Business English For International Trade And Business Informatics. В 2 частях. Ч.1. Учебное пособие

Unit 2. Financing & Investment

C.benefit; lease;

D.repayment schedule; bond.

3.The ________ on my savings account is only 1.5%, so I’m exploring stocks for better returns.

A.tax exemption;

B.balloon payment;

C.interest rate;

D.decent profit.

4.Startups often use ________ by selling company shares instead of taking on ________.

A.equity financing; debt;

B.personal savings; collateral;

C.seller financing; mutual funds;

D.fixed-income instruments; ownership.

5.After the business made a ________, the owner used the money to

________ new equipment.

A.volatile deal; service;

B.repayment schedule; borrow;

C.decent profit; acquire;

D.regular income; allocate.

6.The bank agreed to ________ the project after the team promised to

________ costs within a year.

A.lend; cover;

B.opt for; seek;

C.fund; conform;

D.negotiate; pay off.

7.________ are less risky than stocks because they provide a ________, like bonds.

A.Mutual funds; conventional offer;

B.Fixed-income instruments; regular income;

C.Capital reserves; balloon payment;

D.Real estate properties; tax exemption.

8.In a _____, the buyer pays the seller in installments instead of getting a bank ____.

A.stock market; benefit;

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Business English for International Trade аnd Business Informatics

B.seller finance deal; mortgage;

C.demand account; lease;

D.volatile term; agreement.

9.The company will ________ resources to marketing and ________ investors to expand.

A.service; borrow;

B.allocate; seek;

C.commit; outline;

D.acquire; negotiate.

10.If you fail to ________, the lender can take your ________ as compen-

sation.

A.pay off the debt; collateral;

B.service the debt; stock market;

C.cover costs; personal savings;

D.conform; real estate property.

5.Use these pair of words to fill the gaps

1.Borrow ←→ Lend

А. I need to __ $500;

В. The bank will __ you money.

2.Collateral ←→ Loan

А. The __ has a 5% interest rate; В. They used their house as __.

3.Appraisal ←→ Acquire

А. They plan to __ a competitor; В. A property __ is required.

4.Allocate ←→ Capital Reserves

А. __ funds to R&D; В. Keep 10% in __.

5.Balloon Payment ←→ Term

А. ____ is a large final repayment; В. a 5-year __.

6.Mutual Funds ←→ Stock Market

А. Shares are traded at _____;

В. _____ are professionally managed investments

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Unit 2. Financing & Investment

7.Benefit ←→ Tax Exemption

А. Charities get __;

В. They can get health insurance __.

8.Negotiate → Agreement

А. They should __ a better deal; В. They have signed a sales __.

9.Fixed-Income Instruments ←→ Volatile

А. Bonds are considered to be ____; В. The stock market is __.

10.Debt ←→ Equity

А. She sold 10 % of her __ in the business; В. The company has $1M in __.

Grammar

Present Simple, Present Continuous, Present Perfect, or Present Per-

fect Continuous (see Appendix).

6. Complete with the correct form of the verb from the box. (Present Simple, Present Continuous).

borrow, lend, buy, cost, save, sell, pay, need, agree, help.

1.I ______ for the groceries right now.

2.I ______ money when I want ice cream.

3.Look! Tom ______ money from his brother.

4.My sister always ______ money for new books.

5.They ______ their old bikes today.

6.This discount ______ us save money.

7.This toy ______ €15.

8.We ______ to ______ on the price before buying.

7. Fill in the gaps with the correct present tense form of the verb in brackets (Present Simple, Present Continuous, Present Perfect, or Present Perfect Continuous).

1. Banks usually ________ (require) ________ like property before approving a mortgage.

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Business English for International Trade аnd Business Informatics

A.require / collateral;

B.requires / appraisal;

C.are requiring / ownership.

2.She ________ (negotiate) the terms of the seller finance deal this week.

A.negotiates;

B.is negotiating;

C.has negotiated.

3.Many investors ________ (opt) for mutual funds because stocks

________ (become) too volatile recently.

A.opt / become;

B.have opted / are becoming;

C.are opting / become.

4.Our company ________ (allocate) 20% of profits to capital reserves every quarter.

A.allocates;

B.is allocating;

C.has allocated.

5.He ________ (service) his debt successfully since 2020, so his credit score ________ (improve).

A.services / improves;

B.has been servicing / has improved;

C.is servicing / improved.

6.I ________ (consider) equity financing because I ________ (not want) to borrow money.

A.consider / don’t want;

B.am considering / don’t want;

C.have considered / am not wanting.

7.Real estate prices ________ (rise) steadily, so more people ________

(seek) mortgages now.

A.rise / seek;

B.have risen / are seeking;

C.are rising / seek.

8.We ________ (just acquire) new office space and ________ (plan) to lease part of it.

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Unit 2. Financing & Investment

A.just acquire / plan;

B.have just acquired / are planning;

C.acquired / plan.

9.The government ________ (offer) tax exemptions to startups that

________ (conform) to green policies.

A.offers / conform;

B.is offering / are conforming;

C.has offered / conform.

10.They ________ (pay off) their loan early to avoid a balloon payment next year.

A.pay off;

B.are paying off;

C.have paid off.

Reading

8.Text A. Read the text and decide if the following statements TRUE (directly stated or implied in the text), FALSE (contradicted by the text) or NOT STATED (not mentioned or implied in the text).

1.Financing involves obtaining funds for projects, businesses, or personal needs.

2.Legal documents about financing always require collateral.

3.Debt financing requires repayment with interest.

4.Equity financing involves selling ownership shares in a company.

5.Legal financing agreements prevent all future disputes between parties.

6.Personal savings are excluded as a source of financing.

7.The terms "debt financing" and "equity financing" are defined in the text.

8.Mortgage contracts are an example of financing for home purchases.

9.Financing agreements must include government approval.

10.Startups never use debt financing.

What does "financing" mean in legal documents?

Financing refers to the process of obtaining money to fund a project, business, or personal need. In legal documents, this term often appears when discussing how funds will be raised or allocated. For instance, if someone wants to start

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Business English for International Trade аnd Business Informatics

a business, they might need financing to cover initial costs like equipment, rent, or salaries. This can come from various sources, such as banks, investors, or personal savings. Understanding financing is essential because it helps individuals and businesses plan their financial future and make informed decisions.

When financing is mentioned in legal contexts, it usually involves agreements that outline the terms of borrowing money or investing funds. These agreements specify how much money is needed, the interest rates, repayment schedules, and any collateral that might be required. Collateral is an asset that a borrower offers to a lender to secure a loan. If the borrower fails to repay, the lender can take the collateral as compensation. This aspect of financing is crucial because it protects the lender's investment while providing the borrower with the necessary funds.

Different types of financing exist, including debt financing and equity financing. Debt financing involves borrowing money that must be paid back with interest, while equity financing means raising money by selling shares of the company. Each type has its advantages and disadvantages, and the choice depends on the specific needs and goals of the individual or business seeking funds. For example, a startup might prefer equity financing to avoid immediate repayment obligations, while an established company might opt for debt financing to maintain ownership control.

Legal documents related to financing often include terms and conditions that both parties must agree upon. These documents ensure that everyone understands their rights and responsibilities. For example, a loan agreement will detail how much money is being borrowed, the interest rate, and the timeline for repayment. This clarity helps prevent misunderstandings and disputes down the line, making it easier for both parties to fulfill their obligations.

In summary, financing is a fundamental concept in legal documents that involves acquiring funds for various purposes. It encompasses different methods of raising money, each with its own set of rules and agreements. Understanding financing can empower individuals and businesses to make better financial decisions and navigate their financial journeys with confidence.

What are some examples of "financing" in legal contracts?

Loan Agreement: "The financing for the new equipment will be provided through a loan agreement with a local bank."

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Unit 2. Financing & Investment

Investment Agreement: "The financing for the startup will come from an investment agreement with several angel investors."

Mortgage Contract: "The financing for the home purchase will be secured through a mortgage contract with a lending institution."

Partnership Agreement: "The financing for the joint venture will be outlined in the partnership agreement between the two companies."

Lease Agreement: "The financing for the office space will be structured as part of the lease agreement, including monthly payments."

Construction Contract: "The financing for the construction project will be detailed in the construction contract, specifying payment milestones."

Business Plan: "The financing section of the business plan outlines the sources of funding needed to launch the new product."

Grant Agreement: "The financing for the research project will be provided through a grant agreement with a government agency."

(https://www.legalbriefai.com/legal-terms/financing)

9. Texts B. Read the text and summarize its main ideas.

Investment: definition, types

An investment is a purchase of an asset made with the intention of earning a regular income, capital appreciation, or both. An investment helps the investor to grow and eventually build wealth over a period of time. Investing directly or indirectly helps the country’s economy as it increases the country’s ability to produce.

“Investment” as a word comes from the Italian word “investire” which means “to commit money in order to earn a financial return”. An Investment is done to generate day-to-day income or make a decent one-time profit. Other than this, people have other reasons too. For example, some people do it because their investment gives them a tax exemption, while some are just fascinated with the lucrative returns.

Investment helps you in generating cash flow. Meaning holding onto your investment makes you money. For example, holding stock pays a dividend or renting a real estate property.

An investment can be defined as an act of investing money into an asset with the intention of earning profit. Investment is a method of putting your capital into

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Business English for International Trade аnd Business Informatics

buying a specific thing at a lower price and selling it at a much higher price in the future. There are all types of investments according to an investor’s financial goals and risk-taking capacity. Some tend to be more volatile compared to others. Therefore, an investor should only invest in assets that he understands better. As a term, investment is strongly attached to stocks, bonds, or real estate. But investments can be made in other things as well, such as ETFs, mutual funds, commodities, cryptocurrencies, etc.

Investment is a good, item, or thing that an investor buys in the hopes of creating a potential income or future wealth. The investment value of an item or a thing appreciates over the medium to long term. These investments are also called the “Assets” of the investor. This also helps in creating a regular cash flow for an investor.

The habit of investing money also helps the economy of a nation. Investing in the stock market, for example, makes funds available for big corporations to scale their businesses. This in return generates more employment.

Different investors manage their investments differently. Keeping only one kind of investment and not diversifying or keeping your money parked in various investments with no decisive asset allocation can be dangerous. A healthy portfolio is always very well diversified and the fund is distributed to each investment purposefully or in other words, according to the risks and goals of the investor.

There are all sorts of examples of investment in the financial markets. Some examples are riskier compared to others. Each investment has its own characteristic. An investor has to study all the variety of investments and choose the one that matches his goals and risk-taking capacity. Here are the top 3 choices that an investor has.

Equity investment – Equity investment means to buy equity of a company or in other words, when an investor buys shares of a company, he is essentially buying that company’s equity. This type of investment is considered as risky as shares tend to be volatile.

The benefits an investor gets while investing in equity is long term capital appreciation and regular income through dividends. An investor can invest in equities either from his own demat account or by investing in mutual funds or ETFs.

Debt investment – Debt investment means to buy bonds issued by the government or a company. Bonds are fixed-income instruments which help

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Unit 2. Financing & Investment

companies and governments to raise debt from the public to fund their own projects. Debt investment is considered to be one of the safest investments.

The investor lends the money to the issuer and in return, the issuer has to pay a fixed or floating rate of interest annually on the initial investment made by the investor. On the maturity day, the issuer has to return the initial amount to the investor.

Real Estate investment – Real Estate investment means investing your money in residential or commercial properties, Buying land or buildings etc. Just like an equity investor, a real estate investor also enjoys the long-term appreciation of the property along with a regular source of income through renting.

Other types of investment avenues include fixed deposits, mutual funds, futures and options, and investing in commodities like gold and steel. Investors can research what type of investment works for them and make investment decisions prudently.

10. Read the Text B again and answer the following questions.

1.According to the text, what is the primary definition of an "investment"?

2.What are the two main financial goals people have when making an investment?

3.What is the origin of the word "investment" and what did it originally

mean?

4.Besides earning income or profit, what are two other reasons mentioned why people invest?

5.How does an investment help generate "cash flow"? Give two examples from the text.

6.What term does the text use synonymously with "investment" when referring to the items bought?

7.How does investing, particularly in the stock market, help a country's economy? (Mention two effects).

8.What are the top 3 investment choices mentioned in the text?

9.What is meant by "capital appreciation" in the context of investment?

10.Why is it important for an investor to understand an asset before investing in it?

11.How is an investment different from just buying something? (Hint: focus on the intention and expectation).

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12. Besides stocks, bonds, and real estate, what other types of investments are listed?

Rendering

11. Render from English into Russian.

What are Financing Activities in Cashflow?

In the cash flow statement, financing activities are the flow of money between a business and its creditors/owners. It focuses on how the business raises capital and takes care of its investors. The activities incorporate issuing and selling stock, adding loans, and paying dividends.

A positive number on the income articulation demonstrates that the business has gotten cash. This lifts its resource levels. A Negative figure demonstrates the business has paid out capital to investors or is taking care of long-term debt.

The cash flow from financing activities incorporates funds organizations get from raising capital. The cash inflow or outflow from these activities gets reflected in the organization's cash flow statement. A cash flow statement shows how much money gets raised and spent during a given period. The categories in a cash flow statement are investing activities, operating activities, and financing activities.

In the financing activities part of the cash flow statements, organizations list the cash inflows and cash outflows from:

•Short-term loans: Borrowing and repaying;

•Long-term loans & long-term liabilities: Borrowing and repaying;

•Own shares of common and preferred stock: Issuing or repurchasing;

•Cash dividends payments on their capital stock.

Organizations analyze how often they generate cash flow statements based upon the frequency of the transactions. For organizations with a great cash movement, a week-by-week or month-to-month statement is justified; for others, quarterly or yearly works well.

(https://www.deskera.com/blog/financing-activities)

12. Render from Russian into English.

Инвестиционные риски – потенциальная угроза потери вложенных в инвестиции средств. Они возникают от воздействия внешних или внутренних

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