Apr 14, 2016

Finance English practice: Unit 2 — Business Finance

21 cards
, 89 answers
  • Complete the sentences below. Check the key words if necessary.
    • Capital

      key words
      set up      ○      capital      ○      borrow      ○      loan      ○      interest      ○      equities      ○      invest      ○      shareholders      ○      own      ○      share capital      ○      investors      ○      lend      ○      bonds      ○      owed      ○      debt      ○      liabilities      ○      credit      ○      funds


      When people want to or start a company, they need money, called . Companies can this money, called a , from banks. The loan must be paid back with — the amount paid to borrow the money. Capital can also come from issuing shares or — certificates representing units of ownership of a company. The people who money in shares are called and they part of the company. The money they provide is known as . Individuals and financial institutions, called , can also money to companies by buying — loans that pay interest and are repaid at a fixed future date.

      Money that is — that will have to be paid to other people or businesses is a . In accounting, companies' debts are usually called . Long-term liabilities include bonds. Short-term liabilities include debts to suppliers, who provide goods or services on — that will be paid for later.

      The money that a business uses for everyday expenses is called working capital or .

      Revenue

      key words
      revenue      ○      expenses      ○      profit      ○      dividend      ○      retain      ○      tax


      All the money coming into a company during a given period is . Revenue minus the cost of sales and operating , such as rent and salaries, is known as , earnings or net income. The part of its profit that a company pays to its shareholders is a . Companies pay a proportion of their profits to the government as , to finance government spending. They also , or keep, some of their earnings for future use.

      Financial statements

      key words
      financial statement      ○      balance sheet      ○      assets      ○      profit and loss account


      Companies give information about their financial situation in . The shows the company's — the things it owns; its liabilities — the money it owes; and its capital. The shows the company's revenues and expenses during a particular period, such as three months or a year.

    • Complete the sentences with correct words.
      • Small companies often try to get bank loans when they need to  . . . 
        borrow
        money.
        • borrow
        • endow
        • invest

      • We don't have sufficient  . . . 
        funds
        to build a completely new factory.
        • valuables
        • supplies
        • funds

      • Details of a company's liabilities are shown on the  . . . 
        balance
        .
        • balance
        • remainder
        • ballast

      • We're going to raise more money by selling new shares to our existing  . . . 
        shareholders
        .
        • shareholders
        • stockholders
        • lenders
        • creditors

      • We had to raise $50,000  . . . 
        capital
        in order to start the business.
        • capital
        • metropolis
        • interest

      • We're going to pay back some of the people who lent us money, and reduce our  . . . 
        debt
        .
        • debt
        • pledge
        • loan

      • I decided to buy a $10,000  . . . 
        bond
        instead of shares, as it's probably safer.
        • book
        • bond
        • partnership

      • Another term for profit is net  . . . 
        income
        .
        • income
        • salary
        • expenditure

      • I think this is a good investment: it pays 8%  . . . 
        interest
        .
        • attention
        • interest
        • concern

      • When they saw our financial statements, the bank refused to  . . . 
        lend
        us any more money.
        • supply
        • lend
        • borrow

      • Profit is the difference between revenue and  . . . 
        expenses
        .
        • expenses
        • prices
        • losses

      • The profit and  . . . 
        loss
        account shows if a company is receiving more money than its spending.
        • gain
        • loss
        • deficit

      • If you don't like taking risks, you should only  . . . 
        invest
        in very successful companies.
        • invest
        • sell
        • grant

      • A company's retained earnings belong to its  . . . 
        owners
        .
        • homeowners
        • owners
        • inspectors

      • Anything a company uses to produce goods or services is an  . . . 
        asset
        .
        • asset
        • benefit
        • liability

      • The company made such a big profit, I expected a higher  . . . 
        dividend
        .
        • recommendation
        • dividend
        • portion

      • We sold a lot more last year, so our  . . . 
        revenue
        went up.
        • income
        • revenue
        • expenditure

      • We  . . . 
        owe
        our suppliers $100,000 for goods bought on credit.
        • have
        • owe
        • lend

      • Everyone who buys a share  . . . 
        owns
        part of the company.
        • occupies
        • loses
        • owns

      • Thirty per cent of our profits goes straight to the government in  . . . 
        tax
        .
        • rebate
        • aid
        • tax

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