Pitigoi Anca

Grupa 310

Academia de Studii Economice Bucuresti
Facultatea de Comert
Exercises

1.1 Answer the following questions
1. You decided to set up your own business. What are the main requirements for such a
venture?
I think that the main requirements are to set up a commercial society are: to establish the
sector in which you will be operating, what are you offering, knowing the costings,
pricings,etc, and to have a capital.
2. What type of business organization are you going to set up? What are your options?
Im going to set up a Sole Proprietorship, in professional photography retouching.
3. As a small business owner do you need to hire professional accounting services or can you
manage by yourself?
I think I need to hire professional accounting services, because its safer and I wont have to
be in charge with this part of the business.
4. Is it enough to have professional accountant or do you have to know something about
financial operations yourself?
My opinion is that, even if you hire a professional accountant, you have to know about
financial operations, so you cant be fooled.
1.2. Fill in the blanks in the following excerpt. Do not refer to the text until you finish your
task.
The money needed to start a business is called capital. If you do not have enough money you
may borrow some from the bank in the form of a credit or an asset. Before the bank will give a loan
you must put up some security (such as your own house) in case you cannot pay back the money.
This is also called charge. Capital which is borrowed is called loan. Capital obtained from the
investors/investments is called venture or equity capital. The difference between the loan capital
and the equity capital determines whether a company has a profit or a loss.

1.3. Match the following words with the definitions give below:
1. A unincorporated business organization with two or more owners who share
responsibility. -> c. partnership
2. The owners of a corporation. -> l. Stockholders
3. The responsibility for debts, even if they are more than the assets of business firm. -> n.
liabilities
4. A business association that is legally regarded as a separate person. -> e. corporation
Pitigoi Anca
Grupa 310

Academia de Studii Economice Bucuresti
Facultatea de Comert
5. Shares of ownership in a corporation. -> public limited company
6. A business owned by one person. -> d. Sole proprietorship
7. A person who only invests money in a business, sharing in the profits but not taking any
active part in the management of the firm. -> g.sleeping partner
8. A corporation that has offices and plants in more than one country. -> b. multinational
corporation
9. A group of individuals elected by the stockholders of a corporation to make major
decisions for the company. -> a.board of directors
10. A company whose members have normally no limitation of their right of transferring
their shares to other persons. -> k. unlimited liability
11. Amounts owed by the organization to others. -> h. stocks, shares
12. Accounting technique for calculating cost of inventory based on last in, first out. ->
m.LIFO
13. Costs incurred in operating the business, such as rent, utilities and salaries. -> expenses
14. Recording devices used for the first recording of all transactions. -> o. journals
15. Economic resources owned by a firm, such as land, building and machinery. -> j.assets
16. Accounting technique for calculating cost of inventory based on first in first out. ->p. FIFO

2.3. Put the verbs in the brackets into the correct form making any necessary changes:
I was sitting in my office the other day when I was being told that someone wanted to see
me. It was Ana Radu, an old friend of mine. My personal assistant invited her in and asked us what
we would want to drink. After she brought us coffee and water she left us alone. When I asked Ana
how she was, she told me a rather sad story. She told that she had to close down her business
because of financial difficulties and that she was looking for a job. She added that she was in such
situation because she hadnt been listening to those who advised her to hire a good accountant. If
she didnt find a job quickly, she would be in serious trouble. She asked me whether I could do
anything to help her finding something interesting. I assured her I would do my best and asked her
to call me in a few days.

2.4. Translate into English:
1. He was very angry and wanted to know why I interrupted him while he was working.
2. Ionut said that the new machine had just arrived and asked me where he had to place it. I
told him to let it there for that moment and I added that I would let him know what to do
with it later.
Pitigoi Anca
Grupa 310

Academia de Studii Economice Bucuresti
Facultatea de Comert
3. We were questioned who are we and how did you get into the building. I told him that we
were reporters and we wanted to find out something about the burglary which it had
occurred last night. He said that we had no wright to be there and he added that, if we did
not go away immediately, he would call the police.
4. When she told me that she did not like the seats, I answered her not to complain anymore,
because however we were lucky to have seats to such a concert.
5. I asked the receptionist if I could acquit the bill at that evening, explaining her that I had to
leave very soon next day. She told me that she would prepare the bill and asked me the time
of awakening.


3.1. Put the verbs in brackets into their correct tense making any other changes if necessary:
a. When I arrived at the railway station half hour late, I found that the train had already left.
b. I was been told that I had to wait an hour for the next one.
c. While I was waiting in the restaurant I saw a friend of mine.
d. It turned out that he, too, want to Brasov.
e. He said he went on business and would be there about a week.
f. I was glad that I had missed the train; for if I had caught it, I would not have seen my friend.


3.2. Put the following into Reported Speech:
1. The sales manager asked if there were any letter for her.
2. Our accountant said that hes broke. The financial manager asked if he would lend him
some money.
3. The security man said the he often saw light late at night, after working hours, in the office
building across the road and asked me if I thought he should report it.
4. The secretary asked if I could ring back in half an hour.
5. Your fiance said that you should apply for the job, because it would suit you.
6. One of your friend said that you would better not keep your money in the drawer and
another one asked why didnt you open a bank account.

Test four Choose the right answer:
1. The term producer refers to one who a. grows crops or manufactures goods.
2. Which one of the following statements is false? C. Commercial services cannot begin until
the manufacturing process has been completed.
3. Generally speaking a wholesaler b. is a connection between the retailer and the
manufacturer.
4. Commerce b. includes other functions in addition to trade.
5. Goods are c. articles of trade or commerce.
6. Non-manufactures consist of b. building materials, machinery, equipment.