- •Vocabulary
- •Vocabulary Tasks
- •I. Study the following words and phrases. Recall the sentences in which they are used in the text. Use them in sentences of your own.
- •II. Replace the Ukrainian words and phrases by appropriate English equivalents. Translate the sentences.
- •III. Change the noun form into the verb and adjective forms. You may want to use a dictionary.
- •IV. For each word or phrase, write one which means the opposite.
- •V. Match these words as they occur in the text. Translate the phrases.
- •VII. Find words and phrases in the text which mean:
- •VIII. Fill in the blanks with prepositions.
- •II. Mark these statements t (true) or f (false) according to the information in the text. Find the part of the text that gives the correct information.
- •I. Write sentences with the following words.
- •II. Write questions to the following answers.
- •Text b. Financial Plan
- •Vocabulary
- •Reading and Speaking Tasks
- •I. Make up questions covering the content of the text and le your fellow students answer them.
- •II. Having read the text, what you can now say about:
- •III. Work with a partner who read the text to produce a summary of the text. You need only mention the important points. Lesson 2. Firm's finances Text a: Short-Term and Long-Term Expenditures
- •Vocabulary
- •Vocabulary Tasks
- •I. Study the following words and phrases. Recall the sentences in which they are used in the text. Use them in sentences of your own.
- •II. Replace the Ukrainian words and phrases by appropriate English equivalents. Translate the sentences.
- •III. Change the noun form into the verb and adjective forms. You may want to use a dictionary.
- •IV. For each word or phrase, write one which means the opposite.
- •VII. Find words and phrases in the text which mean:
- •VIII. Fill in the blanks with prepositions.
- •II. Mark these statements t (true) or f (false) according to the information in the text. Find the part of the text that gives the correct information.
- •III. Without looking back at the next, exchange its content with someone who read the text too.
- •I. Write sentences with the following words.
- •Part II. Sources of Long-Term Funds
- •Vocabulary
- •Vocabulary Tasks
- •I. Study the following words and phrases. Recall the sentences in which they are used in the text. Use them in sentences of your own.
- •II. Replace the Ukrainian words and phrases by appropriate English equivalents. Translate the sentences.
- •III. Change the noun form into the verb and adjective forms. You may want to use a dictionary.
- •IV. For each word or phrase, write one which means the opposite.
- •VII. Find words and phrases in the text which mean:
- •VIII. Fill in the blanks with prepositions.
- •Inventory Loans
- •Reading Tasks
- •I. Answer the questions using the information from the text.
- •II. Mark these statements t (true) or f (false) according to the information in the text. Find the part of the text that gives the correct information.
- •III. Without looking back at the next, exchange its content with someone who read the text too. Writing and Speaking Tasks
- •I. Write sentences with the following words.
- •III. Identify five sources of short-term financing for businesses.
- •Text b: Financial Management for Small Businesses
- •Venture Capital As a Source of Funds
- •Vocabulary
- •Reading and Speaking Tasks
VIII. Fill in the blanks with prepositions.
Inventory Loans
A firm's inventory may be a sufficiently valuable asset to act as collateral .... a loan. When a loan is made with inventory as collateral, the lender lends the borrower some portion .... the stated value of the inventory.
The attractiveness of inventory as collateral for a loan depends .... how much real security it gives for the loan amount. If the inventory can be converted .... cash easily, it is relatively more valuable as collateral. In general, a firm's work-in-process inventory is the most difficult to convert to cash and thus least valuable as collateral. Boxes full .... expensive, partially completed lenses for eyeglasses, for example, are of little value on the open market. Inventory that is easily transported makes better collateral than inventory that is difficult to move. Finally, inventory that is easily identified and controlled also makes better collateral. One thousand crates of canned tomatoes that are tagged and isolated .... other foods would be better collateral than one thousand boxes of assorted canned goods.
The main drawback with inventory as collateral arises when the borrower is a relatively poor credit risk. One bank lent money .... a salad dressing firm using drums of salad oil as collateral. When the firm defaulted .... its loan, the bank found to its chagrin that the drums contained mostly water with oil only on the top - the inventory collateral had disappeared!
IX. Fill in the blanks with the most appropriate words from the list.
1. confident 6. secured
2. seize 7. accounts
3. collateral 8. bonds
4. loan 9. receivable
5. assets 10. pledged
Accounts receivable can be used as collateral for a ...., a process called pledging accounts receivable. In the event of nonpayment, the lender may .... the receivables. If these assets are not enough to cover the loan, the borrower must make up the difference.
Not all lenders will accept a firm's accounts .... as collateral. Those who do are typically financial institutions with credit departments capable of evaluating the quality of the firm's receivables. Only if the lender is .... that the risk of the firm's debtors' not paying is acceptably low will the loan be granted.
Using accounts receivable as .... is especially important to service companies such as accounting firms and law offices. These firms do not have inventories to offer as collateral Accounts receivable are their main sources of collateral for getting .... loans.
Most businesses have other types of assets that can be .... as collateral. A few businesses own marketable securities, such as stocks or .... of other companies, that can serve as collateral. Many more own fixed assets such as land, buildings, and equipment that can be used as collateral. But fixed .... are usually used to secure long-term -not short-term - loans. It is easy to see, then, why most short-term business borrowing is secured by .... receivable and inventories.