1. Guess the words
2. A finished budget, usually requiring considerable effort is called…
3. There are … basic approaches or philosophies when it comes to budgeting.
4. Something that can also be used as a pricing tool is…
5. A list of all necessary purchases includes…
6. The first approach focuses on …
7. The second approach focuses on …
2. Fill in the gaps with the following words:
to study, use, since, efficient, deals with, equipment, resources
Economics (1) the problems of scarcity and choice that have faced societies and nations throughout history, but the development of modern economics began in 17th century. (2) the time economics have developed methods for studying and explaining how individuals, businesses and nations (3) their available economic (4). Large corporations use economists (5) the ways they do business and to suggest methods for making more (6) use of their employees, (7), factories and other resources.
3. Match the words and their definitions
| 1 | society | A производство |
| 2 | scarcity | B служащий |
| 3 | incomes | C инфляция издержек |
| 4 | advertising | D управление |
| 5 | profit | E частная собственность |
| 6 | wealth | F товары и услуги |
| 7 | consume | G благосостояние |
| 8 | produce | H рыночная экономика |
| 9 | private ownership | I личнаясобственность |
| 10 | personal property | J потреблять |
| 11 | production | K плановая экономика |
| 12 | employer | E работодатель |
| 13 | employee | M экономическая система |
| 14 | investment | N банковские счета |
| 15 | market economy | O инфляция |
| 16 | planned economy | P прибыль |
| 17 | mixed economy | Q инфляция |
| 18 | economic system | R производить |
| 19 | savings | S товары и услуги |
| 20 | bank accounts | T инвестиция |
| 21 | inflation | U общество |
| 22 | demand- pull inflation | V продажа |
| 23 | cost- push inflation | W дефицит |
| 24 | sales | X доходы |
| 25 | goods and services | Y реклама |
| 26 | management | Z инфляция спроса |
4. Read and translate the text
Budget
The process of calculating the costs of starting a small business begins with a list of all necessary purchases including tangible assets (for example, equipment, inventory) and services (for example, remodeling, insurance), working capital, sources and collateral. The budget should contain a narrative explaining how you decided on the amount of this reserve and a description of the expected financial results of business activities. The assets should be valued with each and every cost. All other expenses are like labour factory overhead all freshmen expenses are also included into business budgeting.
The budget of a company is often compiled annually, but may not be. A finished budget, usually requiring considerable effort, is a plan for the short-term future, typically one year. While traditionally the Finance department compiles the company's budget, modern software allows hundreds or even thousands of people in various departments (operations, human resources, IT, etc.) to list their expected revenues and expenses in the final budget.
If the actual figures delivered through the budget period come close to the budget, this suggests that the managers understand their business and have been successfully driving it in the intended direction. On the other hand, if the figures diverge wildly from the budget, this sends an 'out of control' signal, and the share price could suffer as a result.
A budget is a fundamental tool for an event director to predict with reasonable accuracy whether the event will result in a profit, a loss or will break-even. A budget can also be used as a pricing tool.
There are two basic approaches or philosophies when it comes to budgeting. One approach focuses on mathematical models, and the other on people.
The first school of thought believes that financial models, if properly constructed, can be used to predict the future. The focus is on variables, inputs and outputs, drivers and the like. Investments of time and money are devoted to perfecting these models, which are typically held in some type of financial spreadsheet application.
The other school of thought holds that it’s not about models, it’s about people. No matter how sophisticated models can get, the best information comes from the people in the business. The focus is therefore in engaging the managers in the business more fully in the budget process, and building accountability for the results. The companies that adhere to this approach have their managers develop their own budgets. While many companies would say that they do both, in reality the investment of time and money falls squarely in one approach or the other.
5. Answer the questions
1. What is a budget?
2. What should the budget contain?
3. Who compiles the budget?
4. What two basic approaches are used in budgeting?
5. How often is budget compiled?
6. Match the words and their definitions
| 1. purchase | a. property or other goods that you promise to give someone if you cannot pay back the money they lend you |
| 2. collateral | b. the things that a company owns |
| 3. assets | c. something you buy, or the act of buying it |
| 4. budget | d. the amount of money that you have to pay in order to buy, do, or produce something |
| 4. budget | e. the money that is available to an organization or person, or a plan of how it will be spent |
7. Translate the following words and expressions into English
1. материальные активы 6. переменная
2. подотчетность 7. курс (цена) акции
3. механизм ценообразования 8. расходы
4. выручка 9. финансовый отдел
5. оборотный (рабочий) капитал 10. составление бюджета
8. Translate the following words and expressions into Russian
1. to predict with reasonable accuracy 6. financial models
2. overhead expenses 7. human resources department
3. business budgeting 8. financial spreadsheet
4. mathematical models 9. inputs and outputs
5. profit 10. compile budget
9. Translate into Russian and define the function of the Infinitive in the following sentences
1. То produce goods and services firms use the following factors of production: workers' time, talents and knowledge, equipment, land, buildings.
2. To know the contribution of every industry to the national economy is very important for the government.
3. The government ought to take steps to reduce the unemployment rate.
4. The problem is that demands are practically limitless and the resources – natural resources, labour and capital – available at one time to produce goods and services are limited in supply.
5. To meet the requirements of a variety of potential users is the purpose of economic statistics.
6. Like physical capital, human capital is important enough to be an indicator of economic development of a nation.
7. To build atomic power stations near rivers is common practice as they require a lot of water for cooling (охлаждение).
10. Choose the right variant of answer
1. The budget of a company is usually compiled ………..
a) every week b) every month c) annually
2. ……… is a fundamental tool to predict with reasonable accuracy whether the event will result in a profit, a loss or will break-even.
a) budget b) financial model c) overhead expense
3. Traditionally the ……….. compiles the company's budget.
a) manager b) accountant c) Finance department
4. When a company owns some material things they are called ………
a) liabilities b) tangible assets c) intangible assets
5. The managers involved in the budget process have …………….
a) responsibility b) duties c) accountability
11. Read the model letter. Pay attention to the notes
|
Bryan&Co., 16 Kensington Gardens, London 10th April 2000 The Marketing Manager Messrs Cook&Brothers Ltd., 17 High Street Somersetville, Kent
Dear Sirs, Re: our order B-67 It is now over 6 weeks since we sent in the above order, and we are still awaiting delivery. We regret that unless you are able to give us an assurance of delivery within the next two weeks, we shall be obliged to cancel the order. Please treat this matter as urgent. Yours faithfully T.Kelvin, Marketing Manager |
Notes –
a) The opening ‘It is now over (more than) 6 weeks since we…’ emphasizes the time the writer has been waiting. ‘More than’ and ‘almost’ are more formal than ‘over’ and ‘nearly’.
b) ‘We are awaiting delivery’ is more formal than ‘We are waiting for delivery’.
c) ‘unless you are able’ = if you are able. The former is more emphatic.
d) The final sentence ‘Please …’ combines politeness with urgency and slight annoyance.
Compose letters out of the following:
1) It/now/almost/month/since/you agreed/ install/ the equipment/ we/ purchased/ you/ April. We regret/ unless/ the equipment/ installed/ two weeks/ we / obliged/ report/ Head Office. Please/ treat/ matter/ urgent;
2) …more/ three months…you/ expressed/ interest/ setting up/ joint venture/ we … awaiting/ your comments/ draft scheme. We … you/ prepared/ let us know these/ near future/ we/ obliged/ seek/ other arrangements. Please treat…;
3) …more/ 4 months/ you became/ our agents/ we not yet received/ one good order. Unless/ you/ able/ sell/ more/ our goods/ we / obliged/ seek/ services/ another agent. Please treat….
12. Insert prepositions where necessary:
Dear Sirs,
I refer ... the telex of Mr Francis dated... March 19th,2001, and write personally to apologize... the last minute postponement... our visit... Moscow ...March 21st. Given the number and relative importance... the topics which we wished to discuss...you, it was considered... my colleagues in Vienna to be more appropriate if I were party... the discussions.
I look ...our meeting... the revised date...Wednesday April 18th, again ...11:30
a.m. One ...the major topics we had...discussion was your telex dated January 5th, 2001 ... our Head Office instructing...us...the new procedures. You are aware
that...date we have not been complying...this instruction and Mr. Francis ...his recent telex indicated I would write ...you...this subject. I look forward ... discussing this further...you when we meet... Moscow... April 18th.
Best regards,
Yours faithfully,
Dear Mr...,
...my return...London I am writing ...behalf...Mr...and myself to thank you...your kind reception when we visited you ... last month. As we told... you we were extremely pleased to have noted greater activity our two institutions...the field...Euro-currency deposits, although you very kindly explained that ... view...the fact that there is...present a two hour difference...obtaining... quotations...order to assist you further we are arranging...
... your office to call us...time...time approximately...10 a.m. London time and we trust that this will be helped ...you. Finally, I should like to thank you... your kind hospitality... luncheon which we greatly enjoyed and I should be most grateful if you would also convey...Mr...my personal thanks...his kindness
... accompanying me...my visit...the Dental Clinic.
Kindest regards,
Yours sincerely,
Dear Mr...
I am writing to thank you and your colleagues... the stimulating meeting you chaired...Mr Smith and myself...last week, and to say how much we enjoyed...your company...lunch afterwards.
I was very conscious...your remarks...the level...business between our two institutions. While I have already brought this comment ...attention ...my Head Office, I should be happy to discuss this topic...you...greater detail...a future occasion. I look forward ...the pleasure...seeing you...near future, and... broadening my acquaintance...your colleagues...the Bank...Foreign Trade.
Best regards,
Yours faithfully.
13. Complete this letter by suitable words
Dear Mr…,
| Having recently…to Tokyo, I take this first…to thank you for the…you…to Mr.Brown and me when we were…to…your… institution. |
to call on to assist fruitful opportunity to extend fine to be honoured hospitality objective to find to return sincere kind appreciate respectfully keep in mind to consider to look forward to visit mutual to see esteemed way to be privileged to offer wish to pass |
| I…our meeting and discussion to be…and interesting, certainly…us to achieve the…of our trip. | |
| I very much…your…suggestion on our providing additional services. As I explained during our meeting, we shall…this suggestion … . At the same time we …ask you to … our proposal that you open a U.S. Dollar account with our bank. | |
| I have heard that Mr. Smith, your Deputy Chairman, will be…Japan this autumn. I…to…him again, and to discussing subjects of…interest. | |
| In… … personal regards, I look forward to … of expanding business activities we are … to enjoy with your bank. | |
|
Please …on my best… to Mr. Collins, your Deputy General Manager Yours faithfully |