Date post: | 14-Dec-2014 |
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Economy & Finance |
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Banking, Stocks & Shares, Bonds
Week 10Business English 2Professor Hayashi
Today’s Class
• attendance & homework check (mindmap)
• review• banking vocabulary• stocks & sharesBREAK• bonds• show me the money!
VocabularyIn a NEW pair, do exercise 1A on page 85ANSWERS:1. overdraft2. credit card3. cash dispenser/ATM4. loan5. standing order/direct debit6. mortgage7. cash card/debit card8. home banking9. current/checking account10.deposit time/notice account
Vocabulary in reference to text
Stocks & Shares• Scan the article on page 91 to answer the
questions in 1BANSWERS:1. Because a non-incorporated business (i.e. one that
is not a company) has unlimited liability for debts. If it owes money, the people involved in it are not protected from bankruptcy and can lose their personal possessions. A company provides legal protection and limited liability.
2. In order to raise capital, generally to expand the business.
3. Shares give their holders part of the ownership of a company. Shareholders receive a proportion of a company’s profits as a dividend, and may be able to make a capital gain by selling their shares at a higher price than they paid for them.
BondsDo exercise 2B, 2C in groupsANSWERS2b1. C (see first paragraph)2. C (if interest rates have gone up, bondholders may get less than
they jpaid for a bond, and if a company seems to be going bankrupt, no one will buy their bonds at any price, hence ‘try to get their money back’)
3. B (see 3rd paragraph)4. C (see 4th paragraph. A is false because the advantage of bonds
over bank loans is not a fiscal advantage, but a matter of borrowing costs)
5. B (see final paragraph)
Vocabulary
SHOW ME THE MONEY!• bankers vs. small business owners• only one loan to give• think of a product/service and
prepare facts/figures about costs, sales projections, profit margins, repayment periods, existing competitors, new competitors, etc.
• the bankers will decide who to give the loan to (and professionalism points!)
HOMEWORK!
DO EXERCISE 1C ON PAGE 97