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Английский язык. Практический курс для решения бизнес-задач
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32. days purchases in accounts payable ratio – средний срок оплаты поставщиков

33. pro forma – гипотетический

Exercise 1*. Find synonyms to the following terms and make sentences of your own using these synonyms.

quick ratio; long-term assets; preferred stock; leverage; margin trading; face value; inventory; all-equity financed firm; income statement; strike price

Exercise 2. Make a dialogue between an entrepreneur who needs to raise funds for his business and a commercial banker. As a banker, you should decide whether you are going to extend credit to this business and explain why you consider reasons for viewing this enterprise an attractive credit opportunity.

Exercise 3. Write a loan application for your business. Invent a bank’s response denying a loan and supplying reasons for a denial.

Exercise 4. Write a business plan for your company using the following outline.

Sample Business Plan

Title Page

Name of Company, Date, Contact Information, etc.

Table of Contents

Executive Summary

Business Concept

Company

Market Potential

Management Team

Distinct Competencies

Required Funding and its Use

Exit Strategy

Main Sections

I. Company Description

Mission Statement

Summary of Activity to Date

Current Stage of Development

Competencies

Product or Service

Description

Benefits to Customer

Differences from Current Offerings

Objectives

Keys to Success

Location and Facilities

II. Industry Analysis

Entry Barriers

Supply and Distribution

Technological Factors

Seasonality

Economic Influences

Regulatory Issues

III. Market Analysis

Definition of Overall Market

Market Size and Growth

Market Trends

Market Segments

Targeted Segments

Customer Characteristics

Customer Needs

Purchasing Decision Process

Product Positioning

IV. Competition

Profiles of Primary Competitors

Competitors’ Products/Services & Market Share

Competitive Evaluation of Product

Distinct Competitive Advantage

Competitive Weaknesses

Future Competitors

V. Marketing and Sales

Products Offered

Pricing

Distribution

Promotion

Advertising and Publicity

Trade Shows

Partnerships

Discounts and Incentives

Sales Force

Sales Forecasts

VI. Operations

Product Development

Development Team

Development Costs

Development Risks

Manufacturing (if applicable)

Production Processes

Production Equipment

Quality Assurance

Administration

Key Suppliers

Product / Service Delivery

Customer Service and Support

Human Resource Plan

Facilities

VII. Management and Organization

Management Team

Open Positions

Board of Directors

Key Personnel

Organizational Chart

VIII. Capitalization and Structure

Legal Structure of Company

Present Equity Positions

Deal Structure

Exit Strategy

IX. Development and Milestones

Milestones May Include Some or All of the Following:

Financing Commitments

Product Development Milestones

Prototype

Testing

Launch

Signing of Significant Contracts

Achievment of Break-even Performance

Expansion

Additional Funding

Any Other Significant Milestones

X. Risks and Contingencies

Some Common Risks Include:

Increased Competition

Loss of a Key Employee

Suppliers’ Failure to Meet Deadlines

Regulatory Changes

Change in Business Conditions

XI. Financial Projections

Assumptions (Start Date, Commissions, Tax Rates, Average Inventory, Sales

Forecasts, etc.)

Financial Statements (Balance Sheet, Income Statement, Cash Flow Statement)

Break Even Analysis

Key Ratio Projections (Quick Ratio, Current Ratio, D/E, D/A, ROE, ROA, Working

Capital)

Financial Resources

Financial Strategy

XII. Summary and Conclusions

Lesson 38

Business Law

Read and translate the texts and learn terms from the Essential Vocabulary.

Business Law

Business law is the body of rules, whether by convention, agreement, or national or international legislation, governing the dealings between persons in commercial matters.

Business law falls into two distinctive areas: (1) the regulation of commercial entities by the laws of company, partnership, agency, and bankruptcy and (2) the regulation of commercial transactions by the laws of contract and related fields.

In civil law countries, company law consists of statute law; in common law countries it consists partly of the ordinary rules of common law and equity and partly statute law. Two fundamental legal concepts underlie the whole of company law: the concept of legal personality and the theory of limited liability. Nearly all statutory rules are intended to protect either creditors or investors.

There are various forms of legal business entities ranging from the sole proprietor, who alone bears the risk and responsibility of running a business, taking the profits, but as such not forming any association in law and thus not regulated by special rules of law, to the registered company with limited liability and to multinational corporations. In a partnership, members

«associate,» forming collectively an association in which they all participate in management and sharing profits, bearing the liability for the firm’s debts and being sued jointly and severally in relation to the firm’s contracts or tortious acts. All partners are agents for each other and as such are in a fiduciary relationship with one another. An agent is a person who is employed to bring his principal into contractual relations with third parties.

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