Table Of Content

SINGIDUNUM UNIVERSITY Silva Mitrović FIRST YEAR ENGLISH Sixth Edition Belgrade, 2009. FIRST YEAR ENGLISH Sixth Edition Autor: Silva Mitrović Recenzenti: Prof. dr Dejan Popović Prof. dr Sima Avramović Prof. dr Slobodan Barać Izdavač: UNIVERZITET SINGIDUNUM Beograd, Danijelova 29 Za izdavača: Prof. dr Milovan Stanišić Tehnička obrada: Novak Njeguš Dizajn korica: Aleksandar Mihajlović Godina izdanja: 2009. Tiraž: 500 primeraka Štampa: Mladost Grup Loznica ISBN 978-86-7912-219-3 PREFACE Welcome to the second edition of the First Year English, the fi rst book of a four-year course in English language for the students who are learning English business language at the Singidunum University, Belgrade. Th e fi rst edition of First Year English was published in 2002. I felt it was time to revise it for two reasons. Firstly, information technology, rapidly changing business environment, workforce composition, and the like, has brought a number of new words and expressions into everyday use. Secondly, I have collected feedback from the previous users and incorporated many of their helpful suggestions into this revised edition. What is the same in this second edition? Th is revised book retains the features as follows: • Each unit of this book is opened with a list of learning outcomes that describes what the student should be able to understand aft er reading this unit. • Each unit of this book concludes with a concise summary organised around the opening learning outcomes. • Every text in this book ends with a set of unit and multi-choice questions. • Each unit of this book contains vocabulary and grammar outcomes not only to increase reading and comprehension skills of the students, but also to leave them with the opportunity to increase their powers of expressing their own opinions and presenting their own arguments. • Each unit in this book ends with a set of review and discussion questions designed to foster higher-order comprehension, thinking, and speaking skills, and, in turn, can help the students to be more eff ective managers. What is diff erent in this second edition? In this new edition each unit has been revisied to ensure that students are provided with a larger, more technical vocabulary. Th is has been done by cutting and reshaping or adding or expanding several area topics. Also, some new sections have been created to contextualise vocabulary and provide more grammar iii information about the presented vocabulary. In other words, it is intended to help students not only to learn the meanings of words, but also how they are used. On the other hand, there is strong emphasis on the disciplines for correct speaking and writing, including systematic training in grammar and spelling. To this end, some grammar sections have been reshaped or expanded, and some e plentiful exercises will help to consolidate what has been learnt and ensure periodical revision. And in order to do this they make use of a deliberate repetition: when the knowledge of a certain grammatical structure is en feature in a later exercise. How is the book organised? is revised book follows the same pattern which was established in the fi rst edition. It is divided into two terms and within each term there are four units providing the students with a wide variety of texts intended to guide them through the use of English language in economics, business organisations and entrepreneurship as a special form of labour, accounting, information science and legal settings. ere are also four Appendices ese include summaries of verb forms and irregular verbs. Also, there is a Glindex, glossary/subject index. Finally, at the back of the book there is a Glossary of technical terms, as well as meanings of the words or phrases in a text that are diffi cult to understand. I hope you will enjoy reading and studying this book as much as I did preparing it for you. Silva Mitrović June 2008 iv FIRST YEAR ENGLISH BRIEF CONTENTS PREFACE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .iii CONTENTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .vi FIRST TERM UNIT 1 WHAT IS ECONOMICS ABOUT? . . . . . . . . . . . . . . . . . . . . . . . . 1 UNIT 2 RESOURCE LIMITATIONS AND ALLOCATION . . . . . . . . . . 19 UNIT 3 MICROECONOMICS AND MACROECONOMICS . . . . . . . . 39 UNIT 4 BUSINESS ORGANISATIONS AND LEGAL FORMS OF BUSINESS ORGANISATIONS . . . . . . . . . . . . . . . . . . . . . . . . . . 55 SECOND TERM UNIT 5 ENTREPRENEURSHIP AND INTRAPRENEURSHIP . . . . . . 71 UNIT 6 ON ACCOUNTING IN GENERAL . . . . . . . . . . . . . . . . . . . . . . . 87 UNIT 7 WHAT IS MEANT BY LAW? . . . . . . . . . . . . . . . . . . . . . . . . . . . 105 UNIT 8 COMMON LAW vs. CIVIL LAW . . . . . . . . . . . . . . . . . . . . . . . . 121 Appendix 1 Present and past tenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 139 Appendix 2 Th e future . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 147 Appendix 3 Modal verbs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 151 Appendix 4 Irregular verbs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 159 GLINDEX . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 167 GLOSSARY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 175 BIBLIOGRAPHY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 191 BRIEF CONTENTS v CONTENTS PREFACE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . iii FIRST TERM UNIT 1 WHAT IS ECONOMICS ABOUT? LEARNING OUTCOMES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 ECONOMY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 ECONOMICS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Production Distribution Consumption THE BIRTH OF ECONOMICS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Competition Free markets OTHER DEFINITIONS OF ECONOMICS . . . . . . . . . . . . . . . . . . . . . 3 Scarcity CURRENT ECONOMIC PROBLEMS . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Unit Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Unit Questions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Multi-choice questions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Vocabulary and Grammar Outcomes . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Defi ning and Rephrasing the Term Articles Nouns: Kinds, Gender and Plurals Word Formation: Nouns and Verbs Word Study: Related words Prepositions and Prepositional Phrases Th e Present Tenses Review and Discussion Questions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 What are the three waves that modern civilisation has evolved over? How have these waves infl uenced society and aff ected business environment? What about the changes in the workforce composition? Old Economy vs. New Economy. vi FIRST YEAR ENGLISH UNIT 2 RESOURCE LIMITATIONS AND ALLOCATION LEARNING OUTCOMES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 WHAT ARE RESOURCES? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 Natural resources Human resources Opportunity Cost RESOURCE ALLOCATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 Scarcity of resources WHAT ARE GOODS? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 What are services? Free goods Economic goods Opportunity cost WHAT ARE GOODS-PRODUCING INDUSTRIES AND SERVICE INDUSTRIES? . . . . . . . . . . . . . . . . . . 21 Unit Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 Unit Questions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 Multi-choice questions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 Vocabulary and grammar outcomes . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 Defi ning and Rephrasing the Term Word Formation: Adjectives Adjectives: Comparison and Constructions with Comparison Word Study: Easily Confused Verbs Word Study: Related words Th e Present Tenses Human resources: high-skilled jobs vs. low-skilled jobs Review and discussion questions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34 What are the implications of the vast spread of IT on economies throughout the world? Th e shift s in the types of jobs in the workforce during the past years. How is IT changing the manager’s job? UNIT 3 MICROECONOMICS AND MACROECONOMICS LEARNING OUTCOMES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37 THE MAJOR DIVISIONS OF ECONOMICS . . . . . . . . . . . . . . . . . . . 38 Microeconomics Macroeconomics Development economics CONTENTS vii MICROECONOMICS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38 MACROECONOMICS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38 Fiscal policy Monetary policy A SHARED SET OF GOALS: FULL EMPLOYMENT, PRICE STABILITY AND ECONOMIC GROWTH . . . . . . . . . . . . . . 39 Infl ation Defl ation Gross national product (GNP) Gross domestic product (GDP) Real income THE OVERALL GOAL OF MACROECONOMICS POLICY . . . . . 40 Unit Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40 Unit Questions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41 Multi-choice questions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41 Vocabulary and grammar outcomes . . . . . . . . . . . . . . . . . . . . . . . . . . . 43 Word Formation: Adjectives Articles Supply and Demand Prepositions Economic development Th e Future Tense Economic growth Review and discussion questions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54 Why organisations lay off workers? How do organisations create fl exible and rapid response systems? How does one make ethical choices and how diffi cult it is? UNIT 4 BUSINESS ORGANISATIONS AND LEGAL FORMS OF BUSINESS ORGANISATIONS LEARNING OUTCOMES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55 WHAT IS MEANT BY THE TERM BUSINESS ORGANISATION? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56 WHAT THREE COMMON CHARACTERISTICS DO ALL ORGANISATIONS SHARE? . . . . . . . . . . . . . . . . . . . . . . . . . 56 Plurality of membership Possession of distinct assets A system of management viii FIRST YEAR ENGLISH WHAT ARE THREE COMMON LEGAL FORMS OF BUSINESS ORGANISATIONS? . . . . . . . . . . . . . . . . . . . . . . . . . . . 57 Individual proprietorship Partnership Limited liability company or corporation LIMITED LIABILITY vs. UNLIMITED LIABILITY . . . . . . . . . . . . . 58 PRIVATE AND PUBLIC COMPANIES UNDER COMMON LAW AND CIVIL LAW SYSTEMS . . . . . . . . . 58 Private limited company (Ltd.) Public limited company (PLC) Unit Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58 Unit Questions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59 Multi-choice questions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60 Vocabulary and grammar outcomes . . . . . . . . . . . . . . . . . . . . . . . . . . . 62 Word Formation: Nouns Prepositions and Verbs: Prepositional or Phrase Verbs Th e Past and Perfect Tenses Building a successful company Review and discussion questions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69 Employee monitoring and invasion of privacy. Should organisations be permitted to monitor employee behaviour off the job? Are managers faced with ethical dilemmas when they have to lay off employees? SECOND TERM UNIT 5 ENTREPRENEURSHIP AND INTRAPRENEURSHIP LEARNING OUTCOMES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71 WHAT IS MEANT BY THE TERM ENTREPRENEURSHIP? . . . . 72 Entrepreneurship Entrepreneur WHY ARE MORE AND MORE PEOPLE CHOOSING ENTREPRENEURSHIP? . . . . . . . . . . . . . . . . . . . . . . . . 72 Downsizing FRANCHISING . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72 Franchise Franchiser Franchisee ENTREPRENEURIAL SPIRIT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73 CONTENTS ix