Tiếng anh chuyên ngành hv tài chính

- There two types/ corporate finance/:fixed/ capital/ working/ capital -fixed capital/ use/ purchase/ fixed assets/ like/ land/ buildings/ machinery/etc -While/ working/ captial/ use/ pu

TÀI LIỆU ĐƯỢC TỔNG HỢP VÀ GÕ LẠI TỪ NHIỀU NGUỒN

NÊN SẼ KHÔNG TRÁNH KHỎI THIẾU SÓT MONG CÁC BẠN THÔNG CẢM

Mục lục: PHẦN HỌC VÀ THI TRỪ BÀI 23, 24, 28

Phần 1:Kiến thức căn bản và câu hỏi chủ chốt của TACN2

Phần 2: Câu hỏi ngắn và dài

UNIT 16 click click click click UNIT 22 click click click click

UNIT 17 click click click click UNIT 25 click click click click

UNIT 18 click click click click UNIT 26 click click click click

UNIT 19 click click click click UNIT 27 click click click click

UNIT 20 click click click click UNIT 29 click click click click

UNIT 21 click click click click UNIT 30 click click click click

PHẦN 1: KIẾN THỨC CĂN BẢN NGOẠI NGỮ CHUYÊN NGÀNH 2

UNIT 16:CORPORATE FINANCE

I, QUESTIONS

1 what is corporate finance? its function?

- corporate finance is a broad term that is used to collectively identify the various financial dealings undertaken by a corporation

-one main function of corporate finance is to make wise use of the financial resourses available

to the company

-also , another goal is to ensure that the company is achieving maximum benifits from avaiable financial resources at the minimum cots

2 What does corporate finance involve?

-corporate finance involves planning, raising, investing and monitoring the finance

- The financial manager has to make decisions on sourcesof the finance and efficient use of the finance Also, he has to get the maximum returnon the finance while minimzing the cost of finance, the wastage and misuse of the finance

- Utimately/ goal/ ensure/ corporation/ maximum/ benifir/ available/ financial/ resource

-finance/ be/ collect/ many sources/ shares/ debenture/ banks/ financial institution/ creditors/ etc

- There two types/ corporate finance/:fixed/ capital/ working/ capital

-fixed capital/ use/ purchase/ fixed assets/ like/ land/ buildings/ machinery/etc

-While/ working/ captial/ use/ purchase/ raw materials/ pay/ day-to-day expenses

1.What are 4 forms of equity? How are thay created?

2.What are the advantage and disadvantage of long-term loans?

3 How can a company raise its equity?

* ANSWERS:

1.There are 4 forms of equity

Owers‘s capital: this is the capital provided by th owner of the company

Venture capital: this is provied by venture firms

Unlisted securities market: this is money from outside investors ( who don‘t interfere in the running of the company)

Stock exchange: this is capital raised by issing fresh shares to the public

2, the advantage of long-term loansis that companies can go to different sources such as clearing banks, merchant banksand even pension funds to borrow money

The disadvantage of the long-term loans is that copanies have to secure the debts over fixed assets of the business and interest must be paid wether they make a profit or not

3 A company can raise its captial by issuing share ( equity financing) or borrowing from banks (debt financing) or borrowing from banks (debt financing ); there are 4 forms of equity : owner‘s capital, venture captital, unlisted securities market and stock exchange, Also, company can raise captial through long-term debts (from clearing banks, merchant banks oe pension funds) but they have to secure the debts over fixed assets and interest must be paid

* SENTENCE:

1, gearing/ relationship/ between/ equity capital/ invest/ business/ long-term debts

2,successful time/owners/have /claim/ all/ net profit / company

3, venture captital/ usually/ provide/ venture firms/ interest / finance/ high-growth/ companies

4,venture capital/ company/ not/ usually/ interfere/running/ company

5,least /25% / equity /must/ be public hands/thereby/ reduce/ control/original/ owners

6, they/ will/ usually/ secure/ debt/ fixed assets/ business/ and / of course/ interest/ must

/pay/usually/ link/ bank/ base rate

UNIT 18: MANAGEMENT OF WORKING CAPITAL

I.QUESTIONS

1 what are types of working capital ? its purposes?

-there are 2 types of working capital permanent and temporary working capital

- the permenant working capital is needed in keeping the business flowing during the year

- the temporary working capital is needed from time to time to deal cyclical , seasonal ,

unexpected fluctuation in the business

2 What are 3 major applications of working capital

Firtsly inventories include raw materials, working –in-progress and finished goods

-secondly debtors coninsits of payment due to supplier and payment owed by customers

-finally cash which is needed for both normal and abnormal requirements

3.What are main tasks of financial manage in managing working capital?

Tasks of financial manages in managing working capital are:

-fristly in managing investories ,the job of financial manager is to minimize the level of raw materials,working in progress and finished goods

-secondly in managing debtors , the financial manager has to achieved a balance between getting and giving goods credit term with supplier and customers

-finally sound cash management is needed for normal and abnormal requirements

II STENCES

1 profitability/ determined/ part/way/ company/manage/ working/ capital

2.principal/ functions/financial/management/ provide/ correct/ amount/ working capital/ right/ time/ right place/ realize/ greatest/ return/ investment

3.working capital/ initially/ broken down/ 2 types/ permanent/ temporary

4.job/ financial/ manager/ minimize/ stocks/ raws/materials/ level/ work-in-progress/

quantity/finished/goods

*What the main tasks of financial manager in managing working capital

Three applications of working capital Main tasks of manager in working capital Firtsly inventories include raw materials,

working –in-progress and finished goods

secondly debtors coninsits of payment due to

supplier and payment owed by customers

finally cash which is needed for both normal

and abnormal requirements

Firstly , managing investories it is job of the financial manager to minize the level of raw materials, working –in-progress and finished goods

Secondly in managing debts, the job of financial is to achieve a balance between getting and giving credit terms with suppliers and customers

Finally, in managing cash , sound cash managerment insured that cash is available for both normal and abnormal requirements

III KEY WORDS

Permanent working capital

Temporary working captital

At the right time

In the right place

Be broken down

Tie up= use to

The business flowing

Take account of= deal with

1.what are 4 purposes in the marketing mix?

There are 4 pp in marketing mix: product , place, promtion and price

- Aspects to be considered in marketing products include: quality, features, style, brand name, size, packaging size, ect

- Promotion includes advertising, publicity, sales promotion and persona; selling

- Place includes such fators as distribution channels, locations of points of sales, transport, invetory size

- Price includes the basic list price, discount, credit terms, the length of payment period

II STENTECES

1 As well/ satisfy/ existing needs, marketers/ also anticipate/ create / new ones

2 once/ target market be/ indentify/ company/ have to/ decide/ what/ goods or services/ offer

3 marketing concept/ have to/ understand/ throughout/ company./ production department/ as much /in/ marketing department itself

4 rather/risk /launch/ product or service/ the basic/ guess work,/ most companies/undertake/ marketing research

5 companies/ collect/ analyze/ impormation/ size/ potential/ market/ or / customers‘ reactions/ particular product features

6.it / be/ job/ product manager/ brand manager/ look for ways / increase sales/ by change/

marketing mix

III KEY WORDS

-to look for market opportunities

- to do/undertaken market research

- to launch product or service

- to identify / anticipate a consumer need

-target customers/ market

- market segment/ segmentation

-distribution channels

-various elements in marketing program

UNIT20: SETTING THE PRICE

I QUESTIONS

1.What is the important role of price?

Price is the mount of money given in payment for goods or services

Price has operated as a major determinant of byers‘ choice apart from other non-price factors

Price is one of the most important elements in the marketing mix dertermining company market share and profitability

Price is only element in the marketing mix that produces revenue

2 what are common mistakes when setting price?

Pricing is too cost-oriented

pricing is not revised often enough to captitalize on market changes

pricing is set independently of the rest of the marketing mix

pricing is not varied enough for different product items or market segments

3 How do companies handle pricing?

- In small companies, price are set by top management

-in large companies, prices are set by divisional and product line Top management sets the general pricing objectives and policies and approves proposed prices

-in industries where are set price by a pricing department which sets prices or assists other

department in determining prices

II SETENCES

1 Through / most / history/ price/ set/ buyer/ seller/ negotiate/ each other

2 through / most history / price/ operate/ deteminant/ buyer/ choice

3.Non-price/ factors/ become/relatively/ more/ important / buyer choice/ behavior/

recent/decades

4.price/still/remain/one/ the most/ important/ elements/ determine /company/market

share/profitablility

5.small company /prices/ often/set/ top management /rather/ maketing sales department

6 top management/ set/general/pricing/ objectives/policies/ often/ aprove/prices/propose/lower levels/management

1 What are types of accounting impormation?

financial accounting impormation refers to impromation describing financial resources,

obligations and activities of an economy entity

This impormation is used by investors, creditors, managers or tax authories

management accounting impormation involves the development and interpretation accounting impormation to assist managemet in running business

this information is used by managers, employess in setting general objectives and evaluating the performance of departmenr and individuas in making all types of managerial decisions

Tax accounting impormation : two important aspects of tax accounting are the preparation of income tax returns and tax planning, therefore this occouting information is often adjusted or reorganized to conform with income ta reporting requirements

This is impormation is used by tax authorities

1a, what are differences between financial accouting and management accounting?

1b, How is tax accouting information different from financial accounting information?

3 information/ often/ adjust/ reorganize/ conform/ income/ tax reporting requirements

III KEY WORDS

1, income tax return: kê khai thuế thu nhập

2,obligation: trách nhiệm

3.to adjust or reorganize to conform : điều chình , tổi chức lại cho phù hợp

4, record in journal entries containing at least two accounts : ghi vào danh mục chứa tài khoản nợ

có

5 correcting entries: điều chỉnh mục

6, post ledger: ghi vào sổ cái

7.current balance: số dư hiện tại

8,unadjusted trail balance: cân đối thử chưa điều chỉnh

9 teporary accounts: tài khoản tạm thời

10 cost accounting :hoạch toán chi phí

UNIT 22 FINANCIAL STATEMENTS

1.What are responsibilities of accountant?

Responsibilities of accountant are:

-in daily business operations, an account records all business transaction in a joural

-peridically, the accountant transfers fingure from joural to ledger

-the accountant use the information in the account to construct financial statements

2 What are 3 types of financial statements?

Three types of financial statements are:

- Income statement which shows the company‘s earnings and expenditure

It usually gives figures for total sales and cost

-balance sheet which shows a company‘s financial situation on a particular date (the last day of fiscal year)

It lists the company ‗s assets, liabilities, sharehiders‘funds

-the statement of changes im fiancial position which shows the flow of cash out and in bisiness between balance sheet dates

II SENTENCES

1 All business/ need /maintain/ finacial records/ in order/ find out / they/make/ profit

2.daily/ business operations/ record/ business transactions/ be/ first/ made/ journal

3.periodically/ bookkeepers/ tranfer/ fingures/ journals/ ledgers

4.ledger/ be/ book/ contain/ all/ account/ company

5 An accontant/ be / financial record/ contain / information/ about/ group/ similar/ transactions 6.design/ maintenance/ interpretation/ information/ record/ accounts/ refer/ as/ accounting

7.accountant/ use information/ account/ construct/ financial/ statements

8.balance sheet/ show/ company‘s financial situation/ particular date/ general/ last dau/ financial year

9.balance sheet/ list/ company‘s asset/its liabilities/ shareholder‘fund

10.application of fund/ include/ purchase/ fixed assets/financial asset/ payment of dividend/ repayment of loans/ in a bad year-trading losses

UNIT 25:FINANCIAL ANALYSIS

I.QUESTIONS

1.What is financial analysis?

Financial analysis is the selection, evaluate, and imterpreation of financial data

2.who want to analyze? For what purose?

-internally , the management and shareholder need financial analysis to evaluate issues such a employee performance, the efficiency of operations, and credit policies for making financial decisions Shareholder need financial analysis to estimate an increase or decrease in market prices of their shares , as well as their dividend

- Extentally, creditors need financial analysis to evaluate the compnay credit-worthiness and credit rating of borrowers among other things

Potential investors need to financial analysis to make investment decisions

So financial analysis is good that help analysis making proper decisions

3.What are sources of financial data?

Sources of financial data needed financial analysis include: primary sources and secondary sources

-The primary sources includes:

+financial data provided by the company in form of annual reports and other required disclosure information provided by financial press or electronic media daily

-The secondary sources includes:

+economic data :enconomic satistic provided by both Government and private sources

+Explainting the company present condition and its future prospects

UNIT 26: AUDITING

I QUESTIONS

1 What is auditing

Auditing is an accountinf function that involves the review and evaluation of finacial records

2 Whta are roles of internal auditors?

-Auditors continously review operating procedures and financial records and report to

management on current financial sate of the company

- they also make suggetions to management for improvements in standard operating procedures

-finally, thay check the completeness and accuracyof accounting records to make sure that

irregularities arecorrected

II.SENTENCES

1 audtiing/ accounting/ function/ that/ involve/ the review/ evaluation/ financial records

2.even/ those companies / that / not conduct/ internal audit/ need/ maintain/ system/ internal control

3 many/ companies/ employ/ their own accountants/ maintain/ internal audit

1 What are advantages of world trade?

Advantages of word trade are that countries can develope thier economies, incease production goods and met market demands

2.what does factor effect efficient production?

3.why and how do government try to control exports?

One reason is that a country has advantage if it exports more their imports

Wealth accrues to the exporting country to encourage exports,there are some programes which provide marketing information, establish trade missions, subsidite exports and provide tax benifit

or incentives

4, why and how do government try to control imports?

-One reason for restricting imports is to protect domestic industry which provide employment to the population

- to restrict imports government imposes taxes and quotas on products Also , government enacts protectionist controls

1.What are trade barriers? Its advantages and disadvantages

Trade barriers are many gov-place restrictions on trade between nations

-advantages of trade barriers:

+ trade barriers can be benificial to the aggregate domestic economy

+domestic firms benefit higher sales, greater profits and more income to ensure owners

-disadvantages of trade barriers:

Disadvantges are increasing domestic prices and restricting access to imports can be harmful to domestic consumers

2.what are common reasons for trade barriers

-firstly, they protect domestic employment

Trade barriers prevent the reduction of domestic production and domestic employment

-sencondly, to protect young domestic industries and untilthey are strong enough to compete internationally

-Thirdly, to avoid unfair bad practies of foriegn companies

-fourthly , to avoid the practice of dumping that might be undertaken to domestic producers out

of business, lesson competition

-finally, to protect firms and industries that produce outputs vital to the securies and defence of the antion

3.what are 4 common forms of trade barriers

-Tariffs which are taxes imposed/places on imports

-Quotas which is quantity retriction placed on a good or service or an activity

-Subsidies which are intended to make certain by goods affordable to citizens of nation and make import non-competitive

-Embargoes which prohibit the import and export of any thing which another country and its a form of punishment

II.SENTENCES

1,most/ common/sort/ trade barriers/ things/ like/ tariffis/ quotas/ subsidies/ embargoes

2 one of/ most/ common justification/ trade barriers/ protect/ domestic employment

3 practice/ dumping/ might/ undertake/ drive/ domestic producer/ out of/ business/ lessen

competition/ increase/ market share/ foriegn producers

4 a last/ note/ argument/ tradebarriers/ need/ protec/ firms/ industries/ porduce/ output/ vial/ securiry/ defense/ nation

PHẦN 2: CÂU HỎI NGẮN VÀ DÀI

Unit 16: Corporate finance

IV Answer two questions below

1 What are the functionsof corporate finance?

The function corporate finance includes:

 Making wise use of the finance resources available to the company to maximize the benefit from financial investment

 Managing investment such as: purchasing and selling share

 Creating and managing process of issue share, bonds and so on

2 What are the roles of corporate finance?

The role of corporate finance includes:

 Finance is required by all types of companies

 Under the best of circumstances, responsible corporate finance activities promote the wise use of all financial resources, actively look for ways to enhance the financial picture of the corporation, and in general make sure there are assets on hand to maintain company operations It is vital to the success of a company

3 Which activities are included in managing corporate finance?

Managing corporate finance includes:

 Planning the finance

 Raising the finance

 Investing the finance

 Monitoring the finance

4 What is the different between fixed capital and working capital?

Definition: fixed capital is used to purchase

fixed assets like land, buildings, machinery,

and so on

Definition: working capital is used to purchase raw materials, means of production, and pay-to-pay expenses like salaries, rent, electricity bills, taxes, and so

on

Fixed capital includes: Tangible fixed Working capital includes: cash, cash

assets like building, machinery…,

intangible fixed assets like land use rights,

patents, computer software…

equivalents, inventory like raw materials, working in progress, finished goods…

The scope of a fixed capital investment

stretches several years ahead

The scope of a working capital investment

is limited specific accounting periods or fiscal years

Fixed capital has lower liquidity Working capital has higher liquidity

Unit 17 Funding the bussiness THE ADVANTAGES AND DISADVANTAGES OF SOME TYPES OF CORPORATE

CAPITAL

1 The advantages of dept financing are: the company can raise money from outside

entities to expand its size and the original owners do not loss their control of

company The disadvantage of dept financing is the company has to pay interest

2 The advantage of equity financing is that company does not pay interest for it.The

disadvantages of equity financing are: the original owners reduce their control of company and it‘s difficult for company to have a large captital for expanding its size

3 The advantages of owner’s capital are: in the successful times, the owners have a

claim on all the net profit of company, the company does not pay interest for it, so there is no pressure of interest payment and it‘s active for the company to use owner‘s capital.The disadvantages of owner‘s capital are: it‘s the most exposed form of capital since a return is received only after all the other calls on a company‘s profits have been satisfied and in the bankruptcy, the owner‘s equity will be repaid only after everyone else, including employees, creditors, banks, etc., has received what they are owned

4 The advantage of venture capital is it does not usually interfere in the running of the

company.The disadvantage of venture capital is the provider usually demands a much faster and higher rate of return than an owner would expect from his/her own capital

5 The advantage of unlisted securities market is it allows a company to raise money

from outside investor without losing much control of the company.The disadvantage

of unlisted securities market is the amount of money that is raised by a company is small

6 The advantage of Stock Exchange is this will provide the long-term opportunity of

raising capital by issuing fresh shares.The disadvantages of Stock Exchange are: it‘s available only to large companies and at least 25 percent of the equity must be in public hand – thereby reducing the control of the original owners

7 The advantage of long-term loans is a high gearing will give the owners a much

better return as net profirs will be a much higher percentage of equity after interest payments on the long-term debt in good times.The disadvantage of long-term loans are the company will usually secure the debt over the fixed assets, they must pay the

interest and the owner‘s earnings will drop dramatically as interest soak up most of the company‘s profits in good times

UNIT 18: MANAGEMENT OF WORKING CAPITAL

1 What are the roles of working capital management?

Working capital management is an important part of financial management It includes inventory management, debtor management and cash management All of the applications of the working capital are current assets so that the efficiency in working capital management is so vital for especially companies whose assets are mostly composed of current assets such as manufacturing companies On the other hand, working capital management directly affects the effectiveness, liquidity and profitability of any company through determining the right amount

of working capital, the right time and right place to provide this capital Thus, working capital management has a strong ability to influence the success of the company

2 What are the tasks of working capital management?

Working capital management includes three main issues: inventory management, debtor management and cash management Firstly, on the inventory side, it is the job of Chief Financial Officer to determine the minimum level of each type of inventory as well as avoid the over-stringent cost control that can lead to a bad vicious circle Secondly, on the debtor side, the task

of financial management is to find the way to balance between the getting and giving a good credit term to attract customers, maintain positive relationship with suppliers and minimize cash outlay Finally, the cash management should ensure that adequate cash is always available for meeting the day-to-day expenses and there is also a small reserve on hand to meet the contingencies

UNIT 20: SETTING THE PRICE

1 Which mistakes are most common in pricing? How to avoid making these mistakes?

In pricing process, many companies do not handle well The most common mistakes are: pricing

is too cost oriented, price is not revised often enough to capitalize on market changes, price is set independently of the rest of the marketing mix rather than as an intrinsic element of market- positioning strategy and price is not varied enough for different product items and market segments To avoiding these mistakes, companies should consider to other factors beside cost of products, such as: price of competitors, customers demand, brand name, taste, psychological

pricing,…Then, companies should search and analyze market to determine prices that are appropriate to changes of market Beside, pricing must be performed in considering of market positioning strategy and other elements of marketing mix And finally, in each market segments, price should be varied from one product item to others to attract more customers

2 How important is the price?

Price is an important factor not only for buyers but also for sellers Through most of history, price has operated as the major determinant of buyer choice and it remains one of the most important elements determining company market share and profitability Besides, price reflects revenue which companies gain in selling, so it is the only element in the marketing mix that produces revenue, while the other elements represent costs Moreover, price is one of the tools what helps companies compete well with others Therefore, companies have to handle pricing well to succeed

3 Which ways do companies handle pricing?

All companies have to handle pricing However, they have their particular way of pricing It depends on what type of company they are In small companies, prices are often set by top management rather than by the marketing of sales department In large companies, pricing is typically handled by divisional and product-line managers, while top management sets the general pricing objectives and policies and often approves the price proposed by lower levers of management In industries where pricing is a key factor such as aerospace, railroads, oil companies,…will often establish a pricing department to set prices or assist others in determining appropriate prices

Unit 21: What is acounting?

1.What do we need to consider to understand and use accounting informaion?

Accounting information is the means by which we measure and communicate economic event

To understand and use accounting information in making economic decisios you need to understand the following:

-The nature of economic activities that accounting information describes

-The assumption and measurement techniques involved in developing accounting information -The information that is most relevant for marking various types of decisions

2.What is the basic purpose of accounting?

Basically, the purpose of accounting is to provide the accounting information that is needed for financial economic decision making

-In financial accounting, financial accounting information is used to assist investors and creditors

in deciding where to place their scarce investment resources.and, it also is used by managers and prepare in income tax returns

-In management accounting, managers used accounting information in setting the company's overall goals, evaluating the performance of departments and individuals, deciding whether to introduce a new line of products and in making virtually all types of managerial decisions

-In tax accounting, tax return based upon financial accounting information

3.What are differnces between financial accounting information and management accoungting information ?

Financial accounting information is used to assist investors and creditors in deciding where to place their scarce investment resources.and, it also is used by managers and prepare in income tax returns

Managers used accounting information in setting the company's overall goals, evaluating the performance of departments and individuals, deciding whether to introduce a new line of products and in making virtually all types of managerial decisions

Financial accounting information is public information but management accounting information

is confidental information

4.How is tax accounting information different from financial accounting information ?

Financial accounting refers to information describing the financial resources, obligations and activities of an economic entity It is used to assist investors and creditors in deciding where to place their scarce investment resources.and, it also is used by managers and prepare in income tax returns

But, tax accounting is often adjusted and reorganized to comply with specialized legal requirements relating the company's responsibility to pay an appropriate amount of taxes.So the

reports and figures based on different types of accounting could be not the same

Unit 22: Financial Statements

1 Why are financial statements important?

Financial statements are really important for companies, Government agencies and other related parties In a company, there is usually a system of accounting established to maintain financial records and construct financial statements These statements are analyzed by management and used as a basic for business decisions such as allocation of financial resources, development of new products, and expansion of operations Besides, they are also used for determining income taxes liabilities Finally, financial statements provide various information that investors and creditors use to evaluate a company‘s financial performance and make decisions related to the company

2 How many major financial statements are there? What does each of these financial statements show?

There are three major financial statements including the balance sheet, the profit and loss statement and the statement of cash flow Firstly, the balance sheet shows the financial situation

of the company in a particular date, generally the last day of the financial year It lists a company‘s assets, its liabilities and shareholder‘s funds Secondly, the profit and loss statement shows the earning and expenditure It usually gives figures for the total sales, costs and overhead Third statement is called statement of cash flow that shows the flows of cash in and out of the business between balance sheet dates

Unit 25 FINANCIAL ANALYSIS

1.What is financial analysis and the purpose of financial analysis?

Financial analysis is the selection, evaluation, and interpretation of financial data, along with other pertinent information, to assist in investment and financial decision- making Financial analysis is used internally to evaluate issues such as employee performance, the efficiency of operations, and credit policies, and externally to evaluate potential investments and the credit - worthiness of borrowers, among other things

2 How many sources of data are available for financial analysis?

Data sources of financial analysis include:company annual reports and required disclosures (the annual report comprises the income statement, the balance sheet, and the statement of cash flow,

as well as footnotes to these statement, certain businesses are required by securities laws to disclose additional information), economic data such as the gross domestic product and consumer price index, market data such as the market prices of securities, stock price indices,

and current events( current events can provide information that may be incorporated in financial analysis)

3 what can financial ratios be classified into?

Financial ratios can be classified according to the way they are constructed and their general characteristics By construction, ratios can be classified as a coverage ratio, a return ratio, a turnover ratio, or a component percentage By general characteristics, financial ratios can be classified as a liquidity ratio, a profitability ratio, a activity ratio, a financial leverage ratio, a shareholder ratio, and a return on investment ratio

UNIT 26: AUDITING

1.What are advantages and disadvantages of internal audit?

Internal audit helps companies identify the risks and barriers that they might face to achieve their business objectives Good internal audit systems will provide accounting controls against errors,

as well as a division of duties to reduce the possibility of misappropriations Internal auditors also make suggestions to management for improvements in the standard operating procedures and they seek to ensure that the various departments of the company follow the policies and procedures established by management If internal audit is done by the employees of the company, auditing cost will lower than one when they hire external audit and reduce unnecessary expenses

Internal audits report is not accepted by either the shareholders or tax authorities Internal audit are not completely independent Sometimes an internal audit is not done by the professional auditor therefore chances of internal auditor not detecting the errors are high

2.What are the importances of auditing ?

Firstly, auditing helps the companies ensure that their financial statements are completely accurate and compliant with the accounting standards and other legal regulations Secondly, auditing seeks to ensure that the various departments of the company follow the polices and procedures established by management, it can reduce the errors, fraud in economic transactions Finally, auditing makes suggestions to management for improvements in the standard operating procedures

3.What are advantages and disadvantages of external audit?

External audits can prevent employees of the company from committing fraud because the knowledge of an external audit can be served as a powerful fraud deterrent They detect the errors,can require related parties to corect them and prevent their occurrence in the future Financial statements that have been audited and verified by an external auditor are considered more reliable in the business marketplace than those that have not

The only disadvantage of external audit is the cost that you have to pay the auditors The more reputable auditing firms, the higher cost it is

Unit 27 International business

1.What are the advantages of world trade ?

There are many advantages of world trade It helps a country can develop their economy, increase production of good and meet market demand The interdependence among trading nations has provided increased business opportunities And many countries realized that

2.What are factors affecting a country‘s production efficiency?

A country‘s production efficiency may be the result of several factors, these are the climate, labor forces, natural resources, geographical locations, technology and government‘s policy Each country has its own characteristics For example, country like Singapore can develop their banking and trading because it is located on world trades routes

3.Why might a country encourage export? How they do it?

The country should encourage export because many reasons If a country export more than it import; it can increase wealth, create more jobs for people, promote the domestic production To encourage export, a government can provide marketing information, establish trade missions, subsidize export and provide tax benefits

4.What are the forms of import tariffs?

There are two forms of import tariffs : specific and ad valorem A specific tariff is a certain amount of tax for each unit of the product and ad valorem tariff is based on the value of the product

Unit 29: Trade barriers

1 What are advantages and disadvantages of trade barriers? Advantages: + Trade barriers can be beneficial to the aggregate domestic economy

They help domestic firms gain many benefits with higher sales, greater profits, and more

+ Trade barriers prevent the country from depending on the foreign imports and can

+ Trade barriers also protect domestic employment

Disadvantages:+Trade barriers can be harmful for domestic consumer because of higher

+ They also restrict the stimulation of technology development + Trade barriers can make relationship with foreign countries

2 What reasons do nations commonly use trade barriers?

+ To protect relatively young domestic industries that are not matures enough or large enough to compete with larger, more mature foreign producers +To prevent foreign imports to be sold in the domestic economy at prices below actual

UNIT 30: TRADE SURPLUSES AND DEFICITS

1 What are trade surplus and its effects to a country?

Trade surplus is the amount by which value of goods that a country sells to others countries is more than the value of goods it buys from them

The first effect of trade surplus to a country is enhancing trade and political positions of it This country can decrease dependence on others Besides, it can use the extra money to invest abroad,

or put it in foreign currency reserves Moreover, foreign currency reserves can be used to pay for many specific programs such as creating more jobs, building infrastructure,… And finally, the result of these above effects in turns impacts to country‘s economy, the domestic industry of the country can be promoted and economy is put in favorable conditions to grow

2 What are trade deficits and its effect to a country?

Trade deficit is the amount by which value of goods that a country sells to others countries is less than the value of goods it buys from them

The first effect of trade deficit to a country is increasing its dependence on others This country may be seen as a net consumer, not producer, of the world‘s economic output Besides, trade deficit makes decreasing of country‘s foreign currency reserves, so many specific programs of government can‘t be undertaken to assist residents and domestic industry Moreover, trade deficit can decrease a purchasing power of national currency In addition, it can prevent the country‘s economic growth because a country may have to sell off its assets, such as natural resources and commodities to pay for its consumption Eventually, the expectation of other countries which

invested in this country decrease, this results in reducing of the country‘s position in international market

3 What are the ways to reduce trade deficit?

First, the country running trade deficit needs to enhance the quality of imported goods and services as well as research and develop more new exporting products in which the country has comparative advantage in order to increase the value of exports Besides, it should enhance science and technology, improve production process to have ability to produce products what have ever been imported so as to decrease the value of imports Finally, the country should find and receiving the helping of foreign professionals as well as use ODA, FDI effectively in order

to conduct above purposes

PHẦN 3: CÂU HỎI THI

Unit 16: Corporate finance

I Fill in the gasp in the following sentences with suitable words or phrases in the

box

Working capital More calculatedCurrent liabilities equal

Equals analyzed liquidity inventories fix assets

liabilities fixed assets liquid analyzing less

1 Working capital management is the management of the company's monetary funds that deal with the short-term operating balance of currentassets and ………… ; the focus here

is on managing cash, inventories, and short-term borrowing and lending

2 ………… is a financial metric which represents operating liquidity available to a business, organization or other entity, including governmental entity

3 Along with ………….such as plant and equipment, working capital is considered a part

of operating capital

4 Gross working capital ………… to current assets

5 Working capital is ………… as current assets minus current liabilities

6 If current assets are ………… than current liabilities, an entity has a working capital deficiency, also called a working capital deficit

7 A company can be endowed with assets and profitability but short of ………… if its assets cannot readily be converted into cash

8 The management of working capital involves managing …………., accounts receivable and payable, and cash

9 Fixed capital is a concept in economics and accounting, first theoretically ………… in some depth by the economist David Ricardo

10 Fixed assets can be ………… by a business, in which case the business owns them

II Read the passage carefully and choose the best answer A, B, C, or D

Corporate finance

The field of corporate finance deals with the decisions of finance taken by corporations along with the analysis and the tools required for taking such decisions The principle aim of corporate finance is enhancing the corporate value and at the same time reducing the financial risks of the company In addition to this, corporate finance also deals in getting the maximum returns on the invested capital of the company The major concepts of corporate finance are applied to the problems of finance encountered by all type of firms.The discipline of corporate finance can be split into the short term and the long term techniques of decisions The investments of capital are the long term decisions relating to the projects and the methods required to finance them On the other hand, the capital management for working is considered as a short term decision that deals with the short term current liabilities and asset balance The main focus here rests on the management of inventories, cash and, the lending and borrowing on a short term basis.Corporate finance is also associated with the field of investment banking Here, the role of the investment banker is the evaluation of the various projects coming to the bank and making proper investment decisions regarding them.The decisions of capital investments are the long term decisions of corporate finance that are related to the capital structure and the fixed assets These decisions are based of several criteria that are inter-related The management of corporate finance attempts to maximize the firm's value by making investments in the projects that have a

positive yield The finance options for such projects have to be done in a proper manner

1 What is the principle aim of corporate finance?(D)

A: The principle aim of corporate finance is enhancing the corporate value

B: The principle aim of corporate finance is reducing the financial risks of the company C: The principle aim of corporate finance is to maximize or increase shareholder value D: Both Aand B are right

2 The sentense ―The principle aim of corporate finance is only enhancing the corporate value‖ is: (B)

A: True

B: False

3 The main focus here rests on the: (D)

A: The main focus here rests on the management of inventories and cash

B: The main focus here rests on the management of inventories and the borrowing on a short term basis

C: The main focus here rests on the management of inventories, cash and, the lending on

a short term basis

D: The main focus here rests on the management of inventories, cash and, the lending and borrowing on a short term basis

4 The word "yield" is closest in meaning to: (A)

B: Revenue

C: Produce

D: Productivity

5 What is the role of the investment banker?(B)

A: the role of the investment banker is supply funds for required business

B: the role of the investment banker is the evaluation of the various projects coming to the bank and making proper investment decisions regarding them

C: the role of the investment banker as a credit intermediate

D: the role of the investment banker is only evaluation of the various projects coming to the bank and making proper investment decisions regarding them

III Complete the following sentences

1 Corporate finance is a broad term that is ………

7 The finance manager monitors ………

8 The discipline of corporate finance can be split into ………

IV Answer the long questions below

1 What is the function corporate finance?

2 What is the role of corporate finance?

finance.Accountants balance the books, track expenses and revenue, execute payroll, and pay the bills They also compile all the financial data needed to issue

a company's financial statements in accordance with government regulations

development Finance experts in corporate development study acquisition targets, investment options, and licensing deals Often they assess the best firms to buy or invest in, such as pre-IPO cutting-edge technology companies with complementary products that could either extend the company's product line or mitigate competition

VI Vietnamses-English translation

1 Tạp chí tài chính doanh nghiệp nhằm mục đích công bố những thông tin chất lượng cao và phân tích các vấn đề lien quan đến tài chính doanh nghiệp

để phân bổ nguồn lực tài chính

 ………

………

………

Unit 17 : Funding the business

I.Fill in the gaps in the following sentences with suitable words or phrases in the box

Importer poorly leverage import soak up

Gearing hardly public services general whose

That conduct commodity exposed common

1 Customs duties are taxes on imports, paid by the ………

2 Public finance is used to pay for the ……… include education, transport service, health service and so on

3 Federal funds are general revenues, meaning Congress and the president can decide to spend them on just about anything when they ………… the annual appropriations process

4 Money is a commodity accepted by ……… consent as a medium of economic exchange

5 Token money is money that ……… face money or purchasing power is much more than the value of materials contained in it

6 Money does function ………… as a store of value when there is inflation in the economy

7 There are two main types of money: ……… money and token money

8 Owner‘s capital is the most ………… form of capital since a return is received only after all others calls on a company‘s profits have been satisfied

9 The amount of loan capital that a company has in relation to its share capital is its

…………

10 In harder times, the owner‘s earnings will drop dramatically as interest payment

……… most of the company‘s profits

II Read a passage and choose the correct letter, A, B, C or D

Owner's Capital—along with liabilities—can be thought of as a source of the company's assets Owner's Capital is sometimes referred to as the book value of the company, because owner's

Capital is equal to the reported asset amounts minus the reported liability amounts

Owner's Capital may also be referred to as the residual of assets minus liabilities These references make sense if you think of the basic accounting equation:

terms:

words used on the balance sheet when the company is a sole proprietorship If the company is a corporation, the words Stockholders' Capital are used instead of Owner's Capital An example of

an owner's Capital account is Mary Smith, Capital (where Mary Smith is the owner of the sole proprietorship) Examples of stockholders' Capital accounts include:

 Common Stock

 Preferred Stock

 Paid-in Capital in Excess of Par Value

 Paid-in Capital from Treasury Stock

 Etc

Both owner‘s Capital and stockholders‘ Capital account will normally have credit balances

1, Owner‘s Capital

A is able to be seen as a part of the company‘s assets

B is amounts owed to creditors for a past transaction

C is things that company owns

2, Which of following equation is correct ?

A Assets plus liabilities equal owner's Capital

Assets = Liabilities + Owner's Capital

Owner's Capital = Assets - Liabilities

B Owner's capitals minus assets equal liabilities

C Liabilities equal assets minus owner's capital

D Assets equal owner's capital over liabilities

3, The words "Owner's Capital" are applied to a sole trader business

A True

B False

4, Which of following statements are correct ?

(1) "Owner's Capital" is used on financial statement when the company is a sole proprietorship

(2) ―Stockholders' Capital‖ is used on partnership a company

10, The sources of fund make to increase gearing is ………

………

IV Answer two questions below

1 What are advantages and disadvantages of long-term loans?

V English- Vietnam translation

1 In early November 2014, the Ministry of Finance successfully sold $1 billion government bonds of 10-year term to restructure foreign loans at high interest rates

=>………

………

………

2 One significant advantage of equity capital versus loan capital is that you have no obligation

to make regular payments to investors so it allows you to use more of your incoming cash flow

to operate and grow the business

2 Nguồn vốn chủ sở hữu do chủ doanh nghiệp và các nhà đầu tư góp vốn hoặc hình thành từ kết quả kinh doanh, do đó nguồn vốn chủ sở hữu không phải là một khoản nợ

UNIT 18: MANAGEMENT OF WORKING CAPITAL

I, Fill in the gaps in the following sentences with suitable words or phrases in the box

Overdraft facility Investment banks Smaller Commercial banks Finance Work in progress Money market Stringently Credit card

1 is a credit agreement made with a financial institution that permits an account holder to use or withdraw more than they have in their account, without exceeding a specified maximum negative balance

2 Corporations and banks actively use the ………to earn interest on surplus funds that they expect to have only temporarily

3 ……… make profit from the difference between the interest rates they pay to lenders or depositors and those they charge to borrowers

4 ………make profit from the fees and commissions they charge for their services

5 Working capital is required to ……… the gap between payment due to suppliers

and payment owed by customers

6 In the ……… , shares are maneuvered from one investor to other, that is, one

investor buys an asset from another investor instead of an issuing corporation

7 Working capital management ensures a company has ……… cash flow in order to meet its short-term debt obligations and operating expenses

8 Short-term securities have ………fluctuations in prices than long-term securities

9 There are three types of inventory : raw material, ……… and finished good

10 The loss of customer goodwill finally leads to loss of sales and results once again in

……… cost controls

II Read the passage carefully and choose the best answer A, B, C or D

Working capital is the money needed to fund the normal, day-to-day operations of the business It ensures the company have enough cash to pay the debts and expenses as they fall due, particularly during start-up period of the company Very few new businesses are profitable

as soon as they open their doors It takes time to reach the breakeven point and start making a

profit

The working capital cycle measures the time between paying for goods supplied and the final receipt of cash to the company from their sale It is desirable to keep the cycle as short as possible as it increases the effectiveness of working capital The working capital cycle is made

up of four core components: cash (funds available), creditors (accounts payable), inventory (stock on hand), debtors (accounts payable)

The right level of working capital depends on the industry and the particular circumstances of the business It is important for the company to work out the right level of working capital they will need If the working capital is too high, the business will have surplus

funds which are not earning a return Conversely, if the working capital is too low, it may indicate that your business is facing financial difficulties

The key to successful working capital management is to be in control of each step in the cycle If you can quickly convert your trading operations into available cash, you will be increasing the liquidity in your business and will be less reliant on cash from customers, extended terms from suppliers, overdrafts, and loans

1 What is working capital needed to?

A pay day-to-day expenditures of the company such as rents, salaries, fees,

B to pay for large amount of abnormal expenses of the company

C to buy non-current assets such as plants, machines, equipments,…

D to reinvest for the prosperity of the business

2 What does the phrase “breakevent point” in the last sentence of the first paragraph mean?

A The point at which the business makes a large loss

B The point at which income and expenses of the business are exactly equal

C The point at which the business is not able to cover all the operational expenses

D The point at which the business goes bankrupt

3 How many important issues are there that working capital management is concerned about?

A the field in which the company is operating

B the situation of the company

C the need of acquiring new fixed assets of the company

D A and B

II Complete the following sentences

1 Profitability is determined in part by the way in which

2 One of the principal functions of financial management is

3 Working capital can initially be broken down into two types:

4 Permanent working capital is tied up in while temporary working capital is need to take account of

5 Both types of working capital have three major applications:

6 Inventories can be further divided into

7 The job of the finacial manager in inventory management is to minimize

8 The just-in-time is aimed at reconciling

9 On the debtor side, it is the task of financial management to see that

10 Sound cash management will ensure that

IV Answer the following questions:

3 What are the roles of working capital management?

4 What are the tasks of working capital management?

IV English-Vietnamese translation (1,5 points)

1 About 89 percent of credit institutions and foreign bank branches in Vietnam said their liquidity was better in 2014 and that they expect this situation to continue throughout 2015