Text-based Exercises

Ex. 1 The text contains a number of common verb-noun partnerships (e.g. to obtain funds). Match up the verbs and nouns below to make such collocations which have been used in the text. Translate them into Russian.

To earn To begin To expand To start up To purchase To support To buy To use To retain To overdraw To obtain To aquire To grant To affect

loans a business essential assets financial success equipment profit capital account materials for production research and development finance a company money operation

Ex. 2 Which of the following adjectives from the text are used with the nouns given below? Consult the text if necessary.

a) Non-profit, micro, financial, internal, day-to day, long-term, credit, outstanding, long-standing, outside, short-term, bank, hire-purchase, final.

b) Installment, overdraft, terms, agencies, financing, cards, amount, relationship, management, capital, expenses, finance, organization, level.

Ex. 3 Find in the text all the word-combinations with the adjectives financial, internal, external, long-term, short-term, outstanding, long-standing, essential and translate them into Russian.

Ex.4 Find in the text the sentences with the following word-combinations, read them aloud and translate into Russian.

To be defined as the art and science of managing money

To be concerned with the process, institutions, markets and instruments

To be needed for salaries, advertising, insurance, other day-to-day expenses

To be essential for growth and expansion of a company

To be invested in developing new product lines and advertising techniques

To be obtained from within the business itself

To be obtained outside the business

To be provided by the proprietor

To be repaid in less than one year

Ex. 5 Choose the best alternative to complete the sentences.

1. (Finance or profit) can be defined as the art and science of managing money.

2. (Finance or income) can be defined at both macro and micro level.

3. (Money or profit) is one of the primary considerations when going into business.

4. (Capital or credit) is the money needed to start and continue operating a business.

5. (Capital or sound financial planning) is needed for salaries, advertising, insurance.

6. (Internal or external) finance is money obtained from within the business itself.

7. (External or internal) finance is money obtained from institutions outside the business.

8. (Short-term or long-term) capital is used to pay for items that last relatively short period of time.

9. (Short-term or long-term) financing is used to pay for assets that will last many years.

10. Using (retained profit or owner’s savings) is described as “ploughing back the profit”.

11. (Short-term or long-term) financing must be repaid in less than one year.

12. In case of (leasing or hire-purchase) ownership passes to the buyer when final installment is paid.

13. (A bill of exchange or finance) involves the securing of funds for all phases of business operations.

Ex.6 Join the beginnings and the ends to make meaningful statements reflecting the information from the text.

1. Finance can be defined ___________.

2. Finance at the macro level is _________.

3. Finance at the micro level is _________.

4. How a company obtains and uses its money will________.

5. Finance is ___________.

6. Finance can be classified into_________.

7. In financing business operation and expansion a business uses_________.

8. In the case of a very small fir, the necessary money can be provided by_______.

9. External financing can be__________.

10. Short-term financing must be repaid in___________.

11. Long-term financing must be repaid over___________.

12. In obtaining and using the capital, the decision made by managers affect________.

1. ______the overall financial success of a company.

2. ______less than one year.

3. ______over a long period of time.

4. ______short-term or long-term.

5. ______the proprietor and his family.

6. ______both short-term and long-term capital.

7. ______securing and utilizing capital to start up, operate and expand a company.

8. ______external or internal, short-term or long-term.

9. ______determine its success.

10. ______the study of financial planning, asset management and fund raising for firms and institutions.

11. ______the study of financial institutions and markets and how they operate within financial system.

12. ______macro level and micro level.

Ex. 7 Say whether the following statements are true or false. Correct the false ones.

1. Finance directly affects financial markets.

2. Finance is concerned with the process, institutions, markets, the instruments involved in the transfer of money among and between individuals, businesses and governments.

3. Seeking shareholders is one of the primary considerations when going into business.

4. The money needed to start and continue operating a business is known as assets.

5. How a new company obtains and uses money will determine its success.

6. A new business only needs capital to meet day-to-day expenses.

7. Financing is not important for growth and expansion of a company.

8. The most common examples of external finance are retained profit, sale of existing assets, owners’ savings.

9. The most common forms of internal finance are issues of shares (only possible for limited companies), bank loans, grants and subsidies from outside agencies.

10. In financing business operation, a company relies almost entirely on short-term financing.

11. Long-term and short-term financing may be acquired from outside sources.

12. How well a company manages its finances affects the overall success of its activity.

13. Most corporations get their long-term loans from a central bank.

Ex.8 Use the information from the text to complete the sentences. Use your own words as much as possible.

1. The field of finance is________.

2. Finance affects________.

3. Finance can be defined________.

4. Capital is _______.

5. To start up a business a company needs funds to __________.

6. It’s common to classify finance into ________.

7. Internal finance is money________.

8. External finance is money________.

9. In financing business operations and expansion, a business uses________.

10. A company uses short-term financing to________.

11. A company uses long-term financing to ________.

12. ________ is an important source of finance for large firms.

13. In the case of a very small firm, the necessary money can be provided_______.

14. Short-term financing must be repaid________, while long-term can be repaid________.

15. Types of short-term financing are the following:________.

16. Most corporations get their long-term loans from a commercial bank_________.

17. Finance involves___________.

18. In obtaining and using capital, the decisions made by managers ___________.

Ex.9 Fill the gaps with the following prepositions: over, by, from, to, for, on, in, with, without.

1. Finance is concerned_____ the process, institutions, markets and the instruments involved _____ the transfer of money among individuals, businesses, governments.

2. Finance can be defined _____ both macro and micro level.

3. _____ sufficient funds a company cannot begin operations.

4. Capital is needed _____ salaries, advertising, insurance and many other day-to-day expenses.

5. A firm may acquire some equipment _____ hire-purchase terms.

6. A firm pays the outstanding amount _____ installments _____ two or three years.

7. When the final installment is paid ownership does not pass _____ the buyer.

8. Most corporations get their long-term loans _____ a commercial bank, usually one with which the firm has developed a long-standing relationship.

9. Finance involves the securing of funds _____ all phases of business operations.

Ex. 10 Re-read the text and find the paragraphs which refer to: a) field of finance; b) definition of finance; c) capital; d) classification of finance.

Ex. 11 Summarize the last paragraphs listing the types of short-term financing.

Ex 12 Find in the text different definitions of the term “Finance”.

Ex. 13 Check yourself. If you are ready to answer all these questions, you know the basic notions and ideas of the topic.

1. How can finance be defined?

2. What is finance concerned with?

3. What determines a company’s success?

4. What is finance necessary for?

5. What groups of finance do you know?

6. What is the difference between external and internal finance?

7. What capital does a business use in financing business operations and expansion?

8. What does a company use short-term capital for?

9. What does a company use long-term financing for?

10. What is an important source of finance for large firms?

11. What is the difference between short-term and long-term financing?

12. What are the types of short-term financing?

13. What institutions do most corporations get their long-term loans from?

Ex.14 Be ready to speak about the following issues. (Credit Situations)

1. The definition of finance.

2. The key difference between finance at the macro and micro level.

3. The main types of finance.

4. Types of short-term financing.