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Letter of order. Sample of a letter of order. Wisteria Ltd. Practice. Task 2. Choose from the words below to complete the sentences.
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TEXT 2.
LETTER of ORDER.
To place an order for some goods it is necessary to fill in an order form stating the quantity of articles with their description, price, terms of payment, date of delivery, discounts, etc.
When it is necessary to make certain points quite clear a cover letter is prepared to accompany the order form.
The Seller or Supplier sends an order acknowledgement or confirmation in case he can fulfil it or a refusal if he cannot.
Sample of a Letter of Order
WISTERIA LTD.
164 Victoria St., Newbay, Ches., J23 4FG England
Tel. (143)-564-412 Fax (143)-564-414
Men’s Clothes Dealers Ltd.
142 South Road Sheffield S20 4HL England
Yor ref. BV4397
Our ref. DFS3297
21st March, 2007
Dear Sirs,
Our Order for Silk Shirts
In response to your letter of 17th March, we thank you for sending us your catalogues of men's silk shirts. We are sure there will be a great demand for them in Ukraine.
We are enclosing our Order No. 144, and would ask you to return its duplicate to us, duly signed and sealed, as an acknowledgement.
Yours faithfully,
Vladimir Smarton
Export-Import Manager
Enc. Order No. 144
ORDER №144
(please refer to this number on all correspondence)
Men’s Clothes Dealers Ltd.
142 South Road Sheffield S20 4HL England
21th March, 1997
Please supply 400 men's silk shirts in the colours and sizes (collar) specified below:
Size Colour Quantity
14 white 70
14 blue 30
15 white 70
15 blue 30
16 white 70
16 blue 30
17 white 70
17 blue 30
Price: $10. 53 each (total — $4212)
Delivery; air freight, CIF Kiev
Payment: by letter of credit
Packing: standard
Alex Wincot
Purchase Manager
Wisteria Ltd.
Please send us the copy of this order, duly signed and sealed, as an acknowledgement.
Practice
Task 1. Write your own letter of order for 200 men`s suits, 60. 7 pounds of sterling apiece, in black, grey and blue colours, payed for by a letter of credit, and delivered CIF Odessa. Use the word-expressions below:
In reply (response) to your letter (fax) of (dated) …
We enclose (are enclosing) our order for …
We accept your offer and have pleasure in placing an order with you for …
Please confirm that you can supply …
Please send the copy of this order to us, duly signed, as an acknowledgement.
Please supply/send us…
Task 2. Choose from the words below to complete the sentences.
net, market, loss, cash-flow, capital, sales, overheads, expenditure, gross, profit.
1. The forecast which predicts how much money will be gained by a business is called the... forecast.
2. The forecast which predicts how much money will be lost by a business is called the... forecast.
3. The forecast which predicts how much money will be received or spent by a business is the... forecast.
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4. The forecast which predicts where most sales will be made, and what their value will be, is the... forecast
5. The forecast which predicts how much the company will sell is the... forecast.
6. The forecast which predicts how much money will be spent by the company is the forecast of...
7. The Forecast which predicts how much money is needed to start up a business or to increase its wealth is the... forecast.
8. The forecast which predicts how much money the company will earn before tax is paid is the... profit forecast
9. The forecast which predicts how much money the company will earn after tax is paid is the... profit forecast.
10. The forecast which predicts how much money the company will have to spend on salaries, heating and lighting, rent, etc., is the forecast of...
Task 3. Watch BBC Business Course, unit Negotiating Prices; make up your own dialogues.
UNIT 7
Text 1.
SMALL BUSINESS in the USA:
an S-corporation is not always best.
It is generally believed that small companies should incorporate as S-corporations. While an S-corporation enjoys many corporate attributes (the main is that the owners of a corporation do not expose their personal assets to corporate liability), it is treated like a partnership for purposes of determining its Federal income tax liability. At the end of each fiscal year, its total earnings (or losses) are prorated to each shareholder, and these earnings (or losses) are incorporated into their individual income tax returns.
Among the advantages of the S-corporation for small business is no “double taxation” – paying an income tax on corporate net income, and then paying an individual income tax on the dividend income subsequently distributed by the corporation.
Thus, an S-corporation “generally will not be liable for federal income tax. ” If losses are incurred during the start-up period (or any other period), these losses can be deducted each year from the shareholders’ tax returns. All income, losses, credits, and deductions are “washed through” the S-corporation at the end of each fiscal year and carried directly to the individual tax return for each shareholder. Being emptied out at the end of each fiscal year, the S-corporation has no retained earnings account.
For most of small businesses, the S-corporation has long been the preferred corporate structure. The operational accounting is simpler, and accounting, legal, and administrative expenses are minimized. Shareholders receive the immediate benefits of earnings without “double taxation”, and the shelter of tax deductive losses on their individual tax returns. There are sound reasons to state that this is generally the most popular corporate structure.
However, for small businesses that are growing rapidly, the conventional C-corporation status may turn out to be more preferable. The primary motivation for such a change would be the ability to retain and reinvest earnings in the expanding business.
The maximum Federal income tax rate for C-corporation is 34 percent for taxable income up to $10 million, whereas the maximum tax rate on S-corporation income is now the maximum individual rate of 39. 6 percent. At the other end of the range, the Federal tax on corporate income of $100, 000 is $22, 250 for a C-corporation, whereas the incremental tax on this income added to other income of the shareholder in an S-corporation could be as high as $39, 600 if the shareholders are already in the maximum tax bracket. If the business is striving to retain and reinvest all possible cash during a period of strong growth, it will obviously forgo distributing cash dividends thereby avoiding the problem of“double taxation. ”
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The maximum tax will be effectively reduced by more than 16 percent, and substantial funds will then be retained to meet the capital needs of the expanding enterprise. Discounting the effects of depreciation charges, this shift of corporate structure yields an almost 10 percent increase in net cash flow.
Task 1. Answer the following questions:
1. What types of corporations are described?
2. What is the maximum corporation tax rate for taxable income up to $10. 0 million?
3. What is the main advantage of the S-corporation status?
4. What does the term “double taxation” mean?
5. In what case is the C-corporation status more preferable than the S-corporation status?
Task 2. Substitute the following definitions with the words below:
unlimited liability, legal entity, partnership, limited liability, sole proprietorship.
1. non-incorporated business with unlimited liability owned by one person who may or may not have employees.
2. non-incorporated business formed by the association of two or more persons (but not more than twenty) who share risks and profits according to a partnership agreement.
3. party that may make contracts, carry out businesses, own property, employ people and is capable of suing and being sued for the breach of contract.
4. legal law according to which shareholders are responsible for the company's debt only to the amount unpaid on their shares.
5. legal law according to which owners are responsible for company's debt to the full extent of their fortune.
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