have transitions between paragraphs so the reader understands how the
paper flows from one idea to the next.
 Fill in facts from your research under each paragraph that you want to write about when
you write the essay. Make sure each paragraph ties back to your thesis and creates a
cohesive, understandable essay.

Write the Essay

Once you have an outline, its time to start writing. Write from the outline itself, fleshing out your
basic skeleton to create a whole, cohesive and clear essay.

You will want to edit and re-read your essay, checking to make sure it sounds exactly the way you
want it to. You want to:

 Revise for clarity, consistency, and structure.

 Make sure everything flows together.
 Support your thesis adequately with the information in your paragraphs.
 Make sure you have a strong introduction and conclusion so the reader comes away
knowing exactly what your paper was about.

Check Spelling and Grammar

Now the essay is written but you're not quite done. Reread what you've written, looking out for
mistakes and typos.

 Revise for technical errors.

  Check for grammar, punctuation and spelling errors. You cannot always count on spell
check to recognize every spelling error as sometimes you can spell a word incorrectly but
your misspelling will also be a word, such as spelling "from" as "form."

D. Pronunciation
Insurance mortgage planning retirement plan
Budget debt issue Liabilities
Distribution of income earning dividends charges
Airport services

Part 2 Speaking
Presentations
Revenues and liabilities are two important aspects in Finance. This year, your company has
more liabilities to pay that affect so much to the operational cost of the company. Present your
financial statement by an argument that the company needs to save more money.

Part 3 Listening Comprehension

Listen to the following video about loan and try to answer that follow:
https://www.youtube.com/watch?v=WTt3rmDnsIU
1. What does the narrator say about loan process?
Answer:

2. How many aspects do you need to consider about getting a loan from the bank?
Answer:

3. Why does a customer want to get a loan?

Answer:

4. How does the loan agency react to the customer?

Answer:

5. What does the loan agency suggest the customer to do to get a loan?
Answer:
 Part 4 Composition
Write an essay about how an annual financial statement is important for a
company.
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