C) Say in what activities financial managers are involved. B) Write down 3-5 questions about the texts

B) Write down 3-5 questions about the texts.

Ex. 8. a) Supply the articles where necessary.

Ex. 7. Work on vocabulary and grammar.

Ex. 6. Read the dialogue, translate the Russian remarks into English and act it out.

Ex. 5. Sum up the content of the dialogue. Use the phrases from Ex. 5 (Unit 1).

Foreigner. What funds are most typically generated at enterprises?

Russian: Для осуществления своей деятельности предприятию необходимы основные и оборотные фонды. Основные фонды – это здания, оборудование, машины. Они используются в хозяйственном процессе многократно. Оборотные фонды представляют собой запасы сырья, материалов, топлива, малоценных и быстроизнашивающихся предметов (objects of small value, quick-wearing objects).

F.: What resources can be used to acquire fixed and working capital?

R.: Предприятия могут использовать собственные и заемные средства.

F.: You mean own and borrowed capital, don't you?

R.: Да, собственный капитал формируется за счет выпуска акций, части прибыли от реализации продукции, амортизационных отчислений. А заемный капитал-это банковские ссуды, выпуск облигаций, прочие кредиты.

F.: As far as I know, enterprises create reserve funds, don't they?

R.: Да, образование резервного фонда является обязательным для акционерных обществ, кооперативов, предприятий с иностранными инвестициями. Он создается на случай прекращения деятельности предприятия и погашения его задолженности.

a) Study the key words of the unit in the dictionary at the back of this book:

assets, exchange rate, interest rate, management, return, value, flow;

b) Think of the verbs that are commonly used with:

funds, financing, assets, inventory, cash, merger, dividends, liquid assets, business, solvency, profitability, risk, return;

c) Think of the nouns that are most often used with:

to acquire, to finance, to borrow, to distribute, to hold, to measure, to manage;

d) Think of word combinations with these words:

assets, capital, to manage, liabilities, ratio, shares, cost, return, cash, value;

e) Match the verbs from (a) with the nouns from (b) below:

a) to maximize b) services

to perform company

to delegate cash

to acquire outlays

to reduce value

to generate cash flow

to evaluate production facilities

to expand calculation

to calculate authority

to adjust shareholder wealth

to manage inventories

a) Financial Management explains how... financial managers can help maximize the value of their firms by making better decisions in such areas as capital budgeting, choice of capital structure, and working capital management.

Financial managers also have... responsibility for deciding the credit terms under which customers may buy, how much inventory... firm should carry, how much cash to have on hand, what types of securities to issue, whether to acquire... other firms (merger analysis) and how much of the firm earnings to plough back in the business versus payout as dividends.

A successful firm usually has... rapid growth in sales, which requires investments in... plant, equipment and inventory. The financial manager must help decide on... specific assets to acquire and the best way to finance these investments. For example, should... firm finance with debt or equity, and if debt is used, should it be long-term or short-term?

In this connection, the financial manager must deal with... money and capital markets, where funds are raised and where the firm's securities are traded. As a consequence, financial managers of many large companies are responsible for working with investors (for example, mutual funds), bond rating agencies, stock holders, and the general financial community.

Financial managers, controllers in particular, are also responsible for financial accounting – preparation of the financial statements for... firm, cost accounting – preparation of... firm's operating budgets, and preparation of reports that the company must file with the various government (local, state and federal) agencies.

One of... major documents developed and controlled by financial managers is the Enterprise Financial Plan. It comprises... requirements for financial resources and the amounts currently available and expected in... future to meet them, i.e. the estimated revenues and expenditures of an enterprise within some future period of time. The enterprise financial plan determines whether... cumulative revenues exceed the cumulative outlays at every point of time during... plan period and whether the necessary capital structure is assured.

The enterprise financial plan is composed of... revenue plan,... expenditure plan and... financing or credit plan.

Words you may need:

financial accounting финансовый учет

cost accounting производственный учет

file v представлять какой-л. документ

cumulative adj совокупный

d) Explain how an enterprise can achieve its prime objective – profitable growth.

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