Английский язык (стр. 11 )

There are four critical areas of a company’s business which can be analyzed by applying ratios. These are: liquidity, capital structure, activity and efficiency, and profitability.

Measurements of liquidity should answer the question: Can a company pay its short-term debts? There are two ratios commonly used to answer this question. Firstly, the current ratio, which measures the current assets against the current liabilities. In most cases, a healthy company would show a ratio above 1, in other words more current assets than current liabilities. Another method of measuring liquidity is the so-called quick ratio – this is particularly appropriate in manufacturing industries where stock levels can disguise the company’s true liquidity. The ratio is calculated in the same way as above but the stocks are deducted from the current assets.

The balance sheet will also reveal the gearing of the company – this is an indicator of the company’s capital structure and its ability to meet its long-term debts. The ration expresses the relationship between shareholders’ funds and loan capital. Income gearing is also important and shows the ratio between profit and interest paid on borrowings. Relatively high borrowings would indicate vulnerable rate rise. Highly geared companies generally represent a greater risk for investors.

The balance sheet and the profit and loss account can be used to asses how efficiently a company managers its assets. Basically, sales are compared with investment in various assets. For example, in the retail sector, an important ratio which indicates efficiently is sales divided by stock – the resulting figure should be much higher than in manufacturing sector where stock tends to show a much slower turnover. Another example of efficiency measurement is to calculate the average collection period on debts. This is found by dividing debtors by the sales per day. This can vary tremendously from industry to industry. In the retail sector it may well be as low as one or two days, whereas in the heavy manufacturing and service sector it can range from thirty to ninety days.

Finally, profitability ratios show the manager’s use of the company’s resources. The profit margin figure (profit before tax divided by sales and expressed as a percentage) indicates the operational day-to-day profitability of the business. Return on capital employed can be calculated in a number of ways. One common method is to take profit before taxes and divide by the total assets – this is a good indicator of the use of all assets of the company. From a shareholder’s point of view, the return on owner’s equity will be an important ratio; this is calculated by dividing the profit before taxes by the owner’s equity and expressing it as a percentage. If the company doesn’t earn a reasonable return, the share price will fall and thus make it difficult to attract additional capital.

II.  Match the equivalents:

1. Attract additional capital	a) Долгосрочные обязательства
2. Capital structure	b) Доход на используемый капитал
3. Current assets	c) Краткосрочные обязательства
4. Current liabilities	d) Ликвидность
5. Current ratio	f) Общая стоимость имущества
6. Gearing	g) Отношение капитала компании к заемным средствам
7. Liquidity	h) Отношение ликвидности фирмы к долговым обязательствам
8. Loan capital	i) Отношение оборотного капитала к краткосрочным обязательствам
9. Long-term debts	j) Привлекать дополнительный капитал
10. Owner’s capital	k) Собственный капитал
11. Profit and loss account	l) Ссудный капитал
12. Profit margin	m) Структура капитала
13. Quick ratio	n) Счет прибыли и убытков
14. Return on capital employed	o) Текущие активы
15. Short-term debts	p) Текущие обязательства
16. Total assets	q) Чистая прибыль

III.  Answer these questions:

How many critical areas of a company’s business are there which can be analyzed by applying ratios? Which are they? How many ratios are used to estimate company’s ability to pay short-term debts? Which is the first one? Which is the second one? What can the balance sheet reveal? What does income gearing show? What can the balance sheet, the profit and loss account be used for? How can efficiency in the retail sector be calculated? What do profitability ratios show? What does the profit margin figure indicate? How can return on capital employed be calculated?

IV.  Match the phrases on the left with a word or phrases on the right which means the same:

1. contribution ratio	a) turnover
2. fixed costs	b) gross profit margin
3. variable costs	c) overheads
4. income from sales	d) direct costs

Y. Match the terms with appropriate definitions:

1.contribution 2. capital costs 3. gearing 4. retained profit 5. work-in-progress 6. unit contribution 7. wealth 8. break-even point

a)  The number or total value of sales necessary to equal all costs.

b)  Net value of a company (total assets less total liabilities)

c)  Net profit available for reinvestment in the company.

d)  Sales income less variable costs.

e)  Selling price less variable costs divided by volume of production.

f)  Cost of buying fixed assets such as buildings, equipment, vehicles.

g)  Relationship between the cost of borrowing money and the total equity capital.

h)  Work done which has cost the company but has not yet been sold.

VI. Change the underlined words or phrases in the sentences below to other words or phrases that have a similar meaning. Choose them from the box:

1.  abbreviated accounts 2. equity 3. liquid assets 4. capital investment 5. extraordinary items 6. operating income 7. consolidated gross 8. revenue 9. debts;

1.  Unpredictable and exceptional costs (…………..) should be a separate item in the financial report.

2.  The trading income (……………….) needs to increase each year so that the company can make decisions to buy new plant and equipment (………………..)

3.  The company accounts have been checked and approved by an independent financial expert (………………….)

4.  Shareholders expect to see the short description of the company’s financial position (………………….)

5.  Income (………………..) during the present tax year is less than last year.

6.  Pre-tax (………………..) earnings are down.

7.  The total value (………………..) of a company once all liabilities (…………..) have been paid.

8.  A successful company needs property and investments that can be easily converted into cash(……………………..)

VII.  Match each word with the correct definition:

profit and loss Accountbalance sheet 3. cash budget 4. share certificate 5. tender 6. business plan 7. insurance certificate 8. letter of credit 9. contract

a)  A plan of cash income and cash spending for a specific period of time.

b)  A document which represent a part of the total stock value of a company and which shows who owns it.

c)  A formal description of income and costs for a time period that has finished.

d)  A formal agreement to provide goods or services.

e)  A formal description of a company’s financial position at a specified moment.

f)  A document which states that a named person has paid for protection against accidental loss or damage of goods or property.

g)  A formal letter with an offer to supply goods or services, containing a description of the project, including costs, materials, personnel, time plans, etc.

h)  An official notification from a bank that it will lend money to a customer.

Text B

Business letter

Vocabulary

We have received your letter of the 15th May	Мы получили Ваше письмо от 15 мая
Thank you for your letter dated the 15th May	Благодарим вас за Ваше письмо, датированное 15 мая
In reply (in answer, in response) to your letter of…….	В ответ на Ваше письмо от….
We are obliged for your letter of…….	Мы благодарим (признательны) за Ваше письмо от…
We acknowledge (the) receipt of your letter of. We acknowledge your letter of…..	Подтверждаем получение Вашего письма от…Мы получили Ваше письмо от…
We have received your letter of (the) 20th May	Мы получили Ваше письмо от 20 мая
We have cabled you on (the) 22nd June,20	Мы Вам телеграфировали 22 июня
The goods ordered by you on (the) 26th November,20…,are ready for shipment	Товары, заказанные Вами 26 ноября 20..г., готовы к отгрузке
We refer to your letter of (the) 15th May,20..	Мы ссылаемся на Ваше письмо от 15 мая 20..года
Of today’s date	От сегодняшнего числа
Of yesterday’s date	От вчерашнего числа
Formal tone	Официальный тон
Salutation	Приветствие
Closing	Заключение
Adjustment letter	Письмо с целью урегулирования претензий
Claim letter	Рекламация
Order letter	Заказ
Inquiry letter	Запрос
Sales letter	Письмо с предложением о продаже
Acknowledgement letter	Уведомление
Apology letter	Письмо-извинение
Heading	Заголовок, шапка
Return address	Обратный адрес
Inside address	Внутренний адрес
Attention line	Строка с наименованием адресата
Subject line	Предмет письма
Body	Текст письма
Enclose	Прилагать

I.  Read the following information on business letter:

Definition of a Business Letter

The business letter is the basic means of communication between two companies. It is estimated that close to 100 million Business Letters are written each workday. It is a document typically sent externally to those outside a company but is also sent internally to those within a company.

Most business letters have a formal tone. You should write a business letter whenever you need a permanent record that you sent the information enclosed. Because you generally send business letters to other professionals, always include a formal salutation and closing.

Even though no one formula exists for a perfect business letter, some basic guideline will help you, regardless of the form, purpose, and audience of the document.

Many executives still prefer a written document over other forms of communication, because the document can serve as a contract, the facts will be on record in writing, and executives do not have to reply on memory.

This is why it is important to write a good Business Letter.

Every business letter is in some degree a sales letter, because you are always requesting a response or course of action. Therefore, the following principles of persuasion will help you compose and efficient and effective Business Letter:

-  plan according to the reader’s reaction

-  write with the ‘you’ attitude – the state of mind where you always emphasize the benefits to the reader and subordinate your interests. This can be accomplished by using empathy and words ‘you’, and ‘your’ often

-  adjust the language to the reader and use terms and concepts that the reader is familiar with

-  write positively and with confidence.

Empathy means to care about someone’s feelings or ideas. A well-written business letter will convey the feeling that the writer does care about the reader and is genuinely interested in working together to solve a problem or discuss a concept.

To write a good letter, put yourself in the reader’s shoes and try to anticipate the reader’s reaction to your doing this, you are more likely to choose more appropriate words and use the correct tone.

You will write business letters to inform readers of specific information. However you may also write a business letter to persuade others to take action or propose your ideas. Business letters even function as advertisements at times. Consider the letters long-distance phone companies send to those not signed up for their services or the cover letters to your resume. Both of these serve to promote or advertise.

Business letters can be challenging to write, because you have to consider how to keep your readers’ attention. This is particularly the case if your readers receive large amounts of mail and have little time to read.

Writing Business Letters is like any other document: First you must analyze your audience and determine your purpose. Then you gather information, create an outline, write a draft, and revise it. The key to writing business letters is to get to the point as quickly as possible and to present your information clearly.

It is important to understand the service perspective when writing a business letter. The organization that uses a service attitude in letters shows its concern extends beyond purely profit objectives, and readers appreciate a genuine desire on the part of a company that cares about their needs.

Tone is the use of accent and inflection to express a mood or emotion in speaking or working. Many times it is not what you say in a business letter, but how you say it. It is a good idea to always consider your tone so that you do not risk upsetting the reader, thereby lessening the chances your requests and comments will be respected.

You can avoid making mistakes with tone by using the following techniques:

-  avoid the ‘I’ attitude by having more emphasis on the reader and not yourself

-  avoid extreme cases of humility, flattery, and modesty

-  avoid preaching your ideas

II.  Match the equivalents:

1. Of today’s date	a) Рекламация
2. Claim letter	b) Письмо с целью урегулирования претензий
3. Adjustment letter	c) Заключение
4. Of yesterday’s date	d) Приветствие
5. Closing	e) Официальный тон
6. Formal tone	f) От вчерашнего числа
7. Salutation	g) От сегодняшнего числа
8. Order letter	h) Прилагать
9. Enclose	i) Текст письма
10. Inquiry letter	j) Предмет письма
12. Body	k) Строка с наименованием адресата
13. Subject line	l) Внутренний адрес
14. Sales letter	m) Обратный адрес
15. Inside address	n) Заголовок, шапка
16. Attention line	o) Письмо-извинение
17. Acknowledgment letter	p) Заказ
18. Return address	q) Запрос
19. Heading	r)Уведомление
20. Apology letter	s) Письмо с предложением о продаже

III.  Answer these questions: