Planning a new business

fi* Before you listen to Dialogue No 1 use Glossary to match the words below with their definitions.

1. external finance a.

2. internal finance

3. to take charge b. over property

4. to exploit c.

5. short-term loan

6. share capital

7. collateral / security

8. leaseback

9- interest d.

10. to create

11. reserves e.

12. to raise money

_f.

_h.

value of the assets of a compa­ny held as shares an amount of money kept for future use

an agreement in which you continue to use your property after you sell it, while making regular payments to the new owner

to make something exist that did not exist before money that a person or institu­tion such as a bank charges you for lending you money money, provided to run a busi­ness that comes from within the firm

an amount of money that you borrow from a bank for a short period of time

money, provided to run a busi­ness that comes from outside the firm

i. to borrow from a bank, get a loan for some purpose

j. something such as property or other goods used to provide a guarantee for a loan

k. to obtain a legal document by a lender confirming the owner­ship of the property if the bor­rower becomes bankrupt

1. to use something to make a profit

7 Listen to Dialogue No 1 between two speakers and answer the questions below. Then listen again and check your answers.

1. What are the speakers discussing?

2. What does the first speaker need external finance for?

3. What does the second speaker suggest for raising money?

4. What can the first speaker offer as a collateral?

5. Do you think the first speaker stands a chance of get­ting a short-term loan?

6. What does the saying "a bird in the hand is worth two in the bush" mean? Can you find Russian equivalents of this saying?

g* Complete the text using the words from the box. There are two words which you don't need to use.

leaseback, create, reserves, finance, shareholders, I property, low-interest loans, share capital, grants, col­lateral, assets, take a charge over, exploit, internal

When an established company needs to (1) fur- ther expansion, it can often (2) its own

(3) resources. One way to do this is to use profit

from previous years as capital; but Hans has not had time to

build up any (4) . Another way is to sell off some of

the firm's (5) for cash. Companies sometimes sell

their own factories or offices on condition of a (6)

from the buyer. If the company uses its assets as (7)

for a bank loan, the bank will normally (8) the

(9) -

New businesses can often get government (10) ,

particularly if they are located in development areas. They

also may get (11) or low business rates for a fixed

number of years, or assistance with finding and training staff. In return, the company will (12) new jobs.

9 * Before you listen to Dialogue No 2 match the expressions in the left column with their translation in the right one.

1. cash flow forecast а. информация для акционеров

2. shareholders' b. долгосрочная цель information с. прогноз движения денежной

3. short-term objective наличности

4. long-term objective d. краткосрочная цель

5. raise money е. прогноз прибылей и убытков

6. stand a good chance f. прибыль на инвестирован-

7. return on ный капитал investment g. иметь хорошие шансы

8. venture capital h. получить ссуду на что-л.

9. profit and loss i. бухгалтерский баланс forecast j. вложение капитала с риском

10. balance sheet

Ю Listen to Dialogue No 2 between two speakers and answer the questions below. Then listen again and check your answers.

1. What are the speakers discussing?

2. What is the main purpose of a business plan?

3. Should the plan be optimistic or pessimistic?

4. What kind of assistance is provided by finance special­ists?

5. What information should be included in the financial part of a business plan?

6. What does the saying "look before you leap" mean? Can you find Russian equivalents of this saying?

Unit 3. READING COMPREHENSION