Financial English Reading and Writing Name/Number__________________ Vocab. Component of Midterm----Walzem, Fall 2009 Fill blanks with words from list. Use each word only once. A partnership is not a legal entity, separate from its owners, so in the case of ____________ a partner with a personal fortune can lose it all. To avoid this, most businesses are in the form of a ____________ in which investors can only lose the money which they have invested. If a company fails, all of its ____________ are _____________ to pay its debts. If its these do not cover the debts, the businesses _____________ simply do not get their money back. Liquidate(d) mortgage(r) creditor(s) bankrupt(cy) corporation(s) omelet(s) asset(s) In business ___________ usually demand quick payment, but customers usually insist on extended ____________, so the more you sell, the more cash you need. This can cause a _____________ crisis: the business does not have enough cash to pay short term expenses. In that case, a ____________ cash flow can only be restored if the business stops “overtrading” and waits for some of its customers to pay their bill. However, some companies don’t get to this point and become ______________:which means unable to meet their liabilities. Positive credit liquid(ity) bonanza supplier(s) insolvent bogus A. After the merger, the new company will be able to draw on a huge _____________ of resources. B. Because its low taxes make it attractive to investors, money is ______________ into Taiwan. C. If we don’t find a new _______________ of funds, we are going to _________________ money soon! D. If private funding really does ______________, we will have to turn to the government for help. E. There is a constant __________________ of money in and out of the system. F. We’re __________________ as much money as we can into this project, billions in fact. G. We’ve sunk millions of NT dollars into this project. It has become a terrible ____________ on our funds. H. We have a liquidity problem; more money is _______________ out of the business than into it. I. When you see their beautiful and fancy new offices, you think they must be _____________ in cash. Flow trickle source flood swim pool dry up run out of ebb and flow channel drain pour awash Circle the letter of the correct answer. 1. All the money received by a person or company is known as: a. aid b. income c. wages d. salary 2. The money needed to start a business is known as: a. aid b. capital c. debt d. investment 3. Regular part payments of debts are called: a. installments b. deposits c. loans d. write-offs 4. Estimated expenditure and income is written in a: a. statement b. journal c. reserve d. budget 5. Banks make their profits on the difference between the interest rate charged to borrowers and interest Rate paid to depositors. This is known as a: a. ceiling b. cap c. base rate d. margin 6. Many loans have a variable or ______________ interest rate, that changes with supply and demand. a. Spreading b. ceiling c. floating d. fixed 7. The government’s federal bank fixes a minimum interest rate, called the discount rate, at which it makes secured loans to: a. big companies b. private individuals c. commercial banks d. new businesses Correct the sentences below as needed (just repair the errors—you don’t have to re-write them). 1. I’ll very appreciate to you! 2. My father is a business but failing. 3. She taked away all my money. 4. Can you borrow me some money? 5. I have already prepared every documents. 6. I wrote this mail to ask you to borrowing me some money.