Exercises

1. Answer the questions.

1. What financial concerns face every enterprise?

2. What problems do finance managers face daily?

3. What does financial management involve?

4. What are financial managers concerned with?

5. What are the major components of a balance sheet?

6. How the finance function is most commonly organized?

2. Find in the text English equivalents for the following Ukrainian phrases:

Керування фінансовою діяльністю; на вигідних умовах; ефективно використовувати фінансові засоби; здобувати активи; готівка, яка необхідна; злиття та поглинання; дивідендна політика; бути підданим риску; керування загальними засобами; керування поточними активами; керування оборотними засобами; керування короткостроковими зобов’язаннями; керування дебіторською заборгованістю; керування запасами; структура капіталу; фінансова звітність; балансовий звіт; звіт про прибутки та збитки; основні засоби; оборотні засоби; рахунки дебіторів; векселя до отримання; виробництво, яке не завершене; заставна;кредиторська заборгованість; векселя до оплати; витрати, які нараховані; прибутки майбутніх років; частина акціонерного капіталу, яку оплатили; нерозподілені прибутки; власний капітал; основні фонди; оборотний капітал.

3. Think of the verbs that are commonly used with:

Funds, financing, assets, inventory, cash, merger, dividends, liquid assets, business, risk, return.

4. Think of the nouns that are most often used with:

To acquire, to finance, to borrow, to distribute, to hold, to measure, to manage.

5. Think of the word combinations with these words:

Assets, capital, to manage, liabilities, ratio, shares, cost, return, cash, value.

6. Make your own sentences with any five word combinations from 4 and 5.

7. Match the verbs from (a) with nouns from (b) below:

a) to maximize b) services

to perform company

to delegate cash

to acquire outlays

to reduce value

to generate cash flow

to evaluate production facilities

to expand calculation

to calculate authority

to adjust shareholder wealth

to manage inventories

8. Form adjectives and nouns from these verbs:

To change, to manage, to value, to market, to rely, to depend, to improve, to import, to export, to perform, to delegate, to reduce, to evaluate, to expand.

9. Make up sentences putting the words in the correct order.

1. The, aim, the, managers, financial, of, is, maximize, to, of, the, firm, value, its, owners, for, the.

2. The, first, of, the, balance, component, sheet, an, of, enterprise, assets, is, its.

3. Assets, the, are, resources, by, the, enterprise, owned.

4. Fixed, are, purchased, assets, for, use, assets, the, in, business, a, on, basis, permanent.

5. Current, are, assets, in, short-term, nature.

6. The, major, second, of, the, component, sheet, is, balance, liabilities, the, of, enterprise.

7. The, major, third, of, the, component, sheet, is, balance, the, equity, owners`.

8. Fixed, is, capital, tied, in, up, capital, assets, capital, fixed.

10. Complete the sentences with the following words: assets, fixed assets, current assets, liabilities of the enterprise, the owners` equity, paid-up capital, retained earnings, capital, fixed capital, working capital.

1. The owners' equity may consist of two elements:….

2. The second major component of the balance sheet is…

3. The first major component of the balance sheet of an enterprise is its…

4. The third major component of a balance sheet is …

5. ….is capital tied up in fixed assets.

6. …is the store of accumulated wealth contributed to the firm by its proprietors.

7. ….are also known as liquid assets and include cash, marketable securities, accounts receivable (debtors), notes/bills receivable and inventory.

8. …..are assets purchased for use in the business on a permanent basis.

9. ….is the capital available for working the business.