In Company 30 Esp Corporate Finance Teachers Notes

ENGLISH FOR SPECIFIC PURPOSES Claire Hart
in company 3.0
CORPORATE FINANCE Teacher’s NOTES
B1–B2
Contents
Contents02
Student’s Book contents 03
Introduction04
Teacher’s Notes with answers
01 Forecasting 06
02 Budgeting 11
Video 01–02 16
Review 01–02 17
03 Managing payments 18
04 Reporting financial information 23
Video 03–04 28
Review 03–04 29
05 Interim results 30
06 Business development 35
Video 05–06 40
Review 05–06 41
07 Financial services and advice 42
08 Auditing 47
Video 07–08 52
Review 07–08 53
2 CONTENTS In Company 3.0 ESP Corporate Finance © Macmillan Publishers Limited 2017
Student’s
Contents Book contents
Unit Finance Reading Listening Language
communication skills
01 Making a forecast
Projecting revenue
A blog post about
forecasting
A presentation of a
financial forecast
Common financial terms
Forecasting verbs
Forecasting
Discussing cash-flow issues An email talking about A phone call about cash- Cash-flow expressions
Making predictions cash-flow issues flow issues Adverbs of certainty
Predicting with will/won’t
02 Discussing a budget
Explaining budget changes
A blog post about fixed
and flexible budgets
A meeting to approve a
budget
Budget terminology
Verbs to discuss budget reductions
Budgeting
Discussing how to reduce Emails about budget A meeting about Question tags
spending changes reviewing budgets
Video Interviews with Finance professionals talking about Forecasting and Budgeting with exercises
Review Revision exercises for Units 01 and 02
03 Following up outstanding
payments
Payment reminder
emails
Telephone calls following
up late payers
Accounting terminology
Payment terminology
Managing
Negotiating payment Internal emails A telephone call Negotiating expressions
payments
extensions discussing cash-flow renegotiating payment Modal verbs for possibility and
issues terms requests
04 Talking about changes to

the financial position of a
Financial statements A presentation of the
general company finances
Financial statements
Describing change
Reporting
company A presentation of Presentation language
financial
information Presenting slides inventory problems Contrasting expressions
Video Interviews with Finance professionals talking about Managing payments and Reporting financial information with
exercises
05 Describing differences/
variances
An email about a
budget variance
A presentation of the
causes of a budget
Words to describe differences/
variances
Interim results
Explaining causes and A blog post about variance Formal and informal email
results corrective action A meeting about expressions
Controlling a meeting corrective action Linking words – cause and effect
Meetings phrases
Conditionals for likely and less
likely situations
06 Discussing company
performance
A blog post about the
balanced scorecard
Discussions of a strategy
map
Strategy and planning expressions
Active listening expressions
Business
Discussing strategy An investment An investment decision Modal verbs for necessity;
development
Discussing how to raise company brochure recommend
finance
Decision-making
Video Interviews with Finance professionals talking about Interim results and Business development with exercises
07 Negotiating letters of
credit
A commercial banking
website page
Telephone calls about
letters of credit
Banking and tax expressions
Phrases for negotiating
Financial
Giving and receiving tax An executive summary A meeting about tax Phrases for making
services and
advice advice advice recommendations and suggestions
08 Making small talk and

building relationships
A blog post on
relationship-building
A social conversation
An opening meeting
Auditing expressions
Meetings expressions
Auditing
Opening a meeting skills A difficult conversation Indirect questions
Asking sensitive questions An audit policy
Video Interviews with Finance professionals talking about Financial services and advice and Auditing with exercises
Additional material p46 Answer key p52 Listening scripts p58

CONTENTS 5
In Company 3.0 ESP Corporate Finance © Macmillan Publishers Limited 2017 STUDENT’S BOOK CONTENTS 3
Introduction
About the course
In Company 3.0: English for Specific Purposes is a series of titles created to support the main In Company 3.0
coursebooks. This title, Corporate Finance, is aimed at in-work corporate finance professionals who are experienced
in their jobs, but who need support in using English in their jobs. The assumption is that they are already effective
at dealing with budgets, forecasts and accounts, so they don’t need to learn about how to set a budget or compile
their company’s actuals – what they need is to be able to do their job effectively in English.
The level of the book is B1 to B2. Note that some of the job-specific lexis that we expect your students to already
know is likely to be B2 or higher, due to its low frequency.
There are many pairwork activities in the book and ideally it would be used in classes of two to eight students.
However, it is highly adaptable to one-to-one tuition, and the Teacher’s Notes make suggestions for how you can
use the scenarios and roleplays effectively with just you and your student.
Student’s Book Structure

The coursebooks in this series consist of eight four-page Each unit introduces key activities and issues within
units, so they are shorter than most standard business the corporate finance profession, and presents useful
English courses. This is partly due to the fact that language in realistic input tasks. These tasks could
they are subject specific, which means that a group of involve listening to a negotiation of payment extensions
corporate finance professionals would not need to skip between a finance department and a customer.
over any units because they are all relevant. It is also Alternatively they could be presented through the kind
because we want to offer a realistic target for students. of reading texts students are likely to encounter in
It’s certainly feasible to work through the entire course their jobs, such as financial statements, or an executive
during a standard 20-week block of lessons. This would summary of a company. On some occasions, other forms
offer a real opportunity for your students to make of reading input are used, such as blog posts or articles.
tangible progress in their language learning, and this This keeps the tasks varied and keeps interest levels high
should be evident in the acquired language they take with by allowing more general discussion of topical issues.
them and actively apply in their jobs. Once students have practised using the target lexis
in controlled exercises, there is an opportunity for
Approach personalization. Students are encouraged to use the
The Corporate Finance title in this series offers an in- language they have learned to talk about their own jobs,
depth look at the English used in the industry. Students companies and experiences.
are presented with contextualized language (in both The final output task in each section either extends
audio and texts) that they can immediately use in their this personalization task, or offers a scenario in which
own jobs. For example, they will learn phrases to use students replicate a real-life situation where they may
when discussing cash-flow issues, when following up need to use the target lexis.
outstanding payments and when presenting financial
information. They are then given the opportunity to Target language
practise using this language in controlled exercises,
The focus of the target lexis is largely on useful phrases
before they move on to freer tasks where they can
and collocations. If students can learn these chunks of
activate what they have learned in realistic scenarios.
language and feel comfortable when using them, this will
Students are encouraged to personalize the language at greatly enhance their fluency and will enable them to
every opportunity, through framework exercises, such perform numerous activities within their job in English.
as mind maps and flow charts, as well as through simple
There is no overt grammar syllabus, however there are
discussion questions.
useful grammar tips when a functional area lends itself
They are also exposed to authentic input through videos to a specific grammatical area. For example, will for
of interviews with real corporate finance professionals. making financial predictions and forecasts, or modals for
Through watching these videos, they have the chance to requesting or offering payment extensions.
focus on the natural speech patterns of native speakers,
and they have the opportunity to personalize the topics
that arose in the video by discussing them in relation to
their own professional lives.
4 INTRODUCTION In Company 3.0 ESP Corporate Finance © Macmillan Publishers Limited 2017
Video In Company Online
After every two units, there is a page of video content. Students and teachers have access to extra resource
The video clips are available online on both the Student’s material in the Student’s and Teacher’s Resource Centres.
Resource Centre and the Teacher’s Resource Centre.
You will also find video scripts online. During this Class audio
activity, they watch and listen to people who work in This includes all audio tracks from the Student’s Book,
corporate finance talking about the topic. They focus on along with full listening scripts. Students and teachers
comprehension and on features of natural speech (e.g. can download all the material to a mobile device for
weak forms or elision) that arose during the video. After listening on the move.
watching, they have a chance to discuss and reflect on the
topics that the interviewees talked about. Video
The video clips are also available to both students and
Review
teachers, along with complete video scripts that you can
After each video page, there is a review page where print off.
students can complete exercises practising the target
lexis of the previous two units. This can be used as Photocopiables
homework or catch-up outside of the lesson, or as a quick
check in class. In the Teacher’s Resource Centre, you will also find eight
photocopiable activities with accompanying teacher’s
notes. There is one activity for every unit and one of the
Additional material
activities is a case study.
At the end of the book, you will find a section with
information needed for some of the roleplays and Tests
pairwork tasks. This usually consists of a specific role for
a student, with details on who they are, the situation In the Teacher’s Resource Centre, you will also find two
and the desired outcome. Students are directed to progress tests, the first covering Units 01–04 and the
the applicable pages from the Student’s Book units second covering Units 05–08. These come complete with
themselves. audio (for the listening sections) and answer keys. There is
also an exit test that covers all eight Student’s Book units.
Answer key
Additional student support
There is also an answer key at the back of the book. This
is to help students who may need to catch up on missed Students also have access to a unit-by-unit glossary, as well
lessons or who need to do some independent work on as an A–Z glossary that covers lexis from all eight units.
the course outside of class. Given that your students are
Teacher’s Notes
adults, it shouldn’t be seen as an opportunity to cheat!
Note that full answer keys are also provided in these
Teacher’s Notes, where they are embedded within the These notes aim to offer you plenty of support in the
procedural notes in the relevant position. topic area, so you don’t need to be an expert to teach the
material. Each unit begins with background information
Listening scripts on the unit topic and suggestions of where you can find
other useful and interesting information on the topic
The listening scripts are also available at the end of
before you teach the lesson. If there are any recurrent
the Student’s Book. Students can refer to them if they
lexical items specific to corporate finance that may
experience difficulties with a listening, or if you would
be unknown to a teacher, these are glossed after the
like them to focus on specific expressions or words that
Background information section.
came up in the activity. You can also use these scripts as
controlled speaking practice, by having students practise The procedural notes offer suggestions on how to
the exact conversations either with a partner or in small manage the activities and tips for giving feedback. All
groups. This can help if you want them to work on their of the answers keys and listening scripts are embedded
pronunciation or if they need to improve their fluency within the procedural notes, so it is easy for you to give
and confidence. appropriate feedback during the lessons.
The notes also include suggestions for extra activities in
case you have run out of activities during a lesson, or if
you and your students would like to expand on a certain
exercise. There are also suggestions of how group and
pairwork activities can be adapted for the one-to-one
classroom.
In Company 3.0 ESP Corporate Finance © Macmillan Publishers Limited 2017 INTRODUCTION 5
01 Learning objectives
Forecasting
In this unit, students will practise making a
forecast (verb [transitive]) to make a statement about
what is likely to happen, usually relating to the weather,
business, or the economy
forecast (noun [countable]) a statement about what
forecast, projecting revenue, discussing cash-flow
is likely to happen, based on available information and
issues and making predictions. They will read a blog
usually relating to the weather, business, or the economy
post about forecasting and an email about cash-flow
gross profit (noun [countable/uncountable]) the
issues. Students will also listen to a presentation
difference between the price that someone sells goods for
of a financial forecast and a phone call about cash-
and what it costs to produce them
flow issues. The language focus is on using common
net (adjective) a net amount of money is the total
financial terms, forecasting verbs, cash-flow
amount after taxes or costs have been removed
expressions, adverbs of certainty and predicting
operating expense (noun [countable]) the money that a
with will/won’t.
company spends as part of its daily activities other than
Digital resources: Unit 01 the costs of production
operating profit (noun [countable/uncountable]) the
Audio; Video; Photocopiable worksheet;
profit that a company makes from its normal activities
Glossary; Answer key; Listening script; Teacher’s
of selling goods or services; another term for operating
Presentation Kit
income
Background information overdraft (noun [countable]) an agreement with your
bank that allows you to spend money when you have no
In order to be able to organize and manage
money left in your account
corporate finance, companies need to make
overheads (noun plural) the costs, such as rent,
predictions about their future income and
insurance, administration, etc, that a company has to pay
outgoings. They do this by creating financial
which don’t relate to a specific product
forecasts, and their accuracy can determine the
profit margin (noun [countable]) the difference between
future financial success or failure of a company.
how much money you get when you sell something and
There is a wide range of things that companies can
how much it costs you to buy or make it
forecast when it comes to finance, but some of the
project (verb [transitive]) to calculate how big
most important are: sales volume, cash flow, profit
something will become in the future using information
and loss, and running costs or overheads.
that is available now
There are many resources online that have been revenue (noun [countable/uncountable]) income from
created to provide information about forecasting. business activities or taxes
Here are some links to get you started: sales ledger (noun [countable]) a record of a company’s
http://www.investopedia.com/articles/financial sales which they’ve received the money for and which
-theory/11/basics-business-forcasting.asp they are still waiting for payment for
volatility (noun [uncountable]) the state of changing
http://www.flexstudy.com/catalog/schpdf.cfm?
suddenly or becoming more dangerous
coursenum=9522a
https://www.theguardian.com/small-business
-network/2014/nov/10/financial-forecasting Warm up
-predict-future-business-growth Start by drawing students’ attention to the quote from
Lao Tzu. Ask them to discuss the question in the Warm
up. Confirm that Lao Tzu thought that it isn’t possible
to make accurate predictions because predictions aren’t
Key terms glossary based on knowledge, but on pure speculation. To help
asset (noun [countable]) something such as money or to link predictions with the topic of forecasting, ask
property that a person or company owns students to discuss these questions:
cash flow (noun [uncountable]) the rate at which a ●
C an you think of any examples of predictions made
business takes in money through sales and pays it out for by your company, industry or government that were
the things it needs to continue operating accurate or inaccurate? Do you know why they were
equity (noun [uncountable]) ownership of a company accurate or inaccurate?
factoring (noun [countable]) a transaction in which a ●
W hen you make predictions at work, what do you
company sells unpaid debts to another organization for base them on – hard data, advice from colleagues or
less than they are worth in order to gain access to cash partners, media reports, etc?
fluctuation (noun [countable/uncountable]) frequent
changes in the amount, value, or level of something
6 01 Forecasting In Company 3.0 ESP Corporate Finance © Macmillan Publishers Limited 2017
CORPORATE FINANCE TEACHER’S NOTES
Forecasting revenue wExtra activityw

1 Put students into pairs to discuss the questions before Give students the following verbs from the blog post:
conducting whole-class feedback. Remind students that identify, project, prepare, anticipate, receive, pay. Ask them
here the focus is on forecasting revenue, i.e. all of the to remember or find the nouns which are used after those
money that comes into a company, and encourage them verbs in the blog post, which are: identify issues/trends,
to think of specific examples of ways in which forecasting project revenue, prepare a forecast, anticipate gross profit/
revenue can help companies. Possible answers could be: it operating profit/profit margins, receive income/revenue, pay
helps them to plan how many people they can employ, how costs incurred. Then ask students to add other nouns which
much investment they can make and whether they need could follow these verbs to make collocations connected
to reduce budgets and make cuts. Students will normally with financial forecasting or corporate finance more
have some personal experience with revenue forecasting, generally. Possible answers could include: identify economic
so ask them to describe the processes and tools that their risks, project outcomes, prepare a spreadsheet, anticipate
company uses to do this. increased sales, receive invoices, pay salaries, etc. Encourage
students to record collocations which are new to them.
2 Check the meaning of anticipate (to expect or predict).
Ask students to read the blog post with the aim of
understanding the most important things to do when
preparing the three different types of forecast, according
Projecting revenue
to the blogger. Divide students into pairs to discuss any 1 01 Tell students that they’re going to listen to a
similarities and differences between the advice given in presentation of the market conditions affecting a takeaway
the blog post and their own opinions about how to create pizza company’s profit and loss forecast. Engage students
forecasts. Encourage students to explain any differences, with the content of the listening task by asking: What do
e.g. any specific features of their line of business or company you think the market conditions for takeaway pizza companies
context which makes parts of the advice less relevant. in your area are? How successful would a new takeaway pizza
company be? What would affect its profits and losses? Ask
3 Tell students that they’re now going to focus on the students to read the sentences and then play the recording
meaning of specific items of vocabulary in the blog post by so that they can decide if they are true or false. Play the
matching the meanings to the words in the blog that they recording again if necessary. Encourage students to give
describe. Students can do this in pairs before you check reasons for the false answers. After checking students’
answers as a class. answers, you could ask them how similar this presentation
ANSWERS
was to the forecast presentations they listen to at work.
a revenue, income ANSWERS
b trends 1 F – Some people feel it’s too pessimistic.
c fluctuations 2 F – There is significant volatility in the commodity market.
d cost of goods sold 3 T
e operating expenses 4 F – Sales are expected to increase, but profit margins are
f gross profit expected to fall slightly.
g operating profit 5 T
h profit margin
4 Ask students to use their answers from 3 to complete 01

the sentences. Encourage students to use the context to Hi, everyone. Thanks for coming. So you’ve all had
help them identify the appropriate words and expressions. a look at the forecast and now I’ll try to add some
Ask students to compare their answers in pairs before context to the raw data.
checking answers in class. You may then want to draw I’ve already received comments from several
students’ attention to the use of raise in the second and people that the forecast seems a bit pessimistic. I
third sentences. Elicit or explain the difference between understand your concerns but we’re anticipating
rise (to go up) and raise (to make something, e.g. prices, go some major cost issues over the next six months.
up) as these are often confused.
First, we’re seeing significant volatility in the commodity
ANSWERS market at the moment. This will almost certainly cause
a revenue/income, fluctuations price increases in chicken, beef and vegetables. Although
b cost of goods sold our purchasing team are doing a great job at keeping
c operating expenses, operating profit costs down, we expect rises in our direct costs soon. This
d profit margin means we’ve forecasted a considerable rise in the cost of
goods sold in the foreseeable future.
Although we project a sizeable increase in sales of
15% this year, we feel these rises in direct costs
will cause profit margins to fall slightly. We intend
to limit the impact of these cost rises but we’re
restricted as to what we can do.
In Company 3.0 ESP Corporate Finance © Macmillan Publishers Limited 2017 01 Forecasting 7
Secondly, many of our cheese and meat suppliers will 5 Ask students to think about their own company’s
also suffer from the increased cost of animal feed so finances and use their knowledge of it to complete the
we expect significant rises in operating costs. We’re predictions. Be aware of the fact that some students may
planning to introduce cost reductions across all see this information as sensitive or confidential and,
departments to compensate for this. therefore, feel reluctant to share it. If this is the case,
So, as we’re experiencing a number of problems, we tell students that the main focus here is on getting them
need to think about ways to reduce departmental to activate and use some of the vocabulary for financial
budgets. I’ll contact you individually soon to discuss forecasting that they’ve learned so far, and they should
budget changes for your department. make up details about their company (or to talk about a
Thanks. different company that they know well) if they feel more
comfortable doing that. Encourage students to first write
their sentences down and then share them in pairs or in
2 01 Ask students to read the sentences that class. Students can then say whether they agree with each
Katerina says and predict the missing verbs based on what other’s predictions, giving reasons.
they can remember. Draw students’ attention to the fact
that the word in front of the gap tells them what form wExtra activityw
(Present Simple, Present Continuous or Present Perfect)
Model and ask students to practise how to say some of
of the verb they need in the gap. Play the recording so that
the amounts of money in the profit and loss figures from
students can either write in the missing verbs or check
the Over to you activity before they do it. Draw students’
their predictions. If necessary, play the recording again or
attention to the fact that 180,000 is usually spoken as
refer students to the listening script on page 58.
one hundred and eighty thousand in British English and one
ANSWERS hundred eighty thousand in American English. We usually
a anticipating use the plural forms of words for currencies, e.g. dollars.
b seeing Common exceptions are the Japanese yen, where we always
c expect use the singular yen, and the euro, where we can use euro or
d forecasted euros. Students could then ask and answer questions about
e project the profit and loss figures in the Over to you activity to give
f intend them more practice saying bigger amounts of money, e.g.
g planning How much did the company make in sales? – $180,000; What
h experiencing was the cost of goods sold? – $70,000, etc.
3 Check students’ understanding of the meaning of

related to in this context (connected to, including). Then
ask students to use the key content words in the sentences
Over to you
in 2, especially the verbs, to help them categorize them Ask students to work with a partner and decide who
according to their function. Check answers in class. will be Student A and Student B. Ask them to read the
information and follow the instructions. Refer students
ANSWERS
to their respective pages at the back of the book, and give
1 d, e them time to prepare for and roleplay the scenario. You
2 a, c may need to confirm that both students run the same
3 b, h company – Café Cream – but they have different objectives
4 f, g and problems that they’ve identified and want to talk
about during their discussions. Monitor the roleplay and
4 Check the meaning of foreseeable (as far ahead as we give feedback when they’ve finished.
can see) and major (big and important) with students. Ask
them to match the expressions and then compare answers Ask your student to tell you about the profit
in pairs before you check answers in class. Ask students to 1:1 and loss figures for Café Cream. Ask your
note down any words or expressions that are new for them. student to take the role of Student A and you
They can then activate this vocabulary by using it in 5. take the role of Student B. Roleplay the scenario
and give feedback when you have finished. Alternatively,
ANSWERS
using all the objectives and problems, your student could
1 c
take on the role of the sole owner of the business and you
2 e
could take on the role of either their financial advisor or
3 b
bank manager who is giving them advice on how to meet
4 a
their objectives and deal with their problems.
5 d
The cash-flow forecast SUGGESTED ANSWER

On face value, Pizza To Go’s cash-flow situation is quite bad. The
1 Put students into pairs to discuss the questions net cash flow has deteriorated considerably in one month and there
with reference to their company’s cash flow. Encourage is now much less cash in the business. If this situation continues
students to draw on and recount their own experiences of next month, the company could go bankrupt. The major increase
forecasting cash flows where appropriate. Conduct whole- has been in overheads and credit purchases. These could be one-
class feedback. off costs, meaning the cash-flow position will improve but, if they
SUGGESTED ANSWERS represent a permanent change, the company needs more cash to
secure its position. The first step would be to investigate the rea-
a Cash is the ‘blood’ of the business. It’s important to identify when
sons for the increased expenses and find out if they will continue
you can realistically expect to receive payments and when you
next month.
have to make payments, to ensure that you have enough cash at
any one time to finance your liabilities.
5 02 Tell students that they’re now going to listen
b When forecasting cash flow, it’s a good idea to look at whether
to a follow-up call between Paolo and Katerina. Ask
customers are regularly paying on time and the credit periods
them to read the questions, decide and say which of the
you give. This is to ensure you have regular payments coming
changes mentioned in question a they think are the most
into the business. It’s also sensible to look at when you have
serious and why. Tell students that they should formulate
to make payments to ensure you have sufficient money. Other
their answers to question a in the following terms: very
things to pay attention to are changes to sales revenue that
concerned, a little concerned, not very concerned. Then play
affect cash inflows and outflows, debt repayment and possible
the recording and ask students to make notes on their
extraordinary payments, such as repair costs.
answers. Play the recording again if necessary.
2 If you don’t think that this will be a sensitive subject, ANSWERS
you could ask students to think about situations in which a
companies they’ve worked for or they know of have 1 Not very, they think it’s temporary.
experienced cash-flow crises and what the companies did 2 A little. Some of the increase reflects higher costs, but it’s
to deal with them. Divide students into pairs and ask them mainly a result of business expansion.
to brainstorm ideas for things organizations do to deal 3 Very. Overhead increases are caused by higher rents and
with a cash-flow crisis. You could then conduct whole- energy costs and are likely to permanently affect cash flow.
class feedback by asking students to present their mind b Ask the energy company if they can delay payment.
maps to the rest of the class and ask other students to
comment on how feasible or useful they think these ideas
02
are, giving reasons for their opinions. Students may need
some support with vocabulary, e.g. overdraft, sales ledger, Katerina: Good morning, Finance.
factoring, assets, equity. Paolo: Hi, Katerina. It’s Paolo.
Katerina: Hello, Paolo. How are you?
SUGGESTED ANSWERS
Paolo: I’m good. What about you?
organize an overdraft or short-term loan, release some cash in their
sales ledger using factoring, sell assets to release cash on their Katerina: Good, thanks. How can I help?
balance sheet, increase owners’ equity, organize directors’ loans Paolo: Well, thanks for sending the forecast through. I’m
a bit concerned about the numbers.
3 Check the meaning of words in the email which Katerina: I know what you mean, but the downturn
students may be unfamiliar with, e.g. deteriorate (to in sales is probably temporary; it happens every
become worse). Ask students to read the email, paying summer.
attention to the information which would be relevant to a Paolo: That’s true, but what about our outflows? Those
company’s future cash flow. Then ask students to complete numbers are quite shocking.
the cash-flow forecast. They can do this in pairs. Check Katerina: Yes, they are and they’ll definitely have an
answers in class. impact on cash planning.
ANSWERS Paolo: Yes, I was a bit surprised that our purchases
a Inflows are 200,000 higher than last month. How did that
b Outflows happen?
c Overheads Katerina: Well, costs are rising in general, particularly of
d Net cheese, but we certainly won’t have such high costs
e Closing next month. We had to spend a lot this month to
supply some new stores. Costs will most likely be
4 Put students into pairs. Ask them to use the closer to the average next month.
information in the cash-flow forecast to discuss how Paolo: That’s good to hear. What about overheads?
serious the company’s situation is, giving reasons for
their ideas. Conduct whole-class feedback and encourage
students to give specific suggestions.
In Company 3.0 ESP Corporate Finance © Macmillan Publishers Limited 2017 01 Forecasting 9
Katerina: Well, that’s not going to change much. Some 8 This activity gives students an opportunity to
of the increase reflects higher rents, and we’re locked consolidate their understanding of words for expressing
into new contracts for six months. Our research degrees of certainty by creating personalized sentences
suggests rents will possibly rise even further next which incorporate them. Encourage students to write
year. sentences which accurately describe their company’s
Paolo: Oh, that doesn’t sound good. We might need to financial situation as far as possible. If students need
look into cost reductions. And we’re being hit by more support, they could complete the sentences in pairs.
energy prices, too. Alternatively, they can complete the sentences on their
Katerina: Yes, these have risen a lot. We could talk to the
own and then share them in pairs or in class. Monitor
energy company and maybe delay payment on this students as they’re completing the sentences.
until the winter, when sales should start rising. What ANSWERS
do you think? a Costs will certainly increase.
Paolo: That would probably help. Have you got any b Sales will probably fall next month.
numbers on that? c Rents definitely won’t rise this quarter.
Katerina: Yes, I’ll send them over to you. d Maybe sales will rise soon.
Paolo: Great, I’ll have a look at the numbers and get back e We certainly won’t cut prices.
to you. f Overheads will most likely remain the same in June.
wExtra activityw
6 02 You could ask students to predict the missing
words based on what they can remember, and then play Put students into pairs. Ask them to write five or six
the recording so that they can check their predictions. sentences which make predictions about their company’s
Once you’ve checked students’ answers, you may want finances with the words will or won’t and an adverb for
to elicit or draw their attention to the fact that all of the degrees of certainty missing. Give students an example
words they’ve used to complete the sentences are words gapped sentence, e.g. We _____ _____ have such high
which speakers use to show how certain they feel that running costs next year. When students have finished
something will or won’t happen. writing the gapped sentences, they exchange them with
their partner and fill in the gaps with the words they
ANSWERS
think are missing. Each student then reads the sentences
a probably their partner has completed and tells them whether they
b definitely agree with their predictions. Monitor students to make
c certainly sure that they’re using will/won’t and adverbs for degrees
d most likely of certainty correctly in the sentences they complete.
e possibly
f maybe
7 Ask students to read the sentences in 6 and decide how Over to you
sure the speaker feels that the thing they’re describing will
1 Ask students to read the information and follow the
happen. Encourage students to focus on the words they
instructions. Students think about how they could solve
used to complete the sentences to help them decide this.
short-term cash-flow problems at their company, using the
Look at an example with the class and elicit that sentence
ideas given and their own ideas.
a goes in category 2 because the word probably is used to
show that there’s a strong or good chance that something 2 Put students into pairs and ask them to use their notes
will happen. Then ask students to complete the other to discuss possible solutions to the problems. You can
checkboxes before checking their answers. also encourage students to use will/won’t with adverbs for
degrees of certainty to say how likely/unlikely they think
ANSWERS
their or their partner’s ideas are to be successful. Monitor
1 b, c
students’ conversations and give feedback when they have
2 a, d
finished.
3 e, f
1 Ask your student to make a list of possible
Grammar tip 1:1 solutions to short-term cash-flow problems
at their company.
Ask students to read the information about making 2 Get your student to present their ideas
predictions with will/won’t. Make sure students are to you, explaining why they think they would be
aware that we often add adverbs to will/won’t to show successful. Ask the student questions to encourage them
how likely we think it is that our predictions will become to elaborate on their ideas or to clarify anything that’s
reality. Draw students’ attention to the word order that is unclear. Give feedback when you have finished.
used in the example sentences.
02Learning objectives
Budgeting
In this unit, students will practise discussing a
Warm up
Start by drawing students’ attention to the quote from
Jacob Lew. Elicit or explain that Lew thinks that a
budget, explaining budget changes and discussing company’s budget can tell us what they believe in (its
how to reduce spending. They will read a blog values) and what they want to achieve in the future (its
post about fixed and flexible budgets, and emails aspirations). Ask students to answer the question in the
about budget changes. Students will also listen Warm up and then discuss these questions:
to a meeting to approve a budget and a meeting D
●
o you agree with Jacob Lew’s opinion that budgets
about reviewing budgets. The language focus is on express a company’s values and aspirations?
using budget terminology, verbs to discuss budget If you agree, what values and aspirations do you think
●
reductions and question tags. that your company’s budget expresses?

If you disagree, in what ways do you think your
Digital resources: Unit 02
●
company’s budget is disconnected from its values and

Audio; Video; Photocopiable worksheet; aspirations?
Presentation Kit
Background information
Budgeting involves the creation of budgets. These
The right budget
budgets present the planned cash flows in and 1 Tell students that they’re going to read a blog post
out of a company over a given period of time in about different types of budget and elicit the types they
the future. This is an important activity because already know of. Ask students to read the blog post and
monitoring cash flow makes it possible to identify answer the questions. Put students into pairs to discuss
any potential crisis points where cash-flow the questions before checking answers in class.
problems could arise and to take action to deal with
ANSWERS
them. Companies can also create budgets for their
income and expenditure and a capital budget which a fixed (static) and flexible
shows major spending by the company, e.g. on b flexible – they give greater control and enable better
premises, equipment, etc. decision-making
There are many resources online that have been 2 Encourage students to look back at or read the blog
created to provide information about budgeting. post again before they discuss these questions. In order to
Here are some links to get you started: answer question a, students need to differentiate between
http://www.investopedia.com/articles/07/budgeting the facts and opinions in the blog post. You may want to
forcompanies.asp look at an example of this difference with the class – for
example, the second paragraph gives factual information
http://accounting-financial-tax.com/2009/02
about fixed budgets, such as the information that it is
/essential-five-steps-on-budgeting-process/
drafted at the beginning of the accounting period, whereas
the comment that fixed budgets are relatively easy to produce
in the third paragraph is an opinion, which students may
Key terms glossary agree or disagree with. Put students into pairs to discuss
the questions and encourage them to bring in examples
accounting period (noun [countable]) the period
of creating and using budgets from their own experience.
of time which a company’s financial statements are
Conduct whole-class feedback on students’ answers and
prepared for
check that they’re using appropriate vocabulary.
approval (noun [uncountable]) official agreement or
permission, given by someone in authority ANSWER
budget (noun [countable]) the amount of money a b A fixed budget is simple and easy to create. It’s suitable for
person or organization has to spend on something companies that don’t experience big changes in costs or output
draft (verb) to write something such as a legal over the year. A flexible budget better reflects the cost position
document, speech, or letter that may have changes made of companies whose output changes regularly. They’re more
to it before it is finished complicated to create but can provide better control.
draw up (phrasal verb) to prepare and write something
such as a document or plan
expenditure (noun [countable/uncountable]) money
spent by a government, organization, or person
tighten the budget (phrase) to reduce the amount of
money available to spend on something
In Company 3.0 ESP Corporate Finance © Macmillan Publishers Limited 2017 02 Budgeting 11
3 Ask students to read the verb-noun combinations –

03
manage costs, etc. – and to predict the possible missing
verbs in the equivalent expressions. Then get them to look Derek: So, thanks for coming, everyone. We’ve
for the nouns – expenditure, etc. – in the blog post and find consolidated the departmental budgets and come
the verbs that are actually used with them. Ask students to up with a first draft of the budget for this year. Has
compare their answers in pairs, before checking answers in everyone had a chance to look at the draft? Okay, so
class. Elicit or explain that the verbs in the second set are does anyone have any comments?
generally more formal and they’re also examples of more Rachel: It seems quite aggressive, Derek. I mean, we’ve
advanced vocabulary. allocated a lot of money to marketing activities. Is
there a reason for that?
ANSWERS
Maria: If I could come in here, Rachel? We’re launching
a control
two new products this year so we need a large budget
b draft, draw up, produce
to be able to give them a push. We don’t want our
c adjust
campaign to fail because we don’t allocate enough
d reflect
money to it.
e fluctuate
Rachel: Yes, I guess you’re right, but I’m still worried
f enable
about the total spend. Is there anywhere else we can
4 Make sure students know that they may have to change save money?
the form of the verbs they use so that they fit into the Derek: Well, we’re forecasting spending much more on
sentence. Students then complete the sentences, using machine maintenance. Can we do anything to reduce
the context to help them. Ask students to compare their these costs?
answers in pairs, before checking answers in class. Pierre: It’s difficult, to be honest, Derek. We’ve got
another year to run on the contract. I’m not sure we’d
ANSWERS save any money if we cancelled it. We’d have to pay a
a fluctuated big penalty.
b draft / draw up / produce Derek: Okay, thanks, Pierre, but I’m not sure we need
c enable to cut anything at the moment. I think the budget
d adjust, reflect reflects the sales forecast and will allow us to meet all
e draw up / draft; control our main objectives.
Rachel: I understand what you mean, but I don’t want us
wExtra activityw
to overexpose ourselves.
Ask students to use the verbs from 3 to write four or Derek: That’s a good point, but we can keep track of
five personalized sentences about budgeting at their spending and always amend the budget later.
company, or budgeting more generally if they prefer. If Rachel: Okay, that’s good enough. So I’m happy to sign
students aren’t sure what to write, you could give them off on this.
some questions as writing prompts, e.g. What do budgets Derek: Great, does anyone else have any comments?
enable to you to do? What do you consider when you’re
drawing up a budget? What changes do you usually have to
make and why? 2 03 Tell students that they’re going to listen again
and focus on the specific language used in the meeting.
Play the recording and ask students to complete the
Budget approval
sentences. Ask students to compare their answers in
pairs before playing the recording a second time so that
1 03 Tell students that they’re going to listen to a students can check their answers.
meeting of senior managers to agree a budget. You could ANSWERS
ask if they’ve ever been to such a meeting. If they have,
a seems
you could ask them what the atmosphere was like, what
b right
the agenda was and what the outcome was. If they haven’t,
c anywhere
you could ask them to speculate about these three points.
d anything
Ask students to read the sentences and then play the
e we’d
recording so they can decide if they are true or false. Play
f think
the recording again if necessary. After checking students’
g mean
answers, you could ask students how similar this meeting
h point
was to budget meetings that they’ve been to or to their
expectations of such a meeting. 3 Ask students to reread the sentences in 2 and
ANSWERS categorize them according to their function. Encourage
a T
students to focus on the form of each sentence, e.g.
b F
whether it is a question or whether it starts with hedging
c F
language (e.g. I guess, Can we do) to show politeness. Check
d T
answers in class. You may want to point out that using
12 02 Budgeting In Company 3.0 ESP Corporate Finance © Macmillan Publishers Limited 2017
expressions to politely disagree is usually important for answers in class. You could then ask students what they
native speakers of English even though it may not be think about the style Melissa uses in the email, i.e. is it
important in students’ own language or culture. (too) friendly, (too) firm, (too) direct, etc? Do they think
she could have communicated the need to tighten budgets
ANSWERS
more effectively?
1 a, e, f
2 b, g, h ANSWERS
3 c, d a They have to find budget savings of 10%.
b Market volatility means they need to tighten their budget.
4 Tell students that they’re going to complete a c To bring down spending and so ensure continued operations
conversation involving asking for suggestions, giving even if sales fall.
opinions and disagreeing politely. Make sure that students
use words from the expressions in 2 to do this. Ask students wExtra activityw
to compare their answers in pairs before checking answers in
class. You could then ask students to read the conversation Put students into pairs or small groups and ask them
out loud in pairs, focusing on using sentence stress and to make a list of areas where their own company, or
intonation, and polite disagreement appropriately. companies, could cut costs, e.g. travel on business trips,
training courses, energy consumption, office supplies,
ANSWERS recruitment, etc. Students then work together in their
a anything pairs or groups to rank the items in terms of how much
b think money the company could save by making spending cuts
c understand in those areas, and then make a more specific suggestion
d anywhere for each one, e.g. for travel on business trips, a specific
e sure suggestion could be: stop all first-class air travel. When
students have finished, they could present their ideas and
suggestions for cost-cutting to the rest of the class.
Over to you
Ask students to work in groups of three and decide who
3 Ask students to do the matching task and compare
their answers in pairs before you check answers in class.
will be Student A, Student B and Student C. Ask them to
read the instructions and look at the annual budget on this ANSWERS
page. Then refer them to their respective pages at the back a updated
of the book. Give them time to prepare for and roleplay b volatility
the meeting. Monitor the roleplay and give feedback when c tighten the budget
they have finished. If appropriate and there is enough time d find savings
available, ask students to roleplay the meeting again so e bring down spending
different students can be the head of finance. f core
g go over
Get your student to take the role of Student A
1:1 and you take the role of Student B and/or C. 4 Tell students that they’re going to read a reply to
Give feedback when you have finished and then Melissa’s email. Make sure they are aware that they can
do the roleplay again with you as Student A and only fill the gaps with words and phrases from 2 and 3 and
your student as B or C, and then give further feedback. they may need to change the form of any verbs they use.
Encourage students to pay attention to the words that
come before and after the gap to help them complete the
Cutting the budget email correctly. Students can compare their answers in
pairs before you check answers in class.
1 Put students into pairs to discuss the questions. Be
aware that the issue of budget changes and budget cuts ANSWERS
at the company where students work may be a sensitive a gone
one and they may prefer to discuss the questions in b savings
more general terms instead, i.e. How often do companies c bring down
usually have to change their budgets? Which departments d cut
are generally the most commonly affected by budget cuts? If e core
students are happy to talk about their experiences at the f tighten
company where they work, encourage them to draw on
and recount these experiences where appropriate. Conduct 5 Put students into pairs. Tell them to imagine they are
whole-class feedback on students’ answers. Melissa, the finance director, and have just read Simon’s
email. Ask students to consider the following questions:
2 Check the meaning of words in the email which How would you feel if you were Melissa? What would be
students are likely to be unfamiliar with, e.g. tighten the the best approach to take towards Simon? What action or
budget (to reduce or cut the budget) and downturn (a options should she suggest? After students have spent a few
decline in business activity). Ask students to read the minutes thinking about and discussing how Melissa should
email from Melissa and answer the questions. Check
respond, ask them to write Melissa’s reply to Simon. Tell Anton: But Melissa, what if we can’t find the extra money
them to use the same email style that Simon used, i.e. without cutting people? When are we going to have
friendly and less formal, and write an email of similar that conversation?
length. Students could write their emails individually or
Melissa: Well, the market is incredibly volatile at
work with a partner to write one email together. Monitor
the moment and we might have to consider staff
students as they’re writing and give them feedback
reductions, but I want to avoid that. I know it’s tough
when they’ve finished. It’s important that students
but this action now could save jobs later. So, we can
maintain a friendly tone in their emails, that they show
all go over our budgets again and find those little
understanding for Simon’s concerns and that they suggest
extra savings, can’t we?
some kind of meeting or further discussion between
Melissa and Simon or all of the heads of departments.
7 04 Ask students to read the questions and make
SUGGESTED ANSWER notes on their answers based on what they can remember
Hi Simon, from the first time they listened. Play the recording
Thanks for your email. again so that students can listen and check or add to
I understand it can be difficult to find additional savings and we their answers. Ask students to compare their answers in
don’t want to damage our core business. pairs. Monitor students’ conversations and encourage
I’m in my office all day today so we can look at your budget them to use the structure could/should/would + have +
together anytime you’re available. I’m sure we can find some extra past participle in their answers to questions a and b when
savings together. they’re saying what Melissa could or should have done
Best regards, differently or better, or what they would have done if they
Melissa were Melissa. Conduct whole-class feedback.
6 04 Tell students that they’re now going to listen SUGGESTED ANSWERS
to the meeting between Melissa and the heads of other a Melissa handles the meeting fairly well. She acknowledges
departments in which she tries to convince them that people are unhappy, gives everyone an opportunity to speak and
the budget needs to be cut. Ask them to look at the three provides advice.
options and predict which one is likely to be the best b Maybe she could have given more background to convince
summary for the meeting. You could also ask students everybody that her request is necessary.
which option would be the most likely outcome in a c She says that finding savings now could help avoid making staff
meeting like this at the company where they work. Then cuts.
play the recording so students can listen for the gist of the
conversation and check their answer. 8 05 Tell students that they’re going to listen
to extracts from the meeting and focus on the specific
ANSWER language that Melissa uses. Before you play the recording
b again, you could ask students to predict the missing words
based on what they can remember and what they already
04 know about the type of language used in these situations.
Then play the recording so that students can check or
Melissa: Thanks for coming, everyone. I know people are
complete their answers. Check answers in class.
a little upset with my request to cut 10% from your
existing budgets and I thought it might be a good ANSWERS
idea to talk about it. a understand, I’m afraid
Simon: Yes, you’re asking a lot, Melissa. I mean our b extremely unpredictable, just don’t know
initial budgets were down on last year anyway, and c incredibly volatile
now you want us to cut them again. It’s impossible. d might have to, I want to
Melissa: I understand how you feel, Simon, but I’m afraid e tough, save
it’s necessary. We’re in an extremely unpredictable
business environment and we just don’t know what 05
will happen. Keeping money back is better than
having to find savings later, isn’t it? a I understand how you feel, Simon, but I’m afraid it’s
necessary.
Simon: I guess.
b We’re in an extremely unpredictable business
Melissa: Does anyone else have any concerns?
environment and we just don’t know what
Anya: Yes. I’ve gone over the numbers again and again
will happen.
but I just can’t find 10%. I might have to look at
staffing costs. c Well, the market is incredibly volatile at the moment
and …
Melissa: I wouldn’t do that just yet, Anya. That’s not
something we’re considering. Come and see me later d … we might have to consider staff reductions, but I
and we can have a look at your budget. We definitely want to avoid that.
don’t want to start cutting people, do we? e I know it’s tough but this action now could save jobs
later.
14 02 Budgeting In Company 3.0 ESP Corporate Finance © Macmillan Publishers Limited 2017
9 Check the meaning of empathy (an understanding of

06
how other people feel). You may also want to clarify that
here wider reasons refers to what is happening outside a Keeping money back is better than having to find
of the company in the wider world. Ask students to look savings later, isn’t it?
out for language which shows understanding of other b We definitely don’t want to start cutting people,
people’s feelings, refers to the wider world or refers to the do we?
future as they reread the sentences from 8 and categorize c So, we can all go over our budgets again and find those
them according to their functions. Students can compare little extra savings, can’t we?
answers in pairs before you check answers in class.
ANSWERS 12 As they’re adding tag questions, remind students
1 a, e of what they’ve learned about combining a positive
2 b, c statement with a negative question tag and a negative
3 d statement with a positive question tag. Students also
need to ensure that the question tag they add uses the
10 Elicit or explain that question tags are short same tense or the same modal as the statement. Make
questions that we add on to the end of statements. They’re sure students know that a form of the verb do is used in
usually used in spoken rather than written English to question tags that follow the Present Simple statements
invite participation in the conversation from listeners, using a main verb. Check answers in class when students
or to encourage listeners to affirm or agree with the have added all of the question tags.
statement that the speaker has just made. Ask students to
ANSWERS
read the example sentences with question tags from the
meeting and then use them to choose the correct options a isn’t it?
in the rules. Students can do this in pairs. Check answers b don’t we?
in class and answer any further questions students have c can we?
about how to use question tags. d don’t you?
e won’t it?
ANSWERS
1 negative
2 More persuasive. When you make a statement and ask people Over to you
if they agree, they naturally want to say yes. This is a common
Divide the class into A/B pairs. Ask students to turn to
rhetorical device.
their instructions in the Additional material and read
11 06 Elicit or explain that intonation is the them carefully. Ask them to make notes on possible
rhythm of someone’s voice when they speak. Intonation reasons they could give to explain the situation and what
can go up or down – sometimes several times – while strategies and language they can use to persuade their
someone is saying a sentence. Ask students to read the partner to agree with their position. Encourage students
sentences in 10 again and then play the recording and ask to plan to use question tags to make their points more
students to use arrows to show whether the intonation persuasive. They then take it in turns to present their case
rises or falls at the end. Check answers in class and model and try to convince their partner to agree with it. Students
and drill the sentences with the correct intonation if should aim to reach a consensus or a compromise about
necessary. Elicit or explain that we usually use falling the action they should take.
intonation if we expect agreement and rising intonation if
it’s a more genuine question. Proceed with your student taking the role of
1:1 Student A and you taking the role of Student B.
ANSWERS Give feedback when you have finished.
a intonation falls
b intonation falls wExtra activityw
c intonation falls
Ask students to write a follow-up email to the partner
they worked with in the Over to you activity. If students
failed to reach an agreement during the roleplay, they
can write a follow-up email in which they show their
understanding of their partner’s position and suggest a
possible compromise or a further meeting to discuss the
issues again. If students did reach an agreement, they
can summarize the points they agreed on and suggest
or outline the steps to be taken next in the process of
dealing with the budget issues.
2 Tell students they’re now going to watch the
01–02 Video
section on The importance of cash flow, with Alex, who
works for a recruitment company, and Sumeer. Ask
students to read the list of statements before they watch.
You could also ask them to predict who has which opinions.
Before you watch

Then play this section and ask students to write A or S next
to each statement. Play the section again if necessary.
1 Tell students that they’re going to watch a video ANSWERS
about forecasting and budgeting, but first they’re going
a A b
S c A d
A e S f
S
to discuss some questions which will help to make
their listening more focused while they’re watching. wExtra activityw
Ask students to read the questions and make notes on
their answers to them. There may be a large number of Put students into pairs. Ask them to read the statements
factors which drive some of the issues mentioned in the in 2 again and decide which statements they agree
questions, e.g. sales figures and cash flow, but encourage with most. Students can then tell each other which
students to focus on the most significant or influential statements best reflect their opinions, giving reasons
ones. Then ask students to use their notes to discuss the for their opinions and bringing in examples from their
key drivers at their company in pairs. If both students own experiences where appropriate. Conduct whole-class
in a pair work at the same company, they can compare feedback on which statements students most agree with
their ideas and say whether they agree with each other. and why.
If the two students in a pair work at different companies,
encourage them to ask each other questions about the 3 Tell students that in the section on The budget
drivers they mention after they’ve listened to each other process, Alex talks about the process of putting a budget
present them. together. Check the meaning of mindful (being aware of
something or keeping it in mind). Ask students to read the
2 In the same pairs, students discuss the importance gapped summary before they watch and predict what the
of business drivers for companies when they’re planning
missing words could be, paying attention to which words
their budgets, giving reasons for their answers. Students
come before and after the gaps. Then play this section
can also think about what the most significant business
and ask students to complete the summary. This is quite a
drivers are when it comes to budgeting – do some have a
short section, so you may need to play the recording more
greater influence than others? If so, why is that?
than once.
ANSWERS
While you watch a mindful
1 Tell students that they’re going to watch two b liabilities
interviews – one with Andy and one with Sumeer – in c year
which they talk about the factors their companies take d take into account
into account when they’re forecasting for the next quarter. e tax to pay
Andy works for an insurance brokers and Sumeer works in
4 Tell students that they’re going to watch the
publishing. Play the section on Forecasting and budgeting
section on Making cuts in which Alex and Sumeer discuss
and ask students to watch and make notes on their
how they think companies should deal with spending cuts.
answers to the questions. Students can then compare
Before students watch the video, ask them to read the
their answers in pairs before checking answers in class.
statements, and check the meaning of discretionary spend
You could then ask students how similar the factors Andy
(the amount of money that companies spend on things
and Sumeer mention are to the factors that influence
which are not essential for the running of the business),
forecasting at their company which they discussed in the
which students will hear in this section. Play this section
previous exercise.
all the way through and ask students to mark the
ANSWERS statements true or false and then write correct versions of
a Lump sum figures like capital gains tax payments and personal the false statements. Ask students to check their answers
tax payments because they have a big effect on your cash flow. in pairs before checking answers in class. Make sure
b The business drivers, because focusing on business drivers students are aware that admin is a common abbreviation
leads to accurate results. for administration.
16 VIDEO UNITS 01–02 In Company 3.0 ESP Corporate Finance © Macmillan Publishers Limited 2017
01–02
ANSWERS
Review
a F – He thinks it’s better to look at admin costs.
b T
c T
d F – There are always impacts – cutting marketing may affect
revenue, cutting travel and entertainment may affect the morale
This review section gives students an opportunity to
of the staff (which could also have an effect on revenue).
consolidate what they’ve learned and do some further
practice with the language and content of Units 01 and
5 Check the meaning of initial (first, original)
02. You could use these sections in class after completing
with students. Ask students to read the questions and
these units or later in the course as a review activity.
then play the last section in which Alex talks about what
Alternatively, you could assign them as homework or use
he learned about budgeting when he first started his
them to help students who’ve missed a lesson to catch up
company. Students make notes on their answers. Check
with the rest of the group. After students have completed
answers in class. You could then ask students whether they
the exercises, ask them to go through the checklist as a
or a company they’ve worked for have ever experienced
reminder of what they have covered in these two units.
anything similar to what Alex experienced during his first
year of trading and, if so, whether the same action was
taken to deal with it. 01 Forecasting
ANSWERS ANSWERS
a He was being very optimistic. 1
b He learned to manage his expectations. It can be good because a margin, income c operating, gross, profit
your targets may be too big for your business to handle. b cost of goods sold, revenue d fluctuations
2
a anticipate b predict c intend to d experiencing e plan to
Finance speak 3
Across 5 opening balance
Students are now going to review and check their
Down 1 closing balance 2 cash inflows 3 net cash-flow
understanding of some of the specific items of financial
4 cash outflows 5 overheads
vocabulary they heard in the video. If students aren’t sure
4
about the meaning of all of the items in the box, encourage
a It seems that the shortfall probably won’t be big.
them to start with the items they do know and then use
b We definitely need to increase cash receipts.
the context of the remaining sentences to deduce what the
c Maybe we will have a problem with operating cash flow.
missing words could be. Students can also work in pairs
d Our cash disbursements are certainly too high.
to complete the sentences. Check answers and encourage
e The opening balance is possibly wrong.
students to note down any vocabulary that they want to
remember for future reference.
ANSWERS
02 Budgeting
a lump ANSWERS
b damage 1
c lending a drafting b adjust c reflect d control e enables
d overtrading 2
e discretionary a It seems like a good idea.
f manage b Can we do anything to reduce costs?
c I’m not sure it will / would save money.
d They think the budget reflects the sales forecast.
After you watch e That’s a good point but we can change it later.
3
Students could discuss the questions either with a partner
a We need to tighten the budget.
or in small groups. Encourage students to give and explain
b How can we bring down / reduce costs?
their own opinions when responding to question a,
c We need to focus on our core business.
giving examples from their experiences and working lives
d There’s a lot of market volatility at the moment.
when responding to question b. Give students about five
e The savings will enable greater investment.
minutes to discuss the questions and then conduct whole-
4
class feedback.
a It’s a good idea, isn’t it?
b You agree with me, don’t you?
c We can save a lot of money, can’t we?
d It’ll work, won’t it?
e You’re very confident about the sales forecast, aren’t you?
f We can do it next week, can’t we?
In Company 3.0 ESP Corporate Finance © Macmillan Publishers Limited 2017 REVIEW UNITS 01–02 17
03
Learning objectives
Managing payments
In this unit, students will practise following up
Warm up
Start by drawing students’ attention to the quote. Ask
students to discuss the questions in the Warm up. Elicit
outstanding payments and negotiating payment or explain that Shakespeare thinks that both borrowing
extensions. They will read payment reminder emails and lending money are activities that people should avoid.
and internal emails discussing cash-flow issues. Check students are aware of the difference in meaning
Students will also listen to telephone calls following between the verbs borrow (to take something from
up late payers and a telephone call renegotiating someone for a short time before giving it back to them)
payment terms. The language focus is on using and lend (to give someone something which you expect
accounting terminology, payment terminology, them to give back to you after a short time). Then ask
negotiating expressions, and modal verbs for students these questions:
possibility and requests. ●
H ave you or has your company ever experienced
problems as a result of borrowing or lending money?
Digital resources: Unit 03 ●
Has borrowing or lending money ever brought you or
Audio; Video; Photocopiable worksheet; your company any benefits and advantages?
Presentation Kit
Accounts receivable
1 Ask students if they’ve ever had the experience that a
In this unit, students will look at what people working
customer hasn’t paid their company – the answer is likely
in finance can do to obtain payments from customers
to be a universal yes. Ask students to note down their ideas
and how they can renegotiate payment terms with
for what companies should do in this situation. Encourage
their suppliers when their company is having cash-
them to draw on their own experiences of what they or
flow problems. In accounting, accounts receivable
their company tends to do in such a situation and come up
refers to the money that customers owe a company,
with some specific examples of actions taken.
i.e. the money a company should be receiving,
whereas payments that a company is obliged to make 2 Put students into pairs and ask them to compare and
to others are referred to as accounts payable. discuss their ideas. Students could then put their ideas
There are many resources online that have been together to create a ranking list of the three or four best
created to provide information about accounts options that companies have if a customer hasn’t paid.
receivable and accounts payable. Here are some Conduct whole-class feedback on what students think
links to get you started: companies should do and which ideas or strategies they
think are the most effective and why.
http://blog.fundinggates.com/2012/01/receivables
-management-5-reasons-why-customers-pay-late 3 If appropriate, look at an example with the class and
-and-the-solution-to-each-case-2/ elicit or explain that in sentence a, the correct option is
https://www.suntrust.com/resourcecenter/article follow up on, which means to take action in response to
/four-steps-to-better-manage-customer-and-supplier something that has or hasn’t happened. Check the meaning
-payment#.V7r4A_l97IU of suspend and reinstate. Students then decide which the
correct options in the remaining sentences are. They can do
this in pairs. Check answers in class.
Key terms glossary ANSWERS

a follow up on c suspend e review
in arrears (phrase) late in making a regular payment b Charge d reinstate
in default (phrase) the position of someone who has not
done something that they were officially ordered to do 4 In the same pairs, students say whether they agree with
penalty (noun [countable]) a punishment for breaking a each sentence in 3 or not. Tell them to give reasons, bringing
rule or law in examples from their own experiences of dealing with late
reinstate (verb) to start using or having something such paying customers where appropriate. Students may feel that
as a law or benefit again the advice needs some slight modification before it would be
settle (verb) to pay all the money that you owe to a relevant to their context or before they could agree with it,
particular person or company for example: You should follow up on unpaid invoices on the day
shortfall (noun [countable]) a lack of something that after they are due. If this is the case, you could ask them to
you need or want, or the amount that you lack modify the sentences from 3 accordingly.
suspend (verb) to officially remove the authority or
effectiveness of something for a time
18 03 Managing payments In Company 3.0 ESP Corporate Finance © Macmillan Publishers Limited 2017
5 07
Tell students that they’re going to listen to Customer: Okay, then we’d better pay as soon as possible.
three different phone conversations between an accounts- I’m sorry about the mix-up. I’ll sort it out immediately.
receivable manager and customers. Before playing the Linda: I’m happy to hear that. Thanks, bye.
recording, ask students to read the three summaries and Customer: Bye.
check the meaning of in default (the state of having failed 3
to pay money that you owe). Then play the recording for
Customer: Good morning, Blake’s Ltd. How can I help
students to match the summaries to the conversations.
you?
If necessary, play the recording again before checking
Linda: Could I speak to Karen White, please?
answers in class.
Customer: Speaking.
ANSWERS Linda: Good morning, Karen, this is Linda Martin at
a 3 b 2 c 1 Greenwich Design. Your invoice number WK23467 was
due for payment last Friday but we haven’t received
07 anything. I was just calling to check if you’d paid it.
Customer: I’ll need to check on our system, just a minute.
1
Linda: Okay.
Customer: Good morning, AP Turner, how can I help you?
…
Linda: Could I speak to Mike Hampton, please?
Customer: Hello?
Customer: Speaking.
Linda: Hello?
Linda: Good morning, Mike. This is Linda Martin at
Customer: Yes, I’ve had a check and that invoice is
Greenwich Design. I’m calling about invoice number
scheduled for this Friday’s payment run. I can see the
WK66754. The payment is now two months overdue.
due date was last Friday. I’m not sure what happened
We called you on the 15th and arranged an instalment
there.
plan but we haven’t received any payments.
Linda: Okay, but you can confirm it’ll be paid this week?
Customer: Ah, yes, I’m really sorry. We’ve had some
Customer: Yes, you’ll receive payment this Friday.
cash-flow issues. We should be able to make the first
payment really soon. Linda: Okay. That should be fine. I’ll just make a note of
Linda: I understand you have some problems, Mr

that on our system.
Hampton, and we have tried to be flexible with you Customer: Great. I’m sorry about that. I don’t know what
but I’m afraid we must insist on payment of the happened.
outstanding amount. Linda: No, that’s fine. As long as it’ll be paid this week.
Customer: Yeah, I know. We’re trying to find some cash Customer: Yes, absolutely.
for you. If we could just have a few more weeks? Linda: Okay, thanks, bye.
Linda: I’m afraid that’s not possible, Mr Hampton. As Customer: Thanks, bye.
stated in our credit policy, we have suspended your
account, and this call will be followed by an email 6 You may want to play the recording for students again
requesting payment. I’m sorry to tell you that if that or refer them to the listening script on page 59 so that
email is ignored, we will have to consider selling your they can focus and make notes on how well Linda manages
debt to a repossession company. each call. If students are unsure about how to assess this,
Customer: Okay, I understand. We’ll try to come up with you could suggest that they consider Linda’s politeness,
some money. assertiveness, how clearly she communicates the facts of
2 the situations, how the customer responds to her and the
Customer: Good morning, Global Solutions. How can I outcome of each conversation. Put students into pairs to
help you? discuss how well Linda manages each call, giving reasons
Linda: Could I speak to Mark Morris, please? for their opinions, and then conduct whole-class feedback.
Customer: Speaking.
SUGGESTED ANSWER
Linda: Good morning, Mark, this is Linda Martin at
Linda manages the calls well. She is polite but assertive and gives
Greenwich Design. I’m calling about your invoice the facts of the situation. She tells the customer clearly what the
number WK43567. I’m afraid the invoice is now two situation is in each case and the consequences of non-payment but
weeks overdue. remains reasonable in each case.
Customer: Really? Is it?
Linda: Yes, I’m afraid it is. We contacted you on the 12th 7 08 Tell students that they will need to use all of
to remind you but we still haven’t received payment. I the words in the prompts to write the sentences Linda
was just calling to check if there was a problem. uses and also add words and change the form of some of
Customer: No, there’s no problem. I’ll add it to our the verbs. Ask them to write the sentences, some of which
payment run this week. Probably just a mistake. they might remember from the recording in 5. They could
Linda: Well, I’m happy to hear that. I’m afraid I do need check answers in pairs before you play the recording for
to remind you that according to our credit policy, we them to check. Give positive feedback for correct sentences
do charge 2.5% interest on overdue payments. that don’t match exactly what Linda said.
In Company 3.0 ESP Corporate Finance © Macmillan Publishers Limited 2017 03 Managing payments 19
ANSWERS SUGGESTED ANSWERS

a I’m calling about invoice number WK66754. a As late payment can become a legal issue, it’s a good idea to
b I’m afraid we must insist on payment of the outstanding amount. provide a written record of the delay. Therefore, writing to late
c As stated in our credit policy, we have suspended your account. payers is essential.
d This call will be followed by an email requesting payment. b It’s a good idea to send at least two reminders to demonstrate
e I’m afraid the invoice is now two weeks overdue. that you have been fair and given the customer time to pay. It’s
f We contacted you on the 12th to remind you but we still haven’t standard in many companies to send three reminders.
received payment. c As a debt becomes more overdue, it’s common to introduce
g I was just calling to check if there was a problem. penalties, such as suspension of credit or interest charges.
h Your invoice number WK23467 was due for payment last Friday.
2 Tell students that all three emails were written to a
late payer (Mr Walker) by someone who works in accounts
08
receivable (Judy). Over the three emails, we see the progres
a I’m calling about invoice number WK66754. sion from the first contact to let the customer know that the
b I’m afraid we must insist on payment of the payment is overdue to two later emails, where she gradually
outstanding amount. puts more pressure on him to pay and introduces more severe
c As stated in our credit policy, we have suspended consequences if he doesn’t. Ask students to read the emails
your account. and identify the order in which the emails were written.
d This call will be followed by an email requesting ANSWERS
payment. First email: B Second email: A Third email: C
e I’m afraid the invoice is now two weeks overdue.
f We contacted you on the 12th to remind you but we 3 Ask students to reread the emails from 2 and identify
still haven’t received payment. the language which helped them to decide in which order
g I was just calling to check if there was a problem. the emails were sent. They should focus on the specific
h Your invoice number WK23467 was due for payment words or phrases the writer uses to show either that this
last Friday. is a routine email or that the payment still hasn’t been
made. They can also focus on the content of the emails and
the more serious consequences Judy mentions. Students
8 Here, students focus on how people convey the urgency discuss their ideas in pairs. Conduct whole-class feedback.
of the need to pay and the differences between making
neutral, routine calls regarding accounts receivable, calls SUGGESTED ANSWER
to late payers and calls to very late payers. Ask students Email A says ‘We’re writing again’, implying they have already been
to match the sentences in 7 to the appropriate situations. contacted about this. Also, as the debt becomes more overdue, the
Check answers in class and ask students to give reasons writer starts setting deadlines and talking about harsher penalties.
for their choices, e.g. the sentence I’m calling about invoice
number WK66754 simply states the reason for the call – to 4 These sentences are based on the emails in 2, so ask
discuss an invoice – and could, therefore, be used in any students to cover these as they’re writing the sentences.
call from accounts receivable. Students can then check their answers by looking at the
emails in 2 before you check answers as a class. You may want
ANSWERS to draw students’ attention to the use of the passive with
1 a, g 2 e, f, h 3 b, c, d will in sentence e (will be added). Elicit or explain that passive
forms are often used in emails concerning sensitive or
wExtra activityw difficult requests as they help to create a more neutral tone.
Put students into pairs and ask them to read the listening SUGGESTED ANSWERS
script on page 59 for phone call 1 in 5 on page 16. Linda a Our records show (that) your invoice is overdue.
says the call will be followed by an email requesting b The balance for your invoice is overdue.
payment. Ask students to work together to write the c Could you please make payment as soon as possible?
email to Mike Hampton at AP Turner, stating what has d If you have paid the balance, please disregard this email.
happened with the payment so far and what is going to e If we haven’t received / don’t receive payment within seven days,
happen. When they have finished, ask them to compare a charge of 2% will be added to your account.
emails with another pair.
Over to you
Put it in writing
1 Ask your student to tell you what their
1 Put students into pairs to discuss the questions. Be 1:1 company does in the two situations given.
aware that some students will be able to draw more on Listen and ask questions.
their experiences and have more fully formed opinions 2 Get your student to take the role of Student
than others. If students are happy to talk about their A and you take the role of Student B. Give feedback when
experiences at the company where they work, encourage you have finished. Ask your student to write a follow-up
them to do this. Conduct whole-class feedback. email for Scenario 1.
Accounts payable wExtra activityw

1 Ask students to read the statements about companies Ask students to think of two suppliers that their
making payments to their suppliers. Then put them into company buys from and decide which one they could
pairs to discuss which statements they agree with and most successfully renegotiate payment terms with.
why. Make sure they know that there are no right or wrong Students can do this in pairs or small groups. They can
answers and they should feel free to express whatever start by making notes on the key pieces of information
opinion they have as long as they can justify it. Conduct about each supplier which would be relevant for
whole-class feedback on students’ opinions and the renegotiating payment terms, e.g. how long the company
reasons for them. has been buying from them, the existing payment terms
that they have, how much the company buys from them,
2 Tell students that they’re going to read an email etc. In their pairs or small groups, students then use
conversation between two colleagues – Colin and Sarah – in this information to discuss which company they should
which they discuss renegotiating payment terms with a choose and reach a consensus on this. The pairs or groups
supplier. Ask students to read the emails and use the context can then give feedback to the rest of the class on which
to help them fill in the gaps. Ask students to compare their company they chose and why.
answers in pairs before checking answers in class.
ANSWERS
5 Put students into pairs to discuss the questions. You
may want to help students by breaking the two questions
a vendor c delay e track
g authorize
down a little more. For example, when they’re considering
b purchase d run f terms h payment
their answer to question a, students can think about why or
3 Ask students to reread the email chain and make in which situations companies would want to renegotiate
brief notes on their answers to the questions. Ask them payment terms with suppliers and what advantages
to compare and discuss their answers in pairs before this would/could bring. When they’re considering their
checking answers in class. You could then ask students answer to question b, they can think about the best way
whether they’ve ever had similar conversations – by email to renegotiate payment terms with a supplier and what
or verbally – with their colleagues about renegotiating steps people working in finance should take when they do
payment terms with suppliers and whether they would do this. During the discussion, students can bring in examples
anything differently to Colin and Sarah, giving reasons for from their own experiences of dealing with suppliers where
their answers. appropriate. Conduct whole-class feedback.
ANSWERS 6 09 Tell students that they’re going to listen to a

a short-term cash-flow issues
telephone conversation between Louise (AJ Thompson)
b identify payments over £10,000
and Colin (Bentons) in which he asks for an extension on
c renegotiate payment terms with one of the companies and, if
the payment his company has to make. Play the recording
necessary, offer a partial payment of 10%
and ask students to listen and make notes on their answers
to the questions. Ask students to compare answers in pairs
4 Ask students to read the information about the two before checking answers in class. Elicit or explain that in
companies. They may find it helpful to underline or this context the word outstanding, as in outstanding invoice
highlight key pieces of information to help them when or outstanding balance, means not yet paid.
they’re deciding which supplier to choose, e.g. for AJ ANSWERS
Thompson: key partner, net 90-day terms, never missed
a a week
a payment, one of the largest logistics companies in the
b three days
country. Put students into pairs to discuss which company
c To make a partial payment of 10% this Friday and pay the
would be the best one to try to renegotiate payments
outstanding balance next Friday.
terms with, giving reasons for their answers. Conduct
d To confirm the offer in writing.
whole-class feedback.
SUGGESTED ANSWERS
09
It would probably be easier to get AJ Thompson to agree to extend
payment terms. Louise: Good morning, Finance, Louise Clark speaking.
They are a larger company so have less pressure on their cash flow Colin: Hello. This is Colin Barker from Bentons. I’m
as they have regular inflows. calling about an outstanding invoice.
You have a strong relationship with them and they would want to
Louise: Okay, do you have the reference number?
protect that.
Colin: Yes, it’s AT56432 K.
On 90-day terms, a short delay will not have a major effect on their
Louise: Thanks, I’ll just get it up on the system.
cash flow.
Energis is a smaller company so has fewer inflows, meaning any Colin: Okay.
delay will probably put greater pressure on their cash flow. Louise: So the invoice is for delivery services over the
You have not done business with them for very long and only do last three months and the payment date is this
business by contract. These are weak reasons to preserve the Friday. Is that right?
relationship with you. Colin: Yes, that’s right.
In Company 3.0 ESP Corporate Finance © Macmillan Publishers Limited 2017 03 Managing payments 21
Louise: So how can I help you? could check answers in class by asking students to read the
sentences aloud using the correct pronunciation, sentence
Colin: Well, we’re having a short-term cash-flow issue
stress and intonation.
and we were wondering if you could extend the
payment terms just a little. ANSWERS
Louise: Okay, is this just a one-off or do you want to a wondering, a little e could
renegotiate terms on a more permanent basis? b one-off, basis f What if, offered
Colin: I think we’ll just need to move this payment date c we could, would be g might
on a few days. If we could extend it by a week, it d would be h can confirm, in writing
would be a big help.
Louise: I’ll just see if that’s possible. Could you hold on? 9 Check the meaning of weak agreement (agreement
Colin: No problem.
which isn’t very enthusiastic or strong). Then ask students
to reread the sentences in 8 and categorize them according
…
to their function. Check answers in class. You may then
Louise: Hello?
want to draw students’ attention to the use of indirect
Colin: Hello? language in the sentences for making a request or offer,
Louise: I just spoke to my boss and it would be difficult e.g. We were wondering if …; If we could …, that would …;
to extend terms by a whole week. We could extend What if …? Elicit or explain that this indirect style of
them by three days but no more. Sorry. communication is widely used by native speakers of
Colin: Okay, what if we offered a partial payment of 10% English, especially in situations where the speaker or
this Friday and paid the outstanding balance next writer sees themselves as making a big demand or where
Friday? they have less power than the person they’re addressing.
Louise: That might be possible. Let me check.
ANSWERS
Colin: No problem.
1 a, c, e, f, h 2 d 3 b 4 g
…
Louise: Hello?
Colin: Hello? Grammar tip
Louise: Okay, if you can confirm the 10% partial Ask students to read the information in the box about
payment in writing, we can accept that. We’ll send modals for possibility and how we use could to make
you a statement of the outstanding balance, which requests. Translating modals into students’ first language
you’ll pay next Friday. Is that right? usually isn’t helpful and may even cause confusion as
Colin: That’s great. I’ll send the confirmation now. direct equivalents may well not exist, so discourage
Thanks for your help. Bye. students from doing this.
Louise: Bye.
wExtra activityw
7 You may want to play the recording again for students Put students into pairs. Students write five or six sentences
to make notes on how effectively Colin and Louise or questions which a supplier or their customer could use
negotiate. Conduct whole-class feedback and ask students in a payment negotiation, with the modal verbs missing.
to give reasons for their answers. Encourage students You could give students this sentence as an example: If
to use the structure could/should/would + have + past you ____ put that in writing, that would be great. (answer =
participle to say what Colin and Louise could or should could). Then students exchange their gapped sentences with
have done differently or better in this situation, or what each other and fill in the gaps with the modal verbs they
they would have done if they were Colin or Louise. think are missing. Students can then check their answers in
pairs and give each other feedback on how many they got
SUGGESTED ANSWER
right. Monitor students to make they are using the modals
Colin negotiates fairly well. He explains the situation fully. He correctly while they’re checking each other’s answers.
pushes for what he wants and offers a compromise to resolve
the situation. He could have pushed Louise when she refuses his
request and he might have asked for the reason for the refusal. Over to you
Louise also negotiates fairly well. She finds out the scope of the Ask students to work with a partner and decide who will
extension and explains her limits reasonably. She asks for confirma- be Student A and Student B. Ask Student A to look at
tion before agreeing to an extension, which means that if there are their information on page 19 and refer Student B to their
problems later, she is not solely responsible. information on page 49. Give students time to prepare
for and roleplay the phone calls. If time is short, students
8 09 Tell students that they’re going to listen again could just make one of the phone calls. Monitor the
and focus on the specific language used in the negotiation. roleplays and give feedback when they have finished.
Before you play the recording again, you could ask students
to predict the missing words based on what they can Get your student to take the role of Student A
remember and what they already know about the type of 1:1 and you take the role of Student B. Give
language used in these situations. Then play the recording feedback when you have finished.
so that students can check or complete their answers. You
Reporting financial
information
In this unit, students will practise talking about
inventory (noun [uncountable]) the stock of goods in a
warehouse or storeroom
liabilities (noun [plural]) the amounts of money that a
company owes
changes to the financial position of a company and
P&L (noun [countable]) profit and loss statement: a
presenting slides. They will read financial statements
summary of the amount of money that comes into and
and listen to a presentation of the general company
goes out of a company in a period of time
finances and a presentation of inventory problems.
utilities (noun [plural]) public services such as gas,
The language focus is on language for financial
water, or electricity that are used by everyone
statements, describing change, presentation
language and contrasting expressions.
Warm up
Digital resources: Unit 04 Start by drawing students’ attention to the quote from
Audio; Video; Photocopiable worksheet; Benjamin Franklin. If necessary, clarify that a leak is a
Glossary; Answer key; Listening script; Teacher’s hole in a container, ship or boat through which water
Presentation Kit can flow. Ask students to discuss the questions in the
Warm up. Then ask them these questions:
Background information ●
D o you agree that little expenses can be dangerous?
Reporting involves the recording of information
Have you ever experienced this in business or in your
about a company’s finances in the form of financial
personal life?
statements. The two most commonly used financial ●
Are some little expenses more dangerous than others?
statements are the profit and loss account (also ●
W hat is the greatest threat to the financial stability of
known as the P&L account) and the balance sheet.
companies in your industry is at the moment?
It’s important for all companies and businesses
to report on their finances so that they’re able to
keep track of how much money is going in and out
of the business and plan for the future. However,
Financial statements
if a company is a public limited company or the 1 Tell students that they’re going to start by looking
equivalent thereof, or a private limited company of at financial statements and, specifically, the two most
a certain size or the equivalent thereof, it is usually commonly used types of financial statement: a profit and
legally obliged to compile and publish the results of loss account, which gives information about a company’s
its financial reporting. income and its losses and debts with the resulting net
profit; and a balance sheet, which summarizes the value
There are many resources online that have been
of a company’s assets, liabilities and shareholders’ equity
created to provide information about reporting
at a given point in time. Put students into pairs to discuss
financial information. Here are some links to get
the questions. If students’ answer to the first question is it
you started:
depends, ask them to explain what it depends on. Encourage
http://study.com/academy/lesson/what-is-financial students to share examples of their own experiences of
-reporting-purpose-statement-examples-analysis.html working with financial statements and how they are used,
http://accounting-simplified.com/financial where appropriate. Conduct whole-class feedback.
/statements/types.html ANSWER
a Financial statements are used internally to review and control
costs and expenditure and to provide an overview of the financial
Key terms glossary position of the company. They’re also widely used by investors to
consider the financial position of the company and whether it is
balance sheet (noun [countable]) a written statement worth investing in.
showing the value of a company at a particular time
days sales inventory (noun [countable]) a ratio that is wExtra activityw
calculated by dividing the number of days in the year by the
number of times that a company sells all of its inventory If possible (and appropriate), ask students to show
depreciation (noun [countable]) the value an asset loses you financial documents that they work with, either in
over time English or in their own language. Alternatively, you could
EBIT (noun [uncountable]) earnings before interest and download and print examples of financial documents
taxation from the Internet and bring them to class. Ask students
fixed asset (noun [countable]) something a company to say what type of document each one is and then
owns and uses but does not sell, for example machines, summarize the information that the document contains
buildings, or land and say what this information tells us about the state of
the company’s finances.
In Company 3.0 ESP Corporate Finance © Macmillan Publishers Limited 2017 04 Reporting financial information 23
2 Students are now going to look at an example of a compare answers in pairs before checking answers in class.
balance sheet and a profit and loss account in more detail. Draw students’ attention to the fact that we usually form
Although students will most likely already be very familiar an adverb by adding -ly to the end of the adjective, but
with these documents in their first language, some of the when an adjective ends in -y, like steady, we remove the -y
English terminology may be new to them. As students are and add -ily.
completing the financial statements, encourage them to
ANSWERS
look for words in the statements which could be combined
(adverb forms in brackets)
with the words in the box (e.g. operating expenses is a
Big Change: massive (massively), significant (significantly)
possible word combination) and to use the figures they
Small Change: slight (slightly), marginal (marginally)
see and the position of the gapped expressions in the
Fast Change: rapid (rapidly), quick (quickly)
statements to help them deduce what the missing words
Slow Change: gradual (gradually), steady (steadily)
are. Ask students to compare their answers in pairs, before
checking answers in class. Answer any questions students 4 Students are now going to practise using language
have about the meaning of other vocabulary items in the for describing trends by writing sentences about the
two documents. profit and loss account they looked at on page 20. Advise
ANSWERS students to start by identifying the trend for each item,
a Current e Equity i.e. big change, small change, fast change or slow change,
b Fixed f Operating and then use either an adjective + noun or a verb + adverb
c Liabilities g Earnings combination to write sentences describing the trends.
d Long-term h Retained Remind students that they will need to use the Past Simple
forms of any verbs they include because they’re describing
things that happened in the past. Students can compare
Describing financial changes their sentences in pairs, before you check in class.
1 Ask students to look at the three line graphs and write SUGGESTED ANSWERS
the appropriate words under each one. Check answers in 1 Sales increased massively this year. / There was a massive
class and confirm that the words under each graph are increase in sales this year.
synonyms for each other. Tell students that when you’re 2 The cost of goods sold increased significantly. / There was a
describing trends found in graphs, for example during a significant increase in the cost of goods sold.
presentation, it’s a good idea to know different words and 3 Depreciation stabilized / remained steady / remained the same
phrases that you can use to describe the same trend. T his this year.
will make your description more interesting to listen to 4 EBIT increased slightly. / There was a slight increase in EBIT.
and show that you have a better command of the English 5 Retained profit fell significantly. / There was a significant fall in
language. retained profit.
ANSWERS
5 Ask students to look back at the balance sheet on page
a grow, increase, rise 20 and identify five changes from last year to this year.
b remain the same, stabilize Students then prepare their own sentences to describe
c decline, decrease, fall these changes. If students feel confident using language for
describing trends, they could spontaneously say sentences
2 Tell students that several of the words used to describe about the changes they identified to their partner. If they
graphs are both verbs and nouns. Ask students to decide
don’t feel confident, they could write down their sentences
whether the words in 1 can be verbs, nouns or both and
and then read them out loud to their partner instead.
then check answers. Then ask students to write down the
Conduct whole-class feedback and ask students to share
Past Simple forms of the verbs from 1. You may want to
their sentences. Provide feedback on them.
draw their attention to the fact that some of these are
regular and some are irregular verbs. Check that students 6 10 Tell students that they’re going to listen to a
have the correct past forms. presentation by the CFO of Woodfords, in which he talks
about his company’s financial performance. Ask students
ANSWERS
to read the questions and then play the recording for them
All are verbs; all except for grow, remain and stabilize can also be
to make notes on their answers. Ask students to compare
nouns.
Past forms: declined, decreased, fell, grew, increased, remained,
rose, stabilized ANSWERS
a Quite well – profits grew but not as much as forecasted.
3 Tell students that in order to add more detail to our b Because there were increased salaries due to increased
description of a trend, we use either adjective + noun production.
or verb + adverb combinations to say how much or how c The asset position is strong, debt levels have increased, but the
quickly something went up or down. Ask students to company is well financed.
write the adjectives under the correct headings and also to
write in the adverb form of each adjective. Ask students to
24 04 Reporting financial information In Company 3.0 ESP Corporate Finance © Macmillan Publishers Limited 2017
time. Students are free to decide which verb or noun for

10 describing the trend and which contrasting expression
So, we’ve had a look at the numbers and we’ve got they use. They don’t need to use adjectives or adverbs to
some interesting results. I think we’ve performed describe the size or speed of the change. If students need
well this year and we’re happy to see profits growing, more support, they could work on their sentences in pairs.
although they didn’t grow as much as forecasted. Alternatively, they can write them on their own and then
So let’s look at those profits in more detail. Although compare them in pairs. Monitor students as they’re writing
our gross profit increased significantly, we also and focus on whether they’re using contrasting expressions
experienced higher costs so we didn’t see significant correctly. Give students feedback when they’ve finished.
increases in operating profits. Despite a gross income SUGGESTED ANSWERS
of 100,000 more than last year, our EBIT only a Although sales increased, net profit fell. / Sales grew; however,
increased by 48,000. net profits declined.
This difference was largely caused by salary increases b Despite a fall in current liabilities, total liabilities remained the
due to increased production capacity and I’m happy same. / Despite current liabilities decreasing, total liabilities
to report that even though wages impacted our remained the same.
profits, all other costs stabilized this year. c Despite a rise in depreciation, operating profit increased/rose.
Moving on to the balance sheet, we can see that d Cash remained the same. However, accounts receivable grew. /
although cash didn’t change significantly, our accounts Although cash remained the same, accounts receivable rose.
receivable has risen massively, meaning the overall e Despite the increase in operating profit, gross profit fell. /
position of our assets is very healthy. However, as you Despite operating profit rising, gross profit declined.
can see, we have increased our debt significantly this
year. This is to fund essential maintenance. Despite
increasing our debt, we remain well financed and I
hope we can reduce these levels next year.
Over to you
Put students into pairs. Ask them to decide which company
they’re going to talk about and make notes on this company’s
7 10 Tell students that they’re going to listen to the
performance in the different areas given. Students then
presentation again and focus on the specific language that take it in turns to talk about the performance of the
Geoff uses to describe changes in the company’s finances. company they’ve chosen. Monitor students’ conversations
Play the recording again and ask students to complete and encourage them to interact with each other by asking
the sentences. Ask students to compare their answers in questions to clarify or get more information. Give students
pairs before playing the recording a second time so that feedback when they’ve finished.
students can check their answers. Elicit or explain that the
four words they’ve used to complete the sentences are all Give your student some time to prepare to talk
used to show contrast. 1:1 about the performance of a company of their
choice. Ask the student to tell you about the
ANSWERS
company’s performance. Listen and ask
a Although c However
questions. Give feedback when your student has finished.
b Despite d Despite
Grammar tip Presenting slides

Ask students to read the information in the box about 1 Ask students to look at the two graphs. Elicit or
three of the most commonly used contrasting expressions explain that the graph in slide 1 is called a bar chart or bar
and how we can use them. Draw students’ attention to graph and the graph in slide 2 is called a line graph. Ask
the examples showing the position of these contrasting students to study the graphs carefully and make notes on
expressions in sentences. Students need to know that the changes that have taken place over the three years,
despite is used either in front of a noun or a verb in comparing the results in slide 1 with those in slide 2.
the -ing form, or the phrase the fact that + verb phrase. Remind students to use past forms to describe the trends
Make sure students are aware that these contrasting and suggest that their presentation lasts 1–2 minutes.
expressions are usually used in written English or more
formal spoken English, e.g. a formal presentation. Tell 2 After students have had 10–15 minutes to prepare
them that it’s a good idea to use a range of contrasting their presentations, put them into pairs and have them
expressions instead of always using the same one(s) as take it in turns to present the slides to each other. Monitor
this will make their language more interesting to listen to students’ presentations and give them feedback when
and show that they have a wider range of vocabulary. they’ve finished. You can focus on how effectively students
used language for describing graphs (verbs, nouns,
8 Students are now going to combine the expressions for adjectives and adverbs) and contrasting expressions and
describing trends that they’ve learned with the contrasting how clearly and confidently they communicated this
expressions they’ve just looked at to make sentences information. It isn’t necessary to go into too much detail
that contrast two trends that are happening at the same here as students are about to do more on this in 3 and 4.
wExtra activityw 5 11 Tell students that they’re going to listen

If students have access to similar slides showing financial again and focus on the specific language used in the
results in graphs, you could ask them to use one of them presentation. Before you play the recording again, you
to give a short (one to two minutes long) presentation could ask students to predict the correct options based
in which they describe and explain what happened over on what they can remember. Then play the recording so
the time period given. Alternatively, you could download that students can check or complete their answers. Ask
and print examples of financial documents from the students to compare their answers in pairs before checking
Internet and bring them to class. Give students time to answers in class.
prepare their presentations before they take it in turns ANSWERS
to present in pairs. Monitor students’ presentations and a inventory
give feedback when they’ve finished. b overproducing
c records
3 11 Ask students to read the three possible d hold
summaries. They could also decide which of them is likely e trend
to be the best summary of a presentation of the slides
they’ve just studied and presented. Then play the recording 6 Ask students to do the matching task. They can
so students can listen for the gist of the presentation and compare answers in pairs before you check answers in
select the best summary. Check answers in class. class. Clarify that the words inventory and stock can usually
be used interchangeably to refer to the goods or materials
ANSWER
that a company has in storage.
c
ANSWERS
a overproducing
11 b trend
c on our books
Okay, so let’s move on to inventory management. As
d inventory/stock
you can see on the next slide, although our sales and
e entire
profits have declined over the last three years, the
level of inventory has actually increased. 7 Students are going to focus on some expressions
What this means is that we’re currently they can use to signpost a presentation, i.e. indicate to
overproducing, so that we’re holding more inventory the audience what the structure of the presentation is
on our books. and refer them to visual aids. Ask students to match the
Moving on to the next slide, you can get some expressions to their functions in the table below. They can
perspective on why this is worrying. This slide shows compare their answers in pairs before you check answers
the days sales inventory, which records the length of in class. Point out that in the last expression, the word just
time it takes to sell our entire inventory. isn’t essential – it can be used as a softener, but can also be
The slides show that this rate has increased over the left out.
last three years and is now nearly three times the rate
ANSWERS
it was three years ago.
Introducing the slide: This slide shows …
Finally, I’d just like to point out that the longer we
Changing topic: Let’s move on to ...
hold inventory on our books, the greater pressure we
Showing a sequence: Finally, I’d like to …
place on our cash flow. If this trend continues, I’m
Talking about consequences: What this means is …
convinced we’ll have significant cash-flow problems
Focusing on key information: I’d just like to point out …
in the future.
So now, let’s look at some possible solutions … 8 Ask students to categorize these additional signposting
expressions according to their function and write them in
4 You could play the recording again for students to the table. Again, you can point out that the use of the word
focus on the differences between this presentation and just in expression d isn’t essential. You may then want to
their own. When they’re thinking about the differences model and drill the pronunciation of I’ll and I’d and the
between the presentation in the recording and their expressions from exercises 7 and 8 which include them
own, you could ask students to consider the following because students often find it challenging to pronounce
question: Were there any differences in terms of: content, these contractions correctly.
presentation techniques used, voice variety, confidence, ANSWERS
fluency, clarity? Discourage students from focusing solely Introducing the slide: As you can see on the next slide …
on language points, such as grammar and vocabulary use, Changing topic: Let’s turn to …
and the fact that their language use was, most likely, not as Showing a sequence: Firstly, I’ll …
good as the presenter’s. Put students into pairs to discuss Talking about consequences: As a result of this …
the questions and then conduct whole-class feedback on Focusing on key information: If I could just highlight …
students’ reflections on what they would do differently if
they were doing their presentation again.
26 04 Reporting financial information In Company 3.0 ESP Corporate Finance © Macmillan Publishers Limited 2017
9 Ask students to add at least one more expression to

12
each category in the table. Tell them to ensure that these
expressions aren’t too similar to the expressions they’ve a As you can see on the next slide, although our sales
already categorized. Students can do this in pairs. Conduct and profits have declined over the last three years,
whole-class feedback on the new phrases students have the level of inventory has actually increased.
added. b What this means is that we’re currently
overproducing, so that we’re holding more inventory
10 Tell students that they’re going to complete some on our books.
sentences from presentations about financial results which
include signposting expressions. Encourage students to pay c The slides show that this rate has increased over the
attention to the words that come before and after the gaps last three years and is now nearly three times the rate
to help them complete the sentences correctly. Students can it was three years ago.
compare answers in pairs before you check answers in class. d Finally, I’d just like to point out that the longer we
hold inventory on our books, the greater pressure we
ANSWERS place on our cash flow.
a see, next
b turn to
c What, means
wExtra activityw
d just, point Students may find it useful to watch videos, either in
class or in their own time, of presenters who are able to
11 Encourage students to choose one, two or three present with impact. For example, over 2,000 videos of
specific areas where they can improve the presentation of presentations are available on the TED Talks website:
the slides they gave earlier, e.g. fluency and voice variety, and http://www.ted.com/. All effective presenters will make
tell their partner what these are. Give students some time use of pauses, so this will expose students to more
to prepare their presentations again and to think about how examples of how to do this. You can also ask students to
they can include some of the signposting expressions they’ve focus on and try to identify what other techniques these
learned. Then ask students to give their presentations speakers use to make an impact, e.g. using a hook to get
again. Students can give their partners feedback on whether the audience’s attention at the start of a presentation,
they’ve improved in the area(s) they wanted to improve in. using sentence stress to emphasize key words, using
Monitor these presentations and give students feedback differing volume levels, etc.
when they’ve finished. Alternatively, if students are in
agreement, you could use a mobile device with a camera or 13 Put students into pairs. Ask them to take it in turns
a video camera to record students’ presentations and then to read the sentences from 12 aloud, pausing in the places
use the recordings for self-reflection and feedback, peer- they marked. Students may find it helpful to do this
feedback or to help you give students feedback. in a more exaggerated way to really get a feel for using
12 12 Students are now going to focus on how they pauses. Monitor students and give them feedback on how
can present with greater impact by using pauses. Elicit effectively they used pauses when they’ve finished.
or explain that presenters usually pause when they want
to emphasize the word or phrase that came before the
pause. In light of this, you could ask students to read the Over to you
sentences before they listen to the extracts and predict Ask students to work with a partner and decide who
where they expect the pauses to be – reading the sentences will be Student A and Student B and refer students to
aloud in pairs may help them to do this. Then play the the slides they’re going to base their presentations on.
recording and ask students to mark the pauses. Stop the Give them time to prepare a short presentation which
recording after each sentence to give students more time describes and explains what they can see in their slide.
to do this. You may also need to play the recording again. Student A presents first and Student B listens and then
Ask students to compare their answers in pairs before asks questions to clarify some of the details mentioned
checking answers in class. or to find out more information. Then Student B presents
and Student A listens and then asks questions. Encourage
SUGGESTED ANSWERS
students to give each other feedback on how effective
a As you can see on the next slide, / although our sales and profits
their presentations were. You can also monitor their
have declined over the last three years, / the level of inventory /
presentations and give feedback when they have finished.
has actually increased.
b What this means / is that we’re currently overproducing, / so Get your student to take the role of Student A
that we’re holding more inventory on our books.
1:1 and you take the role of Student B. Listen to
c The slides show that this rate / has increased over the last your student’s presentation and ask questions.
three years / and is now nearly three times the rate it was Encourage your student to ask questions about
three years ago. your presentation. Give feedback at the end.
d Finally, / I’d just like to point out / that the longer we hold
inventory on our books, / the greater pressure we place on
our cash flow.
Ask students to check their answers in pairs before
03–04 Video
checking answers in class. You could then ask students
to what extent they agree or disagree with Alex’s views,
giving reasons for their answers.
ANSWERS
a T
Before you watch b T
1 Students have encountered all of the items listed, but c F – It tells you how profitable the work you’re doing is – and this
if you think they may be unsure about some of them, you is very important.
could elicit or check their meanings first. Ask students d F – He looks at shareholders’ funds first.
to rank the items according to how important they are in e T
financial statements. Tell students that there are no right
or wrong answers here, and they should just ensure that 3 Students are now going to listen to Andy (also
they can give reasons for their ranking. from Video 01–02) and Alex talking about how often they
prepare financial statements for their business and why.
2 Put students into pairs and ask them to compare You could engage students with this topic by asking them
and explain their rankings. Encourage students to ask how often their company prepares financial statements
questions to find out more about each other’s opinions and and how often they look at or use them. Then ask students
to say whether and to what extent they agree with each to read the four questions before playing the section on
other’s choices. Conduct whole-class feedback on which Preparing financial statements. Ask students to write Andy
items students think are the most important and why. or Alex next to each statement. Students can compare
You could then ask students how similar Andy and Alex’s
While you watch experiences with financial statements are to their own.
1 Tell students that they’re going to watch the ANSWERS
first section of the video, in which Alex and Sumeer, who a Andy
they also saw in Video 01–02, talk about how they deal b Alex
with late payments. Ask students to read the questions. c Alex
You may want to draw students’ attention to the fact d Andy
that the first question includes the question form of used
to do something, and elicit or explain that this structure wExtra activityw
describes a long-term situation or habit in the past which
Ask students to discuss the ways in which their own
no longer happens. Note Alex’s use of would, which here
company makes use of its financial statements.
has the same meaning as used to. (The Past Simple is used
Encourage them to focus on the benefits of financial
in the second and third questions because they refer to
statements and bring in examples from their own
single events that happened in the past.) Play the section
experience, where appropriate. Conduct whole-class
on Dealing with late payments and ask students to make
feedback on students’ ideas.
notes on their answers. Play the section again if necessary.
Check answers in class.
4 Ask students to briefly discuss what they think
ANSWERS the two ways in which Sumeer’s company makes use of
a He would send statements out to the clients at the end of each its financial statements could be. Then play the section on
quarter and then call them up to ask them when they could pay. Using information in financial statements and ask students
b Outstanding payments became an extremely high percentage of to note down the two things Sumeer mentions. Ask
turnover. students to compare their answers in pairs before checking
c They decided to send out statements to their customers every answers in class. Students should already be familiar with
month. the terms creditworthy and creditworthiness, but review
d The finance department and the business. their meanings if necessary.
e They encourage the business teams to talk to customers in
ANSWERS
advance of payment deadlines.
To show their creditors they are creditworthy and as a marketing
2 Tell students that they’re going to watch the tool.
section on The P&L account and balance sheet, in which Alex
discusses what he thinks the most important information
in these documents is. Before students watch the video, Natural speech
make sure that they’ve read the statements. You could also
ask students to predict whether the sentences will be true
1 You may need to clarify that the term natural
speech refers to the features of English that native or
or false based on what they know about P&L accounts and
proficient speakers use when they’re speaking. Students
balance sheets. Play the section all the way through and
may already be using these features themselves or they
ask students to decide if the statements are true or false
may not be familiar with them yet, especially if they have
and then write correct versions of the false statements.
little or no contact with native or proficient speakers of

English. The aim of this section is not to suggest that
students must use these features when they’re speaking,
but rather to raise their awareness of them in order to help
them understand these speakers more effectively in future.
Review 03–04
The feature that students are going to focus on here is the
use of sentence stress for emphasis. Check the meaning of This review section gives students an opportunity to
emphasize (here: to say more strongly). Tell them that the consolidate what they’ve learned and do some further
words in bold are the words that Sumeer emphasizes in practice with the language and content of Units 03 and 04.
these three sentences. Ask students to read the sentences. You could use these sections in class after completing
They can also read them aloud in pairs and practise these units or later in the course as a review activity.
emphasizing the words in bold as they do so. Then play Alternatively, you could assign them as homework or use
the clip from the recording (3:19 – 3:33) and ask students them to help students who’ve missed a lesson to catch up
to think about why Sumeer emphasizes the words in bold. with the rest of the group. After students have completed
Students can discuss what they think in pairs. Conduct the exercises, ask them to go through the checklist as a
whole-class feedback and establish that when we’re reminder of what they have covered in these two units.
speaking, we emphasize the key content words to ensure
that listeners understand the most important points in 03 Managing payments
our message. Students will most likely do the same thing
ANSWERS
when they’re using their own first language.
1
ANSWER a follow up on b charge c suspend d reinstate e review
Because these are the key words that communicate his message. 2
They’re mostly nouns, verbs or adjectives – the words which carry a I’m calling about invoice number AD44567.
information. We don’t tend to stress other types of words, such b I’m afraid we must insist on payment of the outstanding amount.
as articles, prepositions, pronouns, as they don’t carry as much c I’m afraid the invoice is now three days overdue.
information. d We contacted you on the 15th to remind you but we still haven’t
received payment.
2 Play the clip from the recording (3:33 – 3:42)
e I was just calling to check if there was a problem.
for students to listen and underline the words Sumeer
emphasizes. Alternatively, students could read the 3
sentences and decide which words they think Sumeer a purchase b payment c renegotiate d partial e authorize
emphasizes when he says them, i.e. which are the key 4
content words, and then watch the clip from the recording a I was wondering if we could extend the payment terms.
to check their answers. Whichever option you choose, check b If we could/can extend terms by a week, it would be a big help.
that students have selected the correct words and then ask c It would be difficult to extend terms by a whole week.
them to take it in turns to practise saying the sentences d What if we offer a partial payment?
aloud in pairs with the emphasis that Sumeer used. e If you confirm a partial payment in writing, we can/will accept that.
ANSWERS
The second way is a marketing tool. The financial statements of a
04 Reporting financial information
company say a lot about the company. There’s a lot of information ANSWERS
in there that’s non-financial. 1
a EBIT grew significantly last year.
b There was a slight decrease in expenses last quarter.
After you watch c Operating profit fell marginally last year.
d correct
Students could discuss the questions either with a partner
e Long-term liabilities grew slightly last month.
or in small groups. Encourage students to give examples
from their experiences and working lives when responding 2
to questions a and b and to give and explain their own a Despite being solvent, the company has a lot of debt.
opinions when responding to question c. Give students b Although the company made large profits, the return on equity
about ten minutes to discuss the questions and then was low.
conduct whole-class feedback. c The company is losing money, but it still has good liquidity.
d Despite having high costs, / Despite their high costs, they make
a lot of profit.
e Although they had a good solvency ratio, they still went bankrupt.
3
a Let’s move on to the next topic.
b The next slide shows the profitability of the company.
c What this means is the company is losing money.
d Finally, I’d like to give some recommendations for cost saving.
e Can I just point out the worst debtors?
05
Learning objectives
Interim results
In this unit, students will practise describing
Warm up
Randy Thurman. Elicit or explain that Thurman thinks
differences/variances, explaining causes and it’s more important for a company to save money than to
results and controlling a meeting. They will read earn money. Ask students to discuss the question in the
an email about a budget variance and a blog post Warm up. Then ask these questions:
about corrective action. Students will also listen to ●
D o you agree that how much you save is more
a presentation of the causes of a budget variance important than how much you earn?
and a meeting about corrective action. The language ●
W hat does your company or a company you know
focus is on words to describe differences/variances, well do to save money? Where or how could the
formal and informal email expressions, linking company save even more money?
words of cause and effect, meetings phrases and
conditionals for likely and less likely situations.
Digital resources: Unit 05 Variance analysis

1 Ask students to read the sentences and match the
words and phrases in bold to their definitions, using the
Presentation Kit
context to help them. Ask students to compare their
Background information answers in pairs before checking answers in class.
After making forecasts about future financial ANSWERS
results and putting together a budget for the a budget variance
next quarter or financial year, companies need to b shortfall
compare what they expected their expenses and c actuals
income to be and what they actually are. This process d surplus
of investigating and comparing forecast and actual e variance analysis
results (or actuals) is called variance analysis – f breakdowns
it analyzes the differences that arise. Knowing
about these differences enables companies to take 2 Elicit or check the meaning of management accountant
corrective action and avoid cash-flow problems. (an accountant who provides managers with the financial
There are many resources online that have been information they need to make day-to-day and short-term
created to provide information about budget decisions) and grocery store (a store that sells food, drinks
variance and corrective action. Here are some links and household items). Ask students to read the email from
to get you started: Colin to Gordon about a variance analysis to get a feel for
the situation that it was written in. Tell them to ignore for
http://smallbusiness.chron.com/budget-variance now the fact that some words are in bold. They can discuss
-analysis-60250.html their answers to the questions in pairs before you check
http://articles.bplans.com/plan-vs-actual-part-3 answers in class.
-understanding-variance-analysis/
SUGGESTED ANSWERS
a Colin has completed the comparison of the actual data and the
budget (variance analysis), and wants to send the information to
Key terms glossary Gordon.
b Colin has noticed a difference between budgeted and actual
actuals (noun [plural]) real financial data from a specific
costs.
period
c They know each other well. Colin uses very informal, personal
breakdown (noun [countable]) information that has
language, which suggests a close working relationship.
been separated into different groups
corrective action (phrase) corrective action is intended 3 Make sure students are aware that in English, as
to make a bad situation better in most other languages, we use either more formal
surplus (noun [countable/uncountable]) an amount of or more informal language depending on who we’re
money or goods that is left over because a country or communicating with, how well we know them and the
business has more than it needs purpose of our communication. Ask students to read the
variance (noun [countable]) a difference more formal expressions in this exercise and match them
to the more informal expressions in bold in Colin’s email.
30 05 Interim results In Company 3.0 ESP Corporate Finance © Macmillan Publishers Limited 2017
They can do this in pairs. Check answers in class and ask

students which expressions they more often write or read 13
in their emails and which they feel more comfortable Gordon: Okay, thanks for coming everyone. Did you all
using. get a copy of the budget breakdown and the actuals?
ANSWERS
Great. Well, as you can see, our first-quarter trading
results were actually quite positive and our sales are
a See the attached
ahead of forecast by £200,000. We achieved sales of
b It looks like
£8.7M this quarter. Yes, that’s great but I’m afraid it’s
c to have a chat about any of this.
not all good news. We had forecasted a gross income
d Just to let you know
of £5.5M, but our actual figure was down on that by
e Let me know if
700,000 at £4.8M. This was caused by the increased
f we’re looking at
cost of goods sold which, at £3.9M, is up on the
g Cheers
forecasted figure of 3M by quite some way. Although
wExtra activityw these figures aren’t massively out of line with our
forecast, they will drive down first-quarter results.
If students write or receive emails in English at work, ask Moving on to operating expenses, these are generally
them to print out some examples or to access them on in line with our forecasts. The only thing to note is
their smartphones or laptops, if possible. Students can that sales and marketing expenses were slightly over
then read each other’s emails in pairs and decide which budget at 48,000, but this isn’t very significant. So,
ones are formal and informal and identify the features of if you look at the bottom line, our operating profit is
each email style. slightly behind our forecast at £3.9M. Now, let’s look
at the drivers of this variance …
4 Elicit or explain that because of the relationship
between Gordon and the group CEO (whose position 2 13 Tell students that they’re going to listen again
gives him a lot more power at the company), Gordon and focus on some of the specific language Gordon uses in
will use a more formal style to write to him. However, his presentation. Before you play the recording again, you
it’s worth pointing out that even in more formal emails, could ask students to predict the missing words based on
native speakers of English tend to use first names in the what they can remember and on expressions they know.
salutation, so students should address the CEO as John in Then play the recording so that students can check or
the emails they write. Students then write the email from complete their answers. Check answers in class.
Gordon to John, using the more formal phrases. If students
need more support, they could work on the email together ANSWERS
in pairs. Give students a few minutes to write their emails a ahead of / up on (also possible = over)
and then ask them to read their partner’s email, if they’ve b down on / behind
worked on them individually, or read another pair’s email, c in line with
if they’ve worked on the emails in pairs. They can then d out of line with
give each other feedback on how successfully they’ve
communicated the information they needed to provide, 3 14 Tell students that they’re now going to
and on their use of more formal phrases. listen to the next part of the meeting where Colin talks
about the reasons for, or the drivers of, the results he’s
just described. Ask students to read the questions and
Presenting the actuals check the meaning of sustain (to continue or maintain
something). You could ask students to speculate about
1 13 Students are now going to look at an example
what the answers to the questions could be, e.g. by asking
of financial results from one quarter in more detail. Ask what reasons there could be for an increase in a company’s
students to study the variance analysis carefully before costs. Then play the recording and ask students to make
they listen. Then play the recording and ask students to notes on their answers. Check answers in class.
write the missing numbers in the gaps. Play the recording
again if necessary and then check answers in class. Draw ANSWERS
students’ attention to the use of the decimal point in the a Because of increased supplier prices.
numbers, which is spoken as point. Numbers that come b Because of strong competition.
after the decimal point are spoken one after the other, so c He expects them to miss their forecasted income unless they
4.64 is spoken as four point six four. reorganize the budget.
ANSWERS
a 8.7
b 3.9
c 5.5
d 48
e 3.9
In Company 3.0 ESP Corporate Finance © Macmillan Publishers Limited 2017 05 Interim results 31
and look at their function in the sentences and what comes

14 before and/or after them as they answer the questions. The
Gordon: So, if you look at the bottom line, our operating first and second questions are about the function of the
profit is slightly behind our forecast at £3.9M. Now, expressions and the third and fourth questions are about
let’s look at the drivers of this variance. Colin, would the sentence structures that you use with them. Make
you like to come in here? sure students are aware that they can give more than one
Colin: Thanks, Gordon. So, in our analysis, we’ve seen
expression in answer to each question. Ask students to
some worrying trends in many of our direct costs. compare answers in pairs before checking answers in class.
Now, obviously, part of our increased cost of goods ANSWERS
sold was because of increased sales but this does not a because, due to, because of
account for the full figure. Many of our suppliers b as a result, as a result of
have experienced energy price rises and have been
forced to pass cost increases on to us. As a result, 8 Look at the first sentence and the example with the
we’re experiencing considerably higher costs than class. Then ask students to use the prompts to write the
anticipated. Now, we haven’t passed these costs on remaining sentences. Ask students to compare their
to our customers because we’re concerned about answers in pairs before checking answers in class.
strong competition and don’t want to reduce our
competitiveness. So, what about the long term? SUGGESTED ANSWERS
Due to continued competition and sustained cost a Sales are up on the forecast due to increased demand.
increases, we feel it’s unlikely that we’ll meet our b Expenses are in line with last year because wage increases were
forecasted income applying the current budget. As delayed.
a result of these factors, we strongly recommend c Marketing expenses are down on the forecast because of
reorganizing the budget. spending reductions.
d Operating income is ahead of last year as a result of lower costs.
e Our analysis was bad. As a result, general expenses were out of
4 Put students into pairs and ask them to think about line with the budget.
their answers to the two questions. Students then discuss
their answers, giving reasons. Encourage students to bring
wExtra activityw
examples from their own experiences of dealing with
budget variance into their discussions where appropriate. Ask students to use the Internet to find the latest
Conduct whole-class feedback. business news stories in English and choose two or three
stories that they’re interested in. They then scan-read
SUGGESTED ANSWERS
the articles to get a general feel for what has happened
1 The company still forecasts considerable profits so the budget and why, e.g. food prices have fallen due to increased
variance may not be a major problem. However, Colin tells us competition between supermarkets. When they’ve done
that the variance is caused by long-term changes in the com- this, ask students to use the cause and effect expressions
pany’s cost base. As this is unlikely to change, it will probably they’ve learned to write a sentence about each story which
impact profits in the future and, if the variance is unaddressed, summarizes what has happened and why. Students could
may see a long-term decline in profitability. either write their sentences in pairs or write them on their
2 As the variance is caused by changes in suppliers’ energy prices, own and then compare and discuss them in pairs. Monitor
it cannot be solved directly. Therefore, Westway should try to students and give them feedback when they’ve finished.
identify cost savings it can make in other areas of the business Focus on their use of cause and effect expressions.
to improve profitability.
5 Students are going to focus on some of the expressions

for cause and effect that Colin uses in the second recording Over to you
from the meeting. Tell students to use what they already 1 Divide the class into small groups of three or four
know about how to use cause and effect expressions (e.g. students to discuss the most recent actual results from their
because of is followed by a noun or noun phrase) and company or a company they know well. If students have
what they can remember from the recording to match access to the actuals they want to talk about in paper or
the sentence beginnings to the endings. Do not check digital form, they can use this to present the exact results.
students’ answers at this stage.
2 Refer students to page 46 at the back of the book.
6 14 Play the recording and ask students to listen When they have read the information, they should
out for the sentences they matched in 5 so that they can choose one person to chair the meeting. Students should
check their answers. If necessary, play the recording again. summarize what the results show, what the causes of them
ANSWERS could be and then decide what action they should take.
a 5 b 4 c 1 d 3 e 2 Give students time to prepare and then allow five minutes
for them to roleplay the meeting. Monitor the roleplay and
7 Tell students that they’re now going to focus on how we give feedback when they have finished. If appropriate and
use the cause and effect expressions in bold in the sentences there is enough time available, ask students to roleplay the
from 5. Ask students to refer back to these expressions meeting again so different students can chair it.
1 Ask your student to tell you about the most

15
1:1 recent actual results from their company or a
company they know well. Listen and ask Colin: So, what about the long term? Due to continued
questions. competition and sustained cost increases, we feel
2 Get your student to chair the meeting while you give it’s unlikely that we’ll meet our forecasted income
ideas and opinions. Give feedback when you have applying the current budget. As a result of these
finished. factors, we strongly recommend reorganizing the
budget.
Sandra: So, thanks for that, Colin. Just to summarize,
Corrective action
we’ve got an operating income variance of £740,000.
That’s quite a lot. So, I’ve got to ask the question.
1 Tell students that they’re going to read a blog post Were our cost calculations just unrealistic?
about dealing with budget variances. Ask them to predict Anna: No, I don’t think so. When we prepared the
what strategies they think the blog post will recommend budget, oil and energy prices were very low, and
and what the link with the title of this page – Corrective that changed more quickly than anyone could have
action – could be. Then tell students to read the blog anticipated.
post and find the answers to the questions. Put students Sandra: So you all feel that we couldn’t have predicted
into pairs to discuss the questions before checking answers this shortfall?
in class. Sandra: Okay, but be that as it may, I don’t think we can
ignore this situation. Is that your view too, Colin?
2 Make sure students are aware that they have to
Colin: Yes, I’m sure that if we don’t do anything, the
complete the summary with verbs from the blog post,
variance will widen.
but they may have to change the form of those verbs.
Ask students to read through the blog post again and Sandra: Okay, so what can we do about it? Anna?
match the different parts of the summary to the different Anna: Well, as Colin said, we can’t really raise our prices
parts of the blog post. Also encourage students to use the to absorb the cost increases. If we raised our prices,
words that come before and after the gap to help them. customers would switch to our competitors. It’s just
Ask students to compare their answers in pairs before too competitive at the moment.
checking answers in class. Sandra: Yes, I agree with you. What’s your take on this,
Gordon?
ANSWERS
Gordon: Well, it’s really tough, Sandra. We’re being pushed
a throws from both sides. And remember we actually increased
b represent sales this quarter so I think the price is right.
c see
Sandra: I agree with you, Gordon, but that doesn’t solve
d find
the cost issue.
e prepare
Gordon: No, I think there we have to look for internal
f respond
cost savings.
Sandra: So you’re proposing a process review?
wExtra activityw
Gordon: That’s right. If our costs are going up, we’ll need
Put students into pairs. Ask them to discuss what specific to economize.
pieces of advice they would give to employees at their Colin: I agree. If we saved 3% on costs in each store, we
company or a company they know well to help them could earn back the variance.
deal with budget variances there. Students can use the Sandra: That’s great, but how do we go about it?
advice in the blog post they’ve just read to help them
Anna: Well, if we look at each of the stores in turn, we
come up with ideas and then personalize it to the specific
can identify areas where we can save money.
situation that their chosen company is in. Make sure that
Sandra: Right, can I leave that to you two?
they don’t just copy blog post text. Then ask students to
make a list of what they think are the five most helpful Anna & Colin: Sure.
pieces of advice. Sandra: So, can you go away and report back next week?
Anna: No problem.
3 15 Tell students that they’re going to listen to Sandra: Okay, I think we’ll stop there. Gordon could
a meeting where a team discusses what action to take in you … ?
response to a large budget variance. Ask students to read
the three options. Then play the recording and ask students
to choose the correct option. Check answers in class.
ANSWER
c
In Company 3.0 ESP Corporate Finance © Macmillan Publishers Limited 2017 05 Interim results 33
4 Put students into pairs to discuss the questions. Make Grammar tip
sure they give reasons for their answers. They can also
bring examples from their own experiences of dealing with Start by eliciting or checking that a conditional sentence
situations like this into their discussions. Conduct whole- is a sentence that usually contains the word if and a
class feedback. condition. Students will normally have encountered
conditional sentences in some form before. Ask students
5 15 Tell students that they’re going to listen again to read the information and examples in the box and
and focus on the specific language that Sandra uses to make sure they understand that the type of conditional
chair the meeting. Before you play the recording again, sentence we choose may depend on how likely we think it
you could ask students to predict the missing words based is that something will happen.
on what they can remember. Then play the recording so
that students can check or complete their answers. Ask
8 Ask students to categorize the sentences in 7 according
students to compare answers in pairs before checking
to how likely the speaker thinks the results are. Make sure
answers in class.
students are aware that which type of conditional sentence
ANSWERS we choose to use is often subjective: one speaker may
a summarize e proposing think that certain results are likely and use one type of
b view f about conditional sentence to talk about them, whereas another
c can g leave speaker may think that the same results are less likely and,
d take h back therefore, use another type of conditional sentence. Check
answers in class.
6 Students focus on some expressions they can use in
ANSWERS
meetings to ask for opinions and suggestions, summarize
a a, c, e
and give instructions. Ask students to match the sentences
b b, d
in 5 to their functions in 6. Students can compare their
answers in pairs before you check answers in class.
9 Ask students to reread the sentences in 7 and identify
ANSWERS the verbs in them which tell us whether a conditional
1 b, d sentence refers to a likely or less likely outcome. Ask
2 a, e students to compare answers in pairs before checking
3 c, f answers in class.
4 g, h ANSWERS
a will, can
7 16 Students are going to listen again to the
b would, could
conditional sentences they heard in the meeting. You could
ask students to predict the missing words based on what
Over to you
they can remember from the recording and what they
already know about the structure of conditional sentences.
Play the recording so that students can listen and check 1 Ask students to read the information and follow the
or complete their sentences. Pause the recording after instructions.
each extract to make it easier for them if necessary. Ask
students to compare answers in pairs before checking 2 Refer students to their respective pages at the back of
answers in class. the book, and give them time to prepare for and roleplay
the scenario. Point out to students that they have already
ANSWERS seen the figures as they were also used in the previous
a will Over to you section in this unit. Monitor the roleplay and
b would give feedback when they have finished.
c ’ll
d could 1 Ask your student to make a list of four issues
e can 1:1 and a corrective action for each one and then
present them to you.
2 Get your student to take the role of Student A and you
16
take the role of Student B. Give feedback when you
a If we don’t do anything, the variance will widen. have finished and then swap roles and do the roleplay
b If we raised our prices, customers would switch to again. Then give further feedback.
our competitors.
c If our costs are going up, we’ll need to economize.
d If we saved 3% on costs in each store, we could earn
back the variance.
e If we look at each of the stores in turn, we can
identify areas where we can save money.
Business development
In this unit, students will practise discussing company
equity finance (noun [uncountable]) the selling of shares
(ownership in the business) by a company to raise money
float (verb) to start to sell a company’s shares on the stock
market
performance, discussing strategy, discussing how
merger and acquisition (noun [countable]) the
to raise finance, and decision-making. They will
combining of two or more companies
read a blog post about the balanced scorecard and
organic (adjective) happening or developing in a natural
an investment company brochure. Students will
and continuous process
also listen to discussions of a strategy map and an
reserve(s) (noun [countable] [usually plural]) a supply
investment decision. The language focus is on strategy
of something that a country or an organization can use
and planning expressions, active listening expressions,
when they need to
and modal verbs for necessity and recommend.
strategy map (noun [countable]) a diagram which shows
Digital resources: Unit 06 the goals and priorities that a company intends to pursue
sustainability (noun [uncountable]) the extent to which
something is capable of continuing for a long time at the
same level
Presentation Kit
In order to develop and thrive in the business world,
Warm up
companies have to expand. To do this successfully, Start by drawing students’ attention to the quote from
they need to have a strategy which will enable them Mark Zuckerberg. Elicit or explain that Zuckerberg
to achieve expansion. Essentially, companies have thinks companies must take risks in order to increase
two options when it comes to expansion: organic profits and grow. Ask students to discuss the question in
growth, using profits, other assets or money the Warm up. Then ask these questions:
they’ve raised to finance new business activities or ●
W hat problems can be caused by taking risks?
ventures; or inter-firm cooperation – mainly mergers ●
In what ways might companies take risks in order to
and acquisitions – through which they can merge grow?
with or buy competitors or companies producing ●
W hat approach to risk-taking does your company
complementary products. In both cases, raising take? How successful has this approach been?
finance may be necessary and companies will have
to decide on the best way of doing that, e.g. making
a public offering, using debt finance or equity Business strategy
finance, or exploiting existing assets. There are many
1 Put students into pairs and ask them to read the
resources online that have been created to provide
statements. Then ask them to choose the statement
information about business strategy and raising
which most closely reflects their opinion of what makes
finance. Here are some links to get you started:
a successful business strategy. Students then tell their
http://balancedscorecard.org/Resources/About-the partners which statement they’ve chosen, giving reasons.
-Balanced-Scorecard Encourage students to bring in examples of their own
http://businesscasestudies.co.uk/business-theory experiences of business strategy where appropriate.
/strategy/business-strategy.html#axzz4IHD1Z66e Conduct whole-class feedback.
http://www.investopedia.com/ask/answers/032515 2 Tell students that they’re going to read a blog post
/what-are-different-ways-corporations-can-raise about balanced scorecards. Find out what, if anything,
-capital.asp students already know about these. Then ask them to
read the blog post and find the answers to the questions.
Put students into pairs to discuss the questions before
checking answers in class.
Key terms glossary
ANSWERS
acquisition (noun [countable]) a company that is bought
by another company a The balanced scorecard gives an overview of a company’s
balanced scorecard (noun [countable]) a way of performance.
measuring and tracking the performance of a company in b To collect and present data on an organization’s current
relation to strategic objectives performance, and any areas of concern.
debt finance (noun [uncountable]) a way of getting c A strategy map is a plan to help implement improvements
money in which the person or organization that borrows identified by the balanced scorecard.
the money will have to pay it back, usually with interest
In Company 3.0 ESP Corporate Finance © Macmillan Publishers Limited 2017 06 Business development 35
3 Ask students to discuss whether their company uses Kim: I think so, yeah. And improving the quality would
balanced scorecards and why they do or don’t. If students allow us to charge more, which would help our
don’t know, you could ask them to find out as a self-study operating profit.
task before the next lesson. Marcus: Do you mean our customers are prepared to pay
higher prices?
4 Tell students that they’re going to focus on some of the
verb-noun collocations used in the blog post. Check the Kim: Yeah, the research suggests they would but it’d have
meaning of insights (knowledge of something which gives to be a new product range.
you a deep understanding of it). You could ask students to Marcus: That’s very interesting – was there anything else?
predict the missing verbs without looking at the blog post Kim: Yes, actually. To support a premium price, it would
and then reread the blog post to check their answers. Then be good to improve the retail experience. You know,
check answers in class. modernize some of the coffee shops. We’re getting a lot
of feedback suggesting the interiors are a bit tired. If we
ANSWERS improve that, we improve the general retail experience
a give(s) d develop(ing) and that will make it easier to charge higher prices.
b provide e identify Marcus: Okay, that’s really interesting. Thanks, Kim.
c highlight f devise
2
5 Encourage students to use the context of the sentences Marcus: Hi, Greg. I was talking to Kim and she thinks
in 5 to help them establish the meaning of the collocations the data from the scorecard supports introducing a
in bold. Then ask them to find the equivalent collocations higher-quality premium product. What do you think
in 4. Ask students to compare their answers in pairs before about that?
checking answers in class. Greg: I agree, I think it’s a really good idea. There’s lots
we can do to improve quality throughout the supply
ANSWERS chain. We could source the coffee from higher-end
a develop, measures suppliers and there are lots of different things we
b highlight, issues could do with the roasting process.
c provide, insights Marcus: So you mean we wouldn’t have to change any
d identify, improvements machines?
e devise plans
Greg: Not at all, we can just modify the process. At the
f give, an overview
moment, we’re producing to a price. We can change
that quite quickly.
6 17 Tell students that they’re going to listen to
three discussions about strategic objectives at a coffee Marcus: That’s great to hear. Did your analysis show up
manufacturer and retailer. Engage students with this anything else?
situation by asking them to cover up the information Greg: Actually, it did. Our levels of waste are extremely
in this exercise and speculate about what the strategic high. I think, if we reviewed our production process,
objectives might be. Then ask students to study the we could cut waste by up to 10%.
incomplete strategy map. Check the meaning of staff Marcus: Really? Why do you think we have such a waste
turnover rate (the number of employees leaving a company problem?
divided by the total number of employees at a company). Greg: Well, I think it’s partly some poor processes but I
Play the recording and ask students to listen and complete also think we need to look at our people strategy. I
the strategy map. Ask students to compare their answers mean, we’ve got really high staff turnover and newer
in pairs before checking answers in class. staff make a lot of mistakes.
3
ANSWERS
Marcus: Hi, Antonio. I was just talking to Greg and he
a Improve retail experience
mentioned we have some skills gaps. How do you feel
b Reduce waste
about that?
c Develop career opportunities
Antonio: Well, I agree. People don’t stay long enough to
get the skills and we’re having to work hard to bring
17 new people up to speed.
Marcus: So, in other words, our turnover’s too high. We
1
really need to hold on to people. Why do you think
Marcus: So what did the customer data tell us, Kim? we have such a problem?
Kim: We did quite well overall and customers are Antonio: Well, I think people don’t believe they can
generally satisfied. go anywhere here. I mean, the last three senior
Marcus: That’s great news, but are there any appointments have been from outside. People just don’t
improvements we can make? think there are any opportunities here. That’s supported
Kim: Well, many customers think we don’t provide the by exit interviews. If we can change that and improve
best cup of coffee out there, but they are generally career opportunities for the staff, people will stay longer,
happy with the quality against price. quality will go up and that’ll see sales rise a lot.
Marcus: Are you saying we’re seen as a bit of a budget brand? Marcus: Okay. Thanks, Antonio.
36 06 Business development In Company 3.0 ESP Corporate Finance © Macmillan Publishers Limited 2017
7 17 Tell students that they’re going to listen again 2 Refer students to their respective pages at the back
and focus on the specific language that the speakers use of the book and give them time to prepare. They then
to summarize, to check understanding and to support roleplay the scenario, completing the strategy map
and encourage. You could ask students to predict what together. Monitor the discussions and give feedback when
the missing words or phrases are, based on what they can they have finished. Students could also present and explain
remember and what they already know about language the strategy map to the rest of the class.
that’s used for these purposes. Play the recording again
1 Ask your student to complete the strategy
and ask students to complete the sentences. Ask students
to compare their answers in pairs before playing the 1:1 map with areas for improvement in their
company. Ask them to present and explain
recording a second time so they can check answers.
their strategy map to you. Listen and ask
ANSWERS questions.
a Are you saying 2 Ask your student to take the role of Student B and
b Do you mean you take the role of Student A. Ask your student to
c very interesting complete the strategy map based on your discussion.
d you mean Check the strategy map and give feedback when you
e Really have finished.
f in other words
8 Elicit or check the meaning of encourage (to give

someone the feeling that it would be a good idea to do Raising finance
something). Ask students to do the matching task, using 1 Put students into pairs and ask them to read the
the completed sentences in 7 to help them deduce the statements. Check the meaning of the collocation float on
functions of the expressions. Check answers in class. the stock exchange (to make stock in a company available
ANSWERS
for the public to buy for the first time). Then ask students
to choose the statement which most closely reflects their
1 f
opinion. Students then tell their partners which statement
2 a, b, d
they’ve chosen, giving reasons. Encourage students to
3 c, e
bring in examples of their own experiences of raising
9 More confident students can spontaneously say the finance where appropriate. Conduct whole-class feedback.
exchanges in A/B pairs, using the relevant expressions 2 Put students into pairs and ask them to discuss what
from 7. Remind students to use appropriate intonation. the company could do to expand. Conduct feedback
Less confident students can read the exchanges, complete on students’ answers and establish what the two main
them with expressions that have the functions given options are (organic growth or inter-firm cooperation).
in brackets and then read them aloud in pairs. Monitor
students’ exchanges to make sure that they’re using the ANSWER
correct expressions. Pellini’s has two main ways of expansion. It can either pursue an
organic growth strategy, where it develops new premises and busi-
SUGGESTED ANSWERS
ness opportunities itself, or it can attempt to grow through merger
2 Do you mean our processes are not efficient?
and acquisition.
3 So, in other words, nearly a quarter of our deliveries are late.
4 Are you saying we need to use new ordering software?
Over to you
1 Put students into pairs and ask each student to think
of four problems or possibilities for improvement at their
company and write a short sentence describing each one.
Students then take it in turns to read their sentences
aloud for their partner to react to them, either with an
expression for summarizing, checking understanding,
or supporting and encouraging, as in 9. They can then
continue the conversation by responding to their partner’s
question, or the response to the original sentence they
said, e.g. clarifying how savings could be made.
wExtra activityw 4 Tell students they’re going to read an article about

corporate finance options and match the headings to the
Ask students to brainstorm the advantages and
correct paragraphs. Encourage students to focus on the
disadvantages of using a) organic growth and b) inter-
key content words in each paragraph to help them. Ask
firm cooperation and then to expand and write down
students to compare their answers in pairs before checking
their ideas. Encourage students to think of three or
answers in class.
more advantages and three or more disadvantages for
each. Conduct whole-class feedback on students’ ideas. ANSWERS
Students can do this in pairs or on their own. Possible a Using Existing Assets
answers could be: b Equity Finance
c Operating Profits
Organic growth: d Debt Finance
Advantages Disadvantages
5 Ask students to start by reading the definitions and
Low-risk strategy Tends to be slow guessing what the verb-noun collocations with these
Company maintains Harder to achieve in difficult definitions could be. Students can then reread the article
control economic circumstances and find the matching collocations. Check students’
No threat to jobs or Doesn’t remove competitors answers as a class.
company culture ANSWERS
a raise money
Inter-firm cooperation: b issue shares
Advantages Disadvantages c retain profits
Enables companies to Redundancies may be d borrow money
move into new markets necessary e fund projects
f service debt
Helps companies to Problems caused by language
neutralize competitors / cultural barriers 6 Ask students to think about the sources of finance that
Tends to produce rapid Company may lose some their company uses and then discuss their ideas in pairs.
expansion control Monitor students’ discussions and offer them assistance
with any specific vocabulary they need. Conduct whole-
class feedback.
3 Put students into pairs. Ask them to brainstorm and
discuss possible ways in which Pellini’s could raise enough 7 18 Tell students that they’re going to listen to
money – probably a few million dollars – to buy the smaller Pellini’s management team discussing several of the
competitor. If students are unsure about what the options options that they’ve just read about and identify which
could be, give them an example, e.g. using their own one they choose. You could ask students to predict which
profits and equity reserves, to start them off. Conduct option they think the management team are most likely
whole-class feedback on the ideas students have come up to choose based on what they already know about Pellini’s,
with and assist with any vocabulary that students would and about corporate finance in general. Then play the
like to use to describe them, but are unsure about, e.g. recording and ask students to identify the option they
lender or interest charge. choose.
SUGGESTED ANSWER ANSWER
All companies have three basic options when looking to raise They choose debt finance.
money. (1) They can fund the venture through their own profits,
assets or equity reserves. (2) They can raise money by selling
equity (ownership) in the business in return for a portion of the
profits. (3) They can try to borrow money from a bank or other
lender. This will incur an interest charge and must be repaid.
38 06 Business development In Company 3.0 ESP Corporate Finance © Macmillan Publishers Limited 2017
wExtra activityw
18
Put students into pairs to discuss these questions: Do
Marcus: Okay, I know there are a lot of options but we
you agree with the team’s decision and the reasons they gave
have to make a decision.
for it? Do you think you/your company would make the same
Paul: Well, we can’t raise equity. We’re too small to float
decision in that situation? You may want to introduce or
on the exchange and I don’t want to seek investment review the expression If I were you/them, I’d … or In their
from outside. position, I’d … so that students can use it to say which
Laura: No, I agree. We shouldn’t increase the number of option they would choose.
directors. Personally, I think we can raise the money
ourselves. We’ve got quite a big reserve and we’re
making regular profits. Grammar tip
Marcus: Yes, we could do that, but I think it would leave Ask students to read the information and examples in
us exposed. We should protect our cash carefully. the box and make sure they understand the words and
Paul: Yes, I agree with Marcus, and it would take quite a structures we use after modal verbs for obligation and
while to raise the money. the verb recommend.
Laura: I guess that’s true. Well, we can approach a bank.
You know, get a loan. 9 Students are now going to look at how to use modal
Paul: Yeah, I think that’s the best option. That would verbs in the context of a decision-making meeting to make
give us enough cash pretty quickly. recommendations, say what’s necessary and not necessary
Marcus: But we might struggle to service the debt if the and say what’s possible. This is likely to be revision for
repayments are too high. students at this level. Ask students to read the sentences
Paul: Yes, but we don’t have to repay the loan (which are all extracts from the Pellini meeting) and identify
immediately. We can delay payments until the new the function of the modal verbs in each one. Encourage
venture is online and service the debt from the them to use the context of the rest of the sentence and
operating profit. what they can remember about how the sentence was used
Laura: Can we do that? during the meeting to help them. Ask students to compare
Marcus: Yes, I think so.
Laura: Then that reduces the risk. I think that’s the most ANSWERS
attractive option. 1 have to
Paul: Yes. It has its own risks but it doesn’t put the same 2 should
pressure on our operations as the other forms of 3 shouldn’t
finance do. 4 don’t have to
5 could, might
8 18 Ask students to listen and make notes on what
the management team say about each option – whether
10 Ask students to rewrite the sentences, referring to
the Grammar tip as necessary. They can check answers in
they accept or reject it – and the reasons for this. You could
pairs before you check in class.
give students more time by pausing the recording when
the speakers have finished talking about each option. Ask ANSWERS
students to compare their notes in pairs at the end and a We have to keep a cash reserve.
then conduct whole-class feedback. b We could borrow the money. / We might borrow the money.
c We should issue equity.
SUGGESTED ANSWERS
d We don’t have to repay the debt immediately.
Equity Finance: They reject it. The company’s too small to issue
e We shouldn’t look for private investors.
shares on the stock market and they don’t want to increase the
number of directors.
Retained Profits: They reject it. Although the company has large
cash reserves and makes regular profits, they’re worried about
Over to you
being exposed (in case the company has future cash-flow issues). Ask students to work with a partner and decide who
They’re also concerned about the length of time it would take to will be Student A and Student B. Ask Student A to read
raise money through retained profits. the information on page 33 and Student B to read the
Debt Finance: They choose this method. Despite worrying about information on page 51 at the back of the book. Give them
being able to service the debt if repayments are high, they feel time to prepare for and roleplay the scenarios. For Scenario
that the ability to raise large amounts of finance quickly is very 1, check the meaning of plot of land (a specific piece of
attractive and doesn’t put so much pressure on their operations. land which can be purchased) and semi-detached house (a
Furthermore, they believe they can delay repayments, making the house which is connected to one other house). Monitor the
debt easier to manage. roleplays and give feedback when they have finished.
Get your student to take the role of Student A for

1:1 both Scenarios 1 and 2, and you take the role of
Student B. Give feedback when you have finished.
wExtra activityw
05–06 Video Put students into pairs and ask them to interview
each other about an incident of a discrepancy between
forecasts and results at their company or a company
they know well. They should ask each other about the
Before you watch following: 1) what the discrepancy was, 2) possible
reasons why it happened, 3) how the company dealt
Put students into pairs to discuss the questions. Encourage with it, and 4) what the company learned from the
them to be as specific as they can when they’re talking experience. Give students time to prepare their questions
about the financial results they look at, the form that these and answers and then have them interview each other.
take, i.e. how they are presented and how students access Students could also record these interviews with a
them, what they learn from looking at them and how they mobile device or video camera and focus not only on
use this information. Conduct whole-class feedback. what they’re saying, but also on their body language. If
students make recordings, they can then watch them
back and reflect on how effective their performance and
While you watch that of their partner was, both in terms of their use of
1 Tell students that they’re going to watch the English and their body language and self-presentation.
first section of the video, in which Alex, George (who
they haven’t met before) and Andy talk about how their 3 Tell students that they’re going to watch an
companies use interim results. Ask students to read the interview with Alex in which he talks about how his
statements and predict whether the sentences will be company uses balanced scorecards. Ask students to read
true or false based on what they know about interim all the sentences in the incomplete summary and predict
results and how companies use them. Play the section on what the missing words could be. Play the section on
Interim results and ask students to mark the statements Balanced scorecards and ask students to complete the
true or false and then write correct versions of the false summary. Alternatively, students may prefer to make
statements. Ask students to check their answers in pairs notes on what Alex says while they’re listening and then
before checking answers in class. You could then ask use them to complete the summary afterwards. You can
students which of the three speaker’s opinions is closest to then ask students to compare their answers in pairs before
their own, giving reasons. checking answers in class.
ANSWERS ANSWERS
a F – He assesses performance every quarter. a their own responsibilities

b T b growth, business, marketing
c F – No, he also has goals for the next few years, quarterly goals c new business, service
and monthly goals. d admin, staffing
d T e weekly meetings
e F – He looks at them very regularly.
4 Elicit or check the meaning of management
f T
consultant (a person who advises companies on how
2 In the next section on Variances between forecasts they can improve their performance). Tell students
and results, students are going to look in more detail at they’re going to watch the next section on Management
how companies deal with discrepancies between forecast consultants, in which Sumeer talks about how his company
figures and actuals. Play this section and ask students to has used them. Play this section and ask students to
make notes on their answers. Students can then compare make notes on their answers. Play the section again if
their answers in pairs before checking answers in class. necessary so that students can check their answers. Check
answers in class.
ANSWERS
ANSWERS
a turnover forecasts
b Turnover was lower than the forecast but they recruited staff a To help identify acquisition targets.
based on the forecast. It lowered profitability. b They research targets and then work with the management to
c They reduced staff levels – one person had to go. choose a target.
d They try to produce more realistic forecasts.
Finance speak
Students are now going to review and check their
understanding of some useful terms for talking about
finance which they heard in the video. If students aren’t
Review 05–06
sure about the meaning of all of the items in the box,
encourage them to start with the items they do know
and then use the context to deduce what the remaining
practice with the language and content of Units 05 and
missing words could be. Students can work in pairs to
06. You could use these sections in class after completing
complete the sentences. Check answers as a class.
these units or later in the course as a review activity.
ANSWERS Alternatively, you could assign them as homework or use
a break down them to help students who’ve missed a lesson to catch up
b capacity with the rest of the group. After students have completed
c according to the exercises, ask them to go through the checklist as a
d on course reminder of what they have covered in these two units.
e impact
f going forward 05 Interim results
g narrow
h explore ANSWERS
1
1 d 2 a 3 b 4 f 5 e 6 c
After you watch 2
a in line with
Students could discuss the questions either with a partner b due to
or in small groups. Encourage students to give examples c because
from their experiences and working lives when responding d down on / behind
to all three questions. They may have interesting anecdotes e behind / down on
to share, in which case encourage them to do so, but 3
ensure that students don’t feel under pressure to share a Just to summarize
private or confidential information. Give students about b What’s your view
ten minutes to discuss the questions and then conduct c So you’re proposing
whole-class feedback. d how do we go about it
e go away and report back
4
a If we don’t cut costs, profits are going to fall.
b If we raised prices, (our) customers would leave.
c If costs go up, we will need to save money.
d If we saved 3%, we would cut costs.
e If we review/reviewed our processes, we will/would save money.
06 Business development
ANSWERS
1
a highlights b devise c provide d identify e give
2
a words b interesting c saying d saying e mean
3
a retain b service c issue d raise e fund
07
Learning objectives
Financial services
and advice
In this unit, students will practise negotiating
hedging (noun [uncountable]) an action taken to reduce
the risk of a financial transaction
letter of credit (noun [countable]) a document sent
from one bank to another that guarantees payment as
letters of credit, and giving and receiving tax
long as certain conditions are met
advice. They will read a commercial banking
options contract (noun [countable]) a contract that
website page and an executive summary. Students
gives the holder the right to buy or sell an asset at today’s
will also listen to telephone calls about letters
price at a future time
of credit and a meeting about tax advice. The
port of discharge (noun [countable]) a place where the
language focus is on banking and tax expressions,
items in a shipment are unloaded before being sent on to
phrases for negotiating, and phrases for making
the recipients
recommendations and suggestions.
purchase order (noun [countable]) document issued by
Digital resources: Unit 07 the buyer’s company authorizing the transaction
tax relief (noun [uncountable]) a reduction in tax that
you are allowed for a particular reason
Presentation Kit
Background information Warm up

This unit focuses on the services that banks, Start by drawing students’ attention to the quote from
accountants and tax advisors provide to companies. Benjamin Franklin. Ask students to discuss the questions
The main purpose of these services is to help in the Warm up. Check they understand that Franklin
companies process payments, both domestic and thinks that having to pay taxes is as unavoidable as
international, to provide them with credit when death. Then ask these questions:
necessary and to advise them on how to reduce ●
Do you think that dealing with taxation is the most
their tax bill. Students will also look at some of the important aspect of financial services?
documents which are used during this process, such ●
Which other financial services do you know of, e.g.
as bills of exchange and lading, and letters of credit. providing credit, insurance services, etc?
created to provide information about financial Banking services
services and tax advice. Here are some links to get
you started: 1 Tell students that they’re going to start by looking
at the services that banks offer businesses. Put students
https://www.crfonline.org/orc/cro/cro-9-1.html into pairs to discuss the questions. Remind students that
http://www.investopedia.com/ask/answers the focus here is on companies’ relationships with banks
/042315/what-difference-between-bill-exchange rather than their own personal experiences with banks,
-and-bill-lading.asp so they don’t have to mention the latter if they don’t feel
comfortable doing that. Conduct whole-class feedback.
ANSWERS
Key terms glossary a current accounts, lines of credit such as loans and overdrafts, help
collecting payments, foreign exchange services, letters of credit
bill of exchange (noun [countable]) the seller’s order b In terms of banking, a good relationship is defined by regularly
for payment by the buyer (usually the buyer’s bank) on or servicing debt and keeping your account in credit. The bank is a
after receiving the goods key stakeholder in any business. The better your relationship with
bill of lading (noun [countable]) a shipping company’s
Warm
receipt for upgoods transported the bank, the more likely they are to extend credit lines when you
Start by allowance
drawing students’ attention tothe theright
quote from need them.
capital (noun [countable])
Benjamin Franklin. Ask students to discuss the questions
to deduct spending on equipment or other capital 2 Ask students to read the names of the documents and
in the Warm up. Check they understand
investments from the company’s tax bill that Franklin
match them to their definitions. Students may not be
thinks
declarable income (noun [uncountable]) moneyasthat
that having to pay taxes is as unavoidable
familiar with all of these English terms for documents, but
death.
a person Then ask theseearns
or company questions:
that they have to let the tax encourage them to use the words that they do know in the
office
●
Doknow aboutthat
you think so that theywith
dealing can be charged
taxation is tax
the on it
most document names, e.g. debit and purchase, to deduce their
deposit (verb)aspect
important to pay of
money intoservices?
financial a bank account definitions. Ask students to compare their answers in pairs
forward
●
Whichcontract (noun services
other financial [countable]) an know
do you agreement
of, e.g. before checking answers in class.
between two people
providing credit,or organizations
insurance to buy
services, etc. or sell an
asset at a set date in the future ANSWERS
1 b 2 c 3 d 4 a
42 07 Financial services and advice In Company 3.0 ESP Corporate Finance © Macmillan Publishers Limited 2017
3 Tell students they’re going to read an article about ANSWERS

banking services and match the services to the documents a phone call 1 d phone call 1
from 2. The aim is for students to read for gist and get a b phone call 1 e phone call 2
general overview of the information about each type of c phone call 2 f phone call 2
service, so discourage them from worrying about unknown
vocabulary items at this point. Encourage students to 19
focus on the key content words in each paragraph that
they do know to help them identify the correct documents. 1
Ask students to compare their answers in pairs before Chris: Good morning, Cain Daniels. Chris Perry
checking answers in class. speaking. How can I help you?
Ryan: Good morning. This is Ryan Simpson from New
ANSWERS
Capital Bank. I’m calling about a letter of credit, our
a Direct Debits & IBANS
reference BK 4536 FJ.
b Invoices & Purchase Orders
Chris: Let me just check our system. Yes, I’ve found that.
c Forward & Options Contracts
How can I help you?
d Bills of Exchange & Lading
Ryan: Well, we’ve just received the bill of lading and I’m
4 Ask students to first use their existing vocabulary afraid we’ve noticed a discrepancy between the bill of
knowledge and what they can remember from the text lading and the original letter of credit.
in 3 to match the words and then refer to the text to Chris: Oh no. Could I ask what the discrepancy is?
check or complete their answers. Students can compare Ryan: Well, the letter of credit specifies the port of
their answers in pairs before you check them in class. discharge as Harwich, but the bill of lading states the
Students may be unsure about the meaning of some port of discharge as Southampton.
words, e.g. mitigate (to reduce or avoid the negative effects Chris: Okay ... I’ve checked our copy of the bill of lading
of something) and reassurance (something which makes and I can see Southampton is specified. I’ll just check
someone feel less nervous, scared or doubtful). the purchase order.
ANSWERS … No, the port specified on the purchase order is
1 d 3 b 5 a 7 f 9 g
Southampton. So I’m happy to waive the discrepancy.
2 c 4 e 6 j 8 i 10 h
I’m sure it’s just a mistake. We’ve done business with
this supplier several times.
5 Elicit or check the meaning of creditworthiness and then Ryan: Okay, I’m able to authorize that but I will need
ask students to complete the sentences. Encourage them to receive confirmation of the waiver in writing and
to use the context to help them. Students can compare authorization to amend the letter of credit. We’ll also
their answers in pairs before you check answers in class. need to confirm the amendment with the beneficiary.
Chris: Okay, how long will that take?
ANSWERS
Ryan: I can’t say precisely, but it could take up to three
a do business, get reassurance, cash-flow issues
working days.
b streamline, processes, deposit cash
Chris: Okay, but once this amendment is confirmed,
c hedging strategies, mitigate, risks
you’ll release the funds?
d working capital, sales ledger
Ryan: Yes, I’d expect us to release the funds shortly after
6 Put students into pairs to discuss their answers to the confirmation.
questions. If students have experience of working with Chris: Okay, thanks for contacting us.
letters of credit, encourage them to bring these experiences Ryan: No problem. Thanks, bye.
into their discussions. If they don’t, they can use their 2
knowledge of letters of credit and working in finance in Chris: Good afternoon, Cain Daniels. Chris Perry
general to speculate about what the common problems with speaking. How can I help you?
letters of credit could be. Conduct whole-class feedback. Samantha: Good afternoon, this is Samantha White from
7 19 Refer students to the information about Cain New Capital Bank. I’m calling about a letter of credit,
Daniels on the left. Check the meaning of metal refiner (a our reference BK 2347 AD.
company that refines natural materials to produce metals) Chris: Another one? I was just speaking to your colleague
and ore (natural material that we take out of the Earth this morning.
and refine to produce metals or minerals). Ask students to Samantha: Really?
read the information and instructions. Check the meaning Chris: Yes, but we do have a lot of outstanding
of port of discharge (see Key terms) and waive (release purchases. Anyway, how can I help?
someone from an obligation to do something) and then Samantha: Well, we’ve just received the bill of lading and
ask students to read the six questions and make sure they I’m afraid we’ve noticed a discrepancy between the
understand them. Play the recording and ask students to bill of lading and the original letter of credit.
listen and write either 1 (for phone call 1) or 2 (for phone Chris: Okay, I thought so. Could I ask what the
call 2) next to each question. Play the recording again if discrepancy is?
necessary and then check answers.
In Company 3.0 ESP Corporate Finance © Macmillan Publishers Limited 2017 07 Financial services and advice 43
Samantha: Well, the letter of credit specifies 500 tonnes wExtra activityw
of copper ore, but I’m afraid the bill of lading Getting the right intonation is important when you’re
specifies 700 tonnes. asking questions to make requests and check information.
Chris: Okay, let me just check our records. You could remind students that we usually use a rising
… So I’ve checked our records and we haven’t intonation at the end of closed questions with yes/
received a bill of lading, but our purchase order no answers and a falling intonation at the end of open
specifies 500 tonnes. questions. Ask students to work in pairs and take it in
Samantha: Okay. turns to read the conversation in 9 aloud. Monitor students
Chris: I don’t want to waive this until I’ve checked it out. as they’re reading the conversation, offering correction
Could I contact our purchasing department and get with the intonation of the questions where necessary.
back to you?
Samantha: No problem.
Chris: What’s your number, please? Over to you
Samantha: It’s 020 7 889 5676.
Ask students to work with a partner and decide who
Chris: Okay, I’ll look into this and get back to you.
will be Student A and Student B. Refer students to their
respective pages at the back of the book, and give them
8 19 Tell students that they’re going to listen again time to prepare for and roleplay Scenario 1. They then
and focus on the specific language used in the two phone swap roles and roleplay Scenario 2, which is a similar
calls. Before you play the recording again, you could ask situation. If time is short, students could just do one of the
students to predict the correct words based on what they scenarios. Monitor the roleplays and give feedback when
can remember. Then play the recording so that students they have finished.
can check or complete their answers. Ask students to
compare their answers in pairs before checking answers Get your student to take the role of Student A
in class. You may want to draw students’ attention to 1:1 for both Scenarios 1 and 2, and you take the
the use of language to soften and add politeness in these role of Student B. Give feedback when you have
sentences, e.g. the use of just in front of verbs (a and c), finished.
the use of Could I …? (b and h) to make polite requests and
the phrase I’m happy to + verb (d) to show willingness to
help. Tell students that this kind of language is often used Tax planning
by native speakers of English.
1 Put students into pairs and ask them to read the
ANSWERS statements and choose the one which most closely reflects
a just, system their opinion of tax. Students then tell their partners
b Could, discrepancy which statement they’ve chosen, giving reasons. Encourage
c purchase students to bring in examples of their own experiences
d waive of dealing with corporate taxation where appropriate.
e amendment, release Even if students don’t have any experience with corporate
f records, specifies taxation, they should all have experience of paying tax,
g checked, out so they could bring this into their discussions if they feel
h contact, get comfortable doing so. Conduct whole-class feedback.
9 Encourage students to try to complete the conversation 2 Ask students to read the information and think about
without looking back at the phrases from 8. They can then the standard ways in which businesses can reduce their tax
look back at 8 to check their answers. Students can also bill. Encourage them to think in general terms, e.g. make
use the words that come before and after the gap to help use of tax exemptions, rather than getting into the specific
them deduce what type of word should go in the gap, e.g. details of the taxation system in the country where they
a verb must follow the word to in gap c. Check answers live. Students can discuss their ideas in pairs. Conduct
in class by asking two students to read the conversation whole-class feedback.
aloud. Suggested answer
ANSWERS Standard ways to reduce tax liability are to reduce income by
a just, check, system increasing expenses or use any tax exemptions that the tax authori-
b what, discrepancy ties allow.
c waive, discrepancy
d waive, checked
e contact, get back
3 20
Before playing the recording, ask students to Clive: So we’d incur those expenses earlier?
predict what the four main suggestions will be. Then play Sonia: That’s right. And that would bring profits down by
the recording and ask them to make notes on the four another £30,000 to £370,000.
main suggestions proposed. Ask students to compare their Clive: Okay, that would be great but the bill will still be
answers in pairs before checking answers in class. Check quite large.
students know the meaning of capital allowances. Gary: Yes. We were wondering if you had income you
ANSWERS could delay.
a claim capital allowances on asset purchases Clive: How do you mean?
b bring forward maintenance work and incur expenses earlier Sonia: Well, if you could delay any income you receive
c delay income before the end of the accounting period, then you
d change the accounting period to close the accounts before the wouldn’t have to pay the tax until next year.
summer Clive: Well, that’d be difficult. We make most of our
income in the summer and it’s all already earned.
There’s no way we can defer much.
20
Sonia: Okay, then we need a more radical solution.
Clive: Thanks for coming, Gary. Clive: And what would that be?
Gary: No problem, Clive. This is my associate, Sonia. Sonia: Well, do you expect such a busy summer next year?
Sonia: Hi, pleased to meet you. Clive: We’d like to think so but it really depends on the
Clive: Pleased to meet you. weather.
Gary: So, how can we help, Clive? Sonia: So, your current accounting period runs from
Clive: Well, as I said on the phone, we had an amazing January 1st until December 31st. This means your
summer last year and that was great but it’s also peak period, the summer, is included in this year’s
tipped us into the higher-rate tax bracket and we’re income. Why don’t you change your accounting period
facing an enormous tax bill. Basically, I’d like to keep so that you close the accounts just before the summer?
as much of our profits as we can. Clive: Can we do that?
Gary: Absolutely, well done on last year. Sonia: Yes, you can. We’d need to provide a reason but
Clive: Thanks. we can deal with that later.
Gary: But obviously we don’t want you to give up all your Clive: Okay.
profits. Can I bring Sonia in here? Sonia: So, if you did that, you’d be able to defer your
Clive: Of course. summer income until next year’s tax payment. That’ll
Sonia: Well, I’ve had a look through your accounts, comfortably get you below £300,000 and it’s unlikely
thanks for sending them through … you’ll make the same profits next year. You know the
Clive: Not a problem.
British weather!
Sonia: … and I think there’s a number of things we can do.
Clive: That’s great. 4 Put students into pairs and ask them to discuss how good
Sonia: Well, firstly, I noticed you purchased several they think the suggestions are and whether they would give
assets last year. the same advice if they were the accountants in this situation.
Clive: That’s right.
If students have a good knowledge of tax regulations in their
country, they should be able to say whether it would also be
Sonia: And you’ve recorded them directly and amortized
possible to do the things the advisors suggest there. Bringing
them in the normal way.
forward maintenance work to incur expenses earlier and
Clive: Yes, that’s right.
delaying income should be possible everywhere, but claiming
Sonia: But the thing is, you’re entitled to capital capital allowances on asset purchases and changing the
allowances on asset purchases. This means you can accounting period may not be.
claim tax relief on the purchase price of the asset.
Clive: Yes, right. 5 Tell students that they’re going to order some
Sonia: So what we need to do is deduct the asset sentences from the meeting. They can use what they
purchase price from your operating profit, which remember from listening to the meeting to help them.
would reduce your operating profit to £400,000. Don’t check answers at this stage.
Clive: That’s great but it still leaves us with a big bill. 6 21 Play the recording and ask students to listen
Sonia: Yes, that’s true, but there’s more we could do. For out for the words they ordered in 5, so that they can check
example, we see from the information you sent us their answers. If necessary, play the recording again. Draw
that you’re preparing to do some maintenance work students’ attention to the use of the conditional structure
soon. if you did that, you’d be able to defer and elicit or explain
Clive: That’s right. The park needs constant upkeep. that this is used to show that deferring is a hypothetical
Sonia: Well, how about bringing that work forward, possibility, which is only likely to happen if the client is in
before you close the accounts? agreement with it.
In Company 3.0 ESP Corporate Finance © Macmillan Publishers Limited 2017 07 Financial services and advice 45
ANSWERS 10 Ask students to match the words from the report to

a But the thing is their meanings, using the context in the report to help
b what we need to do is them. Ask students to compare answers in pairs before
c how about bringing checking in class.
d Why don’t you change
ANSWERS
e if you did that, you’d be able to defer
a 4 b 2 c 5 d 1 e 3
21 11 Ask students to look back at the report in 9 and find

the sentences they need to help them complete sentences a,
a But the thing is, you’re entitled to capital allowances
b and c. Students then complete the recommendations with
on asset purchases.
the correct verbs. Check students’ answers. Elicit the two
b So what we need to do is deduct the asset purchase structures used with the verbs, referring to the Grammar tip.
price from your operating profit.
c Well, how about bringing that work forward, before ANSWERS
you close the accounts? a propose b recommend c
suggest
d Why don’t you change your accounting period so that
you close the accounts just before the summer? Grammar tip
e So, if you did that, you’d be able to defer your Ask students to read the information and examples in the
summer income until next year’s tax payment. box and make sure they understand the two structures
that you can use to make suggestions with the verbs
7 Ask students to look back at the complete sentences from propose, recommend and suggest. Tell students that they’re
5 and match them to their functions. Check answers in class. now going to practise using these structures in 12.
ANSWERS
12 Ask students to rewrite the sentences using the
1 a 2 c, d 3
b, e
words in brackets. If the word in brackets is a verb, they
8 Tell students that they’re going to focus on the will need to formulate the sentence in one of the two ways
structures following the phrases for making suggestions (or both ways) they looked at in the Grammar tip. If the
in 5. Ask students to refer to the sentences in 5 to help words in brackets don’t include a verb, they will need to
them see what the correct structures are. Ask students to make a phrase to use in the sentences. Ask students to
compare answers in pairs before checking in class. compare their sentences in pairs before checking answers
in class.
ANSWERS
SUGGESTED ANSWERS
a 3 b 5 c 1 d 4 e 2
a I suggest shortening / that we shorten the accounting period.
b What we need to do is bring forward expenses.
wExtra activityw c I propose claiming / that they claim capital allowances.
Put students into pairs. Ask each student to think of and d How about deferring some of your income?
write down five issues that they’re currently having at e The thing is, you can claim tax relief.
work that they need a suggestion or recommendation for.
Give them a couple of possible examples of issues, e.g.
I need to increase my productivity at work. I need to be able Over to you
to understand financial documents in English. Students then 1 Ask your student to tell you about how their
take it in turns to tell their partner what their issues are
and make a suggestion for how they can deal with each
1:1 company or a company they know well could
reduce its tax liability. Listen and ask
issue. Remind students to use the phrases for making questions.
suggestions from 8. Monitor students’ conversations and
give them feedback when they’ve finished. 2 Get your student to take the role of Student A, and you
take the role of Student B for Scenarios 1 and 2. Give
feedback when you have finished.
9 Tell students that they’re now going to read and
complete a summary of the recommendations that the
accountants made to Martin’s Holiday Park regarding wExtra activityw
the tax strategy they should adopt. Ask students to read Ask students to write a report summarizing the
the report all the way through once and then go back recommendations they made during the Over to you
and decide which sentences should go in which gaps. roleplay in which they were the tax consultant. Students
Students only need to write the number for each sentence. can use the report on page 39 as a model and write a
Check answers in class. You could also ask students text of roughly the same length. Remind students to
how this executive summary compares with reports on use the verbs (propose, recommend, suggest) for making
recommendations which they write or read at work. suggestions that they’ve learned. Monitor students and
ANSWERS give feedback when they’ve finished.
a 3 b 2 c 5 d 1 e 4
Auditing
In this unit, students will practise making small talk
Warm up
Michael Strachan. Ask students to discuss the question
and building relationships, opening a meeting, and in the Warm up. Check they understand that Strachan
asking sensitive questions. They will read a blog post means that if auditors do too good a job, their clients
on relationship-building skills and an audit policy. may want to end their relationship with them because
Students will also listen to a social conversation, an the client has to make corrections to their financial
opening meeting, and a difficult conversation. The reporting, pay more tax than expected or pay a fine. Then
language focus is on auditing expressions, meetings ask these questions:
expressions, and indirect questions. ●
D o you have any first-hand experience of auditors
losing business by doing too good a job?
Digital resources: Unit 08 ●
W hat kind of relationship usually exists between an
Audio; Video; Photocopiable worksheet; auditor and the company they work for? Is it friendly,
Glossary; Answer key; Listening script; Teacher’s hostile, neutral, etc?
Presentation Kit
Financial auditing is the process of checking a How to start an audit
company’s financial statements against specified 1 Put students into pairs and ask them to read the
criteria – usually international accounting standards. statements. Check the meaning of credibility (a quality that
Auditors are unbiased, independent financial experts makes it possible for you to believe in or trust someone or
who are deemed capable of providing a reasonable something). Then ask students to choose the statement
reassurance that a company’s financial statements which most closely reflects their opinion and tell their
are accurate. They do this by examining the financial partners why they agree with it, giving reasons. Encourage
statements and then giving, or rendering, an students to bring in examples of their own experiences of
opinion on whether the financial statements comply audits where appropriate. Conduct whole-class feedback.
with accounting standards and whether there are You could also ask students to give all the advantages and
any errors in them. disadvantages of being audited they can think of.
created to provide information about auditing. Here 2 Tell students that they’re going to read a blog post
are some links to get you started: about the importance of relationship-building for auditors.
Find out what students think auditors can or should do
http://www.investopedia.com/terms/a/audit.asp in order to establish a good relationship with the people
http://asq.org/learn-about-quality/auditing/ at the company they’re auditing. Then ask students to
read the blog post and find the answers to the questions.
http://www.pwc.com/m1/en/services/assurance
Put students into pairs to discuss the questions before
/what-is-an-audit.html
checking answers in class. You could also ask students
whether they agree with the advice given in the blog post.
Students’ answers are likely to be influenced by the culture
Key terms glossary they’re from.
audit (verb) to officially examine the financial records of
ANSWERS
a company, organization, or person to see that they are
a Because an auditor’s main job is to give an opinion on the
accurate
accounts.
audit (noun [countable]) an official examination of the
b It can make things go more quickly and smoothly and makes
financial records of a company, organization, or person to
asking sensitive questions easier.
see that they are accurate
c Auditors need to keep clients happy so they come back the
irregularity (noun [countable]) a situation in which the
following year.
rules, laws, or usual ways of doing things have not been
followed
reconcile (verb) to make two sets of accounting data
consistent
regulative (adjective) relating to regulations
render (verb) to officially announce a judgment or decision
segregation (noun [uncountable]) the process of
dividing something up
transaction (noun [countable]) the action or process of
buying or selling something
In Company 3.0 ESP Corporate Finance © Macmillan Publishers Limited 2017 08 Auditing 47
3 Tell students that they’re going to focus on specific Ian: Oh, I know – it can be really bad during the rush
words and phrases used in the blog post. Check the hour. I’m lucky – I can cycle to work.
meaning of unbiased (showing no preference or prejudice Sarah: Mmm – that’s much better. I can walk to our main
towards one group of people’s interests or another’s). You office but I have to use the car when I’m visiting clients.
could ask students to use the meanings to predict the Ian: Do you travel a lot?
missing words and phrases and then reread the blog post
Sarah: Yes, two or three times a month. Anyway, have
to check. Then check answers in class.
you worked here long?
ANSWERS Ian: About three years. I was at a manufacturing
a the entity company before.
b approachable Sarah: Oh really? This must be quite different then …
c calm people down
d impartially
6 Ask students to read the sentences and put them
in the correct order based on what they can remember
wExtra activityw
from 5 and what they know about the typical structure of
Refer students to the blog post in 2 and ask them to conversations in English. You may want to help students
think of five tips that they would give to auditors doing by telling them that the conversation started with
an audit at their company. These can be both general sentence d (Did you find us okay?). Make sure students
and specific and include recommendations on how to are aware that this is a standard phrase used in small talk
carry out the audit, as well as practical advice, such as in English in order to ask someone how their journey
where the auditors can have lunch. Students can discuss was. Students then order the remaining sentences. Don’t
what tips they would give in pairs and then write them confirm answers at this stage.
down. Encourage students to use the language they’ve
learned so far in this course for making suggestions 7 22 Play the recording and ask students to check
and recommendations, e.g. I suggest + verb + -ing …, You their answers. If necessary, play the recording again. You
should/shouldn’t …, You have to …, etc. Conduct whole- may want to draw students’ attention to the use of the
class feedback on the tips students have written. Past Simple and Present Perfect. Elicit or explain that the
Past Simple is used to refer to finished events and the
Present Perfect is used, in this case, to refer to a situation
4 Divide students into A/B pairs and ask them to read
that is ongoing and hasn’t finished yet.
the information. Give students time to prepare and to
think about what would be good small-talk topics in this ANSWERS
context. Students then roleplay the conversation in pairs. 1 d 2 e 3 b 4 a 5 f 6 c
When they’ve finished, give students feedback on how
successfully they demonstrated that they’re friendly and 8 Students may or not be familiar with the question-
approachable or how successfully they made small talk. answer-add small-talk technique, or rule. If they’re not, you
may want to give a quick demonstration of how it works by
5 22 Tell students that they’re going to listen
getting a student to ask you a small talk question, e.g. How
to a conversation between a finance director and an was your weekend? You could then give an answer, e.g. Good,
auditor. Ask students to read the questions and check the thank you, before adding some information, e.g. I went
meaning of keep the conversation going (do something to to the cinema. Then ask students to find examples of this
make a conversation continue). You could ask students technique in 6 and to think about how these examples help
to speculate about what the answers to the questions to keep the conversation going. Ask students to discuss
could be. How similar do they expect the conversation their answers in pairs and then check answers in class.
to be to theirs? Then play the recording and ask students
to make notes on their answers. Check answers in class ANSWERS
and conduct whole-class feedback on how similar the a Did you find us okay? – Yes, it was quite easy. I used my satnav.
conversation was to students’ own conversations in 4. But the traffic coming off the motorway was awful.
Anyway, have you worked here long? – About three years. I was
ANSWERS
at a manufacturing company before.
a getting there, traffic, cycling/walking to work, travelling for work b If you give more information than is required, it helps to keep the
b responding to what the other person says, asking questions conversation going and makes it easier for the other person to
c Students’ own answers develop the conversation.
22
9 Ask students to write responses to the questions which
are true or realistic for them. They should include an
Ian: Hi, I’m Ian, the finance director. answer to the question and some extra information. Make
Sarah: Hi, Ian, I’m Sarah. Pleased to meet you. sure students are aware that they don’t have to share any
Ian: You too. Did you find us okay? personal information which they don’t feel comfortable
Sarah: Yes, it was quite easy. I used my satnav. But the sharing. As students most likely won’t be away on a
traffic coming off the motorway was awful. I was in a business trip while they’re taking part in this lesson, they
queue for over half an hour! will need to make up a possible answer to question e.
48 08 Auditing In Company 3.0 ESP Corporate Finance © Macmillan Publishers Limited 2017
SUGGESTED ANSWERS Ian: If you just let me know, I can provide it.
a Good thanks, but the train was a little busy. Omar: Good, thanks, Ian. So, I guess that just leaves the
b About two years. I started in sales. time frame. Let’s go over that now. The audit will
c About an hour – there wasn’t much traffic. take three days and we need a further two days to
d It was okay, but I had a lot of meetings. complete the report. That means the report will be
e In a local hotel. It’s very nice. ready by Monday and we’ll hold a closing meeting on
Monday. Are there any questions?
10 Put students into pairs and ask them to take it in
Ian: Yes, I was just wondering if…
turns to ask the questions in 9 and give the responses
that they wrote. Encourage students to try to make their
conversations sound as natural as possible and also to 2 23 Tell students that they’re going to listen again
spontaneously carry them on after one student has given and focus on the specific language that Omar uses. Check
their reply. Monitor students’ conversations and then give the meaning of the body of the audit (the main part of
feedback. it) and render an opinion (to give an opinion). Note that
students will look at the latter in 2 on page 42. Before you
wExtra activityw play the recording again, you could ask students to predict
Put students into pairs and ask them to imagine that the missing words based on what they can remember. Then
they’re meeting each other for the first time in a situation play the recording so that they can check or complete their
that they could actually find themselves in, e.g. during answers. Ask students to compare their answers in pairs
a coffee break at a meeting or on training course, at a before checking answers in class.
conference, etc. Students spontaneously ask and respond ANSWERS
to each other’s questions, thereby making small talk. Tell a the purpose of
students that they have to keep the conversation going b be leading
for five minutes, trying to minimize pauses as much as c ’ll be responsible for
possible. Monitor students’ conversations and give them d main aim of
feedback when they’ve finished. e run through
f go over
g will take
The opening meeting h will be ready by
1 23 Ask students what they would expect an 3 Ask students to read the sentences in 2 again and identify
audit team to say during an opening meeting and what what Omar uses them to explain. Encourage students to use
information they would expect the auditors to provide. the content or structures, such as the infinitive of purpose
Then ask students to read the list of options before (to + verb), e.g. to confirm in sentence a, to help them choose
listening to the recording and ticking the ones they hear. the correct functions. Ask students to compare answers in
Check answers as a class. pairs before checking answers in class.
ANSWERS ANSWERS
audit-team responsibilities 1
a, d 2 e, f 3 b, c 4 g, h
the purpose of the audit
the time frame 4 Ask students to use the information in the box on the
a closing meeting left and the example sentences in 2 to prepare to start an
audit opening meeting. Put students into pairs and ask
them to take it in turns to start the meeting. Monitor
23
students as they do this. Students can give each other
Omar: Really good to meet you all and thanks for the feedback on how effectively they did this and you can also
warm welcome. So the purpose of this meeting is add your feedback to theirs.
to confirm the audit plan and clarify the timescales.
First, let me introduce the team. My name’s Omar.
I’ll be leading the audit and Kelly and Sarah will be How to conduct an audit
assisting me. They’ll be on site at all times and they’ll 1 Tell students that they’re going to read an article about
be responsible for the body of the audit. Okay, as how to begin a new audit investigation to get the gist of
you know, the main aim of the audit is to render an the audit methodology it describes. They can ignore for
opinion on the accuracy of your financial information. now the fact that some phrases in the text are in bold.
Let’s run through how the process works. We’ve spent When students have finished reading, put them into pairs
time getting to know your business and we think and ask them to discuss how similar the methodology
we’re up to speed. Now, we’ll look at your control described in the article is to that of audits they’ve been
structure and some of your transactions. We have a involved in or, at least, been aware of. Encourage students
lot of documentation already – thanks for providing to bring in examples from their own experiences where
that – but if there’s anything else, who should we ask? appropriate and compare and contrast these with what is
described in the article. Conduct whole-class feedback.
2 Ask students to read the definitions and match them SUGGESTED ANSWERS
to the words in bold in the article they’ve just read in 1. a Because there’s no physical evidence for the transaction so it
Encourage them to use the context to help them. Ask cannot be proved.
students to compare answers in pairs before checking in b It’s possible that there has been an administrative error or that
class. Check answers in class and ask students to note the money has been stolen.
down any words or phrases that they want to remember. c Investigate further and probably report the irregularity to your
superior.
ANSWERS
a authorization of transactions 2 24 Tell students that they’re now going to listen
b potential misstatement to a discussion between Kelly and finance director Ian
c regulative information about the irregularity Kelly found. Ask students to read
d reconciling amounts the questions. Then play the recording and ask students to
e segregation of duties make notes on their answers. Check answers in class.
f manually check
g render an opinion SUGGESTED ANSWERS
h entity’s internal controls a He feels he’s being accused of stealing the money.
i physical records b three
c Talk to the other members of the finance team.
3 Ask students to complete the questions with words
from their answers in 2. Encourage them to pay attention
24
to the words that come before and after the gap to help
them complete the questions. Students can compare their Kelly: So thanks for taking the time to talk to me.
answers in pairs before you check answers in class. Ian: Not at all, how can I help?
ANSWERS Kelly: Well, I’m afraid there’s something in the accounts
a regulative
I don’t understand and I’d just like to get some
b controls
clarification.
c segregation Ian: Okay.
d physical Kelly: Well, there are several entries with no physical
e render documentation supporting them.
Ian: Really?
4 Divide students into pairs. Give them time to prepare Kelly: Yes, they’re for various items but the bulk of them
their answers to the questions in 3. Then ask students to relate to refurbishments. They’re entries for paint,
take it in turns to ask and answer the questions. Monitor furniture and other fixtures. The total for all the
students’ conversations and then give feedback when entries is £54,000. Would you know anything about
appropriate. this?
SUGGESTED ANSWERS Ian: No, we haven’t done any refurbishments in over a
a Auditors need to be familiar with the regulations affecting the year. Could it be a mistake?
company being audited to ensure that the practices they observe Kelly: Well, that’s what I thought at first but there are
are within the regulations. also cash withdrawals for the same amounts a few
b If there is a clear structure of responsibility and everyone knows days after each entry. I was wondering if you could
what records and documents to keep, the company probably has explain that.
good, effective controls. Ian: No, I don’t have any idea. You don’t think I stole the
c It’s a good idea to have strong segregation of duties. This money?
ensures that there is no duplication of tasks and everyone knows Kelly: I don’t want to make that claim at this stage but
who is responsible for which task, ensuring things are not missed this is definitely an irregularity. Could I ask who else
and, if they are, it’s clear who is responsible. can enter expense items into the system?
d Students’ own answers Ian: Well, any of us can. There are only three of us.
e Auditors need to render an opinion on the financial statements Kelly: Yes, I noticed that in my initial investigation. But
so that external parties such as the bank and shareholders know could you confirm that only the three members of the
that the financial information is accurate and reliable. finance team can access the system?
Ian: Yes, only us. So what happens now?
Accounting irregularities Kelly: Would you mind if I talk to the other members of
your team?
1 Tell students that they’re now going to look at an Ian: No, not at all.
auditor’s findings and the irregularities they can uncover.
Put students into pairs and ask them to read the notes
3 25 Ask students to read the three statements.
and discuss the questions. Encourage students to bring in
They could also decide which of them is likely to be the
examples of their own experiences of auditing or working
best summary of the meeting. Then play the recording for
with auditors in their answers to question c. Conduct
students to select the best summary. Check answers in
whole-class feedback.
class.
50 08 Auditing In Company 3.0 ESP Corporate Finance © Macmillan Publishers Limited 2017
SUGGESTED ANSWER d Could I ask if you know anything about it?

b Ian was on his own in the office around the time the irregularities e Do you mind telling me the exact date this started?
started and could have stolen the money. f Could you tell me if your system records entry times?
25 26
Kelly: Hi. Thanks for seeing me. a I was wondering if you could explain that.
Craig & Penny: No problem. b Could I ask who else can enter expense items into the
Penny: What’s going on? system?
Kelly: Well, I think Ian told you we’ve found an irregularity c Would you mind if I talk to the other members of
in the accounts and we need to investigate further. your team?
Penny: Yes, Ian said. It’s about entries for d Could I ask if you know anything about it?
refurbishments, right? e Do you mind telling me the exact date this started?
Kelly: Yes, that’s right. Could I ask if you know anything f Could you tell me if your system records entry times?
about it?
Penny: No, I’ve got no idea what it is. 7 Elicit or explain that Kelly uses indirect questions in
Kelly: And what about you, Craig? 5. Ask students to discuss in pairs why Kelly would use
Craig: Well … indirect questions so often in this situation. Conduct
Kelly: Go on, Craig, you’re not in trouble. whole-class feedback and refer students to the Grammar
Craig: Well, Ian’s been staying late a lot lately. He said he tip for more information about how to form indirect
had some problems. I asked him if he wanted some questions.
help at first but he really seemed to want to be on his ANSWER
own. I didn’t really think about it again.
She wants to be polite and indirect as she’s asking about sensitive
Kelly: Do you mind telling me the exact date this started? issues.
Craig: I can’t remember but I think it was the beginning
of June. Grammar tip
Kelly: Okay, could you tell me if your system records
entry times? Ask students to read the information about indirect
Penny: Yes, it does. Do you want me to check them?
questions in the box. Tell them to pay particular
attention to word order in indirect questions.
Kelly: Okay, thank you very much. I think we’re getting
to the bottom of this. Right, I need to speak to my
office. Thanks for your help. wExtra activityw
Put students into A/B pairs. Student A writes five direct
4 Put students into pairs and ask them to discuss what questions which an auditor could ask a finance director
they think Kelly should do now, giving reasons, and after finding irregularities in their company’s records.
saying whether they think Ian actually stole the money Student B writes five indirect questions. Encourage
– what evidence is there for or against him having stolen students to personalize their questions to their own
it? Encourage students to think about what they would contexts as far as possible. Students then swap questions
do in a similar situation. Conduct whole-class feedback with each other and rewrite the direct questions as
on students’ opinions and then ask them to read the indirect questions and the indirect questions as direct
information on page 50 and compare. questions. Monitor students to make sure that the
questions they’re writing are, in fact, direct or indirect.
SUGGESTED ANSWERS
Kelly definitely needs to inform her office and the police may need
to be informed as there is potentially illegal activity.
Over to you
5 Ask students to rewrite the questions using the words Ask students to work with a partner and decide who
in brackets. Tell students that these are all things that
will be Student A and Student B. Refer students to their
Kelly said in the meeting they’ve just listened to. Make
respective pages at the back of the book, and give them
sure students are aware that they will need to add words or
time to prepare for and roleplay Scenario 1. They then
change forms in some cases and tell them to pay particular
swap roles and roleplay Scenario 2, which is a similar
attention to word order. Ask students to compare their
situation. If time is short, students could just do one of the
completed answers in pairs before checking in class.
scenarios. Monitor the roleplays and give feedback when
6 26 Play the recording and ask students to check they have finished.
their answers. If necessary, play the recording again.
Get your student to take the role of Student A,
ANSWERS 1:1 and you take the role of Student B for both
a I was wondering if you could explain that. Scenarios 1 and 2. Give feedback when you
b Could I ask who else can enter expense items into the system? have finished.
c Would you mind if I talk to the other members of your team?
wExtra activityw
07–08 Video Put students into pairs. Ask them to take it in turns
to use the sentences from 2 as prompts to retell Alex’s
story, adding in any other details they can remember and
including sequencing words and phrases, such as then,
Before you watch after that, in the end, etc.
1 Students have encountered all of the items listed, 3 Before they watch the recording, ask students to
but if you think they may be unsure about any of them,
predict the three things Sumeer says that auditors do. They
you could elicit or check their meanings. Ask students to
can discuss this in pairs. Then play the section on The audit
rank the items in terms of how important they are in the
process and ask students to make notes on the three things
context of a company’s overall operations. Tell students
that Sumeer mentions.
that there are no right or wrong answers here, and they
should just ensure that they can give reasons for their ANSWERS
ranking. 1 They check the processes of the company to see how the data
has been produced and if these processes produced accurate
2 Put students into pairs and ask them to compare results.
and explain their rankings. Encourage students to ask
2 They look at samples and check the data accordingly.
each other questions to find out more about each other’s
3 They assess the future of the company.
opinions, and to recycle the relevant vocabulary for
banking services, auditing, preparing financial statements 4 Tell students they’re now going to watch the
and managing payments. Conduct whole-class feedback section on The experience of being audited. Check the
on which items students think are the most important meaning with students of burden (a source of worry or
and why. difficulty or a duty or responsibility that you would prefer
not to have). Ask them to read the list of statements and
then play this section for them to write Alex or Andy next
While you watch to each statement. Play the section again if necessary.
1 In the first section of the video on Banking services, ANSWERS
students look in more detail at the banking services that
a Alex
companies use. Ask students to read the questions and
b Andy
check the meaning of bank lending (the lending of money
c Andy
by banks to their customers). You could also ask students
d Alex
to think about possible answers to the questions based
on what they already know about banking services and
to discuss their ideas in pairs. Then play this section and
ask students to watch and make notes on their answers. Natural speech
Students can compare their answers in pairs before 1 In Unit 4 students have already looked at how
checking answers in class. they can use pauses to present with greater impact, but it
may be a good idea to elicit or remind students of the fact
ANSWERS
that speakers usually pause when they want to emphasize
a Companies need bank lending in order to grow their business.
the word or phrase that comes before the pause. Alex also
b Because it’s cheaper to pay the interest than getting someone to
uses pauses to present what he wants to say with greater
take a stake in your company, who you then have to pay.
impact in the section on Banking services. Ask students
c Because they provide easy short-term funding that can give a
to read the text and notice where Alex pauses. Check the
company time to get out of trouble.
meaning of predominantly (mainly) with students. Then
d They went bankrupt.
play the clip from the recording (00:10–00:24) and ask
students to listen to Alex while reading the text and notice
2 Check the meaning of facilitate (to make
where he pauses.
something easier or help it to move forward). Tell students
that they’re going to watch Alex talking about what 2 Ask students to read the sentence before they
happened when a client of his needed to borrow money listen to this second clip. They could predict where they
from a bank to facilitate growth. Ask them to read the six expect the pauses to be – reading the sentence aloud in
events in Alex’s story and decide what they think a logical pairs may help them to do this. Then play the clip (00:43–
order for the events would be. Then play the section on 01:01) and ask students to mark the pauses with slashes.
Relationships with banks and ask students to check their Play it again so that students can check or complete their
order. Play the section again if necessary. answers. Ask students to compare their answers in pairs
ANSWERS before checking answers in class.
1 c 2 e 3 a 4 d 5 b 6 f
07–08
Answer key
Review
There was a / term I learned / during my studies / and that was /
debt is cheaper than equity / and what that means is / if you bor-
row money from a bank, you pay / yes / you pay an interest rate
on the amount you’re borrowing / but that’s usually cheaper / than
getting someone in to take a stake in your business / and you have
to pay them out of your own money.
3 Put students into pairs and ask them to take it in turns practice with the language and content of Units 07 and
to say the sections in 1 and 2 out loud, pausing in the same 08. You could use these sections in class after completing
places that Alex paused in. Students could try reading these units or later in the course as a review activity.
each section twice: once while reading from the text Alternatively, you could assign them as homework or use
with the pauses marked in, and once while reading from them to help students who’ve missed a lesson to catch up
the relevant section of the video script where they don’t with the rest of the group. After students have completed
have the pauses marked in and they have to remember the exercises, ask them to go through the checklist as a
where they are. You can access the video transcript on the reminder of what they have covered in these two units.
Teacher’s Resource Centre.
07 Financial services and advice
After you watch ANSWERS
1
Students could discuss the questions either with a partner a streamline b deposit c mitigate d working e issues
or in small groups. Encourage students to give reasons to 2
support their answers to questions a and d, and examples a 3 b 2 c 4 d 1
from their experiences and working lives when responding 3
to questions b and c. They may have interesting anecdotes a The thing is, you’re entitled to tax relief.
to share, in which case, encourage them to do this. Give b What they need to do is bring forward their expenses.
students about ten minutes to discuss the questions and c How about changing the accounting period?
then conduct whole-class feedback. d Why don’t you delay income?
e If we did that, we’d / we could reduce our tax bill.
4
a allowances b declarable c year-end d forward e reliefs
08 Auditing
SUGGESTED ANSWERS
1
1 Yes, but the motorway was busy.
2 A year. I was at … before.
3 It’s good, especially the breakfast, which is excellent.
2
1 c 2 d 3 a 4 b
3
a segregation b render c reconcile d regulative e internal
4
a if you could
b mind telling
c what you do
d correct
e where the record is

In Company 30 Esp Corporate Finance Teachers Notes

Uploaded by

Copyright:

Available Formats

In Company 30 Esp Corporate Finance Teachers Notes

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

In Company 30 Esp Corporate Finance Teachers Notes

Uploaded by

Copyright:

Available Formats

What are the main topics covered in the document?

What are the main topics covered in the document?

What is the purpose of the document?

What is the purpose of the document?

ENGLISH FOR SPECIFIC PURPOSES Claire Hart

04 Talking about changes to

Review Revision exercises for Units 03 and 04

08 Making small talk and

Additional material p46 Answer key p52 Listening scripts p58

Student’s Book Structure

Forecasting revenue wExtra activityw

4 Ask students to use their answers from 3 to complete 01

3 Check students’ understanding of the meaning of

The cash-flow forecast SUGGESTED ANSWER

reductions and question tags. that your company’s budget expresses?

company’s budget is disconnected from its values and

3 Ask students to read the verb-noun combinations –

9 Check the meaning of empathy (an understanding of

Before you watch

Key terms glossary ANSWERS

Linda: I understand you have some problems, Mr

ANSWERS SUGGESTED ANSWERS

Accounts payable wExtra activityw

ANSWERS 6 09 Tell students that they’re going to listen to a

time. Students are free to decide which verb or noun for

Grammar tip Presenting slides

wExtra activityw 5 11 Tell students that they’re going to listen

9 Ask students to add at least one more expression to

little or no contact with native or proficient speakers of

Digital resources: Unit 05 Variance analysis

They can do this in pairs. Check answers in class and ask

and look at their function in the sentences and what comes

5 Students are going to focus on some of the expressions

1 Ask your student to tell you about the most

8 Elicit or check the meaning of encourage (to give

wExtra activityw 4 Tell students they’re going to read an article about

Get your student to take the role of Student A for

a F – He assesses performance every quarter. a their own responsibilities

Background information Warm up

3 Tell students they’re going to read an article about ANSWERS

ANSWERS 10 Ask students to match the words from the report to

21 11 Ask students to look back at the report in 9 and find

SUGGESTED ANSWER d Could I ask if you know anything about it?

You might also like

1 Ask your student to tell you about the most