3.15 Comprehension questions

1. What is the simplest way of transferring funds abroad?

2. What does a customer do in his bank when he wants to send money abroad?

3. What instruments does his bank prepare after his visit?

4. Who signs the letter?

5. Is it free of charge?

6. What is the difference between an airmail remittance order and а cable remittance order?

7. What is the advantage of а cable remittance order?

8. What is the third way of transferring funds abroad and in what way is it executed?

Lesson 4

Active vocabulary

1. Study the following words and phrases:

concern (n)	- забота, беспокойство
used to	- имел обыкновение, обычно делал (что-либо)
to take care	- заботиться, беспокоиться
to negotiate (v)	- вести переговоры, обговаривать
term (n)	- срок
terms (n, pl)	- условия (договора)
timing (n)	- согласованность действий, операций
to flow (v)	- течь
inflow	- приход, вход, приток, вливание
outflow	- выход, отток
to develop (v)	- развивать, разрабатывать
to forecast (v)	- прогнозировать, предсказывать, предвидеть
revenue (n)	- доход, доходные статьи
expenses (n, pl)	- расходы
objective (n)	- цель
to determine (v)	- определять, устанавливать
to compare (v)	- сравнивать
to involve (v)	- привлекать, вовлекать, втягивать
involved	- вовлеченный
to expect (v)	- ожидать
expected	- ожидаемый
to predict (v)	- предугадывать, предвидеть
available (adj)	- имеющийся в наличии, доступный
strategy (n)	- стратегия
to exceed (v)	- превосходить
to run out of (v)	- лишиться, истощить (запас)
solution ( n)	- решение (проблемы)
to reduce (v)	- сокращать, уменьшать
to trim (v)	- здесь: уменьшать, ограничивать
technique (n)	- техника, метод, способ
fiscal year	- финансовый год
to match (v)	- приводить в соответствие

4.2 Read and translate the text Financial management

1. In the past, financial management was not a major concern for a business. A company used to establish relations with a local bank. The bank handled the financing and the company took care of producing and selling.

2. Today only a few firms operate in this way. Usually businesses have their own financial managers who work with the banks. They negotiate terms of financial transactions, compare rates among competing financial institutions. Financial management begins with the creation of a financial plan. The plan includes timing and amount of funds and the inflow and outflow of money. The financial manager develops and controls the financial plan. He also forecasts the economic conditions, the company’s revenues, expenses and profits.

3. The financial manager’s job starts and ends with the company’s objectives. He reviews them and determines the funding they require. The financial manager compares the expenses involved to the expected revenues. It helps him to predict cash flow. The available cash consists of beginning cash plus customer payments and funds from financing. The financial manager plans a strategy to make the ending cash positive. If cash outflow exceeds cash inflow the company will run out of cash. The solution is to reduce outflows. The financial manager can trim expenses or ask the customers to pay faster. The financial manager also chooses financing techniques. One of them is short-term financing. Another is long term financing. At the end of the fiscal year the financial manager reviews the company’s financial status and plans the next year’s financial strategy.