€ Banking and Finance - Financial Vocabulary



Malena Erin

Malena Erin (38)

Malena Erin
I speak:
Spanish, Catalan
I learn:
English, German, French, Italian
Busuu berries :
17386

3. Financing A Business

There are many different ways in which a company can get the credit it needs to finance itself. Look at these definitions of three very common options and rearrange the letters to find out what they are called.

1. R H S A E

It is a particular separate part or portion into which the capital of a company is divided. Ownership of such a portion gives the holder the right to receive part of the company's profits and to participate in its management. This type of financing is a form of equity financing.

2. O D N B

It is a document issued by a government or a company borrowing money from the public, stating the existence of a debt and the amount owing to the holder who must show this document in order to obtain repayment of the loan. This type of financing is a form of debt financing.

3. K N B A / I C T E D R

It is any arrangement with a bank to lend or advance money to a client. The money may be kept in a bank account ready for the borrower to draw on, or the arrangement may be that the bank agrees to accept and pay bills of exchange for its client. This is another form of debt financing.

Carol Ocell

Carol Ocell (39)

Carol Ocell
I speak:
Spanish, Catalan
I learn:
Chinese
Busuu berries :
126

3. 1-SHARE

    2-BOND

    3-BANK CREDIT

Malena Erin

Malena Erin (38)

Malena Erin
I speak:
Spanish, Catalan
I learn:
English, German, French, Italian
Busuu berries :
17386

Good job Carol!

JohannaT.

JohannaT. (39)

JohannaT.
I speak:
Spanish
I learn:
English
Busuu berries :
11256

3. Financing A Business

There are many different ways in which a company can get the credit it needs to finance itself. Look at these definitions of three very common options and rearrange the letters to find out what they are called.

 

1. SHARE

It is a particular separate part or portion into which the capital of a company is divided. Ownership of such a portion gives the holder the right to receive part of the company's profits and to participate in its management. This type of financing is a form of equity financing.

2. BOND

It is a document issued by a government or a company borrowing money from the public, stating the existence of a debt and the amount owing to the holder who must show this document in order to obtain repayment of the loan. This type of financing is a form of debt financing.

3. BANK CREDIT

It is any arrangement with a bank to lend or advance money to a client. The money may be kept in a bank account ready for the borrower to draw on, or the arrangement may be that the bank agrees to accept and pay bills of exchange for its client. This is another form of debt financing. 

Malena Erin

Malena Erin (38)

Malena Erin
I speak:
Spanish, Catalan
I learn:
English, German, French, Italian
Busuu berries :
17386

Well done Johanna!

Malena Erin

Malena Erin (38)

Malena Erin
I speak:
Spanish, Catalan
I learn:
English, German, French, Italian
Busuu berries :
17386

4. Customer Credit Tips

Read this advice from financial consultant Lauren Horowitz about how to avoid customer credit headaches and complete it with these words:

ask     offer     evaluate     state     take out    set

The first thing you have to do when thinking about offering credit to your customers is to (1)_____ the risk involved. This means finding out as much as you can about a company or a private individual beforehand to make sure that they will be able to pay you back.

It's also a good idea to (2)_____ insurance just in case some people don't repay you - at least if you are insured your loss will be covered.

Then you need to (3)_____ a credit limit and stick by it. Don't be soft and let hard luck stories about your customers’ financial problems lead you into lending them more money.

(4) _____ your customers to pay a percentage of the total value of the invoice when they take possession of the godos and always clearly  (5) _____ credit terms, such as interest rates and pay-by dates, on your invoices so that there are no misunderstandings later on.

Finally you can (6) _____ your customers a discount if they do pay on time – after all, there’s no better incentive to prompt payment than the knowledge that it means you will pay less!

Carol Ocell

Carol Ocell (39)

Carol Ocell
I speak:
Spanish, Catalan
I learn:
Chinese
Busuu berries :
126

Hello Malena!

Here are my answers:

1. evalutate

2. ask

3. set

4. ask

5. take out

6. offer

Malena Erin

Malena Erin (38)

Malena Erin
I speak:
Spanish, Catalan
I learn:
English, German, French, Italian
Busuu berries :
17386

Hi Carol! Check your answers:

Exercise 4 - Answer Key

    1- evalutate

    2- take out

    3- set

    4- ask

    5- state

    6-offer

Malena Erin

Malena Erin (38)

Malena Erin
I speak:
Spanish, Catalan
I learn:
English, German, French, Italian
Busuu berries :
17386

5. Money, Money, Money!

Read the text about finance and business and complete it by choosing the better of the two alternatives in italics:

At the beginning of the financial year a company prepares a (1) preplan / budget to stablish how much it can spend and (2) invert / invest.

How much a company can spend will depen on factors such as how much money comes in from (3) turnover / overheads and how much is paid out on costs.

If the company's accounts show (4) profits / benefits are up, a comany can usually afford to spend more.

However, very often extra money (5) earned / won is needed to pay off (6) dues / debts.

Most companies borrow money in some form or other and this money has to be paid back. The sooner a company pays off these (7) loans / lends the better, as most of them have high (8) rates / taxes of interest and paying interest over a long period of time is a (9) waste / lost of money.

Carol Ocell

Carol Ocell (39)

Carol Ocell
I speak:
Spanish, Catalan
I learn:
Chinese
Busuu berries :
126

Hello Malena! This is my answer:

At the beginning of the financial year a company prepares a (1) budget to stablish how much it can spend and (2) invest.

How much a company can spend will depen on factors such as how much money comes in from (3) turnover  and how much is paid out on costs.

If the company's accounts show (4) profits are up, a comany can usually afford to spend more.

However, very often extra money (5) earned is needed to pay off (6) dues.

Most companies borrow money in some form or other and this money has to be paid back. The sooner a company pays off these (7) loans the better, as most of them have high (8) rates of interest and paying interest over a long period of time is a (9) lost of money.