1 ……………….. 3 ……………….. 5 ……………….. 7 ……………….. 9….……………..
2 ……………….. 4 ……………….. 6 ……………….. 8 ………………..
Answer the questions:
1. What is finance concerned with?
……………………………………………………………………………
2. What does the term “these entities” in the text refer to?
……………………………………………………………………………
3. How can an industrial firm raise money?
……………………………………………………………………………
4. Prove that finance plays an important role in the economy?
………………………………………………………………………..
5
Does bank let money sit idle?
………………………………………………………………………….
Exercise 6: Read the passage below and choose suitable words given to fill in the gaps,
receive
debt equity bond share capital
invest
lending
interest
shareholders
investment ownership profit
Capital is money that a company uses to operate and develop. There are two main ways in
which a company can raise capital: it can use (1) ………………. or loan capital, from
investors. These are people or organizations who (2) ………………. in the company; they
put money in hoping to make more money.
Share capital is contributed by (3) ………………. who put up money and hold shares in the
company. Each share represents (4) ………………. of a small proportion of the company.
Shareholders (5) ………………. periodic payment called dividends, usually based on the
company's (6) ……………….during the relevant period. Capital in the form of shares is also
called (7) ……………….A venture capitalist is someone who put up money for a lot of new
companies.
Investors can also lend money, but then they do not own a small part of the company. This is
loan capital, and an investor or financial institution (8) ………………. money
in this way is a lender. The company borrowing it is the borrower and may refer to money as
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