English Lessons that Speak. Self-access learning and development. Lesson B3. QT

Click and listen to each sentence as many times as you like

Say each sentence as many times as you like

Practise saying each sentence until it sounds right

	How many of these words do you already know? Listen to them being pronounced and then practise saying them. Use you dictionary to find out what they mean.
		Financial aspects
		Demand
		Budget
		Overheads
		Minimal
		Profit
		Investment
		Capital
		Enterprise
		Return
		Turnover
		Gross profit
		Profit margin

The Magic Garden Company
Now listen to Mrs. Kaota giving a talk about her business. She has been asked to talk about her company at a 'Money in Business' day in her local town.

Listen to how she uses the vocabulary from the list.

Good morning. I'm going to talk to you for a few minutes about the 'Magic Garden' company I set up five years ago. I'll concentrate on outlining the financial aspects of my business, as that's what we're mainly concerned with today.
Magic Garden really started when I took out a small business loan of €2,000 in order to grow and sell organic herbs to the health food shops that had grown up around the area. The demand for herbs that are free of pesticides has shot up over the last few years, and I thought that this was a good opportunity, as the shops were having to import herbs from abroad. I had a tight budget, but this was okay, because my overheads were minimal and at first I didn't need any staff. I soon paid off the loan and was making a small profit. However, it soon became clear that the only way to increase turnover and therefore profit, was to expand. This time I decided to raise the capital for investment myself by forming a private company. Finding backers to raise the capital was quite easy, as the enterprise was low risk with good predicted returns on investment.
Since then sales have increased tenfold and last year my turnover was 2.3 million euros, with a gross profit after reinvestment of €450,000. This represents a healthy profit margin. I now employ about 30 staff, and we supply a much larger area. The continuing rise in demand is due to the fact that supermarkets now want organic herbs so that they can use them in their own-brand products.

I've plotted a simple chart showing sales and profit over the last five years.

As you can see, we made a very small loss in the first six months, due to the fact that I hadn't been able to grow enough herbs fast enough! After this first season sales rose, flattened out and then steadily increased until they dipped slightly in 1998. Sales and profits then increased rapidly, and only fluctuated a couple of times last year. Revenue has not yet peaked, as sales and profits are still increasing.

Useful Phrases: talking about graphs

Movement in graphs can be described using verbs with adverbs:

For example: Sales declined sharply.

Or nouns with adjectives:

For example: There was a sharp decline in sales.

Mrs Kaota uses mainly adverbs with verbs.
Below are some pairs of - 'verb + adverb' / 'adjective + noun'.
To rise / a rise

To increase steadily / a steady increase
To dip slightly / a slight dip
To increase rapidly / a rapid increase
To fluctuate / a fluctuation
To peak / to reach a peak

Complete the sentences below, which describe the same Magic Garden graph above, but this time using nouns and adjectives.

As you can see, we made a very small loss in the first six months, due to the fact that I hadn't been able to grow enough herbs fast enough! After this first season there was a ___(1)___ in sales, and they then flattened out. Then there was a ___(2)____ ___(3)___ in sales until a __(4)___ ___(5)___in 1998. There was then a ____(6)____ ___(7)_____in sales and profit, with only a couple of minor ______(8)________last year. Revenue has not yet ___(9)____, as sales and profits are still increasing.

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**The Inheritance**
What would you do if you inherited some money? Would you spend it or invest it? Listen to this two-part conversation between some family members who have inherited some money. Part 1
Paul:	So let's get down to business right away. What are we going to do with this money we've inherited?
Jane:	Invest it of course.
Lisa:	Yes! Invest it.
Paul:	Yes, yes, I know we have to invest it, but how?
Jane:	Buy shares.
Lisa:	Put it in a bank savings account?
Paul:	I thought we should buy government stocks.
Jane:	I have an idea! Let's split the money three ways and invest one third in each of those. One third in shares, one third in bank savings accounts and one third in government stocks.
Lisa:	Sounds good to me. I agree. How about also putting some of it into pension funds for when we retire from work?
Paul:	OK, let's split it four ways then. One quarter to go into pension funds for each of us. But do we want to invest the other three-quarters for income or for capital gain?
Jane:	Some of each. Invest some money to generate an income and some for capital growth.
Lisa:	Okay, but where shall we invest it? There are government stocks, Bank Savings accounts, Building Societies, Unit Trusts, Investment Bonds, Income Bonds, Personal Equity Plans, Internet banks....
Paul:	Yes, it's complicated - we could ask a financial advisor.
Jane:	Yeah, but we'd have to pay their fees.
Paul:	True. Let's do a bit of research ourselves and then meet next week to discuss what to do.
Lisa:	Agreed.
Jane:	Agreed. I'll make us some coffee.

**Investments**
Part 2 The Next week.
Lisa:	Hi! Come in both of you. Here, let me take your coat.
Paul:	Thanks for letting us meet at your house this time.
Lisa:	No problem. I've got the kettle on for tea. Shall we get on with the meeting?
Paul:	OK, I've been looking into investments for capital growth. The first thing we have to decide is whether we want a short-term investment or a long-term investment.
Jane:	What do you mean?
Paul:	Do we want to tie our money up for just one or two years or can we stretch to five or ten years? The longer the term of the investment the higher the rate of interest we get.
Lisa:	Let's do some of each. Put one-third away for two years, one-third for five years and one-third for ten years.
Jane:	That sounds like a good idea.
Paul:	Ah, but there's another factor to consider. The larger the amount you invest the higher the interest you get. If we split our money into three smaller amounts we will end up getting less interest.
Jane:	Well you're the one who's got all the figures Paul. What do you recommend?
Paul:	I suggest we put it all into a five or ten year savings plan. Ten years, if we think we can do without the money for that long.
Jane:	OK. I've been looking into various investments we can make to generate income. There are two main aspects we need to consider. Do we want a steady income at the expense of losing capital if interest rates go down, or do we want to maintain the capital intact and get a fluctuating income as interest rates go up and down?
Lisa:	What about buying shares?
Paul:	Shares are the most risky kind of investment.
Jane:	But we decided to put a quarter of our money into buying shares!
Lisa:	That's right, and I think we should go for blue chip shares.
Jane:	Blue chip shares?
Paul:	Lisa means that we should buy shares in the biggest companies listed on the stock exchange. Their shares are known as 'blue chip shares' because they are a fairly safe investment. Their shares don't go up and down in value as much as the shares of smaller companies. Blue chip shares are also much safer because the bigger companies are less likely to go bankrupt.
Lisa:	But the dividends are often smaller.
Paul:	Not always.
Jane:	Blue chip sounds fine to me. Are we all agreed then? One quarter of our money goes into a ten-year investment plan, one quarter goes into a bank and one quarter goes on blue chip shares.
Paul:	Agreed.
Jane:	Agreed.
Lisa:	Now what about our pension plans . . . . . .

Pronunciation: personal finance

	Listen again to these words from the conversation, which are all connected with investing your money. Practise them until they sound right.
		A bank savings account
		Government stocks
		Stock exchange
		Shares
		A Pension fund
		Internet banking
		A Personal equity plan
		A financial advisor
		Income bonds
		Investment bonds

Grammar Revision: purpose - in order to/ ( ) / so that/because/as

	Look at these sentences:-
	I took out a small loan of €2,000 in order to start growing organic herbs.
	I took out a small loan of €2,000 to start growing organic herbs.
	You save money so that it earns interest.
	Simon was able to buy shares because he got a lump sum from his uncle.
	I'll outline financial aspects, as that's what we're concentrating on today.

We use the words in bold to say why we do something.

   After 'in order to' we use the infinitive of the next verb.

If we use the infinitive we can also leave out 'in order to'.

After 'so that' and 'because' we use a subject and then the verb.

'Because' can be replaced by 'as'.

In the next conversation, listen to how - in order to / (   ) / so that / because / as - are used.

    A University Reunion Dinner
    Two old school friends are at a university reunion. They haven't seen each other for 20 years! They have had dinner and are now telling each other about their financial situation.

Simon: So, I hear you have a big house out in the country. That must be costing you a bit.

Rashid: Yes, well, the mortgage does take quite a slice out of my monthly income, but I did get a good deal with a very low interest rate, so it could be a lot worse.

Simon: Yes, I know what you mean. I was lucky because my parents bought my first house so that I wouldn't have to pay a big mortgage, and I also had a lump sum from an uncle. I bought some shares and bonds to earn interest and now I get a healthy regular income from them. Not enough to let me stop working though!

Rashid: It's not the mortgage I really mind, as I know how much it's going to be each month. What I hate are all the credit card bills - I'm really in the red at the moment.

Simon: I don't let myself have a credit card at all, just a debit card that comes straight out of my bank account. In order to spend money I have to have some in my bank account! If I don't have the money there, I can't spend it!

Rashid: Good idea. Interest rates are really rising fast now, along with inflation, so I end up paying much more than if I'd paid out the cash in the first place!

Simon: I was pleased with myself last year. I changed banks to an Internet bank. They have very low interest rates and bank charges because they have much lower overheads. If you give me your email address I'll send you the details.

Rashid: Thanks. Oh, there's my wife over there. Let's go over and I'll introduce you properly - you only said hello before. She's been dying you meet you and get the real details of what we got up to at university!

**A University Reunion Dinner**
	Two old school friends are at a university reunion. They haven't seen each other for 20 years! They have had dinner and are now telling each other about their financial situation.
Simon:	So, I hear you have a big house out in the country. That must be costing you a bit.
Rashid:	Yes, well, the mortgage does take quite a slice out of my monthly income, but I did get a good deal with a very low interest rate, so it could be a lot worse.
Simon:	Yes, I know what you mean. I was lucky because my parents bought my first house so that I wouldn't have to pay a big mortgage, and I also had a lump sum from an uncle. I bought some shares and bonds to earn interest and now I get a healthy regular income from them. Not enough to let me stop working though!
Rashid:	It's not the mortgage I really mind, as I know how much it's going to be each month. What I hate are all the credit card bills - I'm really in the red at the moment.
Simon:	I don't let myself have a credit card at all, just a debit card that comes straight out of my bank account. In order to spend money I have to have some in my bank account! If I don't have the money there, I can't spend it!
Rashid:	Good idea. Interest rates are really rising fast now, along with inflation, so I end up paying much more than if I'd paid out the cash in the first place!
Simon:	I was pleased with myself last year. I changed banks to an Internet bank. They have very low interest rates and bank charges because they have much lower overheads. If you give me your email address I'll send you the details.
Rashid:	Thanks. Oh, there's my wife over there. Let's go over and I'll introduce you properly - you only said hello before. She's been dying you meet you and get the real details of what we got up to at university!

**Pronunciation: meanings of some useful words and phrases**
Listen to the words and phrases below from this lesson. Match the expression on the left with the meaning on the right. Then practise saying the phrases until they sound right.
	I'm on a tight budget	To pay for something in cash
	I've paid off my loan!	A large amount of money received at one time
	I'm in the red.	To be in debt
	Let's get down to business.	Something that is expensive
	Let's split the money.	To begin to discuss business matters
	That must cost you a bit!	To get something for a good (cheap) price
	I got a very good deal.	To finish paying back a loan
	My uncle gave me a lump sum.	To divide up the money
	I should have paid out cash.	To have only just enough money for something.

Click 'Answers ' to see if you were right!

Answers

**Answers to using nouns and adjectives**
1.	rise	After this first season there was a rise in sales, and they then flattened out.
2. 3. 4. 5.	steady increase slight dip	Then there was a steady increase in sales until a slight dip in 1998.
6. 7. 8.	rapid increase fluctuations	There was then a rapid increase in sales and profit, with only a couple of minor fluctuations last year.
9.	reached a peak	Revenue has not yet reached a peak, as sales and profits are still increasing.
Click BACK to get back to where you were in the lesson.

**Answers to Matching Expressions**
Practise saying the words and phrases in bold until they sound right.
	I'm on a tight budget	tight budget = to have only just enough money for something
	I've paid off my loan!	paid off = to finish paying back a loan
	I'm in the red.	in the red = to be in debt
	Let's get down to business.	get down to business = to begin to discuss business matters
	Let's split the money.	split = to divide up the money
	That must cost you a bit!	cost you a bit = something that is expensive
	I got a very good deal.	a very good deal = to get something for a good (cheap) price
	My uncle gave me a lump sum.	a lump sum = a large amount of money received at one time
	I should have paid out cash.	paid out cash = to pay for something in cash

Click BACK to get back to where you were in the lesson.

Ta i l p i e c e
Don't count your chickens before they hatch.

Course B
End of Lesson B3

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Link to Introduction
Links to other Lessons in Course B : 1 2 * 4 5 6 7 8 9 10

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	After 'in order to' we use the infinitive of the next verb.
	If we use the infinitive we can also leave out 'in order to'.
	After 'so that' and 'because' we use a subject and then the verb.
	'Because' can be replaced by 'as'.

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