READING.

FINANCE

TIVITY
1. Choose the best answer for the questions.

( ) 1. The writer says that CFOs should:

a. Make long-term plans carefully and not worry about day-to-day market behavior.
b. Think about both long-term goals and frequent changes in the market.
c. Focus on current market behavior, because it is not possible to make long-term plans.
( ) 2. The writer says that:
a. Company financial information must reach everyone in the company within three days.
b. Financial information from the company must reach the market within three days.
c. Investors ask for information within three days.
( ) 3. Problems when reporting financial information include:
a. Giving information at different times or every 24 hours.
b. Not giving warnings about losses or leaving out comments about risky business.
c. Analyzing the information incorrectly or speculating what the information means.
( ) 4. Business models are used to:
a. Help analysts create their own
b. Generate and keep cash
c. Coordinate long- and short-term plans
( ) 5. The value of a company is created by:
a. Its share price
b. Its investors
c. Keeping enough cash

2. Match the sentence halves together to make sentences expressing the

ideas in the text.

( ) 1. Some analysts are not sure if a. Be passed on within a few days.

companies should have
( ) 2. To be successful, it is necessary
to have a stable source of
( ) 3. Financial information within the
company must
( ) 4. It is not a good idea to release
unexpected
( ) 5. Companies find it difficult to
produce
( ) 6. If a company does not have a
believable and well-structured
b. Business plan, experts may create
one for the company.
c. Accurate accounts quickly.
d. Shareholder value as their goal or
as a result of having done an
excellent job.
e. Business announcements of
financial results.
f. Revenue and report the results
quickly and dependable.

3. Find the UNDERLINED words and phrases in the text which match these
definitions.

_________________ 1. Likely to change suddenly and unexpectedly.

_________________ 2. Believable and can be trusted.
_________________ 3. Decide what the meaning of something is.
_________________ 4. An offer of money for something.
_________________ 5. Money and possessions used for starting a business or creating wealth in
an organization.
_________________ 6. Able to continue over a period of time.
_________________ 7. Trust in someone or something.
 _________________ 8. Impossible to understand.

4. Match these words to make phrases used in the text.

( ) 1. Shareholder a. Revenues
( ) 2. Long-term b. Faith
( ) 3. Sustainable c. Calls
( ) 4. Credible d. Value
( ) 5. Undermine e. Planning
( ) 6. Cash f. Business model
( ) 7. Lose g. The share price

5. Complete the sentences using phrases from exercise 4. You may have TO
CHANGE the form of the verb.

1. The recent error in production has _____________________________ an seen stocks

in the company drop by 20 percent.
2. We need to think where we want the company to be in ten year´s time not just
next year. We need to focus on _____________________________.
3. The _____________________________ will not be popular with our shareholders, but
it will give us the funs we need for investment.
4. After a poor performance last year people have _____________________________ in
our company and do not want to invest.
5. Business start-ups must present a _____________________________ if they want to
receive a bank loan.
6. It is important to maintain _____________________________ as well as just profit
margins or we will not have money to put back in the business.
7. Mergers can often lead to a jump in the value of shares which can increase
_____________________________ in a company.