UNIT 2

Whos who in finance

Match each job title on the left with the correct definition on the right. Use the grid below:
1. tax inspector a) the person who is responsible for an individual bank
2. tax consultant b) someone who advises people on how to manage their
financial affairs
. bank manager c) someone who prepares an individual!s "or a
compan#!s) tax return
$. commodit# trader d) the person who is responsible for the financial side of
running a business
%. accountant e) a government official who checks that #ou are pa#ing
enough tax
&. finance director f) the person who finds #ou the best insurance polic# at
the best price
'. market anal#st g) someone who bu#s and sells stocks for clients and
charges a commission
(. financial advisor h) someone who advises #ou or a compan# on how to
pa# less tax
). insurance broker i) someone who comments on business and share prices
in a particular sector of the econom#
1*. stockbroker j) someone who bu#s large +uantities of goods,
especiall# food products such as tea, coffee, and
cereals, or raw materials such as wood, or metals.
Cash terms
-ead the definitions below and then complete the phrases that follow b# combining an
appropriate word from the box with cash.

1. .mall amounts of mone# in notes and coins for
regular, small purchases. ////////////cash
1
advance budget deliver# flow hard pett#
price read# settlement
2. Mone# in notes and coins, not che+ues or credit
card transfers ////////////cash
. 0ash which comes into a compan# from sales,
after costs, overheads, etc. cash////////////
$. 1a#ment when the customer receives the goods cash on /////////
%. 1lan of cash income and expenditure cash////////////
&. 2 loan in cash against a future pa#ment cash////////////
'. 3otes and coins available for immediate expenditure ////////////cash
(. 1a#ment of a bill with cash cash////////////
). 2 low price for pa#ment in cash cash////////////
Key terms in banking
0omplete the words below to match the given meanings:
1. 4he person to whom the che+ue is written p/ / / /
2. Mone# provided b# a bank, to a customer, for an
agreed purpose l / / /
. 2 bank which offers a full range of services to individuals
and companies c/m/ / / / / /l b/ / /
$. 2 t#pe of bank with a strong local or regional identit#,
mainl# used b# small, private investors, who get interest
on their deposits s/ / / / / / b/ / /
%. 2n instruction from one bank to another bank to another
bank asking it to make a pa#ment to a supplier / / /k d/ / / /
&. 2n agreement that an account can remain in debit up to
a certain amount for an agreed period of time. o/ / / / / / / /
'. 4he time taken from when a che+ue is presented to a bank
to when the receiving account is credited c/ / /r/ / /e
(. 5ees charged b# a bank for services provided / /n/ c/ / / / /s
). 2n instruction from a customer to a bank to make a regular
pa#ment to a creditor. 6nstructions to alter the dates or the
pa#ments must come from the customer. s/ / / / / /g o/ / /r
2
1*. 2 computer printout sent b# a bank to a customer,
showing recent activit# on his7her account. s/ / / / / / /t
11. 4he lowest level of interest that a bank changes for
lending mone# b/ / / r/ / /
12. 0onducting banking services from a computer using the
bank!s website i/ / / / / / t b/ / / / / /
The balance sheet
Match the words and phrases from the left with the correct definition on the right.
1. intangible assets a) the mone# paid to shareholders out of profits
2. fixed assets b) regular costs and mone# owed
. li+uidit# c) an# investments, che+ues, bank deposits or stock that
can easil# be converted into cash
$. depreciation d) assets which can be used to make immediate pa#ments
%. current assets e) propert#, land and e+uipment which is not normall#
intended for immediate sale
&. dividend f) brand names, patents, rights, trade marks and licenses
which ma# be the major part of a compan#!s wealth
'. liabilities g) the total amount borrowed from a bank
(. li+uid assets h) the abilit# of a compan# to pa# suppliers, emplo#ees,
shareholders, tax authorities, etc.
). overdraft i) the notional fall of value of e+uipment over time
Key terms in measuring financial performance
0hange the underlined words or phrases in the sentences below to other words or phrases that
have a similar meaning.

1. Unpredictable and exceptional costs should be a separate item in the financial report.
2. 4he trading income needs to increase each #ear so that the compan# can make
decisions to bu# new plant and e+uipment.
. 4he compan# accounts have been checked and approved b# an independent financial
expert.
$. .hareholders expect to see the short description of the compan#!s financial position.
%. 6ncome during the present tax #ear is less than last #ear.
&. 1re8tax earnings are down.
'. 4he total value of a compan# once the liabilities have been paid.

abbreviated accounts 7 capital investment 7 consolidated 7 debts 7 e+uit#

extraordinar# items 7 gross 7 li+uid assets 7 operating income 7 revenue
(. 2 successful compan# needs propert# and investments that can be easil# converted
into cash.
Operations control
2 ke# aspect of managing compan# finances is keeping control of operations. 9perations
means all aspects of organi:ational activit#. -ead the text below, then match the underlined
phrases to one of the terms from a ; i

a) a focus on the +ualit# of inputs in the production process
b) anal#sis of each separate product as a separate cost centre
c) goods in storage
d) gross profit margin
e) planning, controlling and monitoring all the activities of the business, so that
efficienc# is maintained, waste is cut to a minimum, +ualit# is enhanced,
customer satisfaction improves and profitabilit# goes up.
f) polic# of taking deliver# of goods onl# when the# can be used, and producing
to order
g) monitoring +ualit# after the production or output of service
$
Operational control brings
financial rewards
Man# businesses and organi:ations have a strategic approach to
management. <ood operational control is essential. 9ne important tool
is the strategic business unit ".=U). >ith this approach, it is possible
to see the individual contribution that each product makes to the
overall compan# profitabilit#.
2 further useful tool is the idea of the break8even point. Using this
tool, prices ma# be raised or cut, but with a proper understanding of
the effect.
=usinesses should also make sure that that there is a continuall# low
level of inventor#.
?olding components or finished products is a waste of resources. 6t
is better to operate a just8in8time "@64) approach. .torage is therefore
kept to a minimum.
0ontrol operations should focus on +ualit#, service, efficienc#, and
effective evaluation of the processes involved. 4here are three kinds of
operational control: precontrol, concurrent control and postcontrol.
4he benefits of good operational control are shown in terms of
increased profit and long term securit# for the business.
h) evaluation of the conversion of inputs to outputs as it happens
i) demonstrating the volume re+uired at a certain price to produce the re+uired
profit.

Professional history
0harle# Aim tells us about his professional histor# up to now. 0omplete the sentences with
verbs from the box. Make sure the verbs are in the right tense.

1. 6 went to college in the .tates but got bored so 6 /////////////////////// after two
#ears without a degree.
2. 6 ///////////////////////a compan# making computer games.
. 2fter six months 6 was //////////////////////// to the post of chief games
designer.
$. 6 ///////////////////// two #ears there learning the business.
%. 4hen 6 //////////////////////to a bigger games compan# for more mone# but 6
hated it.
&. .o 6 decided to /////////////////////m# own compan#.
'. >ith m# partner, Mario 0arter, 6 co8/////////////////////// the software for a
game called Sudden Death.
(. 6t /////////////////////a million copies in its first #ear.
). >e ///////////////////// another games compan# in @apan with the mone# we
made.
1*. 3ow 6 ////////////////////// the compan# in the .tates.
11. 2nd Mario ///////////////////// the compan# in @apan.
12. 3ow 6!d like to ////////////////////// a #ear ////////////////// to learn
about website design.
%
bu# drop out join look after move promote
run sell set up spend take off write