D.4. Give synonyms for the italicized words in each sentence below, or briefly explain their meaning.

1. Although banks and thrifts remain the main institutions offering checkable deposits, their shares of total financud assets (value of thingsowned) are declining.

2. Pension funds, insurance companies, securities-related fuiris, and especially mutual funds have all expanded their shares of financial assets.

3. They would like to oiiev stock accounts, much as mutual fund companies and security-related companies do now.

4. Globally, financial capital increasingly flows in search of the highest risk-adjusted returns.

5. In the future, account holders will he able to load sums from their E-cash accounts onto so-called stored-value cards.

PRACTICAL LESSON 11. TAXATION. BUDGET

Прочитайте и переведите текст.

Budget

The process of calculating the costs of starting a small business begins with a list of all necessary purchases including tangible assets (for example, equipment, inventory) and services (for example, remodeling, insurance), working capital, sources and collateral. The budget should contain a narrative explaining how you decided on the amount of this reserve and a description of the expected financial results of business activities. The assets should be valued with each and every cost. All other expenses are like labour factory overhead all freshmen expenses are also included into business budgeting.

The budget of a company is often compiled annually, but may not be. A finished budget, usually requiring considerable effort, is a plan for the short-term future, typically one year. While traditionally the Finance department compiles the company's budget, modern software allows hundreds or even thousands of people in various departments (operations, human resources, IT, etc.) to list their expected revenues and expenses in the final budget.

If the actual figures delivered through the budget period come close to the budget, this suggests that the managers understand their business and have been successfully driving it in the intended direction. On the other hand, if the figures diverge wildly from the budget, this sends an 'out of control' signal, and the share price could suffer as a result.

A budget is a fundamental tool for an event director to predict with reasonable accuracy whether the event will result in a profit, a loss or will break-even. A budget can also be used as a pricing tool.

There are two basic approaches or philosophies when it comes to budgeting. One approach focuses on mathematical models, and the other on people.

The first school of thought believes that financial models, if properly constructed, can be used to predict the future. The focus is on variables, inputs and outputs, drivers and the like. Investments of time and money are devoted to perfecting these models, which are typically held in some type of financial spreadsheet application.

The other school of thought holds that it’s not about models, it’s about people. No matter how sophisticated models can get, the best information comes from the people in the business. The focus is therefore in engaging the managers in the business more fully in the budget process, and building accountability for the results. The companies that adhere to this approach have their managers develop their own budgets. While many companies would say that they do both, in reality the investment of time and money falls squarely in one approach or the other.

 

1. Соотнесите слова и их определения.

1. purchase	a.property or other goods that you promise to give someone if you cannot pay back the money they lend you
2. collateral	b. the things that a company owns
3. assets	c. something you buy, or the act of buying it
4. budget	d. the amount of money that you have to pay in order to buy, do, or produce something
5. costs	e. the money that is available to an organization or person, or a plan of how it will be spent