Business English Studies Course - Investment

A formal memo - Reading

Read this newspaper article about a fast-food company. Tap 'Show Questions' to answer the questions.

Memorandum

From : S. Dodd
To: M. Blake

Re: Ivan English - first month.

My brief in this matter has been to observe, but not intervene in, the investment decisions of Ivan English, who recently joined our department.

First of all, I would again like to point out that Mr English has not been told that I am writing these reports. This could jeopardise future relations between this employee and the company, as well as cause considerable strain in interpersonal relationships within the department if Mr English finds out what I am doing.

That said, I must now report that Mr English has made three investments. Each of these has been diligently researched, and Mr English has not made his decisions lightly. The three investments are in 1) Rymington FC, a football club that is listed on the stock market. 2) Xsolaris; a technology start-up using solar power, and 3) Wuffyburgers; a fast food chain which is apparently about to announce a major initiative.

I have not studied these investments to the same degree that Mr English has. Still, I have reservations about all of them. Football clubs are notoriously bad value for money, and though Mr English has explained why he is buying the shares, I still feel the level of risk is high. Xsolaris seems a good company with good prospects, but the business climate is very difficult. Wuffyburgers is a very risky move by an entrepreneur who may be out of his depth.

Mr English has an obvious predilection for risky investments. While any one of his purchases is individually justifiable, I think he should now make some safer investments.

Score: 0%

1. The information in this memo is ...

confidential.

general knowledge.

tbusiness information.

interpersonal.

1. a
Sally does not want Ivan to know what is in the memo. The best wat to do this is to make sure that only Mr Blake reads it. Therefore the memo is confidential. The other choices mean something else, except for general knowledge, which means that everyone knows.

2. How does Sally feel about writing the memo?

Confident.

Reserved.

Unhappy.

Not involved.

2. c
Sally is definitely involved, but she is not confident. "Reserved" means not saying what you think, but Sally does that. She says that she does not like what she is doing, so she is unhappy.

3. How will Ivan feel if he finds out about the memo?

Worried.

Angry with Sally.

Angry with the firm.

Both b & c.

3. d
Sally says that Ivan will be angry with the company ("This could jeopardise future relations") and with her (".. cause considerable strain in interpersonal relationships.." ).

4. What is Sally's opinion of Ivan's investments?

Ivan has chosen well.

Ivan has chosen very badly.

Ivan has taken risks.

Ivan is out of his depth.

4. c
Sally says that each investment is OK on its own, but together they are dangerous. So Ivan has not done well, or very badly, but he has taken risks. But Sally thinks Ivan knows what he is doing, so he is not out of his depth.

5. What does Sally say about Rymington FC?

Ivan decided lightly.

The shares will lose value.

The club is notorious.

Football clubs are bad investments.

5. d
Sally says that it is a well-known fact that the shares of football clubs cost more than they should. She does not have any objection to this particular club, but to football shares in general. But she says that Ivan chose carefully, not lightly.

6. Why does Sally think Xsolaris will do badly?

Solar power won't work.

The weather is too bad for solar power.

It's a bad time for new companies.

Xsolaris has only prospects.

6. c
Sally thinks solar power is a good idea, and she thinks the technology will work. She is not sure enough people want to invest money in the new company, because the economy is not doing well.

7. What does Sally recommend?

Ivan should take fewer risks.

Ivan should be replaced.

Ivan should sell his shares.

Ivan should justify himself.

7. a
Sally thinks that Ivan has made some good choices, but all of them are not dangerous. She thinks he should buy more shares in some companies that are safer. She does not think that Ivan should be changed or replaced.

8. How would you describe Sally's report?

Balanced.

Positive.

Negative.

Non-commital.

8. c
Sally does not think that Ivan is doing the right thing. She does mention the good things as well as the bad parts of what Ivan is doing, but she thinks there are more bad parts, so the report is negative. Because Sally gives some clear opinions, the report is not non-commital.

Investment company

A formal memo - Reading

Memorandum