6.3 Answer the questions to the text:

1. How long does the start up money have to last?

2. What money can small businesses start with?

3. Can relatives or friends help a new business?

4. What are the personal assets that can be used to raise start up funds?

5. What is the owner’s equity of the home?

6. How can a businessman obtain a second mortgage?

7. In what way can an insurance policy be used to raise start up financing?

8. What is a variable rate installment loan?

9. How does the prime rate increase change the variable rate installment loan?

10. What interest rate do family members loan money at?

11. What benefits can a family member get if he lends money to start up a new business?

12. What do venture capital firms specialize in?

13. What branches of industry do venture capital firms prefer to invest money in?

14. What do venture capital firms provide cash for?

6.4 Find the English equivalents to the following phrases in the text:

источник денежных средств; начальное финансирование; венчурные инвесторы; личное имущество; собрать денежные средства; собственный капитал; вторая закладная; кредит под залог домашнего имущества; полис страхования жизни; возвращаемая сумма (лицу, отказавшемуся от страхового полиса); ссуда, погашаемая в рассрочку; базовая ставка; финансовый посредник.

6.5 Make up ten English sentences using words from the active vocabulary of the lesson

6.6 Which passage of the text contains information on:

1) raising funds with the help of the businessman’s possessions;

2) raising funds with the help of credit.

6.7 Are these statements true, false, or not mentioned in the text?

1. The policyholder may use the surrender value as collateral on a loan.

2. A mutual shareholder is an individual or company that legally owns one or more shares of stock in a joint stock company.

3. Venture capital firms provide funds for early-stage, high-potential, growth companies in the interest of generating a return.

4. Debt financing is never the financial strategy for the start-up stage of businesses.

5. Friends and relatives can become your source of finances.

6.8 Choose one phrase that expresses the main idea of the text

1. Receiving a second mortgage.

2. Getting a seed capital.

3. Investing in high profit businesses.

4. Sharing ownership of a business.

6.9 Substitution drill

Statement: The businessman must find money that will last until revenue begins to exceed cash outflow.

Example: entrepreneur

The entrepreneur must find money that will last until revenue begins to exceed cash outflows.

1. till the time	3. obtain	5. money	7. starts	9. has to
2. continue	4. prevail	6. outgo	8. funds

6.10 Read the dialogue

John McKesson is asking for financial advice at the financial adviser’s bureau

Adv: Well, do you have any problems, Mr. McKesson?

John: Oh, yes. The problem is that I was trying to start a small company to sell computer software.

Adv: You say, you were trying...?

John: You know, it didn’t go too far. My personal assets were too limited, and I was thinking of getting some credit from a bank.

Adv: You don’t seem to be very experienced, do you?

John: Well, I’m rather good at producing the stuff - the programming and all that. But finance is old Greek to me. I was looking for someone to help me, and so here I am.

Adv: Of course you’ve got to get someone to help you. But if you aren’t going to expand and employ a large staff, you have to learn many things in addition to making programs. Finance is very important, especially when you make the first steps.