Market+Leader+Intermediate+3rd+edition+SB

ACTIVITY FILE6 Money, Skills, Exercise A, page 57Business in briefh was a bad day for the Londonmarket. Following disappointingresults from FedEx in the US andfears of a credit crunch, the FTSE5 100 fell 125 points or 1.8 per centto 5,756.9, while the FTSE 250fell 189.1 points or 1.9 per cent to9,538. Only eight blue-chip stocksmanaged to make gains. The best10 was Smith & Nephew, Shares inthe medical devices group rose2.9 per cent to 5991' after UBSupgraded the stock to a 'buy'recommendation. S&N was also15 supported by rumours of a bidapproach from a Japanese company.On the other hand, British Airways.down 5.2 per cent to 225'/,p, felleven further after Morgan Stanley20 cut its largel to 149p. This wasbecause of worries about increasingfuel prices.Tate and Lyle, the sugar andsweeteners grouP. lost 5.8 per cent25 to 402'/,p after CityGroup loweredits forecasts because of rising comprices. Following recent floods inlhe US, lhe cost or com has risen25 per cent.6 Money, Case study, page 59Sculptures of famous peopleDescriptionYou make sculptures of famous people, e.g. MohammedAli, Michael Jackson, George Clooney, etc.The average price of a sculpture is $30,000. A recentsculpture of Nelson Mandela was bought for $55,000.The sculptures are aimed at all art lovers, but especiallywealthy collectors.Why you want the moneyTo finance and market exhibitions of 100 sculptures inNew York and San Francisco art galleries next year.Advantages for tycoonsThe sculptures are very popular. The tycoons will beallowed to own nine of the sculptures at the end of theexhibitions.Negotiating termsYou want the tycoons to invest $200,000 in 100sculptures. You offer 10% of the total sales revenue.Yo u moy invent any other information you wish. Note: it islikely that the tycoons will ask for a bigger stake in yourbusiness. Yo u must decide if it is worth increasing youroffer. Try to predict what questions they will ask you.,-----,Alfresh lunch box with coolerDescriptionYou have your own company, Wangli Products. It makes arange of products for the leisure and food industries.The lunch box has sections for food, such as cheese andfruit, and small and large pots for milk, yoghurt, fruitjuice, etc. There's a space for cooler bags.Alfresh is aimed mainly at schoolchildren, but will also beused by adults.Why you want the moneyYou have cashfiow problems at present. You needadditional finance to launch and market the new product.Advantages for tycoonsThe unique design of the box, its shape and colourfulappearance will ensure it will be a winner!Turnover/profit projectionsYear 1: $100,000/$20,000Year 2: $500,000/$260,000Year 3: $3.5m/$1.2mNegotiating termsYou want the tycoons to invest $200,000 for a stake of10% in our business.You may invent any other information you wish.Note: it is likely that the tycoons will ask for a biggerstake in your business. Yo u must decide if it is worthincreasing your offer. Try to predict what questions theywill ask you.136scanned for Paul Jennings