Ex.6. Look at the words and phrases in the box. Match them with the correct definition from the list below

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:

s retained profit

s borrowing

s share issues

s 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.

Exercises in Word Study

Ex.1. Form adjectives from the following nouns:

finance, business, profit, government, commerce, work, reserve.

Ex.2. Give the English for:

залучати фінанси; управляти витратами; мати фінансові резерви; додатковий капітал, купувати нові приміщення; потік готівки, виробництво товарів та послуг; здобувати капітал; нерозподілений прибуток; позика коштів; випуск акцій; урядові субсидії; податок; акціонери; кредитор; фондова біржа.

Ex.3. Match words from list A with words from list B that have a similar meaning:

A	B
share flotation creditor hire purchase shareholder profit obtain preserve buy expand	stockholder instalment plan lender share offering purchase earnings enlarge keep get

Ex.4.Find suitable opposites to the following words:

borrowing, profit, to sell, cheap, lender.

Ex.5. Match the nouns in the left hand column with the verbs in the right hand column:

capital   loan     finance

arrange repay take out raise supply apply for borrow invest lend

1. money as a resource for business and other activities;

2. the capital from a business that is set aside from profit or from shares sold at higher than their original price;

3. the amount of money moving into and out of a business at a particular point in time;

4. part of the annual profit that is not paid out to shareholders as dividend, but reinvested in the company;

5. receiving money from a person, a bank, or other financial organization and agreeing to pay it back later, usually with interest;

6. money that has been borrowed and has to be paid back;

7. a person or an organization that lends money and charges interest on the repayments;

8. a way of buying goods where the buyer takes the goods and pays for them in regular instalments over a fixed period of time;

9. offering company shares for sale to the public or on a stock exchange for the first time;

10. the amount of short-term capital that a business has available to meet the day-to-day cash requirements of its operations;

11. money given for a specific purpose;

12. buildings and the land they occupy.

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