Banking, Stocks & Shares, Bonds

Week 10Business English 2Professor Hayashi

Today’s Class

• attendance & homework check (mindmap)

• review• banking vocabulary• stocks & sharesBREAK• bonds• show me the money!

VocabularyIn a NEW pair, do exercise 1A on page 85ANSWERS:1. overdraft2. credit card3. cash dispenser/ATM4. loan5. standing order/direct debit6. mortgage7. cash card/debit card8. home banking9. current/checking account10.deposit time/notice account

Vocabulary in reference to text

Stocks & Shares• Scan the article on page 91 to answer the

questions in 1BANSWERS:1. Because a non-incorporated business (i.e. one that

is not a company) has unlimited liability for debts. If it owes money, the people involved in it are not protected from bankruptcy and can lose their personal possessions. A company provides legal protection and limited liability.

2. In order to raise capital, generally to expand the business.

3. Shares give their holders part of the ownership of a company. Shareholders receive a proportion of a company’s profits as a dividend, and may be able to make a capital gain by selling their shares at a higher price than they paid for them.

BondsDo exercise 2B, 2C in groupsANSWERS2b1. C (see first paragraph)2. C (if interest rates have gone up, bondholders may get less than

they jpaid for a bond, and if a company seems to be going bankrupt, no one will buy their bonds at any price, hence ‘try to get their money back’)

3. B (see 3rd paragraph)4. C (see 4th paragraph. A is false because the advantage of bonds

over bank loans is not a fiscal advantage, but a matter of borrowing costs)

5. B (see final paragraph)

Vocabulary

SHOW ME THE MONEY!• bankers vs. small business owners• only one loan to give• think of a product/service and

prepare facts/figures about costs, sales projections, profit margins, repayment periods, existing competitors, new competitors, etc.

• the bankers will decide who to give the loan to (and professionalism points!)

HOMEWORK!

DO EXERCISE 1C ON PAGE 97