Participants:

Arlethys Quiroz 4-750-2484

Vanessa Muñoz 4-729-1799

Theme:

Applications of the English Language on the Financial and Commercial Aspects.

Teacher:

Ibeth Smith Gonzalez

Subject:

English
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Index

Contenido
Index ....................................................................................................................... 2

INTRODUCTION .................................................................................................... 3

CONCEPT OF FINANCE ........................................................................................ 4

CONCEPT OF COMMERCE ................................................................................. 5

CHARACTERISTICS OF FINANCE ........................................................................ 6

CHARACTERISTICS OF COMMERCE ................................................................. 8

ASPECTS OF BANKING ...................................................................................... 13

ASPECTS OF ACCOUNTING .............................................................................. 16

GENERAL CONSIDERATIONS OF THE BUSINESS ADMINISTRATION .......... 18

ILUSTRATIONS .................................................................................................... 21

CONCLUSION ...................................................................................................... 23
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INTRODUCTION

Business English is English used for commercial purposes. It is a communicative

medium in business organizations to carry out several functions. It is a shared
medium in a globalized business scenario helping non-native speakers of the
language to communicate with each other. Business English is a communicative
competence that needs to be understood in the context of the workplace. Focuses
on the English language skills necessary to communicate in an increasingly global
business environment. The range of different subject areas included under the
umbrella term Business English is wide. The Oxford English includes the following
areas : accounting, commerce, e-commerce, economics, finance, HR, insurance, IT,
law, manufacturing, marketing, production, property, the stock exchange,
(international) trade, transport. What is generally associated with a Business English
are the skills that most people need to be able to do their jobs well: writing e-mails
and reports, making presentations, doing negotiations, using the telephone,
attending and participating actively in meetings or telephone conferences, receiving
visitors.
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CONCEPT OF FINANCE

Business finance. The world of business finance involves more than just knowing
how to read a balance sheet or how to determine if your business is turning a profit.
By gaining an understanding of some broader concepts, you can manage your
operation more efficiently and also make wiser decisions throughout the course of
your business venture.

Finance is defined as the management of money and includes activities such as

investing, borrowing, lending, budgeting, saving, and forecasting. There are three
main types of finance: personal, corporate and public/government.

The easiest way to define finance is by providing examples of the activities it

includes. There are many different career paths and jobs that perform a wide range
of finance activities. Below is a list of the most common examples:

• Investing personal money in stocks, bonds, or guaranteed investment

certificates (GICs)

• Borrowing money from institutional investors by issuing bonds on behalf of a

public company

• Lending money to people by providing them a mortgage to buy a house with

• Using Excel spreadsheets to build a budget and financial model! for a

corporation

• Saving personal money in a high-interest savings account

• Developing a forecast for government spending and revenue collection

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CONCEPT OF COMMERCE

Trade is described as the effective process of exchanging products or services using

some monetary aspect, as well as the logistical process of transforming raw
materials into usable products or services. Trade in the proper sense is said to occur
if the scale of this exchange is large enough to include the logistics and
transportation of these products or services across various limits. For trade to occur
effectively, trade and industry must be conducted harmoniously together. What
exactly are trade and commerce, you may ask? All right:

Trade within the context of trade is the process of buying and selling goods and
services through the use of some form of exchange. In our case, trading would be
the process that Mega Bakers uses to sell their bread and other items from their
bakery. In this regard, let's define another form of trade: barter trade or barter
transactions. These are transactions in which, instead of using money as a medium
of exchange, the buyer and seller use a cashless medium. Barter transactions must
be agreed by both parties to be successful.

Industry within the context of trade is any activity of an economic nature that involves
how companies process raw materials into usable end products and services. Using
our Mega Bakers example, industry would be the process used to transform
ingredients into bread ready for sale.
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CHARACTERISTICS OF FINANCE

Channelizing Funds: It is well established fact that financial system is a critical

element of any economy. Financial sector and financial markets perform the
essential function of channeling funds from people who have saved surplus funds by
spending less than their income to people who have a shortage of investible funds
because their plans to spend exceed their income.

Acquisition, Allocation & Utilization of Funds: Finance as a function deals with

acquisition, allocation and utilization of funds. A business must ensure that adequate
funds are available from the right sources at the right cost at the right time. It needs
to decide the mode of raising fund, whether it is to be through the issue of securities
or lending from the bank. Once funds are acquired the funds have to be allocated to
various projects and services and finally the objective of the business is to earn
profits which on a very large extent depend upon how effectively and efficiently
allocated funds are utilized. Proper utilization of funds is based on sound investment
decisions, proper control and asset management policies and efficient management
of working capital.

Maximization of Shareholder’s Wealth: The objective of any business is to maximize

and create wealth for the investors, which is measured by the price of the share of
the company. The price of the share of any company is a function of its present and
expected future earnings. Finance helps in defining policies and ways to maximize
the earnings.

Financial Management: Maximization of economic welfare of its owners is the

accepted financial objective of the firm. Hence, the objectives of finance are to
ensure adequate and regular supply of funds to the business and provide a fair rate
of return to the suppliers of capital. Finance helps by ensuring efficient utilization of
capital and available resources according to the principles of profitability, liquidity
and safety. It provides a definite system for internal investment, financing and
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internal controls. And finally attempts to minimize cost of capital by developing a

sound and economical combination of corporate securities.
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CHARACTERISTICS OF COMMERCE

Purel y economic and business activity:

The needs and wants of the masses give rise to the production of goods and the
creation of services in an economy. The buying and selling of these goods and
services with an aim to earn a profit are what the characteristic of commerce is and
hence it is purely an economic and business activity. It creates employment and
helps in the process of growth of the industries and the economy as well.

Production and marketing:

One of the chief characteristics of commerce is to provide a connecting cord from

the one end of the needs to raw material to production to finished goods and services
to marketing to selling and buyers at the other end. Commerce puts all the beads
together in a thread. It ensures the production of all the required products and
services and then at the same time maintains the availability of market and buyers
for each and every product and service.

Continuity:

Business cannot fulfill all the needs and requirement in one single transaction. The
goods and services are required to be delivered continuously for the needs of the
people as well as for the growth of the business. So, we can say that continuity is a
special characteristic of commerce that cannot be missed. Production,
transportation, and delivery of the goods and services should be continuous so as to
maintain a balance between demand and supply.

Not only this any activity must invest its resources in research and development to
grow further and move a step ahead. Research and progressive approach is again
a continuous process.
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Aims at profit:

Any economic and business process aims at a profit and so is the characteristic of
commerce as well. From the purchase of raw material to the production, distribution,
marketing, transportation and finally selling the finished goods and services all the
activities aim to earn a profit. It enhances the growth of an economy and raises the
standard of living of people. The amount of profit motivates the people to serve better
and grow together in an economy as a whole.

Challenging and uncertain:

Every business and for that matter, every rewarding task accompanies challenges
and uncertain conditions. In business also we face many challenges and such
uncertain conditions which we have to overcome and make ourselves prepared for.
Challenges and uncertainties are the characteristic features of commerce. There are
two kinds of uncertain situations i.e., predictable for which we can arrange
precautionary measures and some unpredictable situations which we have to
welcome and overcome. These situations help in exploring possibilities and new
dimensions of our business.

Creative and ever evolving:

Business is an art and every art is creative in its sphere. As a domain of business
creativity and evolutions are the characteristics of commerce. It is the job of a
businessman to seek new, innovative and creative methods of production,
distribution, sales, and marketing of its products. Development in the current goods
and services, as well as innovative ideas for new products and services together,
forms this creative process of commerce. This creativity is ever evolving and does
not pause or terminate at any step.

Customer centered:
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From the older profit-oriented approach commerce has shifted to the modern
customer-oriented approach. Profit making is still a part of commerce but modern
business is customer centered and aims at the complete satisfaction of the
customers. It provides the best products and services at a reasonable cost to its
customers.

Socialisation:

Business and society both are connected and forms a team, without the existence
of one, the other cannot exist. Business needs people from society to work as
employees, investors to invest money, and customers to buy the products, whereas
a society also needs the goods and services produced in a business. We can
conclude that socialization is one of the chief characteristics of commerce.

Role of government:

Business is run for the welfare of society and to ensure the same business has to
follow certain guidelines and rules and regulations formed by the government.
Governance control is also the characteristic of commerce.

Optimum utilisation and serving of resources:

The progress of any business highly depends on the optimum utilization of all the
available resources and making maximum output with the minimum input. Saving of
resources also ensures growth and best utilization of resources.

All the characteristics of commerce together compile and outshine what commerce
is in its real sense. Commerce is an important beam of any economy or business. It
is the strong foundation of national development and creation of wealth for the nation
and its people.
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IMPORTANCE OF ENGLISH IN FINANCE AND COMMERCE

English has fast become the most widely used language in the world of trade and
commerce over the past decade or two. As a result, having an excellent knowledge
of English for business has become vital for success in any employee’s career. No
more so than in that of international students seeking better career prospects in an
English speaking country.

The spread of the English language can be traced back to the days of the colonial
expansion and has fast become the default language in all official forms of
communication in most countries around the world. In today’s business oriented
world, English is widely used as the major medium of communication for both small
business concerns and large corporate entities alike. As the Lingua Franca in almost
all of the developing nations all over the world, English is the preferred language in
the business community as many business partners nowadays do not speak the
same native language.

Many reputed organisations around the world rely on English as a means of

communication in everything from emails to corporate documentation to even
popular and well-read business resources both in print and over electronic media.
English is being used as the official language in over 70 countries. Fluency in
English, both written and spoken plays a critical role in many aspects of corporate
life from securing employment to communicating with clientele and achieving
cohesive business partnerships all over the world.

English has now become a global language for business all over the world to such
an extent that it is the standard official language in certain industries such as the
shipping and airline industries. It has resulted in the knowledge of English being a
near-mandatory requirement for critical jobs such as airline pilots and naval officers,
etc. Apart from having an impressive command of spoken English today’s
competitive corporate culture demands an equally impressive command of written
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English as well. It is mainly because almost all forms of business communication

such as emails, presentations, sales and marketing and even corporate legal
documentation are now carried out in English.
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ASPECTS OF BANKING

The banks and other industry partners are investing heavily on innovation at all
levels, and lot of work seems to be happening at the back stage, here are some of
the key areas that are coming to the fore now:

1. Digital Banks

Banks and Service Providers such as Visa, and technology set-ups alike are working
towards digitizing the banking experience to the next levels. Banks are looking at
creating automation and digital experience right from customer on-boarding to
collections management. Enabling secure online payment, educating customers
about it, and providing enough motivation to customers to opt for it (instead of cheque
and cash) are the endeavors that leading banks are taking up.

Ever since the arrival of ATMs, things have changed a lot in the last two decades,
the endeavour to minimize the visits of a customer to the bank branch are still on.
One of the leading banks in the UAE, Emirates NBD now has a feature in its mobile
app which allows customers to click a picture of the cheque and send it via the app.
The cheque gets deposited in the customer’s account. Isn’t that really simple! Banks
are also looking at institutionalizing the age old method of doorstep delivery of cash
by way of launching Mobile ATM for corporate – a bank in Poland is already doing
that!

2. Online Payments and Authentication

Industry seems to be moving from Swipe-in or Chip Credit cards for making
payments to Contactless payment options. This technology innovation aims at
speeding up the payment at retail counters – minimizes queuing up and slowing the
retailer ops – and at the same time giving a super quick check-out to shoppers. The
same applies to the online payments too; online shoppers will need to feed in their
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details only once, and rest would be taken care of by way of authentication from the
next purchases onwards. Technology leaps by Apple (Apple Pay) and other players
– Android/ Samsung are soon catching the fancy of the customers. New age
technologies like voice recognition and voice biometrics are also creating dents in
some parts of the banking world. Wearables and beacons are seeing growing
acceptance amongst organisations and customers, their success in future would
largely be defined by how well they get accepted by the customers.

As regards online shopping, cash-on-delivery still rules [In UAE, 88% payments are
cash-on-delivery, and only 9% are online – card payments (by volume)]. A huge
majority of online shoppers are still coming to terms with making online payments
and developing their faith in online sellers. Players like Twitter and Facebook are
now facilitating social banking, allowing customers to pay using these social media
sites.

Security still remains one of the prime concerns for the potential online customers.
There are players creating newer ways to ensure higher levels of security. Tech
companies, like Oberthur Technologies have come up with mechanism like Motion
Codes, which embed dynamic cryptogram into the cards, which changes the key
digits in a credit/debit card number every few minutes. This is another leap ahead of
OTP which get delivered on the mobile phones

3. Effective CRM and Loyalty

A loyal customer adds more to both the top line and the bottom line of any business,
and banks are no exception. A well crafted loyalty programme not only encourages
the customers to deal more and more often with the bank, it also adds value to their
lives, at large. As against most of the earlier prevalent loyalty programmes which
allowed customers to accumulate air miles (high perceived value – low frequency
benefits), the new ones launched by banks enable banks to get closer to their
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customers and developed more entrenched relationships (low value-higher

frequency). One of the leading banks in UAE, Abu Dhabi Commercial Banks
(ADCB) has played its role very well by allowing customers, on the one hand, to
create baskets of their purchases (Grocery, Fashion, Fuel etc.) to earn bonus points
on their cards. On the other end of the programme, they also allow the customers to
redeem their points at multiple points (once again – Utilities, Fashion etc.). Needless
to say, such programmes go a long way to create loyal customers who go on to
become ambassadors for the brand.

4. Design Thinking and Culture

Design Thinking is the new philosophy that is circling around even in the banking
industry. Bringing design to the core of any business, rather than a fringe/ad-hoc
function is being considered by many. Design is also being considered an integral
part of any innovation project, more than ever before. A lot of top notch organisations
are now setting up separate Design Studios or Design Labs, which allow and foster
creative thinking and ‘Innovation’ culture.

5. Strategic Partnership

Banks partnership, with organisations like Visa the one hand, and with technology
players (e-pay, m-pay, mobile apps etc.) on the other, are becoming more
pronounced. This augurs very well for the industry and the customers, as innovation
no longer remains the responsibility of any one of the partners, but comes out as a
joint, single minded focus of all who want to create a difference! Ideas can come
from any of such players, and if adapted and executed well could shift the paradigm
for the industry and the customer!
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ASPECTS OF ACCOUNTING

A business needs ways to keep track of its operations. Accounting fulfills this need
by enabling companies to develop financial statements that are used for comparison
with other organizations or conform to standards in the industry.

Accounting Principles and Methods

Business owners require accounting to evaluate the efficiency of their activities.

Financial reports help managers and owners make informed decisions that can
enhance the profitability of their companies. The type of accounting method that a
business uses may be determined by its size, transactions and operations.

 A small business can opt for cash basis accounting, which is generally deemed
to be simpler. Cash basis is easier because transactions are acknowledged and
recorded when cash is exchanged between entities.
 Accrual accounting, on the other hand, requires transactions to be recorded
whether or not cash was involved in a particular transaction. Larger businesses
usually use the accrual method, which is a requirement among various
government agencies and industries.
 Businesses usually use the combination of financial and management
accounting to track their activities. Management accounting monitors business
operations internally. It is often used to predict future sales and develop budgets
that help to handle expenses.
 Financial accounting is used to create financial records on the basis of financial
information pertaining to the business. Financial information is used internally
and externally to facilitate the process of making important business decisions.
 Automated systems have grown in popularity as an effective way to monitor
financial data. Accounting software has been developed to meet the need for
creating programs that can be customized to meet the needs of businesses.
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Professionalism and Expertise

Professional accounting services are offered by certified public accountants and
firms that deal with business operations. These services enable companies to create
effective accounting systems. You can hire a bookkeeping service in the area to help
you audit your current system and guide you on the way forward.

 Regardless of whether your business is small or large, you need to consult an

accountant who will ensure that you record and present financial information
appropriately. Accounting records transactions and compiles the information
gathered in reports. It uses numbers and data that are measurable to show you
how profitable your business is.
 The good news is that both small and large businesses can afford to hire an
accountant. This will not only save you time but money as well in the long run.
You can save the time that you would use trying to complete forms and making
submissions.
 With a professional accountant you will no longer have to worry about whether
the forms have been completed correctly or submitted on time. An accountant
handles these tasks efficiently, which leaves you with more time to focus on
running your business.
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GENERAL CONSIDERATIONS OF THE BUSINESS ADMINISTRATION

Management is the discipline that coordinates the resources of an organization to

achieve a goal. These resources or basic elements are:

The Human Resource: Set of Employees and collaborators who work in the
company or organization.

The Material Resource: They are the tangible assets owned by the company

The Financial Resource: They are the own or external resources that the company
needs to carry out its activities (eg: shares of partners, cash, profits)

The end or objective: It is the reason why we created the company.

The administration of a company influences both productivity and organization and

well-being in all sectors of the company. Achieving this balance through the following
processes:

Planning Process: They are responsible for anticipating the actions to achieve a
goal. It is subdivided into:

Strategic Planning: They are long-term plans, they will vary according to the
company's objective, according to its internal and external context.

It is based on carrying out the SWOT matrix: This matrix allows to identify the
problems that do not allow to meet the objectives and find the solutions, visualize
the weak points of the company and transform them into strengths and opportunities,
as well as enhance the company's strong points or organization.

Strengths: What does the market think of our company? Why do they choose us?

Good Human Resource, technology, financial resources, etc.

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Opportunities: Situations that if given will produce an advantage for the company.

Weaknesses: Why does the market choose the competition and not us? It may be
due to not having a good Human Resource, a bad image, high prices for the quality
of the service / product)

Threats: Events that can happen in the external context that will weaken our
company. Eg: Strikes, climate changes, tax laws, etc.

Tactical Planning:

The ways in which the conditions of the environment, of competition, of our internal
production options will be confronted, among many other elements, are part of the
Tactical Plan. All tactics must be aligned with the strategy.

Operational Planning:

When you already know what strategy they are going to use, it is important to define
"how and when" they are going to apply it.

Management Process: They are all the actions, transactions and decisions that we
are going to have to take to reach the objective of the company.

It has 3 important points on which it is based:

 Company structure

 Management: It is who is in charge of the management process.

 Negotiation: Refers to the negotiation that occurs within the company, and
between the company and abroad.

Control Process: It is the final process that serves to avoid deviations and to reach
the final objective of the company.
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In this stage, the results obtained from the planning process and the management
process are compared with reality, in order to see if the objective was met.

The administration also seeks to achieve a pleasant and organized work

environment, where well-being is collective and not individual, that is, not only for the
company but also for its human capital.

Thus being able to achieve the goals and the highest productivity in all sectors.

The administrative sector is in charge of dividing human capital into different sectors
or areas in accordance with the Company's "Organizational Structure", which is
essential because it is what defines many characteristics of how it will be organized.
The main function is to establish hierarchies within the company. It is usually
represented in organizational charts where the relationships between the different
sectors are also indicated.
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ILUSTRATIONS
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CONCLUSION

All businesses and investment projects need capital to operate. However, financial
capital the money tied up in the business, is not free. A project’s cost of capital is the
minimum expected rate of return the project needs to offer investors to attract money.
Simply put, the cost of capital is the expected rate of return the market requires to
commit capital to an investment. Thus, the cost of financial capital to a firm is the
return the firm’s investors (debt and equity holders) receive from lending their
savings to be used by the firm’s portfolio of investment projects.

The cost of capital allows us to estimate the present value of the expected future
cash flows associated with an investment opportunity. Setting the future cash flows
of different projects on an equivalent value basis helps the investor make informed
decisions when buying and selling assets and comparing alternative investment
prospects. In this sense, the cost of capital is a criterion for choosing among potential
uses of funds. Because investors expect to be rewarded appropriately for lending
their savings, the returns paid by the borrowers and obtained by the lenders is
correlated to the risk of the cash flows of the investment projects.