E s c u e l a S u p e r i o r d e C o m e r c i o. D e p a r t a m e n t o d e L e n g u a s I n g l é s 4 TH YEAR BASIC

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1 E s c u e l a S u p e r i o r d e C o m e r c i o L i b e r t a d o r Gr a l. S a n M a r t í n D e p a r t a m e n t o d e L e n g u a s I n g l é s 4 TH YEAR BASIC

2 UNIT 1 WAYS OF PAYMENT When we make a purchase, we must pay for the goods we buy. Purchase: act of buying something How can we pay? You have to know how to spend your money on, and also the methods you can choose to pay. With all of the options for making purchases and payments, it can be difficult to know which payment method to choose and if there s a best way to pay for things. The following advantages and disadvantages of each payment method can help you determine which one best suits your needs. 1- TO PAY CASH To pay cash: to pay at the moment the purchase is made To pay cash # to pay on credit Instalment: sum we pay periodically when we pay on credit. (to pay in instalments) 2- TO PAY IN CASH To pay in cash: to pay with money To pay in cash # to pay with a document Advantages: Using cash can be a great way to avoid overspending. You can choose exactly how much you re willing to spend and carry that amount with you, then stop spending when your wallet is empty Disadvantages: For some people, cash can burn a hole in their wallets: The temptation can lead to undesired spending burn a hole in one s pocket: (of money that is handy) to cause a desire to spend quickly 3- TO PAY USING A CREDIT CARD Advantages: For certain purchases, credit cards may be convenient or even necessary. For some purchases, you may be required to use a card things like booking a hotel room or rental car in advance. Many credit cards offer rewards programmes that allow you to earn points that are redeemable for things like travel and merchandise; other rewards programmes offer you cash back. You re also protected if your credit card is stolen Disadvantages: some businesses charge extra fees for credit card payments. Some retail shops enforce a minimum credit card purchase. Banks charge businesses a fee when customers pay with a credit card. so many businesses set a minimum amount for credit card purchases. 4- TO PAY USING A DEBIT CARD Advantages: Like credit cards, debit cards can be used to pay for things in cases where cash is not accepted. The money you spend comes directly out of your savings account, making it a great way to avoid spending more money than you have available

3 Disadvantages: Pay attention to the balance before using your debit card. If you try to spend more than you have, your purchase may be declined. 5- TO PAY BY CHEQUES CHEQUES (British English) CHECKS (American English) CHEQUE: a written order, usually on a standard printed form, directing a bank to pay money. It is used instead of money to pay for things. (To pay by cheque / check) Advantages: some businesses charge extra fees for credit card payments. Checks are traceable. They are easy to follow or locate Some retail shops enforce a minimum credit card purchase. Banks charge businesses a fee when customers pay with a credit card. so many businesses set a minimum amount for credit card purchases. Disadvantages: until about five years ago, people used to carry their chequebook everywhere. This change in consumer behaviour is the result of several factors: - the introduction of more convenient payment methods. For many people, it is faster and simpler to swipe a debit or credit card than it is to write out a check while shopping. - security is another reason for the decline in use of paper checks. If a checkbook is lost or stolen, victims should make the complaint before the bank CHARACTERISTICS A cheque is an order of payment to order or to bearer. It is a negotiable document. It can be endorsed and thus transferred to a third party. When we pay with a cheque we fill in the counterfoil with the receiver s name, the date and the amount of money as a record of payment. PARTIES TO A CHEQUE There are three parties to a cheque: Drawer: party who signs the cheque Drawee: party that must pay the cheque (the bank) Payee: the person to whom a cheque must be paid. KINDS OF CHEQUES Order cheque. It contains the payee s name. It must be endorsed so that it may be cashed or deposited. Bearer cheque. It doesn t contain the payee s name. It is paid to the person presenting it. Crossed cheque. It can t be cashed. It must be deposited in a current account or savings account. 6- TO PAY IN ADVANCED: to pay before the goods are delivered 7- TO PAY ON DELIVERY: to pay at the moment the goods are delivered - 2 -

4 8- PROMISSORY NOTE (PN) = NOTE = NOTE OF HAND It s a written promise of payment. This document is usually negotiable and contains a signed promise to pay a stated sum of money to a particular person at a designated date or on demand. There are two parties to a PN: Maker: party who signs the PN Payee: person who receives the money 9- NEW PAYMENT OPTIONS These days, you may be able to pay for a purchase using your smart phone some phones allow you to buy things by tapping your phone on a terminal at checkout. Another popular option is payment via apps, digital wallets or other programmes. These payment methods usually link to your credit card, debit card or your bank account. BEFORE PAYING RECEIPT When we make a payment we are given a receipt. When we only pay a part of a debt we are given a receipt on account INVOICE When goods are sold an invoice is given to the customer stating the quantity, quality and price of the goods sold, and sometimes conditions of payment and delivery. The details that an invoice must contain are: Name and address of the customer and the seller Order number Date and delivery terms Number and kind of articles sent, price, discount and total terms of payment and methods of despatch

5 PRACTICE ALPHABET SOUP C H E A P T Y M P U S Q B E C L C P G Y O P M E C I O V N I N O A C H E Q U E B O O K D A R I Y S C H J L Z M B C C O C Y N E A H A P Q S X R U J R C M D E S I N A J Y O W S M S O E A A E P B Y O S R M T P E U B D K T U O M S D E H O J D N P I X E W H E R I S T M K H T U D K T R D N D E Z S E W E L R E C E I P T L G B A R Y A P C P L A N D L C R E D I T T Y H O I R W E S P H A C I E F D A S O A R E S C L R M W R A R S I I N S T A L M E N T S R A E T P D Q G I X O R W U T D W W E I R U D Y D N P K T M R E X D R A W E E G E A Y H E E R C H E Q U E T H Y R G U N V A G O A L L I O F R E T N U O C N E G O T I A B L E E N T Y H Find the following words. d References two letters: by three letters: pay four letters: cash five letters: payee- maker- money six letters: credit- bearer- drawee- drawer- seller seven letters: invoice- receipt- crossed- account- payment- overdraft- current eight letters: purchase- endorsed- customer nine letters: deposited ten letters: negotiable- counterfoil- chequebook eleven letters: instalments - 4 -

6 INVOICE - 5 -

7 CHECKS ORDER CHEQUE - 6 -

8 CROSSED CHECK BEARER CHECK - 7 -

9 COUNTERFOIL RECEIPT - 8

10 SALES RECEIPT Date... Qty. Description Price Amount Subtotal:... Tax:... Total:... Sale Made with:... [ ] Cash... [ ] Credit Card:... [ ] Check, No. :... [ ] Other:... PROMISSORY NOTE Mr agrees and do promise to pay a sum of USD 86,000 in 10 equal installments due at every 1 st of month starting from 01-Aug Party 1 Party 2 Name: Name: Signature: Signature:

11 UNIT 2 TYPES OF BUSINESS ORGANIZATIONS People transact business in different ways. It is important that the business owner seriously considers the different forms of business organization types such as sole proprietorship, partnership, and corporation. Which organizational form is most appropriate can be influenced by tax issues, legal issues, financial and personal interests. 1- SOLEPROPRIERTORSHIP or SOLE TRADER: it is the simplest way. The business is owned by only one person. Advantages - Ease of formation and dissolution - Ownership of all profits - Sole Proprietorships are typically subject to fewer regulations. Disadvantages - Unlimited liability. Owners who organize their business as a sole proprietorship are personally responsible for the obligations of the business - It is difficult for an individual to raise capital 2- PARTNERSHIP: a business owned by two or more people. They decide to enter into business contributing either with their work (working partner) or with their capital (sleeping partner). In general a contract is signed specifying each person s obligations and the amount of profits to be received. This contract is very important because it provides solution to conflicts in case of disagreements or problems between partners. In most cases partners invest equal capital, get equal profits, and share authority. Advantages - Partnerships are relatively easy to form - Partnerships may be subject to fewer regulations than corporations Disadvantages - There is a real possibility of disputes or conflicts between partners which could lead to dissolving the partnership Partnerships can be classified as: Limited liability: in case of bankruptcy, each partner is liable (responsible) only for the money invested in the business. Unlimited liability: in case of bankruptcy, partners are responsible not only for the money invested in the business but also for their private assets. 3- CORPORATION: a big company or a group of companies acting together as a single organization. Corporations are owned by stockholders or shareholders. Generally they don t run or manage the business. They elect a board of directors to oversee primary responsibilities

12 Stockholders invest money in a business by buying shares. A stockholder owns a part of the company proportional to the number of shares he has bought.. Advantages - Unlimited commercial life. The corporation does not dissolve when ownership changes. - Ease of transferring ownership by selling stock. - Limited liability. This limited liability is probably the biggest advantage to organizing as a corporation. If a business fails, the stockholders lose only the money they have paid for the shares. If the business is successful, they can make good money Disadvantages - Regulatory restrictions. Corporations are typically more closely monitored by governmental agencies. - They have higher organizational and operational costs. DiD you know.? Synonyms for working partners are: ordinary partner, active partner, and acting partner Synonyms for sleeping partners are: dormant partner, secret partner, silent partner. But these are more types of partners: Nominal partner: a partner in name only; a person who lends a name to a partnership. Senior partner: one of the highest partners in rank of importance. Junior partner: a partner whose level of involvement is less than that of the senior partners

13 PRACTICE 1- Read the text. Are the following sentences true (T) or false (F)? Justify the false ones 1- An Unlimited Liability Partner is responsible, in case of bankruptcy, for his private capital Some partners don t invest money in the partnership 3- It is not convenient to sign a contract because it doesn t solve any situation 4- Stockholders always sign a contract when they buy shares.. 2- VOCABULARY. Select the correct alternative. Business are varied. types groupings associations A partnership is an association of or more people. one two three Stockholders don t take part in the business passive decision active Partners sign a contract which the partnership conditions provides explains specifies 3- COMPLETE THESE TABLE kind of business kind associations of business associations owned by by sole proprietorship partnership corporation FIND SYNONYMS FOR THESE WORDS AND EXPRESSIONS a- to do business b- business associations c- owner d- people associated to do business e- responsible f- same g- to manage a business

14 UNIT 3 BANKS What banks can you mention? Are they local or international banks? Look at the pictures and give examples. Which ones do you suppose are the most important? Do your partners have accounts in any bank? What is the currency ((the type of money that a country uses) of Argentina? Peso and Britain? (pound) What about USA? (dollar) BANKS In the past, banks were safe places where to deposit your money to protect it from any risk. But is that the only service we get from them nowadays? When you think of a bank, the first thing that comes to mind might be the place that holds your checking or savings account. But there are several different types of banks, all serving different types of needs. Banks are places where people can keep their money. Most people use banks to save money in their savings accounts and to pay money from their checking accounts. Banks are large institutions which deal with several aspects, of the economy of countries, individuals and monetary systems. Banks provide a variety of services, and many of them don't have branch locations. Some banks work in multiple areas (for example, a bank might offer personal accounts, business accounts, and even help large enterprises raise money in the financial markets). Nowadays the Argentine banking sector is dominated by state-owned banks (the largest being the Banco de la Nación Argentina). Not all banks offer the same products and deal with the same type of customers. They are categorized according to the products they offer and the target they aim at. In some cases there are banks that offer services to both Banks can be classified into: 1- Commercial banks 2- Merchant banks. 3- Central banks 4- Online banks - 13

15 1- Commercial banks sometimes called Clearing banks. They are probably the banks you re most familiar with: your checking and savings accounts are held at a commercial bank, which focuses on consumers (or the general public) as customers. These banks give you credit cards, offer loans, and they re the ones with numerous branch locations in populated areas Commercial banks deal with individuals, and they give people the possibility of saving or investing money They provide banking services such as: 1- accepting deposits either in current accounts or savings accounts. When you open a current account the bank gives you a chequebook. You can draw a cheque to pay without the risk of using cash. When you have a current or savings account you become a bank client and you are entitled to several privileges E.g. You can ask the bank to give you a credit card 2- granting loans (loan: amount of money you borrow from a bank) 3- issuing credit cards and ATM cards (debit cards) 4 payment of fees, salaries and wages into the workers accounts. Then workers can get their money using their ATM cards. (ATM: Automatic Teller Machine) fee: amount of money paid for professional services.(a doctor s fee- a lawyer s fee) salary: money that you receive as payment from the organization you work for, usually paid to you monthly. wage: money you earn that is paid according to the number of hours, days or weeks that you work. 2- Merchant banks Merchant banks give similar services not to individual customers but to companies or corporate customers. e.g., Columbus Merchant Banking (Buenos Aires) They offer: 1- stockbroking and portfolio management services stockbroking: the act of buying and selling shares, bonds and funds for people. portfolio: the total holding of the securities, stocks and commercial papers owned by a private investor or a financial institution

16 2- mergers, takeovers and acquisitions are handled by this type of banks merger: the combination of two or more business enterprises into a single enterprise. takeover: when one company takes control of another by buying more than a half its shares. acquisition: something that you have obtained by buying it 3- They provide financial advice too. 3- Central banks They manage the monetary system for a government. For example, the Federal Reserve Bank is the US central bank responsible for managing economic activity and supervising banks. (BCRA) 4- Online banks They operate entirely online there are no physical branch locations available to visit with a teller or personal banker (Bank of Internet USA) Banks make a profit from the differential between the interest rates they pay on deposits and those they charge on loans

17 PRACTICE 1- Complete the text using the words from the box accounts can connected earns often their use where Banks are places where people can keep. money. Most people. banks to save money in their savings. and to pay money from their checking accounts. Today, when a person. money from their job, their paycheck is. electronically deposited (put) into their savings or checking account. Then, he or she. pay their bills by writing checks from their checking accounts or pay online. their bills are electronically.to their bank accounts. 2- Read the text and fill in the blanks to make up comprehension questions. 1- What...? 2- Where? 3- How many..? 4- Which.? 3- Match 1- GIVE a- otorgar 2- PROVIDE b- dar 3- GRANT c- proveer 4- Are these sentences True or False? Correct the false ones 1- Nowadays banks offer services similar to those offered by banks in the past 2- Banks usually offer the same products and deal with the same type of customers. 3- You can open a savings account and deposit money in an ATM.. 4- People can pay gas and electricity in commercial banks Employers usually deposit worker s salaries and wages in merchant banks. 6- Merchant banks offer services such as buying or selling stocks

18 5- Write services in the word spiders COMMERCIAL BANKS COMMERCIAL BANKS MERCHANT BANKS MERCHANT BANKS

19 UNIT 4 COMPANY STRUCTURES BANK ORGANISATION Banks are complex, organized structures where there are several divisions working in harmony helping one another. Each bank has got its own organization. There are some differences in the names of the areas or departments but, there is a basic common structure that is divisions which are composed of several Departments, such as: Administration division: deals with all the administrative matters or subjects. These include: a- planning, b- financial control c- accounting and audit (an official examination of a company financial records in order to check that they are correct) d- computer services e- legal services f- personnel (work force). Also called human resources. The office or department that interviews, appoints or keeps records of employees. Banking division: deals with loans, syndicated loans (is a loan offered by a group of lenders referred to as a syndicate that work together to provide funds for a single borrower. The borrower could be a corporation, a government. The loan can involve a fixed amount of funds, a credit line or a combination of the two.), project finance (is the financing of long-term infrastructure, industrial projects and public services, overdrafts (an overdraft allows the individual to continue withdrawing money even if the account has no funds in it or not enough to cover the withdrawal.) Dealing division: covers foreign exchange, currency, money market transactions, bonds, floating rates, notes and Eurodollars, Corporate Finance division: provides advice to a large number of companies about mergers, takeovers, acquisitions and divestment (is the opposite of an investment. Divestment involves a company selling its assets to improve its value and obtain higher efficiency), as well as Stock Market (the business of buying and selling stocks and shares) Investment Management division: provides services to the companies such as pension funds (a pension plan is a retirement plan that requires an employer to make contributions into a pool of funds set aside for a worker's future benefit), investment trust and offshore funds (funds that are deposited in a foreign country) Each of these divisions has got a person who is the maximum authority: the CEO (Chief Executive Officer). Under the CEO are the Department Managers who are responsible for the specific area. But each area has also got a Sector or Area Manager, for example, the Human Resources Manager reports to the Personnel Manager who reports to the CEO

20 PRACTICE 1- Read the text. Are the following sentences true (T) or false (F)? Justify the false ones 1- All banks have the same organizational structure.. 2- In general, each division is composed of at least three departments.. 3- Each area or sector is divided into several sub-areas. 4- There are lawyers working in the Legal Service Department Translating. CROSSWORD PUZZLE Down Across 1- Extraer, retirar dinero del banco A- Aconsejar 2- Fusión B- Sucursal 3- Puede ser de ahorro o corriente C- Dinero en préstamo otorgado por un banco 4- Dinero que se recibe por cualquier concepto D- Dinero ganado como honorarios 5- Sueldo E- Prestar dinero 6- Pedir prestado F- Dinero G- Dinero en circulación en un país. 1 2 A B 5 R C 3 4 D 6 E F G

21 3- READ THE TEXT AND COMPLETE THE CHART DIVISIONS ADMINISTRATION BANKING DEALING FINANCE INVESTMENT planning takeovers pension funds bonds correspondent banks