Corporate finance consist of the financial activities related running a _____(1)___. Corporate finance includes planning, raising, investing and ____(2)_____ of finance. The ____(3)____of corporate finance is to accomplish the financial aims of the company. Corporate finance is primarily concerned with maximizing the return on the finance through longterm and shortterm financial planning_____(4)_____. One of the most important tasks of corporate finance is to make capital____(5)____. The decision process of making capital investments is mainly concerned with capital ____(6)____. So in the first step of investing, you need to look at your whole company’s financial picture. Though capital budget, we can answer the question “How much finance is required by the company” Second, assess your____(7)____ for risk in order to identify capital expenditure ___(8)____ by company. Third, make your____(9)____, start by establishing the broad categories that will make up your portfolio such as stock, bonds and other investment ventures. Finally, make your decisions on question like:” How much capital is used to invest?. Where to invest in?”. In addition to handling the use of investment capital, corporate finance is also responsible for sourcing capital in the form of debt or____(10)____.
Trang 11 Choose the best answer to fill the blank:
Asset Budgets Portfolio Manages Investments Strategies Subjected Goal Policy Consequence Tolerance Corporation Equity Monitoring Corporate finance consist of the financial activities related running a _(1) _ Corporate finance includes planning, raising, investing and (2) _ of
finance
The (3) of corporate finance is to accomplish the financial aims of the company
Corporate finance is primarily concerned with maximizing the return on the finance through long-term and short-term financial planning _(4) _ One
of the most important tasks of corporate finance is to make capital (5) The decision process of making capital investments is mainly concerned with
capital (6) So in the first step of investing, you need to look at your
whole company’s financial picture Though capital budget, we can answer the
question “How much finance is required by the company”
Second, assess your (7) for risk in order to identify capital expenditure _(8) by company
Third, make your (9) , start by establishing the broad categories that will make up your portfolio such as stock, bonds and other investment ventures
Finally, make your decisions on question like:” How much capital is used to
invest? Where to invest in?”
In addition to handling the use of investment capital, corporate finance is also
responsible for sourcing capital in the form of debt or (10)
Trang 22 Reading comprehension:
The easiest way to identify the differences between corporate and public finance is to identify what each type of finance is individually, and then compare the two Broadly speaking, corporate finance is finance
concerned with businesses, whereas public finance is the allocation of
money by public bodies (namely the government) in order to provide
equality and fairness within the economy for individual people
Corporate finance aims to provide the maximum financial benefit for the shareholders of a business or industry which is privately owned
Corporate finance involves both long and short term decision being made, which will benefit shareholders whilst also allowing the business itself to remain stable Investments of money into new products, research and
development, and marketing are all examples of long term decision, which will benefit the company in the long term
On the other hand, short term decision may involve managing the current flow of cash – ensuring that income and output are at least balanced, and monitoring the company’s spending in other to make changes via long term decision in the future Investment banking is also associated with corporate finance Investment banking is when a company’s finances, their income and their expenditure, are assessed in order to make them more efficient and profitable Investment banking can help companies to expand and grow Overall, the world of corporate finance is highly competitive and involves very large amounts of money – thousands, if not millions, of
dollars
On the other hand, public finance is the area of the economy in which the government aims to supplement and aid the economy If market failure
Trang 3occurs, when the private sufficient goods or capital, then the government will become involved via public finance in other to rectify any wrong or deficiencies in the economy as a result Taxes and a country’s balance of payments deficit or surplus are all connected with public finance
Question comprehension:
1 What is the meaning of this paragraph?
A Definition of corporate finance
B Public finance aims
C The difference between corporate finance and public finance
D Encouraging the economy
2 Which of the following is NOT a role of corporate finance?
A Provide the maximum financial benefit for the shareholder of a business
B Managing the current flow of cash
C Investment of money into new products, research and development
D Allocation of resources and distribution of income
3 What is meaning of word rectify in paragraph?
A Repair
B Improve
C Promote
D Damage
4 Which of the following is the aims of public finance?
A Supplement the economy
B Rectify any wrongs or deficiencies in the economy
C Provide equality and fairness for individual people in the economy
D A,B and C
5 What is the difference between corporate finance and public finance?
A Goals
B Roles
C Subjects
D A,B and C
3 Matching the words or phrases in column A with their definition in column B:
Trang 4A B
1 Corporate finance A To additional, the company
can raise money in two ways
managing a firm’s long-term investments
3 Fixed capital and working
capital
C Is used to purchase fixed assets like land, buildings, machinery, etc
4 Monitoring of finance D Is such a broad term that is
used to indentify the various financial transactions
performed by a company or a large company
5 Internal and external E Is used to purchase raw
materials, pay the day-to-day expenses like salaries, rent, taxes, ect
6 Capital budgeting F The total amount of that an
organization or person spends
7 Fixed capital G In the company, they often
have two kinds of finance
8 Working capital H The management of large
amounts of money, especially
by governments or companies
9 Expenditure I The mixture of debt and
equity maintained by a firm 10.Capital structure J Help to reduce expenses aim
to avoid wastefulness and maximize profits
4 Make up sentences.
1 Stockholder / owner /one / or/ more share/corporation/ capital stock
………
………
2 Debentures / type / of / debt instrument /that / not secured / physical assets / or / collateral
Trang 5………
3 Debt help/ the public / the total amount / government owes / all of its creditor / the / general public
………
………
5 Translation
a English – Vietnamese
1 Financial intermediary firm that raises money from many small investors and provides financing to businesses or other organizations
by investing in their securities
………
………
………
2 The separation between management and ownership gives a
corporation more flexibility and permanence than a partnership Even
if managers of a corporation quit or are dismissed and replaced by others, the corporation can survive
………
………
………
3 In accounting and finance, equity is the difference between the value
of the assets and the cost of the liabilities of something owned
4 Profit is reflected in reduction in liabilities, increase in assets, and increase in owners' equity
………
………
b Vietnamese - English
Trang 61 Hàng tồn kho là tài sản trong khâu dự trữ của quá trình sản xuất kinh doanh, là loại tài sản ngắn hạn vì nó thường được bán đi trong vòng một chu kỳ hoạt động kinh doanh thông thường
………
………
………
………
2 Chi phí cơ hội được sử dụng như là căn cứ để so sánh với lợi ích thu được khi thực hiện các sự lựa chọn, và đó là chi phí kinh tế
………
………
………
………
3 Bản cân đối kế toán cho biết tình trạng tài sản của công ty, nợ và vốn cổ đông vào một thời điểm ấn định
………
………
4 Chức năng của quản lý tài chính thường là kết hợp với quản lý của công
ty ví dụ như phó chủ tịch tài chính hoặc một vài giám đốc tài chính khác
………
………
………
5 Quản trị tài chính doanh nghiệp bao gồm các hoạt động liên quan đến đầu tư, tài trợ và quản trị tài sản theo mục tiêu chung của công ty là tối
đa hóa lợi nhuận doanh nghiệp
………
………
………
Trang 7Đáp án
1
1 Corporation 2 Monitoring 3 Goal 4.Strategies 5 Investment
6 Budgets 7.Policy 8 Manages 9.Portfolio 10.Equity
2
1 C
2 D
3 A
4 D
5 D
3
1 D
2 H
3 G
4 J
5 A
6 B
7 C
8 E
9 F
10 I
Trang 84
1 A stockholder is the owner of one or more shares of a corporation's capital stock
2 A debentures is a type of debt instrument that is not secured by
physical assets or collateral
3 Debt help by the public is the total amount the government owes to all
of its creditor in the general public
5
a English – Vietnamese
1 Công ty trung gian tài chính làm tăng tiền từ nhiều nhà đầu tư nhỏ và cung cấp tài chính cho các doanh nghiệp hoặc các tổ chức khác bằng cách đầu tư vào chứng khoán của họ
2 Việc tách biệt giữa quản lý và sở hữu tính linh hoạt một công ty nhiều hơn và lâu bền hơn so với quan hệ đối tác Ngay cả khi các nhà quản lý của một công ty bỏ việc hoặc bị sa thải và thay thế bởi những người khác, các công ty có thể tồn tại
3 Trong kế toán và tài chính, vốn chủ sở hữu là sự khác biệt giữa giá trị của các tài sản và các chi phí của nợ phải trả của một cái gì đó thuộc sở hữu
4 Lợi nhuận được phản ánh trong việc giảm nợ, gia tăng tài sản và tăng vốn chủ sở hữu
b Vietnamese – English
1 Inventory is easily reserve assets of the production business, the kind of short-term assets as it is usually sold within a period of normal business activities
2 The opportunity cost is used as a basis for comparison with the benefits obtained when making choices, and that is the economic cost
3 The balance sheet indicates the status of the company assets, liabilities and shareholders' equity at a fixed time
Trang 94 The function of financial management is often associated with
management of companies such as financial vice president or some other financial director
5 Enterprise Financial Management includes activities related to the
investment, financing and asset management in accordance with the company's overall goal is to maximize corporate profits