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Латыгина Базовый курс економики на англ.doc
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Speech and Discussion Ex.1. Define the following terms:

  • costs

  • assets

  • liabilities

Ex.2. Explain how a firm can define and calculate its costs. Ex.3. Discuss with your groupmates which is more important for a business – its assets or liabilities. Why?

Ex.4. Familiarize yourself with the following idioms. Consult your dictionary and translate the sentences into Ukrainian. Think of situations where you could use them.

  1. You’d better not rely on him. When it comes to business he’ll show the white feather.

  2. We were surprised at Jack turning up in our office. We saw him here once in a blue moon.

  3. Stop arguing. We’d better read the paper. Here it is put in black and white.

  4. It’s time we shut up shop.

  5. Reading between the lines of Miss Prout’s reference, I have the impression that her employer was not satisfied with her work, although he doesn’t actually say so.

Ex.5. Comment on the following:

“A small debt produces a debtor; a large one an enemy.” (Syrus)

lesson 2

Text: Raising Finance

Grammar: First Conditional

Terms to remember:

raise finance (v)

залучати фінанси

run costs (v)

керувати, управляти витратами

financial reserves

фінансові резерви

extra capital

додатковий капітал

premises

приміщення; будинок з прилеглими будівлями і ділянкою

working capital

оборотний капітал; оборотні фонди

preserve (v)

зберігати; підтримувати

cash flow

потік готівки

time-lag

відставання в часі; спізнення

retained profit

нерозподілений прибуток

borrowing

позика (коштів); кредит

grant

дотація; субсидія, грант; грошова допомога

loan

позика

tax

податок

distribute (v)

розподіляти; роздавати

lender

кредитор, позикодавець

leasing

лізинг, довгострокова оренда

hire purchase

купівля у розстрочку

debt factoring

борговий факторинг

share issue

share flotation

share offering

розміщення, випуск нових цінних паперів на вільний ринок

Raising Finance

All firms need capital to stay in business. Capital is the money that a company uses to operate and develop. As well as money for running costs such as wages, material and rent, companies need to have financial reserves. Extra capital may be needed to expand by buying new premises or developing new products. Firms may also need working capital to preserve cash flow through the business, for instance if there is tіme-lag between producing goods and services and getting paid for them.

There are four main ways of obtaining capital:

  • retained profit

  • borrowing

  • share issues

  • government grants and loans

Retained profit is the amount of profit after tax that directors of a business decide not to distribute to their shareholders, but to keep within the business.

Borrowing money usually accounts for 20-30 percent of firms’ capital. There are several types of lenders to business: commercial banks, leasing, hire purchase, debt factoring, the Stock Exchange.

When companies raise finance by selling shares for the first time they make share issues, share flotations or share offerings.

The government has a variety of schemes which give grants or cheap loans to firms for certain purposes.