Europe's Enron F166 73 Adjectives and adverbs PAGE 72 Career skills: Referring to visuals PAGE TS Ez som ‘wry economist.com Dilemma: Counting the costs roe 74 The bottom line Keynotes ee ee / ee seca eT ce corporate governance. Independent auditors such as Sao US have been checking balance sheets, which show the overall performance of companies and income. ‘statements (Ame) or profit and loss accounts. (Bf) outgoings fora given period.sveviey The Profit and Loss Account (P&L) ‘Study the incomplete P&L below. Complete the document with the following headings. Use a dictionary to help you. Research and development costs Cost of materials Gross profit Interest receivable Tumover Dividend —- Consolidated Profit and Loss (erhe paw ooo ST Woney ip 1 os east 08 ‘Other earnings Cain on fod ets ae eparatiers 250 2a D ‘on eee 178 ie Money out ________ Costs of making goods oa enacting eens ooo 8 Money in minus si tory ager ‘Sates ans pron Other money out Other costs and expenses Ire ents ous Lose on treon cosas Marting and detibuton ccs Gross profit minus other money out ‘Trading/Operating Profit Money left when Profit for shareholders (* shareholders have been paid ——____. Retained profit 1H Now listen to a presentation of the actual results and complete the missing figures for gaps a-h. osmUnit 8heading Corporate governance Read the text about corporate governance. What accounting ned? 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When ge are et Fling ms seh as now Ni a teat Pusgeses shuld sip erewaly toy did ak tbem, his anger Bunimupt mart Sod ssi Fe are it and pade became qu apparent se Flersng nd oy Ab ape hake US priblem that cant our ime he cfised anv. teste hse bare pment ere see cal tis ahold fy The AG evetaement is due pie the wer ae cence] may 0 Ads Us Foodece unt What of Atolls audi? Alou she ‘counting pretiens ‘shi spies fod schools xp goblens were uncon sald Hae “Surat Piacunry 2003 Ahold ts and fotawanis alu tere se one so much exc. ss Tyan Tuner ancaincd toe meee at ie ait ako tues ower He Deo mabsiiny informer did account a the Sm Unit &By Read the text again and answer the following questions. ‘What are the similarities between Enron and Ahole? ‘What should European companies do? Why did the shareholders admire Cees van der Hoeven? Which of Ahold’ acquisitions is mentioned in the tex? Whar did Europeans believe about corporate wrong-doing in the past? How did Foodservice overstate its sales? Do you think CEOs who falsify accounts are criminals and should go 10 jail or is it an acceptable Fisk to falsify accounts if i helps to Safeguard the company’s future and jobs? Choose the best word to fill each gap in the sentences below. Sales area good way for to get rid of surplus stock retailers bh sallow © dealers wholesalers ‘The company was in fat seriously sven though med to be making a profi. at loss Brindebt © intheblack broken Some companies _ thei earings to drive up share prises «overdo B overiow ec overstated oversee 4 The Financial Services Authority was set up in the UK to deal with, such as fraud and inser trading 7 ieses wb ideas © veasons purposes 5 When the CEO should have been cost cutting, he was spending huge sums on ‘hat tured out to be unprofitable. w inereases B investors -c growth d_ acquisitions {6 When you buy in bulk you can obtain or teares v discounts b sales © decreases interest Shareholders lst money when the company declared ise redundant > sokdout¢- broken down d ‘bankrupt & When they heard about our financial ifculies our asked to be paid in advance ® service eliveries © suppliers d orders, ‘They did’ lie they simply tried to the truth «conceal > prevent rus ‘dwnram Units Adjectives and adverbs Look at the following uses of adjectives. bef There was a dramatic all in profits ast yea. after statve verbs such as be, Become, sent, appear, look ee The similarities herween Ahold and Enron are striking Look at the following uses of adverbs afer verbs ‘Shares fel shanply om the news. before an adjective or adver’ his anger and pride became quickly apparent {1 Use the following expressions to describe the performance of the Enron share price 1991-2001. ‘Tuctuated mildly a sharp increase yeached a peak rose steadily dropped slightly a dramatic end sudden fal Seaton BB Jourmatists use dramatic verbs that describe the direction, speed land degree of change. What information do these verbs give? ireation speed large/small degree plunge + ey taet oy ioe ap v ‘aoe a unmet ide shyrocket jump nosediveCareer sills Listening 3 ' Sham pce (05), ome-2e08 freien Cotture at work Visual aids such as graphs, bar ch | attention to particular details. Asyou conse, ole tthe. yousoe hare. | revtrte tnt ‘sab on this pat ofthe graph ere. This por ofthe graph cert shows... Tiss shows the. sie chats and low charts are an mportant nd fective way of etructaring and communicating presentations that include 2 lor of tates The following pases ae useful fo rowing he Ustenets [BB Look at the graph showing the performance of the WorldCom share price 1992-2002 and match the changes with the time petiods Then listen and check your answers. 1 eached a record high a 2 osedived to an alltime low » 3 continued to skyrocket : 4 started a spectaclarascension 5 there was a downturn . 192.95 1995-98 98-99 199 1999.02 ‘Work in pairs. Student A tum to page 139. Student B look at the bar chart showing the American sales of the italian food giant Parmalat, which went bankrupt in 2003 with debts of €14bn, Describe the chart to your partner. Then listen fo your partner and complete the European sales 1996-2003, ' See hen, Se Formal and informal presentations Some cultures expect presentations tobe formal an echnical Others find this dll and ineffective and prefer a more entering syle of presentation, What are they liken your cour? How might these aides Sec the des, ye and we of isa adn presentations in dierent Unit em 73