Unit 5 Money

Unit5‘Abankisaplacethatwilllendyoumoneyifyoucanprovethatyoudon’tneedit.’MoneyStartingupAAnswerthesequestionsindividually.Thencompareyouranswerswithapartner.1Howmuchcashdoyouhavewithyouatthemoment?Doyou:a)knowexactly?b)knowapproximately?c)notknowatall?2Doyounormallycheck:a)yourchange?b)yourbankstatementsandcreditcardbills?c)restaurantbills?d)yourreceiptswhenshopping?e)pricesinseveralshopsbeforeyoubuysomething?3Doyou:a)givemoneytobeggars?b)givemoneytocharities?c)giveawayuseditems,suchasclothing?4Ifyougoforamealwithsomeoneyoudon’tknowwell,doyou:a)offertopaythewholebill?b)suggestdividingthebillintoequalparts?c)offertopaythewholebillbutexpectthemtopaynexttime?d)trytoavoidpayinganything?5Whatdoyouthinkaboutpeoplewhodonotpaythecorrectamountoftax?Isthis:a)aseriouscrime?b)morallywrongbutnotacrime?c)excellentbusinesspractice?6Ifyoulendacolleagueasmallamountofmoneyandtheyforgettopayitback,doyou:a)saynothing?b)remindthemthattheyoweyoumoney?c)arrangetogoforadrinkwiththemandsayyou’veforgottenyourwalletorpurse?SkillsDealingwithfiguresACorrectanyincorrectinformation.BUSINESSINBRIEFYahoohasstrengtheneditsEuropeanpresencewiththe€($578m)acquisitionofKelkoo,theFrench-basedon-lineshoppingservice.TheEuropeanon-lineretailmarketisforecasttogrowto€inthenextthreeyears.TheNikkei225Averageclimbed0.7percenttowhiletheTopixindexrose1.2percentto.Bankingsharesbenefitedmost,withMizuhojumpingpercentto¥437,000,SMFGrising4.7percentto¥,MTFGgaining7.9percenttocloseat¥andUFJup4.2percentto¥.FromTheFinancialTimes375m475m116bn107bn10,364.9911,364.991,145.901,145.955.75.6852,000752,0001,019,0001,050,000656,000646,000SkillsDealingwithfiguresCWriteallthenumbersandsymbolsinfull,accordingtothewaytheyarepronounced.Forexample,€3.1m:threepointonemillioneuros.€475m–$578m–a107bn–0.7percent–11,364.99–1.2percent–1,145.95–5.6percent–¥437,000–4.7percent–¥752,000–7.9percent–¥1,050,000–4.2percent–¥646,000–fourhundredandseventy-fivemillioneurosfivehundredandseventy-eightmilliondollarsonehundredandsevenbillioneurosnought(orzero)pointsevenpercenteleventhousand,threehundredandsixty-fourpointninenineonepointtwopercentonethousand,onehundredandforty-fivepointninefivefivepointsixpercentfourhundredandthirty-seventhousandyenfourpointsevenpercentsevenhundredandfifty-twothousandyensevenpointninepercentonemillionandfiftythousandyenfourpointtwopercentsixhundredandforty-sixthousandyenVocabularyFinancialtermsAMatchthedefinitions1to6withthefinancialtermsa)tof).1moneyowedbyonepersonororganizationtoanotherpersonororganization2aperiodoftimewhenbusinessactivitydecreasesbecausetheeconomyisdoingbadly3differencebetweenthesellingpriceofaproductandthecostofproducingit4aplacewherecompanysharesareboughtandsold5moneywhichpeopleororganizationsputintoabusinesstomakeaprofit6equalpartsintowhichthecapitalorownershipofacompanyisdivideda)grossmarginb)recessionc)sharesd)debte)stockmarketf)investmentVocabularyFinancialtermsBMatchthesentencehalves.1Earningspershareare2Aforecastis3Bankruptcyis4Adividendis5Pre-taxprofitsare6Revenuesarea)apartoftheprofitsofacompanypaidtotheownersofshares.b)acompany’sprofitsdividedbythenumberofitsshares.c)adescriptionofwhatislikelytohappeninthefuture.d)moneywhichbusinessesreceivefromsellinggoodsorservices.e)whenapersonororganizationisunabletopaytheirdebts.f)themoneyabusinessmakesbeforepaymenttothegovernment.VocabularyFinancialtermsInourhomemarketsithasbeenanotherexcellentyear._____________areupby£23million,andthe___________forthenextquarterisequallygood.Profitsfromabroadaredownbecauseofa____________inJapan.However,ourperformanceoverallhasbeengood,andthe_____________________haveincreasedto26.4pandthe___________willbeincreasedto4.3ppershare,whichwillpleaseourshareholders.Weplantoissuenew_________inordertofinanceexpansioninAsia.Wealsoplantoincreaseour_____________inplantandequipmentbeforeenteringtheChinesemarket.WeareparticularlypleasedwithourperformanceinFranceandGermanywhere__________haveincreased.Asaresultofusinganewdistributor,ourcostsfell,givingusa_______________of40percentonourmainproductline.Wewilluseanyextracashtoreducethelevelofour_______.OurperformanceinItalyshouldimprovesignificantlyfollowingthe____________ofourbiggestcompetitor.However,weshouldnotbecometoosatisfiedwithoursharepriceaseconomicconditionsremainuncertainandthe___________willcontinuetoreflectthis.Sharepriceswillnotriseintheshortterm.CCompletethisreportPre-taxprofitsforecastrecessionearningspersharedividendsharesinvestmentprofitsgrossmargindebtbankruptcyrevenuesListeningRaisingbusinesscapitalAHughCampbellisthefounderofGPCapital,aLondon-basedfinancefirmwhichraisesmoneyforentrepreneurs.Listentothefirstpartoftheinterviewandcompletethechart.TypeofbusinessTypeofinvestorBusinesssetupbynewentrepreneursBusinessborrowinguptoBusinessborrowingmorethan…BanksPrivateinvestorsVenturecapitalistsListeningRaisingbusinesscapitalBListentothesecondpartoftheinterviewandanswerthesequestions.1AccordingtoHugh,whichthreeareasdoventurecapitalistslookatwhenselectingcompaniestoinvestin?2Whattypeofmarketisgoodtoinvestinandwhy?3Whathel