Exercises. I. Answer the following questions.

I. Answer the following questions.

1. What does John do for a living?

2. Quote two examples of retail outlets other than a shop like John’s.

3. In what way does the public benefit from competition?

4. What is free enterprise?

5. How does John compete with large organisations?

II. Give the meanings of the following words.

1. Lately. 2. To differ. 3. Prosperous. 4. Variety. 5. Unfair.

III. Give the words that fit the description.

1. Metal goods for home use.

2. To charge customers too high a price.

3. To have enough money for.

4. To give a reference in support of a statement.

5. To continue to exist.

IV. Fill in the blanks with the correct derivatives of the word “to prosper”.

1. The state of being successful is called ______ .

2. We must work hard if we want to ______ .

3. A person with a flourishing business may be described as ______ .

4. Their business ______ because they had many customers.

Sample of a Reminder Letter

Carsons Inc.

Bay Avenue

San Francisco

July 23, 2002

Dear Mr Carsons,

According to our records payment of our invoice No. 3823, sent to you in April, has not yet been made.

As specified on all our estimates and invoices our terms of payment are 30 days. Your invoice has now been outstanding for 90 days. In the case of unsettled debt of this duration it is our company policy to take legal action.

We would naturally prefer not to have to go so far. Would you please send us a check by return. In case you have lost or mislaid the original I am enclosing a copy of our invoice.

We look forward to receiving your payment by return.

Yours sincerely,

Pierre Lacoste

Pierre Lacoste

Credit Controller

Lesson 13

Insurance

Part I

To insure is to make an arrangement with an insurance organisation to receive compensation for loss or injury. An insurance company, a cooperative society or the state may sell insurance. In return for the service, the insured person will be required to make regular payments of premium.

The terms of the agreement between the insurer and the insured will be contained in a contract. This contract is called the insurance policy.

Insurance is only offered to a person who has an insurable interest in whatever is being insured. He must suffer a loss before he is entitled to compensation. When a person insures his house against fire, he is said to have an insurable interest in the house.

Insurance is based on the utmost of good faith. There must be a full disclosure of all material facts by both parties. If this is not done, the contract will be void. In less serious cases, the party that is offended may, at his discretion, honour or repudiate the contract.

There are four main branches of insurance. They are marine, life, fire and accident. Other types of risk also exist and one can obtain insurance against them. Aviation insurance for travelers by air is an example.

Life insurance enables people to provide for themselves and their dependents in the event of misfortune befalling them. If they meet with an accident, the insurer will pay the hospital bills and other expenses. Should death occur, the family of the bereaved person will be given a sum of money. Life insurance offers protection. Some consider it a form of investment.

Life insurance companies offer their policy holders certain additional benefits. Loans are available at a low rate of interest. After two years most policies acquire a surrender value. The policy holder may have his policy cancelled in return for a cash settlement. Banks also accept insurance policies as security for a loan or overdraft applied for by their clients.