TEST 2 – UNIT 17 - Funding the business

Test review 2
I.FILL IN THE GAPS IN THE FOLLOWING SENTENCES WITH SUITABLE
WORDS FROM THE BOX

Gearing Increase Pure expand used to for

consequences so that seed term loan leverage exceed long-term

1. ………..increases profits many times with available resources

2. In financial investment, investors use capital through borrowing or other forms of
borrowing to………….. available capital.
3. The most commonly ……….financial instruments are option contracts, futures
contracts, and stock options. .
4. You must look at the company’s…………..level and its ability to service its debt
5. If the loan used to invest losses, the …………..for investors worse than many times
invested by investment.
6. A company faced with demand that……… its possibility to supply is also likely to
raise its prices
7. Taking advantage of capital, we often know two types of applications: financial
investment and……….. business
8.One of the most common forms of business financing, a……….is a medium-to-long-
term loan option with term that last anywhere from one to ten years
9.Depending on the reason …..…the loan, term loans have many advanteages when
compered ……. other forms of debt financeing
10. There are two common types of mobilization: ……… capital and venture capital
11.Other private equity strategies include bribing founders, paying cash to current
investors, extending capital to……………..or refinancing for struggling businesses.
12. Venture capital is money provided by investors to startup firms with………..growth
potential

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 TEST 2 – UNIT 17 - Funding the business

II. READ THE FOLLOWING ARTICLE AND CHOOSE THE BEST ANSWER.
The government has finally provided a permit to repair St. Paul’s Cathedral. Jean Goulet,
the head of the architectural design office undertaking the project, noted “The
government took 4 months to evaluate the cathedral’s current status and decide whether
the repairs are needed. We knew the government would approve the project proposed by
our office because it will only benefit the public”. He also remarked that “the project will
commence within a month, with repairs expected to last 12 months.”
The government announced this morning that they will be financing 90% of the project ,
while private individuals and corporations will be providing the rest of the funding.
Following this announcement, Jean Goulet emphasized the importance of the project by
insisting that St. Paul’s Cathedral has always been a major tourist attraction, with 250,000
tourists visiting the church annually.
The architectural design office stated that parts of the cathedral will remain open to the
public while under repairs. The office is planning to set up a model of the renovated
cathedral nearby to allow tourists to see how it will eventually look.
As mentioned by the government, the office is collecting contributions from individuals
and corporations for the repairs. Each and every contribution will help make the project a
success. For more information, visit our website at www.st.paulscathedral.com
1. What is the topic of the article?
A. Repairs of an important structure
B. Specific architectural plans
C. Raising money to support renovations
D. Overview of St. Paul’s Cathedral
2. When will the repairs begin?
A. In a month
B. In 4 months
C. In 8 months
D. In 12 months
3. Who is Jean Goulet
A. Government official
B. Architect

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 TEST 2 – UNIT 17 - Funding the business

C. Manager of a company
D. Tourist
4. What is NOT mentioned about St. Paul’s Cathedral?
A. It is a major tourist attraction
B. Around 250,000 tourists visit the place annually
C. The cathedral renovation process will last 4 months
D. The government has approved the repairs
5. The word “evaluate” in paragraph 1, line 3 is closest in meaning to
A. Level
B. Evaporate
C. Assess
D. Rate
III. MAKE SENTENCES BASED ON THE GIVEN WORDS
1. Loans / very / common / funding method / small / business

…...………..…………………………………………………….
2. Most / business / require / outside / funding , / but / many small business / owner /
not / know / where / find / it/ or / how much / ask / for

………………………………………………………………….
3. Successful time / owners / have / claim / all / net profit / company

…………………………………………………………………
4. Venture capital / usually / provide / venture firms/ interest / finance / high-growth /
companies

………………………………………………………………….
5. When/ start/ a new business/,first /concern that /must/address/ how / proper / fund/
equity

…………………………………………………………………..

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 TEST 2 – UNIT 17 - Funding the business

6. A grant/ usually/ design/promote /economic growth /or/ instigate research/ a

particular industry.

……………………………………………………………………
7. Least/ 25% / equity / must / be public hands/ thereby/ reduce / control / original /
owners

…………………………………………………………………
8. They / will /usually/ secure / debt/ fixed assets / business / and / of course /
interest/must / pay / usually/ link/ bank / base rate

…………………………………………………………………
9. Shareholders / receive / periodic payments / call / divindends, / usually / base on /
company / profit / during / relevant period

…………………………………………………………………..
10. There /a variety /option/ external/ startup funding/, include/ bank/ loan/, borrow
/family and friends/, /equity /investment/a business angel/, /crowdfunding/,funding
grants.

………………………………………………………………....
IV. MATCHING A WORD WITH THE SUITABLE MEANING

A.is a legal status of a person or other entity that cannot repay debts to
1.Gearing creditors.

B. in which such national currencies as dollars, peos, deutschemarks,

yens, and others are exchanged without fixed hours and physical meting
2.Net profit place.

3.Merchant Bank C. where stock brokers and traders can buy and sell securities, such as
shares of stock and bonds and other financial instruments, it may also
provides for facilities the issue and redemption of such securities and
4.Stock Exchange instruments and capital events including the payment of income and
dividends.
5.Leverage
D. is the relationship between equity capital invested in the business and
long-term debt.
6.Primary Market
E. The part of a company's capital employed that is not equity capital,
7.Bankruptcy earns a fixed rate of interest instead of dividends, and must be repaid

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within a specified period, irrespective of the company's financial position.

8.Shareholder
F. involving the use of borrowed funds in the purchase of an asset, with
the expectation that the after tax income from the asset and asset price
9.Loan capital appreciation will exceed the borrowing cost

10.Debt financing G. the actual profit after working expenses not included in the calculation
of gross profit have been paid.

11.Venture capital H. a bank that does business with large companies and governments,
providing them with finance and with advice relating especially to shares,
bonds, etc. and takeovers.

J. is a financial market in which new issues of a security, such as a bond or

a stock are sold to initial buyers by the corporation or government
agency borrowing funds

K. An individual, group, or organization that owns one or more shares in

a company, and in whose name the share certificate is issued

L. is a financial market in which securities that have been previously

issued can be sold

M. Part of a firm's total financing, it commonly comprises of short-term

bank borrowings (such as overdraft), cash raised through debt
instruments (such as bonds), off-balance-sheet financing (such as
operating leases), and trade credit

N. money that is invested in a project in which there is a substantial

element of risk, typically a new or expanding business.

V. ANSWER THE FOLLOWING QUESTIONS

1. How can a company raise capital?
……………………………………………………………………………………..
……………………………………………………………………………………..
……………………………………………………………………………………..
2. How many forms of securities? What are they? How are they generated?
……………………………………………………………………………………..
……………………………………………………………………………………..

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 TEST 2 – UNIT 17 - Funding the business

……………………………………………………………………………………..

VI. TRANSLATE ENGLISH – VIETNAMESE

1.The Ministry of Planning and Investment (MPI) is drafting a legal document on
allowing Vietnam to receive the venture capital flow, which is hoped to turn Vietnam
into a country with startup movement.
……………………………………………………………………………………..
……………………………………………………………………………………..
……………………………………………………………………………………..
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.
……………………………………………………………………………………..
……………………………………………………………………………………..
……………………………………………………………………………………..
3. The Government needs to spend probably 25 billion dollars a year on infrastructure
development in order to keep encouraging foreign direct investment to come in.
……………………………………………………………………………………..
……………………………………………………………………………………..
……………………………………………………………………………………..
VII. TRANSLATE VIETNAMESE - ENGLISH
1. Nguồn vốn chủ sở hữu do chủ doanh nghiệp và 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.
……………………………………………………………………………………..
……………………………………………………………………………………..
……………………………………………………………………………………..
2. Trên sàn chứng khoán, chủ tịch Vingroup nắm khoảng 30,16% cổ phần của tập đoàn,
với giá trị thị trường sấp xỉ 20.000 tỷ đồng và hiện vẫn đứng đầu danh sách những người
giàu nhất

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 TEST 2 – UNIT 17 - Funding the business

……………………………………………………………………………………..
……………………………………………………………………………………..
……………………………………………………………………………………..
3. Vốn mạo hiểm cũng được kết hợp với giải quyết việc làm và được sử dụng như một
biện pháp đổi mới trong một ngành kinh tế hay khu vực địa lí
……………………………………………………………………………………..
……………………………………………………………………………………..
……………………………………………………………………………………..

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