BUSINESS ENGLIS H

Part I. Business Texts 9Unit 1 - English Banks 9Unit 2- The Banking System (1) 11Unit 3 – The Banking System (2) 13Unit 4 – Financial Markets 15Unit 5 – The Euro 18Unit 6 – Money Market 21Unit 7 – Euromarkets 23Unit 8 – Banking Risk Management 25Unit 9 – Securisation 28Unit 10 – Money Laundering 30Unit 11- What is Business ? 32Unit 12 – Organization of Business 34Unit 13 – What is a franchise? 36Unit 14 – Microeconomics and Macroeconomics 38Unit 15 – Two Basic Concepts in Finance: Assets and Liabilities

41

Unit 16 – What is marketing ? 43Unit 17 – The Stock Exchange Market 46Unit 18 – Functions of Commerce 49Unit 19 – An Export Transaction 51Unit 20 – Methods of Payment in Foreign Trade 53

Part II . English Grammar 56The Noun 56Exercises 61The Article 63Exercises 71The Adjective 73Exercises 77The Numeral 79Exercises 83The Verb 83Exercises 98The Adverb 115Exercises 119

Part III. Commercial Correspondence 121Addressing envelopes 121Parts of a letter 121References 122Enquires and replies 124Quotations, estimates and tenders 128Orders and their fulfillment. Printed Order Forms. 129Letter order 129Invoices and adjustments 138Debit and credit notes 139Statement of accounts 140Methods of payment 141Complaints 142Contracts 144Special business letters 151Memorandums 154Report 157Leaflet 159Notice 160Minute 161Letter of application 162Curriculum Vitae 165Banking and Home Business 167Transport 171

PART I I. BUSINESS TEXTS

UNIT 1 ENGLISH - BANKS

There are a lot of banks in our tows and villages and even the internet offers you the opportunity to do “on line banking” as you can pay for goods and services with a little smart card.

Speaking about the UK, one has to go back in time, three hundred years ago, to find the beginning of the banking system. The banks were subject to the provisions of the various Acts of the Parliament. The Bank of England was established in 1694 and it was nationalized in 1946 due to the Bank of England Act and got legal powers to enforce its directives. After the second world war, many companies set themselves all over the country, called themselves banks, had freedom to develop themselves but some restrictions were also imposed. The financial markets developed very quickly. London became an important banking town and started to attract international banks.

In 1987, the Banking Act was passed; it peplaced another Banking Act, that of 1979, which, at its turn, answered to the 1973-1974 banking crisis. This crisis was caused by the fringe banks which got into difficult situations because of their short term borrowing and long term lending. These banks were not subject to rigorous supervision, they operated speculatively with the funds owned by their customers.

The Banking Act abolished a two-tier system of the recognized banks; it licensed deposit-takers. Its purpose is the introduction of a prudential supervision. But it does not regulate the day to day banking operations. All the institutions that are banks are under the control of the Banking Act; there are other institutions that have the right to take deposits and they are subjects to the Acts of Parliament which are relevant to their operations.

Banks and insurance companies are allowed to own stock exchange subsidiaries. A new electronic system has been introduced bringing the old fashioned banking system up to date. In fact the banks act as intermediaries between borrowers and lenders. This is done in different ways.

3

Text Comprehension

1. Answer the following questions:When was the Bank of England founded?What acts control the banks?What happened in 1946?What happened after the Second World War?When was an important bank crisis and what happened? What did the Banking Act abolish and license? Does it regulate the every day operations?Who control the banksWhat o the acts of Parliament do?What are the banks?

2.Banking vocabulary:

• Asset (orice posesiune, tangibila sau intangibila, care are valoare pentru posesorul sau)

• Bank (banca; institutie comerciala autorizata sa atraga depozite)

• Borrower( persoana care face un imprumut )• Deposit (suma de bani, platita in avans de catre un

comparator, ca parte a pretului de vanzare a unui produs, in scopul rezervarii acelui bun; suma de bani depozitata intr-o banca)

• Financial adviser (orice persoana care ofera consiliere pe plan financiar altei personae, in special in privinta investitiilor )

• Interest(dobanda perceputa la imprumutarea unei sume de bani)

• Intermediation(activitatea unei banci… care actioneaza ca intermediary intre doua parti ale unei tranzactii)

• Liabilities(datorie; obligatie)• Loan(imprumut, credit)• Payer(persoana sau organizatie care face o plata)

3. Topics for speaking and writing

4

Write a short composition about the bank you are working withBuild up a conversation about a bank; you are a bank clerk and try

to convince somebody to become the bank customer

UNIT 2

THE BANKING SYSTEM (1)

Banking and financial market operations involve special institutions and financial markets; they act within a legislative framework and offer specialized services to individuals, companies, governments. Let’s present some of them.

The Bank of England is the central bank of the kingdom. It acts as a banker to all the other banks and government; it issues the bank notes; it manages the national debt; it lends money to all the banking institutions; it regulates the monetary and credit conditions and supervises the banking system.

The commercial banks are ruled by the Banking Act of 1987 and

are allowed to take deposits and lend money on the retail and wholesale markets. They offer banking services.

Retail banks offer their services to the individuals and medium sized businesses. They operate through branches which offer cash deposits, withdrawal facilities as well as possibilities of transferring funds. They provide facilities to different types of account such as current accounts, deposit accounts; they offer loans and different financial services.

International banking is developing. Foreign banks have branches everywhere, especially in the large cities and important towns of the countries. London is famous for this. There are banks which operate mainly overseas and are specialized in particular areas of the world: Far East, Asia, South Africa, and South America.

Text Comprehension a) Answer the questions:

1. What do banking and financial markets involve?2. What does the Bank of England do?3. Do you know anything about the National Bank of Romania?

5

4. What do you know about the commercial banks?5. What do the retail banks do?6. Can you describe some Romanian banks? 7. What can you tell about international banking?8. Are there international banks in Romania?9. Are there Romanian banks abroad?

Banking vocabulary:

• Account (cont gestionat de o banca)• Balance of payments (registrele care reflecta tranzactiile unei companii cu lumea din afara)• Bank deposit (deposit bancar)• Bank charge (comision bancar)• Bank draft (trata)• Current account (cont curent)• Drawer (persoana care semneaza o cambie)• Drawee (persoana careia i s-a tras o cambie)• Insurance (asigurare)• Liquidity (masura a lichiditatii activelor unei organizatii)• Market (piata)• Negotiable (negociabil)• Overdraft (plafon de creditare)• Penalty (penalizare)• Profitability (capacitatea de a face profit))• Savings (economii)• Share (actiune, parte sociala)• Withdrawal (retragere )

3.Topics for speaking and writing : - Write a short composition (200 words), using the above given vocabulary

6

UNIT 3BANKING SYSTEM (2)

Merchant Banks have their roots in the banking activity the merchants were involved in, as an extension of their own trading. They used to help foreign governments to get loans, to accept bills of exchange. Nowadays, they offer services including corporate finance, foreign exchange dealings, security trading.

National Savings is a saving scheme supported by the government which aids government borrowing using a set of saving instruments. Some of these are the fixed-interest and index-linked Savings Certificates. The National Savings, at the very beginning, offered deposit services to customers, through Post Office branches. It does not make loans.

Discount Houses are specific to Britain and are an important element of the British monetary system. They are between the Bank of England and the rest of the banking sector; they promote the orderly flow of funds between the authorities and the banks. They receive the liquid money of the banking sector, lend to the government for the weekly offer of Treasury Bills. They trade on the wholesale money market.

Investment institutions collect the savings from the persons and corporation sectors; they invest them in securities and in different assets. Some of them are: insurance companies, insurance brokers, pension funds, unit trusts, investment trusts.

Special financial institutions operate in the public sector and in the private one. They offer loan finance and equity capital. The latter include finance houses, leasing houses, factoring companies, venture capital companies.

Text Comprehension

1. Answer the questions:1. Who founded the merchant banks and why?2.Do we have such banks in Romania?3.What can you tell about the National Savings ? 4.Does Romania have such a system and how does it act? 5. How do discount houses act?

6.What are the investment institutions?

7

7.Where do special finance institutions operate ?

Banking vocabulary

• Acquisition accounting (proceduri contabile efectuate cand o companie este preluata de o alta )

• Bill of exchange (un tip de cambie)• Bill of lading (conosament)• Charge (ipoteca legala asupra unui teren/ proprietate)• Collateral (categorie de titluri de valoare)• Commercial loan selling (tranzactie care implica doua banci si un

client industrial)• Due date ( scadenta de plata, de ex. data maturitatii unei cambii)• Financial intermediary ( o banca care detine fonduri imprumutate de

la creditori , spre a imprumuta debitori )• Finance house (societate de credit)• Fund (fond comun de resurse monetare si de alt tip ) • Funds transfer (transfer al fondului )• Home banking (sistem bancar national)• Interest (dobanda perceputa la imprumutarea unei sume de bani)• Liability (datorie, obligatie)• Merger (fuziunea a doua sau mai multe firme)• Principal (mandat; persoana in numele careia actioneaza un

mandatar)• Solvency (suma cu care activele unei banci depasesc obligatiile)• Unit banking (sistem bancar, in care o banca infiinteaza o companie

unica, fara filiale )• Wholesale (banking imprumuturi interbancare sau imprumuturi

acordate catre sau de catre alte mari institutii financiare)

3. Topics for speaking and writing Build up sentences using the above given vocabularyWrite a short composition (about 200 words) about Romanian

banks

UNIT 4

8

FINANCIAL MARKETS

One of the most important financial markets is represented by the stock exchange

And the most famous one is the one existing in London. The exchange has a dominant position in international equity trading, particularly in the cross border securities. The security houses offer selling and buying prices for domestic securities, oversea securities; the prices are displayed on the information screens all over the world. London has regional offices. A great number of people own shares directly and indirectly (through collective investment schemes - pension funds, insurance investments).

The market is coordinated electronically and operates in three markets:

1) domestic equities (they include listed securities of large corporations and unlisted securities for smaller and growing companies)

2) gilt-edged stock (gilts are issued by the Bank of England under the government control; they are traded in a secondary market through exchange)

3) international equitiesThe money markets are directed between buyers and

sellers which are banks, financial institutions, private persons. There is no physical market place; the negotiations are done by phone, automated dealing system, the financial instruments being CDs, bills of exchange, treasury bills, bonds.

Parallel markets are to be found and are known under names such as:

1) inter bank market (it lets the banks to deposit surplus cash with each other)

2) CDs market (it involves large companies, institutions; it deposits large surplus sums for a given rate of interest)

3) Commercial bills market (it deals with unsecured promissory notes, short term ones; these are issued by the companies listed on the Stock market)

4) Euro currency market (it deals with currencies lent outside the domestic market place; London and Tokyo are famous for these dealings)

9

The Foreign Exchange Market conducts transactions through the phone and data links between banks, financial institutions, firms, the brokers act as intermediaries. The quotes are given in many currencies for the buying and selling rates on a daily basis for all types of transactions.

Text comprehension Answer following questions:

1. Where is the most important financial market?2. What do the security houses offer?3. How are the prices displayed?4. Do people own shares and how?5. How the money market managed and which is are its elements?6. How is the money directed?7. Can you describe the parallel markets?8. What do you know about the Free Market Exchange?

Banking vocabulary:• Affiliate (afiliere)• Bank branch (filiala bancara)• Bond (obligatiune)• Bearer ( purtator al unui cec sau cambii) • Bearer bond (titlu de valoare)• Bullion (lingouri de aur, argint, metale pretioase) • Clearing cycle process (proces prin care, o plata, efectuata pe baza

unui cec, este transferata dintr-un cont in altul)• Clearing house (sistem centralizat si computerizat de stabilire a

sumelor datorate reciproc)• CD = Clearing deposits • Corporate bond (obligatiune sau titlu de valoare care reprezinta un

imprumut obisnuit)• Creditworthiness (evaluarea capacitatii unei persoane/firme de a

achita bunurile/serviciile primite )• Equity (activele nete ale unei companii, dupa ce u fost platiti toti

creditorii)• Financial instruments (ocumente financiare)

10

• Gilt edged security (itlu de valoare cu dobanda fixa, emis de guvernul britanic sub forma obligatiunilor guvernamentale sau a bonurilor de tezaur)

• To issue ( a emite)• Margin (marja)• Share ( actiune ; parte sociala)• Stock(stoc de active; titlu de valoare cu dobanda fixa)• Subsidiary (iliala, sucursala,)

Writing Build up sentences using the above mentioned vocabulary

11

UNIT 5

THE EURO

It is a strategic and technical challenge for the European nations, members of the European Union. The Euro assures currency stability and an advance towards European integration. The business has eliminated the exchange risk; the functioning of markets has been improved (i.e. an easier flow of goods and services, lower transactions costs, a.s.o.). The trade between EU countries is done in Euro, an euro area has been created. It has brought about a change in the life of the Europeans (businessmen, tourists, bankers. The major banks have made the technology changes which have been required for euro compliance as they need to minimize the euro impact to their customers.

Banks have been confronted with the losing of revenue streams due to the introduction of the single currency, the impact of the new cross border payment systems.

The companies have faced important strategic, marketing and organizational challenges. It has been set up a legal framework for the use of the euro which helps the market operators to have the legal security for contracts and obligations.

1 January 1999 and 1 January 2002 was the period when the euro coexisted with the national currency. For this, it was established the legal framework that ensured the legally-enforceable equivalence between the single currency (euro) and the national currency units.

The introduction of the single currency has three phases:1. the launch of the EMU (early 1998)2. the start of the EMU (1 January 1999)3. the single currency (begins with 1 January 2002) Beginning with this date, euro is used in the EU countries,

new coins and banknotes have been issued. The banks have completed the changeover and the national currencies have been withdrawn.

Text comprehensionAnswer the questions:1. What does the euro assure?2. Which is the currency used by the businessmen?3. What have the banks done?

12

4. What has the introduction of the euro bring about?5. What did the companies face?6. Was it a coexistence of the euro with the national

currencies?7. Can you mark the main EMU phases ?

Vocabulary

Ballon ( suma mare de bani platita pt. rambursarea unui imprumut, care nu este o rata obisnuita)

Base rate (rata a dobanzii, folosita ca referinta de catre banci, pt dobanzile percepute clientilor)

Bridging loan (credit punte) Business credit (imprumut facut corporatiilor) Capital (valoarea totala a activelor unei persoane, fara

obligatiile aferente) Consumer credit (credit pentru bunuri de folosinta

indelungata) Credit line (limita unui credit) EMU (European Monetary Union= Uniunea monetara

europeana) EMS (European Monetary System= Sistemul monetary

european) Exposure (riscul pe care il asuma clientul) Franchise (licenta acordata unui producator, distribuitor…

care le permite acestora sa produca/vanda un anumit produs/serviciu, intr-o zona determinate, pe o perioada stabilita)

Installment (o plata dintr-o serie, mai ales la achizitionarea bunurilor in regim de vanzare in rate)

Money market unit trust (fond de investitii finaciare care investeste in instrumentele pietei monetare, pentru a oferi investitorilor venit fara risc)

Open market operations (cumpararea/vanzarea de catre guvern a obligatiunilor guvernamentale, in schimbul banilor )

Personal loan (credit pentru nevoi personale) Ratio analysis (utilizarea indicatorilor pentru evaluarea

activitatii operationale si stabilitatii financiare a unei companii)

Revolving credit (forma de credit bancar, negociat pentru o anumita perioada)

13

Secured (denota un imprumut /garantat/ in care creditorul obtine active de vandut ca despagubire)

14

UNIT 6

MONEY MARKETS

In the last decades, one may speak about a globalization of the economic activity of the European countries. Trade, production and investment have become more international. The new market has facilitated the settlement of debts resulting from the international trade. The capital flows from a country to another one easily because the fixes rates of exchange have been dropped and one currency is used in the EU.

Deals are transacted with a counter party, i.e. customers, banks, financial institutions; the dealer is doing this job. Deals are effected by phone or electronic system, either directly or by means of a broker who gets a commission for this.

An inter bank foreign exchange market is created; it is a form of network, between commercial banks, central banks, brokers, customers who can communicate easily, using computers, phones, e-mails. Foreign exchange traders make markets, speculate in different currencies.

Money markets can be defined as market places for short term lending and borrowings (it means less than 90 days) and are, in fact, networks of dealers and institutional investors. For dealing on such markets, there are used short debt instruments which are financial instruments such as certificates of deposits, commercial papers, banker’s acceptances, treasury bills. New York, London, Tokyo are famous for their money markets. The dealers are in constant communication with each other, with borrowers and investors taking advantage of the arbitrage opportunities.

Answer the following questions:1. Can you tell what the last decades look like? 2. How are deals transacted?3. What do you know about bank foreign exchange market?4. What is a money market?5. What do you know about it?6. What do the dealers do?

Vocabulary

15

• Arbitrage (transfer non speculative de fonduri, de la o piata la alta )

• Asked price (pret solicitat)• Bid (pret la care un market maker cumpara actiuni)• Broker (agent care pune in legatura doua parti, oferindu-le

acestora posibilitatae de a incheia un contract intermediat de el)

• Capital market (piata de capital)• Cross rate (rata de schimb intre doua sisteme valutare

exprimata intr-un al treilea sistem valutar)• Currency backing (aur sau valori care mentin puterea

internationala a unui sistem valutar

• Currency future (contracte futures in care se cumpara/vinde, la o anumita rata de schimb)

• Dealer (comerciant de orice fel)• Financial market (piata financiara)• Foreign exchange (schimb valutar)• Hard currency (sistemul valutar al unei tari care are o

economie puternica)• Hedging (operatiune facuta de un comerciant/ dealer care

doreste sa protejeze o pozitie vulnerabila)• Investment securities ( active financiare folosite pentru

investitii)• Maturity date (data la care un document ajunge la

maturitate)• Money market (piata britanica a imprumuturilor pe termen

scurt)• Primary market (piata care vinde pentru prima data titlurile

de valoare)• Secondary market (piata secundara care comercializeaza

titluri de valoare existente)• Spread (diferenta intre pretul de vanzare si cel de

cumparare)• Trader (persoana care face negot)

UNIT 7

EUROMARKETS

16

Euro is the currency used by the EU countries, so, the market the Euro is used for, can be named Euro market. It has in view all the transactions done by the banks in Euro currencies, Euro-notes, Euro commercial papers, Euro bonds. It is a market that has developed itself in Europe. The market deals with US dollars as well and it can be named Euro dollar market.

Currency is borrowed and lent by institutions located in different countries, there is a capital flow which seems to be uncontrolled. Theoretically, it cannot be a national control over this market. From the practical point of view, the market forces dictate the lending rates; the rates do not diverge from the domestic lending ones, it happens only for short interval of time. The international banks are the main operators; financial institutions are also allowed to enter the market.

The Euro dollar market is complemented by Eurobond and makes longer term funds available. The bonds are payable to bearer without deduction of tax. They are issued by bank consortia and are placed with investors (national industries, governments, multinational corporations, municipal authorities). London and Luxemburg have developed a secondary market in bonds which has become a supranational market; it is not subject to normal domestic regulations but it is affected by the international events. Important sums of dollars have been deposited in banks which are outside the USA and many USA banks have branches overseas.

Euro-notes are notes issued in bearer form and negotiable. A note issuance facility is a credit facility, the company obtains a loan underwritten by banks which issue series of short term Eurocurrency notes used for replacing the already expired ones. Euro notes are short term notes issued in US dollars.

Commercial papers relate to short term promissory notes issued by companies; they are purchased by investors. They are issued at a discount to the face value they have. The corporations can borrow more cheaply than via bank loans; the investors may earn a higher return on their funds than it is available on bank deposits. A bank usually undertakes the issuing of these papers either directly or through dealers.

Text Comprehension

Answer the following questions:

17

1. What is the Euro market?2. What happens to the currency?3. Which complements the Euro dollar market?4. What do you know about Eurobond?5. What about the supranational markets?6. What are Euronotes?7. What is a commercial paper?

Vocabulary

• Bond (obligatiune; document emis de debitor unui creditor)• Ceiling (cantitatea cea mai mare de bani pe care o poate

depune un client) • Deficit financing (crearea unui deficit bugetar

guvernamental)• Direct investment (investitii in operatiile straine ale unei

companii )• Eurobond (euro obligatiune )• Eurocurrency (valuta depozitata intr-o tara europeana, alta

decat tara de origine)• Eurodollar (dolari depozitati in institutii financiare in afara

SUA)• Eurocredit (imprumut intr-o euro-valuta)• Money supply (masa monetara emisa de autoritatile

monetare ale unei tari) • Treasury bill (bon de tezaur; cambia)• Underwriting (a garanta o emisie de obligatiuni, actiune

realizata de catre o banca)

UNIT 8

BANKING RISK MANAGEMENT

All the businesses are confronting themselves with macroeconomic and microeconomic risks; the former are including

18

different effects of recession, for example, while the latter have in view competitive threats.

The companies face breakdowns in technology, commercial failures of suppliers/ customers, political interferences, natural disasters, wars.

The banks are supposed to manage the risks which arise from balance sheet business; banks have fee generating activities which do not appear directly on the balance sheet. Risks can be caused by business transactions and processes of the banks with different customers; banks can get profits if they charge prices higher than the costs of delivering products/ services. So the banks are supposed to identify the risks which are associated with each business they are running. Banking transactions are to take into account the following type of risks: credit risk, liquidity risk, interest rate risk, currency risk, market risk, operational risk, legal and regulatory risks, environmental risk, health and safety risk.

The methods and instruments the banks use for carrying out this purpose are very different and are permanently changing and up dating. Monetary authorities try to develop new and dynamic systems of controlling the banks’ money adapting them to the environment and seek to control the risks caused by new types of operations.

Competition among banks exists but it can be tempered by a strict surveillance which prevents banks to take excessive risks. If competition reaches a very high peak, the banks can move in other areas of higher profitability for them. Risks can become excessive because of hostile reactions of the institutions already existing and acting in the new area banks have moved in. Banks can also suffer because of the problems caused by the financial markets, economic bad management of the government, fraud, corruption and other problems that can affect the prosperity of the area the work in.

Bank managers are supposed to analyze the risks, find out new procedures to diminish them or to get rid of them. They must create effective risk management systems which can manage the risks the banks are exposed to because exposure to risks reduces the value of future cash flows they expect.

Text Comprehension

19

Answer the following questions: 1. What are the businesses facing?2. Do banks manage risks?3. Which risks do banks face?4. What do monetary authorities try to do?5. Is there competitions among banks?6. What are banks supposed to do under

these circumstances?7. What are managers supposed to do

under these circumstances?

Vocabulary• Bankruptcy (faliment)• Bank cash flow (Flux de fonduri reprezentand miscarea

fondului monetar prin banca) • Cash flow (plati in bani lichizi)• Credit risk (riscul ca o posesiune sau imprumut sa devina de

nerecuperat )• Forfaiting (forma de rabat) • Gearing (efectul de levier )• Gearing ratios( indici care caracterizeaza intensitatea

efectului de levier )• Insolvency (incapacitatea de a onora datoriile)• Interest rate risk (risc provocat de rata dobanzii )• Market risk( risc provocat de piata)• Payment risk (plata facuta de catre un partener inainte de a-

si primi proprii sai bani)• Price risk (bancile suporta preturile pe instrumentele

negociate pe pietele bine stabilite)• Risk management (management de risc)• Risk of global banking (diversificarea globala a activelor

permite bancii sa –si imbunatateasca managemntul de risc marind profitabilitatea si valoarea adaugata actiunilor)

• Sovereign risk ( se refera la riscurile pe care un guvern nu le indeplineste cu privire la o datorie pe care o are la o banca private)

• Systematic risk (posibilitatea ca esecul unei banci de a regla platile cu alte banci sa provoace o reactie in lant privand alte banci de fonduri)

20

• Volatile (o piata/marfa/actiune etc. a carei valoare poate fluctua rapid si frecvent)

21

UNIT 9

SECURISATION

Securisation is a phenomenon according to which it is cheaper and more convenient for the borrowers to issue securities rather than to borrow money from the banks. Some of the bank’s borrowers raise money in securities markets.

Securisation is the conversion of bank loans and assets into marketable securities for sale to investors. Securities offered for sale can be purchased by other depositary institutions, non bank investors.

Securisation turns traditional non marketed financial assets into marketable securities. It involves transfer of block of assets to a special purpose vehicle company (issuer) which finances its purchase by the issue of debt . The bank does not have to allocate loan loss reserves against these assets. The capital ratios are improved; it can grant new loans from security proceeds sold to investors. If the securisation is successful, the bank can sell assets and enhances its capital adequacy ratio retaining some of the servicing income.

The note holders are protected from risks associated with the assets. An institution that transfers the assets continues to manage them as servicing agent. The process merges the credit markets and the capital markets; banks receivables are repackaged as bonds and other types of credit. Activity banks tend to act as sellers of assets rather than portfolio lenders who keep all the loans in their own portfolio. The bankers consider the loan quality in terms of their marketability in the capital markets rather than the probability of their repayment by borrowers.

In the UK securisation loses popularity, the mostly used form being the securisation of mortgages; in the USA it is more common and covers a greater variety of loans.

Banks securitize and sell a broader base of loan receivables. These arrangements are facilitated by an investment bank and involve a letter of credit guarantee from a foreign bank/ insurance company.

Text Comprehension

22

Answer the questions:1. What is securisation?2. What conversion is it?3. What does it involve?4. What happens if the securisation is successful?5. What happens to note holders?6. What does this process merge?7. How do the bankers consider this loan?8. What can you tell about securisation in the

UK, USA and Romania?9. Who facilitate these arrangements?

Vocabulary:

• Borrower (persoana care imprumuta)• Convertion (delictul echivalent al crimei sau furtului)• Holder (persoana aflata in posesia unei cambia)• Lender( persoana care imprumuta bani)• Marketable securities (titluri de valoare ce pot fi vandute

sau cumparate la o bursa de valori)• Marketability (posibilitatea de a vinde ceva usor)• Proceeds (bani primiti dintr-o vanzare dupa deducerea

cheltuielilor )• Repack = to pack again (a reimpacheta )• Receivables (creante)• Securities (gajuri/ ipoteci)• Securisation (actiunea de transformare a imprumutului intr-

un gaj)• Securitize( a trasforma un imprumut intr-o ipoteca/un gaj)• Servicing agent (agent care achita dobanda unui imprumut)• Servicing a loan (achitarea dobanzii unui imprumut)

UNIT 10

23

MONEY LAUNDERING

Money laundering is a process used by offenders who attempt to conceal the true origin and ownership of the proceeds; these proceeds are results of criminal activities. It allows them to maintain control over the proceeds and provide a legitimate cover for their source of income.

The laundering of the proceeds that result from criminal activity is done through the financial system. The people who are involved in such an action exploit the facilities of the financial institutions of the world. Such an action is done easily under these conditions of free movement of capital. Banks involved in such actions risk to lose their market reputation.

Money laundering is accomplished in three stages, involving numerous transactions of the launderers. Here they are:

1. placement – it means a physical disposal of cash proceeds got from illegal activity

2. layering – it implies a separation of illicit proceeds from their source; there are created complex layers of financial transactions meant to disguise the audit trail

and they assure anonymity3. integration – supposing that the laundering process

was successful, the proceeds are placed back into the economy; they re-enter the financial system and seem to be normal business funds.

Text Comprehension

Answer the following questions:1. What is money laundering?2. Where does it come from?3. What do the people involved in laundering

do?4. How is money laundering accomplished?5. Which are the stages?6. Can you describe them?7. Is money laundering to be found in Romania?

24

Vocabulary

• Accounting (contabilitate)• Arrears (bani datorati dar care nu sunt platiti la scadenta)• Audit (examinarea independenta a rapoartelor financiare

ale unei organizatii si formularea ulterioara a unei opinii)• Balance sheet (bilant) • Book value (valoarea contabila a unui active)• Capital gain/ loss (castig/ pierdere rezultat/a din

operatiunile de capital)• Depreciation (diminuarea valorii unui active imobilizat)• Financial accounting (contabilitate financiara)• Goodwill (diferenta dintre valoarea activelor nete separate

ale unei companii si valoarea totala a acesteia)• Gross margin (diferenta dintre incasarile din vanzari ale

unei firme si costurile bunurilor vandute)• Money laundering (spalarea banilor)• Net interest (dobanda platita la un cont de economii sau la

unul current, la o banca britanica)• Net margin (marja neta/ bruta )• Outstanding (expirat, neachita)t• Profit and loss account (cont de profit si pierderi)• Reconcilement (reconciliere)• Trial balance( balanta de verificare)• Value data (data la care anumite fonduri devin disponibile

pentru utilizare)

25

UNIT 11

WHAT IS BUSINESS?

In recent years, Western countries have been going through major changes. After a period of 25 yeas following World War II in which these countries enjoyed unprecedented growth and prosperity, some economic difficulties appeared in the 70's and early 80's .Though some of these difficulties now seemed to have lessened, people no longer feel assured of the living standards their parents took for granted .Besides these difficulties, a speedy development of technological progress has brought forth some undreamed-of amusements and conveniences : robots, video recorders, "smart" telephones" computers, that flash information on displays in seconds.

These changes have affected to a great extent traditional ways of running business. Managers have been forced to adopt new techniques, to tighten financial controls and sometimes even to close plants or cut jobs. More than ever, people are wondering nowadays what the social responsibility of business is to the society it operates in.

Is making profits the only goal of businesses? Should businesses strive for the achievement of some other goals as well-such as environmental protection or fairness to consumers?

In a traditional and very broad sense, we can define business as all the work involved in providing people with goods and services for a profit. Defined as such, business implies an enormous variety of tasks.

Text comprehension

1) Answer the following questions.a) How can you define profit?b) How can you define business?c) What are the goals of businesses?d) What are the benefits of competition in a free- market

economic system ? e) How can demand and supply affect prices?2. Give synonyms for the following words : profit ,

26

company, entrepreneur, to supply , to lesssen , to boost, purchase foundation , to strive ,to demand

Basic Vocabulary• achievement = realizare • to boost = a dezvolta rapid • goal = tel, scop • economic growth = crestere economica• to lessen = a micsora, a scadea • supply = oferta• demand = cerere • business= afacere , firma (mica) • profit and loss = profit si pierdere • environment = mediu inconjurator • to purchase = a cumpara, a achizitiona • to run a business = a conduce o afacere • to tighten = a strange • labour market = piata fortei de munca

Speaking and Writing Topics

1) Speak about the advantages and disadvantages of a market

economy 2) Influences of the speedy technological development on

the labour market

27

Unit 12

ORGANISATION OF BUSINESS

Legal and financial aspects are closely linked to business because, before any business starts, capital must be obtained. The amount and nature of capital, methods of raising it as well as the manner of its control obviously depend on the type of business organization

The simplest form of business organization is the one-man business or sole trader (sole proprietor) who has control of his capital with almost complete freedom from external interference.

This business can succeed particularly where commodities such as foodstuffs tobacco, sweets, newspapers are in regular demand and where the market is local But there are also serious disadvantages since a sole trader's responsibility is great and the expansion of such a business is limited to the financial' resources of the owner.

When further capital or specialization is needed this generally leads to another type of organization, the partnership.

A partnership may consist of a small number of persons called partners that contribute the capital for the business, either in equal or in agreed proportion. They may take an active part in the management of the business but the share the resulting profit or loss as well. The partners who play an active part in the management of the business a known as active partners as distinct from the other sleeping partner Accountants, solicitors, doctors and brokers usually work in partnership.

A company is a more complex business organization consisting of an associate: of people who both contribute capital and agree to share the resulting profit or loss.

In the UK, the joint stock companies can be set up by Royal Charter of England), by a special Act of Parliament (companies which are usually monopoly of public utility services such as railways, canal, gas, water and by registration.

Registration is the most usual way and the companies in which the members are limited to the value of their shares are of two types: private companies and public limited companies.

The private limited companies have the letters LTD after

28

their name and consist of a number of; members (shareholders). The shares are held among their members companies are not allowed to invite public to subscribe shares or debenture; to transfer shares is only with the consent of the directors and this restriction implies a high degree of risk.

The public limited companies have the letters PLC added to their name and consist of a number of members and they can offer their shares for sale. Like the private ; companies, the PLCs have limited liability but, unlike the former, the shareholder can sell their shares to people who wish to buy on the Stock Exchange. The capital of the PLCs must amount a minimum of £50.00

Another form of business, i.e. temporary partnerships constituted for carrying out one particular trading objective are called joint ventures. The partnership is dissolved after the venture is completed.

Topic comprehension

1. Answer the following questions

Vocabulary Topics for speaking and written essays

29

UNIT 13

WHAT IS A FRANCHISE?

Although owning your own business has proved to be rather risky, many people prefer to work fourteen hours a day, seven days a week for themselves than eight hours a day, five days a week for a large corporation. Therefore buying a franchise seems to be the perfect solution because it brings together independence and a measure of security .The franchise operation brings a corporation with a famous product together with an individual desiring to start a small business.

The franchisor grants this franchisee the exclusive right to use the franchisor's name in a certain territory, in exchange for an initial fee plus monthly royalty payments .This: type of operation enables the company to establish outlets for its product o service without major capital in vestment. At the same time the franchise faces less risks than an independent entrepreneur, because the large organization provides financial and managerial assistance.

Franchising began in America already in the nineteenth century. At present the fastest growing franchise operations in the areas of foodstuffs soft drinks, hotels, motels, fast food establishments and even real estate dental care and video.

According to some experts, during times of high unemployment people are more likely to buy franchises. Some will even mortgage their homes to buy franchises.

Franchising helps to solve two major problems the small businesses are constantly faced with: lack of money and of know-how. The franchisor unlike many independent proprietors has enough experience to estimate start-up costs realistically and therefore he will not grant the franchise unless the prospective franchisee has enough money for the start-up costs. But if accepted, the franchisee has the advantage of being able to buy supplies and to obtain credit and insurance at low costs.

Training, advice on advertising, taxes and other business matters, as well as instructions in the routine day-to-day operations are also provided by the large company.

Still, there are also some important drawbacks to be considered. Chief among the disadvantages is the monthly payment or royalty .If the outlet does poorly, most of the profit may end up going to the franchisor.

Another drawback of franchises is that they allow very little independence .If the business is so tightly controlled ,some franchises might in the end, feel like employees.

30

Although franchises can offer the small business person a good way to set up a shop, they should be carefully considered before every decision is made.

Text Comprehension

1. Read the text carefully and try to explain the following key words:

- franchise- small businesses- royalty- managerial assistance- real estate- mortgage- lack- grant- advertising

- venture-capital - start-up company

2. Answer the following questions :

- Why do many people prefer to work on their own ? - Which is the perfect solution for independent businessmen without financial means? - What is a franchisor? - What are the duties of a franchisee? - Has franchising any advantages for a large company? - What kind of assistance does the large organization provide to the franchisee?

-When did the first franchising businesses start in America?

-Mention some drawbacks of franchising.

Topics for speaking and written essaysa) The bright side and the dark side of

franchisingb) Possible franchise businesses in the town you

31

live c) Advantages and disadvantages of small businesses as compared to large corporations.

UNIT 14

MICROECONOMICS AND MACROECONOMICS

People involved in economic activities who want to start and run successfully their own businesses must understand both microeconomics and macroeconomics so that they may make sound economic decisions.

Microeconomics refers to the study of costs and revenues of individual enterprises .Prices of individual items are set at the "microeconomics" level , by means of the demand and supply curves. If the price of a certain product declines, it generates a greater demand. Correspondingly, the supply of a product (i.e. the production) increases following a rise of its price. By combining the demand and the supply, the market places manage to establish a point of equilibrium where the ideal price of a product can be found.

But the prices have a great influence not only on producers but on investors as well. Therefore, the customers or the buyers are those who through their willingness to buy a certain product basically shape the allocation of resources and production of goods.

Price affects the supply of a product by helping business people to decide which industries to invest in .New factories and new companies came into being because the market price of a certain item signaled high profit potentials to managers and investors. These signals come largely from the behavior of consumers.

Whereas eighteenth century economists believed that all production and allocation decisions could be made by businesspeople on the basis of prices set by the free-market, in our modern society, the government can use its power to change prices or change the way resources are allocated.

Society needs things such as: police, fire protection, road building or satellite launching, which the free-market system

32

cannot supply properly. This is where government intervenes, supplying public goods and services, setting up taxes and duties to regulate business and making transfer payments.

The macroeconomic level helps us view a national economic system as a whole .At the macroeconomic level, the concept of circular flow illustrates the interrelationships among businesses, households and governments .If one looks at an economy as a giant circulatory system, then businesses and consumer households can be regarded as two vital organs: the heart and the lung. Each needs the other to keep going just as the bloodstream carries in one direction and carbon dioxide in the other, the economy carries goods and services on way and money the other .Consumer households pay money for the goods and services provided by businesses. With this money businesses pay for raw materials and for the labor force which also comes from households. Meanwhile, the government is involved in the system as well. It buys goods and services, as well as labor. Households, which provide workers, are producers and consumers at the same time, businesses are consumers of labor and producers alike. Money in this pattern appears under different names (taxes, pay, and purchase) depending on what goods and services are exchanged for money. The circular flow shows the interrelations between all the elements taking part in the economic activity .This flow is measured in terms of the gross national product (GNP) which indicates a nation's economic growth and provides a comparison with the output of other nations.

Every year thousands of hopeful entrepreneurs launch new businesses. If they come up with a good product or service, if they manage to get enough financial aid to see them through the first difficult months or even years, they may make a go for it.

Text Comprehension1. Answer the following questions- How can you define microeconomics?- What does macroeconomics involve? - What does the concept of circular flow mean ?- What are the effects of prices ?- What is the role of the market places ?-What does GDP indicate?

33

- What is the role of government in a market-oriented economy?

2. Vocabulary - sound decision = decizie corecta, potrivita- to be involved = a fi implicat - cost and revenues =cheltuieli si venituri - demand and supply curve = curba cererii si ofertei -to rise- rose- risen = a creste, a se ridica, a se inalta - to raise (ed) = a creste, a mari, a ridica - customer = client -household = gospodarie - allocation of resources = alocare de resurse - flow = flux - raw materials = materii prime - GNP (gross national product) = produsul national brut - entrepreneur = intreprinzator - to launch = a lansa - output = productie

3.Topics for speaking and written texts

Should governments intervene in economic activities ? When and why ?

Give examples of good/bad interventions at macroeconomic level .

How do supply and demand influence product prices?

34

UNIT NO. 15TWO BASIC CONCEPTS IN FINANCE - ASSETS

AND LIABILITIES

Finance is the management function through which money is effectively obtained and used.

Managing a company's finances means thinking in terms of two opposite categories: assets and liabilities. Assets' are the items 'of value that the company owns (including money itself).Liabilities are debts, the sums that the company owes to other businesses or individuals. If a company subtracts its liabilities from its assets , it knows exactly where it stands financially: the reminder is what belongs to the owner of the business .This is often called owner's equity, or shareholder's equity namely the portion of a company's assets that belongs to the owner after obligations to all other creditors have been fulfilled.

Inmost corporations shareholders' equity consists of common stock shares of ownership of a business) sold to thousand of individual investors through a stock exchange , plus retained earnings- the total net income a company has earned over its life ,minus the funds returned to shareholders as dividends. Dividends are sums of money paid to shareholders of the corporation out of earnings.

There are different kinds of assets and liabilities, each with its own advantages and disadvantages.

The short-term assets are often termed current assets and are defined as the resources that can be turned back into cash within a year. Raw materials, like for instance, steel, cotton, or a warehouse of T-shirts ready to be dispatched to stores are all short-term assets. Cash itself is a short-term asset. Others include a company's accounts receivable, i.e. the money that is owned to the company for items or services it has sold. The faster any asset can be converted into cash, the higher its liquidity. Borrowed money that must be paid back within the year is a prime example of a short -time liability, or a short-time debt. Other short-time liabilities include: rent, salaries, and unpaid bills for raw materials.

Companies that may have excess cash on hand for short periods, must place it in short-term investments.

The financial managers must be informed about interest

35

rates as well as the overall economy in order to time borrowing to their best advantage.

Text comprehension

Answer the following questions - How can you define assets?- Give example of short –term assets?- Why are current assets important for a company?- What does equity consist of?- Which are the short-term liabilities in a company?- What are the advantages and disadvantages of long-term

assets?

Vocabulary

• assets = active • accounts receivable = sume de incasat • liabilities = passiv, datorii • debt =datorie • to own = a detine in proprietate • ownership = proprietate • equity = capital • shareholder = actionar• stock exchange = bursa de actiuni • earnings = castiguri • dividend = dividend • interes rate = rata dobanzii • short-term = pe termen scurt • long-term = pe termen lung • to substract = a scadea

36

UNIT 16

WHAT IS MARKETING?

The business environment has been continually changing and business people are worried about keeping up with it.

Consumer values change rapidly and competition in the market becomes fiercer. As a result business people’s attention focuses on customers and they try by means of polls, interviews or questionnaires to win the customers over Even such conservative industries as 'railroads and utilities are courting consumers, for as one marketing consultant pointed out: "The customer is the most important product ......... because if he doesn't like what we have, he can go elsewhere ...."

Many companies are learning that they need not only good products but also marketing skills in order to succeed. They must be able to identify consumer needs and to satisfy in a mutually beneficial manner. Those people who want a given product and can buy it constitute its market.

Marketing has changed radically over the past half-century. At one-time, most firms were production-oriented and restricted marketing activities mainly to taking orders and shipping goods. Then came sales-oriented marketing and it emphasized selling. Since World War II , however, most large companies in the world have shifted to a consumer-oriented approach known as the total marketing concept. This concept relies heavily on marketing research activities .The total marketing approach gives

The buyer has a say in what goods or services the company sells. Therefore the efforts of the company’s departments should be coordinated to produce what the consumer wants.

Essentially marketing research gets -.information about : a) what products or services the consumers want ; b) what forms ,colours, packaging, prices and retail shops they prefer ; c) what type of advertising, public relations and selling practices are most likely to appeal to the consumer.

Population statistics are a basic marketing tool. They can indicate with reasonable precision how many people there are, how old they are, what they earn, how they spend their money and where they live.

37

The reasons why consumers decide to buy a product may be rational or\and emotional. Rational factors include cost, dependability; usefulness. Emotional factors are satisfaction of the senses, fear, pride, sociability and emulation.

Besides individual consumers, there are also industrial consumers and the marketer has to adopt a different marketing strategy for them .For instance, a major banking institution wants to overhaul its entire computer system. The motivation for acquiring technical business equipment or services is usually rational, based on its usefulness to the buyer. Businesses try to avoid investing in unnecessary services or products. Emotional motives do not influence such buyers to a great extent .Moreover the business buyer possesses technical background and negotiating skills that ordinary consumers lack.

Text comprehension

1. Answer the following questions- Why do businesses today focus on customers?- What is marketing ?

- How has marketing changed over the years and why? - Why do consumers decide to buy products? - Which are the rational factors involved in buying decisions?

- In what way are the industrial customers different from the individual ones?

2. Vocabulary • to keep up with = a tine pasul cu • business environment = mediu de afaceri • consumer needs = nevoile consumatorului • fierce competition = competitie stansa/ feroce • to focus on= a se concentra asupra • pollls = sondaj• to win over = a castiga de partea sa, a atrage • skill= aptitudine, talent • to emphasize = a accentua• approach = abordare • to shift to = a se orienta spre

38

• retail shops = magazine cu vanzare en detail

3. Topics for speaking and writing Compare the different approaches used in marketing.

Give examples of emotional motives used by marketing strategies to sell their products. Ethical and unethical marketing strategies. Give examples of your own .

39

UNIT 17

THE STOCK EXCHANGE MARKET

Securities market provides a means whereby investors can buy and sell stocks. They operate amazingly fast .The New York Stock Exchange boasts that once the order to sell has been placed, it can take less than one minute to dispose of a stock such as IBM. •

The two kinds of securities markets are stock exchanges and over-the-counter (OTP) markets. A stock exchange is an organization whose "members join together and provide a trading room where members can meet to buy and sell securities for their customers .Stock exchanges provide a key service : they organize all the information that exists at any one moment about the price at which investors are currently willing to buy and sell particular stocks.

They do not hold an inventory of stocks for sale, they are merely a place for matching a buyer with a seller .The second, very important kind of market place for stocks and other securities is the OTC market .This market consists of a network of registered stock and bond representatives scattered across a country who trade with each other by phone or teletype They provide stocks to their customers by holding stocks in inventory .They are also ready to purchase stock from their customers and thus they are said " to make a market " in that stock..

Many important national newspapers print reports of daily tradings in specific stocks and bonds, along with various stock averages. The best known average is the Dow Jones industrial index which represents an average of thirty leading industrial stocks from the U.S.A. The name of this average comes from two American economists C.H.Dow (died in 1902) and E.D. Jones (died in 1920).

When the stock market is rising, we speak of a bull market. When it is declining, we speak of a bear market. The origin of these terms is rather uncertain, but you can remember which by recalling that a bull tosses an attacked upward with its horns while a bear wrestles downward to the ground.

Business people and investors also carefully follow other news that may have a bearing on the market, including broad

40

social trends and the state of the national and international economies.

Customers may also invest through a mutual fund or an investment company in which many investors pool their money to buy securities .Each investor owns shares in the fund and the fund uses the pooled money to buy stocks or bonds issued by various companies. These investment societies are especially useful for small investors who don't have time or experience to find investment opportunities .Due to their diversified portfolio, mutual funds diminish investment risks. They also offer liquidity to their customers that can turn their shares into cash whenever they want.

Many business people are interested in the prices of the raw materials they use to produce finished goods .These raw materials, which are known as commodities, are traded on commodity exchange markets. These markets operate just as the stock exchange market.

Text Comprehension

1. Vocabulary • Securities = hartii de valoare• Stocks = pachete de actiuni • Share = actiune individuala • Shareholder/ stockholder = actionar• Bonds= obligatiuni • OTC (over the counter- la vedere/pe tejghea) market = piata actiunilor necotate la bursa• Bearing = influenta • Average = mediu (adj.), medie (subst.)• A bull market= pata bursiera in crestere • A bear market = piata bursera in scadere • Commodities = bunuri de larg consum

41

2. Answer the following questions:

- What are the functions of the stock exchange market?- Who were C.H. .Dow and E. D. Jones ?- Who influence the increase and decrease of the stock exchange ?- What is the OTC market ?- What do investment companies do ?

Speaking and writing Stock exchanges all over the world react to various events

whose nature may or may not be economic. . Give examples of the way in which such events (wars, earthquakes, change in political regimes, rising prices, etc.) have influenced the stock exchange and the economic life as a whole.

42

UNIT 1 8

FUNCTIONS OF COMMERCE

Commerce as a human activity is essentially the moving of goods from the seller to the buyer, namely the exchange and distribution of goods and services. As the goods are almost always produced far away from the place of consumption, their way from the producer to the consumer is a long and complicated one. Moreover, the goods are produced in large quantities but used in small ones.

While the manufacturer has a limited production range, the consumer's requirements are almost unlimited in variety and it is the function of commerce to provide links between the stages of this process and the actual tools needed to make it work.

The main functions of commerce are as following.Trade is essentially the general exchange of goods and

services between producers and consumers. Trade consists of Home Trade including Wholesale Trade and Retail Trade and Foreign Trade dealing with Imports and Exports.

Transport concerns the moving of goods by land, sea or air as well as the work of agents, travelers, trade representatives, etc., people who altogether carry it out.

Communications are generally linked to the commercial activity as a whole since no transaction is possible without communications. Also, without communications endless delays and hindrances occur in all stages of commerce. Communications are made possible through the postal and telegraph system, telephones, facsimile (fax), E-mail, cables, radio mobile systems and satellite.

Warehousing is a major function in modern conditions as production is usually in advance of demand and goods have to be stored appropriately in the warehouses of the manufacturer, wholesaler or retailer until they are required.

In this respect, each producer makes use of numerous depots at specially arranged places, usually at the consumer's reach. This function not only enables goods to be supplied whenever they are wanted, but also wherever they are wanted. Warehousing also provides a central pool for goods from where supplies may be taken at any time so that the wide fluctuation of

43

prices caused by glut or short supplies can be avoided.The risk of loss or damage in a business is covered by

insurance policies which render trade secure and stable, since it enables the businessman or businesswoman survive losses by damage, fire, shipwreck, etc.

Text comprehension 1. Vocabulary

• Seller = vanzator • Buyer =comparator • Goods= marfa • Production rang = gama de productie • Requirement = cerinta• To provide = a furniza • Wholesale trade = comert en gross• Retail trade = comert cu ridicata • Foreign trade = comert exterior • To deal with = a se ocupa de • To carry out = a efectua • Whare housing = activitatea de depozitare • Damage = paguba • Insurance policy = polita de asigurare

2. Written work - Write briefly on one of the following topics:

• the function of trade;• transport function and requirements for an efficient

transport activity;• means of communications used in the commercial

activity;• the need of storing goods in adequate places;• services the banks provide their customers with;• the importance of the insurance functi

44

UNIT 19

AN EXPORT TRANSACTION

When an exporter receives an order from an old customer, the exporter first acknowledges it. If the price and terms are satisfactory and the goods do exist in stock, they are packed and made ready for dispatch. When the indent may require goods from several manufacturers it has to be split up accordingly and separate orders are placed with the various firms which are given instructions as to time and place of delivery, make-up, packing, marks, etc.

The goods are packed in lined cases (containers) which are sent to a Shipping Firm. The shipping agents charge a commission and relieve the exporter of a lot of complicated formalities. The goods are sent to the port of embarkation either by truck or rail way and the superintendent at the docks is informed of the dispatch of the goods by a Shipping Note. Then, the shipping company makes out the Freight Note which is sent to the exporting firm expected to pay the amount of freight to the company.

A Customs Specification is sent to the Customs Office of the point of shipment within six days of the clearance of the ship. This specification gives all the particulars of the goods in compliance with the Official Export List.

The staff in the exporting firm now has all the data required for making out the Invoice. This is usually made out in triplicate and gives all the necessary details of the goods, the marks, and numbers of the containers and the total value of the goods. If the Invoice is marked Loco it means that he importer has to pay all charges from the exporter's warehouse to his own, i.e. the charge for the containers, the carriage to the port, the freight and other shipping charges, the insurance premium and the cost of the Bill of Lading. The quotation F.O.B. (free on board) means that the seller bears all the expenses until the goods are loaded on board the ship; C.l.F. (cost, insurance, freight) means that all charges from the warehouse to the port of destination are borne by the exporter, while under C&F the insurance premium has to be paid by the importer. FRANCO means a free of charge delivery to the customer's premises. On the back of the Invoice is printed the Certificate of Origin certifying the origin of goods.

45

Text Comprehension

1. Vocabulary • Indent =comanda • To acknowledge = a confirma • Dispatch = expediere • To be split up = a fi impartita • Delivery = livrare• Make-up = structura • Shipping firm = firma de transport • To charge a commission = a incasa un comision• Amount =suma • In compliance with = in conformitate cu • To bear the expenses = a suporta cheltuielile • Invoice = factura comerciala

2. Answer the following questions?- What are the duties seller after he acknowledges receipt

of an order?- What is the function of the shipping company in an

export transaction ?- Who bears the shipping and insurance expenses in an

export transaction ?- What is the difference between F.O.B. , C.I.F. and

Franco delivery terms ?

46

UNIT 20

METHODS OF PAYMENT IN FOREIGN TRADE

For the payment of debts and settlement of accounts in the foreign trade, both the organization and instruments are provided by the banks with their branches and correspondents all over the globe.

1. For bank notes and coins the banks issue Traveler’s Cheques which can be mainly used for traveling and personal expenses. Credit Cards also meet the same needs. The banks provide an international system of Bank Transfers in place of the cheques system and, in case of urgency, the payment can be made by Cable Transfer.

2. The oldest method of payment in foreign trade is the Foreign Bill of Exchange which differs from the Inland Bill in two important points: the payment method and the number of copies. The Foreign Bill of Exchange is made payable either at sight, i.e. the day when it is presented to the drawee, or at a given period after sight(30, 60, 90 days after sight or even later) and it is drawn in sets of two or three copies.

In case of dishonour, the Foreign Bill of Exchange must be protested in order to protect the creditor's rights in the Bill.

The due date of the Bill is determined by the number of days after sight, e.g. 30 days after sight. The specimen given is the original Bill which is called First of Exchange having two more copies.

The drawee accepts or pays the Bill and can either hold it until maturity or have it discounted in his bank, thus recovering the use of his capital.

When the Shipping Documents (the Bill of Lading, Insurance Policy and Invoice) are attached to the Bill of Exchange they create a Documentary Bill of Exchange and it is then sent to the bank for collection.

Depending on the arrangements between the importer and exporter, the documents which form the title to the goods can be handed over either against payment (D/P) or against acceptance of the Bill (D/A).

The bank is generally instructed not to present the Bill before the merchandise has actually arrived. On the other hand, if a

47

Bill is drawn 60 or 90 days after sight and the documents are to be released only against payment, the importer can get possession of the documents by paying earlier, e.g. 30 days after sight.

Since the disadvantage of this method is that the exporter has to wait quite a lot before he receives the money, he often approaches his bank for an advance on the shipment which is generally granted on the signing of a Letter of Hypothecation,

For contracts that imply a large amount of money and time a Letter of Credit (L/C) is preferred as a secure means of payment. The correspondent bank will be then prepared to accept the Bill on behalf of the exporter; the importer consequently draws the Bill on the bank and not on his customer thus establishing an Irrevocable Documentary Credit which gives the exporter a complete protection. The Irrevocable means that the Letter of Credit cannot be changed or cancelled without the agreement of all parties.

Text Comprehension 1. Vocabulary

• Payment =plata • Bank note = bancnota • Coin =moneda • Payable at sight = platibil la vedere • Drawee = tras, platitor• In case of dishonour = in caz de neplaa• Bill of lading= conosament , foaie de expeditie • Bill of exchange = cambia , trata • Merchandise = marfa • Letter of credit = acreditiv • To cancel= a anula • Irrevocable = irevocabil

2. Answer the following questions?

- Which payment methods are given in the text for export /import transactions?

- How does the Foreign Bill of Exchange differ from the Inland Bill of Exchange ?

- Explain how the letter of credit works and what are the 48

advantages of such a payment method?

49

PART II

ENGLISH GRAMMAR

THE NOUN

Definition: part of speech that denotes beings, things, states, actions, phenomena, abstract notions, qualities, relationships; ex. boy, table, flower, sleep, departure, rain, beauty, courage, darkness, friendship,

Stem building morphemes: -er: worker; -ship: friendship;-ment:movement; -dom: freedom; -ness: darkness

Grammatical categories: number and case.

Syntactic functions: subject, predicative, object: My father is a teacher. I see a man. He spoke about his invention.

Classification of nouns:On the morphemic level:

a) simple or root nouns : man, fish, chair, room, house

b) derived nouns: work-er, friend-ship, move-ment, dis-agree-ment

c) compound nouns: hand-bag, snow-ball, pen-holder,

On the derivational level:a) simple nouns : man, fish, car, catb) derived nouns, obtained from different kinds of derivation: - affixation: work-er, ill-ness,

- conversion: (the) work / (to) work; the rich / rich(adj.)- shortening and abbreviation:

exam/ examination; lab/laboratory;- sound interchange: to feed –food; to import-import;

50

c) compound nouns: composition of various stems: lamp-shade; pen-holder

Substantivization of adjectives:a) wholly substantivized: native(adj)/ a native(noun), a native’s house; Italian,Italians… b) partially substantivizedSubstantivization of Participle II: the accused; Substantivization of other parts of speech: by conversion, any part of speech may become a noun: a try, a go, a somebody

Classification of noun according to meaning:1. animate-inanimate: boy, girl, -tree, book2. concrete-abstract: table, pencil –idea, friendship3. common-proper: city, country- Bucharest, Italy

Classification of noun according to number1) countable (denotes countable objects): a book-two books2) uncountable (denoting materials, qualities, phenomena): sand, milk 3) collective nouns; the singular form connotes either a singular or a plural concept: family-families

My family is here.(family= a single unit) My family are here. (all the members) Many families are here. (several fam.) Number: Singular, Plural Plural formation: -(e)s added to Singular form Pronunciation : a) /s/ after voiceless consonants: lamps /lamps/ b) /z/ after voiced consonants: boys /boiz/ c) /iz/ after sibilants: classes /klasiz/

-es ending after sibilants and –o when the letter is preceded by a consonant: potatoes, heroes, cargoes

Not to be applied to the foreign nouns:

51

a) foreign nouns completely adopted into English: cantos, concertosb) shortened forms of longer words: photos/ photographs

Spelling peculiarities:a) –y ies: country- countriesb) -y ys : boy- boysc) -f -ves: half halvesd) -f -fs: cliff-cliffse) -th -ths: bath-baths

Irregular Plural Forms: woman – women man - men child – children tooth – teeth goose – geese foot – feet mouse – mice louse – lice die - dice ox - oxen

Foreign Plural kept in English:Latin: radius –radii; stratum – strataGreek: analysis – analyses; phenomenon - phenomenaFrench: bureau – bureauxItalian: bambino – bambiniHebrew: seraph – seraphimMost of them have already an English plural form equivalent.

Plural Formation of Compound Nouns:a) the main element gets the Plural form fellow-workers; editors-in-chief; mothers-in-law; passers-by;b) compounds with -man, -woman, change these into Plural:Englishmen; Frenchwomen;

52

c) when man-, woman- are the first, then all of them get the plural : menservants; womenservantsc ) the compound does not contain a noun, the plural ending is added to the last element: forget-me-nots, merry-goes-rounds,

Plural of Letters, Abbreviations and Words which are not Nouns

a) without apostrophe: Write two ls.b) give with apostrophe: Write two t’s.c) their pronunciation: Write two els.d) add –s with apostrophe or not : M.P.s / M.P.’se) –s is added to the end of the word or to the last word of the group, the spelling with apostrophe and without it varies: His life was full of ups and downs. I am tired of your ifs and buts.

Singular and Plural Nouns - Agreement Problems1) town names as Brussels, Lyons, Naples get a Sg. verb

Naples is a seaport.2) geographical names that usually get a plural form verb:

53

The Hebrides are situated near the West costs of Scotland.

Countables

a) used with uncountable meaning as nouns of material, no determinatives : a goose-two geese; I have goose for dinner.b) man used in the Sing., no article = human race: Man is mortal.c) used in the Plural with a non countable content to express an intensified concept: to stroll through fields and woodsd) plurals of some countables :colour = culoare; colours = culori; steag/drapele) have the same plural form identical with that of the sg.: sheep; deer; swine; The sheep is here/ the sheep are there. fruit

Units of measure: foot, pound etc. have the plural form identical with that of the Sg. and it is used when the nouns are followed by numerals expressing their subdivisions: three foot/feet eleven high; two pound(s) tenHundred, thousand, million, dozen, score get the plural form when used without any numerals; hundreds of people; tens of books, but five thousand books

Pluralia tantum nouns: scissors, spectacles, tongs, pincers, trousers; A pair of trousers is on the chair. Two pairs of trousers are here.

Uncountables are with Sg. verbs : advice = sfat; furniture = mobilier; income = venit/venituri

A number of nouns with non-countable content are found in the plural form. Such examples are:

a) nouns which take the plural verb : alms, ashes, mortal remains, alms ; Alms are distributedb) nouns that take the singular form: news, billiards, measles, mumps; News is very interesting.c) nouns which take the verb both in the singular and in the plural: wages, Middle Ages, contentsd) names of sciences: Mathematics, Acoustics

Collectives :

54

a) nouns having two numbers: family, crew. The family is here. The family are here. The families are here.b) nouns expressing a plural concept: 1) denoting animals: poultry; cattle 2) denoting persons: police, cavalry

Gender:a) Masculine gender: father, son, boyb) Feminine gender: mother, daughter, girlc) Neuter gender: chair, house

Masculine and Feminine forms of nouns denoting living beings:1) by adding –ess to the Masculine form: poet – poetess; exception are widow/widower; bride/bridegroom2) feminine nouns are different from masculine ones: man –woman; son – daughter

3) combination with other words: he wolf- she wolf; landlord – landlady; billy-goat – nanny-goat

Case Possessive case: ‘s added to the singular form of the

nounthe boy’s car; Kate’s book ‘ added to the plural forms of the nouns:the boys’ car(s)

but ‘s after irregular plural nouns : children’s toys

group possessive case: Tom’s and Mary’s books(each has books); Tom and Mary’s room (they share the same room)

of possessive : the book of Peter; the toys of the children

‘s /’ Genitive is used with names of human beings, but there are some exceptions, such as:a) nouns indicating space and time, value and weight: three miles ’ walk; two days ’ holiday; two dollars’ book; five pounds ’ boxb) names of seasons, months, days: a winter’s day

55

c) nouns such as: country, city, town, wind, sun, moond) proper nouns, designation of tradesmen;

- institutions of various kinds –colleges, schools, hospitals, cinemas, churches: St. Paul’s (Cathedral); - business or places of business: tailor’s, butcher’s - home, the domestic circle or the house, guests are received in: You can have a drink at my mother’s.

Exercises 1. Turn the italicized nouns into the plural and make all the

other necessary changes in the sentences:1. The birds were eaten by a fox.2. Have you observed the classifying criterion? 3. That knife should be handed in immediately.. 4. Last night a hostel was robbed by a thief. 5. The child in that family has bad manners. 6. The farmer has a hen, a goose, and a sheep. 7. My brother r-in-law is an acountant. 8. My cat never catches a mouse. 9. The businessman is considering the new taxes. 10. She has lost the key to her office. 11. The housewife and the middle-aged woman are the

principal buyers of this product. 12.The inspector will speak to the witness who has seen the accident.

2. Choose the right word from the brackets:I. The scissors (was, were) here a few minutes ago. 2. His

luggage (was, were) lost yesterday. 3. A (little, few) knowledge (is, are) a dangerous thing. 4. (much, many) people on the ship (was, were) getting seasick from the waves. 5. There (is, are) several means of accomplishing our aim. 6. Billiards (is, are) his favourite game. 7. The news printed in that paper (is, are) never objectively described . 8. We don't need to buy so (much, many) furniture, there (is, are) (much, many) chairs here. 9. How (much, many) information do you have about our new employee? 10. You didn't give me (much, many) ideas about the job, and very (little, few) advice.

56

3. Fill in the blanks with one of the following words: bar, bit, item, piece, slice;

1. There are two interesting ... of news in today's paper. 2. Don't forget to buy a ... of soap on your way home. 3. She cut several ... of bread to make some sandwiches. 4. They have bought a new ... of furniture for their sitting-room. 5. Each passenger is allowed to take three ... of luggage. 6. With a ... of luck we can get rid of them. 7. You can have that ... of cold veal left over from yesterday's dinner. 8. This is a ... of good advice, why won't you take it?

4. Use either the analytical or the synthetical genitive with the nouns in brackets:

I. He painted only one (wall, office ). 2. The (students, pa-rents) were invited to the graduation. 3. Do you know the (earth, distance) from the moon? 4. We are not deceived by (that woman, words). 5. The Grand Canyon is one of the (world, natural wonders). 6. Your future depends on your (company, future). 7. When he reached the (bottom, the stairs) he heard a strange noise. 8. I'll always remember (the manager, words). 9. Have you seen (today, newspaper)? 10. John is trying to fix the (leg, the table).

5. Fill in the blanks with nouns derived from the words in brackets:

I. He is a fantastic (football) ..., but also a good tennis (play) ...2. He couldn't give a satisfactory (explain) ... for his (behave) ...3. Cats are said to have a great deal of (curious) .... 4. The (begin) ... of the novel was interesting, but the (end) ... was rather . 5. There is a great (differ) ... between the two educational systems.6. The neighbour gave the police a detailed (describe) ... of the accident.7. (visit) ... are requested to sign their names in the book. 8. The (advertise) ... was published in the evening paper.

THE ARTICLE

It is a form word and has a lexico grammatical meaning

57

that of definiteness indefiniteness It has invariable forms: a /an : a book, an apple and is placed in front of the noun/noun equivalents: a table, a red book Classification of Articles:I Definite ArticleII Indefinite Article

Indefinite Article- its forms are : a/an : a book, a boy; an ice cream, an apple- it is used with nouns in the Singular only- it indicates that the object denoted is one of the whole class, no specification of its individual features is given: Give me a pencil! (any will do)- a noun determined by it may get a descriptive attribute: a woman with the black hair; an interesting book, etc.

Definite Article- its form is the both for the Sing. and Plural :the girl(s); the apple(s); - it pronounced differently /ti/ apple , / / book- sometimes it takes the value of the demonstrative pronoun:

Give me the book from the bed! (that one )- with the uncountable nouns it marks a limited quantity:

The water in the glass is cool.

Absence of the Article- articles may be omitted for the sake of conciseness in newspaper headings, stage remarks, telegrams.Use of Articles with different Classes of NounsProper Names : NO Article is used :John, Smith, LondonBUT 1) names of persons accompanied by Indefinite Article, meaning a certain of, one of: He is a Forsyte 3) both articles are used in front of names of persons when they are used as common nouns:

He has the humor of a Dickens.

3) names of persons in the Plural meaning the whole fam

58

4) names of persons used with Definite Article when preceded by an attribute expressing state, mood, or a permanent characteristic:

NO Article when the attribute is expressed by one of the adjectives: young, old, little, poor, dear, honest pretty, lazy, silly : poor John, lazy Mary, dear Bob5) names of persons used with Definite Article when theyare modified by a limiting attribute even if they are preceded by one of the above mentioned adjectives:

the poor Bob of his youth, the Mr. Smith whom I know

6)when a personal name is preceded by a noun denoting state, speciality, profession, occupation not used as title,the whole combination is preceded by Definite Article the girl Mary, the poet Byron, the composer Mozart

BUT most English titles and some foreign ones have NO Article

Queen Ann, King Richard, Captain Scott, Monsieur Laporte

Geographical NamesNO Article with the following names:1)names of countries: Romania, England, France

BUT the USA, the United Kingdom of Great Britain the Netherlands, the West Indies, the Congo, the Sudan, the Lebanon, the Transvaal

2) names of towns: Bucharest, London, New YorkBUT the Hague

3) names of towns having a geographical or historical

59

attribute: ancient Rome, southern Paris4) compound nouns of places, buildings, monuments,

the first part being a proper name:Hyde Park, London Bridge, Westminster Abbey

5) names of streets may/ may not get an article:Oxford Street, Chancery Lane

BUT the Strand, the High Street, the Mall6) names of months and days: May, June, July Monday, Tuesday when they get a descriptive attribute, they get an Indefinite Article: I went there on a Wednesday.

7) names of seasons when the nature / season is expressedBUT with Article when a certain period of the year is marked, mostly with the preposition in, during : winter was coming, in (the) autumn, during (the) winter, in(the) autumn

WITH Definite Article

1) names of oceans, seas, lakes, rivers, straits, channels, the Atlantic Ocean, the Black Sea, the Leman, the Thames, the English Channel, the Suez Canal NO Article - when the words lake, loch, lough precede the proper names: Lake Leman, Loch Ness - when the names of the river are part of a compound noun Stratford-on-Avon2) name contains an of phrase:

the City of London, the Gulf of Mexico, the Straits of Dover, the Isle of Wight,

NO Article - when the Saxon Genitive is in the structure: St. Helen’s Island, St. Michel’s Mount

3) names of chains of mountains: the Alps, the Carpathians

NO Article - with single mountain peaks: Mont Blanc

BUT some exceptions: the Jungfrau, the St. Bernard,60

the St. Gotthard4) names of groups of islands: the Hebrides, the Canaries5) names of deserts : the Sahara, the Gobi6) names of provinces: the Ruhr, the Riviera, the Tyrol7) names of capes : the North Cape,

the Cape of Good HopeNO Article - when the noun cape precedes the proper name: Cape Horn, Cape Cod

8) names of places, buildings, monuments which do not contain proper names : the Tower, The City, the Channel

9) names of cardinal points: the North, the EastNO Article - when used adverbially: to sail north10) proper name resulted from an adverbial phrase: the Argentina ( the Republic of Argentina) the Tate (the Tate Gallery)

Other Proper Names with Article:1) names of ships, hotels, clubs, theatres:

the Savoy (hotel), the Queen Mary(ship), the Globe theatre, the Iseeum (club)

2) names of newspapers, magazines= attribute + common name

the Daily Telegraph, the Daily WorkerBUT Punch (proper name), Life, Time (uncountable) The Spectator, The Star (countable)

Common Nouns1) Countable nouns in the Sing. must be preceded by one of the

Articles if there is no determinative:a book, the book, my book, this book

2) countable nouns used in the Sing, generically (representing a

whole class) both articles can be used: A lion (any lion) is a ferocious animal.

61

The lion (the whole class) is a ferocious animal.3) nouns denoting members of the family :father, mother,

brother, aunt, baby, nurse, cook may be used as proper names by family members or friends not preceded by Article and written with capital letters:

Where is Father? What about Baby? Cook has gone to the market.4) nouns denoting parts of the day :morning, evening,

afternoon, night get the Definite Article when a particular morning/evening/night is meant and is used with the preposition in : It is seven o’clock in the evening.

The day is cold, dark and dreary.NO Article - when they are used with the preposition at, by at noon, at night, by day, from morning till night

5) names of meals get NO Article : breakfast, lunch, dinner

when used in a general senseBUT both Articles are used when the content of a meal/ definite meals are meant: The day of the dinner has come. to give a special dinner

6) nouns school, college, market, prison, jail, court, hospital

camp, bed, table, sea ...are used without articles when treated as abstract nouns and denote state, activities or the aim associated with them: to go school=to be a pupil to go to bed=to go to sleep

BUT institute, university are used with Definite Article: at the University, in the Institute

7) the noun town used with preposition in the meaning of

62

town life get NO Article : I’m going up to town.It gets the two articles when it has the concrete meaning:Arad is the town where I live. It is a nice town.

8) nouns like: circumstances, conditions, events, matters, things get NO Article : Conditions were abnormal. …the rush of events, The idea was a great success.

9) Definite Article + adj. wrong, right+ countable nouns

I took the wrong bus. He is the right man in the right place.

10) as, kind of, sort of + Indefinite Article (wavers)She was now engaged as (a) governess.What kind of (a) woman is Mary?

11) Indefinite Article may have a distributive value: Six lessons a day(per day)

12) countable nouns ( in the Sing.) are used with Indefinite

Article in exclamatory sentences and without article in interrogative ones:

What books are you reading ?What an interesting book!

13) NO Article is used with nouns in direct address:What is the matter, little girl?

14) NO Article + predicative noun(adjectival character) + enough :He is not fool enough to believe all these.

15) NO Article + predicative noun in adverbial clause of

concession when the noun is placed at the head of the clause:

Child as he was, he suffered much.16) NO Article + nouns denoting kinship used predicatively He was (the) son of a fisherman. She married Peter Smith, son of late Professor Smith

63

17) NO Article + nouns denoting title, rank, state, dignity used predicatively or in apposition:

He is President of the Academy. Mrs. X. is Rector of our University.

18) NO Article with homogenous parts of the sentence expressed by countable and connected by the conjunctions

and, both…and, either …or; neither...nor: Both books and copy books are on the table. She took from the box tea-pot, sugar-bowl and milk-jug. It is more usual to use the Definite Article in front of the first noun of the sequence:

I put the books, pencils and copy books on the table. Uncountables- when used in a general sense, they do not get articles: Where there is life, there is hope- when they are narrowed in their meaning, they get definite articles: the life that was behind him- both articles may be used with nouns of material when they denote various sorts of the substance or the objects made of the material: It is a very good wine. The wines of this region are excellent.- names of illness are a special category: some of them are used with an indefinite article: to catch a cold , to have a cold/ cough/headache/pain/ others with definite article:to have the toothache/ the measles/the mumps

Collectives- the use of Articles depends on the general meaning of articles and on the aspect predominant in the given context: Mine is a small family.

64

The family is small. The family are in the garden.- the nouns of multitude are used with the definite article: The cattle are grazing. The police are searching the house.

Special Cases of Using the Article1) the + most + adjective: the most beautiful2) most+ nouns : Most of the books are on the shelf.3) article + numeral: She has not read the ten books yet.4) article + ordinal number: the third, the second5) article + pronouns: I’ll take the other book.6) article + adjective: the last, the next,7) article in set expressions: to play the piano/ violin

/the fool/ to pass the time; to get the upper hand BUT some set expressions are without article: by land, by train, by car, on shore, on board, in view of to take place, to take part, to catch sight

Place of Article- its usual place is in front of the noun: a long way, the

new house- Indefinite Article after the adverbs: quite, rather, just, pronouns: both, and quite a child, rather lonely, such a thing,- Indefinite Article after the attribute expressed by an

adjective preceded by one of the adverbs: as, so, too, how so short a time, as black a house inside as outside- both articles follow the words half, double: Half a minute ! We paid double the value.

Exercises I. Insert the definite article or the zero article:I. He ran into ... house and locked ... door. 2. ... milk is

65

good for ... children and elderly people. 3. ... food in ... restaurant near me is very good.4. Please, put ... butter, ... bread, and ... eggs in ... refrigerator.5. ... lions are ... wild animals. 6. One of Mark Twain's well-known works is "Life on ... Mississippi". 7. In ... Asia ... elephants are used for carrying ... goods. 8. ... young boy on her right is ... English. 9. We often go to ... Manchester by ... train. 10. How many rockets have been sent to ... moon? 11. He came to his room late at ... night and told ... Uncle Rick how he had spent ... evening at ... cinema. 12. We have ... breakfast rather early. 13. Lizzie, ... baby-sitter , left ... Browns three weeks ago. 14. All the people in ... village go to ... church on ... Sunday. 15. In some houses ... dinner is ... biggest meal of ... day.

II. Insert the indefinite article or the zero article:1.He made ... mistake in his translation. 2. Would you do

me ... favour? 3. The electric light was ... important invention. 4. Where there's ... smoke, there's ... fire. 5. Meeting your family has been ... great pleasure. 6. He is studying ... law. 7. They asked him ... difficult question. 8. She wants to become ... auditor. 9. The bank manager gave his client ... very good advice. 10. We all like to eat ... good food. 11. ... generosity and ... loyalty are ... rare virtues these days. 12. Eggs are 50 p. ... dozen. 13. What ... bad weather we are having today! 14. She bought ... black dress and ... pair of ... matching gloves. 15. ... Exeter is ... city in England.

III. Supply the required articles:I. He speaks with ... great embarrassment of the event. The architect is consulting with ... authority on urban development. 2. ... water used in this beer comes from a special spring. In order to survive, we musthave ... water. 3. ... bread has been called the staff of life. ... bread you baked is delicious. 4. ... silver in this ring is of inferior quality. ... silver is used for money and jewelry. 5. ... genius is 10% inspiration and 90% perspiration. ... genius of Edison is universally recognized. 6. ... fresh milk tastes good. ...milk which I bought yesterday should still be good. 7. Everyone was impressed by ... sinceritywith which the witness spoke. We all admire ... sincerity. 8. After several attempts, he lost ... courage. He showed ... courage that sur-prised me.

66

IV. Fill in the blanks with the required articles:Last year I stayed in ... little town in ... England called ...

Stratford-on-Avon. I wanted to go to ... theatre to see some of ... plays of ... Shakespeare. ... theatre is near ... River Avon, ... beautiful river in which you can bathe and sail ... boats. When I arrived in ... Stratford, I was told to stay at ... hotel called "... Dirty Duck", but I couldn't find it. I asked many people where it was, but no one knew it. I saw ... policeman at ... corner of ... main street. I spoke to him and asked him if he knew "... Dirty Duck". He laughed and told me that he knew it all right. It was just at ... bottom of ... street near ... Plaza cinema. I walked to ... bottom of ... street, saw ... hotel and read ... name above ... door. It was called "... Black Swan"!

V. Fill in the blanks with the indefinite article a/an, before singular countable nouns, or the indefinite pronoun some, before uncountable nouns or plural nouns: 1. He needs ... hammer and ... nails to fix the picture on the wall. 2. They have bought ... furniture for their new penthouse. 3. For breakfast I had only ... bread and... cup of coffee. 4. They are building ... house in my street. 5. Could you give me ... information about this university ? 6. ... people are fonof telling stories. 7. There was ... snow on the high mountain. 8. That little town lies in ... lovely valley. 9. I have ... terrible headache. 10I can give you ... advice, but I can't do the work for you.

THE ADJECTIVE

It - modifies a noun/ noun equivalent, indicating its qualities:

big, great, interesting, young, old - has stem building morphemes: -ful, -less, -ish,--ous, -ive, -ic, un-, in-, pre-;

careful, endless, foolish, courageous, inventive, historic, unimportant, indefinite, prewar,

- has no inflections for case, number, gender. The only

67

inflections are for the synthetic comparison short –shorter – the shortest

- is associated with the following parts of speech:a) noun/noun equivalent: a beautiful girl, an heir apparentb) link verbs : to be clever, to grow olderc) adverbs: extremely difficult, very interesting- is an attribute or a predicative: a silent man; The man was silent.

Classification of adjectivesA) According to their morphological structure:

I. Adjectives on the morphemic level1) simple adjectives :short, big, clever, old,2) derived adjectives: beautiful, dangerous3) compound adjectives: snow-whiteII. Adjectives on the derivational level 1) simple adjectives: black, great, big, young2) derived adjectives: unhappy, beautiful3) compound adjectives: duty-boundB) According to their meaning :

I. Qualitative or descriptive (indicate various qualities): small, large, warm, strong, interesting, beautiful

II. Relative or limiting (express qualities through their relation to some other objects):

1) material: woolen, wooden, earthen 2) place/country: English, Romanian, Italian 3) time :monthly, weekly

Degrees of Comparison- they are formed in two ways:1) synthetically – by adding the suffixes:-er , -est strong, stronger, the strongest2) analytically - by using the words more, the mostimportant, more important, the most important

Synthetical Comparison a) monosyllabic adjectives: big, short, dark, great

68

b) disyllabic adjectives ending in :-y, -er,-ow,-lehappy, happier, the happiestclever, cleverer, the cleverestnarrow, narrower, the narrowestsimple, simpler, the simplest

BUT proper, more proper, the most proper eager, more eager, the most eager

c) disyllabic adjectives with stress on the last syllablecomplete, completer, the completestpolite, politer, the politest

BUT - foreign adjectives: antique, bizarre, burlesque - disyllabic adj. ending in two consonants: abrupt, content, correct, exact - adj.with the prefix a- afraid,alive,alone

d) trisyllabic adjectives built with a negative prefix: unhappy, ignoble, impolite, insecure

Analytical Comparison all the adjectives which are not included in these groups

Spelling Peculiarities- they are required by the addition of the comparison

degree suffixes ;• adj. ended in –e get only –r, -st fine, finer , finest• single consonants are doubled after short stressed vowels hot, hotter, the hottestBUT it does not happen when the doubling does not take place after an unstressed vowel: tender, tenderer, the tenderest • final –y is changed into –i when preceded by a consonant: happy, happier, the happiest

Irregular Degrees of Comparison

69

• some adj. have different forms for comparative and superlative

good, better, the best bad/ill, worse, the worst many/much, more, the most little, less, the least• some have double forms for comparative/superlative

far, farther, the farthest (it makes ref.to space) further, the furthest (it makes ref.to time) near, nearer, the nearest the next( the following) late, later, the latest( the most recent) latter, the last (nothing comes after it) old, older, the oldest elder, the eldest

Use of the Comparative DegreeComparative of Superiority - it is expressed by the comparative degree followed by the conjunction than She was more frightened than hurt. BUT adjectives of Latin origin: superior, inferior, junior, senior etc. have no other forms for comparative He was three years junior than me.Comparative of Equality: -it is expressed by means of the positive degree placed between the conjunctions as …as He is as tall as Peter. Peter is not so tall as Jim.Comparative of Inferiority:

- it is formed by associating the positive degree of the adjective with less;John is less handsome than his friend.

Emphasizing the Comparative• by repeating the adjective in the comparative degree

The days are longer and longer.

70

• by using such words as :much better, far more intelligent, still worse, a great deal earlier

She is much better today than she was yesterday.

Superlative Degree - it can be used both attributively and predicatively - it is followed by a prepositional phrase or clause She was the tallest of the four.

I remember the smallest details of her dress.

Emphasizing the Superlative • by means of the words very, by far,

These are my very earliest impressions.• by means of the words possible, imaginable

Those are the best methods possible.

Position and Order of Attributive Adjectives• it precedes the noun/noun equivalent

a good book• adj. denoting age, color, material, nationality

come next to the noun modifiedHe preferred the quiet little Belgian city to eitherof its more noisy capitals.

• if a noun is modified by adjs. among which there are those denoting age, color, material, nationality, size, form, their order is the following:

(1)determinative (2)various (3)age (4)size (5)form(6) color (7)nationality (8)material (9)nouna high-backed old green leather chaira beautiful large white Turkish merino shawl

Exercises I. Supply the comparative or superlative form of the adjective:I. He is (hardworking) student in the class. 2. She is looking for a (big) car than the one she has now. 3. Jamie is (good) cook I know. 4. He is much (familiar) with modern architecture than with modern music. 5. What is (late) news of him? 6. He was able to get (far) information at the police station. 7. "The Tempest" is

71

Shakespeare's (late) play. 8. Her (old) brother is five years (old) than my husband. 9. The (far) house from the village is Tom’s. 10. He had a word with a (little) personage in the police force. I. The weather in California is (hot) than the weather in Montana. 12. She earns much (little) money than her colleague does.13. My work is bad, but yours is (bad). 14. If you want to get to the market, take (near) turning to the left. 15. Although he is a famous man, he is (modest) than most people. r

II. Fill in the blanks with the intensifies: much, far, a lot, a good deal, a great deal, for the comparative, and by far, possible, imag-inable.

I. In the end he will pay a ... higher price for it. 2. Practicing sports is ... more interesting than watching TV. 3. This is ... the most serious problem facing families this winter. 4. You have found the best ... solution to my troubles. 5. We had the greatest difficulty ... getting here in time. 6. Richard is ... the most talented student in his group.7. Our old secretary is ... more experienced than the new one.8. I think your interviews are ... better than hers.III. Supply the right preposition after each adjective: 1. Alice is very fond ... travelling. 2. He always tries to be polite ... his employees. 3. Be very careful ... what you say to the new head of department. 4. She has never been successful ... anything she has done. 5. We have all the equipment required ... our experiment. 6. She is quite different ... her husband. 7. He took a job because he no longer wanted to be dependent ... his parents. 8. The new teacher is rather impatient ... children. 9. Why do you feel inferior ... your schoolmates? 10. He told me he was very angry ... you. 11. What are you afraid ...? 12. I'm proud ... your success.IV. Choose the adjective which best completes each sentence: 1. (alone/lonely/solitary) Mr Wilder is a ... old man. She is ... in the house. The ... tourist stopped by the well to drink some water.2. (afraid/frightened) The little girl gave the stranger a ... look. The were .. of what you might say. 3. (alive/living/live) Several witnesses to the accident are still .... Frogs feed chiefly on ... insects. No ... creature can do that. 4. (asleep/sleeping) The sight of the ... children moved him deeply. He was ... when his parents returned from the meetingV. Change the following into compound and derived adjectives:

72

Example: a girl with green eyes a green-eyed girl a carpet made by hand - a handmade carpet a play having success - a successful play a student who works hard; 2. a man who looks good; 3. a man with a simple mind; 4. terms which can be accepted; 5. a story which breaks the heart; 6. a person who is giving help; 7. a driver who is not taking care; 8. a woman with a kind heart; 9. a day with much wind; 10. a tree which is a hundred years old; 11. a blouse with long sleeves; 12. a man who has courage; 13. a gown which is cut well; 14. a man with a red face; 15. a moon red like blood.VI. Arrange the adjectives in brackets in the proper order: I. A (black, nice, little) puppy was lying on my door-step. 2. I've bought a new set of (aluminum, kitchen, multi-purpose) utensils.3. You will practice on an (Steinway, expensive, white) piano.4. She greatly admired those (ivory, Chinese, delicate) figurines. 5. That (dark, college, tall) girl is a friend of my brother's. 6. When will you sell your (blue, old) car.7 I was given a (black, leather, small) bag on my birthday.

THE NUMERAL

The numeral is a part of speech that is characterized by the following features:

• a lexico grammatical meaning; according to this, it indicates number, quantity or order

• structure; taking it into account, one may distinguish some specific suffixes used for numeral forming :

-teen; -ty; -th; seventeen, thirteen; forty; fifty; the tenth; the eleventh

• grammatical invariability, i.e. no modification; some of them are turned into nouns and get -(e)s ending.

Hundreds of books are in the library• their place is between adjective and the noun:

The five fine days have goneThese four dolls are very expensive.

73

• in most cases, it is an attributeThe four days were exhausting.They attend the annual meeting.

The numerals may be classified according to their morphological structure into:

• simple numerals from one – twelve• derived numerals – are formed by means of

suffixes; the teen, ty numerals (from thirteen –nineteen; twenty –ninety)

• compound numerals (from twenty-one – ninety-nine )

• composite numerals ( one hundred twenty one)

Taking into account their meaning and function, the numerals may be classified into:

• cardinal numerals (indicate numerical quantity)• ordinal numerals (indicate numerical order)

The cardinal numbers contain whole numbers, fractions and decimal fractions.

WHOLE NUMBERS

This group includes the numbers from 1 to 12 which get no suffixes:

1 one; 2 two; 3 three; 4 four;5 five; 6 six;7 seven;8 eight;9 nine; 10 ten;11 eleven; 12 twelve

The –teen numerals get the suffix to part of the above mentioned roots but bring about some phonetic and spelling peculiarities:

thirteen; fifteen; eighteenbesides these, all of the teen numerals have double stresses: one is placed on the first syllable (a main stress) and the other on the /t/ of the suffix (a secondary stress). The tens, from twenty to ninety, have less modifications from the phonetic and spelling point of view:

20 twenty; 30 thirty; 40 forty;50 fifty; 60 sixty; 70 seventy;

74

80 eighty; 90 ninety

The 0 sign is read indifferent ways, part of them are presented here:

nought /no:t/ in Arithmetic zero measuring instruments use it

/ou/ telephone numbers love, duck, nil in sports language

Nought by ten is nought.The temperature is below zero degrees.My phone number is two five /ou/ five ten six.

The numbers between 1000 and 2000 may be read in two different ways:

1984 nineteen eighty four one thousand nine hundred eighty four

Commas are placed after each group of three numbers: 123,452,122; it corresponds to the Romanian variant 123.452.122

The numbers ten, hundred, million get no –s when they are part of a composite number:

two thousand four hundred twenty four peoplebut the –s suffix is added when these are transformed into nouns:

Tens and tens of persons attended the conference.Millions of flowers are in the fields.

Cardinal numbers form the common fractions having two numbers: cardinal numbers for numerator and ordinal ones for denominator:

one third= 1/3;five sixth= 5/6

For ½ and ¼ besides one half and one fourth, we may say a half, a quarter. The decimal fractions contain a point after the whole number: 3.68 (corresponding to the Romanian 3,68). If the whole unit is less than one, nought is playing the part of the whole, a point is followed and then the rest of the numbers: 0.245.

ORDINAL NUMBERS

75

The ordinal numbers indicate the order of objects, persons have in a row. It is formed by means of the suffix –th placed after the cardinal:

the first; the second; the thirdhave special roots, while the other ones use the existing cardinal numbers:

the fourth; the fifth; the sixth;the seventh; the eighth; the ninth; the tenth; the eleventh; the twelfth

If the tens are to be used, modifications of spelling appear, -y is changed into ie because of the consonant preceding it:

the twentieth; the thirtiethWhen the numeral is composite, the –th suffix is added only to the last element of the group:

the twenty first; the thirty fourth; the fifty ninth

Showing the proportion in which a quantity increases, one may use the so called multiplicative numerals formed of cardinal numbers and the word fold:

double, three fold; four fold;.If one wants to know how many times an action is performed, frequentative numerals are to be used:

once; twice; three times; four times The numerals function as attributes, so they are placed in front of the nouns they determine:

ten students; four cars; five toys There are situations when the numerals are placed after the nouns they determine:

room 200; chapter 5; Besides this function, the numerals may be:

• subjects of sentences: The five told me the story.

• predicative They were ten in the group.

• objectsYou can’t forget the first of October.

• adverbial modifierThey came by twos at the party

76

When reading the dates, one may choose between the following variants: the 10th of August 1978; 10 August 1978; August 10, 1978; August 10th , 1978Ordinal numbers are used for reading the days and cardinal ones for years. American English places the months first and then the days:

August, 10 th 1990Modern writing uses cardinal numerals both for days and months, though the reading of the days is done as if they were ordinal numerals. Numerals may appear in patterns such as:

last but not least( Rom.penultimul) to be dressed up to the nines

(Rom. a fi imbracat la patru ace)the seventh heaven( Rom. al saptelea cer)teen agers (Rom. adolescenti)

Exercises:1. Read the numbers:3, 23, 56, 79, 90, 2, 54, 23, 17, 60, 15, 35, 89, 13, 18, 12100; 103; 1,000,000; 1,576; 10,356; 389; 53,264

2. Read the telephone numbers:25-23-89; 0257-23-67-89; 0212-23-67-90-89;0257-31-458

3. Do the sums:17+6= 100:2= 105x 3= 3,963:3= 28-8= 15x6= 784-23= 20x10= 9x7= 570+24= 3x13= 570:2=

4. Read the money:&2; $45; EU 25; Roni 3297; & 7.40; 10 p; $56.80;$ 5,789; $15.05

5. Change the numerals according to the example:ex. chapter 1 – the first chapter

chapter 3; lesson 10; part 2; page 321; lesson 23; page 40; lesson 25; chapter 34; room 23; level 45; room 1012

77

THE VERBIndicative Mood

English conjugation is built on two tenses: present tense, on one side, and past tense, on the other side. An action can be rendered in the present, so Present Tense, Indicative is used, or in the past, and Past Tense Indicative is built.

He rings the bell, waits a little then leaves.He rang the bell, waited a little then left.

Let’s take Present Tense as reference; opposite to it, there are: Present Perfect (a prior action), Future and Future Perfect (express future actions)

I write I have written (Present Perfect)(Present Tense) I will write (Future Tense)

I will have written (Future Perfect Tense)Their auxiliary verb is in the present.

Past Tense has in opposition to it Past Perfect Tense (indicating a prior action) and Future in the PAST, Future Perfect in the Past which stand for future actions.

I spoke I had spoken(Past Perfect Tense)(Past Tense) I would speak (Future in the Past)

I would have spoken (Future Perfect in the Past) Being reported to the past, the auxiliary used for their

building is in the past. The great majority of the English verbs are regular

ones; they use a form - present infinitive -as background of the conjugation. It is known that this form is used for building the simple forms; the compound ones are build by means of the auxiliary verbs (will, would, to have to + past participle, to be + present/ past participle).

Here is the scheme of a simple conjugation, of a regular verb:

Active Voiceto workInfinitive Present to work

78

Perfect to have workedParticiple Present working Past worked Perfect having worked

Indicative Mood Present Tense Past Tense Present Perfect I work I worked I have worked he works he worked he has worked

Past Perfect Future Tense Future Perfect I had worked I will work I will have worked he had worked he will work he will have worked

Future in the Past Future Perfect in the Past I would work I would have worked he would work he would have worked

Subjunctive Mood Present Tense Perfect Tense I worked I had worked he worked he had worked

Conditional Mood Present Tense Perfect Tense I would work I would have worked he would work he would have worked

Imperative Moodwork

INDICATIVE Mood presents an action, condition or existence expressed by the verb as being real, sure. An import tense of it is PRESENT TENSE which indicates that the action of the verb is done in a present moment.

• She wants to buy a bookI think you might be right.(these two verbs indicate a temporary state)

79

The table below indicates the values of the today’s currency

The economists speak about increasing values of Euro. (the two verbs indicate a state that may persist for a longer time)

• to describe present habitual behaviorShe gets up at 7 o’clock in the morning.They have their coffee in the dining room every morning.Present tense is unmarked morphologically, except for the 3rd person singular which get the suffix (e)s.(sg.) I speak, you speak, he/she/it speaks(pl.) we speak, you speak, they speakThe 3rd person singular creates some problems of writing and spelling that are to be taken into account:• -s is pronounced /s/ after voiceless consonants

/z/ after voiced consonants to look - he looks /s/ to take - she takes /s/ to read - she reads /z/ to taxi - he taxis /z/

• verbs ended in silent –e preceded by the letters c, (d)g, s, z, pronounced /s/,/dg/,/j/,/s/,/z/ to face –she facesto rouge – he rougesto pledge – he pledgesto purse –he pursesto freeze she freezes• verbs ended in –s, -x, -z, -sh, -ch get the –es which is pronounced –izto dress – she dressesto mix he mixesto blitz – he blitzesto fizz he fizzesto push she pushesto reach he reaches• verbs ended in –y keep it if a vowel is preceding it, but changes it into –ie if a consonant is there

80

to pay – he pays to play – she plays to cry – she cries to try - he tries

• verbs ended in o preceded by a consonant get an –es to do – he does to go – she goes and add only –s when preceded by a vowel to haloo – he haloos to radio – he radios In interrogative and negative, most of the verbs need an auxiliary verb, that is TO DO which is conjugated in the present and the proper verb is in the short infinitive:I go; Do I go? I do not go.She speaks; Does she speak? She does not speak. We work. Do we work? We don’t work.Exception to this rule is for the modal verbs, to BE, to HAVE:I can speak German. Can I speak German? I can’t speak German.She must learn well. Must she learn well? No, she must not learn well.We are in the garden Are we in the garden,. We are not in the garden.They have a new house. Have they a new house? They have not a new house. When is the Present tense used? Present Indicative is used for expressing both present time and past or future time depending on context. When rendering a present time, the Present tense expresses:

• a general or universal truth:The sun rises in the east and sets in the westWater boils at 100 degrees Celsius.Two and two makes four.A friend in need is a friend indeed.

• an action or state that characterizes the subject:81

He is a good speaker of English.They like going to the theatre.She cannot speak German.

• an action or a state that represents a habit or is repeated; adverbs are placed by them (always, everyday, ever, often, usually…)She always crosses the street there.We usually work in the morning She often sleeps in that hotel. They study a lot.

• an action or state that takes place in the moment of speech; it exists but is not going on then:She says lots of things. Is she tired?Mary has left hands so she does not work very quickly.

• an action or a state, in the moment of speech but has no continuous form:I see what you mean.She remembers the story I told her long ago.We are happy that she is here with us.

• introduces a quotation in a direct/ indirect way; the verb has a momentaneous character and does not express an action that is going on:She says the pupil is diligent boy.Peter tells us his story.

• is used in stage directions:There is a table there and Bob goes towards it.Ben comes in, sits down, takes the newspaper and reads it.

When rendering a past action:• it gives more vividness to the text, is called Historic

Present:Meg is in the sitting room, and I come in and talk to her for a while but she seems not to listen to me and I am worried.

• some verbs such as : to forget, to hear (find out), to understand, to be hold are used in the present tense instead of present perfect:I forget what day it was.(Am uitat ce zi era.)

82

I am told he is very busy.(Mi s-a spus ca e foarte ocupat)

When rendering a future action:• it expresses a future expected or planned action:

School begins in September.The exam is on 21 May.

• it is used in subordinate clauses, when the main clauses indicate future actions , the two being simultaneous:I will go to the seaside when she is there too

We will buy the house when we get enough money.

PAST TENSE

Past tense, Indicative mood has one single form for all the persons, exception is the verb TO BE and the irregular verbs. The suffix -ed is added to the short infinitive of the verb which is conjugated.

to work (sg.) I worked, you worked, he worked (pl.) we worked, you worked, they

workedThe verb TO BE has two different forms for the

singular persons:to be I was; you were; he, she, it was

The irregular verbs have very different forms for their Past tense:

to write, wrote; to read, read; to speak, spoke; to eat, eaten; to drink, drank to put, put, to cut, cut; to bring, brought Speaking about orthography, one has to take into

account some rules such as:• verbs ended in a consonant preceded by a

single stressed vowel, double the consonant before ed suffix:to rub- rubbed; to knit-knittedto prefer –preferredto regret - regrettedIn all the other cases, the final consonant is not doubled:

83

to seat – seated; to hang-hanged;to order – ordered; to pardon –pardonedException is to worship – worshippedCompound verbs, ended in –p obey the above mentioned rule, applied to the final word:to sideslip – sideslippedto kidnap- kidnapped

• final l is always doubled, no matter where the accent is placedto equal – equaledto rival – rivaledto compel – compelledException to the rule is: unparalleled

• ic is changed into -ickto mimic – mimickedto traffic –trafficked • -y, in a final position is turned into –i if preceded by a consonant: to cry – criedto try - tried when a vowel is before it, it suffers no change:to play – playedto disobey – disobeyed

• silent –e is dropped in front of –ed to dance – danced to dye –dyedPast Tense Indicative expresses a past action or a state completely finished, done in a determined past moment or in a determined past period of time. In all the cases, the action or state the tense makes reference to, is completely separated from the present through an interval of time. Because of its meaning, this tense is used for narration. The time used for expressing the action may be rendered in the following ways:

• adverb of time or adjective like :yesterday; two days/a week/ a month/ a year ago; last week/ month/year; then; when or any adverb that indicates

84

the time in the past: as soon as; at that time; just now; the day before; the other day;I was there yesterday.We saw him ten minutes ago.They asked for my help the day before.As a boy, I used to play football.• verb in the past:She was playing in the garden, when we arrived.Hardly did we arrive at home, when she rang at the door.

• the context when it expresses the speaker’s intention Did they work in the garden? Was she on duty yesterday? A new film was presented on the screen. Where did they go?Past tense Indicative may be used for replacing:

• Past Perfect TenseThey thought that they discovered(= had

discovered) a new fairy land.(Credeau ca descoperisera o noua tara de basm)

• according to the sequence of tenses rules, it stands for a present tense, when the verb in the main clause is in the past: He said that the book was on the table.(A spus ca cartea este pe masa.)He asked me how we were.(Ne-a intrebat cum suntem).

• according to the same sequence of tenses, it is used for expressing a future action as opposed to the past action of the main clause:I was told to wait until Mary came there( Mi s-a spus sa astempt pana va veni Maria).Ben asked Bob to take care of his house until he was away(Ben i-a cerut lui Bob sa aiba grija de casa lui in timp ce era plecat.) Past tense Indicative is translated into Romanian by means of: perfectul simplu, perfectul compus si imperfectul. The first two tenses are used for expressing past events when the action expressed by the verb has a momentaneous character:

85

We went to the theatre last weekThey called Peter and told him the truth.The 3rd is used with verbs whose actions are lasting or repeated:She sat there waiting for her mother.They used the books they found in the library.Taking into account the rules of sequence of tenses, Past tense Indicative may be translated by means of:

• mai mult ca perfectul for rendering actions that took place before a past action

• prezentul when the idea of present is rendered• viitorul when we speak about a future action as

opposed to a past oneI said that I would go in the mountains the coming week(First I told about the coming events, later, they will occur after the moment of speech.)

86

PRESENT PERFECT TENSE

Present Perfect Tense is a compound tense formed of two elements – Present tense of the auxiliary verb TO HAVE and Past Participle of the verb which is conjugated;I have told; you have spoken; he has worked; she has written; it has criedwe have walked; you have cut; they have understoodBeing a compound tense, its interrogative form is obtained by the inversion of subject and auxiliary and the negative one, by placing the negative form NOT between the two verb components:Have I told? Has she been? Have they worked? Have you heard?I have not told; she has not been; they have not worked; you have not heard Present Perfect Tense expresses a past action or state that takes place before the present unit of time but very close to it and sometimes it is translated with prezentul.It is used in three main situations indicating:

• an action finished before a present one:In the mornings, after he has finished reading the newspapers, he drinks cup of tea.When he has watered the flowers, he likes watching them.

• the result of an action done in the past, no one is interested in the moment of its doing, that has effects in the presentWho has broken the flower vase?What have you brought here?Why have you opened the window?I have seen a beautiful landscape?

• an action or state, begun in the past that still goes on up/ during the present moment; it may go on during present unit of time and continue in the future

- no indication is given about the unit time length but it is supposed that it is up to the present moment:The pop concert has begun.

87

She has visited all the museums of the town.The adverbs ever, never stress the idea:Have you ever been to the zoo?I have never traveled abroad.

- the length of the action expressed by the verb is indicated by adverbs whose meaning is connected to the present: just; lately; of late; recently; during the … days/weeks/ months/ years; this last year; these .. minutes/hours/days/ We have just arrived.They have spent their vacation during these last two years in the mountains.

- length of the action, expressed by a verb, is preceded by for and followed by an adverb:They have lived here for ten years.I haven’t seen you for ages.How long have you been with us?They have graduated for two years.

- the beginning of an action mentioned by the verb is expressed by adverb beginning with since: since 19..; since Monday; since 20th June; or from that day; from childhood I have learned English since I was ten. We have lived in this house since October 1997. From that day, we have never heard about him.

- the beginning of the unit of time the action of the verb takes place in, is expressed by a Past tense:Ben has been my friend ever since I was born. Bob came here as a child and has been with us ever since.

- the unit of time the action takes place in is indicated by another verb at Present Perfect tense and indicates a parallel action:He has not stopped writing since he has sat down on that chair. She has never disappointed me since I have met her.

There is another form of the Present Perfect Tense, 88

Present Perfect Continuous which can be used with durative verbs and stresses the idea of continuity or duration of an action finished in the present or near past.Peter has been teaching for two years.( he is still doing it in this very moment) They have been waiting for the exam results. It also expresses a continuation of the action in the present moment maybe in the future, as opposed to the Present Perfect Tense that indicates an ended action in the present. I have been eating your cakes waiting for you.( not all the cakes are eaten, there still left) I have eaten your cakes waiting for you.( nothing is left) Present Perfect Continuous may indicate repeated actions:They have been meeting each Saturday for years.I have been stopping each passer by to tell the great news. A comparison of the already described tenses is necessary to see the difference between them:Peter has written a novel.(nobody is interested when this action happened, important is the result)Peter wrote a novel last winter.(the unit of time is mentioned, it is last winter)Peter has written a novel this year.(the action is begun and ended this year).Peter has been writing a novel this year.(the action is begun, not ended yet, it still goes on)

PAST PERFECT TENSE

Past Perfect tense is a compound tense of the past, formed of two elements: Past tense of the auxiliary verb TO HAVE and Past Participle form of the verb which is conjugated.

I had written; you had worked; he had eaten; she 89

had cut; it had criedwe had translated; you had put; they had understood

Being a compound tense, its interrogative form is built by placing the subject between the two verbs:Had I written? Had you worked? Had he eaten? Had she cut? Had it cried?Had we translated? Had you put? Had they understood?and the negative form consists of introducing the negative word NO between the two verb components:I had not written; you had not worked; he had not eaten; she had not cut; it had not criedwe had not translated; you had not put; they had not understood The English Past Perfect tense has an equivalent in Romanian, in mai mult ca perfectul and expresses a past action or state ended before another past action; it may be translated into Romanian by mai mult ca perfectul, perfectul simplu, perfectul compus:I knew Peter but I had not met him since my graduation. When they had said good bye, they walked on . Past Perfect tense is used in the following cases:

(A) it indicates that an action begun before a certain past moment, rendered by Past tense Indicative, lasts a time period up to that moment, and it is translated by imperfect:He said that he had worked there for two weeks.

(B) it replaces Perfect Future tense in a subordinate clause and is translated by viitorul anterior:The teacher promised he would bring the papers when he had corrected them.

(C) it is used with the adverbs just, yet I had just written the letter when she entered the room.Nick told me that he had not cut the flowers yet.

90

In Indirect Speech, Past Perfect tense replaces Present Perfect tense and Past tense of the Direct Speech when the main clause verb is in the past:Direct SpeechHe said: ”I have written the homework”. “She told me the truth”Indirect Speech:He said that he had written the homework.He said that she had told him the truth. Past Perfect tense may be replaced by Past tense in subordinate clauses introduced by before or in subordinate clauses which show anteriority :I carried the box with the shoes she had bought/ bought me. The bus left/ had left before we arrived in the station.

FUTURE TENSE

Future tense presents an action or a state that will take place after the moment of speech:I know he will help you.She tells me she will come in time. It is formed of the auxiliary verb will and the short Infinitive of the verb which is conjugated.I will go; you will come; she will translate; he will work;it will playwe will cut; you will eat; they will understandBeing a compound tense, the interrogative form is built by placing the subject between the two verb components:Will I go? Will you come? Will she translate? Will he work? Will it play?Will we cut? Will you eat? Will they understand?and the negative one, by introducing the negative word NO between the two verbs:I will not go; you will not come; he will not work; she will not translate; it will not playwe will not cut; you will not eat; they will not

91

understand It is used for expressing:

(D) a future action or state towards a present moment:I will work on Saturday.They will come here next week.

(E) probability of an action or state in the present or in the past:That will be Saint Paul’s cathedral, please stop!If any of you has eaten the cakes, that will be Peter!

Exercises with the English Verb

I Supply the suitable question tags for the following sentences:1. You look horrible in these shorts, ____ ?2. He knows where she lives, __ ? 3. She never drinks wine , __ ? 4. My boss plays tennis very well, __ ?5. They usually have lunch at one o'clock,____?6. He doesn't hire foreigners, __ ?7. I think I'm the right person for this job,8. This book belongs to you, __ ?9. You realize how much it costs, __ ?10.It seems to me he isn't very rich, __ ?11.I'm sure you know who sings that song,12.You're not a certified accountant , __ ?13.They hardly ever talk to strangers, __14.She thinks we are very rude, __ ?15.The police never catch any thieves, __16.They say she wears a wig, __ ?17.Inflation appears to be rising again, __18.We still have a lot of time, __ ?19.He has to work rather hard, __ ?20.You must think I'm a fool, __ ?

Il,Write questions to the following statements:1 . The Browns usually have breakfast at 7 a.m.

What time .....?

92

2. She visits her sister’s family at least twice a week. How often. . . . .?

3. They live together because she loves him. Why.....?

4. He sells second-hand computers and hi-fi equipment.What.....?

5. We normally spend our weekends in the mountains Where.....?

6. He earns his living by playing the violin in the town square. .How.....?

7. We want to settle down in Canada. Where.....?8. His mother still washes his shirts.

Who .....?9. This bottle contains some kind of beverage..

What.....?

III. Use the Present Continuous where possible and translatre :1. He teaches English and German2. Do you watch satellite television?3. The porters carry heavy bags.4. The gardener mows the grass.5. She agrees with you.6. Do you recognize that man?7. Do you believe in reincarnation?8. Why do we always hurry to work?9. He dances very well.

10. They only shoot birds.11. I hate this meat . It smells.12. I'm afraid the child lies.13. Why do you drive so fast?14. That music sounds good to me.15. I suppose she wants a new opportunity .16. My husband prefers to live in the country..17. Our aunt bakes delicious cookies.18. We have lunch at two o'clock.19. The boys are very quiet. I wonder what's wrong.

93

20. I think you remember them very well.

, '

IV. Write questions to the following statements:1. Mary is coming to see us on Sunday.

a. When.....? b. Who.....? 2. The boys are bringing some wine and cookies.

a. What.....? b. Who.....? 3. I think the Vienna orchestra is playing Mozart now. "

a. What.....?b. Which.....? 4. I'm meeting the new sales manager at the 10 o’clock meeting.

a. Where.....? b. What time.....? 5. The players are moving slowly today because of the heat

a. Why.....?b. How.....?

THE PRESENT PERFECT TENSE

V .Make dialogues as in the following example :Can you play tennis ?

Yes, I suppose I can, but I haven't played it for years.1. major Smith / fly a helicopter / he came back from Iraq 2. you /ride a bike/ 10 years old 3. your daughter / play the piano / five years4. John / take a good picture / he bought a Polaroid camera5. your husband / mend a fuse / you moved to this house6. you / kill a turkey / last Thanksgiving .7. they / speak English / they left America8. you / ride a horse / years9. your cousin / sleep in the tent / he graduated from the university

10. Denise / ski / moved to Florida 11. Pete / paint a portrait / his college days 12. his grandfather / speak Arabic / the last war13. his wife / prepared good traditional dishes / as long as I can remember

94

14. your American friend / shoot an elephant / he returned from Africa15. he / design a country cottage / his first skyscraper was built16. I /drive a big lorry / I left the army17. she / bake a sponge cake / twenty years18. Jack / wash the dishes / he got married19. you /row a boat / ages 20. you / dive / many years

VI. Put the verbs in brackets into the Present Perfect Tense 1. You ever (eat) a sushi ?2. Where you (be)? 3. I never (speak) to him since we were in highschool.4. You ever (ride) a pony ?5. How long you (know) your employer ? 6. The concert just (begin).7. We (miss) the last tram. What shall we do ?8. How much money you (spend) so far? 9. The doctor (phone) yet?

10. The little boy is weeping. His father just (beat) him again.11. It (not rain) here since last August .12. Why you (not bring) your girlfriend with you? 13. I (study) your plan carefully and I think it's rather unrealistic..14. My dog never (bite) anyone.15. Come to my office when you (finish ) your project.16. People always (admire) her talent. 17. Now that you (leave) school you should find a good job.18. She never (work ) an hour in her life.19. You (read) any poetry recently?

THE PAST TENSE

VII Turn the following sentences into the Past Tense Simple 1.. They live next door to my parents. 2. She works from 5 p. m. till midnight.3. He studies linguistics. 4. We never go to school on Sundays;5. They only play classical music

95

6. I feel embarrassed..7. Do they live in Romania ? 8. Who sings that song ?9. He knows I work for your company.

.10. I think she's wrong. 1 1 . Ralph never wakes up before 8 o' clock.12. The children kept asking me silly questions.13. He never eats in the morning.VIII. Put the verb in brackets into the Simple Past Tense 1. The shirt (cost) $35. 2. I (buy) it yesterday.3. The shop assistant (say) it (be) reduced.4. I (pay) in cash. .5. She (wrap) it for me and (put) it in a bag6. I (pass) several shops on my way home? 7. I (see) the same shirt everywhere.8. They (be) $25.9. I (hear) a strange noise last night

10. I (wake) up and (get) out of bed.11. I (light) a candle and (walk) downstairs. 12. I (take) a big knife from the kitchen and I (open) the front door. 13. When I (look) outside I (see) a guy dressed in pajamas.14. He (have) a big knife and a candle in his hand.15. When he (see) me he (start) to scream.16. They (build) this house 70 years ago.17. The first owner (die) in 1945.18. She (leave) a large fortune to her grandsonIX. Ask questions about the underlined parts of the following sentences:

1. The Defense Minister entered the room at 12 o'clock.2. I found these cheap shoes in a little shop in this village3. We heard an explosion. 4. They chose 25 girls for the beauty contest.5. We travelled by plane6. She sent postcards to her friends in South Africa . 7. We generally slept only 5 hours a day during the holiday

96

8. She didn't come to the party because she was ill. 9. I went to the disco with my girlfriend Jane.

10. She taught English to foreign students.11. This T-shirt cost $4.5012. He drove at 100 mph. 13. Mother said "No”14. We lost our way because it was dark.15. Sam bought these trousers on the market.16. Sergeant Briggs stood near the president17. The cook used six eggs for the cake yesterday.18. My brother showed me this trick.19. I began my work in this bank ten years ago.20. I liked his second novel best.

X.. Answer the following questions:1. When did you start to learn English?2. How much did you pay for your shoes?3. How did you spend last summer?4. What time did you get up this morning?5. When did you last read the local newspaper ?

XI. Put the verbs into the Past Tense Simple or Past Tense Continuous:

1. The ship (approach) the harbour when the storm (begin)2. The bomb (go) off when the politician (give) a speech.3. He (not hear) the bell because the radio (play). 4. When I (get) home everybody (sleep).5. The plane (catch) fire when it (take) off.6. Whenever I (come) to see them they always (quarrel). 7. Tim (crash) into a street light because he (drive) too fast.8. Cindy (lay) the table while her husband (dry) the glasses. 9. She (cook ) dinner when the telephone (ring).

10. He (peep) through the keyhole when the door suddenly (open). 11. Father (shave) and (sing) a silly song at the same time. 12. What you (do) last night between 8 o'clock and midnight? 13. The teacher (write) something on the blackboard while the

children (throw) paper balls at one another.14. She (break) down when she (hear) the news.

97

15. I (think) about their proposal all night but I (not make) any decision.16. I (see) that famous actress in the theatre last night. She (sit) in the first row.17. We (fly) over the city center when the engine (stall). 18. They (work) very hard when the auditor (enter).19. The tyre (blow) up when she (drive) on a crowded highway20. She (take) a shower when the snake (creep) into the bathroom.

XII. Fill in the sentences with the missing parts according to the example below :

I..... when the telephone rang, (newspaper) I was reading a newspaper when the telephone rang.

1. Jane ..... when the gas stove exploded, (dinner)2. The old housekeeper ... .while the kitten was playing with yarn, (sweater)3. The nurse..... when the needle broke, (injection) 4. The boys ..... when it started to rain, (a dog)5. Jill..... when she injured her wrist, (tennis)

6. Philip .. when he swallowed some toothpaste, (teeth) 7. They ..... when a bear attacked them, (herbs) 8. The mountaineer ..... when the rope snapped. (Mount Ben Nevis )9. The secretary ..... when the boss called her on the intercom, (letters)10. The robbers ..... when the alarm went off. (safe)11. We ..... when the war began. (Berlin)12. Professor Taylor ..... when the students' riot began, (lecture)13. The reporter ..... when the police put him under arrest, (pictures)14. The lumbermen ..... when the accident happened, (tree)15. The sergeant while the soldiers were carrying them out. (orders)

XIII. Put the verbs in parentheses into the Simple Past or the Past Perfect : 1. When we (reach) the airport, we (find) that the flight (cancel).

98

2. She (tell) me that she only once (see) a kangaroo in her life. 3. When the police (enter) the bank the robbers already (leave)4. He (wonder) where he (put) his glasses.5. You really (think) that I (do) that?6. By the time the ambulance (arrive) the wounded boy (die).7. When I (get) on the train I (realize) that I (forget) my ticket .8. They (bring) in a patient who (drink) some poison. 9. When I (see) you at the conference I (be) sure that we (meet) before.

10. They (have) no money because they (spend) everything on souvenirs in the airport.11. Before he (join) the army he (work) already for the CIA and the FBI.12. He (feel) awful in the morning because he (drink) too much that night.13. Jackson (not be) afraid of Banks because he (beat) him twice before.14. They (sell) two million copies of the novel before they (decide) to translate it into German as well.15. He (not understand) a word until they (bring) an interpreter. .16. She (know) about the accident because someone from the office (telephone) her before I (arrive).

17. She (watch) the film with interest because she (read) the book.

j18. When he (see) some blood on the stairs he (come) to the conclusion that the murderer (climb) onto the roof. 19. They (discover) a sack of gold jewelry which the previous owners apparently (hide) in the garden. 20. She (keep) looking at the boy wondering where she (see) him before.

WAYS OF EXPRESSING FUTURE

XIV. Put the verbs in parentheses into the most suitable future for ( Infinitive, Present Continuous, or the be going to form):

1. Why are you putting on your overalls? Because I (fix) the car.

99

2. I have no idea how to use the new dishwasher.Don't worry. I (come) round in the evening and show you if you want .

3. Where are you taking the children, Sandy? We (play) baseball.

4. The phone's ringing. 5. Can I offer you something to drink?Yes, I (have) a Martini, please. 6. If you want me to talk to the boss, say so and I (talk) to him. No, you go back to work and I (handle) it myself.7. I'm tired of hamburgers and chips. I (cook) something special ten8. I've got my visa and my return ticket. I (leave) tomorrow.9. This suitcase is too heavy for me to carry. You (give) me a hand?10. We (not go) away for the weekend. We're expecting visitorsCanada.11. These plastic dolls you're making are rather nice. The question is, who (want) to buy them? I'm sure they (buy) them. One dollar isn't much, is it? 12. Where's uncle Sam?I think you (find) him in the garden.13. You (go) to the cinema tonight?

;jNo, Tom (take) me to the opera this time. We (see) "La Traviata.14. These pineapples are fresh from Kenya, Mr. Smith ." In that case I (take) two, please. 15. I must leave you for a moment. I (be) right back.

100

THE MODAL VERBS

Can I. Ask permission to:

1. turn down the radio2. ring somebody up3. take a photograph of somebody 4. leave the window open5. have a tea break6. give somebody a lift 7. take somebody for a drive 8. use somebody's lighter 9. borrow somebody's newspaper

10. use somebody's telephone11. have an interview on Monday12. get something to drink 13. have an early breakfast14. do the washing tomorrow15. try these shoes on t

II. Give or don't give permission to: 1. change the time of the meeting 2. take somebody on a sightseeing tour3. have a party on Saturday4. show the letter to the police 5. take the book back to the library6. record the conversation7. marry anyone you want8. give up the job ,9. paint the bathroom black

10. have lunch earlier than usual11. miss one lesson12. buy an electric typewriter13. take the children to the beach14. sell the old bicycle15. have a nap after dinner

101

May III. Ask someone to let you :1. borrow his pen2. use your computer 3. park your car in front of his house4. ask a personal question5. take his daughter to a disco6. read his newspaper7. turn down the radio a little8. help him carry his luggage9. accompany him to the station

IV. Allow someone :2. have something to eat 3. stay at your place for a couple of weeks 4. organize a party at the office 5. keep your book for another week6. attend the meeting7. have cornflakes for breakfast8. miss the next lesson 9. camp on the beach

10. invite everyone to barbecue

Must

V Give answers using must/ have to / have got to:1. When are you going to write your exercises?2. When are they going to give us an answer?3. When is she going to see a doctor?4. When are you going to return the books to the library?5. When are they going to study our report?6. When is he going to sell his old car?7. When are you going to give up smoking?8. When are we going to invite Roger to lunch?9. When are they going to call a meeting?

10. When is he going to apply for a visa?11. When are you going to renew your driving license?

102

12. When is she going to tell her boss she is leaving? 13. When are they going to reply to our request?14. When are you going to make arrangements for the trip?15. When is he going to look through the papers? 16. When are we going to send out invitations?17. When are you going to wash up the dishes? 18. When is she going to tidy her room?19. When are they going to take us to the manager?20. When are you going to repair your car?

VI. Ask questions using either when or why1. The new employee must see the boss. 2. She has to pay the gas bill. 3. They have to reconsider their decision4. She has to apologize to the director.5. The tenants must leave their flat at once.6. He had to attend the meeting.7. They'll have to accept our suggestion.8. The final decision will have to be made soon.

-,».•• ,..a9. They have to file in a complaint.

i ,^:*10. The books will have to be bought very soon.

r i ^11. She must change her attitude.12. You must boil the water before you drink it. 13. He must accept their invitation to dinner. 14. You have to inform the police.

-* ^15. He will have to do military training.16. The conference has to be organized by our company side.

VIIUse the form must have + Past Participle: 1. She looks very happy. She (get) good news.2. They know London very well, they (live) there for a long

103

time. 3. The car is out of order. He (drive) it too fast again.4. This essay is written very well. Someone (help) Sue to write it5. I can't find my key. Your husband (take) it by mistake. 6. We went to Spain for our holidays. You (see) a lot of

interesting things.7. You are wearing a wonderful brooch . It (cost) you a fortune.8. I remember his face very well. You (meet) him at the

students’ meeting last week? 9. She spent more than a fortnight in hospital. She (have) an operation.

10. His car is German. He (buy) it when he was studying in Germany.11. Her French is excellent. She (be) to France several times.12. They stayed in Bucharest during the war. They (hear) about your relatives..13. I telephoned the Smiths several times but there was no reply.

They (leave) for their holidays.

14. There are no cakes left. The guests (eat) them all.15. The clock has stopped. I (forget) to wind it.16. They promised to be here on time. They (miss) their train.17. Jack is angry with us. He (hear) our conversation. 18. I don't know where my mobile phone is. I (leave) it at the bank.19. She waited for John all the evening but he didn't turn up. She

(be disappointed). She needed his help so badly.20. I've got a lot of money. I can lend you as much as you need. Really? You (win) it in a lottery, didn't you?

Should

VII Use the form must have + Past Participle: 1. She looks very happy. She (get) good news.2. They know London very well, they (live) there for a long time. 3. The car is out of order. He (drive) it too fast again.4. This essay is written very well. Someone (help) Mary to write it

104

5. I can't find my key. My husband (take) it by mistake. 6. We went to Spain for our holidays. You (see) a lot of

interesting things.7. You are wearing a wonderful necklace. It (cost) you a fortune.8. I remember his face very well. You (meet) him at the

reception last Sunday. ? 9. She spent more than a month in hospital. She (have) an operation.

10. His car is German. He (buy) it when he was studying in Germany.11. Her French is excellent. She (be) to France several times.12. They stayed in Bucharest during the war. They (hear) about Antonescu.13. I telephoned the Smiths several times but there was no reply.

They (leave) for their holidays.

14. There are no cakes left. The children (eat) them all.15. The clock has stopped. I (forget) to wind it.16. They promised to be here on time. They (miss) their train.17. Tom is angry with us. He (hear) our conversation. 18. I don't know where my umbrella is. I (leave) it at the office.19. She waited for John all the evening but he didn't turn up. She

(be disappointed). She needed his help so badly.20. I've got a lot of money. I can lend you as much as you need. Really? You (win) it in a lottery, didn't you?VIII. Give answers as in the example: Example: I only told Jane You shouldn't have told anyone

1. I only paid the phone bill. 2. He only invited his family ! 3. They only discussed it with Mary! 4. She only spoke to her sister! 5. I only rang up Margaret! 6. She only gave the ticket to Jack !7. I only apologized to Mrs. Brown ! 8. We only thanked your uncle! 9. She only argued with Tim!

10. He only proposed to Jane.

105

11. They only fired one employee! 12. I only woke the doorman !13. She only showed it to me!14. I only lent the money to Pete ! 15. They only dismissed Frank!IX. Express your surprise, as in the example:Example: You didn't read the instructions! No, should I have read them?

1. You didn't attend the course this week! 2. You didn't give any tip to the bellboy!3. You didn't take her out to visit the city!4. You didn't send for help! 5. You didn't write down his phone number! 6. You didn't meet us at the railway station !7. You didn't look up the time of your train8. You didn't look over what you've written! 9. You didn’t keep your word !

10. You didn't clean up the mess in your room!11. You didn't call in a plumber!12. You didn't apologize for coming late! 13. You didn't tell him about the auction!14. You didn't give me a lift!15. You didn't lock up the documents!

Used to

X. Give replies employing used to each time:Examples: a) Did Tom go to school on foot?

Yes, he used to go to school on foot. b) How did Tom go to school? He used to go to school on foot

'

1. Did Tom go to college? 2. Did he like to play tennis as a boy?3. Who took you for walks when he was little? 4. Did he wear a uniform when he was at school?5. What did he have for breakfast when he was on holidays?6. How many lessons did he have e ach day when he was at

106

school?7. Who helped him with his homework?8. What did he enjoy doing when he was a student?9. Did he read many books during high school ?

10. What was he good at?

107

The Passive Voice

I. Change the following sentences into the Passive Voice:1. They are building a new office building here.2. They didn't inform us about the change of plans.3. She looks after the children very well.4. People must wear ties in this club.5. They make a new film every year in this studio.6. He didn't introduce me to his wife. 7. They will meet you at the annual meeting. 8. You may not use dictionaries during this examination.9. A big lorry knocked him down last Monday.

10. They are renovating our university at the moment. 11. Everyone knows these figures very well.12. They will introduce some new subjects into the syllabus this year13. The terrorists blew up the railroad tracks.14. They showed her into the new conference hall. 15. Has the mechanic fixed the car yet?16. They make these briefcases of leather. 17. A bee stung my daughter this morning. 18. Why didn't they repair the road?19. They don't admit children under sixteen in this club. 20. They locked the door and no one can open it now.

II. Change the sentences into passive ones with the underlined word as a subject of the sentence.1. Somebody will tell you how to get there.2. Burglars broke into our summer house. 3. They gave him a computer for his fifth birthday.

^ ,„4. They have promised me a raise. 5. They will teach you two foreign languages in this college.6. Smoke filled the auditorium.7. They offered her a better position in a subsidiary of the company.8. Someone is following us.9. They will send you an application form.

108

10. They asked her very personal questions at the interview.11. The doctors prescribed him some tranquillizers.12. They always laugh at this boy.13. Someone handed him a thick file.

'14. They ought to pay you more for your work.15. One of the nurses gave me an injection.16. They denied him admittance to the restaurant as he was too young.17. They have offered us excellent conditions in this resort.18. They sent for a doctor immediately.19. The government has granted political autonomy to several provinces.20. They showed the boy some tricks.

Conditional Clauses

I. Put the verbs in the parentheses in the suitable tense:

1. If she had taken my advice she (not lie) in bed now.2. We (arrive) on time if we hadn't lost our way. 3. He ordered the soldiers to fire at the crowd. A true patriot (not do ) it.4. I (come) by bus if it hadn't been so late.5. If we had invested in that company we (make) a lot of money.6. The ovation wasn't too loud. If you had told us they were making a film during the show, we (clap) our hands much more vigorously 7. We hoped the wind (stop) soon.

,8. If the wind hadn't stopped, our boat (strike) the rocks near the shore.9. If I had arrived five minutes earlier I (get) a free ticket.10. If you had come here three days ago you (see) the flowers in full bloom. 11. He (not suffer) from arthritis now if he had listened to hisgrandmother.12. I (bring) you some more strawberries if I had known you liked

109

them.13. Had I known the microphone was broken, I (speak) much louder14. If you had watered these trees regularly last spring they (be) 15. If they had invited you last Saturday, you (accept)?

,16. If he hadn't died last year, he (live) here for 90 years. 17. We (ski) in Chamonix today if we had bought that package vacation.18. The child (not burn) himself if you hadn't left the iron on the table.19. He is absolutely convinced that his programme (succeed).20. She deserved a better treatment. You (not scold) her like that.

ADVERB

The adverb is that part of speech that characterizes a verb, an adjective or another adverb: We play volleyball this afternoon. (verb) Mary’s marks are highly satisfactory. (adj) They speak English very well. (adv) An adverb may determine:

• a noun or a pronoun:Only Peter can tell you the truth. (noun)Practically everyone knew that story.(indefinite pronoun)

• a Participle or GerundMary told them the story in well chosen words.

• an InfinitiveShe wanted to begin immediately.

• a sentence or a part of sentencePerhaps I will be the winner.

The adverbs may be classified taking into account their form or meaning. Analyzing their forms, the adverbs may be:

• simple adverbs: late, now, fast, well, far

110

• derived adverbs formed of stem and affixes: along, asleep, between, • compound adverbs formed of two or more parts: always, yesterday, sometimes,• adverbial locutions are groups of words that get the value of adverbs:

after all, at first, at large, for long,Taking into account the meaning, the adverbs may be

grouped into:• adverbs of time: daily, yesterday, a month ago, first, never• adverbs of place: here, there, behind, nowhere• adverbs of manner: badly, easily, fast,• adverbs of cause: hence, for that reason, so that, that is why

Adverb formation

The derived adverbs are formed of different parts of speech such as:

• nouns: daily, bodily, away, across• pronouns: here, there, hence, behind• adjectives: aloud, below, behind, mostly• numerals: once, twice, firstly,• participle: brokenly, supposedly, admittedly

There are adverbs that are formed by adding an affix to the stem. The most frequently used suffix is –ly and it forms adverbs of mood and time: daily, weekly, yearly but there are situations when the –ly words are not adverbs; they are adjectives namely those which have a noun as stem: a daily newspaper, monthly accounts, a lonely road

Orthography rules The –ly suffix is added to the words without

modifying their form. BUT the following aspects are to be taken into account:

• adjectives ended in –e keep it before the suffix: complete- completely; pure-purely

111

• adjectives ended in –l preceded by a vowel, double the –l, the former being the final form of the adjective and the latter belong to the suffix:

equal- equally; general-generally• adjectives ended in –le preceded by a consonant lose this ending before the –ly suffix: probable-probably; simple-simply but when the vowel is before it, no modification appears: pale-palely; sole-solely• adjectives ended in –ue lose the final vowel before the –ly suffix: dull-dully; full-fully• -y is changed into –ie no matter which is the sound preceding the –ly suffix: due-duly; true-trully• adjectives ended in double –l lose one before the suffix dull-dully; full-fully• -y is changed into –i no matter which is the sound preceding the –ly suffix:day-daily; gay-gaily• adjectives ended in –ly cannot form adverbs by adding another suffix of the same structure because of the phonic reasons and they get another word: in a friendly way; at a timely moment

Adverbs may be built by adding suffixes and prefixes to the stem:a) suffixes:-long -ward -way -wise -ssidelong forward

ssideward lengthwis

eneeds

headlong

outwards

straightway

likewise nowadays

b) prefixes:-a be- to-again before todayaflame beyond together

The compound adverbs may be formed of different

112

parts of speech and the following combinations are to be taken into account:

• adjective + noun: meantime, next door, midway• adverb + noun: outside, oftentimes• preposition + noun: indeed, perhaps, beforehand• adjective + adverb: everywhere; somewhere• adverb + adverb: hereabouts; throughout• adverb + preposition: hereby, therefrom• preposition + adverb: within• adverb + preposition + adverb: heretofore

There are some special groups of adverbs; some of them have the same form as the adjectives and nouns:

Adjectives Adverbsan early train He arrives home early.

a fast train They walk fast.a long nose They stay long.

Some adjectives have two adverbial forms; one is identical with the adjective, the other one is formed of an adjective by adding the –ly suffix:

Adjective Adverb hard hard; hardly last last; lastly late late; lately

The simple form is used when the concrete meaning is meant, in compound words and in the comparative and superlative degree structures; the –ly form is used when the abstract meaning is meant.

To sit close to the door. (very near to the door)Close my skirt but closer my skin.

When there are no differences of meaning between these forms, the –ly adverbs are generally used: deeply interested; newly married; dearly beloved.There are some adverbs whose meanings are so different that the two words are completely different; the –ly forms are used with a figurative meaning and are not so close to the corresponding adjectives: He always plays fair.(corect)

113

He treated Mary fairly.(echitabil) His work is fairly good. (destul de) The following –ly adverbs have different meanings from the ones that have not this suffix: directly (imediat); lately (recent); fairly (destul de). The compound words use the simple adverb form: a quick growing plant; new laid eggs; a clear ringing voice.For a fluent speaking, the simple forms are used though their positive degree forms are ended in –ly:

You run quicker than I. We walk quickest from our house to school.

Exercises I. Answer the questions using a modal adverb:

Ex. a)"Mary is a conscientious worker." —> "I agree. She works (very) conscientiously"

b)"Your son has such good marks!" —» "I know. He's doing very well in school."

1. Michelle is such a slow typist! It takes her forever to type a page.2. I think this is a good strategy. It has worked in the past.3. Ann is such a wonderful dancer! You should go and see her in her latest show.4. Mary is a hard worker. She's a perfectionist, really.5. I appreciate your quick response to my query. , 6. The new director seems to be a responsible person. I like him.7. I'm afraid to get into the car with my boss. He's an incredibly bad driver!8. Jeff is a fast runner. I can never keep up with him.9. Cynthia is an intelligent manager. She's a problem solver.10. This particular anchor man is a fluent English speaker. He often interviews English speakers on TV.

II. Insert an adjective or an adverb: 1. Over 100 million Americans ride bicycles at least (occasional).2. Many (different) kinds of bicycles allow people of all ages to enjoy thissport.3. Tricycles allow (small) children to get around.4. (Large) tricycles, built like bicycles, enable (elderly) people to

114

ride (safe).5. As a sport, biking is an (enjoyable) form of exercise.6. (Technological) modern bicycles help riders move (fast) and (easy). 7. (Touring) bikes can travel (long) distances over (uneven) roads. 8. Motorcycles are (essential) motorized bicycles. 9. Policemen, too, like motorcycles because they can maneuver them (quick) and (easy). 10. A motorcycle is a (complete) different vehicle from a car, so motorcyclists have to pass a (driving) test in order to obtain a (special) motor cycle license. 11. In the event of an accident, (light) vehicles can be very (dangerous).12. In the rain they don't brake very (good) and (general) are not (visible) to other drivers. That's why bicyclists and motorcyclists have to drive (careful) at all times.

115

116

PART III

COMMERCIAL CORRESPONDENCE

Addressing envelopesThe envelope of a business letter should create a good

impression on the receiver, an impression of carefulness and good taste. Because good impression is extremely important in business, envelopes should be of high-quality paper. Their sizes varies according to the length of the letter as well as to the number of enclosures that are to be sent. The most useful color is white, because the contrast white-black allows a more comfortable reading.

The envelopes should be very tough if lots of papers are to be sent and very thin for the correspondence sent by air, not to weight too much. Envelope addressing should have some characteristics such as accuracy, clearness and good appearance. The inside address is copied correctly from the letter, including any "attention" or "confidential" indication. The address is typed in the lower part of the envelope towards the right (half way down and one-third in, from the left of the envelope).

The Secretary Percy Astins & Co. Ltd 18-22 King's Avenue Richmond Surrey

Ample space is given to stamps and postmarks, the post town is followed by the country name; the latter is omitted only if the name of the town is well known (e.g. Paris, London, Madrid, New York, etc.)

Parts of a LetterAny letter has some parts that are to be present no

matter how long or short the letter is. They are the following:• Heading - letter heading / letter head• Date

117

• Reference line• inside address (addressee's address)• Salutation• Subject line• Body of the letter• Complimentary close• Signature• Enclosures

Now let's take separately each part and present it with all its characteristics.

HeadlineIt should include the name of the company; field of

activity; address; POB; codes. All of them are arranged in a form established by the boss of the company. The British societies have in their names the words "Limited" or "Co. Ltd.". It means that the responsibilities of the society are limited. The American companies have the word "Incorporated" or for short "Inc.".

DateThe next element that appears on the letter is the date;

there are so many different ways of writing it such as: the 3rd of May, 3 May... The American variant looks like: May 3rd, 20.. while the British one is 3rd May 20.. .

But for avoiding any interpretation, the date is to be written keeping the following order: Day/Month/Year and this is typed in full. Example: "23 April 2008 ".

ReferencesThe references are groups of capital letters indicating

the first letters of the names of the persons who are in charge with the writing and typing of the letters. Example: Reference. AM/BB (i.e. Adams Mary/Brown Betty -the first person has written the letter while the second has typed it). The reference may contain some numbers which are the codes of a department that is in charge with the solving of a problem, such as -523/LO. When a letter exchange begins, the first letter that is sent contains: I

Our reference. AM/BB

118

If you get an answer to this letter, then on this one, there is a pair of Ireferences such as:

Our reference. JE/SH Your reference. AM/BBIt means that the receiver has its own reference (Our

reference. JE/SH) and the addressee's one is mentioned as your reference. AM/BB. The two couples of references indicate the two equivalents from the companies who are in charge with the solving of the problem. They are generally placed on the left side of the paper or in the middle but always on the same level.

Inside addressThe inside address is in fact the addressee's address. It

contains the full name of the person (no abbreviations are allowed, the name is written in the same way the person writes it, as you have seen it on the visit card or on another address), institution, street, town, country, if it is the case. The name is accompanied by Mr., Mrs., Miss., Prof., Dr. and function is sometimes placed; in that situation, it occupies the first place and then you avoid Mr. etc. It looks like:

General Manager Robert SmithDeputy Director George Brown without any formula

and commas. The American variant looks this:

Mr. Robert Brown, Managing Director

SalutationThe salutations or greeting formulas are written under the inner addressand depend on who are the persons you are addressing to. It is a matter of custom and a polite way of addressing to a known or unknown person. If you know the recipient's name (you have already mentioned it in theinside address) then you may begin your letter with:

Dear Mr. Courtland or Dear Mrs. JacksonIt is better than being too formal by using "Dear Sir"

or "Dear Madam". If the letter is addressed to a partnership (e.g. "Holmes and Hatton Co." or "Utility Furniture Co.") or if an attention line has been used, the more formal salutation "Dear Sirs" is used. If your letter is addressed to the head of a department or the head of an organization whose name is not known, then the

119

salutation "Dear Sir" or "Dear Madam" or "Dear Sir/Madam" would be used.

Complementary closeThe last part of a letter is the complementary close

which is a matter of custom and polite way of closing a letter. The expression used for the complementary close must match the salutation, as shown here. For

Dear Sirs Yours faithfullyDear Madam Yours faithfully

(formal)Dear Sir or Madam Yours faithfully

(formal)Dear Mr. X Yours sincerelyDear Jacqueline/ Dear Steven Yours sincerely

SignatureAfter leaving 4/5 blank lines for a signature, the name

of the sender should be shown, either with initial capitals or in upper case as preferred. The writer's designation or department should be shown immediately beneath the name, in the following examples, note that the title "Mr" is never shown when the writer is a man, but "Mrs" or "Miss" must always be added in brackets after a woman's name. Examples:

Yours faithfully/ Yours sincerelyKitty White (Miss)Chairman

Routine lettersEnquiries and RepliesAny commercial transaction begins with an enquiry -

i.e. a desire to buy goods (so you request for information); a company is in the market for some sort of goods and looks up the firm's addresses in a trade directory-Prospective suppliers have been recommended to it by other customers with whom you are acquainted or have heard of them from our foreign agencies or from commercial offices or from advertisements in newspapers, reviews, catalogues etc. So you are put in the situation to write for information about the goods you need. There are printed Enquiry Forms which are filled in when you require general or specific information. In a routine letter of enquiry you are obliged to

120

observe these rules:• state clearly what you really want, - general

information, a catalogue, price list, samples • if there is a limit to the price list at which you are

prepared to buy, do not mention this, otherwise the supplier will raise the quotation to the limit you mention

• most suppliers state their terms of payment when replying so there is no need for you to ask for them unless you are seeking special rates

• keep your enquiry brief and conciseEnquiries mean potential business so they must be

acknowledged promptly. There are general enquiries requesting for latest price lists, catalogues, samples, patterns, specimens. Suppliers receive routine requests for catalogues and price lists. Unless the writer requests information not already included, a written reply is often not necessary and a "With compliments' slip" may be sent instead. In following enquiries, the written replies are not necessary. The requested items may be sent under cover of a "With compliments' slip". Example:

Dear Sir (or Madam)Will you please send me a copy of your catalogue and

price list of portable disc players, together with copies of any descriptive leaflets that I could pass to prospective customers.

There are enquiries that suggest that large regular orders are possible, a "With compliments' slip" is not possible or it is not enough. In this situation, write a letter and take the opportunity to promote your products. a). Enquiry

Dear Sir/MadamI have a large hardware store in Southampton and am

interested in the electric heaters you are now advertising in the "West Gazette ", Please send me your illustrated catalogue and a price list.

Yours faithfully The reply of this letter should sounds like this:Dear Mr. JohnsonWe were pleased to receive your letter enquiring

about electric heaters and are pleased to enclose a copy of our latest illustrated catalogue. We feel that you may be particularly interested in our model, F heater, our newest model..(you may give more details concerning the model or you may

121

indicate the catalogue you are enclosing to offer the required information.)

Before starring a business with a company, you are interested to see some samples of goods, so this is an excellent occasion to write your partner:

We have received a number of enquiries for floor coverings suitable for use on the rough floors that seem to be a feature of the new building taking place here.

It would be helpful if you could send us samples showing your range of suitable coverings and, if one is available, a pattern-card of the designs in which they are supplied.

The letter gets an answer, so it says:Dear Mrs KingThank you for your enquiry for samples and the pattern-

card of our floor coverings. We have sent to you, by mail, a range of samples selected for their hard-wearing qualities, but regret we have no patterns we can send you.

For the purpose you mention, we recommend quality number 5, which is especially suitable for rough and uneven surfaces. We encourage you to test the samples provided. Once you have done this, if you feel it would help to discuss the matter, we will arrange for our technical representative to call you for an appointment. In the meantime, our price list is enclosed which also shows details of our conditions and terms of trading.

We hope these will satisfy your requirements. Yours sincerelyAll the letters that are making enquiries specify prices,

delivery details, terms of payment. Replying them, you have answered every query in the enquiry letter. You make an enquiry for office equipment:

We need a model suitable for sending diagrams and printed messages mostly within the UK.

Fax machines are the object of the demand. The reply letter announces you that:

All the models illustrated can be supplied from the stock at competitive prices, shown on the price list inside the catalogue.

The receiver is also invited to go to the show room to see the way the fax machines work. You may begin your letters by telling the supplier how the name has been obtained and about the circumstances that have given raise the enquiry:

122

Referring to your advertisement in the …of… , we would inquire whether you could supply us...

We are indebted for your address to … who has drawn our special attention to your China...

As we are in the market for chemical installations we should welcome your information...

Goods are described in details if the buyers are quite clear on the subject of their needs, detailed description minimizes the chance of receiving unsuitable goods. Sometimes buyers require catalogues; details are omitted till they have a clear idea of their needs. The next problem is the quotation of the price, the seller identifies the goods required: prospective buyer's interests are not likely to be prejudiced when the figures are obtained from the catalogue.

Your quotation should be c. if. London, early shipment is necessary and we should welcome an immediate quotation fob London.

Seller is requested to state the terms of payment, preference to insurance, transport, there is a natural question. Do the quoted prices include delivery or not? A reference to the General conditions of delivery should be attached to the enquiry.

What would be your earlier delivery date?Please say whether you could guarantee the shipment by...Size of orders may often be stressed by the customer to

obtain a more favorable quotation or reductions to be made for large orders.

We shall be in the position to give you substantial orders if your quotations are reasonable.

Letters are concluded with the hope that buyer will be able to place further orders as a result of the satisfaction with the goods supplied.

We look forward 10 placing our orders with you and trust that you will make every effort to satisfy our particular requirements.

Replies to enquiriesThey are the most important letters of sale type. Such

replies need to be polite, direct and prompt. The required information is given simply, clearly. This applies to food, staff, raw material correspondence concerning consumer goods. It is not

123

necessary to be detailed, all the details are contained in the catalogues, enclosures. All such types of letters begin with expressions of thanks for the enquiry and end with the assurance of interest in the addressee's requirements or expression of pleasure at entering into business relations with you.

EnquiryDear Mr. X,This is to inform you that we do a big business in

toys. Having been referred to you by our agent, Mr. X, we ask you to give us your lowest prices and best terms of your latest products. If possible, send us samples exactly representing the quality of your latest manufacture. We presume that you have the toys in stock, but if not, kindly inform us how long you would require completing a considerable order.

Reply to the enquiryDear Mr. Z,You wish to modernize your texture with the most up-

to-date upholstery system. That is clear because you asked for our catalogue, which was sent to you earlier in the month. The next step lies, of course, with you. You must have a demonstration of the upholstery system in your own theatre or see it in our show-rooms.

You could test for yourself the wonderful fabrics we are manufacturing by sending us a trial order.

You may be sure that whichever of our services you decide to use, you will receive our immediate and personal attention.

Quotations, estimates and tendersA quotation is a promise to supply goods on the

stated terms. The prospective buyer is under no obligation to buy the goods for which a quotation is requested and the supplier will not risk the reputation he has by quoting for goods they cannot or do not intend to supply. The quotation will include the following elements:

- an expression of thanks for the enquiry- details of prices, discounts and terms of

payment- clear indication of what the prices cover

124

(packing, carriage, etc.)

Orders and their fulfillment Printed order formsMost companies have official printed forms which

have the following advantages:• such forms are pre numbered and the reference to

them is very easy• printing headings ensure that no information will

be omitted• printed on the back of some forms are general

conditions under which orders are placed. Reference to these conditions must be made on the front, otherwise the supplier will not be legally bound to them.

Letter orderSmaller companies may not use printed forms but

instead place orders in the form of a letter. Sending an order by letter, accuracy and clarity must be ensured by including:

1) an accurate and full description of goods required2) catalogue numbers3) quantities4) prices5) delivery requirements (place, date, mode of

transport, whether the order will be carriage paid or carriage forward etc.)

6) terms of payment agreed in preliminary negotiations

Legal position of the partiesThe English, law says that the buyer's order is only an

offer to buy. The arrangement is not legally binding until the supplier has accepted the offer. After that, both parties are legally bound to honor their agreement.

7) buyer's obligationsWhen a binding agreement comes into force, the

buyer is required by law:• to accept the goods supplied, provided they

comply with the terms of the order• to pay for the goods as soon as possible (failure

to give prompt notice of faults to the supplier will be taken as

125

acceptance of the goods)8) supplier's obligations. The supplier is required by

law:• to deliver the goods exactly as ordered at the

agreed time• to guarantee the goods to be free from faults of

which the buyer could not be aware at the time of purchase. If the delivered goods are faulty, the buyer can demand either a reduction of price, a replacement of goods, or cancellation of the order. Damages may be claimed.

Routine ordersThey may be short and formal but must include essential

details describing the goods as well as delivery and terms of payment. Where two or more items are included in an order they should be listed separately for ease of reference. Confirmation of telephone order:

Dear Mr. X.Please accept confirmation of the order we placed with

you by phone this morning for the following: 3 "Excelda Studio" electronic typewriters each with 12 pitch daisy wheel

Price: £ 490 each, less 40% trade discount, carriage forward

These machines are urgently required and we understand that you are arranging for

immediate delivery from stock.Yours sincerelySometimes the orders may be presented in the form of tables.

Here is a kind of tabulated order: Dear Mr.B.Please accept our order for the following books on our

usual discount terms.

126

No. of copies title author price

40 Accounting Taylor $

9x40=360

50 Modern Business Brown $

5x50=250

We look forward to prompt delivery. Yours sincerely.

Covering letter with order formWhen a covering letter is sent with an order form, all

essential details will be shown on the form and any additional explanations are given in the covering letter.

We thank you for your quotation of 5 July and enclose our order number 237 for 4 of the items.

All these items are urgently required by our customer, so we hope you will send them immediately.

(Head of the letter) 1 July 2000

Order no 237Nylon Fabrics Ltd 18 Brazenose StreetManchester M608As

Please supply the following items

Quantity Items Catalogue no. Price

25 Bed sheets/ blue 75 $

7

An order should be acknowledged immediately if it cannot be fulfilled straight away. If goods cannot be supplied at all,

127

you should write explaining why you offer suitable substitutes if they are available. There is formal acknowledgement of routine orders.

Dear Mr.V.Thank you for your order no 217 for bed coverings. As

all items were in stock, they have been dispatched to you today by passenger train, carriage forward.

We hope you will find these goods satisfactory, and that we may have the pleasure of further orders from you.

Yours sincerelyFirst orders from new customers should be

acknowledged by a letter:Dear Mr. Z.

We were very pleased to receive your order of 18 June for cotton prints and welcome you as one of our customers.

We confirm supply of the prints at the prices stated in your letter and are arranging /or dispatch by our own delivery vehicles early next week. We feel confident that you will be completely satisfied with these goods and that you will find them of exceptional value for money. As you may not be aware of the wide range of goods we have available, we are enclosing a copy of our catalogue. We hope that our handling of your first order with us will lead to further business between us and mark the beginning of a happy working relationship.

When goods cannot be delivered immediately, a letter should apologize for the delay and give an explanation. Also state when delivery may be expected, if possible, and express the hope that the customer is not inconvenienced unduly.

Reason for delay: breakdown in production

Dear Mr. X.We thank you for your order of 15 May for electric

shavers, but regret that we cannot supply them immediately owing-to afire in our factory.

We are making every effort to resume production and fully expect to be able to deliver the shavers by the end of this month.

We apologize for the delay and trust it will not cause you serious inconvenience.

128

Yours sincerelyOther reasons for the delay may be stocks not

available, transport strikes etc. There may be times when a supplier will not accept a buyer's order:

• he is not satisfied with the buyer's terms and conditions

• the buyer's credit is suspect• the goods are not availableGreatest care should be taken when writing to reject an

order so that good will and future business are not affected.

Supplier refuses price reductionThere are situations when a supplier cannot grant a

request for a lower price, then the reasons should be given.Dear Mr.V.We have carefully considered our counter proposal of

15 August to our offer of woolen underwear, but very much regret that we cannot accept it. The prices quoted in our letter of 13 August leave us with only the smallest of margins and are in fact lower than those of our competitors for goods of similar quality. The wool used in the manufacturing of our THERMAUNE range undergoes a special patented process which prevents shrinkage and increases durability. The fact is that we are large suppliers of woolen underwear in this country and this is itself a good evidence of the good value of our products.

We hope you will give further information regarding this mailer, but if you then still feel you cannot accept our offer we hope it will not prevent you from approaching us on some future occasion. We shall always be happy to consider carefully any proposal likely to lead to business between us.

We can find some situations when delivery terms cannot be met, then the supplier should show a desire to help customers in difficulty. In this letter the suggestion that the customer should try another supplier who is named, is bound to be appreciated and will help to build goodwill.

129

Dear Mr. Johnson YOUR ORDER NUMBER R 2514We were pleased to receive your order of 2 November

for 6 TV sets. Since you state the firm condition of delivery before Christmas, we deeply regret that we cannot supply you on this occasion. The manufacturers of these goods are finding it impossible to meet current demand for this popular television set. We placed an order for 24 sets one month ago, but were informed that all orders were being met in strict rotation. Our own order will not be met before the end of January. I understand from our telephone conversation this morning that your customers are willing to consider other makes. In the circumstances I hope you will be able to meet your requirements from some other source. May 1 suggest that you try Television Services Ltd of Leicester. They usually carry large stocks and may be able to help you.

If a previous counter remains unpaid, the utmost tact is necessary when rejecting another order. Nothing is more likely to offend a customer than the suggestion that they may not be trustworthy. The suggestions of mistrust are avoided tactfully and internal difficulties as the reason for refusing further credit are given:

Dear Mr.C.We are pleased to receive your order of 15 April for a

further supply of radio sets. Due to the current difficult conditions we have had to try and ensure that your main customers keep their accounts within reasonable limits. Only in this way can we met our own commitments.

At present the balance of your account stands at over £800 and we hope that you will be able to reduce it before we grant credit for further supply. In the circumstances, we should be grateful if you could send us your cheque for say half the amount owed. We could then arrange to supply the goods now requested and charge them to your account.

We hope to hear from you soonWhen a supplier receives an order which cannot be

met for some reasons, any of the following options are available:• send a substitute. Careful judgment will be required

since there is the risk that the customer may be annoyed to receive something different from what was ordered. It is advisable to send a substitute if a customer is well known or if there is a clear need

130

for urgency. Such substitutes should be sent "on approval" with the supplier accepting such responsibility for carriage charges both ways.

• make a counter offer• decline the order

Supplier makes a counter offerFor making a counter offer, the supplier must exercise

a great deal of skill to bring out a sale. The buyer is offered something that has not been asked for. It is important that the suggested substitute provides an article which is at least as good as the one ordered.

Dear Mr. X.Thank you for your letter of 12 May ordering 800

meters of 100 cm wide watered silk. We regret to say that we can no longer supply this silk. Fashions constantly change and in recent years the demand for watered silk has fallen to such an extend that we have ceased to produce them. In their place we can offer our new GOSSAMER brand of rayon. This is a finely woven, hard wearing, non-creasable material with a most attractive luster. The large number of repeated orders we regularly receive from leading distributors and dress manufacturers is clear evidence of the wide spread popularity of this brand. At the low price of only £ 2.20 per meter, this rayon is much cheaper than silk and its appearance is just as attractive.

We also manufacture other clothes in which you may be interested, and are sending a complete range of patterns by parcel post. All these cloths are selling well in many countries and can be supplied from stock If as we hope, you decide to place an order, we could meet it within one week We hope to hear from you soon.

Yours sincerelySupplier sends a substitute article: Dear Mr. Z.We were pleased to receive your letter of 17 April

together with your order for a number of items included in our quotation reference RS341. All the items ordered are in stock except for the 25 cushion covers in strawberry pink Stocks of these have been sold out since we quoted for them, and the manufacturing units inform us that it will be another 4 weeks

131

before they can send replacements.As you state that delivery of all items is a matter of

urgency we have substituted covers in a deep orange identical in design and quality with those ordered. They are attractive and rich looking and very popular with our customers.

We hope you will find them satisfactory but if not please return them at our expenses. We shall be glad either to exchange them or to arrange credit. All items will be delivered by our own vehicles tomorrow. We, hope you will be pleased with them.

Yours sincerely

Packing and dispatchWhen goods are dispatched, the buyer should be

notified either by an advice note or by a letter stating what has been sent, when it was sent and the means of transport used. The customer knows that the goods are on the way and can make the necessary arrangements to receive them.

Request for forwarding instructions:Dear Mr. W.We are pleased to confirm that the 12 Olivetti KX R

193 electronic typewriters which you ordered on 15 October are now ready for dispatch. When placing your order you stressed the importance of prompt delivery and 1 am glad to say that by making a special effort we have been able to improve by a few days on the delivery date agreed upon.

We now await your shipping instructions, and immediately we receive them we will send you our advice of dispatch.

Yours sincerelyAdvice of goods ready for dispatch as well as

notification of goods dispatched can be easily formulated; it is the legal duty of the buyer to collect any purchases from the supplier. Unless the terms of the sale include delivery, the railway or the other carrier is considered the agent of the buyer. The buyer is responsible for any loss, damage, delay which may affect the goods after the carrier has taken over.

ORDER NUMBER S 524

132

We regret to inform you that of the four cases of mohair rugs which were dispatched on 28 January, one was delivered damaged. The waterproof lining was badly torn and will be necessary to send seven of the rugs for cleaning before we can offer them for sale.

Will you therefore please arrange to send replacements immediately and we charge them to our account. We realize that the responsibility for damage is ours, and have already taken up the matter of compensation with the railway authorities.

Yours sincerelyWhen the goods do not arrive when they are promised

to arrive, avoid the tendency to blame the supplier as it may not be their fault. Your letter should be restricted to a statement of the facts and a request for information.

Dear Mr J..ORDER NUMBER Z 423You wrote to us on 3 January informing us that the

mohair rugs supplied to the above order were being dispatched. We expected these goods a week ago, and on the faith of your notification of dispatch, promised immediately to be delivered to a number of our customers. As the goods have not reached us, we naturally feel our customers have been let down.

Delivery of the rugs is now a matter of urgency. Will you please find out from British Rail what has happened to the consignment and let us know when we may expect delivery. We are also, of course, making our own enquiries at this end.

Yours sincerelyUpon receiving the foregoing letter, the supplier

should at once take up the matter with carriers, either by phone or by letter. If a letter is sent, it must contain no suggestion of the annoyance that is naturally felt but also it should be confirmed to the facts and ask for an immediate enquiry into the circumstances.

We regret to report that a consignment of mohair rugs, addressed to Whart & Co., 25-30 Gordon Avenue, Werrington, has not yet reached them. These cases were collected by our carrier on 28 January for I February. We hold your carrier's receipt number 2436.

As our customer is now urgently in need of these goods, we must ask you to make enquiries and let us know the cause of the delay and when delivery will be made.

Please treat this matter as one of extreme urgency.Yours sincerely

133

Payment for the goods supplied or services rendered is the final stage in a business transaction. In the case of the retail trade, transactions are for cash while for the wholesale and foreign trade, the credit is in practice.

Invoices and adjustmentsWhen goods are supplied on credit, the supplier sends

an invoice to the buyer in order:• to inform him about the amount due• to enable the buyer check the goods delivered• to enable entry in the buyer's purchases day bookWhen received, an invoice should be checked

carefully, not only against the goods supplied but also for the accuracy of both prices and calculation. Invoices may be sent together with the goods, but usually they are posted separately. The buyer who is not a regular customer is supposed to pay at once while the regular ones may get credit, invoices being charged to their accounts. In the latter case, the payment will be made later on the basis of a statement of an account sent by the supplier monthly or at any other interval of time. Here is an invoice:

JOHN G. GARTSIDE & CO. LTD. Albion Works, Thomas Street Manchester M60IQA Phone 061-943-1234

INVOICEQuantity Items Unit price Total

10 Polyester shirts $ 3

$30

21 Cotton blouses $7

$147

12 Cotton shirts $8

$96

Total $ 276

VAT 10% $27.6

One case back $2

Big total $ 305.6

Pro forma invoices"For form's sake" or” pro forma invoice” is an

ordinary invoice but has this label "Pro forma". It is used for: - customs purposes covering goods sent 'on approval'

134

or ' on consignment' - serving as a formal quotation- serving as a request for payment in advance for

goods ordered by an unknown customer or a doubtful payer- where the value of goods exported is required forThese invoices are not entered in the books of

accounts and are not charged to the accounts of the persons whom they are sent to.

Covering letter with invoiceSuch a letter is not compulsory but if the invoice is

sent separately it may be sent by post; it should be short and polite. To a non regular customer, it should look like this:

Dear Mr.V.YOUR ORDER NUMBER A W25We are pleased to enclose our invoice number B 253

for the polyester shirts ordered on 13 August. These goods are available from stock and will be sent to you immediately we receive the amount due, namely $ 310.60.

To a regular customer, the letter may look like this:Our invoice number… is enclosed covering the

polyester shirts ordered on 10 August. These shirts have been packed ready for dispatch and are being sent to you, carriage paid, by rail. They should reach you within few days.

Debit and credit notesIf the supplier has undercharged the buyer, a debit

note may be sent for the amount of the undercharge. A debit note is a supplementary invoice. If the supplier has overcharged the buyer, then a credit note is sent. Credit notes are issued to buyers when they return either goods (as they are not suitable) or packing materials on which there is a rebate. Credit notes are printed in red to be distinguished from the others. A debit note is sent by the supplier to a buyer who has been undercharged in the original invoice, or to acknowledge and allow credit for goods returned by the buyer.

Statement of accounts It is a demand for payment. It is a summary of the

135

transactions between buyer and supplier during the period it covers, usually one month. It starts with the balance owing to the beginning of the period, thereafter, amounts of invoices and debit notes issued are listed and amounts of any credit notes issued and payments made by the buyer are deducted. The closing balance shows the amount owing the date of the statement. Statements are sent without a covering letter. If a covering letter is sent, it needs only be short and formal, here is a statement:

George Brown & Co.24 High Streethite Street Manchester M6940a Telephone 072-980-2132

STATEMENTDate Details Debit Credit Balance

1.8.. Account rendered $ $ $ 115.53

12.8.. Invoice no 312.28 427.81

20.8.. Cheque no. 100.00 327.81

22.8.. Debit note 6.30 334.11

25.8.. Credit note 3.25 330.86

A covering letter should look like this: We enclose our statement of account for all the

transactions during August. If payment is made within 14 days you may reduce the customary cash discount of 2 '/i %.

Sometimes the supplier reports the unpaid statement:We are enclosing our September statement, totaling £

820.57. The opening balance brought forward is the amount left uncovered by the cheque received from you against our August statement, which totaled £ 560.27. The cheque received from you, was drawn for £ 500, 27 only, leaving the unpaid balance of £ 60 now brought forward. We should appreciate early settlement of the total amount now due.

The supplier replies: Having carefully considered your letter of 8 August,

we have decided to allow you to defer payment of your account to the end of August. We grant this request as an exceptional measure only because of the promptness with which you have

136

settled your accounts in the past. We sincerely hope that in future dealings you will be

able to keep to pure terms of payment. As you do not seem to have been clear about them, we take this opportunity to remind you that they are as follows: 2 '/;% discount for payment within 10 days. Net cash for payment within one month.

Methods of paymentIn settling the accounts, there are many methods of

payment:1. cash (coins and notes)2. payment through the POST OFFICE a.) POSTAL ORDERS and MONEY ORDERS (the

latter for foreign payments only). British postal orders and money and money orders are issued and paid in many countries abroad. Payment is made in the currency of the country of payment at the current rate of exchange. Postal orders are used for small sums of money. Money orders are used for amounts up to £ 50 for the payment abroad. This is used by senders who have no bank account or giro. Upon payment of the charge for a telegram, money orders may be telegraphed. A person sending a money order should ask the payee for a receipt since there is no evidence of payment.

b.) GIRO TRANSFER. Giro is the term used to the postal cheque system run by post in most Western European countries and Japan. Apart from cash transaction giro transfer or postal cheque is a means of payment. Anyone can receive or make a deposit of money whether or not they should hold a giro account.

c.) COD system. It means cash on delivery. i.e. the buyer pays for the goods at the time they are handed over by the carrier (this includes the postal system).

137

ComplaintsConcerning delivery quality

It may happen that one of the parties (the buyer or the seller) does not respect certain clauses of the contract so the dissatisfied party sends the other one a letter of complaint containing a demand for something which the sender of the letter has a right to claim for (damage or for a reduction in the price).

The buyers complain because of late delivery, non-delivery or short shipments of goods or delivery of wrong or damaged goods, or goods not up to the sample or description, or inadvertencies in the documents. Non observance of the buyer's instructions for the transportation, packing, storage and insurance is another source of complainment. The seller may complain because of unreasonable amounts claimed from them by the buyers and also when the latter fail to open a L/C in time or place a vessel under loading. A letter of complaint should contain:

• a writer's regret of being obliged to make a complaint• a clear and concise account of what is wrong with

the goods supplied• the data necessary to identify the commodity in question

(number of contract, date of shipment etc.)• a reference to former satisfactory dealings between the two

parties or to the firm's high reputation in the world market• a request for a careful investigation of the matter and

reasonable remedy of the mistake or a suggestion how the complaint should be adjusted satisfactorily

• a warning or a threat to cancel the order or the contract if there are constant and prolonged delays or frequent errors in carrying out the order. Warnings or cancellation the order and getting supplies from elsewhere should not be used too liberally as they will only create bad feelings and in any cases would be quite unnecessary.

When writing complaints, avoid any expressions indicating anger, sarcasm, irritation, suspicion. Keep in mind the indispensable you attitude and see the matter from the customer's side in addition to your own.

Clarity, conciseness, courtesy and reasonableness are the compulsory elements. Make clear what is wrong and how you want it adjusted. Make sure of your facts and get them down accurately. Be precise about the dates, quantities, trade names or

138

numbers of models, sizes, shapes, methods of shipment, types of containers...

Be specific in setting forth the nature of loss or inconvenience you have suffered. If all these are made clear, then you make easy the task of your partner to verify the claims and make the just adjustments. Be courteous! Be concise in order to make me presentation as clear as possible! It is important to be reasonable in demands for an adjustment. Unfair demands may arouse suspicion of your claims, prolong investigations and delay adjustments. Most firms want to be fair if only to maintain a good reputation and they will react favorably to a reasonable approach. In closing, indicate that you expect a reasonable attitude on the part of the firm. Use such closing formulae as: We are sure you will give this matter your prompt attention./ We are sure you won't disappoint us in meeting this reasonable request.

Dear Mr.X.Re: Delay in DeliveryIn your acknowledgement of our order given to you on 19

September, you stated that the consignment would be dispatched within a week and we are therefore very surprised that the merchandise has not arrived yet. These goods were offered for the pre holdery sales period now in full swing. Everyday delay means loss and inconvenience for us.

If this shipment is on route, please phone us and we shall see what we can do to this end to expedite delivery to our premises. If the order has not been shipped yet, we shall expect you to ship it rush. If the orders have been held up because you are unable to ship certain items immediately, please phone us and we shall instruct you as to what items we can wait for and what items we may have to cancel. In any event we shall expect a call from you on Monday. If you do not get in touch with us before Tuesday, please cancel the entire order. Awaiting your call,

We remain yours sincerely..Dear Mrs.BRe: Inferior QualityIt is with great regret that we have to inform you that your

last delivery is not up to your usual standard. The material seems to be too loosely woven and is inclined to put out of shape. By separate mail we have sent you a cutting from this material, also one from cloth of an early consignment, so that you can compare

139

the two and see the difference in texture.We have always been able to rely on the high quality of the

materials you sent us and we are all disappointed in this case because we supplied the cloth to new customers. As we shall have to take it back, we must ask you to let us know, without delay what discount you are prepared to allow us to get over this difficulty.

Yours sincerelyDear Mr. P.Ref. wrong goods receivedWe received the documents and took delivery of the goods

on arrival of the SS "M" at P.We are much obliged to you for the prompt execution of this

order. Everything appears to be correct and in good condition except in case no. 1O

Unfortunately when we opened this case we found it contained completely different articles, and we can only presume that a mistake was made and the contents of this case were for another order. As we need the articles we ordered to complete deliveries to our own customers, we must ask you to arrange for the dispatch of replacements at once. We attach a list of the contents of case nr. 10 and you shall be glad if you will check this with our order and the copy of your invoice.

In the meantime we are holding the a/m case at your disposal. Please let us know what you wish to do with it

Yours sincerely

ContractsA contract is an agreement between two partners that

will act according to the law, The companies use these agreements for the guarantee they offer regarding all the important elements of the business. Though the oral agreements are applied according to the Romanian laws,

the small companies are to use the written ones, The written form of an agreement makes clear everything and each partner has in mind his obligations and responsibilities. These fundamental agreements may require different modifications according to the topics debated.

Romanian firms prefer short contracts no matter how complex the transactions are. Though we must underline a fact: not always the shortest agreement is the best. If the partners do not

140

use a certain clause and the Romanian law has no special reference to it, the courts may refer to the general principles of the commercial law. The written contract may be used for the interpretation of the way this law is applied, in certain transactions.

General clausesStandard clauses required for any type of

agreementAny type of agreement requires the following standard

clauses such as:- Final form of the agreementThe present agreement is the only one between X and

Y. Any other previous declaration or agreement, either oral or written, has no compulsory force but the clauses included in the present agreement. This agreement may be modified only if the modification is done in a written form and is signed by X and Y.

- Giving up the rightsThe fact that X or Y does not insist on an exact

fulfillment and according to the present agreement must to practice any options he (or she) has, does not mean that the respective partner gives up to the rights he (or she) has according to any of the clauses of the present agreement

• Partial invalidationIf the courts declare or establish that a part (or

clause) of the present agreement is repealed or may be put into practice the parts (or clauses) that were not put into debate keep their compulsory character between X and Y (each agreement should make reference to the registration number of the firm in the Register of Commerce).

Clauses necessary for complex agreements.There are certain clauses that are included in the

commercial agreements. They are presented in this chapter.• Typical clauses: Force majeureIt is the force majeure clause (that includes the casual

or fortuitous case), the conditions that may be called upon, notification procedure for producing it, the consequences of this event for putting into practice the respective agreement. The legislation of some countries knows the "unforeseeable" event. It

141

means that an unforeseeable event may appear in the moment when the agreement is signed. It does not stop the agreement, but turns it into a very expensive one. Exceptions are the cases when the agreements have foreseen such clauses. Such unforeseeable events are considered war, natural calamities, strikes, legal restrictions, and any other event that is not under the control of the partner. The partner that makes reference to this event is obliged to let the other partner know about it as well as all the measures used for limiting it. If in due time, the respective event does not cease to exist, each partner has the right to announce the other one that the respective agreement ceases to exist without having the right to claim damages. It is advisable to add:

the provisions of the present article are not applicable in the case when\ an event, one of the types described, without stopping the achieving of the agreement, made very expensive the fulfilling of one of the partners.

- TRANSFER OF THE AGREEMENTIt is frequently used, one partner offers (transfers)

the rights to a third partner, either partially or totally. Romanian Civil Law admits the transfer of rights but due to its "silence" we may understand that it accepts the transfer of obligation too. The partner that gives up is "cedent" and the one who gets is "cedar". The transfer should be done according to the law.

None of the partners of the present agreement should transfer the rights and obligations of this agreement to the other partner. The written agreement should be offered to the ''cedent" in maximum …days since the date the "cedent" required the "cedat" 's acknowledgement

In the case the "cedat" does not answer in the already given interval of time, it is considered that the "cedent" agrees with the transfer of the agreement .(to avoid the risk of a possible abusive attitude of the debtor, the partners

may foresee cases when the cedat' s denial is considered non relevant for "cedent").

- NOTIFICATION CLAUSEThis clause is important as, in many cases, the

partners of an agreement inform themselves orally, establishing modifications of the initial agreement or ways of solving controversies without writing them. In such cases, we come to the

142

situations when no written form exists.In the meaning of the present agreement, any

notification or communication addressed by a partner to the other is considered fulfilled if it is transmitted to the latter at the above mentioned address at the beginning of the agreement. In the case the communications is by mail, it should be done in the form of a registered letter that is considered to be received by the addressee in x days since the sending of the post office. In the case, the communication is in the form of a fax or telex, it is considered to be received by the addressee in the first -working day following the one used for sending it.

The oral communications are not taken into consideration by either of the partners if they are not confirmed by one of the already mentioned ways from the present article.

- AGREEMENT DIVIDING

The Romanian jurisdiction has a principle according to which cancelling a part of a juristic fact does not bring about the nullity of the whole fact but the activity has demonstrated that cancelling certain clauses makes impossible the continuation of the respective agreement.

In the situation that a clause or a part of the agreement is considered null, the clauses that are still valid will continue to act, exception is the case when the cancelled clause (or act) contains the main obligation. The main obligations of the present agreement are considered to be the fallowing ones: (and they are presented)

- CEASING OF AN AGREEMENT

The ceasing of an agreement implies the appearance of a clause that makes impossible the fulfillment of the agreement or its cancelling. There are two variants: either the obligations of two parts are fulfilled at once or cancelling an agreement implies that the obligations of at least one partner are fulfilled step by step (gradually). In both cases, one of the partners demonstrates that he has not fulfilled the obligations while the other one has already done or is ready to do it. The present agreement ceases to exist without the intervention of the courts, in the moment when any of the parts:

- does not fulfill an obligation considered to be essential for the present agreement (see the dividing clause) or

143

- it is considered to be in the incapacity of paying, insolvency or

- brings about the winding up before beginning the fulfillment of the agreement (in the case of physical persons, winding up means the death of a partner or being under an interdiction)

- or transfers the right and obligations after he (or she) has been announced that any situation of this kind will bring about the cancelling of the agreement in maximum x days, since the date of the non fulfillment of the obligations,- the partner does not execute or executes the obligations, in a suitable way.

The partner that requires the cancelling of the agreement will announce the partner about this fact with minimum x days in advance. The cancelling won 't have any effect on the obligations that are already developed between partners.

The provisions of this article do not reject the responsibility of the partner that has brought about the ceasing of the agreement.

- FINAL PROVISIONS

IN the present situation, the third paragraph contains a note less frequent in our law. It makes reference to the specific of the commercial law of offering the partners the right of real agreement clauses:

The modification of the present agreement may be only in a written form, having the agreement of the partners. The present agreement, together with modifications and schedules, represent the wishes of the partners and reject any oral agreement between them, either before or after the agreement signing.

In the case when one of the partners, does not respect an obligation, the non- practising of the right of fulfilling accordingly or by agreement of the respective obligation by the injured partner does not mean that the latter has given up the respective right

The present agreement has been drawn today, in four copies, two of them have been given to … _ .

Part one Part two(the name of the partners, the name and quality of the man who

144

signs are presented in the contract)

PROVISIONS REGARDING THE CONFIDENTIAL CHARACTER

There is a practice to ask your partner some information concerning the business you want to have together. This information should have a strict confidential character. This fact imposes the partner to behave accordingly so the two partners are obliged to keep secret the information under discussion.

- GENERAL STATEMENTThis agreement is made on (date) between (A)

located at (address) and _ _ (B), located at _____ (address).

- Object of agreement(F) wants a conclusion (or settlement) with

(B) and (A) wants certain information about (B) which the latter has (or possesses).

(G) wants (A) to keep all the information secret. Having in view this, (A) signs the present agreement in order to keep confidential the received information.

- Confidential informationThe information regarding (B), (A) binds itself to

keep secret. It contains the financial situation of (B), its aims of doing business, data concerning; its products, means of manufacturing, patents any other information concerning (B) and has importance for its position on the market. The information contains the following documents (B) will offer to (A).

- Interdiction of discussing the information(B) will present confidential information only to the

persons that are involved in the negotiation and/or presentation of its commercial reports with (A).

(A), managers, administrators, representatives, lawyer, solicitors, accountants won't reveal the confidential information to any other partner but in the case (B) approves it in a written form.

- Interdiction of using the information(A), its managers, administrators, representatives,

lawyer, solicitors, accountants, employees will use the information

145

got from (B) only for deciding the conclusion of a commercial report with (B) and will not even use either of the information in any occasion.

- DurationThe present agreement comes into force till…

exception is the case when any of the two parts informs the other, in a written form, the canceling in advance, of the agreement.

- Penalties for the case of the non corresponding use of the information or of its revealing

If (A) infringes any obligations foreseen in Articles 4 & 5, it ix obliged to pay (B) a damage in value of

- Exoneration of responsibilities(A) will be exonerated of the responsibilities for

revealing information about (B) if: - the information was already known by (A) before

being got by (B) or- (A) has got the information from a non

confidential source from (B) or- the information was revealed after (B) has got the

written approval for receiving it or- information was already known by everybody

before or- (A) was legally obliged to reveal the

information- Restoring the informationAt the date when the present agreement has ceased to

exist, at the request of (B), (A) will return all the confidential information (B) has given to (A) together with all the copies. As evidenced by signatures below, this agreement has been signed today

A B name name

position position

SPECIAL BUSINESS LETTERS

Circular LettersCircular letters are frequently used to offer the same

146

information to different people. These kind of letters are used when sales campaigns are developing, when there are important developments in business such as extensions, re organizations, changes of addresses etc. A circular letter is written once, then it is duplicated in order to be distributed to the customers. It may get some more information such as names, addresses and individual salutations so it gets a more personal character.

Circulars are sent to many people, it is important to suggest an interest in the recipient by giving a personal touch. The next rules are to be taken into consideration:

• it must be brief - no one has time to read long stories

• make the letters as personal as they can be (address each letter to a particular person, indicating the name if you know it

• create the impression of personal interest by using you never our clients, customers, all customers, everyone. Address yourself directly to someone using formulas such as:

You will appreciate...We are pleased to inform you...You will be interested to learn...If you visit our new showroom you will see...

If some changes take place in your business, you have to inform your customers about them. The content is already written but you have to introduce the name of your customer in order to give the personal touch to the letter. Expansion of business takes place in your company, announce it to everybody, so write a circular.

Dear Mr. Xt

To meet the growing demand for hardware and general store in this area, we have decided to extend our business by opening a new department.

Our new department will carry an extensive range of hardware and other domestic goods at prices which compare very favorably with those charged by other suppliers.

We would like to demonstrate our new merchandise to you, and are therefore arranging a special window display during the week beginning 3 June. The official opening of our new department will take place on the following Monday, 10 June.We hope you will visit our new department during opening week and

147

give us the opportunity to show you that it maintains the reputation enjoyed by our other departments for giving sound value for money.

Opening a new business you have to let the others know about it:

We are pleased to announce the opening of our new retail store at the above mentioned address on Monday 1 September. Mrs Victoria Chadwick has been appointed Manager, and with her experience of the trade, we are sure that the goods supplied will be of sound quality and reasonably priced.

Our new store will open at 8 am on Monday 1 September, and a special celebration offer of 10% discount will be allowed on all purchases made by the first 50 customers.

We hope we may look forward to your being one of them.

You are to have a new branch in another town (or country). Inform everybody about it:

Owing to a large increase in the volume of our trade with the Kingdom of Jordan, -we have decided to open a branch in Amman, with Mr. X.

Although we hope we have provided you with an efficient service in thepast, this new branch in your country will result in your orders and enquiries being dealt with more promptly.

This new branch will open on I May, and from that date all orders and enquiries should be sent to:

Mr.XManagerTyler & Co Ltd18 Hussein Avenue AmmanWe take the opportunity to express our thanks for

your custom in the past, and hope these new arrangements will lead to even higher standards in the service we provide.

Because of different reasons you are supposed to change the address of your offices, write a circular indicating the new address, possibilities of arriving there.l

The steady growth of our business has made necessary an early move to| new and larger premises. We have been fortunate in acquiring a good site on the new industrial estate at Chorley, and from 1 March our new address will be the

148

following:Unit 15 Chorley Industrial StaleGrange Road ChorleyLines CH 2 4WPhone 3521689 Fax 3421768This new site is served by excellent transport facilities

both by road and rail, enabling deliveries to be made promptly. It also provides scope for higher methods of production which will increase output and also improve

even further the quality of our goods.We have much appreciated your custom in the past

and confidently expect to be able to offer you improvements in service when the new factory moves into full production.

We look forward to a continuing good business relationship with you.

You already know that circulars are used to announce the changes that take place in the membership of a partnership, suppliers and customers. For a retiring partner, this is particularly important since they remain liable not only for debts contracted by the firm during membership, but also for debts contracted with old creditors in retirement. The correct signature on such letters is that of the name of the firm, without the addition of any partner's name.

Retirement of a partner is announced like this:Dear X,We regret to inform you that our senior partner, Mr.

Harold West, has decided to retire on 31 May due to recent extended ill-health.

The withdrawal of West's capital will be made by contributions from the remaining partners, and the amount of the firm's capital will therefore remain unchanged We will continue to trade under the name of West, Webb & Co, and there will be no change in policy.

We trust that the confidence you have shown in our company in the past will continue and that we may rely on your continued custom .We shall certainly do everything possible to ensure that our present standards of service are

maintained. All the other changes are to be announced to the

partners you have.

149

MEMORANDUMSMemorandums are part of the correspondence, they

are a kind of letters that are carrying messages inside an organization (from an office to another one). Their target is to confirm a conversation, to clarify a previous message, to request an information or to supply it, to congratulate someone, to announce changes in a company's policy, to report meetings, to transmit documents.

If they are in a printed form, they should have some paragraphs presented in a clear and well organized way; have small words, short sentences, they should maintain your attitude and avoid clichés. Often the person who gets a memo knows everything about a situation but the position the boss has adopted towards it for that moment. The memo does not give any explanation, it comes directly to the point. A memo has an introductory part that is to be presented:

FROM: Peter Hening (Manager, Hanover)Date: 2.11.2007\TO:David Walsh (Warehouse Manager, Southold)SUBJECT: delayed deliveries Number of pages: I The memo has the paragraphs and has no salutation

formulas; only the capital letters of the writer's name are added. Having in mind these general rules, write a memo on the following subject:

Europart Ltd., of Unit 26, Frilford Industrial Estate, Southolt SJ4 7DB, distributes parts for motor vehicles from its branches through Europe. You work in the Hanover branch. Your manager, Peter Henig, says to you:

We 've got problems with our delivery dates. You know we guarantee delivery of any vehicle part to the shop here within 48 hours of a customer placing an order - the customer gets 20% discount. That's one of our main selling points. Well we 've been having to offer a lot too many discounts on parts we

have got from Southolt - they often take 3 days, sometimes even a week to get here. It's not too good enough.

Could you find out what's going on? Write a memo

150

under my name. Send it by fax to David Walsh, the Warehouse Manager at Southolt. Tell him what problem we have and ask him what he's going to do about it. But be tactful. He is usually very good - and 1 know it's not easy to handle about 50,000 different parts. See if there are any problems at his end that he 's sorting out - or if there's anything we can do to help. Is our ordering clear enough? Or perhaps he should charge his express courier. But get him to say when we 're going to get a normal service. We're not the only people distributing vehicle parts - there's a plenty of competition if our want to look elsewhere.

I’m off to a conference today, and I'll be away for a week. Tell David that if he wants to discuss anything, he can talk to you, or he can wait until I get back

So this is the text that is to be changed into a memo and sent to David. Before writing it, do the following

1. Read the questions twice at least: get the general idea what it is about; study it into details.

What exactly are you asked to do? WRITE A TACTFUL MEMO TO A MEMBER OF THE STAFF

2. Layout, correctly, a memo. ON THE TOP, you are supposed to write:

FROM: (sender's name and/or position in the company) TO: (addressee's name and/or position in company)

DATE: (the date the memo is written)SUBJECT: (very briefly, what the memo is about)

If you are sending the memo by fax, you should also indicate the number of pages .AT THE BOTTOM, you may put the sender's initials but NEVER a signature.

3. Decide on the correct tone of the memo. Peter Henig is not satisfied with David's work. He wants the problem be solved but he doesn't want to hurt Peter. The sender is quite angry but a tactful memo will produce a better impression than an aggressive one.

4. Relevant material should be included in a memo. Decide what relevant, leave out all the unnecessary elements is.

5. Make a list of the points that are going to be present in the memo. Order the points logically in paragraphs; take into account all the points that appear in the question. If you use your answer book to make your list, neatly cross it out the

151

point when you have finished referring to it.6. Write your answer7. Read your memo right through! Make sure that you have

included all the problems8. Check your work for accurate English! If you

discover any errors, neatly cross them out and add the correction.

Obeying all these rules, we may have the following memo:

FROM: Peter Hening (Manager, Hanover)Date: 2.11.2007TO:David Walsh (Warehouse Manager, Southolt)SUBJECT: Delayed deliveriesI am sending this by fax because I am off to a

conference today and will not be able to call you before I go.The problem is this: many of our orders from Southolt

are arriving late .In fact, some take a week to get here. That means we are having to give our 20% discount to a large number of customers - and some of them may soon start looking elsewhere.1 know it is not a simple thing to stock so many parts, and your warehouse usually performs very well indeed. But we need to sort this out Are there any problems at your end at present? Is your courier working normally ?Or is there anything we can do to help? Do please contact (write your own name here) if there are any points youwish to raise this week.Otherwise, I will be happy to talk things after my return.

PHComments on the model:a) layout, all the headings required in a memo b) content and effectiveness:

- it is tactful (Walsh is not responsible for late, arrival of parts, Henig praises his normal performance)

- logical order of the points- the opening paragraph explains, without wasting

the words, why Henig is writing to Walsh and not trying to call him

- MAIN POINT OF THE MEMO: late delivery- possible reasons for late deliveries are given- finally, Henig suggests a talk on his return from

152

the conferenceOnce the problem of Peter Henig is solved, some

other exercises are offered. Here they are:1. Your Office Manager says to you: I want you to write a Memo, under my name to

staff. I have received complaints from the Canteen Supervisor about the way the staff leave the canteen after lunch break Many of them do not return their trays to the canteen staff, and cigarette ash and paper wrappings are left on the floor and tablecloths. Last Friday, there was a large burn in a tablecloth - obviously caused by a cigarette - but nobody reported it. The canteen staff are grumbling about this -1 sympathize with them. Tel! staff that must keep their canteen clean: it doesn 't take much time. 1 hope 1 do not have to remind them about this again. By the way, if there are any accidents in the canteen, staff must report to the Canteen Supervisor.

REPORT

Writing reports is an important part of your work. Reports carry information to those who want it and need it, inform you what you have found out including little or no commentary and interpretation. A reportinforms and analyses, presents facts. It makes you think in terms of the purpose or function. It gets to know your audience and their needs. Keep all these in mind when you are planning to write a report. How do we lay out such a report? We must maintain one inch margin all around when typing. If you put it in a binder, leave 5 cm of margins on the left hand side. Type single space but allow a double space between paragraphs, above and below. If it is typed double space, no double space is allowed between paragraphs, allow a triple space above headings and above and below lists, long quotations, graphics.

Use typographical elements to make words, phrases stand out. You may catch your reader's attention by using italics, underlining capital letters. Enclose graphics in boxes. If the sequence of a list is random or arbitrary,

use bullets (■) or dashes (-). If order is important, use Arabic numbers (1,2, ...).Don't write long paragraphs (about 100 words), they should be put vertically on the page. The subject

153

should be readable, clear in meaning.Sentences must be short, simple ones, avoid all the

unnecessary words. The language the report is written in, is the language accepted by a specific group. There are periodic reports which record the work over a specific period of time, giving the organization of the necessary information which you base decisions on. Any report should tell how a project is going, how much has been completed and how much is left.

The report has an introduction that explains the period of work covered by it, the work that had been planned, the authority to do the work, it assesses the progress to date. It has a body which provides a detailed account of what has been accomplished and how. The conclusions explain what work is planned for the future, gives an overall appraisal of the progress to date. The reports may have supplemental elements such as: lists of references / bibliographies; appendices.The preparatory elements: title page, letter of transmittal, preface, table of contents, lists of figures, tables, abstracts – identify the report, its author, audience, date, subject, coverage etc. Pages are numbered in small roman numbers and the title page shows the title of a report, name position and the date you submitted the report. The preface is identical to the letter of transmittal and has statement about purposes, scope, content, acknowledgement of assistance received. The table of contents presents the content of a report and the list of figures and tables present the location of graphics and tables. The abstracts are brief, condensed and state the most important ideas of the report(not more than 150-200 words).The introduction contains the general idea of the report topic in a few paragraphs, explaining the subject, purpose scope, plan and order of the presentation. The body is the longest part of the report, it has a detailed message, arranged in a logical order, uses heads, subheads, graphics, quotations, footnotes. The final part stresses the most important ideas, summarize the major points and state the conclusions and recommendations.

LEAFLET

It is a document that informs people about different important things; it is folded and free of charge advertising/ providing information about something. There are no strict rules that are to be obeyed for its writing. But it should catch the

154

reader’s attention and must contain an address and date. Here it is an example: you work for a department store, COTY, located in 67894 Paris, 20-24 rue Babilon; you are planning the summer sale which will last from 2nd till 20th July and are supposed to write a leaflet announcing all the merchandises for sale. So you are supposed to inform the people about all the products ready for sale during this interval of time. Decide the order you present the material, no particular layout is required; the leaflet should attract the readers; address, date, place, phone number, even tram/ bus numbers are to be indicated. An example may be this one:

The BEST of Paris is at COTY…It is a price any can afford! Treat yourself at this

summer sale, 2nd – 20th of July inclusive Our English speaking staff helps you to

find what you want… a very good price 30% off brads of perfume 40% of leather bags 50% off men’s and women’s summer

fashionsThere a re a lot of goods anybody needs. COTY, 20-24 rue Babylon, 67894 Paris

(phone 0023456789), open 10-7, six days/week. It is closed for the national holiday – 14July. Take Bus no.6 from Place Pigale or tram no.12 from Louvre.

The writer may take a large place so that all the information is spread all over in order to catch the reader’s eye. The shop address is presented, date of the sales and even a map can be added.

NOTICE

A notice is a simple letter that offers an information about something that happens and all customers should know. It tells you very important things; it is formal and impersonal. It should be simple, easy to read, but it must be dated and include the name of the person who wrote it. It must catch the people’s attention. The notice should apologize and suggest alternatives. Here is an example:

155

HOTEL RESTAURANTClosure, 2-20 May 2008

We regret that the hotel restaurant will be closed from 2 - 20th of May because of repairs to the floor. A cold buffet lunch will be served in the bar area on these days, but dinner will not be served during this period. Guests will find a number of restaurants close to the hotel.

Breakfast will be served as usual in the bar area.We apologize to guests for any inconvenience caused

to you.

Max SmithManager 20 April 2008

The notice has a clear heading at the top, the date, the name and the position of the person who wrote it. It contains all the necessary information. The tone is correct, quite formal, and impersonal, with the necessary apology for the inconvenience caused to the guests.

MINUTE

The minute is an official record of the actions taken by a group. It is written by the secretary who is supposed to record the meeting as well as she can. Write out the minutes fully from your notes, give them to the chairman for distribution. What you write should be written objectively and factually without your opinions being reflected. A minute is a record of what was done. It should contain the following ideas:

• name of the group holding the meeting• kind of meeting(special, regular)• date and place of the meeting• subject of the meeting• names of the persons attending the meeting(chairperson,

secretary…)• time the meeting was open• action of the group, stating exactly what motions were

156

made and their position; the name of the person making the motions, seconding the motions, the members and how each voted

• time of adjournment and the time of the next meeting• signature of the secretary and of the chairman

Here is an example:

Hilton & HiltonMinute of a regular meeting of the committee on new

construction April, 2nd 2008

Subject: review of items of work on the X HotelAttendees: A.V., chairman S.B., secretary S.K.; V.O.; L.P.;Agenda:• the meeting was opened by the chairman at 1p.m.• the minutes of the previous meeting were accepted

as read• A.V. summarized the status of work….• V.O. believes that….• S.K. says that…• L.P. reported that ….• There being no other business, the chairman

closed the meeting at 3p.m.; the next regular meeting is scheduled for 20th May at 2p.m.

A.V. chairman

S.B. secretary

LETTERS OF APPLICATION

A letter of application is a letter that sells yourself. By applying for a job, you must arouse interest in your qualifications; b y presenting your past records and testimonials, you must convince the employer about your capacity of doing the job and you must reach the target: get an interview and then get the job.

157

Job application letter is difficult to be written as it is not always known whom are you writing to.

First, write an application as short as possible and state that your curriculum vitae is enclosed. Your curriculum vitae must give all the details of your personal background, education, qualifications, experience. DO NOT DUPLICATE this information in your letter.

Study the advertisement carefully. From it, you can get much information about the adviser. Read the requirements for the post carefully and in the reply you must state clearly which are you able to fulfill. Answer the advertisement fully, do not omit any element. The purpose of your letter is to get the job, but first, you must get the interview. Ensure that your application is well typed, neatly presented and make your application stand for the rest.

The letter should be brief, give a lot of information in as few words as possible. Write sincerely, in a friendly tone but not familiar. Do not make exaggerated claims, show a proper appreciation of your abilities. Do not suggest that you are looking for a new job because you are bored of the one you already have. If you are asked to state the salary you expect to get, do so. If your main interest is the salary, do not state the figures you expect, mention just you are earning now. The tone of the letter must show keenness for the post.

Do not send original documents, send just copies with your application, but take the originals along with you to the interview. As the employers are busy and have little time for long correspondence, try to offer them the most concise of what is important no matter how important that information seems to be for you. Avoid generalizing, just indicate the number of years and indicate the company you worked for.

After having written the letter, read it carefully and ask yourself the following questions:

• Does it look like a good business letter?• Is the opening paragraph in the position to interest the employer enough to make him read the whole letter?• Does it suggest that I am interested in that kind of work that is advertised?

Send the letter only if the answer to these questions are YES (for this you must put yourself in the position of the employer). These are only some pieces of advice that are to be

158

taken into account before writing an application letter. Your letter is an answer to a newspaper advertisement or journal; so the name of it must be mentioned in the opening paragraph or in the subject heading. In this kind of letter, the writer’s address is placed on the top right corner of the letter; all the details are written at the left, in fully blocked style. Place the date at the right. Here is an example:

23 Oxford Street8 April 2008 London

ER 34

Mr. Bob SmithPersonnel Manager

Leyland& BaileyNelson WorksSouthampton23EF

Dear Mr. Smith

Ref. to Private Secretary to Managing Director

I was interested to see your advertisement in today’s DAILY TELEGRAPH, and I would like to be considered for the job.(the next paragraph must contain a reference to what the applicant is doing for the time being, indicating all kind of information in very brief sentences)

In my present job of Private Secretary to the General Manager at a manufacturing factory, I have a wide range of responsibilities. These include attending and taking minutes of meetings and interviews, dealing with callers and correspondence in my employer’s absence, supervising junior staff, as well as the usual secretarial duties.

(you have to make reference to the job you are intending to get)The kind of work in which your company is engaged,

159

particularly interests me, and I would welcome the opportunity that would afford me to use my language abilities, which are not used in my present post.

(the motivation is given; no reference to income is made as nothing was mentioned in the advertisement; you are obliged to mention the documents you are enclosing for supporting your ideas)

A copy of my curriculum vitae is enclosed giving further details, together with copies of my testimonials.

(the letter is ended in a very polite way)I hope to hear from you soon, and to be given the

opportunity to present myself at an interview.

The letter may have a paragraph that indicates some names of persons who can be contacted in order to give references for the new employer ;

My present employer will be pleased to furnish you with any further information you may require, and will confirm that I am leaving his employ reluctantly and with the sole desire to improve my present knowledge of foreign languages.

The letter is supposed to be accompanied by a curriculum vitae and testimonials. The former should present all the personal details, education, qualifications and working experience. It should be presented in an attractive form so that all the information can be seen at a glance. All the details are to be presented on two pages not more. Here is a pattern:

CURRICULUM VITAE

Name: JohnsonChristian Name: ThomasAddress: 24 Main Road Middleford EssexTelephone; e-mailDate of birthNationality

160

Marital status

EducationSchool from…toCollege from…toUniversity from…toResults obtainedDegrees and/ or other post school qualificationsPostgraduate qualifications

Special awards

Working experience

September 2000 to … engineer Bains, Hoyle, London

InterestsPublished books

Referees1. Dr.X.V.

Principal, Redford College February 18, 2000 signature

As far as the testimonials, these are addressed TO WHOM IT MAY CONCERN. They are given by the previous employer if they are requested; the originals are retained; only copies are given. They should contain the following details of the employee:

• Duration of employment• Post(s) held• Duties carried out• Work attitude• Personal qualities• A recommendationTO WHOM IT MAY CONCERN

Miss X.B. was employed as Shorthand Typist in this 161

company, when she left the secretarial college in June 20… She was promoted to my Personal Secretary in…(duration of employment)

Her responsibilities included the usual secretarial duties involved in such a post, as well as attending meetings, transcribing minutes, and supervising and advising junior secretaries.

Miss X.B. used her best endeavors at all times to perform her work consciously and expeditiously. She was an excellent secretary, an accurate and quick shorthand typist, meticulous in the layout, presentation and accuracy of her work. I cannot overstress her exceptional work rate, which did not in any way detract from very high standards she set for herself. (working attitude)

She enjoyed good health and was a good time keeper. She was very personable, friendly, sociable and quick to share in a joke. (personal qualities)

In my opinion, she has the necessary character, dedication and approach to be suitable for the position of personal secretary or to enter the teaching profession. I can recommend her highly and may be contacted for further information.

(Recommendation).

BANKING / HOME BUSINESS

Commercial banks offer four main services:• Accept customers’ deposits• Pay cheques drawn on them by their customers• Grant advances to customers• Provide a payment mechanism for the transfer of

funds between its customers and those of the other banksCorrespondence between banks and customers is

quite formal and standardized. Only the persons authorized by a company’s board of directors may sign cheques for the company. The bank requires a copy of the board’s resolution, allowing the opening of an account and stating the manner in which cheques are to be signed, with specimen of their signature.

Dear Mr…

162

At the meeting of the Board yesterday, it was decided that cheques drawn on the Company’s account must bear two signatures instead of one as formerly.

One of the signatures must be that of the Chairman or secretary and the other one that of any member of the Board. This change takes place as today’s date.

There have been no changes in the membership of the Board since specimen signatures were issued to you in September.

A certified copy of the Board’s resolution is enclosed.

The bank manager sends a letter to a customer who has drawn too much from his account; it is a polite, courteous letter indicating him the seriousness of an unauthorized overdraft.

Dear Mr.

On a number of occasions recently your account has been withdrawn. The amount overdrawn at close of business, yesterday, was… and I should be glad if you would arrange for the credits necessary to clear this balance to be paid in as soon as possible.

Overdrafts are allowed to customer only by previous arrangement and as I noticed that your account has recently been running on a very small balance, it occurs to me that you may wish to come to some arrangement for overdraft facilities. If so, perhaps you will call to discuss the matter. In the absence of such arrangement, I am afraid it will not be possible to honor future cheques drawn against insufficient balances.

The bank replies:Dear Mr…Thank you for your letter of yesterday. I have paid

into my account cheques totaling…. I realize that this leaves only a small balance to my credit and as I am likely to be faced with fairly heavy payments in the coming months, I should like to discuss arrangements for overdraft facilities.

I have recently entered into a number of very favorable contracts but they involve the early purchase of raw materials and as payments under the contracts will not be made

163

until the work is completed, I am really in need of overdraft facilities up to about…for 6 months or so.

Perhaps you will suggest a day and time when it would be convenient for me to call on you.

When the payment of a cheque is stopped because of different reasons, payment is said to be countermanded. Only the drawer of the cheque can countermand the payment and it is done by notifying the bank in writing.

Dear Mr…I am writing to confirm our telegram of this morning

to ask you to stop payment of cheque number… for the sum of… drawn payable to the…

This cheque appears to have been lost in the post and the further cheque has not been drawn to replace it.

Please confirm receipt of this authority to stop payment.

It is contrary to banking custom to give information to private enquirer about its customers. When a buyer in seeking credit from a supplier gives the bank as a reference, the suppliers must approach their own bank not the buyer’s bank and ask them to make the necessary enquiries. As a rule, the information supplied in answer to such request is brief and formal and less personal than the obtainable through a trade reference. The supplier requests information from the bank:

We have received an order for… from… of 19 Drake Street, London. They ask for credit and have given the Commonwealth Bank, 10 Albert Street, Sheffield as a reference.

Would you be good enough to make enquiries and let us know whether the reputation and financial standing of the firm justify a credit of the above amount?

The bank replies:As requested in your letter of… we have made

enquiries as to the reputation and standing of the Sheffield firm mentioned.

The firm was established in 1956 and its

164

commitments have been met regularly. The directors are reported to be efficient and reliable and a credit of… is considered sound.

This information is supplied free from all responsibilities on our part.

When granting an advance to a personal customer, the bank may require some form of acceptable security. The security should be easy to value, easy for a bank to obtain a good legal title and it should be readily marketable. The most common types of security accepted are life policies, shares, mortgages of land and guarantees. Normally a bank will not require security from a customer to support a personal loan. Interest on draft is charged on a daily basis, while interest on a personal loan is calculated on the full amount borrowed.

The bank does not require security for the offered loan:

In… you were good enough to grant me a credit of…which was repaid within the agreed period. I now require a further loan to enable me to proceed with work under a contract with the…for building an extension to their King’s Road School.

I need the loan to purchase building materials at a cost of about… The contract price is… payable immediately upon satisfactory completion of the work on or before 30 August next.

I should be glad if you could grant me a loan of… for a period of…months.

I enclose a copy of my latest audited balance sheet and shall be glad to call at the bank at your convenience to discuss the matter.

The request may be with security:I am considering a large extension of business with

several firms in Japan and as the terms of dealings will entail additional working capital, I should be glad if you would arrange to grant me a loan of… for a period of.. months.

You already hold for safe keeping on my behalf…. These I am willing to pledge as security. At current market prices, they should provide, I presume, sufficient cover for the loan.

You would be able to rely upon repayment of the loan at maturity as apart from other income, I have arranged to take into the business a partner, who, under the terms of partnership agreement, will introduce….capital at or before time when I may

165

call on you to discuss my request, I will bring me evidence for supporting the above statement.

The customer may require an extension of the loan:On …, you granted me a loan of… which is due for

repayment at the end of this month.I have already taken steps forward to prepare for the

repayment, but unfortunately, due to a fire at my warehouse, a week ago, I have been faced with heavy unexpected payments. Damage from the fire is thought to be about… and is fully covered by insurance, but as my claim is unlikely to be settled before the end of the next month, I should be glad if the period of loan could be extended until ….

I am sure you will realize that the fire has created serious problems and that repayment of the loan before settlement of my claim could be made only with the greatest difficulty.

TRANSPORT

Transporting goods can be done by sea, by air and by land. Carriage by sea can be a complicated business since the buyer and seller are to observe a set of rules and regulations which have been made over the years; it requires a lot of paperwork. A lot of letter writing concerning transport is between firms in the same country; seller makes arrangements with forwarding agents or ship owners, while buyers have to contact agents or carriers in their own country when goods are to be collected from a harbor, airport or railway station. The seller or the buyer has to know how much it will cost to have the goods delivered. If he is doing this regularly between two ports, he knows the normal freight rates and will keep informed of changes, but in other cases he will have to make enquiries:

Please quote us your freight rate for cased cycles for shipment from … to…, and let us know when you will be sailing to.. during the next ..months.

We are about to make up an order for a customer in… for .., and in accordance with the terms of the letter of credit, the consignment has to be shipped by… at the latest. Please inform us whether your ship will be able to meet our requirements

166

and kindly quote us a rate for the voyage.These letters can get replies that sound like these

ones:We have received your enquiry of… and can inform

you that our current freight rate for … is $.. per metric tone or 10 cubic meters, at streamer’s option.

We will sail once a week, and as … is our first port of call, the voyage takes about …days. We will enclose our sailing card for … which loads at the …Docks, and our shipping instructions form. We would appreciate if you would complete and return the letter as soon as possible.

The agent replies the second letter:In reply to your letter of…, we are pleased to inform

you that the… will be receiving cargo from. to.. inclusive, and is expected to commence loading on.. We see no reason why your goods should not be on board by this date, but suggest that the cases should be delivered to the ship on the opening date. Details of the rates are enclosed.

If the rates are acceptable, the consignor will send an advice note to the ship owner or agent. Shipping instructions are sent to the shipping company.

Thank you for your letter of.. We have noted that your…is receiving cargo for.. on the.. of this month, and are making arrangements for our cycles to be delivered to the Docks. We are enclosing your shipping instructions form, duly completed.

When arrangements have been made for shipping the goods, the senders will write to the buyers to inform them that the merchandise is on the way. This communication is known as an advice of dispatch and the information is written instead, a form is sent together with a covering note:

YOUR ORDER No…./ of…. We are pleased to inform you that the cycles ordered

under the above number have been dispatched as arranged The cycles are packed in …cases, .. in a box. The cases are marked CVB in square, and are numbered 1-6.

167

The consignment is arriving at.. on.., on the …, which sailed from …yesterday.

Clean, shipped on board Bs/L2 in complete set, together with a commercial invoice and insurance certificate, both in triplicate, have been handed to X Bank, together with our sight draft for $..., in accordance with the terms of the letter of credit opened with them. X Bank has have paid the sum.

We are sure you will be more than satisfied with the cycles, and look forward to hearing from you again.

The document used for transport by air is called air

way bill; it is like a B/L but it cannot be used to pass on the right of ownership to the goods. Airlines themselves complete the waybills on the basis of information provided by consignors. The consignor is required to prepare an airway bill giving particulars of the consignment. It consists of a number of copies. The airline or its agents prepare the airway bills from the details supplied by the consignor on a special form provided by the airline or by the forwarding agents. Air cargo is charged by weight except the bulky commodities which are charged by volume. Valuables are subject to surcharge to cover extra handling costs.

We shall have a consignment of… , weighing about …

kg, for a customer in.., which we wish to send by air from…Please send us details of cost and any formalities to

be observed. The invoice value of the consignment is… and we wish to get the insurance cover for this amount plus the costs of sending the consignment.

It gets the following reply:Thank you for your enquiry regarding your

consignment to… All our charges, including freight, airways bill fee, insurance and our commission, are shown on the attached schedule.

To enable us to prepare our airway bill we shall need the information requested in the enclosed form. Three copies of certificated commercial invoice and certificate of origin will also be necessary.

Your consignment should be in our hands by 10 am on the morning of departure day. Please phone me when you are ready to deliver the consignment to our office at the airport; we

168

can then prepare to receive it and deal with it promptly. Alternatively we can make arrangements to collect the goods.

We hope to receive instructions from you.

169