Unit 4. Sources of funds

Exercise 1. Expand on the statements:

1. Everything is worth what its purchaser will pay for it. Pubilius Syrus.

2. The borrower is servant to the lender. Anonymous

Exercise 2. Read the following international words and try to guess their meaning:

business

financing

capital

bank

company

commercial

institution

deposit

federal

maximize

individual

type

compensate

firm

dealer

risk

contract

Exercise 3. Choose from the text the words with the following suffixes, place them in the alphabetical order and translate them.

- ment – суффикс существительного

- er – суффикс существительного

- al – суффикс прилагательного

Exercise 4. Read the following words and word combinations. Use them in sentences of your own.

to borrow an amount of money – занимать (брать в долг) сумму денег

different sources of financing – различные источники финансирования

to develop a new business – развивать новый бизнес

to borrow from third parties – занимать у третьих лиц

to lend money to business – одалживать деньги бизнесу (предприятию)

business loans – займы бизнесу

to charge a higher interest – взимать более высокий процент

to get the charter – получить патент

to receive funds from depositors – получать деньги от вкладчиков (инвесторов)

high interest rate – высокая процентная ставка

commercial paper – коммерческая бумага

pledge – залог

collateral – гарантия, финансовое поручительство

factoring – факторинг

Exercise 5. Read the title of the text and predict the main ideas of the text.

Exercise 6. Read the text and find out:

1. Who should a businessman address if he wants to establish the business?

2. What is a commercial bank?

3. How do commercial banks make money and what is their main goal?

4. What is a finance company?

5. What is the difference between the commercial bank and the finance company?

6. What are the main types of finance companies?

7. What is the difference between them?