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1、Unit 6FinanceThe bottom lineLearn BusinessDo Business1Reading13Learn BusinessBIZ knowledge2Listening & Speaking2Look Look at at the the graph graph showing showing the the performance performance of of the the Enron Enron share share price price 1991-2001 1991-2001 and and match match the the change
2、s changes with with the the time time periods.periods.ReadingWarm up3 1 fluctuated mildly1 fluctuated mildly 2 a sharp increase 2 a sharp increase 3 reached a peak 3 reached a peak 4 rose steadily 4 rose steadily 5 dropped slightly 5 dropped slightly 6 a dramatic and sudden fall 6 a dramatic and sud
3、den fallA 2000-2001A 2000-2001B 1991- mid 1993B 1991- mid 1993C mid 1993-1994C mid 1993-1994D 1994-1998D 1994-1998E 1998-2000E 1998-2000F 2000F 2000ReadingWarm upDCAEFB4EnronEnron, a Houston-based energy firm founded by Kenneth Lay, transformed itself over a 16-year period from an obscure gas-pipeli
4、ne business to the worlds largest energy-trading company.Enron was successful for a long time but then ran into difficulties. Its attempted entry into Californias retail electricity market was problematic. The companys 10-year involvement in Dabhol, an Indian power-plant project, also went badly wro
5、ng.In October 2001 Enrons shares and credit rating plunged. The company was forced to agree to a merger with Dynegy, a rival firm. But Dynegy backed out in November because of concerns about Enrons debt. (It also feared legal action over irregularities in Enrons accounting.) Enron then filed for ban
6、kruptcy.ReadingBackground information5Royal AholdRoyal Ahold of the Netherlands, the worlds third-biggest food retailer, overstated its profits for 2001-02 by as much as $500m.Aholds accounting irregularities mainly involved American subsidiaries that it had bought over a 10-year period. But the com
7、panys Amsterdam-based auditors, Deloitte & Touche, failed to pick the problems up in 2001, even though worries about Aholds accounts were widely expressed in the markets.Aholds board, instead of asking questions, extended the term of the chief executive for up to seven years.The Dutch market regulat
8、or admitted that it had no powers of discipline over faulty auditing.ReadingBackground information6irregularity n. 违规行行为e.g. The club were found guilty of financial irregularities.That apart, the similarities between the two are striking,from the very bad corporate governance, aggressive earnings ma
9、nagement and accounting irregularities to auditors whose role must be called into question.ReadingText & Vocabulary7auditor n. 审计员e.g. An auditor is an accountant who officially examines the accounts of organizations.That apart, the similarities between the two are striking,from the very bad corpora
10、te governance, aggressive earnings management and accounting irregularities to auditors whose role must be called into question.ReadingText & Vocabulary8On 24 February 2003 Ahold announced the resignation of its chief executive and finance director after finding that it had overstated its profits by
11、 more than 463m ($500m).resignation n. 辞辞职e.g. There has been much gossip in commercial circles as to his resignation. ReadingText & Vocabulary9On 24 February 2003 Ahold announced the resignation of its chief executive and finance director after finding that it had overstated its profits by more tha
12、n 463m ($500m).overstate vt. 夸大夸大e.g. The authors no doubt overstated their case with a view to catching the publics attention.ReadingText & Vocabulary10Its market value plunged by 63 per cent that day, to 3.3bn. In late 2001, it exceeded 30bn.plunge vi. 突然地下降突然地下降e.g. The Peso plunged to a new low
13、on the foreign exchange markets yesterday.ReadingText & Vocabulary11Such a claim absolves Aholds bosses of responsibility for their acquisitions and dishonesty and ignores the persistent, firm-wide tendency to test the limits of acceptable accounting.absolve vt. 免除免除的的责任任e.g. An investigation yester
14、day absolved the police of all blame in the incident.ReadingText & Vocabulary12Most firms that buy in bulk get discounts from suppliersif they meet sales targets.in bulk 大批地大批地e.g. Remember, the first translation is generally done in bulk by translators who have no product experience.ReadingText & V
15、ocabulary13The issue is how those rebates are accounted for.rebate n. （作（作为减免或折扣的）部分退款减免或折扣的）部分退款e.g. Citicorp will guarantee its credit card customers a rebate on a number of products.ReadingText & Vocabulary14Read the text and find out the accounting irregularities that are mentioned.Overstating i
16、ts profitsBooking rebate payments before they were earned1ReadingComprehension15Read the text again and decide whether the following statements are true (T) or false (F). 1 The auditors role does not make one of the similarities between Royal Ahold and Enron. 2 The Ahold scandal indicates that corpo
17、rate governance and accounting problems are universal in both the USA and Europe. 3 The shareholders admired Cees van der Hoeven because he turned Ahold from a dull company into a growth machine. 4 Some observers think the Ahold scandal is more a US accounting failure. 5 Most firms that buy in bulk
18、get discounts from suppliers and book the rebate payments when they were earned.FTTTTReadingComprehension216Choose the best words to complete the following sentences.1 Shareholders lost money when the company filed for _.A failure B selling C breakdown D bankruptcy2 The company was in fact seriously
19、 _ even though it claimed to be making a profit.A on debt B in debt C into debt D above debt3 Some companies _ their earnings to drive up share prices.A overdo B overflow C overstate D overseeReadingVocabulary1DBC174 The Financial Services Authority was set up in the UK to deal with _ such as fraud
20、and insider trading.A issues B ideas C reasons D purposes5 When you buy in bulk, you can obtain _ or rebates.A discounts B sales C decreases D interest6 When they heard about our financial difficulties, our _ asked to be paid in advance.A customers B investors C suppliers D auditorsReadingVocabulary
21、AAC18Match the words in Column A and Column B to make proper collocations. Some of the words in Column A can have more than one match.Column A Column B1 _ 2 _ 3 _ 4 _ReadingVocabulary21uncover2absolve3meet4overstateA profitsB responsibilitiesC problemsD sales targetsCBB, DA, C19Complete the followin
22、g sentences with collocations from exercise 2. Change the form where necessary.1The company expects to _ its _ of selling more than 2 million vehicles globally this year.2Food importers and manufacturers said they trusted the suppliers certificates issued by the authorities. But this does not _ them
23、 of _ to check the quality of the ingredients they imported.3Tesco announced it had _ its _ for the fist half of the year 2014 by 263m, slightly higher than the 250m originally estimated when the company was hit by an accounting scandal.4The investigation _ with the companys accounting practices.Rea
24、dingVocabulary3meetsales targetabsolveresponsibilitiesoverstatedprofitsuncovered problems20Do Do you you think think CEOs CEOs who who falsify falsify accounts accounts are are criminals criminals and and should should go go to to jail, jail, or or is is it it an an acceptable acceptable risk risk t
25、o to falsify falsify accounts accounts if if it it helps helps to to safeguard safeguard the the companys companys future? future? Support Support your your opinion with reasons or examples.opinion with reasons or examples.ReadingSpeakingIt is against the law.It is an acceptable risk.21Look at the f
26、ollowing balance sheet and work out the figures in the blanks.BIZ knowledgeBalance sheetABC CompanyBalance Sheetas at 13 May 2015ASSETSCurrent AssetsCash$20,000Accounts receivable$15,000Inventories$150,000Total Current Assets$_185,00022BIZ knowledgeBalance sheetASSETSFixed AssetsPlant and equipment$
27、50,000Business premises （经营场地）$650,000Vehicles$70,000Total Fixed Assets$770,000Total Assets$_955,00023BIZ knowledgeBalance sheetLIABILITIESCurrent LiabilitiesAccounts payable$25,000Bank overdrafts$10,000Tax liabilities$30,000Total Current Liabilities$65,000Long-term LiabilitiesBusiness loan 1$450,00
28、0Business loan 2$50,000Total Long-term Liabilities$500,000Total Liabilities$_565,000OWNERS EQUITY$_390,00024Other earningsGains on fixed assets and operations2502342 _ on investments1751621 _ (sales revenue)700704Study Study the the incomplete incomplete P&L P&L below. below. Complete Complete the t
29、he document document with the following headings.with the following headings.Consolidated Profit and LossConsolidated Profit and Lossfor the year endefor the year ended Dec 31 in d Dec 31 in $ $mmListening & SpeakingListening 11Research and development costs Costs of materials Gross profit Interest
30、receivable Turnover Dividend Interest receivableTurnoverForecastActual25Trading / Operating profit525F _Profit for shareholders (6 _ )95G _Retained profit430H _Other costs and expensesIndirect costs or overheads25225 _50D _Loss on fixed assets2525Loss on foreign operations10088 Marketing and distrib
31、ution costs100E _Costs of making goods3 _ and all manufacturing expenses100A _Salaries and personnel costs200B _4 _825C _Listening & SpeakingListening 1Costs of materialsGross profitResearch and development costsDividend26Trading / Operating profit525F _Profit for shareholders (6 _ )95G _Retained pr
32、ofit430H _Other costs and expensesIndirect costs or overheads25225 _50D _Loss on fixed assets2525Loss on foreign operations10088 Marketing and distribution costs100E _Costs of making goods3 _ and all manufacturing expenses100A _Salaries and personnel costs200B _4 _825C _Listen to a presentation of t
33、he actual results and complete the missing figures for blanks A-H.Listening & SpeakingListening 12701908407512350795412Costs of materialsGross profitResearch and development costsDividend27Listen Listen again again and and complete complete the the answers answers to to the the following following q
34、uestions.questions.1 Why was gross profit higher than expected?1 Why was gross profit higher than expected? Outsourcing Outsourcing to to Indonesia Indonesia was was more more _ _ than than expected.expected.2 What is expected to happen to the marketing budget in future?2 What is expected to happen
35、to the marketing budget in future? It will _ over the next quarters. It will _ over the next quarters.3 How much will shareholders receive per share?3 How much will shareholders receive per share? _ cents. _ cents.4 What prediction does the speaker make about retained profit?4 What prediction does t
36、he speaker make about retained profit? It will _ over the next quarters. It will _ over the next quarters.Listening & SpeakingListening 13cost-effectivefall drastically50increase considerably28If If you you were were a a potential potential shareholder, shareholder, would would you you feel feel con
37、fident of investing in this company? Why? / Why not?confident of investing in this company? Why? / Why not?Listening & SpeakingListening 1429Companies Companies sometimes sometimes make make the the figures figures in in financial financial documents documents more more attractive attractive than th
38、an they they really really are. are. They They can can do this by:do this by:A inventing revenue from companies that dont existA inventing revenue from companies that dont existB not including debts of subsidiaries and acquisitionsB not including debts of subsidiaries and acquisitionsC overstating c
39、urrent profits by including possible future earningsC overstating current profits by including possible future earningsListen Listen to to two two investors investors talking talking about about what what happened happened to to them them when when they they invested invested in in two two media med
40、ia companies. companies. Which Which of of the the above above methods methods were were used used to to drive drive up up share share prices prices in in each case?each case?NavTech: _ Com.TV: _NavTech: _ Com.TV: _Listening & SpeakingListening 21AB30Listen Listen again again and and complete comple
41、te the the graphs graphs about about the the share share prices prices of the two companies.of the two companies.Listening & SpeakingListening 1231Culture at workCareer skillsDilemma & Decision213Do BusinessVisual aids such as tables, graphs, bar charts, pie charts and flow charts are an important p
42、art in presentations that include a lot of statistics. The following phrases are useful for drawing listeners attention to particular visuals. As you can see, Youll notice that This part of the graph clearly shows led to the you see here is obvious on this part of the graph here.This slide shows Rea
43、dingCareer skillsReferring to visuals33Look at the graph showing the performance of the WorldCom share price 1992-2002 and use the expressions on its right to describe the trends. Then listen and compare your description with the speakers.reached a record highnosedived to an all-time lowcontinued to
44、 skyrocketstarted a spectacular ascensionthere was a downturnReadingCareer skills1Referring to visuals(1999)(2002)(1995 to 1998)(1992 to 1995)34Work in pairs. Student A turns to page 114. Student B looks at the bar chart below which shows the American sales of the Italian food giant Parmalat, which
45、went bankrupt in 2003 with debts of 14bn. Describe the American sales to your partner, using the expressions of referring to visuals and describing trends. Then listen to your partner and complete the European sales 1996-2003.ReadingCareer skills2Referring to visuals35ReadingCareer skillsReferring t
46、o visualsStudent ALook at the bar chart showing the European sales of the Italian food giant Parmalat, which went bankrupt in 2003 with debts of 14bn. Listen to your partner and complete the American sales for 1996-2003. Then describe the European sales to your partner, using the expressions of refe
47、rring to visuals and describing trends.36Watch Section 3 of Part 2. Match the following visuals with the titles A-C. Then number them in the order that Jamie talks about them.ReadingBusiness in practiceDealwithproblems337ReadingBusiness in practiceDealwithproblemsTitles:A customer satisfactionB quot
48、esC market shareCAB23138Match the expressions 1-5 with the things A-F that Jamie is describing. You will need to use one expression twice. 1 no significant difference there 2 again, they were very similar 3 slightly in front 4 came onto the market in the shortest time 5 the one to turn to when the s
49、chedule is tightA Crowne and Animexs pricesB Crowne and Animexs customer satisfaction surveysC Four products produced with parts or processes supplied by CrowneD CrowneE AnimexF Crowne and Animexs market shareCFBReadingBusiness in practiceDealwithproblemsDD439ReadingCulture at workHow much explanati
50、on?According to your experience, did you involve a lot of details or use any extra materials when you have to explain something to others? How did the listeners react?Warm-up40In some cultures, people like to use a lot of details to present information. They think it is importantIn other cultures, p
51、eople think that the audience only need a little explanation to help them to understand.ReadingCulture at workHow much explanation?41A littleA lotYou like to communicate fast. You dont need a lot of words to say what you mean.You like to be clear. You use a lot of words to say what you mean.You use
52、visuals to illustrate what you say.When you use visuals, you prefer to explain in detail what the information means.You dont spend too much time introducing background information.You give background information to help the audience to understand.ReadingCulture at workHow much explanation?42What is
53、common in your country when making presentations?ReadingCulture at workHow much explanation?43MultiBrands is a globally successful consumer products company, which has built up a reputation based on “Honesty, Quality and Innovation”.Since it started operating ten years ago, it has launched at least
54、two new, high-quality products in different markets every year. However, managers are currently reviewing company policy because of a recent dramatic fall in profits and share price performance. Shareholders believe that this is due to over-diversification, rising costs and failing consumer confiden
55、ce as a result of complaints that product quality is declining.BriefReadingDilemma & DecisionDilemma: Counting the costs44Shareholders recommendations are:freeze current policy of developing new products and concentrate on consolidating current successful brandsimprove qualityreduce pricesfreeze rec
56、ruitment but avoid layoffsreduce current budget by 15 per centBriefReadingDilemma & DecisionDilemma: Counting the costs45In groups, study the information on page 112 and discuss where budget cuts and reallocations could be made in order to achieve a 15 per cent reduction in total operating costs. Co
57、nsider all the above shareholders recommendations before making a final decision.Task 1ReadingDilemma & DecisionDilemma: Counting the costs46ReadingDilemma & DecisionDilemma: Counting the costs2 Production operating costs3 Sales and marketing costs47Present your budget proposal with the help of the
58、visual aids.Task 2ReadingDilemma & DecisionDilemma: Counting the costs48Summarise your proposal in a short report. Include visual aids to help illustrate and support your ideas.Write it upDilemma & DecisionDilemma: Counting the costs49Listen to William Grange from International Consultants saying wh
59、ere he would make the necessary budget adjustments and cuts.ReadingDilemma & DecisionDecision50Short reports are used to summarise information that has to be communicated to people inside or outside an organisation. They are designed to provide an overview which can be read and assimilated quickly.A
60、lthough the length of a short report will vary depending on the amount of information and commentary that it contains, most short reports will be between one and six pages long.Short reports may also include graphic material and are often used as the basis for an oral presentation.ReadingWriting gui
61、deShortreports51Title page indicates the subject that is being dealt with, in large font, with the name and title of the author of the report clearly indicated at the bottom of the page, together with the date of its publication.Summary gives a concise presentation of the report: the reasons for wri
62、ting it, the most important information it contains and a general idea of its main findings. For a short report this can be simply one or two sentences.ReadingWriting guideLayoutShortreports52Introduction presents the overview, showing why the report was written and how it has been constructed.Devel
63、opment includes the main body of information which may be divided into several subsections.Conclusion presents the results of the report. This might take the form of a recommendation for future action or draw the readers attention to problems that need to be addressed.ReadingWriting guideLayoutShort
64、reports53use a formal writing style; no contracted verb forms like itll or dontmake your language as clear as possibleuse simple language and short sentences to make it easier for the reader to assimilate your messageavoid using the personal pronoun I too much; use neutral phrasing insteadLanguage a
65、nd styleReadingWriting guideShortreports54Connect sentences by showing contrast:However, this does not necessarily mean that .On the other hand, it is true that .While these results may appear .Although it is not completely clear from our research . showing cause and effect:This has been mainly due
66、to .Consequently, additional data was obtained which showed that .As a result of this, it has not been possible to .Useful phrasesReadingWriting guideShortreports55 moving on to the next point that you wish to make:Moreover, in this particular case .In addition to this, the survey included .Furthermore, we would advise that this would provide an opportunity to .Useful phrasesReadingWriting guideShortreports56
