1

HAND OUT
ENGLISH
BUSINESS

WIDYANTO
&
TUSYANAH

PENDIDIKAN EKONOMI
FAKULTAS EKONOMI
UNIVERSITAS NEGERI SEMARANG
2011
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Table of Contents

Cover

Chapter I
Business and Businessman

Chapter II
The Business Environment

Chapter 3
How to Start your Own Business?

Chapter 4
Business Plan

Chapter 5
Be an Effective Businessman

Chapter 6
How to Sell Your Product?

Chapter 7
Pay the tax for better business

Chapter 8
Corporate Social Responsibility
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Chapter I
Business and Businessman

A. Reading

There are many activities for people

in the world today, some people like to be
employer, and others not. Actually, all
activities are businesses, but now if
someone talks about business, it must be
an economy activities which has
correlation with the profit and loss.
Some peoples defines, business is
activity or venture to provide a profit. A
profit is gain after people doing something
in economic activity such as: trading,
producing, negotiating, exploring, etc.
When people doing a business, we can call him or her as a businessman or
businesswoman, there are many things that people have to do to be a businessman. The
characteristics of businessman e.g. self confidence, risk full, passionate, resource full,
courage, challenging, have a good networking, pro active.
Before doing a business peoples has to prepare himself/herself with some compliment,
the compliment are to answer this following questions:
a. What is a good business for us?
b. How much the financial should be invested?
c. Where the business will be done?
d. What kinds of the people we need?

A businessman should possess the quality of leadership. The success of business

depends upon loyalty and cooperation of employees. The cooperation of employees depends
on enthusiasm and interest about the work they are doing. Another notable quality of the
businessman is business morality, which means honest dealings. Honesty, straight
forwardness fair dealings dependability and moral character are also important qualities for
success in business. Today business has become so complex and competitive that it is full of
danger to start a business without knowing its problems. It is through training and education
that the businessman can properly understand the problems of his business and find
solutions for them.
Modern business is subject to fast changes. It requires a businessman to appreciate time.
He must always think in terms of time. Businessman must have consistent mind so as to be
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able to exercise firmness in his dealing with others. A businessman has to deal with many
persons everyday and to take important decisions. It is necessary that the businessman must
use proper skill and tact to make best use of the business opportunities.

How to become a successful businessman?

Sunder Ramachandran gives 7 lessons to become a successful businessman, here are the
7 lessons:

Lesson one -- Believe in your idea. Never underestimate what you can do. You may
surprise yourself.

Lesson two -- Build your team with people possessing complementary skills, not 'yes men'
who are always showering praise. You need employees, partners and
mentors you trust, who will give you honest feedback and take your
company to the next level

Lesson three -- It's tempting to dream of a corner office, a pool table and expensive chairs,
but give it some time. Start small and start efficient. Being better is more
important than being bigger

Lesson four -- Marketing a start-up business is a 24/7 activity and you need to pay
attention to the message you're sending out to existing and prospective
clients. Your message has to be tailored to meet the customer's expectations.

Lesson five -- Be a coach, rather than the star player. Appreciate and acknowledge the
positive behaviors of team members so that the behaviors turn into
consistent practices.

Lesson six -- The worst mistake is the one that gets repeated. Create a culture of learning
and experimentation right at the start of the business. This will become a
powerful value with the growth of the business

Lesson seven -- If you are doing something and the day flies by, if you are surrounded with
people you like to work with, then you have most of the ingredients for
entrepreneurial success.

B. Answer the Question

1. What is business?
2. What are the characteristics of a good businessman?
3. Explain briefly about leadership!
4. Mention at least 5 activities of economics!
5. What do you prefer, being a businessman or public civil servant?
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C. Structure

Present simple and present continuous

Present simple
# Use
We use the present simple to talk about the facts or permanent activities:
Example: The company has 1,000 employees worldwide.
The staff arent very friendly.
What does this company do?
# Form
Positive and negative
I/you/we/you/they Work dont work
he/she/it Works doesnt work

Question
Do I/you/we/you/they work?
Does he/she/it work?
Add s or es in 3rd person singular. E.g. she works, he watches
We add es when the verb ends in in sh, -ch, -ss and x,
Example: miss misses close closes
finish finishes watch watches
manage manages
Verbs that end in consonant + y in 3rd person singular change y to i and ass es
Example: carry carries
worry worries
Irregular present simple
These verbs are irregular: have: he/she/it has
do: he/she/it does
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Present continuous
# Use
We use the present continuous to talk about:
Things which are happening at the time of speaking.
Example: Im trying to call Geoff Peters.
He isnt working today.
What are you doing?
Things which are happening around the time of speaking.
Example: The country is developing a new drug against asthma.
The company isnt recruiting at the moment.
What are they planning to do?
Some verbs are not usually used in the continuous form. These are stative verbs; they
describe states or senses.
Example: hear, see, smell, taste, like, dislike, hate, love, want, wish, hope, believe, feel
(=think), forget, know, mean, remember, think (=have an opinion), understand,
contain, have (=own), owe, own, possess
# Form

be + ______ ing

Positive and negative

I am/m am not/m not flying
you/we/you/they Are are not/arent flying
he/she/it Is is not/isnt flying

Question
Am I flying?
Are you/we/you/they flying?
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Is he/she/it flying?

Verbs that end in a consonant followed by e

Example: take taking manage managing
But
Verbs that end in vowel + e
Example: agree agreeing see seeing
Vowel + consonant double consonant
When the last syllable is stressed, we usually double the final consonant.
Example: fit fitting
begin beginning
control controlling

# Exercise (in groups)

Surf the net and find a reading at least 2 pages about a multinational company. Underline the
sentences in simple present tense and present continuous tense!

D. Business Terminology
Leadership : is organizing a group of people to achieve a common goal.
Business Morality : a positive view of business enterprise and achievement and should
honor the act of creating value.
Business Opportunity : involves the sale or lease of any product, service, equipment, etc.
that will enable the purchaser-licensee to begin a business. The
licensor or seller of a business opportunity usually declares that it
will secure or assist the buyer in finding a suitable location or
provide the product to the purchaser-licensee. This is different
from the sale of an independent business, in which there is no
continued relationship required by the seller.
Profit : the total opportunity costs (both explicit and implicit) of a venture
to an entrepreneur or investor
E. Topic for Discuss
How to be a good businessman!

F. References
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- http://www.google.co.id/search?q=ppt+simple+present+tense&ie=utf-8&oe=utf-
8&aq=t&rls=org.mozilla:en-US:official&client=firefox-a
- Robbin, Sue. 2000. First Insight into Business. Edinburgh: Longman
- Advanced Oxford Dictionary and Encarta Dictionary
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Chapter II
The Business Environment

A. Reading

The process of starting up and

developing a business is not just an
adventure, but also a real challenge. In
order to help entrepreneurs with this, it
is essential to create a favorable
business environment. However,
creating a favorable business
environment does not mean simply
improving the growth potential of
businesses.

What Is Business Environment?

The term Business Environment is composed of two words Business and
Environment. In simple terms, the state in which a person remains busy is known as
Business. The word Business in its economic sense means human activities like
production, extraction or purchase or sales of goods that are performed for earning
profits.
On the other hand, the word Environment refers to the aspects of surroundings.
Therefore, Business Environment may be defined as a set of conditions Social, Legal,
Economical, Political or Institutional that are uncontrollable in nature and affects the
functioning of organization.
While, the global business environment can be defined as the environment in
different sovereign countries, with factors exogenous to the home environment of the
organization, influencing decision making on resource use and capabilities. The global
business environment can be classified into the external environment and the internal
environment.

What are the components of Business Environment?

There are two components of business environment:
1. Internal Environment
2. External Environment
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Internal Environment: includes 5 Ms i.e. man, material, money, machinery and

management, usually within the control of business. Business can make changes in
these factors according to the change in the functioning of enterprise.

External Environment: Those factors which are beyond the control of business
enterprise are included in external environment. These factors are: Government and
Legal factors, Geo-Physical Factors, Political Factors, Socio-Cultural Factors, Demo-
Graphical factors etc. It is of two Types:
1. Micro/Operating Environment: The environment which is close to business
and affects its capacity to work is known as Micro or Operating
Environment. It consists of Suppliers, Customers, Market Intermediaries,
Competitors and Public.
2. Macro/General Environment: includes factors that create opportunities and
threats to business units. Following are the elements of Macro Environment:
Economic Environment and Non-Economic Environment

Economic Environment consist of Economic Conditions of Public; Economic

Policies of the country; Economic System; Other Economic Factors (Infrastructural
Facilities, Banking, Insurance companies, money markets, capital markets etc). And
then Non-Economic Environment such as: Political Environment; Socio-Cultural
Environment; Technological Environment; Natural Environment; Demographic
Environment; International Environment

What are the Characteristics of Business Environment?

The characteristic of business environment can be described, as follows:
1. Business environment is compound in nature.
2. Business environment is constantly changing process.
3. Business environment is different for different business units.
4. It has both long term and short term impact.
5. Unlimited influence of external environment factors.
6. It is very uncertain.
7. Inter-related components.
8. It includes both internal and external environment.

B. Answer the Question

1. Why we need to create a favorable business environment?
2. What is the definition of business environment?
3. Mention the examples of internal and external environment?
4. Distinguish the differences of micro and macro environment!
5. Mention all characteristics of business environment!
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C. Structure

Simple past tense

We use the simple past to describe things that happened in the past and finished at a specific
time.
Example: He started the company in 1969.
They didnt make a profit in the first year.
Did she work there in 1975?
We often use a time reference which refers to the finished event. E.g. yesterday, last week,
last night, three years ago, in 1969, in the first year.
Form
verb stem + ed

Positive and negative

I/you/he/she/it/they/we/you Arrived didnt arrive

Question
Did I/you/he/she/it/they/we/you arrive?

verbs that end in e

arrive + d arrived
verbs that end in consonant + y
study studied
Many past simple forms are irregular.
Example: go: went have: had
See: saw buy: bought
The verb to be
Positive and negative
I/he/she/it Was was not/wasnt
you/we/they Were were not/werent
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Question
Was I/he/she/it?
Were You/we/they?

# Exercise (in groups)

Surf the net and find a reading at least 2 pages about a company. Underline the sentences in
simple past tense!

D. Terminology

Suppliers :They are the persons who supply raw material and
required components to the company. They must be
reliable and business must have multiple suppliers i.e.
they should not depend upon only one supplier.
Customers : Customers are regarded as the king of the market.
Success of every business depends upon the level of their
customers satisfaction. Types of Customers:
Wholesalers; Retailers; Industries; Government and
Other Institutions; Foreigners
Market Intermediaries :They work as a link between business and final
consumers. Types: Middleman; Marketing Agencies;
Financial Intermediaries; Physical Intermediaries
Competitors : Every move of the competitors affects the business.
Business has to adjust itself according to the strategies of
the Competitors.
Public : Any group who has actual interest in business enterprise
is termed as public e.g. media and local public. They
may be the users or non-users of the product.
Political Environment :It affects different business units extensively.
Components: Political Belief of Government; Political
Strength of the Country; Relation with other countries;
Defense and Military Policies; Centre State Relationship
in the Country; Thinking Opposition Parties towards
Business Unit
Socio-Cultural Environment: Influence exercised by social and cultural factors, not
within the control of business, is known as Socio-
Cultural Environment. These factors include: attitude of
people to work, family system, caste system, religion,
education, marriage etc.
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Technological Environment: A systematic application of scientific knowledge to

practical task is known as technology. Everyday there
has been vast changes in products, services, lifestyles and
living conditions, these changes must be analyzed by
every business unit and should adapt these changes.
Natural Environment : includes natural resources, weather, climatic conditions,
port facilities, topographical factors such as soil, sea,
rivers, rainfall etc. Every business unit must look for
these factors before choosing the location for their
business.
Demographic Environment : It is a study of perspective of population i.e. its size,
standard of living, growth rate, age-sex composition,
family size, income level (upper level, middle level and
lower level), education level etc. Every business unit
must see these features of population and recognize their
various need and produce accordingly.
International Environment : It is particularly important for industries directly
depending on import or exports. The factors that affect
the business are: Globalization, Liberalization, foreign
business policies, cultural exchange.

E. Topic for Discuss

1. How to identify internal environment for the business advantage
2. How to identify external environment for the business advantage
3. Why does Political environment influence the business?

F. References

http://www.icmrindia.org/; Global Business Environment.

http://wiki.answers.com/Q/ ; What_is_the_definition_of_Global_Business_Environment

http://europa.eu/ ; Business_Environment

http://www.thegeminigeek.com/; What-Is-Business-Environment /

Robbin, Sue. 2000. First Insight into Business. Edinburgh: Longman

Advanced Oxford Dictionary and Encarta Dictionary
 14

Chapter 3
How to Start your Own Business?

A. Reading

The choice of what business they

should go into is only one area where
entrepreneurs need an organized
approach. They must consider a lot of
factors before they commit their resources
to a business. Some of these factors are
outlined and approached in this article,
and these are given prominent attention
because the question of What Business
Should I be In? determines the basic
answers to other subsequent questions an
entrepreneur has to ask in the process of
putting structure and substance to his
business.

What should be the first investment of anyone who wants to start a business?
More than money or any other asset, ideation should be the first investment of
anybody who seeks to be an entrepreneur. Indeed, it may be said that business starts and
proceeds with the process of ideation of thinking things through carefully, of asking very
fundamental questions and giving the clearest answers to them, of conceptualizing
approaches and strategies, of formulating alternative plans, and of organizing ideas so that
they can easily be translated into effective action.

What Business Should I be In?

The fundamental and long-lasting basis for going into a business is delight in it. It
has to be something you enjoy. It should give you the chance to deal with people you
generally like dealing with. It should afford you the chance to do things you have always
wanted to do, as well as go to places you like being in. It must challenge your creativity and
enterprise. Most important must lead to self- development, or the development of certain
desirable human qualities that are latent in you.

Should I Start a New Organization or Acquire an Existing One?

The answer is It depends
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First, it depends on the nature of the business you have selected. There are business
where it takes long to develop products and markets (e.g., trading in general). In this case,
you may be better off buying into a company that already has established products in the
market but for some reason or another needs fresh equity or fresh approaches.
Second, it depends on the availability of opportunities for acquisition. If you are
sufficiently interested in a business ut figure out that you do not have the best personal
preparation for it, it may be better for you to get into an existing operation with the option to
learn the ropes and gain control of the business at a later late.
Third, it also depends on your own personal biases. Do you want to have the
satisfaction of building up newborn organization, or would you derive greater satisfaction in
turning around a company that has been losing?.
Essentially, it will be a matter of weighing pluses against minuses. What are the costs
involved in each alternative? What are The non quantifiable considerations that come into
play?

Go Alone, in Partnership, or as a Corporation?

There are advantages and disadvantages that go with any legal form of business, be it
a single proprietorship, a partnership or a corporation. These pros and cons to each business
form may fall under any of the following categories: ease in starting, professionalism in
actual operation, decision making, growth potential, lifespan, distribution of liabilities, and
legal burdens.

What is the Appropriate Business Scale?

It is not true that whatever amount you have in your hands determines what size of
operation you should put up. On the other hand, it is usually better to ask the question
independent of your financial means. There is, after all, such a thing as the appropriate
size of business.

How do you raise the Necessary Financing?

There are some options for a group of persons or entities forming a corporation in
raising the necessary funding. We can raise the financing by lending from the bank or other
financing institution. Essentially you have to consider the cost of money.

Where do you locate?

Economists often distinguish between three types of business: market oriented ones,
which have to locate close to their primary markets; resource based industries, which need to
locate near their source of basic raw materials; and foot loose industries, which can locate
anywhere depending on their major cost items and market or supply considerations.
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What Type of Organization Should You Have?

The organization your business needs depends partly on you, partly on the type of
business you have, and partly of you operation. It is well to remember that the one important
objective of an organization is efficient work, and you must do everything to keep the
climate of efficiency alive. The organization must be such that it gets things done on time
and in the best possible way it can.

What Shall You Call Your Organization?

Perhaps you feel that there is no sound sweeter than your own name. Many business
names are contrived out of personal attachments, and your name would be the closest thing
to permanence if it were also carried by an inanimate entity like a corporation.

What Laws Should You Study?

It pays to be lawyer or have a lawyer before you become a businessman. At least
you could save on some money costly legal mistakes. But there is always a lawyer next
door, or a legal book around for consultation. You only need to know some basic ideas of
the legal framework within which your business operates. And then you can study as you go
along, and learn from your mistakes, as long as these are not too tragic or expensive.

What About Your Creditors?

Getting to know the policies of your banker vis a vis overdrawing on accounts,
postdating checks, interest rates, service charges, receivables factoring, inventory financing,
and similar matters will save you and your accountant a lot of trouble in the future.

What about Your Suppliers?

You will have to survey possible suppliers of raw materials, office suppliers, and
whatever material and service input you will need. Prospective suppliers can be rated on the
basis of the following considerations: pricing, quality of product or service, dependability in
meeting delivery schedules, accessibility, special discounts, credit line extensions, and
financial stability.

What About Your Marketing Strategy?

You have to survey market segmentation, market share, target market, positioning,
and opportunity to sell your product or service. The marketing strategies and activities of
existing companies in the business provide good insights, and ample time must be invested
in studying this marketing information about your prospective competitors.

B. Answer the Question

1. Why Idea is the first investment for anyone who wants to start a business?
 17

2. What are the things to consider in choosing a type of business?

3. What categories should be considered to choose the partnership or go alone?
4. How many type of business in determining business location? Explain them!
5. What are things should be considered to be prospective suppliers?

C. Structure

Sequencing Ideas
Examples of sequencers describing the order of events
first first of all firstly
second secondly
then after that afterwards next
lastly finally now/today

Example of the use of sequencers in a paragraph

Bic is well-known for its disposable products. First of all, Bic produced the throwaway pen,
the biro. Then it came the disposable lighter. Next they invented the throwaway razor and
after that the windsurfing board. Today the company focuses on producing razors, biros and
lighters. There were three key inventions in the companys history: firstly the ballpoint pen,
secondly, the disposable lighter and lastly the throwaway razor.

Exercise! (In groups)

Please make a paragraph related to the process how to make something, e.g. how to plant the
rice, how to make a cake etc.

D. Business Terminology
Business Ideation : A competition where ideas for different concepts are the main
deliverables. The ideas may or may not be executed at a later
time. Many competitions in which a semi-structured body of text
needs to be delivered are considered in this category.
Organization : is a means to an end to achieve its goals, which are to create value
for its stakeholders (stockholders, employees, customers,
suppliers, community)
Partnership : is a for-profit business owned by two or more people. In most
forms of partnerships, each partner has unlimited liability for the
 18

debts incurred by the business. The three typical classifications of

partnerships are general partnerships, limited partnerships, and
limited liability partnerships
Corporation : is a limited liability business that has a separate legal personality
from its members. Corporations can be either privately-owned or
government-owned, and privately-owned corporations can
organize either for-profit or not-for-profit. A for-profit
corporation is owned by shareholders who elect a board of
directors to direct the corporation and hire its managerial staff. A
for-profit corporation can be either privately held or publicly held.
Supplier : are individuals or businesses that provide goods or services to
vendors in return for the agreed upon compensation. As such,
suppliers do not generally interact with consumers directly,
leaving that task to vendors or shop owners. It is not unusual for a
supplier to provide volume discounts to vendors when they agree
to sign long-term contracts or place orders for large quantities.
Marketing Strategy : is a process that can allow an organization to concentrate its
limited resources on the greatest opportunities to increase sales
and achieve a sustainable competitive advantage
Market Segmentation : is a concept in economics and marketing. A market segment is a
sub-set of a market made up of people or organizations with one
or more characteristics that cause them to demand similar product
and/or services based on qualities of those products such as price
or function
Market Share : the percentage or proportion of the total available market or
market segment that is being serviced by a company
Target Market : is a group of customers that the business has decided to aim its
marketing efforts and ultimately its merchandise. A well-defined
target market is the first element to a marketing strategy.
Positioning : is defined as the way by which the marketers creates impression
in the customers mind.

E. Topic for Discuss

Create your own business by using the questions highlighted in the article above in making
your preparation.

F. References
Damaso, Jimeno M, 1982; How To Start Your Own Business; Sinagtala Publisher. Inc,
Philippines
 19

Widiyanto, 2005; Studi Kelayakan Bisnis; Unnes Press, Semarang

Follow These Steps to Starting a Business; 2008;http://www.sba.gov/content/follow-these-
steps-starting-business
Elizabeth Kountze, 2008; Six Steps to Starting Your Own Business;
http://www.kiplinger.com/columns/starting/archive/2006/st0504.htm

Robbin, Sue. 2000. First Insight into Business. Edinburgh: Longman

Advanced Oxford Dictionary and Encarta Dictionary
 20

Chapter 4
Business Plan

A. Reading

The Business Plan format is a systematic

assessment of all the factors critical to your business
purpose and goals.

What is a Business Plan?

A business plan is a document used to
detail plans for a start-up or existing business.
This document is used to describe business
goals and strategies, as well as provide a
blueprint of financing and marketing plans.
Essentially, it provides detailed information
about where a company is going and how it
will get there. Many experts consider such a
plan critical to the success of a business

Why do we need a Business Plan?

A business plan is required when seeking a business loan or investment capital.
Investors and loan officials need to know what a business owner hopes to accomplish
and the steps he or she plans to take to meet goals.
Business plans help those in the position to loan money determine whether or
not a business is likely to succeed, based on information provided by the owner or
owners. A company backed by a well-thought-out business plan is a better loan or
investment risk than one with a thrown together or incomplete plan.
A business plan is not just useful for obtaining financing. A carefully considered
plan can serve as a veritable road map to success for the business owner and company
employees. It can help all involved stay on task while striving to achieve goals.
Furthermore, this type of plan may be reviewed and revised when necessary, allowing
those operating a business to keep the strategies that work, eliminate those that don't,
and change objectives as the business evolves.

What are Things we need to prepare a Business Plan?

A business plan should provide a detailed description of your business, including
the products or services you plan to offer, as well as expected expenditures and profits.
If you have products to sell, you'll need to include information about the manufacture
 21

of those products. A detailed description of the market for your products or services,
along with competition comparisons, should be provided as well. You'll also need to
include your plans for development, distribution, staffing, funding, and more.

Six Steps To A Great Business Plan

Start-up entrepreneurs often have difficulty writing out business plans. This
discipline is going to help you in many ways so don't skip this planning tool! To
make it easier, here are six steps that will produce a worthwhile plan:
1. Write out your basic business concept.
2. Gather all the data you can on the feasibility and the specifics of your
business concept.
3. Focus and refine your concept based on the data you have compiled.
4. Outline the specifics of your business. Using a "what, where, why, how"
approach might be useful.
5. Put your plan into a compelling form so that it will not only give you
insights and focus but, at the same time, will become a valuable tool in
dealing with business relationships that will be very important to you.
6. Review the sample plans we furnish and download the blank format to a
MS Word document. Fill this in as you progress though the course.

Outline of a Business Plan

Cover Sheet
Executive Summary
Table of Contents
1) Statement of Purpose
2) Company History
3) Business Description
4) Products and Services
5) Market Analysis
a) Customers
b) Competition
c) Marketing Strategy
6) Management
7) Operations
8) Financial Plan
9) Appendices

B. Answer the Question

1. What document refers to describe business goals and strategies?
2. Why is business plan necessary?
3. List the things to be considered in preparing the business plan!
4. Mention the six steps to a great Business Plan and explain them briefly!
 22

5. What are the outlines of a Business Plan?

C. Structure
Simple future tense (will/ be going to)
Uses
Will and be + going + to are often used to describe future actions.

Examples;
Thomas will graduate in June.
Maria is going to go to Mexico next week.

Exercises
In groups, please make 10 sentences about the dreams/desires you want to do in the future
using the future tense (it can be your business plan)

D. Business Terminology

Conditions Of Business : general climate of the economy and/or the political situation as
they relate to the profitability and prosperity of business.

Moral : concerned with principles of right and wrong or conforming to

standards of behavior and character based on those principles;
"moral sense"; "a moral scrutiny"; "a moral lesson"; "a moral
quandary"; "moral convictions"; "a moral life"

Creativity : refers to the phenomenon whereby a person creates something

new (a product, a solution, a work of art etc.) that has some kind
of value. What counts as "new" may be in reference to the
individual creator, or to the society or domain within which the
novelty occurs. What counts as "valuable" is similarly defined in
a variety of ways.

Responsibility : duty or obligation to satisfactorily perform or complete a task

(assigned by someone, or created by one's own promise or
circumstances) that one must fulfill, and which has a consequent
penalty for failure.

Patience : the quality of being patient, as the bearing of provocation,

annoyance, misfortune, or pain, without complaint, loss of
temper, irritation, or the like.
 23

E. Topic for Discuss

What is the most prospective business at UNNES? Explain it!

F. References

Robbin, Sue. 2000. First Insight into Business. Edinburgh: Longman

Advanced Oxford Dictionary and Encarta Dictionary
 24

Chapter 5
Be an Effective Businessman
A. Reading
Success in human activity depends on initiative
and capacity to make decision. These changes take place
frequently and if a businessman suffers from indecision he
might miss business opportunities. The businessman
should posse's qualities like will power and determination
to succeed. He should take advice from every body but act
according to his own decision. A businessman must be
intelligent and alert. He must be alert to business
opportunities.

A businessman should possess the quality of leadership. The success of business

depends upon loyalty and cooperation of employees. The cooperation of employees depends
on enthusiasm and interest about the work they are doing. Another notable quality of the
businessman is business morality, which means honest dealings. Honesty, straight
forwardness fair dealings dependability and moral character are also important qualities for
success in business. Today business has become so complex and competitive that it is full of
danger to start a business without knowing its problems. It is through training and education
that the businessman can properly understand the problems of his business and find
solutions for them.
Modern business is subject to fast changes. It requires a businessman to appreciate
time. He must always think in terms of time. Businessman must have consistent mind so as
to be able to exercise firmness in his dealing with others. A businessman has to deal with
many persons everyday and to take important decisions. It is necessary that the businessman
must use proper skill and tact to make best use of the business opportunities.
Adaptation means to adjust oneself according to the circumstances. He must
possess sharp memory. A businessman should be courteous. Natural aptitude inspires a
person to work hard. Moral character helps a person to earn power and prestige in society. A
businessman should be a cheerful. Good health of the businessman creates good impression
about him.

What are the qualities of a Successful Businessman?

The qualities of a successful entrepreneur are as follows:
1. Creativity.
The entrepreneur willing to launch his business must be innovative and
inventive so as to make something new, attract the recognition of the others and be
able to earn money by means of his business. New product or service is often
 25

interesting for people to check it out. If it is really useful people pay for it, it will be
highly demanded and undoubtedly bring success to its inventor.

2. Responsibility.
The entrepreneur who is irresponsible for his deeds will never become
profitable. The clients he is working with must be always happy with the
entrepreneur and his company. Responsibility means quick and proper fulfillment of
the order and even kind refusal to offer the services and return of the payment
received if the entrepreneur in some reasons becomes unable to do what is demanded
from him.

3. Stress resistance.
That is the trait that each person should bear and the entrepreneur
especially. And it's quite clear why it turns out so. Entrepreneurship implies constant
cooperation with lots of people possessing different characters. Some are extremely
rude while the others are too relaxed what can also irritate a little bit. A successful
entrepreneur is not only a rich person; he is a respected person whose advice is
always considered by the others.

4. Patience.
Starting a business is a very difficult task to perform. Worked out
strategies and money invested are not enough to make the business an effective and
flourishing one. Time is the only factor which can say whether it will be successful
or not. A successful entrepreneur is able to wait and have faith that what he is doing
is far from being worthless. He dreams that his business will make him well-known
and knows that the only thing he needs to do in this case is to wait a little.

B. Answer the Question

1. What is an effective Businessman?
2. Explain briefly about the four qualities of a successful Businessman.
3. By what means for businessman to understand the problems of his business and find the
solutions for it.
4. What is adaptation?
5. What do you think about business morality!

C. Structure
Direct and indirect question forms

# Use
We usually use direct questions to get information.
 26

Example: How much does it cost? WH/How question

Does the company have a code of practice? Yes/No question
We use indirect questions to ask difficult or personal questions or when we want to be
polite.
Example: Could you tell me what qualifications you have?
Can you tell me where I go to get a refund?
# Form
Direct questions: present simple tense
We form direct questions with the auxiliary do/does.
Example: Where do you shop?
But we do not use the auxiliary do with the verb to be.
Example: Where is the customer service desk?
Wh-/How questions
Question words auxiliary verb subject Verb
How much Does It cost?

with be
Question words Verb subject
How much Is it?

Yes/No questions
Auxiliary Subject Verb
Do I/you/we/you/they work?
Does he/she/it work?

with be
to be Subject
Am/ are I/you/we/you/they OK?
Is he/she/it OK?
 27

Indirect questions: present simple tense

Wh-/How questions
polite introduction question word(s) Subject verb
Could you tell me how much It costs?

with to be
polite introduction question word(s) Subject verb
Could you tell me how much It is?

Yes/No questions
polite intro If Subject verb
Could you tell me If I/you/we/you/they work?
Could you tell me If he/she/it works?

# Exercise
Please change these direct questions into indirect questions!
1. Where do you swim?
2. Do you live here?
3. What do you bring?
4. Does she wear a beautiful dress?
5. Why do they go?
6. Who is she?
7. Are they soldiers?
8. How much does the tie cost?

D. Business Terminology

Conditions Of Business

Moral

Creativity
 28

Responsibility

Patience

E. Topic for Discuss

Who is your favorite businessman, why do you like him/her and explain about his/her
achievement!

F. References

Robbin, Sue. 2000. First Insight into Business. Edinburgh: Longman

Advanced Oxford Dictionary and Encarta Dictionary
 29

Chapter 6
How to Sell a Product?

A. Reading
Selling a product isn't as complicated as it's made out to
be. At its most basic, a sales program is defined principally
by what you sell, who you sell to, and how you sell.
Here are some tips to sell a product :

Show enthusiasm for the product

This covers up :
1. A good salesperson loves sales, is motivated by what they're
selling, and transfers this enthusiasm and belief to the
customer.
2. Be knowledgeable about the product
3. As well as getting good product information to the right
people, it is important to translate the product's features into
benefits for the customer, thus making it easier for them to
buy

Understand the buyer's motivations

1. Understand the motivations of the buyer. Selling the
product rather than just offering it for sale almost always
involves an emotional component.
a. Take some time to look at the marketing side of
the product. What images and promises have been
created by the marketing around the product that
you're trying to sell? In what ways can you
continue this theme where it seems most
appropriate to maintain the promised satisfaction Is the buyer wanting more
than just the product?
the marketing offers?
b. During your presentation, confirm that your prospective buyer will want or need
your product.
c. If you're visiting your potential buyer's office, look at their wall and desk. What
photos, posters, images can you see? Are there images of family, pets, vacations
that will provide you with a connection to this person's wants?
2. Convert the customer's motivations into the product's characteristics. The following
positioning factors are all of importance when selling a product:
a. Position the product in the best spectrum of the market possible.
 30

b. Position the facts about the product according to the person you're selling it to.
You may have a handful of different facts but it's up to your skill to know which
of those facts best serve each individual sale.
c. Position the facts so that they reflect the desired perception. However, don't fudge
facts or lie outright. This is about perception, not deception.
d. Position the facts so that they transcend the product itself. This means that the
desirable, positive values associated with the product sell the product and have
very little to do with the product itself. Companies that excel at this include Coca-
Cola, Apple Macintosh, and many designer goods or labels.
3. Be across all the aspects that feed into the end sale of a product. Advertising,
merchandising, and marketing are support functions for selling. Selling is the goal of
these support functions and a good salesperson needs to have a decent understanding of
each of these aspects in a product's life.
a. Read basic texts on marketing. These will quickly bring you up to speed on many
of the tactics and techniques underlying advertising, merchandising, and
marketing. In addition, texts on starting a small business will often provide useful
overview information of this type. Read How to understand marketing for more
details.
b. If your product is more for work than for play, learn a little about finance to
quantify its benefits. If it's for a business, learn more about accounting to explain
how it will make the investors as well as the employees happy.

Explain the product clearly

1. Ensure that the product has been adequately explained

2. Ensure that the benefits of the product are made loud and clear.
3. When selling a product one-on-one to a prospect, translating the information to benefits is
even more important than the information required.

Close the sale

1. Close the sale. There are many styles and methods of

closing a sale. One of the most effective has the
mnemonic, ABC: "Always Be Closing." As you
confirm your prospective buyer's interest in the
product, trial closes like, "Does this sound like the
product you want?". When answered in the affirmative,
this may mean you have completed the sale on that
product, and it is time to build the sale with related
products.
2. Be prepared to give customers time to consider. Appearing over pushy is a turn-off for
many modern-day buyers who do their own savvy internet research before coming to see
 31

you. They may want to go home and do a quick online search; let them do so with your
enthusiastic and supportive pitch in their mind. If you've been truthful, helpful,
considerate, and enthusiastic and the information you've given them matches with what
they read online, it'll be your business they come back to for the product or your product
they'll prefer over a competitor's.

Improve sales of the product

1. Spread your product information. Give your

potential buyers many possible places to find out
more about your information including in the
following ways:
a. Person to person, by representatives,
dealers, salesmen, radio, TV, word-of-
mouth by customers, mail and email (in
various forms), distribution at trade
shows, seminars, telephone, fax, computer
networks, product packaging, airline
magazines, retail storefronts, space ads,
and the internet. And consider the worth
of product placement in movies, sports Get key product placement, such as in
movies and sports games
games, and other big events that are
televised.
b. Use social media. This is now a very important part of getting products out into
the broader, global marketplace.
c. Use local community events. Donating your product to a local school gala for
auctioning to raise school funds can be a great way to get your product known, as
well as getting the goodwill from the community who recognizes your generosity.
2. Increase your product's sales. Some methods to increase sales include:
o Selling more of your existing products to your existing customers - which
probably means new sales methods will need to be implemented.
o Adding new products.
o Adding new customers.
o Having an exclusive product for a set period of time that everyone wants.

Troubleshoot poor product sales

Always review the viability of the products:
1. Can the product be deleted from your line if it's not
selling so well? Try not to add new products until
you've removed the old ones or you may just have
too many choices and less leverage with which to
convince the potential buyer. If you're a business
owner, you also risk tying up too much of your cash

Get rid of products that aren't working before they

drag down your business
 32

in stock that has the potential to go obsolete faster

than you can move it.
2. Can you liquidate obsolete products?
3. Can you look back over your target market and
sharpen the focus? You may have been missing the
best fit within the market for your product.
4. Re-evaluate product mix, product design, product location and selling methods if your
product is in severe sales decline.

B. Answer the Question

1. In your opinion, what is product?
2. What are the tips to sell a product?
3. How are the ways to increase the selling of a product?
4. Mention the media to sell a product!
5. Which product is better; Mio or Vario? Why is it so?

C. Structure; Adjectives
Order of adjectives
We often use only one adjective before a noun and it is very unusual to use more than three
of them. When we use more than one adjective before the noun, we usually follow this order:
(1) (2) (3) (4) (5) (6) noun
Opinion Size shape Colour origin material
smart Big wide Black French leather bag

Comparatives and superlatives

Use
We use the comparative to compare two items:
Example: The grey suit is smarter that the brown suit.
We use the superlative to compare one item with two or more other items:
Example: The black suit is the smartest.
Form
Adjectives with one syllable
We add er to form the comparative and the + -est to form the superlative.
Example: smarter, the smartest
 33

For adjectives that end in e, we add r to form the comparative and est to form the
superlative.
Example: wider, the widest
For adjectives that end in a vowel + consonant we double the consonant.
Example: big, the biggest
Adjectives with two syllables that end in y
Comparative: y i + -er crazier
Superlative the + -est the craziest
Other two syllable and longer adjectives
Adjective form the comparative with more + adjective and the most + adjective, more
stylish, the most stylish/more expensive, the most expensive
than
We use than after a comparative.
Example: You are smarter than him.

asas
To show that two things are equal (or not) we use (not) as + adjective + as.
Example: He is as smart as you.
He is not as smart as you.
To form the opposite of the comparative and superlative forms more/the most we can use
less/the least.
Example: My job is less demanding than yours. (orMy job is not as demanding as yours.)
He has the least demanding job.
It is unusual to say:
He is less rich than you. or He is the least rich.
For adjectives that add er, -est we usually use not as as.
He is not as rich as you.
Irregular adjectives
Example: bad worse the worst
good better the best
 34

Exercise
1. Mention at least 5 your favorite products
2. Describe your products vividly with the order of adjectives!

D. Business Terminology

Small Businesses : is a business that is privately owned and operated, with a

small number of employees and relatively low volume of
sales. Small businesses are normally privately owned
corporations, partnerships, or sole proprietorships.

Motivations : is the driving force which help causes us to achieve goals.

Prospective Buyer : whose offer generally is accepted by the seller.

Potential Buyer's : consumers who are actual

Product : A good or service that most closely meets the

requirements of a particular market or segment and yield
enough profit to justify its continued existence.

Selling : is offering to exchange something of value for something

else. The something of value being offered may be
tangible or intangible.

Marketplace : is a location where goods and services are exchanged

E. Topic for Discuss

How to become a good seller

F. References

Mark H McCormack, What they don't teach you at Harvard Business School, pp. 127-
130, (1986), ISBN 0-00-636953-7

Mark H McCormack, What they don't teach you at Harvard Business School, p. 127,
(1986), ISBN 0-00-636953-7

http://en.wikipedia.org/wiki/Customer_relationship_management
 35

How to Sell A product by:Martin Carbone, Andy Zhang, Tom Viren, Rob S

Robbin, Sue. 2000. First Insight into Business. Edinburgh: Longman

Advanced Oxford Dictionary and Encarta Dictionary
 36

Chapter 7
Pay the tax for better business

A. Reading
Corporate tax or company tax refers to a tax imposed on entities that are taxed at
the entity level in a particular jurisdiction. Such taxes may include income or other taxes.
The tax systems of most countries impose an income tax at the entity level on certain type(s)
of entities (company or corporation). Many systems additionally tax owners or members of
those entities on dividends or other distributions by the entity to the members. The tax
generally is imposed on net taxable income. Net taxable
income for corporate tax is generally financial statement
income with modifications, and may be defined in great
detail within the system. The rate of tax varies by
jurisdiction. The tax may have an alternative base, such as
assets, payroll, or income computed in an alternative manner.

Definition of Taxes
A tax may be defined as a "pecuniary burden laid upon
individuals or property owners to support the government [] a
payment exacted by legislative authority."A tax "is not a voluntary
payment or donation, but an enforced contribution, exacted
pursuant to legislative authority" and is "any contribution imposed
by government [] whether under the name of toll, tribute, tallage,
gabel, impost, duty, custom, excise, subsidy, aid, supply, or other
name."

Purposes and effects

Money provided by taxation has been used by states and their functional
equivalents throughout history to carry out many functions. Some of these include
expenditures on war, the enforcement of law and public order, protection of property,
economic infrastructure (roads, legal tender, enforcement of contracts, etc.), public works,
social engineering, and the operation of government itself. Governments also use taxes to
fund welfare and public services. These services can include education systems, health care
systems, pensions for the elderly, unemployment benefits, and public transportation. Energy,
water and waste management systems are also common public utilities. Colonial and
modernizing states have also used cash taxes to draw or force reluctant subsistence
producers into cash economies.
Governments use different kinds of taxes and vary the tax rates. This is done to
distribute the tax burden among individuals or classes of the population involved in taxable
activities, such as business, or to redistribute resources between individuals or classes in the
population. In addition, taxes are applied to fund foreign aid and military ventures, to
 37

influence the macroeconomic performance of the economy (the government's strategy for
doing this is called its fiscal policy; see also tax exemption), or to modify patterns of
consumption or employment within an economy, by making some classes of transaction
more or less attractive.

Taxation has four main purposes or effects: Revenue, Redistribution, Repricing,

and Representation

1. The main purpose is revenue: taxes raise money to spend on armies, roads, schools and
hospitals, and on more indirect government functions like market regulation or legal
systems.
2. A second is redistribution. Normally, this means transferring wealth from the richer
sections of society to poorer sections.
3. A third purpose of taxation is repricing. Taxes are levied to address externalities; for
example, tobacco is taxed to discourage smoking, and a carbon tax discourages use of
carbon-based fuels.
4. A fourth, consequential effect of taxation in its historical setting has been representation.
The American revolutionary slogan "no taxation without representation" implied this:
rulers tax citizens, and citizens demand accountability from their rulers as the other part
of this bargain. Studies have shown that direct taxation (such as income taxes) generates
the greatest degree of accountability and better governance, while indirect taxation tends
to have smaller effects.

Kinds of taxes for Business

Corporate tax refers to a taxes levied by various jurisdictions on the capital or
profits of companies or associations and often includes capital gains of a company. Taxable
profits are generally considered gross revenue less expenses and cost of property sold.
Taxes for corporation or business can be categorized such as: Income Tax,
Estimated tax, and Self-Employment Tax.

B. Answer the Question

1. What is tax?
2. What is Income Tax?
3. What is a compliance cost?
4. Mention at least four purposes of taxation!
5. Mention the taxes used in business!

C. Structure

Connector of Effect
The following phrases introduce effects or consequences;
 38

as a result, therefore, so
They link a cause and an effect.
Cause Effect
The product was too expensive. As a result, sales were poor.
Sales therefore were poor. OR
Therefore, sales were poor.

As a result and therefore link two sentences. They occur in the second sentence and refer
back to the first sentence.
So is a conjunction and links cause and effect in one sentence, telling you what the effect
is.
Cause Effect
The product was too expensive so sales were poor.

Exercise (in groups)

Make a paragraph(s) consisting the cause and effect, e.g. the effect of paying the tax, the
effect of tsunami disaster, etc.

D. Business Terminology

Accountability : is a concept in ethics and governance with several meanings.

It is often used synonymously with such concepts as
responsibility, answerability, blameworthiness, liability, and
other terms associated with the expectation of account-
giving.

Carbon Tax : is an environmental tax that is levied on the carbon content of

fuels.

A coal fired power plant in

Luchegorsk, Russia. A carbon
tax would tax electricity
production using coal.

Compliance Cost : is expenditure of time or money in conforming with

government requirements such as legislation or regulation
 39

Direct Taxation : may be adjusted to the individual characteristics of the

taxpayer. (A. B. Atkinson)

Estimated tax : Generally, you must pay taxes on income, including self-
employment tax (discussed next), by making regular
payments of estimated tax during the year.

Fiscal Policy :The three possible stances of fiscal policy are neutral,
expansionary and contractionary. The simplest definitions of
these stances are as follows:
A neutral stance of fiscal policy implies a balanced
economy. This results in a large tax revenue.
Government spending is fully funded by tax revenue
and overall the budget outcome has a neutral effect on
the level of economic activity.
An expansionary stance of fiscal policy involves
government spending exceeding tax revenue.
A contractionary fiscal policy occurs when government
spending is lower than tax revenue

Income Tax : All businesses except partnerships must file an annual income
tax return. Partnerships file an information return. The form
you use depends on how your business is organized. Refer to
Business Structures to find out which returns you must file
based on the business entity established.

Indirect Taxation : indirect taxes are levied on transactions irrespective of the

circumstances of buyer or seller." (A. B. Atkinson)

Macroeconomic : is a branch of economics dealing with the performance,

structure, behavior and decision-making of the entire
economy. This includes a national, regional, or global
economy.

Redistribution : redistribution of income, property and/or wealth

Revenue : is income that a company receives from its normal business

activities, usually from the sale of goods and services to
customers. In many countries, such as the United Kingdom,
 40

revenue is referred to as turnover. Some companies receive

revenue from interest, dividends or royalties paid to them by
other companies. Revenue may refer to business income in
general, or it may refer to the amount.

Self-Employment Tax :Self-employment tax (SE tax) is a social security and

Medicare tax primarily for individuals who work for
themselves. Your payments of SE tax contribute to your
coverage under the social security system. Social security
coverage provides you with retirement benefits, disability
benefits, survivor benefits, and hospital insurance (Medicare)
benefits.

Taxable Income : refers to the base upon which an income tax system imposes
tax. Generally, it includes some or all items of income and is
reduced by expenses and other deductions.

Tax Exemption : refer to a personal allowance or specific monetary exemption

which may be claimed by an individual to reduce taxable
income under some systems.
E. Topic for Discuss
Explain about the application of tax payment in Indonesia, especially for business!

F. References

http://en.wikipedia.org/wiki/Carbon_tax

Robbin, Sue. 2000. First Insight into Business. Edinburgh: Longman

Advanced Oxford Dictionary and Encarta Dictionary
 41

Chapter 8
Corporate Social Responsibility
A. Reading

The starting point for the WBCSDs

work is based on the fundamental belief that
a coherent Corporate Social Responsibility
(CSR) strategy, based on sound ethics and
core values, offers clear business benefits.
Sustainable development rests on three
fundamental pillars: economic growth,
ecological balance, and social progress.
As an engine for social progress,
CSR helps companies live up to their
responsibilities as global citizens and local
neighbors in a fast-changing world. And
acting in a socially responsible manner is
more than just an ethical duty for a company,
but is something that actually has a bottom
line pay-off.

Corporate Social Responsibility - What

does it mean?
CSR is about how companies manage the business processes to produce an overall
positive impact on society.
The same report gave some evidence of
the different perceptions of what this should
mean from a number of different societies
across the world. Definitions as different as
"CSR is about capacity building for sustainable
livelihoods. It respects cultural differences and
finds the business opportunities in building the
skills of employees, the community and the
government" from Ghana, through to "CSR is
about business giving back to society" from the
Phillipines.
The WBCSD's (World Business Council Sustainability Development)
definition of CSR "Corporate social responibility is the continuing commitment by business
to contribute to economic development while improving the quality of life of the workforce
and their families as well as of the community and society at large".
 42

The current economic climate has forced businesses to concentrate on other things,
carbon footprint, sustainability and corporate social responsibility (CSR) are still being used
by many of them to sell to consumers.
A number of factors can drive businesses down a more sustainable path:
Legislation - government clearly has an appetite for green legislation such as
landfill tax, climate change legislation and the sustainable communities act. Some
measures are no more than stealth taxes, some are genuine attempts to change the
way we live and do business. For example, the drive for zero carbon homes by
2016 is likely to drive property developers to sites where sources of renewable
energy are available to avoid the cost of developing them.
Shareholder value: during the current
recession it is difficult to tell whether
businesses with a better record of corporate
responsibility will win in the long term. The
Ethical Corporation argues that leading
companies that truly follow a path of
corporate responsibility coupled with an
intense focus on the real drivers of
shareholder value will uncover innovative
approaches to increase economic earnings
and there is evidence from the Social
Investment Forum that ethical investment
vehicles out-perform their conventional
counterparts.
Risk: companies like Ryanair and Primark may be the exception when we
consider risk. Although these companies seem to thrive on bad headlines, many
do not. The sportswear industry suffered badly in the 1990s as a result of poor
labour practices and the leading companies now have exemplary controls over
their supply chain. Other global corporations have significant percentages of their
revenues highlighted in their risk registers with respect to failure to live up to their
social or environmental commitments.
People: there is a lot of research indicating that todays generation of graduates
are much more aware of these issues than their predecessors and that companies
wishing to attract the best talent need to show their green credentials as well as
attractive employment conditions.

B. Answer the Question

1. What are the three fundamental pillars in the sustainable development?
2. What is the definition of CSR (Corporate Social Responsibility)
3. Explain the factors that can drive businesses down a more sustainable path!

C. Structure

Present perfect
 43

Use
We use the present perfect to talk about:
1. How a past action has consequences in the present.
Example:
The two companies have merged.
Past action: They merged.
Present result: There is one company now.

Weve opened a new office in Paris.

Past action: We opened a new office
Present result: Weve got a new office in Paris.
2. An action or state which started in the past and still continues.
Example:
The company has had an office in Moscow since 1992.
Past starting point: 1992. The company had an office in Moscow in 1992.
Present: The Company has an office in Moscow.
She has worked for the family business for 35 years.
Past: She started working 35 years ago.
Present: She is still working there now.
Form
Have + past participle

Positive and negative

I/you/we/you/they/he/she/it Have havent looked
Has hasnt gone

Question
Have I/you/we/you/they looked?
Has he/she/it gone?
 44

Note: The past participle form does not change to match the person.
He has looked. I have looked.
The past participle of some verbs is irregular.

D. Business Terminology

Society : is (1) a group of people related to each other through

persistent relations such as social status, roles and social
networks. (2) A large social grouping that shares the same
geographical territory and is subject to the same political
authority and dominant cultural expectations.

Sustainability Development : is development that meets the needs of the present without
compromising the ability of future generations to meet
their own needs

Legislation : is law which has been promulgated (or "enacted") by a

legislature or other governing body, or the process of
making it.

Shareholder Value : is a business buzz term, which implies that the ultimate
measure of a company's success is to enrich shareholders.

Investment : 1. In finance, the purchase of a financial product or other

item of value with an expectation of favorable future
returns. In general terms, investment means the use money
in the hope of making more money.

2. In business, the purchase by a producer of a physical

good, such as durable equipment or inventory, in the hope
of improving future business.

Risk : The quantifiable likelihood of loss or less-than-expected

returns. Examples: currency risk, inflation risk, principal
risk, country risk, economic risk, mortgage risk, liquidity
risk, market risk, opportunity risk, income risk, interest
rate risk, prepayment risk, credit risk, unsystematic risk,
call risk, business risk, counterparty risk, purchasing-
power risk, event risk.
 45

E. Topic for Discuss

Why does business have responsible to care the society?

F. References

Robbin, Sue. 2000. First Insight into Business. Edinburgh: Longman

Advanced Oxford Dictionary and Encarta Dictionary