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UNIT 7. FINANCIAL ACTIVITY

TEXT 1. FINANCE

Task 1. Study the vocabulary:

monetary relations	грошові відносини
thrift institution	ощадний заклад
insurance company	страхова компанія
mutual fund	взаємний фонд
comprise	включати, охоплювати
financial flows	фінансові потоки
benefit	вигода, користь
implementation	виконання
budget	бюджет
expenditure	витрати

 

Task 2. Read and translate the text:

FINANCE

Finance is the provision of money at the time when it is needed. It is a system of monetary relations leading to formation, distribution and use of money in the process of its turnover between economic entities.

The financial system is the network of institutions through which firms, households and units of government get the funds they need and put surplus funds to work.

Savers and borrowers are connected by financial intermediaries including banks, thrift institutions, insurance companies, pension funds, mutual funds, and finance companies.

Finance in an economic system comprises two parts: public finance and finance of economic entities.

Public finance is the provision of money (by the community through taxes) to be spent by national and local government authorities on  projects of national and local benefit. It is a collective term for the financial flows and also the financial institutions of the public sector.

Public finance has the following four functions:

-         the provision of essential services;

-         the encouragement or control of particular sectors of the economy;

-         the implementation of social policy in respect of social services;

-         the encouragement of the growth of the economy as a whole.

The major instrument of any financial system is the budget. In a market-oriented economy, the budget is the most important tool for achieving national priority and goals through the allocation and distribution of resources, and the maintenance of stable macroeconomic environment.

The budget is an estimate of national revenue and expenditure for the ensuing fiscal year. When expenditure exceeds the revenue the budget has a deficit.

Revenue and expenditure forecasting is the most fundamental step in the process of budget preparation. Adequate planning of recurrent and capital expenditure depends critically on an accurate forecast of revenue availability. The determination of the expected overall deficit in the public sector and therefore the macroeconomic impact of fiscal policy requires accurate forecast of tax collection and expenditures.

In Ukraine, public finance is a sum of the budgets of all levels of subjects of the state, extrabudgetary and reserve funds.

An accurate revenue forecast is most critical at the national level of government but it is also important for all level governments because over the last several years they have worked with increasingly autonomous budgets.

Budget preparation at the national level involves a number of institutions. The Ministry of Finance (MF) is the central coordinating institution in charge of compiling and presenting the budget. It has major inputs from² ministries in various sectors of the economy and the state tax bodies.

 

Task 3. Choose the best variant:

1.     Finance is the provision of money…

a)     at the time when it is not needed

b)    to be spent by national authorities

c)     at the time when it is needed

2.     Finance is an economic system comprises…

a)     two parts

b)    three parts

c)     four parts

3.     The major instrument of any financial system is…

a)     the Ministry of Finance

b)    the budget

c)     the adequate planning of capital expenditure

4.     An accurate revenue forecast is the most critical….

a)     at the public level of government

b)    at the national level of government

c)     at the many levels of government

5.     Budget preparation at the national level ivolves…

a)     a number of institutions

b)    many Ministries of Finance

c)     the ministries in various sectors of the economy

 

Task 4. Fill in the gaps.

Finance is the 1._______ of money at the time when it is needed. It is a system of 2.________ relations leading to formation, distribution and use of money in the process of its  3.________ between economic entities.

The financial system is the 4.________ of institutions through which firms, households and units of  5.________ get the funds they need and put surplus funds to work.

Savers and borrowers are connected by financial  6._______  including banks, thrift institutions, insurance companies, pension funds, mutual funds, and finance companies.

Finance is an economic system  7.________ two parts: public finance and finance of economic entities.

Public finance is the  8._________ of money to be spent by national and local government authorities on 9._________ of national and local benefits. It is a collective term for the financial flows and also the financial 10.________ of the public sector.

Turnover, government, comprises, institutions, provision, network, intermediaries, projects, monetary, go

 

Task 5. Choose the word that best completes the sentence:

1)  The financial system is the network of institutions\banks  through which firms, households and units of our country\government get the funds\surplus they need.

2)  Savers and buyers\borrowers are connected by financial intermediaries including banks\international banks, thrift institutions, insurance companies, pension funds, mutual funds, and finance companies.

3)  Public finance is the provision\spending  of money (by the community through taxes\ expenditures) to be spent by national and local government authorities on  projects of national and local benefit.

4)  When financial intermediaries \expenditure exceeds the revenue\ tax collection the budget has a deficit.

5)  Budget preparation\provision at the national\local level involves a number of institutions.

 

Task 6. Give English equivalents from the text for the following word combinations:

1.  Ощадний заклад –

2.  Страхова компанія –

3.  Збирання податків –

4.  Розумне планування –

5.  Підготовка бюджету –

6.  Точний прогноз –

7.  Автономний бюджет –

8.  Здійснення –

9.  Підтримка, заохочення –

10.  Органи державної влади –

 

 

TEXT 2. FINANCIAL POLICY. FISCAL SPHERE

Task 1. Study the vocabulary:

fiscal management	управління державним бюджетом
major guidelines	основні напрямки
attainment	досягнення
productive forces	виробничі сили
public debt	державний борг
fiscal deficit	дефіцит бюджету
fiscal relations	бюджетні відносини
public goods	суспільний  товар
refuse collection	збирання сміття
incidence	сфера охоплення

 

Task 2. Read and translate the text:

FINANCIAL POLICY. FISCAL SPHERE

Financial policy is a very complex notion covering measures aimed at working out basic concepts, major guidelines, goals and objectives, as well as at creating an adequate financial mechanism and at directing financial activities of a country. Financial policy is based on strategic guidelines which set long-term and medium-term prospects for using financial resources and ensure attainment of major economic targets and solution of goals in the social sphere. At the same time a country pursuing its financial policy sets current goals and objectives connected with mobilization and effective utilization of resources and development of productive forces.

Over the past two decades financial problems have exacerbated the world over. Public debts have reached unsustainable levels in a growing number of industrial countries. This development and its results – higher interest rates, lower investment, and slower growth in living standards – have stimulated efforts by policymakers to find solutions to swollen budget deficits.

Central to these solutions is fiscal policy. Fiscal policy is the policy adopted by a government for raising revenue to meet expenditure.

For countries that now face unsustainable fiscal deficits, financial stabilization represents a top priority.

The answer to financial stabilization lies in the effectiveness of fiscal management – the principles, institutional arrangements, information flows, and techniques that govern the budget process and define fiscal relation between levels of government.

Most western nations operate some degree of fiscal federalism, which is the system of taxation and public expenditure in which revenue-raising powers and control over expenditure are vested in various levels of government  within a nation, ranging from the national government to the smallest unit of local government.

A system of multilevel finance may be justified in term of allocative efficiency on the grounds that while some public goods, such as national defence, confer benefits on the nation as a whole, the benefits of other goods, such as refuse collection, are more limited in geographical incidence. It is argued that  by making decisions concerning the provision and financing of the latter type of goods at the level of local rather than national governments, the best or optimal level of provision is more likely to be achieved.

Since the onset of the reforms Ukraine has been in the process of creative a new system of taxation and rules to administer taxes and to distribute those taxes and expenditure responsibilities among levels of government.

 

Task 3. Choose the best variant:

1.     Financial policy is based on …

a)     strategic guidelines

b)    ensure attainment of major economic targets

c)     public expenditure

2.     Fiscal policy is the policy adopted …

a)     by financial institutions for raising revenue

b)    by a government for raising revenue

c)     by thrift institutions for raising revenue

3.     The answer to financial stabilization lies in the …

a)     system of multilevel finance

b)    effectiveness of fiscal management

c)     the process of creative a new system of taxation

4.     Most western nations operate some degree of …

a)     fiscal federalism

b)    fiscal management

c)     financial stabilization

5.     Financial stabilization represents …

a)     public expenditure

b)    system of  taxation

c)     a top priority

Task 4. Fill in the gaps.

Financial policy is a very complex notion covering  1.________ aimed at working out basic concepts, major guidelines, goals and 2._______ as well as at creating an adequate financial 3.________ and at directing financial 4.________ of a country. Financial policy is based on strategic 5.________  which set long-term and medium-term prospects for using financial resources and ensure 6.________ of major economic targets and solution of goals in the social sphere. At the same time a country pursuing its financial 7._________sets current goals and objectives connected with 8._________ and effective utilization of  9._______ and development of 10._________  forces.

Mobilization, recourses, measures, mechanism, objectives, productive, attainment, guidelines, policy, activities

Task 5. Choose the word that best completes the sentence:

1.     Financial policy is based on strategic guidelines\mechanism which set short\ long-term and medium-term prospects for using financial resources.

2.     Over the past two\four decades financial problems have exacerbated\ justified the world over.

3.     The answer to financial stabilization lies in the effectiveness\adoption  of fiscal\local  management.

4.     Public resources\ debts have reached unsustainable levels in a growing number of industrial\ western countries.

5.     A country pursuing its financial policy\problem sets current goals and objectives connected with mobilization\ development.

Task 6. Give English equivalents from the text for the following word combinations:

1.Основні напрямки –

2. Досягнення –

3. Виробничі сили –

4. Державний борг –

5. Дефіцит бюджету –

6. Бюджетні відносини –

7. Багаторівневий –

8. Суспільний товар –

9. Бюджетний федералізм –

10. Сфера охоплення –

 

 

TEXT 3. FINANCIAL INSTITUTIONS

Task 1. Study the vocabulary:

to specialize	спеціалізуватися
circumstance	обставина
scheme	проект
to accumulate	накопичувати
investment trust	інвестиційний траст
unit trust	пайовий траст
the open market	відкритий ринок
loan	кредит
bill of exchange	чек
hire	розстрочка,  оренда

 

 

 

Task 2. Read and translate the text:

FINANCIAL INSTITUTIONS

There are many important financial institutions which provide finance for companies in the country. These institutions provide money in different ways.

         Banks. Although banks specialize in supplying short-term  loans, they are prepared to make loans for longer periods – up to 20 years in certain circumstances. In the case of a very small firm, the necessary money will be provided by the proprietor and his family and friends with, perhaps, a loan from from the local bank.

A firm may acquire some equipment such as cars, lorries, office equipment and some type of machinery on hire-purchase terms.

         Insurance companies. The regular premiums paid by policyholders are invested in government securities, company shares, land, and property of all kinds. The income from these investments makes it possible for insurance companies to pay out interests which are greater than the total  payments made by policyholders.

         Pension funds. Although in many countries there is a state pension scheme to which all workers contribute, a large number of employed and self-employed people also belong to private pension schemes. The money which accumulates  in these pension funds is invested and works in a very similar manner to the funds of insurance companies.

         Investment trusts. These are limited companies buying shares in other companies which they believe will be the most successful ones. People who then buy shares in investment trusts are paid dividends and investment funds obtain a profit too.

         Unit trusts . These operate in a very similar manner to investment trusts. But they are not limited companies – they do not issue shares, they issue units. These units cannot be re-sold on the open market, but they can sold back to the unit trust at any time.

         Finance houses. These institutions provide the loans which finance hire-purchase schemes and leasing arrangements. Firms which sell goods on  hire-purchase or who lease goods do not have to wait two  or three years before their goods are full paid for. They receive immediate payments paid by the purchaser.

         There are many other specialist financial institutions which provide finance for companies. Besides in many countries a government is an important source of finance for privately-owned firms. 

 

Task 3. Match two parts of the sentences:

 

1. These institutions provide	a) policy holders are invested in government securities
2. A firm may acquire some	b) equipment such as cars, lorries, office equipment
3. The regular premiums paid  by	c) which provide finance for companies
4. These are limited companies	d) the loans which finance hire-purchase schemes and leasing arrangements
5. The money which accumulates  in these pension funds is invested	e) buying shares in other companies
6. Finance houses provide	f) and works in a very different manner
7.  People who then buy shares in	g) in investment trusts are paid dividends
8. Besides in many countries a government is	h) which provide finance for companies
9. There are many other special financial institutions	i) an important source of finance for privately-owned firms.

 

Task 4.  Choose the word that best completes the sentence:

1.     The regular premiums paid by policy holders/buyers are invested in government\local  securities, company shares, land, and property of all kinds.

2.     The money which accumulates in these pension\mutual funds is invested and works in a very different\similar manner to the funds of insurance companies.

3.     People who then sell\buy shares in investment trusts are paid\bought dividends and investment funds obtain a profit too.

4.     Unit trusts  operate in a very different\similar manner to financial\investment trusts.

5.     There are many other special financial trusts\institutions which provide\accumulate  finance for companies.

6.     Besides in many countries a government is an important source\budget of finance for public\privately-owned firms. 

Task 5.  Agree or disagree:

1.     Although banks specialize in supplying short-term  loans, they are not prepared to make loans for longer periods.

2.     A firm may not acquire some equipment such as cars, lorries, office equipment.

3.     Firms which sell goods on hire-purchase or who lease goods do not have to wait two  or three years before their goods are full paid for.

4.      Finance houses receive immediate payments paid by the purchaser.

5.     There are many other specialist financial institutions which provide finance for companies.

 

 

 

 

Task 6.  Read the first part of the text again and fill in the gaps.

There are 1._____ important financial 2.______ which provide finance for 3._______  in the country. These institutions  4._______ money in different   5._______.

         Banks.  Although banks specialize in supplying short-term 6._______, they are prepared to make loans for longer periods – up to 20 years in  7._______  circumstances. In the case of a very   8.________ firm, the necessary money will be provided by the proprietor and his  9.________  and friends with, perhaps, a loan from from the  10._______ bank.

 

Small, many, family, companies, local, certain, provide, loans, institutions, ways

 

 

 

TEXT 4. FINANCIAL SYSTEM

Task 1. Study the vocabulary:

to start up business	розпочати справу
to get along with the business efficiently	вести справу ефективно
perfect financial management	досконале фінансове керівництво
money flows	потоки грошей
objective	ціль
to optimize profits	оптимізувати прибутки
to guarantee	гарантувати
to earn money	заробляти гроші
venture	комерційне підприємство
security market	ринок цінних паперів
stock	акція
bond	облігація
mutual funds	спільні кошти
stock exchange	фондова біржа
to accumulate capital	накопичувати капітал
a comprehensive program	зрозуміла програма
insurance	страхування
to protect life	захищати життя
accident	нещасний випадок
failure	невдача, банкрутство
losses	збитки
to promote	сприяти (просувати)
reduce taxes	скорочувати податки
to cope  with difficulties	долати труднощі

 

Task 2. Read and translate the text:

FINANCIAL SYSTEM

One should know how to obtain and manage the funds one needs to start up and get along with the business efficiently. Perfect financial management begins with planning. Financial planning stands for short-run and long-run money flows to and from a firm. Its objective is to optimise profits and guarantee the best use of money.

People in business may earn money in different ways, either producing and selling goods and services or investing into other ventures. Security markets enable businesses and investors to buy and sell stocks, bonds and mutual funds. Stock exchanges let their members buy and sell securities to the public. A middleman who buys and sells securities for the clients is called a stockbroker.

The principle of successful business is very simple: one has to be aware of how to accumulate capital, invest it to get as much income as one can and to earn more than one spends. To build one's capital account, it's advisable one should make the list of "WHAT TO DO NEXTs". There are people who assist families in developing a comprehensive program involving insurance, invest­ments, taxes etc., called financial planners. Those involved in business should consider the problem of insurance coverage pro­tecting life, health and a firm from the possible accidents, failures and losses. They should meditate over the best way of investing money to promote a venture, reduce taxes as much as possible and use help from professionals to cope with difficulties.

 

Task 3. Match the words from column A with the words from column B:

A	B
1) insurance	a) заробляти гроші
2) losses	b) скорочувати податки
3) bonds	c) ефективно
4) stocks	d) страхування
5) security market	e) потоки грошей
6) stock exchange	f) облігації
7) to earn money	g) акції
8) money flows	h) фондова біржа
9) to reduce taxes	i) збитки
10) efficiently	j) ринок цінних паперів

Task 4. Read the statements and decide whether they are true or false:

1.     Perfect financial management begins with obtaining funds.

2.     The objective of the financial planning is to optimize profits.

3.     Financial planning stands for only long-run flows to and from a firm.

4.     People in business may earn money in one way.

5.     Security markets enable businesses and investors to sell and buy goods and services.

6.     Stock exchanges let their members sell securities to the public.

7.     A stockbroker is a person who buys and sells securities for the clients.

8.     Successful business has to be aware of how to accumulate and invest capital.

9.     Financial planners assist families in developing a comprehensive program involving insurance, investments, taxes etc.

10.  Financial planners should consider over the best way of investing money.

Task 5. Choose the best answer:

1.     Who meditates over obtaining and managing funds in a firm?

e)   an accountant

f)    a broker

g)  a director

h)  a financial manager

2.     What does the financial management begin with?

e)   auditing

f)    planning

g)  assessment

h)  accumulating

3.     What does the financial planning stand for?

e)   short-run money flows

f)    long-run money flows

g)  short-run and long-run money flows

h)  short-run and long-run money flows to and from a firm

4.     What do Securities markets enable businesses and investors?

e)   to bay stocks

f)    to sell bonds

g)  to buy and sell stocks, bonds and mutual funds

h)  to buy and sell stocks and funds

5.     What is the principle of successful business?

e)   to accumulate capital

f)    to invest capital

g)  to earn more than one spends

h)  all of them

 

6.     What problems should businessmen consider of?

e)   reducing taxes

f)    insurance protecting a firm from failures and losses

g)  raising taxes

h)  lowing taxes

 

 

 

 

TEXT 5. FINANCIAL MANAGEMENT

 

Task 1. Study the vocabulary:

equity capital	власний капітал
debt  capital	залучений  капітал
regardless of	не дивлячись на
dividend	прибуток
to encourage	стимулювати
retained	утриманий
indebtedness	заборгованість
bond holder	утримувач облігацій
to tap	починати
disadvantage	недолік

Task 2. Read and translate the text:

FINANCIAL MANAGEMENT

Finance is that function in a business responsible for acquiring funds for the firm, managing funds within the firm (for example, pre­paring budgets, doing cash flow analysis), and planning for the expen­diture of funds on various assets. What do finance managers do? They plan budget, control funds, obtain funds, collect funds, audit, manage taxes, and advise top management on financial manors.

One of the important functions of a finance manager is to obtain long-term capital. Long-term financing is money obtained from the owners of the firm and lenders who do not expect repayment within 2 or more years. Long-term capital comes from two major sources:

1.    Equity capital comes from the owners of the firm. Part of eq­uity capital is venture capital. It is money raised from organizations that fund (give capital to) new businesses (new ventures).

2.    Debt capital comes from borrowing money through the sale of bonds or from banks and other lending institutions.

Regardless of whether or not a new firm can obtain venture capi­tal funds, there usually comes a time when even more funds are re­quired. One way to obtain needed funds is to sell ownership shares in the firm (called stock) to the public.

The advantages of selling stock for long-term financing include fact that owners need not be repaired, there is no legal obligation to dividends (so income can be reinvested), it improves the financial condition of the firm, and it is relatively easy to do. The disadvantages include the fact that owners can vote and affect management, it is a relatively expensive form of fund raising, and it forces management to be short-term, stockholder oriented.

What are other kinds of stock? Common stockholders can vote. If a firm wants to maintain its control over management, it may sell preferred stock, which carries no vote. The way to encourage stock­holders to buy preferred stock is by paying a larger, fixed dividend and assuring its payment.

A major source of long-term funds is income that it earns from its cooperations. Dividends are merely a share of that income given to stockholders. Retained earnings are profits retained by the firm rather than paid out in dividends.

There are two major forms of long-term debt financing: selling bonds and borrowing from banks and other, financial institutions.

What is the problem with getting long-term funds from financial institutions? You need good credit and most banks demand collateral.

 

Task 3. Match two parts of the sentences:

1. Finance is that function in a business responsible	a)  from two major sources
2. One of the important functions of  a finance manager	b)  that income given to stockholders
3. Long-term financing is	c)  include fact that owners need not be repaired
4. Long-term capital comes	d) for acquiring funds for the firm
5. Debt capital comes from borrowing money	e) preferred stock is by paying
6. The advantages of selling stock for long-term financing	f) income that it earns from its co operations
7. The way to encourage stock­holders to buy	g) through the sale of bonds
8. A major source of long-term funds is	h) money obtained from the owners of the firm
9. Dividends are merely a share of	i) is to obtain long-term capital

 

Task 4. Give English equivalents from the text for the following word combinations:

1.     Власний капітал

2.     Залучений капітал –

3.     Недолік –

4.     Перевага –

5.     Заборгованість –

6.     Утриманий –

7.     Утримувач облігацій –

8.     Прибуток –

9.     Стимулювати –

10.           Платіж –

 

Task 5. Choose the word that best completes the sentence:

1.     Finance is that function in a business responsible for acquiring\ effectiveness for the firm, managing funds within the firm  and planning for the expen­diture\ policy of funds on various assets.

2.     One of the important functions of a finance manager is to obtain\  encourage long-term\short-term capital.

3.     Regardless of whether or not a new firm\institute can obtain venture capi­tal funds, there seldom\usually comes a time when even more funds are re­quired.

4.     The way to collect \encourage stock­holders to sell\buy preferred stock is by paying a larger, fixed dividend and assuring its payment.

5.     There are two major forms of long-term debt financing: selling\buying bonds and buying\borrowing from banks and other, financial institutions.

Task 6 . Fill in the gaps.

Finance is that 1._______ in a business responsible for 2._______ funds for the firm, managing 3._______  within the firm for example, pre­paring 4._______ doing cash flow analysis, and planning for the  5.________ of funds on various assets. What do finance managers do?  They plan budget, control  6._______ funds, collect funds, audit, manage 7.________ and advise top management on financial manors.

One of the 8.________ functions of a finance manager is to obtain long-term capital. Long-term financing is 9.________ obtained from the owners of the firm and lenders who do not expect 10._______ within 2 or more years.

Money, functions, repayment, expenditure, budgets, taxes, funds, obtain, acquiring, important

Task 7. Agree or disagree:

1.     One of the important functions of a finance manager is to obtain long-term capital. The advantages of selling stock for long-term financing include fact that owners need to be repaired.

2.      The way to encourage stock­holders to buy preferred stock is by paying a smaller, non-fixed dividend and assuring its payment.

3.     There are two major forms of long-term debt financing: selling bonds and borrowing from banks and other, financial institutions.

4.     A major source of long-term funds is income that it earns from its cooperations

 

 

TEXT 6. TYPES OF BUDGET CLASSIFICATION

 

Task 1. Study the vocabulary:

functional classification	функціональна класифікація
economic classification	економічна класифікація
cross-classification	перехресна класифікація
to levy	стягувати
donations	пожертвування
expenditures	витрати
to permit	дозволити
to impact	впливати на
unrequited	неоплачений
property	власність

Task 2. Read and translate the text:

TYPES OF BUDGET CLASSIFICATION

        A system of budget classification enables the myriad government operations and transactions to be organized into relatively homogeneous categories that facilitate the analysis of the impact, nature, and composition of revenues, expenditures, and other financing activities of government.

On the revenue, taxes are classified by the type of activity on which the tax is levied (income, sales, property and so on). Other current non-tax revenues are classified by the nature of the inflow, such as income from government property, sales proceeds, fines, and donations. Capital revenues are classified by the type of asset sold.

Grants are distinguished by whether they come from domestic or foreign governments and international institutions and whether they are for current or capital purposes.

On the expenditure, outlays are frequently classified by the responsible institution or organization. The two most useful types of classifications of government expenditures are the functional classification and the economic classification.

In functional classification, expenditures (and lending) are classified according to the main purpose or function, such as defense, education, and health. The three-level Classification of the Functions of Government published by the Statistical Office of the United Nations is commonly accepted. The value of functional classifications is that they permit analysis of trends in government expenditures even when the organizational structure of government changes.

The economic classification groups expenditures into current and capital and by whether they are required or unrequited; if required, for what kind of goods and services, and if unrequited, by the type of person or institution receiving the payment. The objective is to show the kinds of transactions through which the government performs its functions and their impact on markets, financial conditions, and the distribution of income. These transaction categories are wages and salaries, purchases of goods and services, interest on the debt, subsidies to enterprises, transfers to households and other governments, and lending.

One of the most useful ways to analyze government outlays is by means of the cross-classification by economic character and function. This classification reveals the means by which government performs its functions and the impact these activities will have on the rest of the economy.

 

Task 3.  Choose the word that best completes the sentence:

1.     A system of budget classification enables the myriad state\government operations and transactions to be organized into relatively similar\homogeneous categories.

2.     On the expenditure\revenue, taxes are classified by the type of lending\activity on which the tax is levied.

3.     Capital\local revenues are classified by the type of asset sold\bought.

4.     Grants\ revenues are distinguished by whether they come from domestic or foreign governments\states and international institutions.

5.     One of the most useful\important ways to analyze government outlays is by means of the cross-classification by economic\local character.

    

Task 4.  Match  two parts of the sentences:

1. A system of  budget classification	a)  by the responsible institution
2. Other current non-tax revenues are classified by the nature of the inflow	b) expenditures into current and capital
3. On the expenditure, outlays are frequently classified	c) by which government performs its functions
4. Grants are distinguished by whether they come	d) enables the myriad government operations
5. The economic classification groups expenditures into current and capital	e) from domestic or foreign governments
6. The objective is to show the kinds of transactions through	f)  which the government performs its functions
7. These transaction categories are	g) wages and salaries, purchases of goods and services
8. This classification reveals the means	h) the Functions of Government
9. The three-level Classification of the Functions of Government	i)  classified by the nature of the inflow

 

Task 5.  Fill in the gaps:

         A system of 1._______classification enables the myriad government 2._______ and transactions to be 3._______ into relatively homogeneous categories that facilitate the analysis of the impact, 4._______ and composition of revenues, expenditures, and other 5._______ activities of government.

On the revenue, 6._______ are classified by the 7._______ of activity on which the tax is levied. Other current non-tax revenues are classified by the nature of the 8._______ such as income from government 9._______ sales proceeds, fines, and donations. Capital 10.________   is classified by the type of asset sold.

Property, budget, taxes, revenues, inflow, nature, operations, type, organized, financing

Task 6. Agree or disagree:

1.     Other current non-tax revenues are classified by the nature of the inflow.

2.     Capital revenues are classified by the type of asset bought.

3.     Grants are distinguished by whether they come from domestic or foreign governments.

4.     There are four most useful types of classifications of government expenditures.

5.     One of the most useful ways to analyze government outlays is by means of the cross-classification.

 

Task 7 .Give English equivalents from the text for the following word combinations:

1.Витрати –

2. Стягувати –

3. Впливати на –

4. Неоплачений –

5. Власність –

 

TEXT 7. FINANCIAL OPERATIONS

 

Task 1. Study the vocabulary:

primary	першочерговий
consideration	рішення (тут)
sufficient	достатній
to operate a business	вести бізнес
ongoing expenses	поточні витрати
purchase	купувати
assets	активи
inventories	запаси
equipment	обладнання
property	власність
to obtain money	придбати гроші
to use money	використовувати гроші
in large measure	значно, у великій мірі
acquired capital	отриманий капітал
to determine	визначати
to secure	забезпечувати, гарантувати
to utilize	використовувати
to expand	розширювати
essential assets	найнеобхідніші активи
to support research	підтримувати дослідження
salary	заробітна плата
credit extension	кредитне розширення
advertising	реклама
insurance	страхування

 

Task 2. Read and translate the text:

FINANCIAL OPERATIONS

 

       One of primary considerations when going into business is money. Without sufficient funds a company cannot begin operations. The money needed to start and continue operating a business is known as capital. A new business needs capital not only for ongoing expenses but also for purchasing necessary assets. These assets – inventories, equipment, buildings, and property – represent an investment of capital in the new business.

       How this new company obtains and uses money will, in large measure, determine its success. The process of managing this acquired capital is known as financial management. In general, finance is securing and utilizing capital to start up, operate, and expand a company.

       To start up or begin business, a company needs funds to purchase essential assets, support research and development, and buy materials for production. Capital is also needed for salaries, credit extension to customers, advertising, insurance, and many other day-to-day operations. In addition, financing is essential for growth and expansion of a company. Because of competition in the market, capital needs to be invested in developing new product lines and production techniques and in acquiring assets for future expansion.

       In financing business operations and expansion, a business uses both short-term and long-term capital. A company, much like an individual, utilizes short-term capital to pay for items that last a relatively short period of time. An individual uses credit cards or charge accounts for items such as clothing or food, while a company seeks short-term financing for salaries and office expenses. On the other hand, an individual uses long-term capital such as a bank loan to pay for a home or car-goods that with last a long time. Similarly, a company seeks long-term financing to pay for new assets that are expected to last many years.

       When a company obtains capital from external sources, the financing can be either on a short-term or a long-term arrangement. Generally, short-term financing must be repaid in less than one year, while long-term financing can be repaid over a longer period of time.

       Finance involves the securing of funds for all phases of business operations. In obtaining and using this capital, the decisions made by managers affect the overall financial success of a company.

Task 3. Read  the text again and choose the best:

1.     To start a business a company needs…

a)    a bank loan

b)    equipment

c)     sufficient funds

2.     The money to start and operate a business is knows as…

a)    funds

b)    capital

c)     assets

3.     Financial management is the process of … the acquired capital.

a)    utilizing

b)    using

c)     managing

4.     Financing is essential for … … of a company.

a)    growth

b)    expansion

c)     both

5.     A company seeks long-term financing to pay for …

a)    new assets

b)    a bank loan

c)     salaries

 

Task 4. Match the words from column A with words from column B:

A	B
2.        1) sufficient funds	a) відносно короткий період
2) ongoing expenses	b)  майбутнє розширення
3) acquired capital	c)  довгостроковий капітал
4) essential assets	d)  зовнішні джерела
5) product lines	e)  набутий капітал
6) future expansion	f)   банківська позика
7) long-term capital	g)   виробничі лінії
8) a relatively short period	h)  достатні кошти
9) a bank loan	i)  поточні витрати
10) external sources	j)  найнеобхідніші активи

 

Task 5. Fill in the gaps with a suitable word or word-combination:

1. A  new  business  needs  capital  not  only  for  ongoing expenses  but  also for  1._______ necessary assets.

2. In general finance is 2.________ capital to start up, operate and expand a company.

3. A company utilizes 3.________ capital to pay for Items that last a relatively short period of time.

4. An individual uses 4._________ for such items as clothing or food.

5. Finance involves the 5.________ of fund for all phases of business operations.

 

Task 6. Read the statements and define whether they are false or true:

1.  With sufficient funds a company can start its operation.

2.  A new business needs capital for purchasing inventories, equipment, buildings and property.

3.  Capital is not essential for advertising and insurance.

4.  Capital is essential for developing new product lines and production techniques.

5.  In financing business operations and expansion, a business uses only long-term capital.

6.  When a company obtains capital from external sources, the financing can be on a short-term arrangement.

 

 

 

 

 

 

 

UNIT 8.  INTERNATIONAL MANAGEMENT

TEXT 1. INTERNATIONAL MANAGEMENT

 

Task 1. Study the vocabulary:

to foster	сприяти, заохочувати
challenge	виклик, випробування, тут: складне завдання
pattern	модель
balance of payments	баланс   12 3 4 5 6 7 8 9 10 11 12 13