Unit 6. How funds flow through business

Exercise 1. Expand on the statements:

1. The race is not always the swift, nor the battle to the strong, but that is the way to bet. Rudyard Kipling

2. If you want to be successful you must look successful. Moore

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

fund

operating

material

rent

fixed

license

commission

business

credit

machine

bank

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, сравнительная степень прилагательного

- ly – суффикс наречия

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

to purchase assets – покупать собственность, имущество

operating costs – операционные издержки

employee salary – зарплата работникам

property taxes – налоги на имущество

license fees – плата за лицензию

fixed costs – фиксированные издержки

variable costs – переменные издержки

on the cash basis – на наличной основе

to use credits – использовать кредиты

to pay the mortgage – выплачивать заклад (ипотеку)

leverage – соотношение величины заемного капитала и основного капитала, запаса товаров и суммы капитала, соотношение вложений в привилегированные и обычные акции

cash reserve – резерв наличности

availability of cash – доступность наличности

idle cash – незанятая (свободная) наличность

to draw the interest – получать процент

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. What is money used for in the enterprises?

2. What are the types of costs?

3. What payments does an entrepreneur have to make?

4. What basis do some of the small enterprises operate on?

5. How does the use of credit affect the business?

6. Does an entrepreneur always need a cash reserve?

7. How is cash influenced by inflation?

8. How can a company draw the interest?

9. What are the securities?