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Латыгина Базовый курс економики на англ.doc
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Budgeting

All companies have to budget for, or plan, their costs and have a budget.

The preparation of a budget is an important aspect of a company’s success. The preparation of it helps management to establish short-term and long-term goals and standards for the company, motivates employees to achieve company goals, provides for a systematic review of performance. The success of the budgeting process depends on the cooperation of all employees.

Budget (of a business) is the financial operating plan for an organization for a fixed period. The budget shows what income is anticipated and how the resources will be used during the budget period. It is a forecast used by a business to plan and control.

The primary objective of the budget is to establish a financial framework for the operations of the business. The accounting period for the budget is usually either the calendar year or the fiscal year. The fiscal year is any arbitrarily chosen twelve-month period that does not correspond to the calendar year.

The total of separate budgets from different departments within a company that shows in detail how the entire business operates is called master budget. As the business year progresses, management can use the budget as a control device that permits monitoring of the company’s operations.

Exercises in Word Study

Ex.1. Form nouns from the following verbs:

prepare, establish, motivate, achieve, cooperate, operate, anticipate, permit.

Ex.2. Give the English for:

успіх компанії; встановлювати довгострокові цілі; процес складання бюджету; встановлений строк; прибуток; прогноз; найважливіша задача; бюджетний рік; головний бюджет; використовувати бюджет як контрольний засіб; контролювати роботу компанії; виробничий план; бюджетний період.

Ex.3. Match words from list A with words from list B that have a similar meaning:

A

B

operate

goal

progress

achieve

systematic

fixed

anticipate

primary

permit

total

sum

main

expect

definite

reach

regular

allow

objective

function

develop

Ex.4. Find suitable opposites to the following words:

short-term; periodic; failure; expenditure; secondary.

Ex.5. Study the following phrases. Translate them into Ukrainian.

ad budget, annual budget, approved budget, consumer budget, current budget, deficit-free budget, household budget, low budget, master budget, operating budget, overall budget, surplus budget.

Ex.6. Match the nouns in the left-hand column with the verbs in the right-hand column. Translate the phrases into Ukrainian:

the budget

the financial operating plan

carry out

negotiate

offer

prepare

realize

revise

submit

draw up

cut

increase

reduce

set

approve

pass

Ex.7. Look at the words and phrases in the box. Match them with the correct definition from the list below.

  1. a plan of expected income and expenditure for a particular period of time;

  2. the total of separate budgets from different departments within a company;

  3. a standard plan for the performance of a business by which its operations may be measured and regulated;

  4. a statement about what one thinks will happen in the future;

  5. related to a 12-month period of business activity;

  6. the people who control a company;

  7. an aim or target;

  8. the main internal workings of business.