The Need for having funds available

Text 15

Retell the text.

Put special questions to the text.

Make up sentences with the following word combinations.

Give the Definitions.

Complete the sentences.

Match the following word combinations.

Translate the following words and word combinations into Russian.

Payment, function, standard of deferred payment, exchange, in exchange for money, barter economy, trading, seller, buyer, standard of value, monetary unit, unit of account, price, money value.

feature of money	мерило ценности
standard of value	обменивать товары
exchange goods	платеж в рассрочку
monetary unit	денежная единица
deferred payment	особенность денег
unit of account	единица счета
money value	денежная ценность

1) Money, the medium of exchange, is used in….2) Money is the medium through which people….3) Trading is very expensive in….4) Society considers it convenient to use a monetary unit…5) Money serves as a standard of deferred payment or…

Money, barter economy, different goods and services, satisfactory swaps,

The means of payment, satisfactory swaps, bearing bank accounts, money value.

Sound financial management is essential to businesses because the need for operat­ing funds never seems to cease. Also, like our personal financial needs, the capital needs of a business change over time. For example, as a small business growth, its financial requirements shift considerably. (Remember the example of Parsley Pa­tch.) The same is true with large corporations such as AT&T and PepsiCo. As they venture into new product areas or markets, their capital needs grow and intensify. It's safe to say that different firms are in need of available funds for a variety of reasons. However, in virtually all organizations, funds must be available to finance specific operational needs. Let's take a look at the financial needs that affect the operations of both the smallest and the largest of business enterprises.

Financing Daily Operations

If workers are scheduled to be paid on Friday, they don't expect to have to wait until Monday for their paychecks. If tax payments are due on the 15th of the month, the government anticipates the money will be there on time. If the interest payment on a business loan is due on the 30th, the lender doesn't mean the 1st of the next month. As you can see, funds have to be available to meet the daily operational costs of the business. The challenge of sound financial management is to see that funds are available to meet these daily cash expenditures without compromising the investment potential of the firm's money.

As you may or may not know, money has a time value. In other words, someone offered to give you $200 today or $200 one year from today, you would benefit by taking the $200 today. Why? A very simple reason. You could start collecting interest on the $200 you receive today and over the course of a year's time, your money would grow. In business, the interest gained on the firm's investments is important in maximizing the profit the firm will gain. For this reason, financial managers often try to keep cash expenditures at a minimum free funds for investment in interest-bearing accounts.

The finance managers maximize the investment potential of the firm's funds. As you might expect, efficient cash management particularly important to small firms in conducting their daily operations.

1. Find Russian equivalents for the following words:

Management, essential, cease, change, venture, enterprise, payment, paycheck, anticipate, cash, expenditures, potential, benefit, receive, reason, course, important, bill, collection, procedure, discount, account, maximizing, gain, potential, expect, daily, efficient.

Дата добавления: 2014-10-22