Exercise 4. Translate from Russian into English.

1. Бухгалтерский учет представляет данные для кредиторов и вкладчиков. 2. Они готовят отчет о доходах и балансовый отчет в конце финансового года. 3. Мы определяем эффективность производства с помощью анализа коэффициентов. 4. Недвижимость является собственностью корпораций. 5. Мы проверим актив и пассив и определим стоимость имущества за вычетом обязательств. 6. Мы платим большие налоги. 7. Сколько ты получаешь без вычетов?

Grammar Exercises

Exercise 1. Make the sentences negative.

Model: I worked as an accountant in a big corporation.

I didn't work as an accountant in a big corporation.

1. An accounting department reported on the effects of the transactions.

2. They studied carefully income statement and balance sheet.

3. We used ratio analysis to determine the firms operating efficiency.

4. The accountants checked the assets and liabilities.

5. The accounting department provided data for the management.

Exercise 2. Put up for questions of different types to each sentence (general, special, disjunctive, alternative).

Model: The accounting department regularly prepared the income statement and balance sheet.

1. Did the accounting department regularly prepare the income statement and balance sheet?

2. What did the accounting department regularly prepare?

3. The accounting department regularly prepared the income statement and balance sheet, didn't it?

4. Did the accounting department prepare the income statement or a financial statement?

1. The board of directors checked out assets liabilities and net worth.

2. He worked as a Comptroller of the company for two years.

3. The applicants sent their resumes and letters of interest.

4. She used to do books in a big company.

5. Some governmental corporations issued stock certificate.

LESSON 7

CORPORATE FINANCE

Text

Corporations need financing for the purchase of assets and the payment of expenses. The corporations can issue shares in exchange for money or property. Sometimes it is called as equity funding. The holders of the snares form the ownership of the company. Each share is represented by a stock certificate, which is negotiable. It means that one can buy and sell it. The value of a share is determined by the net assets divided by the total number of shares outstanding. The value of the share also depends on the success of the company. The greater the success, the more value the shares have.

A corporation can also get capital by borrowing. It is called debt funding. If a corporation borrows money, they give notes or bonds. They are also negotiable. But the interest has to be paid out whether business is profitable or not.

When running the corporation, management must consider both the outflow and inflow of capital. The outflow is formed by the purchase of inventory and supplies, payment of salaries. The inflow is formed by the sale of goods and services. In the long гад, the inflow must be greater than the outflow. It results in a profit. In addition, a company must deduct its costs, expenses, losses on bad debts, interest on borrowed capital and other items. It helps to determine if the financial management has been profitable. The amount of risk involved is also an important factor. It determines the fund-raising and it shows if a particular corporation is a good investment.

Active Vocabulary

purchase покупка, купля,приобретение

payment of expenses оплата расходов

property собственность, имущество

equity funding акционерный (долевой) способ образования денежного фонда предприятия

debt funding образование денежного фонда предприятия с помощью займа

holders of the shares держатели акций

stock certificate сертификат акций

negotiable оборотный, могущий быть переуступленным, купленным, проданным

net assets стоимость имущества за вычетом обязательств bond долговое обязательство, облигация

note зд. долговая расписка

interest доля, фиксированный процент