Download 1 REVISION 2 I WHAT ARE THE OPPOSITES? income

1
REVISION 2
I WHAT ARE THE OPPOSITES?
1. income – e___________
2. fixed assets – c___________ assets
3. tangible assets – i_____________ assets
4. creditors- d______________
5. credit- d___________
6. sources of funds – a_____________ of funds
7. long-term liabilities- c___________ liabilities
8. debt financing - e_________ financing
9. profit - l_________
10. expenditure- i__________
11. assets - l____________
12. solvent - i____________
13. net – g________
14. inflow – o_____________
15. deficit – s______________
16. to borrow – to l_____________
II WHAT ARE THE SYNONYMS?
1. shareholder (GB)- s_____________(US)
2. public limited company (GB) – l_________ company (US)
3. quoted businesses (GB) – l________ businesses (US)
4. gilt-edged securities (GB) – T_________ bonds (US)
5. par value - f_________ value
6. total sales –t____________
7. profit and loss account – i____________ statement (US)
8. accounts payable – c_______________
9. accounts receivable – d______________
10. creditors – accounts p________________ (US)
11. debtors – accounts r_______________ (US)
14. inventory – s___________
15. cash inflow – s___________ of f________
16. cash outflow – a______________ of f_________
17.costs – e_____________
18. overheads – f___________ c________
19. revenue – t_____________
20. income statement –p__________ and l________ _______
21. earning-i_____________
22. net profit – b___________ l_________
III FILL IN THE MISSING WORD.
1. The Board has decided not to pay out dividends but to retain p__________.
1
2
2. A successful business can apply to a s_______ e_________ to become a public
limited company.
3. The difference between the sales revenue and cost of sales is g_________
p______.
4. L__________ means that a company has enough cash or assets that can easily be
turned into cash to cover its liabilities.
5. C_______ o________ include purchases of fixed and financial assets, running
expenses, interest payments, taxation and payment of dividends.
6. Listed companies have to a__________ their financial results at least once a year.
7. The assets must equal claims on the assets which means that the right and the left
side of the account must b___________.
8. Bookkeepers r_________ all the financial transactions in a company.
9. If there is a cash s________ there are more inflows than outflows.
10. When a limited company goes bankrupt its a________ are liquidated.
11. Companies wishing to apply to a stock exchange must fulfill many
r_____________ .
12. Companies use an investment bank to find buyers and to underwrite the s_____
i______.
13. Stock prices rise and fall depending on s_________ and d____________.
14. Newer and smaller companies join over-the counter m____________.
15. The market may be a better judge of the firm’s c____________ than a bank.
16. P_________ is the contract between the i_________ and the i__________, giving
full details of c________ and c_____________. (Insurance)
17. In case of an accident you file a c____________ to the insurance company.
18. Offering shares to the public for the first time is called a f_____________ .
19. Stock markets are measured by stock i___________.
20. A period during which most stock rise is called a b_____ m_________.
21. For companies, the advantage of d_______ financing over e________ financing is
that b_____ interest is tax d____________.
22. Banks and brokerage companies act as market m_________, quoting b_____ and
o________ prices for bonds.
23. The y_______ of a bond depends on its purchase price and on its c__________.
24. Acquiring a competitor in the same field of activity (h___________
i_____________) gives a company a larger market s________ and reduces
c_____________.
25. B_____________ integration involves acquiring suppliers of r_____ materials or
c____________.
26. A r_______ involves buying as many of a company’s stocks as possible on the
stock marketA t_____________ b_______ , a public offer to a company’s
stockholders to buy their stocks at a certain price.
27. Raiders can borrow money, usually by issuing bonds (l_________ means largely
financed by borrowed capital) and buy the companies.
28. The majority of bonds have a fixed rate of i_________ .
29. F___________ E__________ R________ is determined by supply and demand.
2
3
30. In m___________ e___________ r________ governments and central banks
influence the level of their currency when necessary.
31. Gold c_______________ ended in the early 1970s.
32. Another verb for fixing exchange rates against something else is to p_______
them.
33. Increasing the value of an otherwise fixed exchange rate is called r____________.
34. A currency can appreciate if lots s_____________ buy it.
35. If the economy is in recession, the central bank should s_____________ it.
36. If the economy is o____________ , the central bank should cool it.
37. If the economy needs to be stimulated, the central bank should l________ the
reserve requirement, d_______ the discount rate, or b________ bonds on the open
market.
38. If the economy needs to be cooled, the central bank should r_______ the reserve
requirement, i__________ the discount rate, or s__________ bonds on the open
market.
IV CHOOSE THE APPROPRIATE VERB IN THESE SENTNECES.
1. The income statement will show whether a company will make/do a profit.
2. Companies which want to rise/raise more money can issue stocks.
3. Bonds are repaid/paid at 100% when they mature, unless the borrower is
insolvent
4. When does the bond mature/redeem?
5. After shares have been issued they can be traded on the secondary market at the
stock exchange on which the company is selected/quoted.
6. They are planning to strip/split up the assets of that poorly- performing
company.
7. Last year, profit before tax rose/raised by 5%.
8. We tried to contract/cut costs by canceling subsidized lunches.
9. “Debtors” is an item on the balance sheet which includes sums of money
owed/owned by customers for goods and services purchased on credit.
10. The P&L account shows the profit earned/charged and losses made over a period
of time.
11. Assets include all that a business owns/owes.
12. Changes in interest rate also effect/affect the market prices of bonds.
13. The purpose of taking/keeping accounts is to keep track of all transactions a
company may be involved
V WHAT IS DEFINED?
1. Adjective describing a liability which has been incurred but not yet invoiced to
the company.
2. The economic theory that government monetary and fiscal policy should stimulate
business activity and increase employment in recession.
3. Assets whose value can only be turned into cash with difficulty (e.g. reputation,
patents.)
3
4
4. It offers the buyer the right, but not the obligation to buy or sell an asset at an
agreed upon price, either during a certain period of time, or on a specific date.
5. A type of market where financial instruments are traded directly between two
parties.
6. A yearly meeting to which companies have to invite all shareholders.
7. The amount of interest paid by a bond.
8. To fail to repay a loan at the scheduled time, or to fail to respect a contract.
9. The person who has an insurance policy, also called the insurance holder.
10. A share in the annual profits of a limited company, paid to shareholders.
11. To issue shares (offer them for sale to the public) for the first time.
12. Mergers or takeovers among companies producing the same type of goods or
services.
13. Buying a company’s shares with money borrowed on the security of the
company’s assets.
14. Responsibility for debts up to the value of the company’s share capital.
15. Companies whose shares are traded on a stock exchange.
16. The date when the principal of a redeemable security (a loan, a bond, etc.)
becomes repayable.
17. The highest point on the business cycle; to reach the highest point.
18. Person or a company that tries to obtain control of another company by buying its
shares on the stock market.
19. Salable papers, traded on stock exchanges, that yield an income (dividend,
interest, etc.).
20. The person who evaluates the risk and exposures of potential clients. S/he decides
how much coverage the client should receive, how much they should pay for it, or
whether even to accept the risk and insure them.
21. Dealing in a commodity of financial asset in the hope of making a profit on
changes in market values.
22. A person who sells shares hoping to buy them back at a lower price before the
next settlement day.
23. The person who evaluates the risk and exposures of potential clients. S/he decides
how much coverage the client should receive, how much they should pay for it, or
whether even to accept the risk and insure them.
24. The written contract between the insured and the insurer, giving full details of
cover.
25. The attempt to gain control of a company by offering to buy its shares at a higher
price than the market price during a limited period.
26. The popular name for the New York Stock Exchange, or for all the financial
institutions in and around this street.
27. The rate of income an investor receives from a security, to produce or provide
income.
28. The total market value of all goods and services produced in a country during a
given period.
29. Government actions concerning taxation and public expenditure.
4
5
30. Someone who arranges policies offered by many different companies.
31. The price of insurance.
32. The person charged with evaluating an insurance claim to determine the insurance
company's liability under the terms of an owner's policy.
VI TRANSLATE THE FOLLOWING ITALICISED WORDS REFERRING TO
THE UNIT ON THE BUSINESS CYCLE.
1. Economic activities se usporavaju.
2. Višak zaliha je used up.
3. Fewer narudžbi se naručuje.
4. Firme smanjuju on output.
5. Stopa nezaposlenosti goes up.
6. Businesses reduce broj ljudi na platnom spisku.
7. Finally ciklus dosiže najnižu točku.
VII WRITE DOWN A SUITABLE PARTNERSHIP FOR THE FOLLOWING
WORDS:
underwrite
fire
Issue
A loss
Protect against
A claim
Quote
A policy
Pay
A premium
Provide
For an insurance
File
A cover
Suffer
Theft
Insure against
The risk
Apply for
A premium
5
6
keep
record
value
Borrow
Deduct
Issue
Finance
Raise
Go
Pay
Pay
Receive
use
Repay
Sell
Underwrite
quote
offer
distribute
calculate
liabilities
bid
transactions
The stock issue
Interest payment
Money
An investment bank
Profit
records
prices
Activities
A higher return
Tax
Assets
public
Dividends
Principal
Shares
Bonds
income
VIII FILL IN THE SUITABLE PREPOSITION.
1. They have a limited liability business so they are only liable _____the amount
invested.
2. There are special banks which specialize _____ venture capital.
3. In futures contracts parties agree to purchase securities _____ an agreed price
____a certain day.
4. Holding a share entitles owners _____ vote ____a company’s AGM.
5. Sales increased _____ 5% .
6. Gold slipped back a little ____ $385.
7. If they can’t repay debts the company will go ______liquidation.
8. You can sell shares _____the secondary market at above or _________ their par
value.
9. The share price is quoted _____the stock exchange.
10. Bond investors lend money to businesses____ a lower interest rate than banks.
11. Companies wishing to raise more finance can issue bonds _____ the primary
market.
12. Companies can deduct interest payments on bonds________ profits.
13. American conglomerates in the 1980s consisted ____ too many companies so
they were split ____ and resold _____ a profit.
14. They recorded an increase ______ 6% ______ 2010.
6
7
15. Net assets consist _____ share capital, share premium and reserves.
IX WHICH NOUN COLLOCATES WITH ALL THE VERBS IN THE GROUP?
1. run up/incur/ repay a ____________
2. record/make/deduct a ___________
3. quote/ pay/agree on a ______________
4. list/quote/set up a ___________
5. issue/trade/hold a _________
6. borrow/lend/raise __________
X FILL IN THE GAPS WITH A SUITABLE WORD.
1. Last year sales stood _______ $400 m.
2. There was a sharp rise ____ sales between February and April.
3. This was followed by a ___________ between April and June when sales were
moving from $ 400 m to $700m.
4. Prices rose ___________from February to October.
5. Sales reached a record ________of 11,000 and then leveled _____.
6. After early losses, the FTSE 100 _________to finish 7 points up.
7. The Euro ________ to an all-time high yesterday.
8. Renault staged a __________, finishing up10.
X
EXPLAIN BRIEFLY
1. The difference between claim and compensation
2. The difference between a broker and an underwriter
3. The difference between an accountant and an auditor
4. Where does gross profit of a company go to?
5. What is the connection of assets and liabilities?
6. What are the sources and applications of funds?
7. The difference between external theory of the business cycle and internal theory of the
business cycle.
7
8
8. The difference between amortization and depreciation
9. What are overheads?
10. How insurance companies make profit?
11. What does a cash flow statement show?
12. What does the annual report consist of?
12. Equation for the Profit & Loss Account – What does it show?
13. Equation for the Balance Sheet – What does it show?
14. The difference between equity and debt financing! (advantages and disadvantages of
both from the point of an investor and an issuer)
15. A raid and a takeover bid
16. A horizontal and vertical integration
17.Backward and forward integration
18. A hostile and friendly takeover
19. Fiscal and monetary policy
8
9
XI TWO EXERCISES ON LINE GRAPH DESCRIPTION.
1 FILL IN THE GAPS WITH THE WORDS FROM THE BOX.
a peak of
fluctuated
leveled off
sharp increase
was
rising
falling
rose by
In 1980, the price of New Zealand's wool __________________ $1.98 per kilo.
It then ______________ 20 cents in 1981 before falling back to $1.37 in 1986.
There was a ______________ over the next two years, with the price of wool
reaching ______________ $5.13 in 1988. From 1989 to 1993 the price
______________ between a high of $3.20 and a low of $2.75, before
______________ to $4.60 in 1995. After _____________ again to $3.60 in
1998, the price ______________ at $3.55 in 2000.
9
10
2. WRITE A SHORT DESCRIPTION OF THE GRAPH.
The line graph shows the price of platinum per ounce in US dollars between 1960 and
2005.
1
0