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Unit 5. Financing

Key Words and Phrases:

1. to pay the bills – сплачувати рахунки

2. promotional campaign – рекламна компанія

3. to pay salary – сплачувати заробітну платню

4. employee – службовець, найманий робітник

5. emergency – непередбачений випадок, крайня необхідність

6. expansion – розширення, зростання

7. sales revenue – прибуток від продажу

8. equity capital – акціонерний капітал

9. debt capital – борговий капітал

10. proceeds – надходження, прибуток

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Read and translate the text:

Without financing there would be very little business. Financing gets a business started, supports the firm’s production and marketing activities, pays its bills and, when carefully managed, produces a reasonable profit.

Short-term financing is money that will be used for one year or less. A firm might need short-term financing to pay for a new promotional campaign, to pay salaries to its employees or it may spend these funds for emergencies.

Long-term financing is money that will be used longer than one year. Such financing may be required for starting a business, expansion, new-product development and marketing, replacement of production facilities.

Short-term financing is usually easier to obtain than long-term financing.

The four principal sources of financing are sales revenue, equity capital, debt capital, and proceeds from the sale of assets.

Exercises in Reading and Comprehension.

1. Match Column I with Column II to make up pairs of synonyms.

Column I Column II

1. bill a. gain

2. pay the bills b. pay

3. profit c. enlargement

4. salary d. substitute

5. expansion e. get

6. replacement f. proceeds

7. obtain g. loan capital

8. revenue h. set up a business

9. debt capital i. settle the bills

10. start a business j. invoice

II. Fill in the blanks with the proper words or phrases from the text.

1. European sales account for 30 % of the company’s … .

2. … is the part of a company’s money owned by shareholders.

3. … is the part of a company’s money that is borrowed and has to be repaid.

4. She used the … from the sale of her old house to buy a new one.

5. Call the police; this is an … .

6. The … of computers is a complex assembly process.

7. That company pays its … every two weeks.

8. My … has increased 5% this year.

9. The company has already paid for a new … campaign.

10. … financing is money that will be used for one year or less.

1. Short-term 6. promotional

2. salary 7. employees

3. production 8. emergency

4. proceeds 9. Debt capital

5. Equity capital 10. revenue

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