- •Міністерство освіти і науки україни
- •Методичні рекомендації
- •Вступ до методичних рекомендацій
- •Unit 1. What is business? Forms of business.
- •Read and memorize the following words and word-combinations:
- •Background Information
- •Franchises.
- •Text: Small Business Categories
- •Unit 2. Corporations. Advantages and disadvantages of corporations.
- •I.Read and memorize the following words:
- •Advantages of Corporations.
- •Disadvantages of corporations
- •Unit 3 Business finance
- •1. Vocabulary
- •II Reading
- •Why firms need capital?
- •III. Language
- •IV. Text understanding
- •V. Oral practice:
- •Sources of funds
- •VI. Comprehension.
- •Listen to the text b. Find answers for the questions:
- •Sources of funds
- •Finance
- •VI. Reading and comprehension.
- •13. Read the text c. Define the main points of the text and summarize them. Advise your friend how to get a credit. What a Banker Wants To Know
- •The 3 Ts of a Good Banking Relationship
- •VII. Oral practice.
- •Role play the following situations:
- •Unit 4 Developing budgets
- •1. Vocabulary
- •Adjustments expenses revealing compiled revenues
- •II Reading
- •Developing budgets
- •III. Comprehension.
- •Text b How the State Budget of Ukraine is created
- •IV. Oral practice.
- •The largest national budgets (2004)*
- •Discuss the topics with your group-mates:
- •V. Home task
- •International financial organizations.
- •International Monetory Fund.
- •Read and memorize the following words:
- •International Monetary Fund.
- •History.
- •Imf's anatomy
- •Operations
- •2. Which of the following is true:
- •World Bank
- •Список рекомендованої літератури
VII. Oral practice.
Role play the following situations:
Situation 1. Your friend wants to start his own business. He asks your advise about sources of capital.
You explain him how to act and what is the best way for starting business. Advise him one of the bank loans.
Situation 2. You decided to start your own business in the sphere of business services. You go to the bank or any investment institution. Persuade executives of those institutions that your business is worth investing. Discuss the form of the credit.
Unit 4 Developing budgets
1. Vocabulary
Exercise 1. Study the vocabulary:
Revenue прибуток, надходження
expenses витрати
expectations очікування
to compile укладати
financial forecast фінансовий прогноз
short-term короткостроковий
long-term довгостроковий
operating budget робочий бюджет
capital budget капітальний бюджет
сash budget грошовий бюджет
master budget зведений бюджет
to highlight виявляти
assets активи
to anticipate передбачати
disbursement сплата, розрахунок
deviation відхилення
to reveal відкривати, знаходити
adjustment корекція, зміна
Exercise 2. Give Ukrainian equivalents:
Expectations
capital budget
assets
to anticipate
disbursement
master budget
deviation
сash budget
adjustment
operating budget
financial forecast
to reveal
Exercise 3. Give English equivalents:
сплата, розрахунок
передбачати
грошовий бюджет
активи
зведений бюджет
відхилення
укладати
капітальний бюджет
витрати
короткостроковий
корекція
робочий бюджет
довгостроковий
очікування
прибуток
Exercise 4. Replace the underlined word in each sentence with another word-synonym:
Money must be allocated to various costs needed to operate the business.
Different types of budgets are created by the firm.
Financial control concerns with discovering certain deviations of a financial plan and making proper corrections.
An operating budget reflects projected returns of a firm.
Adjustments expenses revealing compiled revenues
II Reading
Exercise5. Read text A and translate it
Developing budgets
A budget is a financial plan. Specifically, a budget reflects management`s expectations for revenues and, based on those financial expectations, allocates the use of specific resources throughout the firm. A budget becomes the primary basis and guide for financial operations in the firm.
Most firms compile yearly budgets from short-term and long-term financial forecasts. There are usually several types of budgets to be established in the firm:
An operating budget
A capital budget
A cash budget
A master budget
An operating budget is the projection of money allocations to various expenses needed to run or operate the business, given projected revenues. How much the firm will spend on supplies, rent, advertising, salaries etc. is determined in the operating budget.
A capital budget highlights the firm`s spending plans for assets whose returns are expected to occur over an extended period of time (more than one year). The capital budget concerns with the purchase of such assets as property, buildings and equipment.
A cash budget is the projected cash balance at the end of a given period (for example monthly). Cash budgets can help managers to anticipate borrowing, debt repayment, cash disbursements, short-term investment expectations. Cash budgets are often the last budgets to be prepared.
A master budget ties in all the above-mentioned budgets and summarizes the proposed financial activities of the firm.
Clearly, financial planning plays an important role in the operations of the firm. This planning often determines what long-term investment to make, when specific funds will be needed, and how the funds will be generated. Once a company has projected its short-term and long-term financial needs and established budgets to show how funds will be allocated, the final step is to establish financial control.
Financial control means the actual revenues and expenses are periodically reviewed and compared with projections. Deviations can thus be determined and corrective action taken. Such controls help to reveal which accounts, departments and which people are varying from the financial plans. As a result some financial adjustment to the plan may be made.
Exercise 6. Translate the sentences with Infinitive. Define the functions:
There are usually several types of budgets to be established in the firm.
An operating budget is the projection of money allocations to various expenses needed to run or operate the business.
Once a company has established budgets to show how funds will be allocated, the final step is to establish financial control.
Cash budgets are often the last budgets to be prepared.
Exercise 7. Match the word combinations in column A with their equivalents in column B:
1. Debt repayment a).мобілізувати фонди
2. actual revenues b).виплати боргу
3. to establish control c).плани витрат на активи
4. money allocations d). першооснова
5. management`s expectations e). передбачений грошовиий баланс
6. primary basis f). встановлювати контроль
7. projected cash balance g). наявний, реальний прибуток
8. spending plans for assets h). розподіл коштів
9. investment expectations I). очікування управління
10. to generate funds j). інвестиційні плани (очікування)
Exercise 8. Find in the text and translate a passage describing:
The definition of a budget;
4 types of budgets and their peculiarities;
financial control.
Exercise 9. Agree or disagree with the statements:
A budget is the financial statement that reports the financial condition of a firm at a specific time.
Short-term and long-term forecasts are the basis for developing budgets.
An operating budget is the projection of money allocations to various costs needed to operate the business.
The capital budget concerns with the spending on advertising, rent and wages.
Cash budgets are always the first budgets to be prepared by the firm.
A master budget is a combination and a summary of all types of budgets.
Financial planning doesn`t concern with determining what long-term investment to make and how the funds will be generated.
Financial control helps to reveal the deviations from the financial plans.
Exercise 10. Answer the questions:
What is a budget? What does it reflect?
What types of budgets are compiled by the firm? What forecasts are they based on?
What is the essence of each type?
What is the role of financial planning for the company?
What does a financial control mean?
Exercise 11. Tell about developing budgets and their types. Use questions to Ex. 10 as a plan.