Business Vocabulary Builder Road, Selween Town5 Onod OX43PP A divsonol Ma.millan Plb sheELmned Compan esandrcprcsentalivesihroughoullh€wo.ld Texl@PaulEnneron2009 D e s i q n a nudsl t r a l o n @ M a amn P u b i h e t i m t e d 0 a r ghc reseNed,no partofth s pub ar on maybe€podu.en, rtoredin a etiaa st5t€m,lrans tt€d in any or oth€Bise, wlhoL(rhepriorwiften lorm,or byanyheans,eletronc, m4hanca, photo.opynq,.{oding, pemissonoI rhepubishe6 Desgned byCaroynGibson I unraGdbyPeter Harper andill anMoseda e CoverdesqnbyKaleSleph€ns Aurrrol\a.know€dqem€nt5 th€bek, Kaenspillsforhs uaal Theaulhorwouldlke to thankAnna cowperior ommi55ionlnq whrl€ior herlhooughpr@fEding andsQeng oulstand n9conlibulononconlenr editing, andKarcn everylh nqthouqhto pub aron Thanlsa@'nio Ma.naWaher16 ran(ibrng1heoigi^alinleryieson ationaHouse,london whi.hthelnenngscfptsarebat€d On.eaqainlhercwee manynudenbal Inlern whogaveupther tme lo be nteMeed lor lhe ne^ n9malerul,and would'kelo rhankAdnaSlvul, tiankKaiarh.aelMmery Li,fran.gc Merella, ce nePerez, c audo 5ela,Em'lhano L'ma,tabr?ioFanne lu ancowanrnd Ma$imoLu(chin' lo eprcdu.elher photoqrapht: Theauthorandpubshe6wouldketo iha^k$e follownqlor pemieson A(dela o.]4eocullump57,can@nbank.@ntMaie Can@nbank convchaesBa6oltip23, Canoonbank pl5, Canoonba^k p35,Can@^bank lvla(hetop7,Cad.onbank con4a.bara Smaler convrameSl4enson Whiktevery elto.thasbeenmadero localerheowne6ol copyqhrmaleial'nthBb@k,$eremayhave beenbme cases when$e pubishe6 ha@beenuabe ro (onl.clrhe@ne6 we fiould beEslelultoh$r l@manyone who Eogn se5copynqhtmars al andwho is unacknowedqedwe shal beplearedto makeIhe n{es;iy amendmenls in iuiureedlonsol lhe book Prinkdandboundn HonqKong 2013 2012 2411 2A1A2049 10 Business Paur Emmerso" VOGabU Ia ry Builder to Upper-intermedi Intermediate Thewords& phrases vouneedto succeed A MACMILLAN Contents B U S t N E S St O P t C S Financial markets The businesswo.ld 31 Financial markets 66 32 Investing in stocks 68 33 Re.ruitment 7A 34 Pay and b€nefits 72 35 lisues in the workplacc 74 The econo y Th€ businesscycle lnternational tlade 10 Setting up and g.owing a businest 12 Company tt|pes and corporate gov€rnance 14 Global issuesfor the 21st [...]... forecasls,projeciedprofiiand loss (P&L) Look at ihe Contentspage of thc businessplan on the nght It is the knld of plan thai a sma or nedium'sized business mightproduce io define its shategvSoingfoMard The plan might alsobe neededto show to a bark if new tunding is 2lntroduction 2.1 Current situation 2.2 Need forchange 3 Internalanalysis 3.1 Interna strengths 3.2 Interna weaknesses 4 Market analysis 4.1 External oppoatunit... profit potentialin the medium term,but high start'up costs.A VC company $'ill offer funds and take on the risk of thebusinessfailing, but in exchangewillwant a lalge number ofshares.They aim to sell theselater,wlren ihc businessgoespublic TENREASONS WHYA NEWBUSINESS CANFAII Cause:startjnga business Solution:Taketime with a goodidea.some to research the market tho.ouqhy beforeyoustart entnusiasmbut no serous... ep a g €1 4 6J o r s o m e d i s c u s s i o tno p i c s The businessworld I Setting up and growing a business Initial idea Someonehas an idea for a newbusiness(a'stait up') Maybe they spoi a 8ap in the markeL or maybe they have an idea thai is simllar to existingoffers,but wiih a competitiveedge.Pot€niialsourcesof financefor ihis new businessinclude sclf'fuding, backerssuchas tsiendsand family trenbers,... y types and corporategovernance Company types ln 1aw,thereare various types ofbusinessentiry.For each one there are different legal adangements to register the conpmy, different requirements for presenting accomts, eic The main business t'?es are: Sole trader (UK) / Sole plopdetoGhip (US) A singlepelson owns and operatesa business- Legally, the bushesshas no separateexistencefrom its owner (proprieto!).This... sensethat thcy cannotbe bought by mcmbersoi thc public Thc vast trajority ofcompaniesfall into this catcgory.Thcy'rc oftcn smallercompanies,with sharcs hcld by a fei{ businessassociates or family nembe.s 'i Public.omp.ny: the sha$s are openl!' b.1dedon a public stockexchangc.Thcsearc thc large,often wcll-known businesses Thc word 'public' should not bc confDscdwith 'siate{wned' A'sialc-owned cntcrprisc'(SOE)is... latier issueis coveredin the contiactby specltyingthe relevantlncotem (IntemationalCommer.ial Term)for iliat particllar consiSnment(= quantity of goodsshippcd at the Other options Exporiing is one way to selLyour goodsinto a foreign narket, b r rt h e r ca r eo t h e ro p l i o n s rr i l r b l e r o L r r 8 ecr o m f _ rr /j, Ioint venhtre:two companies(a foreign companyancl a localpartner)work iogetherbrt... LWneTe manage6 f t turnsinto crsis takeresponsibility) Andcrisesdo happen- managers h.veto respond to fastmovingeventsand lake 5 (intendedto improvethe situaton)on ihe spot In a wo6t case$enario, thewhole thing just be.omesa S e ep a g e 1 4 7f o r s o m ed i s c u s s i o tno p i c s Manufacturingand engineering Manufacturing Manufacturingis the transformatjonof raN materialsinto fnlishcd products.It... - a Cause:f seeconomy cheapleasein thewrong neighbourhood Solution:remember that accessib lityfor cusiomers s When financingis in placc,the businessis registeredas a lcgil entity: sole hader pa.tnership,limited compant etc Early months and growth phase Now thc businesscan start trading.The risk of failu.c nr thc first iwo yearsis very high Oftcn thc problem isn't salcs,bui cashflow: ihc cornpanyhas... shrinking ye.r by year dependingon their managerial skills and generalmarket condihons Sellihg the business However,thereare olhe possibiliiies.The founder of l h e b u - i n c \ \m o ! d e c i d el o - c l l t h eb u \ h ' s \ d i d g o i n g concern.They might sell to a competiior or io a company wantnrg to expandinto that market.The buyershele nrc lookirg to Srow ihJolgh a straiegyofacquisitions /- at