7. Which source of finance described in the second part of the article is most appropriate for each of the following situations? Explain your decisions.

1. a company in a high-technology industry which does not wish to purchase all the expensive equipment it needs;

2. a new company in a depressed area which will create a lot of new jobs;

3. a company that has already borrowed a lot of money but cannot pay its costs until slow-paying customers pay their bills;

4. a successful company wishing to engage in a high risk but potentially profitable new enterprise where the owners are willing to give up part of their equity in order to expand.

8. Do you agree with the following. Why? Why not?

1. People with overdrafts are bad money managers.

2. It is good business practice for a company to pay its bills late.

3. It is useless to support the idea of microcredit at the time of large scale businesses.

9. Complete the idioms below with the following words: trees fool muck rope object license

1. You really can sell anything on these Internet auction sites. It's money for old…… .

2. We're way over budget on this. We'll have to make some cutbacks. Someone needs to tell the marketing department that money doesn't grow on ............

3. Every great industrialist will tell you that where there's..........., there's money.

4. Charging people to park their cars at airports is a ........... to print money.

5. He's always investing in businesses which have no hope of being successful. I don't know much about business angels but it seems to me that a........... and his money are soon parted.

6. Their new headquarters cost millions and millions. They are making so much profit that money is no .............

10. Match the idioms with these definitions.

1. Be careful with money as there is only a limited amount.

2. Money earned easily by doing something which is not difficult, (two idioms)

3. Where you find dirt you also find money.

4. Stupid people spend money quickly without thinking about it.

5. You can spend as much as you like on something.

11. Comment on each statement using one of the idioms in Exercise 10.

Example: They pay me a fortune and the work is really easy. It's money for old rope, then.

1. He inherited two million dollars and spent it all in less than a year.

2. Gloria can afford to spend huge sums of money each week.

3. Mario set up a garbage collecting company. It was so successful that he was able to retire at 40.

4. My son expects me to buy him anything he wants.

12. Sum up information you’ve acquired about raising money considering the following issues:

• family and friends

• venture capital

• business angels

• clearing banks

• invoice discounting

• grants

• hire purchase and leasing

• loans