UNIT 7

1. Company code
Do the questionnaire from a business magazine. Mark the statements T (true), F (false) or D
(it depends). Then compare and justif our ans!ers. Talk about ho! different cultural and
business conte"ts affect our ans!ers.
#. $t is perfectl acceptable to call the boss b their first name. %%%%
&. 'ou should ne(er socialize !ith managers after !ork. %%%%%
). $f a superior asks ou to bring coffee for a (isitor, ou can tell them politel it*s not
our job. %%%%
+. ,ersonal calls are acceptable onl at certain times of the da. %%%%%
-. .taing late at the office to finish our !ork is a sign of inefficienc. %%%%%
/. $n meetings it is ad(isable for junior staff to speak onl !hen in(ited to do so. %%%%
0. $t is 12 to offer suggestions to superiors about ho! to impro(e the business. %%%%
3. $t is not ad(isable to ha(e a romantic relationship !ith a co4!orker. %%%%%
2. Read the text below about online shopping.
Choose the best word to ill each gap rom !" #" C or $ below.
5(er ear in the 6.7 o(er 8#-9 billion is spent online, but this is onl - : of
(#) %%%%%%%%% retail sales in the countr. Most people using the $nternet for shopping don;t
actuall make a (&) %%%%%%%%% online. $nstead the use the $nternet for pre4purchase research to
find the best ()) %%%%%%%%% deals a(ailable, and then the go to that shop (if possible) to make
the final purchase.
This is all despite the e4tailing promise that shopping online !ill be (+) %%%%%%%%% and
con(enient. <on(enient it might be, but )9: of all online purchases (-) %%%%%%%%%" !hich means
that there are a lot of disappointed (/) %%%%%%%%% out there. There is also the (0) %%%%%%%%% of
credit card securit. $n =ritain there is o(er >-99m of credit card fraud e(er ear and o(er &-:
of that is !hen stolen credit card details are used on the telephone or $nternet to place (3)
%%%%%%%%% !hich the card holder does not find out about until their ne"t statement. 7s a result of
this, man people do not trust !ebsites
(?) %%%%%%%%% their credit card details.
1ther potential customers do not like the !a !ebsites track their (isits and the !a some, like
7mazon.com, make suggestions to (#9) %%%%%%%%% customers based on their pre(ious purchases.
The see this as being (##) %%%%%%%%%" and e(en a (#&) %%%%%%%%% of their pri(ac. .o although
online retailers ha(e (#)) %%%%%%%%% do!n prices and can (#+) %%%%%%%%% large discounts
because the are onl taking orders and shipping products from large !arehouses, the are still
(#-) %%%%%%%%% it difficult to turn (isitors into paing customers.
# 7. on =. !hole <. total D. these
& 7. bu =. purchase <. shop D. demand
) 7. e"tra =. good <. make D. possible
+ 7. e"pensi(e =. cheap <. good D. qualit
- 7. fail =. !ork <. succeed D. bought
/ 7. buer =. customers <. orders D. consume
0 7. problem =. situation <. status D. issued
3 7. products =. goods <. purchases D. orders
? 7. for =. b <. to D. !ith
#
#9 7. ne! =. ne"t <. returning D. e"cellent
## 7. intrude =. intruded <. intrusi(e D. intruding
#& 7. protection =. (iolation <. entrance D. intrude
#) 7. brought =. bring <. bringing D. bought
#+ 7. ask =. ga(e <. suggest D. offer
#- 7. finding =. making <. saing D. seeing
&. Complete the text with one word in each space. There is an example at the beginning.
7 customer logs on to the $nternet and looks up a (9) product on a search engine. .he clicks on a
(#) %%%%%%% to a seller*s site and then she (&) %%%%%%% the site and identifies the product !hich
interests her. Then the customer ()) %%%%%%% similar products on other sites before selecting the
best offer she can find. .he (+) %%%%%%% a product and places it in a shopping cart before going to
the (-) %%%%%%%.
'. Complete the text with the best orm o the (erbs in brac)ets" airmati(e or negati(e. In
some cases" more than one tense is possible.
@ood morning, ladies and gentlemen. $ (#) %%%%%%%%% (ask) ou here toda to talk about the
long4term plans and prospects of ,redictor $T. $ (&) %%%%%%%%% (be) delighted to be able to
announce that predictor $T and 5,A .oft!are ()) %%%%%%%%% (merge). $ (+) %%%%%%%%% (ha(e) a
final meeting !ith the chairman of 5,A last !eek and !e (-) %%%%%%%%% (agree) all the details. $
am (er pleased to sa that there (/) %%%%%%%%% (be) an redundancies and !e (0) %%%%%%%%%
(emplo) more people in the future.
$ (3) %%%%%%%%% (tell) ou an more toda as there (?) %%%%%%%%% (be) a joint press conference at
+pm toda.
5(en though !e (#9) %%%%%%%%% (merge) !ith 5,A this doesn*t mean the launch of our ne!
multi4media home entertainment sstem !ill be delaed. Be (##) %%%%%%%%% (launch) the sstem
ne"t month on time. Be (#&) %%%%%%%%% (e"pect) this product to be (er successful and that
annual profits (#)) %%%%%%%%% (rise) b o(er #9:.
5,A (#+) %%%%%%%%% (launch) a ne! suite of business soft!are ne"t Frida and the long4term
prospects for our co4operation are (er good. $ (#-)%%%%%%%%% (see) ou at the press conference
at +pm.
*. +uanita ,ernande- has .ust .oined Nice Cream Inc. /he is reading about her pension in
the documentation the ,uman Resources 0anager ga(e her. 1ill in the missing words rom
the box.

Belcome to Cice <ream. This sheet gi(es ou information about our Cice <ream pension
&
a(erage earnings board bridging brokers contribution contributor
earl retirement fund holida lump sum plan
portable retire trustees
%%%%%%%%%%%%%%%%%%%.
'our Cice <ream pension is full %%%%%%%%%%%%%%%%%, so if ou decide to lea(e the compan,
ou can take our pension !ith ou.
The Cice <ream scheme is a %%%%%%%%%%%%%%%%%%%%%one. This means that e(er month ou pa
a %%%%%%%%%%%%%%%%%%%%%into the compan pension %%%%%%%%%%%%%%%%%%%%%%% and the
compan pas an equal amount. 'ou can choose ho! much ou pa and ou can also pa into the
scheme a %%%%%%%%%%%%%%%%%% of an size at an time. $f the scheme has more mone than it
needs, ou can take a contributions %%%%%%%%%%%%%%%%%%%%%and stop paing a monthl sum for
a !hile. The fund is managed b a %%%%%%%%%%%%%%%%%%%%%%of %%%%%%%%%%%%%%%%%%%%%% !ho
are appointed jointl b the senior management board of the compan and our trade union
representati(es. This committee !orks completel independentl of the compan. The compan
cannot touch the mone in the pension fund.
$f ou are a member of this scheme for )- ears, ou can e"pect to %%%%%%%%%%%%%%%%%%%%%at
the age of /- !ith a pension equal to 39: of our final %%%%%%%%%%%%%%%%%%%. $f ou take
%%%%%%%%%%%%%%%%%% ou can recei(e a %%%%%%%%%%%%%%%%%%%%%%pension until ou are /- and
can recei(e our full pension.
Be think that this scheme is one of the best a(ailable and one reason !h so man people decide
to sta !ith Cice <ream. Do!e(er, if ou prefer not to take part, !e can gi(e ou the names of
insurance and pensions %%%%%%%%%%%%%%%%%%%%% !ho can gi(e ou independent ad(ice on other
products on the market.

2. Read the article on mergers and ac3uisitions and sentences 145 below.
1or each sentence 145 mar) one letter 6!" #" C or $7.
The theor behind mergers and acquisitions is that the t!o companies together !ill be stronger,
and shareholder (alue !ill be created. 1ften in economicall difficult times stronger companies
!ill bu !eaker ones and hope that the snerg bet!een the t!o companies or the cost4sa(ings
!hich can be made !ill help the compan increase market share or become more efficient.
.ometimes companies agree to be taken o(er because the kno! the cannot sur(i(e in a
deteriorating situation. The might be nearing bankruptc or might be tring to a(oid the threat of
a takeo(er from another compan.
Mergers and acquisitions are not reall the same. 7 merger is !hen t!o companies agree to form
a ne! compan, !hich then starts trading. Bhen one compan bus another this is an acquisition
E the buer;s compan continues to e"ist. 7 third alternati(e is some kind of alliance !hen
companies agree to cooperate in a market or de(elopment of a ne! product or ser(ice.
Mergers of equals do not often happen E often the takeo(er is called a merger to make it sound
better to stockholders and the media. The ke difference bet!een a merger and an acquisition is
!hether the deal is a friendl or a hostile one. $f the deal is friendl then it !ill often be described
as a merger e(en !hen it is a takeo(er. Dostile takeo(er bids are al!as acquisitions.
<ompanies come together for a number of reasons. 1f these the most important are staff
reductions, economies of scale, and gaining access to ke technolog and ne! markets. Most
mergers in(ol(e job losses, as jobs done in one compan are replicated in another one. $n a
merger of finance and marketing departments, for instance, someone is going to lose their job.
1ften the <51 of the !eaker partner firm loses their job, but departs !ith a generous
compensation package to thank them for agreeing to the merger.
1ften the targets of takeo(ers are smaller and more inno(ati(e companies !hich ha(e unique
technolog that the larger compan !ants or needs. = acquiring such companies, the larger
)
compan can sa(e FGD costs, ha(e access to inno(ation and sta competiti(e.
<ompanies often tr to bu ri(als !ho are operating in different markets or sectors, to increase
the reach and size of the compan. $t is an eas !a to enter a ne! market and a(oids all of the
costs in(ol(ed in building up market share. Harger companies can also raise capital more easil
than small companies, and !ith cheaper mone can e"pand e(en more.
7cquisitions are paid for in cash, stock or a combination of both E a premium of about #9: on
the current share price of the takeo(er target is reasonable. <ompanies are generall more careful
of (aluations !hen cash is in(ol(ed and less so !hen the deal is made on the basis of shares. The
dream of e(er in(estment banker is to be in(ol(ed in a takeo(er battle !hen t!o or more
companies are bidding to bu a third. $n such a situation of bid and counter bid there are huge
fees to be made as ad(isors.
1 !ccording to the text" companies might want to be ac3uired when
7 the cannot takeo(er another compan.
= the do not !ant to merge !ith another compan.
< the are in economic difficult.
D the !ant increase their market share.
2 !ccording to the text" a merger is when
7 t!o companies agree to !ork together to start a ne! compan to pro(ide a ne! ser(ice.
= one of the companies continues to operate after buing the other one.
< t!o companies become one ne! one.
D one compan launches a hostile takeo(er bid for another one.
& !ccording to the text" an ac3uisition is
7 !here t!o companies merge b mutual agreement.
= basicall the same as a merger.
< al!as better for stockholders than a merger.
D !here one compan takes o(er another in a hostile bid.
' !ccording to the text" companies merge because
7 the can then spend mone on increasing market share.
= <51s like to agree to mergers and get a generous compensation package.
< the can then reduce costs, !iden their market and increase their resources.
D in(estment bankers like to earn big fees b ad(ising companies to merge.
* !ccording to the text" companies oten ac3uire competing irms
7 because the cannot afford to enter ne! markets.
= !ho ha(e desirable ne! technolog or products.
< to raise capital.
D because it is difficult to build up market share.
5 !ccording to the text" in(estment ban)ers li)e
7 deteriorating economic situations.
= big, po!erful companies.
< friendl mergers of companies.
D hostile takeo(ers.
+