‫التصحيح النموذجي المتحان اللغة االنجليزية‬

Corporate Finance

Corporate finance is considered as a sub-discipline in the field of Finance.

Corporate finance includes any decisions made by a business that affect its
finances in order to maximize the value of the shareholders’ wealth ,i.e. to
increase the value of a business through planning and implementing
management resources and to minimize the risk .
Corporate financing is based on three principles namely the Investment
principle, financing principle and the Dividend decision principle which work as
a guideline for the corporate to ensure better application of finance. The
investment principle is the most productive principle which establishes where
corporations and firms invest their funds and resources .This principle also
involves the working capital decisions like the allotment of credit days to the
customers. Financing is one of the crucial tasks of a corporate finance manager
as it guides a manager to evaluate all the available alternatives to ensure the
minimization of the cost of capital with an optimal risk. As for the Dividend
decision principle, it deals with what should the firm do with excess resources.
This latter comes from different sources of funds, it can be either debt or equity
funds. The thing is whenever an equity fund is collected from the investors; they
expect a return from that monetary contribution. So, to repay their expectation is
made by paying dividends.

Questions

I. Answer the following questions : (2pts)

1. What is corporate financing? And what is its relation with finance?
Corporate finance includes any decisions made by a business that affect its
finances in order to maximize the value of the shareholders’ wealth and it is
considered as a sub-discipline in the field of Finance.
2. On what basis corporate financing is grounded? Explain
Corporate financing is based on three principles namely the Investment
principle, financing principle and the Dividend decision principle which work as
a guideline for the corporate to ensure better application of finance.

II. Say whether the following statements are true or false: (3pts)

 Corporate financing is based on four principles. (false)

  Corporate financing can augment the value of the stockholders (true)
 The dividend decision principle deals with what the firm should do with
excess resources. (true)

III. Find the opposite of each word: (1pt)

Maximize ≠ minimize seller ≠ buyer/ costumer

IV. Find the synonyms of each word: (1pt)

Companies = firms Danger = risk

V. What or who the underlined words refer to in the text? (1pt)

This latter = excess resources
This principle = the investment principle

VI. Put the verbs in brackets into their correct forms ! (6pts)

1- I could repair the roof myself if I had (have) a ladder.

2- Sarah is watching (watch) a film in this moment.
3- Did it snow (it/snow) last winter?
4- Ann doesn’t water (not/water) the plants every day.
5- Look! The baby is walking (walk).
6- Kate usually paints in her free time. (paint).

Translate the following words into Arabic : (6pts)

Dividend = ‫حصة االرباح‬

Shareholder = ‫المساهمين‬

Firm = ‫ شركة‬.

Capital = ‫رأس المال‬

Commodities = ‫ البضائع‬/‫السلع‬

Expenditures = ‫ النفقات‬.

Best of luck