XI. Answer the questions about the text

1. What is the aim of developing business plan?

2. What are the basic constituents of a business plan?

3. What expenses should be included into onetime costs?

4. What are operating expenses?

5. What are fixed costs?

6. What is the role of a cash flow planning?

7. What are the types of break – even point?

8. How is it possible to calculate the efficiency of the business?

9. What does the ownership equity consist of?

XII. Find in the dictionary the definitions of the synonyms with the meaning of «расход, издержки»

loss, expenses, disbursement, cost, expenditure.

XIII. Read the text and divide it into some meaningful parts, giving the proper title to each of them the stages of a business

Like every business, yours can be expected to go through four stages: survivability, growth, profitability and decline. Your objective should be to achieve the first three and avoid the fourth as long as possible. Businesses need sound financing, effective marketing and adequate sales volume. The connection between them constitute your owner's equity or net worth.

You should prepare projected balance sheets for at least three years of business operation during your planning phase. Your balance sheet shows you whether your investment in your business is increasing or decreasing in value over time.

Planning is not a onetime activity. Don't prepare a business plan and follow it blindly. Reexamine your plan and update it to your experience. Where are your financial weaknesses and what can you do to improve your profit?

To start your business, you may need more money than you now have. Think, if you should save more cash before starting or borrow it from anywhere, or take a loan at a bank. Careful, detailed, thorough financial plan enables you to make sound decisions about your business and so it is the key to your financial success.

XIV. Write a summary of the text according to the following plan

1. This text under the title ... says about ...;

2. The paragraphs may be called ...;

3. Mainly the text is devoted to ...;

4. By planning it is very important to take into account ...;

5. The condition of good business is ....

Speaking

XV. Reproduce the main text using the words given in exercises I, II, III.

XVI. Practice talking about

Topic to discuss	Problem to mention
your intention to get into business	tell about your first steps
your decision to start up retail business	what expenditures should be taken into account?
your preference to realize your experience in manufacturing business	what planning should be observed by this type of business?
your decision to widen your business, to invest capitals into the foreign economy and start up a joint venture	what conditions is it necessary to bear in mind by planning such kind of business?