UNIT 5 MONEY AND

BUSINESS

Reading and vocabulary

1. Label the pictures below using the words in the box.

pie chart personnel banknote advertising suit

briefcase statistics ATM negotiation

a)………… b)………… c)……..

d)…………… e)…………….. f)…………….

g)………….. h)………………. i)……………...

Answers: a) banknote; b) ATM; c) advertising; d) suit; e) pie chart; f) briefcase; g)
personnel; h) negotiation; i) statistics

2. Complete these sentences with the correct “money verbs” from the box.

hire spend earn

sell buy rent

a) Before you …. a new television, think carefully about what you will do with your
old set.
b) The educational system is in a bad condition due to the low teachers’ salaries,
which do not enable them to ….. their living.
c) The tendency in big companies is to ……… cheap labour of people with low level
training or without training at all.
d) As a sign of protest, the occupants did not pay the …….. on a mass scale.
e) The larger banks found themselves burdened with large amounts of assets they
could not ……… .
f) You don’t need to ………. lots of money on complicated equipment if you want
to take up a hobby.

Answers: a) buy; b) earn; c) hire; d) rent; e) sell; f) spend

3. Read these sentences and then match the underlined words with their
definitions.

1) Thanks to the increased sales this quarter, I’m confident that we will break
even.
2) Many regional airports are at best only partially profitable, an in many cases
they make a loss.
3) What we are seeing increasingly is a society of private affluence and public filth.
 4) If your account is overdrawn for more than three days, then you’ll be charged a
fee of £8 per day.
5) Without the help of a generous investor, the theatre company would have
gone bankrupt.
6) It is obvious that Monaco has historically attracted many well-off retired
people.
7) While working at all hours to make ends meet, parents are lacking the time for
good childrearing.
8) You can make a small saving on T-shirts in that shop, but don’t buy jeans there.
They’re a real rip-off.

A. In fortunate circumstances financially.

B. When a business spends more money than it earns.
C. Financially ruined.
D. To have no profit or loss at the end of a business activity.
E. A product or service that is not worth what you pay for it.
F. Having money withdrawn in excess of the credit balance.
G. To have just enough money to pay for the things you need.
H. The state of having a lot of money and possessions.

Answers: 1)D; 2)B; 3)H; 4)F; 5)C; 6)A; 7)G; 8)E

4. Use the words in the box to complete the sentences.

shopaholic payday shopping spree haggle over

shoplifting shop around window-shopping on credit

a) Taylor was outraged when the owner of the store accused him of ………. .
 b) The buyer and the seller were ………… the price of the house for a week.
c) You lose your wallet and, before you know it, someone else may be using your
credit cards for a …………. .
d) Carrying all your salary in your wallet on a ……… can make you a target for
robbery and assault.
e) My sister loves to go ………. when she is on holiday, even though she can’t
afford to buy anything.
f) When you’re buying a flight, you should always …….. for the best deal.
g) According to experts a growing number of people are becoming ……….. .
h) Due to an insufficient income, many families choose to buy large products such
as television, refrigerator, furniture etc. ……….. .

Answers: a) shoplifting; b) haggling over; c) shopping spree; d) payday; e) window-

shopping; f) shop-around; g) shopaholic; h) on credit

5. Look at the following sentences and then match the underlined idioms
containing the word ‘business’ with their definitions.

1) Don’t worry about your injured ankle, you’ll be back in business in no time.
2) If there’s any funny business whatsoever, I’m backing out of this deal.
3) Although the leaders of the country are trying to change the laws about health
care, in the hospitals it’s business as usual.
4) Stop asking me so many personal questions. It’s none of your business what I
do in my private life.
5) When the president and vice president arrive, we can get down to business.
6) I’m not a great cook, but my husband can cook like nobody’s business.
7) I know it doesn’t concern me, but I made it my business to call the police
because someone had to.
8) The new regulation will put many small firms out of business.
 A. To begin doing something with the seriousness or determination the action
requires.
B. To stop operating as a business because there is no more money or work
available.
C. Do something extremely well, quickly or easily.
D. To return to normal activity after a period of time when that was not possible
due to malfunction, repair, or other bad conditions.
E. Something that is of no concern to another.
F. This means the typical, ordinary way of doing things – nothing is different from
normal activity.
G. To decide to do something in which one was not involved or that was not
one's responsibility.
H. Dishonest, unethical conduct.

Answers: 1)D; 2)H; 3)F; 4)E; 5)A; 6)C; 7)G; 8)B

6. Read the text below and then complete the gaps by choosing the correct
option.

A pawn is another term for a collateral 1)……... . Pawnbrokers 2)…….. money on items of
value ranging from gold and diamond jewellery, musical instruments, televisions,
electronics, tools, household items, firearms, and more. Some pawn shops may
specialize in certain items. Loans are based on the value of the collateral. When a
customer pays 3)…… the loan, their merchandise is returned to them. A customer may
also choose to surrender his or her collateral as payment in full. Pawn shops may offer
extensions/renewals (where permitted by state law).

Loan amounts vary according to the 4)……. of the item. There is no minimum dollar
amount allowed on a pawn transaction, but the maximum amount may be set by state
pawn laws. Pawn shops base the value of the item on current 5)…….. value, its current
condition and the ability to sell the item. Pawnbrokers use research tools that they have
at their disposal to determine an item’s value and get you the most money for the item.
Pawnshops are a business just like any other. But unlike many other businesses,
pawnshops have a special set of 6)…….. that keep them on the straight and narrow.
Pawnshops are specially licensed, and it turns out that they have to cooperate 7)…..
police on a daily basis to prevent the movement of 8)……….. merchandise.

1) A. mortgage B. loan C. fee D. commission

2) A. borrow B. rent C. impart D. lend
3) A. back B. on C. up D. close
4) A. importance B. merit C. value D. meaning
5) A. appraised B. judged C. measured D. guessed
6) A. rules B. principles C. laws D. codes
7) A. to B. with C. by D. for
8) A. cheated B. captured C. borrowed D. stolen

Answers: 1)B; 2)D; 3)A; 4)C; 5)A; 6)C; 7)B; 8)D

7. Complete the sentences with phrasal verbs. Use the correct form of these verbs
with ‘out’.

check chill bail cut

run back get kick

a) We’re just ………… and watching some TV, if you want to join us.
b) The shop ……… of bottled water and canned food after the government issued
their warning about the tornado.
c) We …… that house on the corner, but the price was overinflated considering all
the work it needs.
d) We need to …….. this important news ….. as quickly as possible.
e) Despite their promises, the company …….. of the deal when the economic
situation worsened.
f) My doctor told me to ……… fried foods in order to improve my cholesterol.
g) The owner of the restaurant …….. them …… for being loud and disorderly.
 h) The government ………… many large banks during the recession.

Answers: a) chilling out; b) ran out; c) checked out; d) get out; e) backed out; f) cut out;
g) kicked out; h) bailed out

8. Read the text and then decide if the following statements are true or false.

Online shopping has been happening for over a decade now. Globally, an increasing
number of customers are buying over the Internet since they find it
more convenient, but, which are the reasons why people are
changing the way they purchase goods? Here are some
important facts that you may not know.

Online shopping is a term referred to a form of electronic

commerce -also known as e-commerce- which allows customers to search and buy
services or goods over the Internet through a web browser. The main allure of this
process is, indeed, that customers can purchase almost any product they need without
leaving their house. Nevertheless, some surveys have shown that there are some goods
that we still prefer to buy from a neighbourhood shop, like groceries, books or furniture.
On the contrary, flight and rail tickets and clothes are increasingly being bought over the
Internet.

Online customers should have a valid method of payment to complete their transaction,
like a credit card or a PayPal account. However, there are some online shops that allow
people to pay by alternative means, such as cash on delivery or gift cards.

This general tendency to shop some goods online does

not influence all of us though. A recent study carried
out in the UK has shown that higher levels of education
and personal income correspond to more favourable
perceptions of shopping online. Furthermore, an
increased exposure to technology allows online customers to make the most of their
purchasing experiences over the Internet and increases the probability of developing
positive opinions towards new shopping channels.

Business companies are chasing to offer online services since it allows them to have
access to a worldwide market and increases customer value. Customers are also
becoming more interactive because of e-commerce: in contrast to brick-and mortar
stores, online shopping allows customers to write and read product reviews that can
influence their behaviour. In addition, online stores are available 24 hours a day and in
case of a problem with the item bought, buyers can easy return it in exchange for a
correct product or a refund. This is maybe one of the most important pros of buying over
the Internet, in contrast to the major con of mortar stores - visiting a conventional retail
store requires travel costs like gas, parking, bus tickets… and shopping must be done
during business hours.

a) The terms online shopping, electronic commerce and e-commerce are used to
describe the process of searching products to check whether they are available
to buy in brick and mortar shops. T/F
b) Customers can buy almost any product over the Internet, yet they still prefer to
buy some of them in mortar shops. T/F
c) All the online shops allow the same way of payment. T/F
d) Customer reviews have an influence on the shopping process. T/F
e) Exposure to technology, income and education are factors that influence e-
commerce customers. T/F
f) Visiting mortar stores costs less than buying a product on a website. T/F

Answers: a)F; b)T; c)F; d)T; e)T; f)F

Grammar

Review of passive voice

The passive (to be + past participle of the verb) is used when:

 who or what causes the action is unknown or unimportant, obvious or 'people in

general';

e.g. The thief was arrested. (obvious agent, the police)

The bike was stolen. (unknown agent)

 what happens is more important that who does it;

e.g. The post is delivered at 9am sharp.

 in formal writing.

e.g. Your documents were signed yesterday by the lawyer.

! We can add by + noun if it is important to say who or what did the action.

 We can also use ´it´ + a verb such as believe, consider, expect, know, report, say or
think to form an impersonal passive which is used in more formal contexts
e.g. It is thought that the President will arrive tomorrow.
 We can use the verbs believe, consider, feel, know or think to form another type
of impersonal passive followed by to + infinitive, not that + clause e.g. He is
believed to be guilty.

1. Change these active sentences to passive.

a) The robber hit him on the head with a hammer.

………………………………………………………………..
b) Many people use bicycles as a means of transport.
…………………………………………………………………..
c) The student are using the computers right now.
………………………………………………………………………….
d) Millions of fans will see the final game tomorrow.
 …………………………………………………………………….
e) They had finished preparations by the time the guests arrived.
……………………………………………………………………..
f) Someone reads the newspaper to him every day.
……………………………………………………………………..
g) They must have left the keys behind.
………………………………………………………………….
h) They’ll understand everything.
……………………………………………………………………..

Answers:

a) He was hit on the head with a hammer by the robber.

b) Bicycles are used as a means of transport.
c) The computers are being used right now by the students.
d) The final game will be seen by millions of fans tomorrow.
e) Preparations had been finished by the time the guests arrived.
f) The newspaper is read to him every day.
g) The keys must have been left behind.
h) Everything will be understood.

2. Change the active sentences into passive. Start with the word given and omit
the agent if possible.

a) John gave a bar of chocolate to Carla.

Carla ………………………
b) Sources have reported that the firm made a loss.
The firm ……………………………………
c) Jessica taught the grammar to the students.
The grammar …………………………
d) A gang dressed as clowns held up the bank.
The bank …………………………………
 e) Sophia sold the car to a doctor.
The car ……………………………..
f) People must always follow safety procedures.
Safety procedures ………………………
g) Lisa threw the ball to the child.
The child ……………………………
h) Many thin that unemployment will rise.
It …………………………………………………

Answers:

a) Carla was given a bar of chocolate.

b) The firm is reported to have made a loss.
c) The grammar was taught to the students.
d) The bank was held up by a gang dressed as clowns.
e) The car was sold to a doctor.
f) Safety procedures must always be followed.
g) The child was thrown the ball.
h) It is thought that unemployment will rise.

3. Fill in the correct form of the verbs in brackets: active or passive.

Today, paper a) …………. (use) for hundreds of things – not only books and newspapers,
but also money, stamps, bags, jewellery and even clothes.

In ancient times, before the invention of paper, people b)………… (write) on animal
skins, bones and stones. In 2700 B.C. the Egyptians c)………… (start) to make papyrus,
which was similar to paper. However, real paper is a Chinese invention. Historical
records, show that the invention of paper d) ………….. (report) in 105 A.D. by an official
of the Imperial Court. For a long time the Chinese closely guarded the secret of paper
manufacture and e)…………. (try) to eliminate other Oriental centres of production to
ensure monopoly.

Nonetheless, the paper spread widely within China and then to the rest of the world
through the Silk Road. Finally, in the 10th century, paper f)………. (bring) to Europe by
Arabs. It arrived in Spain because of the crusades and hence the first European paper
mill g) ……… (build) in 1150. Since the 18th century, most paper h) ……….. (make) out of
wood, because it is much stronger.

Today, each person i) …….. (use) about 300kg of paper every year. It has become an
essential material for our daily lives.

Answers: a) is used; b) wrote; c) started; d) was reported; e) tried; f) was brought; g)

was built; h) has been made; i) uses

The causative ‘have’ and ‘get’

Have/get + object + past participle

 We use a causative verb when we talk about an action that someone else
does for us
e.g. I cooked my dinner. (It means that I cooked it myself)
I had my dinner cooked. (It means that someone else cooked it)
 Get something done is more informal
 Get is used to give a sense of urgency e.g. Alex needs to get his car
repaired.
 Have, but not get, can be used to refer to an experience (usually bad) that
happened to the subject of the sentence e.g. Phil had his bike stolen.
 We can use have/get something done in any form or tense

4. Rewrite the following sentences using the causative ´have´.

 a) The government evacuated the whole town yesterday.
...................................................
b) When did you last service the air-conditioning?
............................................................
c) I will change the lock tomorrow.
...........................................................
d) Your cat’s coughing. You need to treat it for parasites.
................................................
e) They are baking their wedding cake.
...........................................................
f) The local council want all dog owners to tag their dogs to reduce the problem
of strays.
...................................................

Answers: a) The government had the whole town evacuated yesterday.

b) When did you last have the air-conditioning serviced?
c) I will have the lock changed tomorrow.
d) Your cat’s coughing. You need to have it treated for parasites.
e) They are having their wedding cake baked.

f) The local council want all dog owners to have their dogs tagged to reduce problems
of stray.
Writing
Review

A review should…
– have a title;
– use interesting vocabulary;
– try to catch the reader’s interest;
– be clearly organised;
– use a neutral style, but you have to check who you are writing the review for.

Review’s structure:
1. Introduction and setting: say what you are reviewing and where is the
action happening.
2. Outline of the story and the main characters (for book and film reviews)
3. Comments on various aspects of the book/film
4. Conclusion and recommendation

Writing task: You´ve seen this announcement in a gastronomic magazine:

With so many varieties of food and types of restaurants it is difficult to choose when
heading into town for dinner. Based on your current visits to local restaurants, write a
review about the finest and the most unpleasant restaurant in town.

Review sample

In this review I am going to present and compare two similar restaurants regarding their
cuisine, but absolutely different when looking at their food quality, presentation,
atmosphere and customer service.

“Golden leaves” is an old famous restaurant in the centre of the town. It is also by far
the best place for families and friends to spend a nice and quiet evening eating delicious
home-made food. The place is not very big, but it has a cosy atmosphere. The walls are
made of stone and are decorated with unusual paintings and objects, which give it a
vintage and traditional look. The cuisine is Italian, and they offer a variety of mouth-
watering food which you can guess from the first moment you enter the restaurant by
the aromas which come from the kitchen. Furthermore, I would like to make a special
mention to the service, who always has a smile on their faces being friendly and kind.
However, if I had to say a criticism it would be that it is rather expensive.

“Mamma mia” it’s another Italian restaurant also in the centre of the town but not so
appreciated. The establishment is quite small and although the old-furniture gives it an
interesting atmosphere, the place looks crowded and it has a strange smell. Another
drawback is the menu which apparently offers plenty of food, but when it comes to
order they almost never have what you want and suggest you only a few typical dishes.
Not to mention that you have to wait more than 20 minutes to bring you even the
starters. The service is quite polite, but they will often disappear, and the prices aren’t
sky-high, but I still find them expensive compared to the quality of the dishes.

In conclusion, I totally recommend “Golden leaves” because it’s such a fantastic place
which ticks all the right boxes from my point of view.

1. Match the following descriptive adjectives with their opposites.

1) Absurd a) Ordinary
2) Dreadful b) Normal
3) Outstanding c) Sensible
4) Tremendous d) Unpredictable
5) Foreseeable e) Delightful
6) Bizarre f) Insignificant

Answers: 1)c; 2)e; 3)a; 4)f; 5)d; 6)b

2. Match the descriptive adjectives underlined in these sentences with their

definitions.

1) The children found the circus show enthralling and were speechless as they
watched.
2) My brother is a goofy character and always makes people smile.
3) My sister lives in a quaint thatched cottage in the country.
 4) Our neighbours were so obstinate they refused to evacuate their house even
during the flood.
5) His languid voice and his distinguished demeanour attract sympathy and love
from women.
6) I could play with those jaunty kittens for hours.

A. Moving or speaking slowly with little energy, often in an attractive way.

B. Attractive because of being unusual and especially old-fashioned.
C. Playful behaviour; showing that you are happy and confident.
D. A casual word meaning “silly”.
E. Keeping someone's interest and attention completely.
F. Unreasonably determined, especially to act in a particular way and not to
change at all, despite argument or persuasion.

Answers: 1)E; 2)D; 3)B; 4)F; 5)A; 6)C

3. Writing task: You see this announcement in an international magazine for film
lovers.

The most inspiring and the most depressing

It's sometimes hard to choose a film that fits your mood purely based on the poster or
the description on the cover of the DVD. That's why we want to publish reviews of the
most uplifting and the most depressing films our readers have seen, so that others know
what to watch and what to avoid.

Send in a review which describes the most enriching film you've ever seen and the one
you found the biggest downer. Make sure you give reasons for your choices.

Write your review in 220-260 words in an appropriate style. This will be corrected by
your tutor.
Reading and listening

1. Read the text about starting a business and then find words in the text that
match the descriptions below.

So, you want to be an entrepreneur. Maybe there's something you're really

knowledgeable and passionate about, or perhaps you think you've found a way to fill a
gap in the marketplace. Wherever your interests lie, it's almost guaranteed that there's
a way to turn it into a business.

There's a lot to consider and plan before you take-

off, and it's important to prepare yourself for the
journey ahead. If you think you're ready to start
your first business, here's an overview of what you
need to do to make it happen.

Step 1: Do Your Research

Most likely you have already identified a business idea, so now it's time to balance it
with a little reality. Does your idea have the potential to succeed? You will need to run
your business idea through a validation process before you go any further. Do a quick
search for existing companies in your chosen industry. Learn what current brand
leaders are doing and figure out how you can do it better.

Step 2: Write a business plan

You need a plan in order to make your business

idea a reality. A business plan is a blueprint that
will guide your business from the start-up phase
through establishment and eventually business
growth, and it is a must-have for all new
businesses. The good news is that there are different types of business plans for
different types of businesses.

Step 3: Plan your finances

Starting a small business doesn't have to require a lot of money, but it will involve some
initial investment as well as the ability to cover ongoing expenses before you are turning
a profit. If you need financial assistance, a commercial loan
through a bank is a good starting point, although these are
often difficult to secure. If you are unable to take out a bank
loan, you can check other options such as small business loans
or grants, angel investors or crowdfunding.

Step 4: Determine your legal business structure

Your small business can be a sole proprietorship, a partnership, a limited liability

company (LLC) or a corporation. The business entity you choose will impact many
factors from your business name, to your liability, to how you file your taxes.

You may choose an initial business structure, and then re-evaluate and change your
structure as your business grows and needs change.

These four steps presented above are the first

important ones, but the process doesn’t end here,
there are many other things that you need to think
about such as choosing a name for your business
and registering it. Paperwork is another part of the
process when you start your own business. You need to take into consideration all type
of licenses and permits that you may need to run your business legally.

Choosing your accounting system comes next. Another very important factor for the
operation of your business is the location; you may opt for a home office, a shared or
private office space, or a retail location.

Moreover, if you are thinking about hiring employees, now is the time to start the
process. Make sure you take the time to outline the positions you need to fill, and the
job responsibilities that are part of each position.

And finally, you made it to the last phase of your small business - promotion and
advertising. Once your business is up and running, you need to start attracting clients
and customers. Explore as many small business
marketing ideas as possible so you can decide how
to promote your business most effectively, but
keep in mind that success doesn't happen
overnight.

a) Person who organizes and manages a company. ………..

b) General outline of a subject or situation. ………..
c) To understand, reason or think. …………
d) Something that is indispensable or obligatory. ……
e) The act of spending money or capital in order to gain profitable returns. ………
f) A sum of money offered with an agreement specifying the terms and conditions
of repayment of such a sum. ………..
g) The funding of a project by a large number of supporters who each contribute
with a small amount. ………..
h) Legal and/or financial responsibility. ………
i) Clerical work forming an incidental but necessary part of some work or job. ……..
j) The activity of attracting public attention to a product or business through
different means of communication. ……….

Answers: a) entrepreneur; b) overview; c) figure out; d) must-have; e) investment; f)

loan; g) crowdfunding; h) liability; i) paperwork; j) advertising

2. Listen to an extract from a radio programme about cultural business differences

and complete the gaps in the sentences below with one or two words from the
audio.

To be successful international companies need to overcome cultural a)……….. .

China represents a powerful market characterized by an exclusive b)……….. and
complicated traditions.

Chinese business culture puts an accent on c)……..; for them is really important to have
direct meetings and may also question their partners d)……. life and even their capital.

The forms of greeting Asian people can also differ from one country to another. The
European e)………… it’s not really appreciated as they rather prefer a bow, a simple smile
or nod, or even a flawed salutation in their own language.

Business cards are another important detail. However, you should bare in mind that you
must always hand in a business card using f)……….; otherwise you’re being disrespectful.

Entertainment time is extremely appreciated by Chinese businesspeople and gifts are

also highly valued because they are signs of g)……… and care. Nonetheless, one should
seriously investigate what kind of presents are accepted and esteemed or else you may
risk sending an h)……….. message.

Answers: a) differences; b) etiquette; c) trust; d) personal; e) handshake; f) both hands;

g) respect; h) inappropriate

Audio transcript:

International organizations have the exciting and complicated task of doing business
across the globe. Where domestic companies can intimately learn the nuances of their
home nation, businesses with a more widespread reach have to cope with the
differences from one country to the next.

For example, China is the most populous nation in the world and its economy is currently
in the midst of a boom. It’s a hub of economic activity and business growth, with ample
opportunities for international organizations. However, the unique etiquette and
business customs in China can be complicated.

To find success, here are a few tips for navigating the economic and cultural business
differences which you may encounter in China:
 Chinese businesspeople want to develop relationships with the people they buy
and sell to. For them, relationships are very important, and they will often want
to get to know the person they’re doing business with and tend to prefer face-
to-face interactions. While this can slow down the pace of business, trust is at a
premium in the Chinese business culture. Don't be surprised if a business partner
asks you about your personal life or even your finances. This is a sign of interest,
not indication of rudeness or disrespect.
 The European-style firm handshake is something most Asians are familiar with,
if not from business meetings with foreign partners then at least from western
television. However, there aren’t many places in Asia where the handshake has
been adopted by locals. Instead forms of greeting that don’t involve direct
physical contact tend to be preferred. In many contexts, it’s considered
especially inappropriate for men and women who don’t know one another to
have any physical contact. So, don’t immediately reach out your hand – wait for
the other person’s cue. In China, Japan, Korea, Taiwan and Vietnam, people bow
when they meet. In Southeast Asian countries, it’s more common to smile and
nod politely and of course to provide a verbal greeting. It’s always a good idea to
greet people with “hello” or a similar word in their own language. Even if your
pronunciation isn’t perfect, your attempt will be appreciated.
 Exchanging business cards is one of the most internationally common ways of
providing contact details. In Europe, business cards are not handed over with
both hands, but it is regarded as impolite if one does that in China, and in Asia.
 In Europe, you might take a potential client out to dinner to discuss business, but
in China, entertaining is a goal unto itself. Successful businesspeople regularly
entertain others and don't force them to discuss business deals during dinners
and parties. Additionally, gifts are highly valued in Chinese culture, so consider
offering small tokens to your business partners. These gifts are a sign of respect
and care, both of which are highly important aspects of the business culture in
China. However, you may want to consider carefully the type of gift you’re
offering because inappropriate gifts may communicate wrong messages. It’s a
safe bet to find out what sweets are popular locally. Buy them from somewhere
 that’s highly recommended by locals, ensure they’re attractively packaged and
you’ll have a gift that’s appropriate in just about all contexts.

3. Read the text below and then answer the questions by choosing the correct
option.

Netflix is a streaming content provider that allows subscribers to watch TV shows,

movies, documentaries and more on a wide range of
Internet-connected devices. The company also provide
DVD rental plans where it supplies the shows and movies
on DVDs.

How did it all start? Well, the idea came to Wilmot Reed Hastings (CEO of Netflix) in 1977
after he was inclined to pay a late fee for a tape that he forgot to return to the
Blockbuster video store. Ironically, 3 years later, Hastings offered Blockbuster a
partnership, but they turned down his offer and, as a sole competitor, they got
annihilated by the end of 2005.

Introducing a subscription fee to the video on demand service was certainly a risky
move. Before Netflix, this practice was still unheard of. Today, inspired by the success of
this company, many services are adopting this model. Apart from
being one of the pioneers of the industry with their subscription
model, the value proposition is yet another element which helped
this particular service to become as popular as it is today. In fact,
there are a total of three elements that are making all the
difference: affordable price, accessibility and original content.

While Netflix offers more than 20.000 episodes of various shows for an extremely
affordable price, it also delivers its content via multiple and various devices. There isn’t
a service on the market which covers more electronic devices than this one. The rating
algorithm is certainly a feature which adds on the value, but the cherry on top is
definitely the original content which Netflix produces.

Since 2013, Netflix has been producing its own shows

converting it in an undisputed kingpin of the VOD
industry that is changing the television as we know it,
and one of the leading companies when it comes to
forward thinking.

Apart from being the world’s leading internet television network, Netflix is a pioneer in
other aspects too. For instance, their holiday policy is pretty famous giving that its staff
has unlimited vacations. Yes, you read it well…. unrestricted vacations, a dream came
true for every employee in the world. The company made this choice after employees
pointed out that they didn't count the work hours they did on evenings and weekends
for the company, so it wasn't fair for their relaxation time to be tracked either. As a
result, Netflix now focuses more on how well staff are doing their jobs and the results
they get, as opposed to how they accomplish it.

This ultra-flexible, freedom-intensive approach to holiday time hasn't exactly hurt the
company. Perhaps more importantly, this non-policy yields broader lessons about the
modern workplace.

For instance, ever more companies are realising that

autonomy isn't the opposite of accountability – it's
the pathway to it. Netflix’s vice-president for
corporate communication, Steve Swasey, stated
that "Rules and policies and regulations and
stipulations are innovation killers. People do their best work when they're
unencumbered. If you're spending a lot of time accounting for the time you're spending,
that's time you're not innovating." The idea is that freedom and responsibility, long
considered fundamentally incompatible, actually go together quite well.

In conclusion, if you want to be a big important company such as Netflix, it’s not enough
to keep only your customers happy but also your employees. Remember that results are
what matter. How you got there, or how long it took, is less relevant.
1) Why did Blockbuster have to close its business’ door?
a) Because people often forgot to pay their fees
b) Because they didn’t offer a good service.
c) Because they weren’t competitive enough.

2) What makes Netflix so popular?

a) Their new VOD system.
b) The perfect mix between budget, convenience and innovation.
c) The fact that you can access their content from any gadget.

3) In the beginning of the sixth paragraph, the writer emphasises...

a) how important holidays are to employees.
b) how difficult Is to implement a new policy.
c) how unusual the situation at Netflix is.

4) The management of Netflix considers that …

a) employees’ achievements must be the company’s top priority.
b) they should introduce both flexible working hours and flexible holidays.
c) the employees should be willing to do extra work.

5) Steve Swasey expresses the view that company policies often …

a) cause confusion among employees because they are too complex.
b) prevent employees from being as effective as they could be.
c) result in employees being given the wrong tasks.

6) In conclusion, it is stated that Netflix’s approach addresses the modern issue of…
a) employees needing more responsibility to be happier.
 b) wasted time being extremely damaging for the business.
c) outcomes being more important than methods.

Answers: 1)c; 2)b; 3)c; 4)a; 5)b; 6)c

4. Listen to two people talking about their economic situation and then decide if
the statements below are true or false.

Speaker 1:

a) He says that his pension is too low to cover all his basic needs in a month.
b) He states that his daughter always offers to help him giving that she has a good
financial situation.
c) Every unexpected change related to his economy generates anxiety, especially
that he already needs to control his spending tightly.
d) Speaker one suggests that he shouldn’t pay any rent giving that he doesn’t own
a property.
e) He also claims that the insignificant rise in his pension doesn’t keep up with the
actual life cost which are increasing at a worrying speed.

Speaker 2:

f) She claims that although she is a single mom of two with no financial support
from the children’s father, she could face her monthly expenses when having a
substantial remuneration.
g) After the company where she worked went out of business, she had to settle for
a part-time job which makes it really difficult for her to make ends meet.
h) As a result of not paying her mortgage, she got an eviction notification, but she
doesn’t worry because she knows that she can borrow some money to pay it
although she’ll be in debt afterwards.
i) Although she obtained some financial aid, speaker two feels sad because she
doesn’t have anyone to support her emotionally.
Answers: a)T; b)F; c)T; d)F; e)T; f) T; g)T; h)F; i)F

Audio transcript:

Speaker 1: I have worked for 40 years contributing to social security and paying my taxes
regularly. Now that I am retired, I find myself in a very precarious economic situation.
The pension that has been attributed to me is so low that some months I cannot afford
all the expenses that my rent generates, the electricity bill and other basic
consumptions. In fact, on certain occasions I have to resort to financial aid from my
daughter, even though her salary is not abundant either.

I find it outrageous that after having contributed as an employee for so many years and
never having been an economic burden for my country, at my age I find myself in this
situation. I need to keep a check on each spending I make and every time I watch the
news and hear something about prices rising or whatever detrimental economic
situation I get jumpy. I cannot even afford buying a chocolate for my grandchildren for
god’s sake!

I believe that the government should take into account the properties which one may
own or not, because for me the monthly amount of the rent supposes a significant
economic outlay. Likewise, I have observed that in the last two years I have hardly
received an increase in the amount of my pension. Despite this, the cost of living is going
up at an alarming rate, which in turn, for me, leads to a decrease in my purchasing
power.

Speaker 2: I am a single mother with two under-aged children under my care. Ten years
ago, I bought a house and did not have any problem to face the mortgage expenses. At
that time, I had a stable and well-paid job. From the beginning I raised my children by
myself, since their father is a foreigner and does not reside in Spain. However, in the last
two years my work situation and, consequently, also the economic situation have
changed drastically.
The company where I worked went bankrupt, and without foreseeing it I suddenly
became jobless. After a few months unemployed I got a job as a sales clerk in a fashion
store, nonetheless, the economic retribution is very low since my contract is only part-
time. With two children under my custody and high daily expenses I have reached the
point of not being able to keep up with my mortgage repayments.

A few weeks ago, I received a notification as they will proceed to evict me if I do not pay
every month due. My whole economy is a mess and I feel helpless. The thought of
financing every aspect of my life through debt brings me down.

What’s more, I have no relatives or friends to turn to and I have tried to receive aid form
several organizations, but without any result.
Review Unit 5

1. Choose the correct option to fill in the gaps.

1) The inspector ………… the suspect’s alibi by questioning his friends.

a) bailed out
b) checked out
c) kicked out

2) If medical supplies are allowed to ……….., lives will be put in danger.

a) chill out
b) cut out
c) run out

3) I like to ………. in front of the television with a glass of wine and some nibbles.
a) chill out
b) bail out
c) check out

4) The doctor told him that he is pre-obese and should immediately ……….. starchy
carbs from his diet.
a) chill out
b) get out
c) cut out

5) They ……. of the deal the day before they were due to sign the contract.
a) backed out
b) bailed out
c) checked out

6) The owner has decided to ………. all the tenants in order to tear down the
building and sell the land.
a) run out
b) kick out
c) get out
Answers: 1)b; 2)c; 3)a; 4)c; 5)a; 6)b

2. Decide if the following expressions have been used correctly in these

sentences. Put a tick in box A if it’s correct and in box B if it’s not.

A B
a) Only a few months later, the company was back in business
working with up-dated and expensive machinery.
b) If there’s any business as usual, we’ll soon find out.
c) To made it his business, Phil picked up a second job delivering
pizzas.
d) Well, it’s getting late – perhaps we’d better get down to business.
e) Supermarkets are putting the small grocers out of business.
f) My mom can cook chocolate chip cookies like is none of your
business.

Answers: Correct: a, d, e; Incorrect: b, c, f

3. Choose the correct option.

1) Many people are struggling to ………. because wages are failing to keep pace
with rising prices.
a) break even
b) make ends meet
c) make a loss

2) I heard on the news that the charity is a …………., so I won’t send them any
more money.
a) rip-off
b) well-off
c) pay-off

3) In the first year of the business we only just managed to …………… .

a) overdrawn
b) bankrupt
c) break even
 4) The merchant and the buyer ……….. the price of the damaged products.
a) haggled over
b) overdrawn
c) broke even

5) My cousin was caught ………. and now he may be jailed for it.
a) window-shopping
b) shoplifting
c) shopping around

6) They piled up such a huge debt that they soon went ………… .
a) overdrawn
b) on credit
c) bankrupt

Answers: 1)b; 2)a; 3)c; 4)a; 5)b; 6)c

4. Choose the appropriate options to complete the sentences.

1) These differences between two photographs ……….. with the help of

Photoshop.
a) should remove
b) have to remove
c) could have been removed

2) Camera footage shows that illegal goods ……….. into the warehouse last week.
a) are smuggled
b) were smuggled
c) are being smuggled

3) The taste of coffee ………. By how and where the coffee bean is grown.
a) has to be affected
b) could affect
c) can be affected
 4) The hundreds of millions of people who live on the border of poverty ………..
with the threat of starvation now.
a) are faced
b) had faced
c) faced

5) A more developed model of this car …….. in the showroom soon.

a) was shown
b) will be shown
c) is going to show

6) These clothes ……….. for daily use so you …………. them wherever you want.
a) design/should be worn
b) will be designed/must wear
c) are designed/can wear

7) It ………. that too little money ………… by the government on roads.

a) is being said/is being spent
b) is said/spends
c) has said/is spent

8) New legislation ……….. in congress but it …….. by many.

a) Will be introduced/isn’t accepted
b) Was introduced/wasn’t accepted
c) Is introduced/won’t accept

Answers: 1)c; 2)b; 3)c; 4)a; 5)b; 6)c; 7)a; 8)b

Glossary

A G
Affluence – opulencia Get out – escapar, huir
ATM (Automated teller machine) – Goofy – bobo/a, ridículo/a
cajero automático

H
B
Haggle over – regatear
Back out – echarse atrás, retirarse
Hire – contratar; alquilar
Bail out – rescatar; echarse atrás
Bankrupt – insolvente, en bancarrota
J
Bizarre – extraño/a
Jaunty – vivaz, alegre; gallardo/a,
Break-even – salir sin ganar ni perder, desenvuelto/a
salir al raso

K
C
Kick out – echar, expulsar
Check out – verificar, comprobar
Chill out – relajarse
L
Cut out – eliminar; extraer
Languid – lánguido/a

D
M
Dreadful – terrible, espantoso/a
Make a loss – sufrir pérdidas, perder
dinero
E Make ends meet – llegar a fin de mes,
hacer alcanzar
Earn – ganar (dinero, el sustento)
Enthralling – cautivador/a, fascinante
O
Obstinate – obstinado/a, terco/a
F
Overdrawn – en descubierto, en
Foreseeable – predecible
números rojos
P Run out – quedarse sin, agotarse
Pawnbroker – prestamista; casa de
empeños
S
Pie chart – gráfico de sectores
Shop around – comparer precios
Shopaholic – comprador compulsivo
Q
Shopping spree – compra compulsiva
Quaint – pintoresco/a, evocador/a
Shoplifting - hurto

R
W
Rip-off – estafa, robo; timo
Well-off – rico/a, adinerado