Английский язык для бизнесмена. Антонов О. И. Английский язык для бизнесмена
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Text Corporations need financing for the purchase of assets and the payment of expenses. The corporations can issue shares in exchange for money or property. Sometimes it is called as equity funding. The holders of the shares form the ownership of the company. Each share is represented by a stock certificate, which is negotiable. It means that one can buy and sell it. The value of a share is determined by the net assets divided by the total number of shares outstanding. The value of the share also depends on the success of the company. The greater the success, the more value the shares have. A corporation can also get capital by borrowing. It is called debt funding. If a corporation borrows money, they give notes or bonds. They are also negotiable. But the interest has to be paid out whether business is profitable or not. When running the corporation, management must consider both the outflow and inflow of capital. The outflow is formed by the purchase of inventory and supplies, payment of salaries. The inflow is formed by the sale of goods and services. In the long run the inflow must be greater than the outflow. It results in a profit. In addition, a company must deduct its costs, expenses, losses on bad debts, interest on borrowed capital and other items. It helps to determine if the financial management has been profitable. The amount of risk involved is also an important factor. It determines the fund raising and it shows if a particular corporation is a good investment. Active Vocabulary purchase- покупка, купля, 45 приобретение payment of expenses- оплата расходов property- собственность, имущество equity funding- акционерный (долевой) способ образования денежного фонда предприятия debt funding- образование денежного фонда предприятия с помощью займа holders of the shares- держатели акций stock certificate- сертификат акций negotiable- оборотный, могущий быть переуступленным, купленным, проданным net assets- стоимость имущества за вычетом обязательств bond- долговое обязательство, облигация note- зд. долговая расписка interest- доля, фиксированный процент to pay out- выплачивать to run a corporation- руководить корпорацией inflow- приток (зд. денег) outflow- утечка (зд. денег) inventory- материально-производственные запасы, инвентарь supplies- ресурсы debt- долг goods- товары Comprehension Questions 1. Why do all corporations need financing? 2. What does equity funding mean? 3. What does debt funding mean? 4. How is the value of a share determined? 5. What activities produce an inflow and outflow of capital? 6. What can happen if an enterprise has a greater outflow of capital than an inflow? 7. Why is the risk involved an important factor in determining fund raising? 46 Vocabulary Practice Choose the necessary word and put it in the sentence. … funding is a financing formed by I borrowing. I 1 equity They have borrowed much money and I they have to pay a big … . I 2 negotiable Financing by shares is called … funding. I 3 interest That is a very profitable deal, for that I purpose we need extra … . I 4 inventory You can sell your shares and … . I 5 funding They are … I 6 inflow The current assets of a company I usually include cash and … . I 7 bond As a result of this deal we’ll have I greater … than outflow. I 8 debt Dialogue Mary It’ s so nice to see you, Frank. Sorry, I couldn’t come to your office today. Frank Never mind. Have a seat. Let’ s start by having some coffee. Later. Mary So Frank.. I guess it might be right time for me to invest in that computer company. As my stockbroker, what can you suggest? Frank I am sure they are doing extremely well and they would welcome your investment. Mary But why do they need my investment if they are doing so well? Frank O.K. I think I should explain you a little about a corporate finance. Mary Go ahead. If it concerns my money I am always interested. Frank If a corporate enterprise wants to expand it needs financing. Mary You are right. Frank So there are two basic types of financing: equity and debt. Mary What’s the difference between them? Frank If the money is supplied by the owners of a business it is called equity funding. And the use of money supplied by loans is called debt funding. Mary So as investor, what am I? Frank Well, as an investor you become a partial owner of a business and receive equity. You get shares or 47 certificates of common stock which represent your portion of ownership. Mary You did right buying the stock for me. By the way, are there any documents which show the financial state of the company? Frank Oh yes. You’ve just reminded me. I’ve brought a copy of the company's Annual Report for you to look over. You should read it very carefully. And if you have something to ask do it, please. Mary Thanks a lot, Frank. I will. Does this company pay dividends on its stock? Frank Yes. In fact, I studied their Annual Report and I can tell that they have good management. Their business is doing very well, the value of their stock has been rising. It can be an excellent long-term investment, I am sure. Mary But if I want to sell my shares very soon? Prank No problem. Undoubtedly you can make a profit on the sale. But it seems to me you'll want to keep this company in your portfolio. Mary Thank you for your advice. You are wise as usual. Frank Well, my advice now is to study the company's Annual Report. You need several days for that. Then we'll meet and talk again. Active Vocabulary a stockbroker- биржевой маклер if it concerns smth- если речь идет о чем-либо loan- заем, ссуда partial owner- совладелец Annual Report- годовой отчет to pay dividends- платить дивиденды long-term investment- долгосрочный вклад to make a profit on the sale- получить прибыль при продаже Vocabulary Exercises Exercise 1. Make up a sentence according to the model. Model: How should the company pay the expenses? (borrow from the government. The company should, pay the expenses by borrowing from the government. 1. How can we form an equity funding? /issue shares/. 48 2. How can a business sell more shares of stock? /offer a dividend/. 3. How should we know about the financial state of the company? /look over the Annual Report/. 4. How should he invest his savings?/buy common stock/. 5. How should they make people buy their bonds? /increase the interest/. 6. How can this company make a profit? /raise investment capital/. Exercise 2. Notice the sentence from the dialogue. You need several days for that Use this structure to respond the following sentences. Model: It takes a month to sell the bonds. You need a month to sell the bonds. 1. It will take a half of the year to pay off the debts. 2. It takes her several days to count up net assets. 3. It won't take the company much time to repay the loan. 4. It will take him the rest of his life to learn how to run the corporation. 5. It takes them two days to sell the goods. 6. It will take them much time to decrease the outflow. 7. It will take him a month to raise the capital. Exercise 3. Answer the questions. 1. What kind of funding is preferable: equity or debt? 2. What shares of what enterprises of your town would you buy? Explain why. 3. Imagine that your business is going to get capital funds by borrowing. What bond interest would you charge? Explain why. 4. What should you do to produce more inflow of capital? 5. How can you calculate the net assets of your enterprise? 6. What traits of character does a stockbroker need? Exercise 4. Translate from Russian into English. 1. Наше предприятие нуждается в денежных фондах для покупки оборудования. 2. Я предпочитаю акционерный способ образования денежного фонда предприятия. Он привлекает большее количество капитала. 3. Акции и облигации могут быть переуступлены, куплены, проданы. 4. Я хочу купить десятипроцентные облигации. 5. Мы намерены выплатить все долги к началу финансового года. 49 6. Ты получишь хорошую прибыль при продаже этих товаров. 7. Он является совладельцем компании SONY. 8. Покупка акций этой компании - хороший долгосрочный вклад. 9. Если речь идет о моих деньгах, я изучу годовой отчет компании. 4. The shop was attracting many customers, when it was supplied by famous companies. 5. They were investing money in this business for two years. Grammar Exercises Exercise 1. Make the sentences negative. Model: This bank was making loans to corporations during two months last year. This bank wasn't making loans to corporations during two months last year. 1. They were discussing the possibility of the purchase of inventory from 5 till 6 p.m. yesterday. 2. He was running the corporation during two months. 3. During our last classes the lecturer was speaking about equity funding. 4. Our accountant was calculating assets liabilities and net worth two days before yesterday. 5. They were electing the new Boad of Directors for two bours at their annual meeting. Exercise 2. Put up four questions of different types (general, special, disjunctive, alternative) to each sentence. Model: The company was doing extremely well when he was the manager. 1. Was the company doing extremely well when he was the manager? 2. When was the company doing extremely well? 3. The company was doing extremely well when he was the manager, wasn't it? 4. Was the company doing well or badly when he was the manager of the company? 1. I was examining the Annual Report when Mr. Stevenson called on me. 2. She was making a profit on the sale of the goods till she could get them. 3. He was holding a position of a stockbroker when I met him last year. 50 lessons BANKS AND BUSINESS Text Banks are different in different countries. Let’ s speak about the banks in the United States of America. There, commercial banks are classified into two main groups. First, there are national banks. They are charted and supervised by the Federal Government. Secondly, there are state banks. They are charted and supervised by the state in which they are operating All commercial banks can make loans to borrowers. Major commercial banks in such cities as Tokyo, Paris, Rio cooperate with each other. In this way they finance imports and exports between countries. An importer buys merchandise from another country using the currency of that country. For that purpose he buys this currency from the foreign exchange department of his bank. And in the same way if an exporter receives foreign money from sales to other countries, he sells this currency to his bank. By this method the currency of any country can usually be exchanged. Active Vocabulary commercial bank- коммерческий банк, national bank- национальный банк to charter- учреждать, создавать to supervise- заведовать, контролировать state bank- государственный банк merchandise- товары currency- валюта, деньги foreign exchange department- отдел обмена валюты to exchange currency- обменивать валюту 52 Comprehension Questions 1. What do all commercial banks do? 2. What kinds of commercial banks in the USA do you know? What are they called? 3. Who supervises the operations of national bank? 4. What kind of currency does an importer generally use en he buys goods from another country? 5. What do you know about the "international exchange"? 6. What is the currency of this country called? 7. What is the exchange rate between your currency and the icy of the USA and Germany? How can you find it out if don't know it? Vocabulary Practice Exercise 1. Choose the necessary word and put it in the sentence. 1. Federal government..... and..... all I 1 merchandise national banks. I 2 currency 2. International cooperation between I banks makes it possible..... imports and I exports. I 3 commercial 3. It is possible to convert American I dollars to Swiss francs in..... department. I 4 foreign exchange 4. The..... of Germany is the mark. I 5 to finance 5. All..... banks make loans to borrowers. I 6 to supervise 6. If the importer buys..... from another I country he will pay for it in the currency I of this country. I 7 to charter Dialogue (A banker's office in New York City. Mr. Smith, a Vice President, is speaking to Bill Wilson). Smith O.K. Bill. As a secretary you ought to know certain things about banking Bill That's what I want. I hope to make my career in banking. Smith And what bank services are you familiar with? Bill Oh, let me see. I am familiar with checking and savings accounts, safety deposit boxes, insurance 53 and things like that. Smith It is something. Bill But I don't have a clear idea of the services which banks offer to business. Smith O.K. Let's discuss it then. In fact it is more directly concerned with what passes over my desk. Bill I think businesses come to the banks for loans. Smith You are right. Banks make loans to corporations, to organizations, individuals and to small companies. For this service, we always charge interest. Bill But how can a bank decide whether a business should receive a loan. Smith First of all we request a financial statement. It shows what the company has in inventory, accounts receivable and other assets and liabilities. Profit and loss statement shows the company's income and expenses. Bill In other words you look over the financial situation of a business. Smith Exactly. If the company is eligible for a loan, it may choose a long-term loan or a short-term loan. Bill I see. And how much interest does the bank charge on these loans? Smith It can be different. We have so-called prime-rate, that is the lowest interest rate available at the particular time. Only preferred customers can have it. Bill Who decides on prime-rate then? Smith Major lending banks do. Bill Oh, I must know that. And very often I hear the term "a line of credit". I have a vague idea what it is. Smith A line of credit is the maximum amount of money that a company can borrow from a bank. This top amount of customer's credit is based on the profits and earnings of a business. Bill Well. Then it is very important to have a good line of credit, isn't it? Smith Sure. A bank also issues letters of credit. Such letter says that its holder can borrow up a certain sum of money. Or a bank can also issue a letter of credit for a person who goes to the other country where another bank is involved. Then there is the credit reference letter which recommends a company to its suppliers, and well -I could go on all morning. Bill Thank you. It's very useful information. 54 Smith O.K. We can pass on to a more complicated subject. That is tax service. Active Vocabulary banking- банковское дело to make a career in smth.- сделать карьеру в чем-либо bank services- банковские услуги checking account- чековый счет savings account- сберегательный счет с установленным процентом safety deposit box- сейф для депозитов, предоставляемый частным лицам в банке insurance- страхование to make a loan to smb.- давать заем кому-либо to be eligible for a loan- подходящий для займа (т.е. признаваемый платежеспособным) long-term loan- долгосрочный заем short-term loan- краткосрочный заем prime-rate- наименьший процент со ссуды, установленный в определенное время и в определенном месте preferred customer- привилегированный клиент to be available- наличный, имеющийся в распоряжении line of credit- кредитный лимит to borrow- занимать letter of credit- кредитное письмо, аккредитив credit reference letter- рекомендательное кредитное письмо |