Task 13. Agree or disagree with the following statements.

1. Finance is the primary concern of statesmen alone.

2. Some public men devote themselves entirely to finance.

3. Finance is the field where the concepts of time, money and risk are interrelated.

4. Finance is not only money itself but also the process of managing it.

5. There are various areas of finance.

6. Finance is not used by non-profit organizations.

7. Corporate finance is securing and utilizing capital for all phases of business operation.

8. It takes money to make money.

9. A new business needs capital not only for ongoing expenses but also for purchasing necessary assets.

10. Most of the money a business uses for its expenses comes from external sources.

11. Money that comes from the operation of a business is described as internal funds.

12. Most business owners keep all of the profits for themselves.

13. Retained earnings are viewed as internal funds.

14. Successful busi­nesses do not need to use external funds to cover operating costs.

15. Reducing spending is the only thing a firm can do to obtain additional financing.

Task 14. Match items in column A with their synonyms in column B.

A	B
statesmen	to run a company;
commercial organization	to earn money;
corporate finance	operating costs;
profits	spending;
obtaining	to secure;
to make money	activities;
to operate a company	receiving;
to provide	earnings;
to meet expenses	to cover costs;
operations	managerial finance;
expenses	business entity;
ongoing expenses	public men;

Task 15. Find in the text “What is Finance?” (Part I) (Task 11) the words opposite in meaning to the following:

1. non-profit organization;	3. lend;	5. to minimize;	7. to reduce;	9. external funds;
2. utilize (the funds);	4. selling;	6. unnecessary;	8. expenses;	10. insufficient.

Task 16. Find in the text “What is Finance?” (Part I) (Task 11) the words (word-combinations) similar in meaning to the following:

to establish a company;	7. area;	12. to look for;
to perform (an activity);	8. idea;	13. politician;
considered to be;	9. fully;	14. in need of;
a wide range of;	10. to try;	15. buying;
profit-making;	11. using;	16. major.

Task 17. a) Match the terms in column A with their definitions in column B:

A

B

asset inventory household retained earnings

a thing of value that a person or a company owns, such as money or property or the right to receive payment of a debt; all the people living together in a single house or flat, considered as a unit; connected with looking after a house or flat and the people living in it; (especially AmE) all the goods owned by a business, including raw materials, parts, work not yet finished and finished products; complete list of something, especially of all the goods and property owned by a person, a company, an organization, etc.; the part of the profit made by a company after tax has been paid that is invested in the company rather than being paid to shareholders as dividends;

b) Translate into Ukrainian paying special attention to the words in italics.

1. The group has total assets of 1.2 billion. 2. The vehicle is recorded as an asset in the company accounts. 3. Foreign companies were prevented from buying local media assets (= media businesses). 4. Our staff are our most valuable asset. 5. This report is based on a survey of around 5 000 households. 6. How much does the average household spend on food each week? 7. There has been a sharp decrease in household debt. 8. The company has no factories, no inventory, no delivery trucks and no sales force. 9. The software can improve inventory management and cash flow. 10. There is a drive to cut costs and reduce inventory levels in manufacturing. 11. She keeps a full inventory of company assets and updates it every six months. 12. They made (took) an inventory of all the goods in the shop. 13. Retained earnings are profits earned by a company but not distributed as dividends. 14. The vast majority of capital spending by companies is financed from retained earnings.

Task 18. “Odd man out.” In each line cross out a word (word combination) that in its meaning differs from the others. Explain your choice.

1. individuals – state – personal finance;

2. government – public finance – businesses;

3. corporation – small business – managerial finance;

4. external funds – retained earnings – internal funds;

5. statesmen – commercial organization – government;

6. households – corporate finance – commercial organizations;

Task 19. a) Fill in the blanks with the most appropriate terms from the box.

charge	credit	to take out
means	outgo	credit card
wallet	debt	insolvency
issued	bills	collateral

Our modern society is based on mass consumption of goods and services of all kinds, and there are so many attractive things to buy. Little wonder, many families today live beyond their (1)_____.

It’s so easy (2)_____ a loan at the bank. Almost any property of value will serve as (3)_____. Then there is the (4)_____. That is the little plastic identification plate that you carry in your (5)_____. Credit cards are (6)_____ by banks, travel agencies, and credit associations of all kinds. When paying for a meal in a restaurant or buying something in a store, you merely produce your card and say, “(7)_____ it!”

Of course you have to pay the (8)_____ eventually, but the availabili­ty of so much easy (9)_____ does make it simple to get over your head in (10)_____. Financial planning – keeping an account of income and (11)_____ – can help most families avoid the headaches of even temporary (12)_____.

b) Think and answer.

1. What makes many people today live beyond their means?

2. Is it easy to take out a loan at the bank these days?

3. How can the credit card – the little plastic identification plate that you carry in your wallet – facilitate payments for goods and services?

4. What should you do not to get over your head in debt?

5. Apart from sound financial planning what else can help families to avoid even temporary insolvency?

Task 20. a) Study the following words.