2. BUSINESS FINANCE PROFESSIONAL ENGLISH IN USE FOR FINANCE

 

PROFESSIONAL ENGLISH IN USE FOR FINANCE 2. BUSINESS FINANCE

 

A Capital When people want to set up or start a company, they need money, called capital. Companies can borrow this money, called a loan from banks. The loan must be paid back with interest: the amount paid to borrow the money. Capital can also come from B Revenue All the money coming into a company during a given period is revenue. Revenue minus the cost of sales and operating expenses, such as rent and salaries, is known as profit, C Financial statements Companies give information about their financial situation in financial statements. The balance sheet shows the company’s assets – the things it owns; its liabilities – the money it owes; and its capital. The profit and loss account shows the company’s revenues and expenses during a particular period, such as three months or a year.   EXERCISES 2.1 Complete the crossword. Look at A, B, and C opposite to help you.   Across 3 Small companies often try to get bank loans when they need to __________ money. (6) 5 We don’t have sufficient __________ to build a completely new factory. (5) 7 and 6 down. Details of a company’s liabilities are shown on the __________ (7,5)   Down 1 The profit and ___________ account shows if a company is receiving more money than its spending. (4) 2 If you don’t like taking risks, you should only ___________ in very successful companies. (6) 4 A company’s retained earnings belong to its ___________. (6)

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