Материал: 2016

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Exercise 2. Make sentences using the words in the correct order

1Profit, are, of the company's, dividends, the part.

2Shareholders, paid, to, dividends, are.

3Own, the number, shareholders, of shares.

4Shares, sometimes, sell, their, shareholders.

5Is, well, the company, doing.

6Might, new, the company, shares, issue.

7Buy, at a low, these, they, new, price, shares.

8Finance, must, with, supplied, business, be.

9Are, no, problems, there, serious.

10Market, companies, to the capital, business, turn.

11Assist, commercial, business, banks, companies.

Exercise 3. Translate the sentences into Russian

1Any business requires financing.

2A considerable time must elapse between expenditure and the receipt of ii

3Financial institutions assist in the financing of business.

4Part of the company's profit is paid to shareholders as dividends.

5The company wants to turn some of its profit into capital.

6The company can issue new shares at no cost to the existing shareholders

7Such shares are issued instead of paying dividends to the shareholders.

8It depends on the fact if the company is doing well or badly.

9This is called rights issue.

10The company needs to raise more capital for expansion.

11A company might issue new shares if necessary.

Exercise 4. Make a brief summary about

a)shares and shareholders;

b)why do they issue new shares?;

c)companies: the way of financing.

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UNIT 9

Exercise 1. Read and translate the text.

SOURCES OF FINANCE

For well-established firm, the most obvious source of finance is its own profits. Instead of paying out all its profits to its shareholders, the firm can retain some within the business. Using retained profits in the business is described as «ploughing back of profits». It is an important source of finance for the larger firm.

In the case of a very small firm, the necessary money will be provided by the proprietor and his family and friends with, perhaps, a loan from the local bank.

Loans can be short-term and long-term ones. Short-term loans are usually repayable within three years. Many such loans are for periods of one year or less. The sources of loans are as follows:

•overdrafts

•bills of exchange

•trade credits

•hire purchases

•leasing.

A bank overdraft is the most widely used type of short-term finance. The bank allows the company to overdraw its account by some agreed amount. Interest is charged by the bank only on the amount overdrawn. It is one of the cheapest forms of borrowing.

Bills of exchange enable the company to obtain short-term finance from a bank or discount house where they send bills of exchange for discounting.

Trade credits are quite normal in business. They are often granted by the sellers allowing the buyers to pay in some time, say in three months.

A firm may acquire some equipment such as cars, lorries, office equipment and some type of machinery on hire-purchase terms. It makes a deposit and pays the principles and benefits of proper forest management.

Exercise 2. Translate the sentences into Russian

1The constructive aims and purposes of the owner are vital to woodland.

2The art of treating -wood is difficult, the expense is high.

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3The planting of forest trees on individual farms is a matter of public welfare, as well as a matter of economic benefit to the owner.

4In most cases the investment banker is a risk taker.

5An accurate determination of all costs and all incomes is essential for an accurate determination of capital value of property.

6In most capital budgeting decisions the emphasis is on cash flow.

7The growth of firelog manufacturing process was quite high.

8The disposal of some products like railroad ties, pulpwood and even sawlogs to the larger organizations is relatively small.

9Finland's national economy and its high standard of living are to a large extent dependent on the renewable forest resources.

10The preparation of small-sized trees to timber assortments is always costly.

11The bulk of Nordic production of forwarders and multi-function machines is in the hands of two large groups.

12From the viewpoint of the world markets of the mobile multi-function machines, Sweden is of special importance due to its high degree of mechanization.

13The payback period on the equipment is slightly over 6 months at an annua! interest rate of 9 percent.

Exercise 3. Complete each sentences using one word.

only on the amount overdrawn.

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Exercise 4. Put special questions to the text about

1retained profits;

2short-term long-term loans;

3bank overdrafts;

4bills of exchange;

5trade credits;

6leasing;

7ownership;

8hire-purchase terms.

UNIT 10

Exercise 1. Read and translate the text.

FINANCIAL INSTITUTIONS

There are many important financial institutions which provide finance for companies. These institutions provide money in different ways.

•Banks

Although banks specialize in supplying short-term loans, they are prepared to make loans for longer periods – up to 20 years in certain circumstances.

•Insurance companies

The regular premiums paid by policyholders are invested in government securities, company shares, land, and property of all kinds. The income from these investments makes it possible for insurance companies to pay out interests which are greater than the total payments made by policyholders.

•Pension funds

Although in many countries there is a state pension scheme to which all workers contribute, a large number of employed and self-employed people also belong to private pension schemes. The money which accumulates in these pension funds is invested and works in a very similar manner to the funds of insurance companies.

•Unit trusts cannot be re-sold on the open market, but they can be sold back to the unit trust at any time.

•Finance houses. These institutions provide the loans which finance hirepurchase schemes and leasing arrangements. Firms which sell goods on hire-purchase

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or lease goods do not have to wait two or three years before their goods are fully paid for. They receive immediate payment form a finance house, and it is the finance house which collects the regular installments paid by the purchaser.

There are many other special financial institutions which provide finance for companies. Besides, in many countries a government is an important source of finance for privately-owned firms.

Vocabulary

Exercise 2. Use the words in brackets to make your questions.

1.(financial institutions / are?)

2.(how / provide money?)

3. (what loans / specialise?)

4. (regular premiums / are invested?)

5. (self-employed people / belong to?)

6. (shares or units / issue?)

7. (finance houses / collect?)

8. (firms/receive payment?)

9. (units / are re-sold?)

10.(workers / contribute?)

11.(insurance companies / pay out?)

Exercise 3. What can you say about

a)insurance companies;

b)pension funds;

c)unit trusts;

d)finance houses.