MODULE IV BUSINESS AND FINANCE

LESSON 1
Text: Costs. Assets and Liabilities
Grammar: Reported Questions, Orders, Requests
Terms to remember:
costs • витрати, видатки; вартість,
собівартість
profitability • прибутковість, рентабельність
output • продукція; випуск,
виготовлення; обсяг
виробництва; продуктивність
fixed costs • основні витрати
variable costs • змінні витрати
direct costs • прямі витрати
indirect costs • непрямі, посередні витрати
overhead • накладні витрати
costs/overheads
expenses/expenditure • витрати, видатки
assets and liabilities • активи та пасиви
fixed assets • неліквідні активи; основний
капітал
current assets • поточні оборотні активи
(кошти), оборотний капітал
receivables • рахунки дебіторів; дебітори,
дебіторська заборгованість
deposit • депозит, вклад у банку
generate, (v) • створювати
long-term liabilities • довгострокові зобов’язання
(пасиви)
current liabilities • короткострокові зобов’язання
(пасиви)
be due for (v) • бути зобов’язаним; підлягати
виплаті
Costs. Assets and Liabilities
The money that a business spends in order to produce goods or
services is its costs. Companies need to control and reduce costs to
ensure profitability. Different businesses have different cost
structures and define and calculate their costs in different ways. One
way of classifying the costs of a business is to relate them to the
output of the firm.
Fixed costs are those which remain unchanged whatever the
level of output, e.g. rent, heating, interest charges, salaries; variable
costs change directly with the output of the business, e.g. materials.
Direct costs are directly related to the things produced. In
manufacturing, for example, direct costs include raw materials and
wages.
 Indirect costs may include things like social security charges on
top of the wages.
Overhead costs or overheads are used to mean different
things, but usually cover all the regular non-production costs of
running a business, such as salaries and telephone bills; they may
include the cost of marketing.
Costs are also referred to as expenses or expenditure.
Things of value owned by a firm are its assets. Fixed assets
are long-term assets which are for use in the business and not for re-
sale (land, buildings, furniture, equipment, etc.)
Current assets are used in the course of business. They
include cash, receivables, bank deposits and investments in other
companies.
The assets help generate the income of the company.
Liabilities are what a business owes to those outside the
business (suppliers, lenders, etc.).
Liabilities are classified as either long-term liabilities which
are due for repayment after more than one year, or current
liabilities which are short-term debts and debts to suppliers the
company expects to pay within one year.

Exercises in Word Study

Ex.1. Form verbs from the following nouns:
expenditure, receivables, generation, cost, definition, calculation,
investment, classification, repayment, expectation.
Ex.2. Give the English for:
виробляти товари та послуги; витрати; структура витрат;
підраховувати витрати; основні витрати; обсяг виробництва;
заробітна плата; змінні витрати; прямі витрати; сировина;
непрямі витрати; накладні витрати; активи та пасиви; неліквідні
активи; перепродаж; поточні оборотні активи; готівка; рахунки
дебіторів; дохід компанії; довгострокові (короткострокові)
зобов’язання; борг, прибутковість.
Ex.3. Match words from list A with words from list B that
have a similar meaning:
A B
current assets expenditure
output possess
change alter
remain production
produce short-term liabilities
long-term liabilities deferred liabilities
current liabilities manufacture
fixed assets stay
own capital assets
expenses circulating assets
 Ex.4. Find suitable opposites to the following words and
phrases:
assets, to own, current liabilities, fixed assets, withdrawal,
bottom, revenue.

Ex.5. Match the nouns in the left hand column with the
verbs in the right hand column:
increase costs debt
limit costs
maintain output
debt reduce debt
expand costs
discharge debt
be in debts
costs repay
run into debt
write off debt
calculate costs
output estimate costs debt
incur
offset costs
save output
the company have to reduce
unexpected costs in order to be
able to pay salaries to staff
the company has faced
unexpected costs
the company have reached the
bottom of it economical level
 Ex.6. Study the collocations below. Check any unknown
words in a dictionary and translate them into
Ukrainian.
a) budgeted, escalating, estimated, increasing, rising, costs
unexpected, unforeseen
b) bring down, calculate, cut, figure out, lower, meet, costs
pay, reduce, work out
Ex.7. Look at the words and phrases in the box. Match them
with the correct definition from the list below.

• the money that a business spends in order to produce goods or

services;
• the quantity of goods produced;
• the money spent to run a business, such as rents, salaries, heat,
etc;
• items of value to a person, business, or institution;
• money owed by a company; a debt;
• money that is owed to a business;
• a sum of money paid into a bank;
• an amount of money spent;
• debts that are payable on demand or within one year;
• money owed that does not have to be repaid until some future
date;
• the cost of materials, labour, etc. involved in making a product;
• a company’s ability to make a profit.

Ex.8. Write the appropriate word or phrase in the following

spaces. Translate the sentences into Ukrainian.
• We had to increase prices this year just to cover our ….debts
• Factory workers have increased …output, production by 10 %.
• It took him years to pay off all his debts… .
• …estimated costs are bills that the company expects to pay in the
near future.
• … include rent.
• Updating these machines will increase our …profit, output this
year.
• The company does not have enough money to meet its … .
• He is …in charge, liable to pay his debts.
• The assets help … the income of the company.
• The company was forced to sell off its … .
• Telephone bills, payroll, and rent are some of our monthly
… .overheads

Ex.9. Fill in the missing prepositions:

Assets
Current assets are cash and other assets that can be quickly
converted …into cash or that will be used within… one year. Cash is
the most liquid asset, so it is listed first. Following that are stocks,
bonds, and so on – that can be converted into… cash in… a matter
…of days. Next are the firm’s receivables.
Fixed assets are assets that will be held or used …for a period
longer than one year. They generally include land, buildings, and
equipment.
Intangible assets are assets that do not exist physically but that
have a value based …on legal rights or advantages that they confer
…to a firm. They include patents, copyrights, trademarks. They are
…on value of… the firm … a number …of years.
(to, on (2), for (2), of (3), in, into (2), within)
Ex.10. These words are often confused:
price worth cost value
price – the amount of money you have to pay (usually for
goods) in order to buy them;
worth – adj. having a value or a price;

cost – n. the amount of money paid or charged for goods or

services;
– v. to be the price of something;
 value – the amount that something is worth, measured especially
in money.
Complete these sentences using the correct form of one of
the words above. Make sentences of your own to show that
you understand the difference in their meaning.
• She bought this coat in the sales for a very good …price .
• I thought this bracelet was made of gold, but it turned out to be …
worthless .
• Will the …value, price of my property go down if they build a plant
nearby?
• This dress was a real bargain; it only costs … me $20.
• The …value of keeping a person in prison for a year is
enormous.
• I’ll send you a cheque to cover the …price for the stamps.
• That shop was always empty because the …prices were too high.
• In London the …value of living is very expensive.
• That ring has great …worth, value .
• That new magazine is certainly …costs the money.
• Gold coins are …valuable .
• His offering …price for the apartment was $150,000.
• We wanted to invest in a new production facility but the … was
prohibitive.
• It …costs a lot to buy real estate in London.
• Returned goods can be exchanged for goods of an equivalent …
value .
Ex.11. Build your vocabulary. Learn phrasal verbs for
business!
to cut back (on something) – to reduce something such as the
amount somebody spends or
produces.
If a company or an organization cuts back, it reduces the amount
of something it produces.
Read these sentences carefully and translate them into
Ukrainian.
• The company will need to cut back if it wants to meet its
spending targets. компанії знадобиться знизити витрати якщо
вона збирається досягнути цілей на витрати
• A lot of businesses have cut back on managerial staff.
•
• During the recession, many companies cut back technology
spending.
• The company has cut output back by 2%.
• Our expenses are far too high – we’ll have to cut them back.
• Production has been cut back dramatically.
• Consumers cut back on their borrowing in November.
• In order to reduce inflation, the government must cut back on
spending.
• The firm’s production will be cut back in the next few years.
• To cut costs, we cut back on staff.
Exercises in Comprehension
Ex.1. Answer the following questions:
• What are costs?
• Do different businesses have similar cost structures?
• How can the costs be classified?
• What are fixed costs?
• Do variable costs remain unchanged whatever the level of output?
• What are direct costs related to?
• What do indirect costs include?
• What do overheads mean?
• What are assets?
• How are fixed assets distinguished from current assets?
• What are liabilities?
• How are liabilities classified?
• What is the difference between long-term liabilities and current
liabilities?
Ex.2. Choose the correct variant.
• the salary of an Accounts Manager (fixed/variable costs)
• rent and heating (fixed/variable costs)
• running a business (direct/overhead costs)
• materials used in making some goods (indirect/variable costs)
Ex.3. Use the terms in the box to complete the paragraph.

A business’s ________ are the money that it spends in order to

produce goods or services. Businesses of different kinds have
different _______ and define, calculate and refer to their costs in
different ways. _______ do not vary in relation to output, whereas
_______ do. _______ are directly related to the things produced,
e.g. raw materials and wages. ________ may include things like
social security charges on top of wages. Overhead costs, or
_________ usually cover the non-production costs of running
a business such as telephone bills, and can be extended to cover
R&D activities, for example.
Ex.4. Sum up what you remember about:
• costs
• assets
• liabilities

Grammar Revision
Reported Questions. Requests. Orders.
When you report a question, you use the same word order
as in the statement. You make the same tense and other changes
as you do for reported statements:
 • Wh questions:
«Where is Mary, Tom?» She asked Tom where Mary was.
• Yes/No questions:
«Are you going with us, Tom?» – She asked if/whether Tom
was going with them.
• Requests
«Would you pass the book please, Tom?
She asked Tom if he would pass her the book.
She asked Tom to pass her the book.
• Orders:
«Go to bed!» – Mary’s mother told her to go to bed.
Ex.1. Rewrite these sentences, changing the direct speech to
reported speech.
• «Who has just dropped a $ 10 note?» I asked.
• «What happened to your partner?» asked one of the men.
• «Why do the prices go up so often?» she wondered.
• «Have you got a work permit?» Ann wanted to know.
• «Are you interested in advertising?» asked Mary.
• «Would you like to join our company?» she said.
• «Are you leaving today or tomorrow morning?» asked his
secretary.
• «Don’t watch late-night horror movies», I warned them
• «Read the contract before you sign it,» he said to his client.
• «Buy a new car,» I advised him.
• «Don’t drive so fast,» she begged him.
• «Don’t wait till tomorrow,» said the advertisement.
• «Could you translate this for me, please?» I asked the agent.
• «Could I have the weekend off?» she asked her boss.
• «Would you mind paying cash?» said the salesgirl when he took
out his cheque-book.
• «Why don’t you trust her?» I asked Mary.
Ex.2. Rewrite these sentences, changing the reported speech
to direct speech.
• She said that her corporation had become bankrupt and its stock
was of no value anymore.
• I asked her if she’d like to take my pen but she thanked me.
• He wanted to know if I was going to calculate the indirect costs.
• My employer hoped I would not be offended if he told me that I
would do better in some other kind of job.
• He asked me how long it had taken me to complete the job.
• I wondered whether he had bought a guidebook to London.
• He asked what we were discussing.
• I wondered if they would solve that problem at the meeting.
• He asked the manager to accept his resignation.
• She asked me when I would be in Kyiv.
• The court ordered the company to pay all their debts before
1 September.
• He wanted to know when the new training program would be
presented.
• She wondered where we had held the conference the previous year.
• Helen asked Tom if he had got a car.
• He promised her that if she attended the conference the following
week, she would hear his new theory about classification of the
costs.
• He couldn’t understand how I managed on my salary.
Ex.3. Rewrite the passage in Direct Speech.
Joan worked in a shop selling gramophone records. One day a
middle-aged woman came in, sat on a stool in front of the counter
and smiled at Joan. Addressing Joan familiarly, she said she wanted
a record-one she had heard on the radio that morning. Joan asked
what the record was called. The woman shook her head, and said
she didn’t remember, though she would know it if she heard it. She
suggested that Joan should play her some. Joan pointed out that they
had hundreds of records in stock, and that it would take a very long
time to play her even a little of each. The woman looked very
unhappy, but suddenly her face brightened. She had just
remembered something, she said: the music she wanted came from a
play in which there was a woman who spoke very badly, but who
after a time learnt to talk beautifully. Joan asked if it could be from
«My Fair Lady». The woman cried out that that was it. She wished
Joan had thought of it earlier instead of wasting time asking silly
questions. She supposed Joan was new to the job.
(From B.D. Graver. Advanced English Practice,
Oxford University Press)

Speech and Discussion

Ex.1. Define the following terms:
• costs
• assets
• liabilities
Ex.2. Explain how a firm can define and calculate its costs.
Ex.3. Discuss with your groupmates which is more important
for a business – its assets or liabilities. Why?
Ex.4. What do you think are the most important things that
a business spends money on?
Ex.5. Familiarize yourself with the following idioms.
Consult your dictionary and translate the sentences
into Ukrainian. Think of situations where you could
use them.
• You’d better not rely on him. When it comes to business he’ll
show the white feather.
• We were surprised at Jack turning up in our office. We saw him
here once in a blue moon.
• Stop arguing. We’d better read the paper. Here it is put in black
and white.
• It’s time we shut up shop.
• Reading between the lines of Miss Prout’s reference, I have the
impression that her employer was not satisfied with her work,
although he doesn’t actually say so.
Ex.6. Comment on the following:
«A small debt produces a debtor; a large one an enemy.»
(Syrus)
LESSON 2
Text: Raising Finance
Grammar: First Conditional
Terms to remember:
raise finance (v) • залучати фінанси
run costs (v) • керувати, управляти витратами
financial reserves • фінансові резерви
extra capital • додатковий капітал
premises • приміщення; будинок з
прилеглими будівлями і ділянкою
working capital • оборотний капітал; оборотні
фонди
preserve (v) • зберігати; підтримувати
cash flow • потік готівки
time-lag • відставання в часі; спізнення
liquidity • ліквідність
retained profit • нерозподілений прибуток
borrowing • позика (коштів); кредит
grant • дотація; субсидія, грант; грошова
допомога
loan • позика
tax • податок
distribute (v) • розподіляти; роздавати
lender • кредитор, позикодавець
leasing • лізинг, довгострокова оренда
hire purchase • купівля у розстрочку
debt factoring • борговий факторинг
share issue розміщення, випуск нових цінних
share flotation •
паперів на вільний ринок
share offering

Raising Finance
All firms need capital to stay in business. Capital is the money
that a company uses to operate and develop. As well as money for
running costs such as wages, material and rent, companies need to
have financial reserves. Extra capital may be needed to expand
by buying new premises or developing new products. Firms may
also need working capital (money which is available for use
immediately) to preserve cash flow through the business, for instance
if there is tіme-lag between producing goods and services and
getting paid for them. A firm without sufficient working capital has
liquidity problems.
There are four main ways of obtaining capital:
• retained profit
• borrowing
• share issues
• government grants and loans
Retained profit is the amount of profit after tax that directors of
a business decide not to distribute to their shareholders, but to keep
within the business.
Borrowing money usually accounts for 20-30 percent of firms’
capital. There are several types of lenders to business: commercial
banks, leasing, hire purchase, debt factoring, the Stock Exchange.
When companies raise finance by selling shares for the first
time they make share issues, share flotations or share offerings.
The government has a variety of schemes which give grants or
cheap loans to firms for certain purposes.

Exercises in Word Study

Ex.1. Form adjectives from the following nouns:
finance, business, profit, government, commerce, work, reserve.
Ex.2. Give the English for:
залучати фінанси; управляти витратами; мати фінансові
резерви; додатковий капітал, купувати нові приміщення; потік
готівки, виробництво товарів та послуг; здобувати капітал;
нерозподілений прибуток; позика коштів; випуск акцій; урядові
субсидії; податок; акціонери; кредитор; фондова біржа.
Ex.3. Match words from list A with words from list B that
have a similar meaning:
A B
share flotation stockholder
creditor instalment plan
hire purchase lender
shareholder share offering
profit purchase
obtain earnings
preserve enlarge
 buy keep
expand get
Ex.4. Find suitable opposites to the following words:
borrowing, profit, to sell, cheap, lender.
Ex.5. Match the nouns in the left hand column with the
verbs in the right hand column:
arrange
capital repay
take out
loan raise
supply
apply for
finance borrow
invest
lend
Ex.6. Look at the words and phrases in the box. Match them
with the correct definition from the list below.

• money as a resource for business and other activities;

• the capital from a business that is set aside from profit or from
shares sold at higher than their original price;
• the amount of money moving into and out of a business at a
particular point in time;
• part of the annual profit that is not paid out to shareholders as
dividend, but reinvested in the company;
• receiving money from a person, a bank, or other financial
organization and agreeing to pay it back later, usually with
interest;
• money that has been borrowed and has to be paid back;
• a person or an organization that lends money and charges
interest on the repayments;
• a way of buying goods where the buyer takes the goods and pays
for them in regular instalments over a fixed period of time;
• offering company shares for sale to the public or on a stock
exchange for the first time;
• the amount of short-term capital that a business has available to
meet the day-to-day cash requirements of its operations;
• money given for a specific purpose;
• buildings and the land they occupy.
 Ex.7. Write the appropriate word or phrase in the following
spaces. Translate the sentences into Ukrainian.
• I’d like to pay in …, please.
• The bank agreed to give the company … of $100,000.
• The … in our company is good because we take in much more
money than we spend.
• Our … will provide capital for the planned growth next year.
• I applied at the bank for … at 7% interest.
• The Ford Foundation gave the economist … for research.
• He bought a computer on … .
• A guard asked the stranger to leave the … .
• As Britain recovers from recession, companies will seek to raise
finance through … .
• Goods are … to our major customers first.
• The business will need to increase the level of its … or else
it may face problems with its cash flow.

Ex.8. Fill in the missing prepositions:

Retained Profit
Retained profit is the amount … profit … tax that directors …
a business decide not to distribute … their shareholders, but to keep
… the business. It is held as an increase … the capital and reserves
… the business, and will be used to expand the operation … the
business … the purchase … assets. Retained profits form the most
important source … finance … business expansion.
(for, through, in, within, to, of (6), after)
Ex.9. These words are often confused:
to lend – to borrow
to lend is used when it would be possible to say «give»
to borrow is used when it would be possible to say «take»
Complete these sentences using the correct form of one
of the words above.
Banks charge interest for money they _______. That means a
person who ______ a certain amount must pay back more than he
_______. Sometimes debtors must _______ money from a second
bank to pay back the money ______ from the first bank within an
agreed period. The ______ policies of banks differ widely. Some
banks do not _____ money to private persons. Practically all banks,
however, require a security before they _______ any money at all.
Ex.10. Build your vocabulary. Learn phrasal verbs for
business!
to bring something in – to make or earn a particular amount
of money
 Read these sentences carefully and translate them
into Ukrainian.
• The deals will bring in more than 5 million.
• The business brought in a good profit.
• The event should have brought more money in from shoppers than
it did.
• They hope the price changes will bring in more cash.
• His job only brought him in a small income.
• The sale might bring in € 1 million if we are lucky.
• He has brought in 80 % of the company sales.
• The changes should bring in much-needed cash.
• The group brought in revenues of $ 105 billion last year.
• How much does she bring in every month?

Exercises in Comprehension
Ex.1. Answer the following questions.
• What do businesses need financial reserves for?
• What do companies need working capital for?
• What are the four main ways of obtaining capital?
• What is meant by the «retained profit»?
• Is retained profit distributed to shareholders?
• What are the main types of lenders to business?
• When do companies make share flotations?
Ex.2. Use the terms in the box to complete the paragraph.

Most businesses increase in size through internal growth, i.e.

they produce more and take on more workers. Businesses also grow
in size through external growth, though, such as buying another
business in a ______. Sometimes growing the business may be the
only way that it can survive. Increasing production can lower unit
costs, for example. In order to survive, it is necessary to have
enough working capital to pay for day-to-day expenses such as
wages or bills. _______ is money used to bridge the gap between
the time products are planned, materials are paid for and the goods
produced, and the time payment is received for them from
customers when they are sold. A firm without sufficient working
capital has ______ problems, and needs to find some form of
_______.
Ex.3. Sum up what you remember about:
• financial reserves;
• retained profit;
• borrowing;
• share flotations;
• grants and loans.
 Grammar Revision
First Conditional:
Form:
if + Present Simple/Continuous, + will + infinitive
Use:
We use the first conditional:
• to talk about a likely situation and its probable result in the future.
If the weather keeps warm, we’ll go to the river.
• to give advice, threats and to make promises.
If I have time, I’ll help you.
Ex.1. Finish these sentences using the first conditional.
• If he washes my car, … .
• If you smoke, … .
• If you need a lot of money, … .
• If you fail your test in math, … .
• If she loses her weight, … .
• If you phone me tonight, … .
• If I go to the party, … .
• If it rains, … .
• If I eat a lot of sweets, … .
• If we get this loan, … .
• If you skip classes, … .
• If you buy a new flat, … .
• If inflation rises, … .
• If I can afford it, … .
• If you feel underpaid … .
Ex.2. Put the verbs in brackets into the correct form.
• If you (see) Mary, tell her I have a message for her.
• If he (refuse) to help, I’ll have to manage without him.
• What will we do if he (not meet) us?
• If I (get) a work permit, I’ll stay for another three weeks.
• If you (help) us, the job will only take an hour.
• If I find his passport, I (phone) him at once.
• If you leave your car unlocked, someone (steal) it.
• Unless she (sell) more, she won’t get much commission.
• If I lend you $ 100, when you (repay) me?
• If we (make) share issues this month, we’ll raise our finance.
• If you manage to get cheap loans, the firm (stay) in business.
• If we (need) extra capital, we’ll apply at the bank for a loan.
• If you (be) in difficulties with money, I’ll help you by all means.
• If I (finish) this work before six, I’ll let you know.
Ex.3. Translate into English:
• Якщо я попрошу його, він допоможе нам одержати цю
позику.
• Вони обговорять це питання, якщо у них буде вільний час.
• Якщо нас запросять на ці переговори, ми будемо
підтримувати вашу стратегію.
 • Ми одержимо цю інформацію вчасно, якщо він відправить її
електронною поштою.
• Якщо він забуде свою обіцянку, я нагадаю йому.
• Якщо прибуток не буде розподілений між акціонерами, вони
будуть незадоволені.
• Якщо ми одержимо цю довгострокову оренду, то відкриємо ще
один гіпермаркет у цьому місті.
• Ми зможемо купити ці нові приміщення, якщо у фірми буде
додатковий капітал.
• Якщо наш вчений отримає грант, він зможе закінчити
дослідження цієї важливої для всього людства проблеми.
• Якщо я куплю цей комп’ютер у розстрочку, то я зможу
заощадити гроші на подорож до Єгипту.

Speech and Discussion

Ex.1. Define the following terms:
• retained profit;
• shareholders;
• share offering.
Ex.2. Interview the financial manager in a large corporation.
Ask him about the ways his corporation obtains
capital.
Ex.3. Discuss with your groupmates which way of obtaining
capital is more suitable for a small firm. Why?
Ex.4. Familiarize yourself with the following idioms.
Consult your dictionary and translate the sentences
into Ukrainian. Think of situations where you could
use them.
• He gave me one of his sandwiches, and I gave him some of my
candy; share and share alike.
• He stole the lion’s share of the company’s profit.
• In my book, you don’t complain about the staff to the boss until
you have discussed it with them first.
• Bob lies for the sake of lying. It has become second nature to
him.
• You’ll give us a bad name if you talk to our customers like that!
Ex.5. Comment on the following:
«Finance is, as it were, the stomach of the country, from which
all the other organs take their tone.»
(W. Gladstone)
 LESSON 3
Text: Financial Centres
Grammar: Second Conditional
Terms to remember:
trade (v) • торгувати (чимось- in;)
stock market • фондова біржа
foreign exchange • валютна біржа
(forex) market
commodity market • товарна біржа
interest rate • позиковий процент/відсоток
raise capital (v) • збільшувати капітал, залучати
капітал
securities • цінні папери
market-maker • дилер, який проводить операції
з цінними паперами
stockbroker • біржовий маклер/брокер
bond • облігація
bond market • ринок облігацій
bull market • ринок акцій, на якому
підвищуються ціни; ринок
«биків»
bear market • ринок акцій, на якому
знижуються ціни; ринок
«ведмедів»

Financial Centres
Financial centres bring together investors and the businesses
that need their investment.
Things traded in financial centres include: securities on the
stock markets; currencies on the foreign exchange or forex
markets, commodities such as cereals, coffee and precious metals
on the commodity markets.
The stock market is the financial centre of any country. It
reflects any change in the economy. It is sensitive to interest rates,
inflation and political events. In a very real sense, it has its fingers
on the pulse of the entire world. Among the most famous stock
markets are the New York Stock Exchange (NYSE or «Wall Street»),
the London Stock Exchange (LSE) and the Deutsche Börse.
The stock exchanges exist to allow investors to buy and sell
shares, and companies to raise capital. They also provide a market
for government loans and securities. On the market, the main
operators are the market-makers who trade in a group of shares,
and stockbrokers who act as agents for their clients. Market-makers
sell to stockbrokers.
A share (BrE) or stock (AmE) is any of the equal parts into
which the capital of a company is divided. Securities are shares and
bonds (official papers given by a company or the government, to
prove that you have lent them money and that they will pay it back
with interest).
The bond market is about ten times bigger than the stock
market. If a government or large company wants to borrow a large
sum of money, it issues a bond and receives the money as a loan
from the institution or individual who buys it. The bond market is
entirely electronic and does not have any physical exchanges.
The foreign exchange market is bigger than all the securities
markets combined. Here, dealers buy and sell currency. Players
include:
• commercial banks
• central banks
• pension funds, etc.
There is a huge amount of speculation in this market.
When prices in a stock market or currency market are rising
people talk about a bull market. It is a situation on the stock or
currency market when people are buying a lot of shares because
they expect that the shares will increase in value and that they will
be able to make a profit by selling them again after a short time.
When prices are falling people talk about a bear market. It is
a situation on the stock or currency market when people are selling a
lot of shares because they expect that the shares will decrease in
value and that they will be able to make a profit by buying them
again after a short time.
Finally, there are the commodity markets. Here, dealers trade
the future price of such things as:
• Energy: crude oil, natural gas, etc.
• Metals: gold, silver, copper, steel, etc.
• Soft commodities: coffee, sugar, grains, livestock.

Exercises in Word Study

Ex.1. Form nouns from the following verbs:
reflect, exist, invest, govern, operate, act, divide, prove.
Ex.2. Give the English for:
торгувати акціями; фондова біржа; товарна біржа; валютна
біржа; дорогоцінні метали; валюта; урядові позики та цінні
папери; біржовий маклер; капітал компанії; облігації; позиковий
відсоток; ринок «биків»; ринок «ведмедів».
Ex.3. Match words from list A with words from list B that
have a similar meaning:
A B
goods confirm
change whole
sensitive permit
 entire foreign currency
allow stock exchange
foreign exchange alteration
securities market perceptive
prove commodities
Ex.4. Find suitable opposites to the following words:
to rise, to borrow, to include, partial, to unite, to prove.
Ex.5. Match the nouns in the left-hand column with the
verbs in the right-hand column:
pay off
redeem
securities retire
deal in
commodities issue
trade in
bonds make
advertise
sell
Ex.6. Look at the words and phrases in the box. Match them
with the correct definition from the list below:

• a market where stocks and shares are bought and sold under fixed
rules, but at prices controlled by supply and demand;
• a place where raw materials and some manufactured goods are
bought and sold;
• a market where foreign currencies are traded;
• a person or organization that buys and sells stocks and shares;
• a certificate of debt;
• shares and bonds;
• a market in which the general level of share prices is rising;
• a market where the general level of share prices is falling;
• the amount of interest that is paid for money at a savings bank, on
a bond, etc;
• a rise in prices and lowering of currency’s value.
Ex.7. Write the appropriate word or phrase in the following
spaces. Translate the sentences into Ukrainian.
• The main international … are based in the USA, Japan, and the
UK.
• The Euro was stronger than the dollar on the … market yesterday.
• Borrowers are encouraged to take out loans while … are low.
• I’ll ask my … to sell these shares for us.
• … try to predict changes in share prices.
• Companies sell … to raise money.
• Her company buys and sells … .
• The … on a car loan is 10 %.
 • … are wholesalers of shares who keep supplies of the shares in
which they deal, making a continuous market for buyers and
sellers.
• Brokers … on stock exchanges.

Ex.8. Fill in the missing prepositions.

When companies are first listed … the Stock Exchange, their
shares are issued, or floated, … a price normally determined … the
company. Existing companies which are already listed may issue
new shares if they need more capital. The issue … new shares is
known as the «primary» market.
The «secondary» market is where shares are bought and sold
once they have been issued. Prices are determined … the operation
… the basic economic laws … supply and demand.
If investors were unable to realise their assets … selling their
shares … the secondary market they would be reluctant to invest …
companies. … turn, companies would be deprived … a major source
… capital. … these reasons there are stock exchanges … most
countries … market economies.
(with, in (3), for, of (5), on (2), by (3), at)
Exercises in Comprehension
Ex.1. Answer the following questions:
• What can be traded in financial centers?
• What is the stock market sensitive to?
• What do stock exchanges exist for?
• What do stock exchanges provide?
• Who are the main operators on the market?
• Who do market-makers sell to?
• What are securities?
• What is a bull market?
• When do people talk about a bear market?
• What is a commodity market?
Ex.2. Sum up what you remember about:
• things traded in financial centres;
• stock exchanges;
• market-makers and stockbrokers;
• securities;
• bond market;
• bull market and bear market.

Grammar Revision
Second Conditional
Form:
If + Past Simple/Continuous, + would +infinitive
 Use:
We use the second conditional:
• to talk about an unlikely or imaginary situation and its result
If I won the lottery, I’d buy a new car.
• in the expression «If I were you, I’d …» to give advice
If I were you, I’d retire.
Ex.1. Finish these sentences using the second conditional.
• If I passed my English exam, … .
• If my friend got promotion, … .
• If he listened to my advice, … .
• If he invested in government bonds, … .
• If I were you, … .
• If the customer complained, … .
• If you knew him better, … .
• If I could help you, … .
• If she were present, … .
• If you didn’t ask me any questions, … .
• If he took better care of his health, … .
• If I saw it with my own eyes, … .
• If I were sacked, … .
• If the government raised taxes, … .
• If you were introduced to the Managing Director, … .
Ex.2. Put the verbs in brackets into the correct form. (All
the sentences refer to the present or future).
• If nothing better (turn up), he would apply for this job.
• I wouldn’t want to live in this city even if I (have) all the money in
the world.
• If you (change) your mind, I would never forgive you.
• If you (study) harder, you would get better marks.
• If I (win) a lot of money, I would feel very happy.
• If I were you, I (be) more careful.
• If it (not be) so late, I would phone him.
• If you really wanted to help, you (can) do it even now.
• If we reached an agreement, we (sign) the contract.
• If market prices (rise), we would talk about a bull market.
• If you (can) send us this information, we would be very grateful.
• Our products (not sell) if we didn’t have a strong sales department.
• If she had more money, she (spend) her summers in Italy.
• If you (provide) a better service, you would get more customers.
• We would save money if we (employ) our own people.
Ex.3. Answer these questions with a conditional sentence.
What would you do if …
• … you won lots of money?
• … you were a famous film star?
• … you found a wallet on the ground?
• … you were invited to play a part in a film?
• … you were trying to lose weight?
• … you were to change your job?
• … you saw someone cheating in an exam?
• … you wanted to buy someone a really good present?
• … you were to apply for the manager’s job?
• … you found a job abroad?
• … you were promoted?
• … you were fired?
• … you were asked to work overtime?
• … you were president of a big company?
• … your company’s main competitors offered you a good job?
Ex.4. Translate into English.
• Компанія торгувала б своїми акціями, якби мала дозвіл.
• Вони б знизили позиковий відсоток, якби компанія
не одержувала такі прибутки.
• Якби не існувало фінансових центрів, компаніям було
б важко збільшувати свій капітал.
• Якби вони продавали цінні папери на фондовій біржі, вони
мали б вищі прибутки.
• Якби ці туристичні послуги надавалися конкуруючими
фірмами, ми б мали кращий вибір.
• Якби ти продав ці акції, то вирішив би усі свої проблеми.
• Якби ця компанія досліджувала ринок більш ретельно, вона
була б більш привабливою для інвесторів.
• Якби попит на цей товар знизився, ми б вилучили його
з ринку.
• Якби у них був вибір, вони б підтримували вітчизняного
виробника.
• Споживачі із задоволенням купували б ваш товар, якби ви
змінили упаковку.
Ex.5. Under what circumstances, if any, would you:
• tell a lie to your parents?
• skip a lecture?
• leave the restaurant without paying the bill?
• lend a large amount of money to a friend?
• give a lift to a complete stranger?
• waste a large amount of money?
• betray you friend?
• leave the university?
Ex.6. Translate the following proverbs and sayings into
Ukrainian. Pay attention to if clauses.
• If wishes were horses, beggars would ride.
• If you speak of the devil, he will appear.
• If you use your head, you may save your feet.
• If nothing ventured, nothing gained.
• If you run two hares, you will catch neither.
• If you lie down with dogs, you will get up with fleas.
• If a man could have half his wishes, he would double his troubles.
• If there were no clouds, we wouldn’t enjoy the sun
• If we could see ourselves as other see us, we would probably
change our views.

Speech and Discussion

 Ex.1. Define the following terms:
• stock market
• commodity market
• foreign exchange market
• bull market
• bear market
Ex.2. Say what you know about stock exchanges in Ukraine.
Do you think stock exchanges are necessary? Is it
usual for ordinary people in Ukraine to own shares?
Ex.3. Familiarize yourself with the following idioms.
Consult your dictionary and translate the sentences
into Ukrainian. Think of situations where you could
use them.
• The work was difficult at first but, after a few weeks, everything
fell into place.
• «It’s not my place to give you advice», the clerk said to the
manager.
• If we cut out all unnecessary expenses, we shall have a reasonable
chance of weathering the storm.
• Charging you € 200 for that simple repair was daylight robbery.
• After months of work, we are beginning to see daylight.
Ex.4. Comment on the following:
«The best entrepreneurs are risk avoiders. They identify the
risk, and then they take actions to minimize the effects of it.»
(Paul Hawken)

LESSON 4
Text: Investments
Grammar: Third Conditional.
Progress Test III (Conditionals).
Terms to remember:
capital goods • засоби виробництва; товари
виробничого призначення
portfolio • портфель цінних паперів
Unit Trust (BrE) • пайовий інвестиційний
фонд/траст
Mutual Fund (AmE) • взаємний фонд;
інвестиційний фонд
fixed rate of interest • фіксована процентна ставка
gilt-edged security /gilt • гарантований цінний папір
(BrE)
treasury bond (AmE) • казначейська облігація
 derivative • похідний інструмент
instrument/derivative
futures • ф’ючерс, терміновий
контракт, термінова угода
deal • угода
option • опціон, угода з премією
(обумовлене виплатою
премії право купити чи
продати цінні папери за
встановленим курсом)
swap • своп, обмін активами чи
зобов’язаннями
suit (v) • влаштовувати, задовольняти

Investments
When we speak about investments we mean the purchase by a
business of new capital or of capital goods such as new machinery.
In the most general sense, the objective of investing is to earn
money with money. When an investor holds the collection of
financial securities we say that he holds portfolio.
Unit Trust (BrE) or Mutual Fund (AmE) is a company that
spreads its investors’ capital over a variety of securities. Investment in a
unit trust/mutual fund reduces the risk for the small investor.
Apart from stocks and shares there are many types of investment
opportunities available. When a company or government wishes to raise
finance it can issue bonds. These are securities offered at a fixed rate of
interest. Bonds issued by the government are called gilt-edged
securities or gilts in the UK, and treasury bonds in the US.
Derivatives or derivative instruments are financial products
such as futures, options and swaps. Futures are contracts that
give the right to buy and sell currencies and commodities at an
agreed time in the future at a price agreed at the time of the deal.
Options are contracts enabling the holder to buy a security at a
fixed price for a limited period. Swaps allow the exchange of one
asset for another to suit both parties.
Companies should always consider diversifying when making
investments. Putting all one’s eggs in one basket is invariably wrong.

Exercises in Word Study

Ex.1. Form verbs from the following nouns:
collection, reduction, product, agreement, investor, holder,
meaning, earnings.
Ex.2. Give the English for:
купівля товарів виробничого призначення; заробляти
гроші; мета інвестування; взаємний фонд; зменшувати ризик;
інвестор; залучати фінанси; випускати облігації; пропонувати
цінні папери за фіксованою процентною ставкою; гарантований
цінний папір; купувати цінні папери за фіксованою ціною;
влаштовувати обидві сторони.
Ex.3. Match words from list A with words from list B that
have a similar meaning:
A B
objective obtainable
mutual fund possibility
reduce shareholder
gilts transaction
deal purchase
buy treasury bonds
investor decrease
opportunity unit trust
available target
Ex.4. Find suitable opposites to the following words and
phrases:
disinvestment, to increase, domestic investment, obstacle,
to forbid, inaccessible.
Ex.5. Match the nouns in the left-hand column with the
verbs in the right-hand column:
analyse
unit trust add to
invest in
portfolio manage
make
gilts conclude
issue
deal trade in
Ex.6. Look at words and phrases in the box. Match them
with the correct definition from the list below.

• a group of different investments held by a private investor, or a

financial organization;
• an organization that manages a fund invested in a wide range of
securities;
• government securities with a fixed interest payable at regular
intervals;
• a bond issued by the US government;
• goods, currency or securities that will be supplied or exchanged on
an agreed future date and for a price fixed in advance;
• the right to buy or sell a fixed quantity of a commodity, currency
or security on a particular date at a particular price;
• the exchange of business asset for another, instead of money;
• a business agreement to buy or sell goods or provide a service;
• an item such as a machine, a building, or a raw material that
is used to manufacture products for sale to consumers;
• a person or an organization that buys property, shares, securities, etc.
in order to sell again to make a profit or to receive money in the
form of interest or dividends.
Ex.7. Write the appropriate word or phrase in the following
spaces. Translate the sentences into Ukrainian.
• … are easier to manage because a group of people do the trading
for you and your money is spread among a variety of different
investments.
• In an attempt to raise finance, the company issued … to public
investors.
• You should diversify your investment … because you have all
your money in one stock.
• Investing in a … reduces risk for small investors.
• The … fell through, ie. no agreement was reached.
• Our … ranges from shares in food companies to shares in the
fashion world.
• A … contract is an order that you place in advance to buy or sell
an asset or commodity.
• More exotic financial products include … such as: options,
futures and swaps.
• These oil shares were a good … .
• People who own stocks and bonds are referred to as ….
• A treasury … may be sold to any individual or corporation.
• Government bonds are considered to be a safe… .

Ex.8. Fill in the missing prepositions and adverbs.

• You can expand your portfolio … investing … a wide range …
stocks and bonds.
• Stockbrokers buy and sell stocks and bonds … their clients.
• If the market is strong, expect a good return … your investment.
• Mutual funds are managed … a group … fund managers who add
all the investor’s money together to invest … a variety of things.
• If inflation remains low, he will make a huge return … his
investment.
• An investment bank is a firm that controls the issue … new
securities.
• Speculation … derivative instruments such … futures, options
and swaps has been criticized … its effects … the stock markets.
• Portfolio is a selection … investments held … an individual or
organization.
• Securities issued … the British Government are called gilts or
gilt-edged securities.
• Unlike a stock, a bond is evidence not … ownership, but … a
loan … a company or … a government.
(to (2), for, as, on (3), on behalf of, of (6), in (3), by (4))

Exercises in Comprehension
 Ex.1. Answer the following questions:
• What do we mean by «investments»?
• What is the objective of investing?
• What is portfolio?
• What services do mutual funds provide?
• What types of investment opportunities exist apart from the stocks
and shares?
• What does the term «gilt-edged security» signify?
• What are derivatives?
• What right do futures contracts give investors?
• What kind of contract enables the holder to buy a security at
a fixed price for a limited period?
• What do swaps allow?
• What should companies always bear in mind when making
an investment?
Ex.2. Match these financial institutions with their descriptions
below: insurance company, investment bank, mutual
fund, pension fund.
• used to protect yourself against risks (money is paid out if
something bad happens) _______
• used by private investors to hold a basket of stocks _________
• used to save money during your working life and then have an
income during retirement ___________
• used by large companies to issue bonds, buy and sell currencies,
manage their portfolio of shares in other companies _________
Ex.3. Sum up what you remember about:
• investments and their objective;
• unit trusts/mutual funds;
• gilts/treasury bonds;
• derivative instruments

Grammar Revision
Third Conditional
Form: if + past perfect, + would have + Participle II
Use:
We use the third conditional:
• to talk about possible situations in the past which didn’t
happen
If you had followed my advice, you would have earned a lot
of money. (but you didn’t)
We can «mix» clauses from second and third conditional
sentences (mixed conditional) if we want to connect a possible
past event with the present or future.
If you had followed my advice (but you didn’t in the past),
you would be rich . (but you aren’t, now)
Ex.1. Choose the most suitable tense:
• Why didn’t you phone me? If you phoned/had phoned me,
 I would have reserved/had reserved a room for you.
• If you organized/had organized your conference last month, I was
able/would have been able to take part in it.
• If he lent/had lent me the money, I would pay/ would have paid
him back last week.
• If you had been there at that moment, what would you do/ would
you have done?
• Why didn’t you say that you were short of money? If I knew/ had
known, I would lend/would have lent you some.
• She was so impatient. If she had been/ were more patient, she
would received/would have received everything she needed.
• If I didn’t lose/ hadn’t lost my key, I wouldn’t have/ wouldn’t
have had to wait outside in the rain.
• If the traffic hadn’t been/ were not so heavy, we would arrive/
would have arrived on time.
• If I weren’t/ hadn’t been promoted then, I would leave/would
have left the company.
• If I hadn’t saved/ didn’t save enough money, I wouldn’t
buy/wouldn’t have bought this house.
• If he didn’t gamble/ hadn’t gambled so much, he wouldn’t lose
/wouldn’t have lost all his money.
• If I knew/ had known yesterday that you were coming, I would
meet/ would have met you at the airport.
• You wouldn’t get / wouldn’t have got into trouble last time if you
followed/ had followed my advice.
• He never would buy/ would have bought shares in that company if
you didn’t recommend/hadn’t recommended him to do it.
Ex.2. Put the verbs in brackets into the correct form.
• If I had sold my shares then, I (make) a lot of money.
• If you hadn’t taken so many risks, you (lose) so much.
• If I had bought that lottery ticket, I (win) one million.
• It’s a pity you missed the conference. If you (come), you (meet)
American scientists working in this branch of economy.
• If the company hadn’t raised its funds, it (go) bankrupt.
• If we hadn’t issued bonds, we (not raise) finance.
• If I had known this great news, I (tell) you.
• If I had sold my car a couple of years before, I (get) more money.
• If I (not make) profit on my shares, I would have never bought
this house.
• If he had invested on the stock market, he (live) from the income.
• If you contacted a stockbroker, he (give) you some very good
advice.
• If I were you, I (invest) on the stock exchange.
• If he (work) alone, he would never have finished this work.
• If he had known all the facts, he (help) us last Monday.
Ex.3. Finish these sentences using a mixed conditional.
• If I had won the money, … .
• If I had been better at English, … .
• If I had only known about this earlier, … .
• If he had consulted the stockbroker on time, … .
• If he were an honest man, … .
• If I knew her better, … .
 • If he had been more friendly, … .
• If I had asked his permission, … .
• If you had established a company of your own, … .
• If she had arranged for free food to be made available to all
employees, … .
• If we had signed an agreement, … .
• If the new investment plan had been completed, … .
• If our market share were much bigger than our competitors’, … .
• If the company employees were not given the opportunity to
travel abroad, … .
Ex.4. Translate into English:
• На вашому місці я б не хвилювався; вона знає, які акції
купувати.
• Якби ви працювали сумлінніше, ви б давно завершили роботу
над цим проектом.
• Якби я знав про цей контракт, я б переклав його ще на
минулому тижні.
• Якби ви проглянули старі фінансові звіти, ви б знайшли
цікавий матеріал для вашої доповіді.
• Я б звільнив його, якби не знав, що він добре виконує свою
роботу.
• Якби я продав свої акції півроку тому, я б заробив багато
грошей.
• Якби я був на вашому місці, я б негайно купив гарантовані
цінні папери.
• Якщо компанія опинилася б у важкому фінансовому стані, ми
б втратили все наше майно.
• Якби я знав про вашу пропозицію раніше, я б не погодився на
цю роботу.
• Якби ви все зробили своєчасно, то цей вигідний для нашої
фірми контракт був би вже підписаний.
• Якби смаки споживачів не змінювалися, торгівля б не
розвивалася.
• Якби на рекламу не витрачалося стільки грошей, то ми б
відкрили нову технологічну лінію.
GRAMMAR PROGRESS TEST III (CONDITIONALS)
Ex.1. Choose the correct answers:
• If you didn’t help/hadn’t helped me, I would have /would have
had financial problems last month.
• If you didn’t know /don’t know maths well, you will find/find
accounting difficult.
• If you need /will need some money, I give/will give it to you.
• If we did/had done it two weeks earlier, we would receive/ would
have received big profit.
• If I am /were you, I will /would apologize.
• If I didn’t get/hadn’t got promoted, my salary wouldn’t go
up/wouldn’t have gone up.
• If he had been /were well paid, he won’t worry/wouldn’t worry
about his future.
• If you won’t finish/don’t finish this work on time, you have to/
will have to report to the manager.
 • If you accepted/had accepted these conditions then, you wouldn’t
make/wouldn’t have made any money at all.
• If I had known/knew her address, I would give/will give it to you.
• If she were/had been at the meeting, he would see/would have
seen her.
• If he will refuse/refuses to sign the contract, we try/will try to take
urgent measures.
• I tell /will tell you the whole truth if you will promise/promise to
keep it a secret.
• If I had gone/go to Spain next summer, I will change/will have
changed some money into traveller’s cheques.
Ex.2. Put the verbs in brackets into the correct form.
• What shall we do if he (be) late?
• It will be a pity if you (not get) the job.
• It will be better if you (use) my computer.
• If you (come) late again, you (be fired).
• If you (have) sense, you (buy) these shares a year ago.
• If you (go) to a job interview, you should be well prepared.
• If you (not buy) useless things, you (be able) to save more.
• What you (do) if you (lose) your passport?
• If I (not be) so busy, I (keep) her company.
• If we (not advertise) our products, we (not succeed).
• If you (ring) me yesterday, I (tell) you something very important.
• If I (not be) so busy then, I (join) you.
• He (not succeed) in such a risky business if he (not be) such
a clever entrepreneur.
• If Unit Trusts (not put) investors’ money into different companies,
their risk (be) much higher.

Speech and Discussion

Ex.1. Define the following terms:
• Unit trust
• gilt-edged security
• futures
• options
• swaps
Ex.2. If you’d like to raise capital would you invest your
money in government securities? Why? Why not?
Ex.3. Think about the following:
«Why invest in the stock market? What goes up must come
down. Spend money today and enjoy it while you can.»
Ex.4. Discuss with your groupmates the advantages and
disadvantages of stocks and bonds as a form of
investment.
 Ex.5. Familiarize yourself with the following idioms.
Consult your dictionary and translate the sentences
into Ukrainian. Think of situations where you could
use them.
• I have to be careful how I spend my money. I don’t have money to
burn.
• There must be some way to raise enough money to buy a car.
We’ve put all our savings together but it isn’t enough. Still,
there’s more than one way to skin a cat. I’ll get a second job!
• I need more work like I need a hole in the head.
• The boss wasn’t happy with a few of his workers who had begun to
leave the office before quitting time. He was afraid they would fall
into the habit of leaving early if he didn’t nip it in the bud, so
he told them they would have to stop.
• Let’s skip the small talk, and go straight to the nitty-gritty: what
price do you want for the car, and when will you be able to part
with it?
Ex.6. Comment on the following:
«Future is purchased by the present.»
(S.Johnson)
Ex.7. This test will help you to estimate your target
orientation of earning capital. Choose one of the
suggested options.
• Which is the easiest way to make money?
a. to work hard, be well-informed, risk and, of course, invest
money in business
b. to hope to get your uncle’s inheritance
c. to make a career going step by step to a managing post or to
try your hand at politics
• Which character of Walt Disney makes you smile?
a. Donald Duck
b. Gusto Hans
c. Dogbert Duck
• In your opinion which income can make the richest people of the
world close a bargain?
a. from half a million to a million
b. up to 10 million
c. dozens of million and higher
• Which of the statements do you agree to?
a. The more money you have the more pleasure you get
b. Money means power
c. Money causes much envy
• Have you ever heard of the game called «A Fortunate letter»?
You put a small sum into an envelope, look for a victim, who also
pays and, at last, your investment comes back to you multiplied
many times. Which part are you ready to play in it?
a. not to take part in it
b. to take part and also earn
c. to be the initiator of the game
• Is it important for you to be mentioned in different newspapers
and magazines?
a. I would be very glad
 b. No
c. I am often mentioned in them anyway
• How can you win in races?
a. gamble with high stakes
b. save money and just be present at the races
c. buy a horse-winner
• In your opinion, who has the highest chance to become a rich
man quickly and reliably?
a.a director, an actor, a writer, an artist, a sportsman-record
holder
b. a lawyer, a doctor, a politician
c.a head of a company, a publisher
• What is your attitude to the business between friends?
a. I am ready to lend money to my friends. Some time they will
also lend me.
b. Money and friendship are incompatible.
c. I am ready to borrow money from my friends but not to lend it.
• Be frank. If you managed to become a millionaire, would you
enjoy this feeling?
a. Of course, I would enjoy it.
b. I would demonstrate my enjoyment to everybody who did not
trust me or looked at me haughtily.
c. No.
• Where would you invest your millions?
a. in real estate, in an art collection
b. in shares or other securities
c. I would do as my wife/husband would say
• If you already have a couple of million, are you going to try to
earn more?
a. No, if we are speaking about a small sum. But I will never
refuse to earn a big one.
b. Of course.
c. No, it is enough for me.
1 a) – 6 b) – 0 c) – 3
2 a) – 3 b) – 0 c) – 6
3 a) – 0 b) – 3 c) – 6
4 a) – 6 b) – 3 c) – 0
5 a) – 3 b) – 0 c) – 6
6 a) – 0 b) – 6 c) – 3
7 a) – 0 b) – 3 c) – 6
8 a) – 0 b) – 3 c) – 6
9 a) – 3 b) – 6 c) – 0
10 a) – 0 b) – 3 c) – 6
11 a) – 3 b) – 6 c) – 0
12 a) – 3 b) – 6 c) – 0

If you have:
From 0 to 23 points
It means, that the best way to become rich personally for you is
either to get married luckily, or to become an heir, or, at last, to win
a lottery.
From 24 to 48 points
Wealth is connected with work for you. Avoid financial
speculations. The best way for you is to make a career and take
a place of your boss. Even if it does not bring you desired millions,
your life will be financially secured.
From 49 to 72 points
You have the best chances to become a millionaire some day
(if you are not now). You have a commercial mind, you separate
money from friendship. You are not going to boast of your luxurious
way of life and are inclined to multiply your fortune patiently.

LESSON 5
Text: Financial Statements
Grammar: Expressing Wishes and Regrets
Terms to remember:
financial statement • фінансовий звіт (компанії)
financial performance • фінансова діяльність
(компанії)
compile (v) • укладати; збирати
(матеріали тощо)
auditor • аудитор; ревізор
annual report • річний звіт
profit and loss account • звіт про прибутки та збитки;
(P&L)/income statement рахунок прибутків і збитків;
revenue • дохід; надходження;
прибуток
expenditure • витрати; витрачання,
видаток
turnover • оборот
balance sheet • баланс; балансовий звіт
mortgage • іпотека; застава; заставна
cash flow statement • баланс оборотних коштів
(активів)
accuse (v) • звинувачувати (у чомусь-of)
window dressing • «прикраса вітрини»,
розм. «причісування
балансу»; створення
враження високої
ліквідності, прикрашання
справжнього стану справ
creative accounting • «творчий бухоблік» (методи
завищення прибутку
в обліковій практиці)
 Financial Statements
A company and its shareholders need to know information
about the company’s financial performance. Companies give
information about their financial situation in financial statements.
This information is compiled by the company accountants and
checked by independent auditors. The company’s annual report
consists of three financial statements:
• profit and loss account/P&L (BrE) or income statement
(AmE) It summarizes business activity over a period of time. This
account shows the revenue (money coming into the business) and
expenditure (money going out). It also shows the company’s
turnover (total sales), costs and overheads.
• balance sheet This account shows the financial situation of
the company on a particular date, usually the end of the financial
year. It consists of a list of assets (cash investments, property and
debtors – money owed by customers) and liabilities (all the money
that the company will have to pay out, such as taxes, mortgage and
money owed to suppliers). Firms in a good situation are said to have
a strong balance sheet and those that are not, a weak one.
• cash flow statement This document shows the flow of cash
in and out of the business. It includes sale of assets, issuing of
shares, payment of dividends, trading profits and many other
activities. There are many reasons why companies can sometimes
have a problem with cash flow, even if the business is doing well.
Amongst them are:
• unexpected late payments, and non-payments;
• unforseen costs;
• an unexpected drop in demand;
• investing too much in fixed assets.
Companies are required by law to keep and publish accurate
accounts. When company’s accounts are presented in a way that
makes performance look better than it really is, the company may be
accused of window dressing or creative accounting, which means
recording transactions and values in a way that produces a false
result – usually an artificially high profit.
Exercises in Word Study

Ex.1. Form nouns from the following verbs:

perform, inform, supply, pay, act, present, accuse, audit,
account (for).
Ex.2. Give the English for:
фінансовий звіт компанії, акціонери, фінансова діяльність
компанії, бухгалтер, незалежний аудитор, річний звіт, звіт про
прибутки та збитки, доходи та витрати, накладні витрати,
балансовий звіт, активи та пасиви, майно, податки, застава,
постачальники, баланс оборотних коштів, продаж активів,
виплата дивідендів.
Ex.3. Match words from list A with words from list B that
have a similar meaning:
A B
account expenditure
check gain
revenue creative accounting
window dressing blame
accuse income
profit verify
expenses report
Ex.4. Find suitable opposites to the following words and
phrases:
profit; assets; a strong balance sheet; to look better; to absolve.

Ex.5. Match the nouns in left-hand column with the verbs

in the right-hand column.
apply for
arrange
annual report pay off
present
revenue produce
publish
mortgage increase
reduce
provide
Ex.6. Look at the words and phrases in the box. Match them
with the correct definition from the list below.

• a person who keeps records and provides information about a

company’s or person’s money;
• a person who examines the accounts of an organization to check
they are true and correct;
• a report, containing financial results, presented each year by the
directors to the members and shareholders of a company;
• a summary list of income and expenses for a business;
• money received from the sale of goods or services;
• an amount of money spent;
• the total business done by an organization in a given period;
• a long-term loan from a bank for buying property, which is used
 as security;
• accounting which follows the literal rules of legislation and
accounting standards but succeeds nevertheless in presenting an
unduly favourable picture of a company’s position or progress;
• statement of what a company owns, or assets, and owes or
liabilities.
Ex.7. Write the appropriate word or phrase in the following
spaces. Translate the sentences into Ukrainian.
• My … prepares my tax returns every year.
• The … were called to inspect the accounts.
• The government has a huge need for tax … .
• The company has made several big … on new equipment.
• That company has a $10 million a year … .
• The flat was bought with a $100,000 … .
• The majority of the government’s … comes from taxes.
• The company won’t be able to increase … on technology in the
coming year.
• Financial accounts give information about financial … of
a company.
• Analysis of our … during the last year shows that approximately
one third of our revenue came from the Asian markets.
• The accountant prepared the company’s … for the year.
• The … in our company is good because we take in much more
money than we spend.
Ex.8. Fill in the missing prepositions.
An annual report is prepared … the management … a company
whose stock is traded publicly. It contains written and financial
statements … the progress … the company in the previous financial
year. An annual report performs a useful function … a free market
system, transmitting information … the company … its shareholders
and investing public. Although the report is addressed …
shareholders, other people who have a stake … the business –
stakeholders such as employees, suppliers, customers, and lenders –
will find it informative. Such a report acts as good public relations
… the company.
(to (2), from, in (2), of (2), by, about, for)

Exercises in Comprehension
Ex.1. Answer the following questions:
• Who compiles the information about the company’s financial
performance?
• Who is this information checked by?
• What does the company annual report consist of?
• What is the purpose of an annual report?
• What does the income statement show?
• What does the balance sheet include?
• When do firms have a strong balance sheet?
• What is cash flow statement?
• When may the company be accused of window dressing or
creative accounting?
 Ex.2. Read the paragraph and put the terms in the box in
the correct place.

Public Limited Companies are required by law to publish

end-of-year financial statements. This report on the financial
performance, or _________ of the company must include at least a
_______ and a __________, so that shareholders can assess the
performance of the company. ______ check the accuracy of the
accounts. The balance sheet shows the firm’s _______ and ______,
whilst the profit and loss account tells shareholders what kind of
return to expect on their investments. Companies often publish half-
yearly results, especially if they need to warn shareholders of poor
results. If a firm is doing well it can report a strong balance sheet,
however.
Ex.3. Sum up what you remember about:
• profit and loss account;
• balance sheet;
• cash flow statement.
Ex.4. Translate into English:
• Акціонери повинні володіти всією інформацією про фінансову
діяльність компанії.
• У звіті про прибутки та збитки зазначаються дохід та витрати
компанії.
• Активи та пасиви компанії представлені у балансовому звіті.
• Річний звіт готується менеджментом компанії.
• Цей незалежний аудитор – досвідчений фахівець.
• Показники балансового звіту свідчать про гарний фінансовий
стан компанії.
• Аналіз фінансової діяльності нашої фірми за останній рік
свідчить, що близько 1/3 наших прибутків було отримано від
європейських ринків.
• Ми не зможемо збільшити наші витрати на нові технології в
цьому році.
• Вони повинні були продати всі активи для того, щоб
розплатитися з боргами.
• Бухгалтер нашої фірми був звинувачений у «причісуванні
балансу».

Grammar Revision
Expressing wishes and regrets
• To wish can be used as a simple verb:
I wish you a Happy New Year.
• wish + could or past simple/ continuous is used to talk about
 something you would like to be different, but can’t change.
I wish I could speak Italian fluently!
• wish + past perfect is used to express past regrets
I wish I had attended that conference.
• wish + would is used to express annoyance at the habits of
others.
I wish you wouldn’t take my car!
Ex.1. Complete these sentences using the correct form of
the verbs in brackets.
• I wish I (have) enough money to buy this house.
• I wish I (reserve) a hotel beforehand.
• I wish he (establish) his private company.
• I wish I (take) that job in the marketing department.
• He wishes he (go) on holiday with his friends.
• She wishes she (be) more careful.
• They wish they never (get) married.
• I wish I (not accept) his invitation.
• She wishes she (not leave) her last job.
• I wish he (not interfere) with my possessions.
• I wish nothing (happen).
• I wish you (not think) so.
• I wish you (not smoke) indoors.
• I wish she (take) the chance.
Ex.2. Translate into English.
• Шкода, що ви не знаєте цієї інформації.
• Шкода, що ви не подумали про витрати фірми.
• Шкода, що ми не застрахували наш товар.
• Шкода, що ви не мали часу тоді.
• Шкода, що ти не підтримав його.
• Шкода, що ви не вивчили річний звіт ретельно.
• Шкода, що фінансовий звіт нашої компанії ще не перевірено.
• Шкода, що ваші витрати перевищують ваші прибутки.
• Шкода, що наш бухгалтер звільнився.
• Шкода, що ви не попередили його заздалегідь. Він би вирішив
вашу проблему.
• Шкода, що ці фактори впливають на фінансовий стан нашої
компанії.
• Шкода, що ми ще не в змозі повністю задовольняти потреби
наших клієнтів.
• Шкода, що попит на цей товар перевищує пропозицію.
• Шкода, що ви витратили так багато грошей на рекламу цієї
послуги.

Speech and Discussion

Ex.1. Discuss with your groupmates the importance of the
financial statements:
• what information you could learn from studying a firm’s balance
sheet;
• what information an income statement gives you;
• what cash flow statement shows.
Ex.2. The Profit and Loss Account and Balance Sheet are
two important documents used in preparing financial
statements. Which of the following is a definition of a
Profit and Loss Account? Which defines a Balance
Sheet?
• Statement showing income and expenses resulting from trading
over a period of time
• Statement of financial position at a specific point in time
Ex.3. You are to report on the financial performance of
the company. What information will you use? Why?
Ex.4. What is the only way of keeping track of a company’s
success or failure?
Ex.5. Familiarize yourself with the following idioms.
Consult your dictionary and translate the sentences
into Ukrainian. Think of situations where you could
use them.
• The president assembled a blue ribbon panel of experts to study
the problem.
• The businessmen were given the red-carpet treatment by the
small town. The small town wanted to impress them in the hopes
that they would decide it was a good place to build a factory.
• You can stop hinting that you don’t want my company. I got the
message. I won’t bother you again.
• Jan invested all her money in the playwright’s new play. She was
taking a real chance. She was going for broke. If it were a
success, she would be rich. If it were a flop, she would be
penniless.
• The fast food restaurant’s new chicken sandwich went over with
a bang. Everyone was asking for it.
Ex.6. Comment on the following:
«One can accumulate enough wealth to buy a golden bed, but
one cannot buy sound sleep with money.»
(Danial Arap Moi)

LESSON 6
Text: Bankruptcy
Grammar: Modal Verbs (Ability. Permission)
Terms to remember:
bankruptcy • банкрутство
 be in a state of insolvency/ • бути неплатоспроможним
be insolvent
lame duck • підприємство, що
перебуває у важкому
(критичному) стані
creditor • кредитор
bankrupt • банкрут
go bankrupt/ go bust (v) • збанкрутуватися
rescue (v) • рятувати
go into liquidation/into • збанкрутуватися
receivership (v)
receiver / administrator/ • ліквідатор; офіційна особа,
liquidator яка призначена судом для
ліквідації компанії-
банкрута
pay off the debts (v) • розрахуватися з боргами
wind up a company (v) • ліквідувати компанію
failing company • проблемна компанія;
компанія, що зазнає
ускладнень; компанія на
межі банкрутства
voluntary liquidation • добровільна ліквідація
on the verge of (bankruptcy) • на межі (банкрутства)

Bankruptcy
While some companies perform well and expand, others are
less successful and may have to go out of business.
When a person or business is unable to pay its debts they are
considered to be in a state of insolvency or to be insolvent.
Companies in trouble and needing outside help are often
referred to as lame ducks.
If the creditors, the people who are owed money take the
matter to the court, the person or company is declared bankrupt. A
company is then said to go bankrupt or to go bust.
Receivers are specialised accountants who are appointed by
the court to find someone to rescue the company. If a company
cannot be rescued, it goes into liquidation (into receivership). It is
closed down and all its assets are sold.
The receivers, administrators or liquidators are specialists
who are appointed to sell the company’s assets and pay off the
debts to creditors. When this happens, a company is wound up, and
it ceases trading.
Another option is for the failing company to go into voluntary
liquidation and appoint its own liquidator. When a company is on
the verge of bankruptcy it should stop trading.
 Exercises in Word Study
Ex.1. Form nouns from the following adjectives:
unable, successful, insolvent, failing, voluntary, administrative,
optional, bankrupt.
Ex.2. Give the English for:
бути неплатоспроможним; кредитори; оголосити компанію
банкрутом; збанкрутуватися (3); призначати ліквідаторів;
рятувати компанію; розрахуватися з боргами; добровільна
ліквідація компанії; на межі банкрутства; проблемна компанія.
Ex.3. Match words from list A with words from list B that
have a similar meaning.
A B
bankrupt save
appoint liquidator
voluntary go bust
option optional
go bankrupt alternative
receiver designate
rescue insolvent
Ex.4. Find suitable opposites to the following words and
phrases:
voluntary bankruptcy, successful, to go out of business, debtor,
to dismiss.
Ex.5. Translate the following collocations into Ukrainian.
to file for
to be on the verge of
to be on the brink of
to be facing
to declare
Ex.6. Match the nouns in the left-hand column with the
verbs in the right-hand column:
bankrupt be put into
go into
insolvency become
go
liquidation avoid
declare
Ex.7. Complete the following sentences with either «bankrupt»
or «bankruptcy».
• Years of mismanagement had left the region virtually … .
• Several local companies have gone … .
• The firm I work for is facing … .
• The company is … .
• Many of the companies that they had invested in went … .
 • … can be involuntary or voluntary.
• The recession led to a flood of … .
• The company declared … in 2006.
• Involuntary … is initiated by creditors.
• The newspapers accused the government of being … in ideas.
• I am sorry to say that we are facing ... .
• We’ve got no choice but to declare ourselves ... .
• If they keep spending money like that they’ll ... the company.
• We are on the verge of ... .
Ex.8. Make a proper selection. Match word combinations
with «debt» to their definitions.
debt repayment when a company fails to make a debt
repayment;
debt burden when a company persuades lender to
change repayment dates and terms;
debt crisis a company’s debt, especially when
considered as a problem;
debt rescheduling/ when a company has serious difficulty in
restructuring repaying its debt;
debt default when a company repays its debt and/or
interest on it.
Ex.9. Look at the words and phrases in the box. Match them
with the correct definition from the list below.

• the state of being unable to pay your debts;

• a person or an organization that you owe money to;
• the person appointed by the court to close a company and
dispose of its assets;
• to become bankrupt;
• to save someone or something from prison, danger, etc.
• the closing of a company that has stopped trading, usually
because it has gone bankrupt;
• a bankruptcy procedure initiated by an individual or business that
can no longer meet its financial obligations;
• a bankruptcy procedure initiated by creditors.
Ex.10. Find words in the text which have a similar meaning to
the informal words and phrases listed below. These are
more colourful, but less polite, ways of saying that a
company has gone bankrupt.
• go under;
• go broke;
• go belly-up;
• go down the tubes;
• go to the wall;
• crash;
• fold;
• collapse.
Ex.11. Write the appropriate word or phrase in the following
spaces. Translate the sentences into Ukrainian.
• The firm I work for is facing … .
• Several local companies have gone … .
• The owner of the small business became … during the recession.
• The company has gone bankrupt and can’t pay its … .
• One of the company directors was appointed … .
• The company has decided to take … .
• It will take years … all his debts.
• His company is … bankruptcy.
• Small businesses in Great Britain are currently … at a rate of one
every six minutes.
• Their business is so unsuccessful. I think they are considering … .
• The manufacturing methods of Rover, once the … of British
industry, were transformed thanks to that company’s partnership
with Honda.

Ex.12. Fill in the missing prepositions.

Insolvency
Insolvency is the condition … being unable to meet debts. A
company is insolvent when it is unable to meet the demands … all
its creditors … selling all its assets … cash. … such a situation, the
creditors would apply … the business to be wound up, and ask … a
liquidator to be appointed who could dispose … the assets and pay
… the creditors where possible. The company would stop trading,
and when the winding … is complete, cease to exist.
Notes:
to cease – припиняти (ся)
(of (3), by, for (3), in, up, off)
Ex.13. Build your vocabulary. Learn phrasal verbs for
business!
to wind something or – to stop running a business and close it
itself up completely.
 Read these sentences carefully and translate them into
Ukrainian.
• Rising prices and falling sales have forced us to wind up the
business.
• He was involved in winding the company up.
• Although the company was solvent, it decided to wind itself up.
• The trust could be wound up or merged with another bigger trust.
• The business went bankrupt and wound up.
• If negotiations fail, the company will be wound up.
• Under these circumstances, the UK plants may have to be wound
up.
• The agency is attempting to wind itself up in an orderly way.
• The decision to begin to wind up the business was taken at the
meeting of the shareholders.
• The shipping group decided to wind up its final salary pension
scheme.

Exercises in Comprehension
Ex.1. Answer the following questions:
• What may happen to less successful companies?
• When is a business considered to be in a state of insolvency?
• Who are creditors?
• When is the company declared bankrupt?
• Who are receivers?
• What happens to a company if it cannot be rescued?
• What are liquidators appointed for?
• Does the failing company have any option?
• What should the company do if it is on the verge of bankruptcy?
• What is voluntary liquidation?
Ex.2. Sum up what you remember about a bankruptcy
procedure. Who can it be initiated by?
Grammar Revision
Modal Verbs
A. Ability: can, could, be able to
1. Can and cannot/can’t are commonly used to talk about
ability to do something in the present.
He can speak several foreign languages.
2. To talk about someone’s general ability to do something in the
past we use could and someone’s specific ability (to do
something on one occasion) – was/were able to
I could read when I was five.
I was able to see personnel manager without an appointment.
3. To talk about ability with perfect and future forms, the be able
to structure is used.
Will you be able to send this fax?
B. Permission: can, could, may, be allowed to
1. a) Can and could are used to ask for permission in the
present. May can be also used but is quite formal.
 Could/ Can I call you back?
May I use your phone, please?
b) When talking about whether something is permitted or not
we use can/ can’t and be (not) allowed to.
Passengers are not allowed to smoke during take-off.
You can leave your letter at the reception.
2. To talk about permission in the past we use could/ couldn’t
and was/ were not allowed to.
We were not allowed to ask any questions.
3. When talking about permission with future and perfect forms
be allowed to is used.
He will not be allowed to invest in this business.
Ex.1. Complete these sentences using can, could, may and
be able to, or be allowed to in the correct form.
• When I pass my driving test, I ______ hire a car.
• When he first came to London, he ____ read English but he
(negative) ______ speak.
• When we were in the old office, we ______ access all the files.
• This sweater was priced at $ 50, but I _______ get a discount
because of this little mark on the sleeve.
• Students _______ bring notes into the exam tomorrow.
• My sister never ________ to travel alone.
• ______ I send him a message? He is at the meeting at the
moment.
• ______ you phone the boss today?
• He _______ solve this problem yet.
• «Could I borrow your car? No, you _______.»
• Who _______ appoint the receivers to find someone to rescue the
company?
• _______ he pay off the debts of the company?
• I’ve been looking for your papers but I ______ find them yet.
• If he doesn’t tell me what his problem is, I ______ (negative) help
him.
• She ______ to raise money for her failing company.
Ex.2. Translate into English:
• Я б із задоволенням прийняв ваше запрошення, але я не можу
відмінити свою зустріч.
• Якщо він щось вирішив, то ніхто не може на нього вплинути.
• Я дуже ціную вашу допомогу. Я знав, що я можу довіряти
Вам.
• Чи можу я сказати йому всю правду? Я впевнений, що він
нічого не знає про важкий фінансовий стан компанії.
• Коли я там працював, то тільки головний менеджер міг
підписувати такі документи.
• Працівникам нашої компанії не дозволяється палити в офісах.
• Тільки суд може призначити ліквідаторів неплатоспроможної
компанії.
• Ця компанія на межі банкрутства; їй не дозволяється
працювати з клієнтами.
• Ви можете залишити всю інформацію у секретаря.
• Їм не дозволили відстрочити платежі.
• Якщо ви зможете врятувати цю компанію, ви отримаєте
подяку від президента.
• Якщо вони не зможуть розрахуватися з боргами протягом
місяця, їх оголосять банкрутами.
Speech and Discussion
Ex.1. Discuss with your groupmates:
• how voluntary bankruptcy is different from involuntary bankruptcy;
• how bankruptcy is initiated and resolved.
Ex.2. Do you think the government should bail out
lossmaking companies to avoid making people
unemployed?

Ex.3. Go to the library and research a firm that is presently in

bankruptcy. Describe the type of bankruptcy and
trace the major activities of the firm since the day the
bankruptcy papers were filed with a bankruptcy court.
Ex.4. Familiarize yourself with the following idioms.
Consult your dictionary and translate the sentences
into Ukrainian. Think of situations where you could
use them.
• Our new office manager needs to get organized and get some
work done. For two weeks, she’s just been spinning her wheels.
• In order to accomplish our goals and succeed, everyone in the
company has to put their shoulder to the wheel.
• John had to wheel and deal to get the new contract signed.
• When we decided to develop this product, our first goal was
to create something original and innovative. We did not want to
reinvent the wheel.
• He lost his job but landed on his feet by finding a better one.
Ex.5. Comment on the following:
«The shortest way to do many things is to do only one thing at
once.» (Samuel Smiles)
TEST 4 (MODULE IV)
Choose the word or word combination to match the
definition.
1. The property of a company, person etc. that has value and can be
sold to pay the debts.
a) liquid profits b) liquid liabilities c) liquid assets
2. Money spent regularly to keep a business running.
a) overheads b) costs c) profit
3. General term used for all types of stocks and shares.
a) investment b) income c) securities
4. Reduced in value (about currency).
 a) devalued b) cheap c) declined
5. Money owed by a company; a debt.
a) assets b) liabilities c) costs
6. Money that is owed to a business.
a) reception b) receivership c) receivables
7. An amount of money spent.
a) income b) expenditure c) loss
8. A sum of money paid into a bank.
a) departure b) deposit c) debt
9. Buildings and the land they occupy.
a) precaution b) premium c) premises
10. The amount of money moving into and out of a business at a
particular point in time.
a) cash flow b) cash sale c) cash deal
11. A rise in prices and lowering of currency’s value.
a) injunction b) inflation c) insolvency
12. Offering company shares for sale to the public or on a stock
exchange for the first time.
a) share register b) share splitting c) share flotation
13. A person or an organization that lends money and charges
interest on the repayments.
a) tender b) lender c) licensor
14. A market where the general level of share prices is falling.
a) target market b) bear market c) bull market
15. A person or organization that buys and sells stock and shares.
a) stockbroker b) dealer c) market-maker
16. Contracts that give the right to buy and sell currencies and
commodities at an agreed time in the future at a price agreed at
the time of the deal.
a) options b) futures c) swaps
17. A group of different investments held by a private investor, or a
financial organization.
a) gilts b) treasury bonds c) portfolio
18. A long-term loan from a bank for buying property, which is used
as security.
a) turnover b) revenue c) mortgage
19. A summary list of income and expenses for a business.
 a) cash flow statement b) income statement c) balance sheet
20. A person who examines the accounts of an organization to check
they are true and correct.
a) auditor b) accountant c) administrator