ENGLISH FOR FINANCE 2 mindmap

Unit 16 Corporate Finance Definitions FunctionsTasks GoalsObjectives Broad term identify various financial dealings ENGLISH FOR FINANCE 2_MindmapENGLISH FOR FINANCE 2_MindmapENGLISH FOR FINANCE 2_MindmapENGLISH FOR FINANCE 2_MindmapENGLISH FOR FINANCE 2_MindmapENGLISH FOR FINANCE 2_MindmapENGLISH FOR FINANCE 2_MindmapENGLISH FOR FINANCE 2_Mindmapvvvv undertaken by the corporation Develop and increase sufficient operation budgets En.

Bui Thi Quynh Anh - CQ56/21.09 Broad term identify Definitions various financial dealings undertaken by the corporation Develop and increase sufficient operation budgets Ensure effective use of financial resources available to the company Functions/Tasks Core Function: make wise use of financial resources available to the company Supervise (in coordination with other departments) all economic activities Unit 16: Corporate Finance Making wise use of the financial resources available to the company Developing an operating budget that meets all the needs of the company Goals/Objectives maximum benefit from available resources Core goal minimum amount of expenditure required attaining the benefit Tracking (theo dõi) income generated from various operations and investments Take decisions on questions like How much finance is required Planning What are the sources of finance How to use the finance Raise finance for the company form many sources Raising Fixed capital: purchase fixed assets (lands, machinery ) shares, debentures, financial institutions Activities Investing Use the finance to achieve the goals/ objectives Minimize cost of finance, the misuse, wastage, the risk of investment Monitoring Maximum return on finance Two types of finance resources Working capital: purchase raw material, day-to-day expense Bui Thi Quynh Anh - CQ56/21.09 equity capital invested in the company Gearing Defintions Capital relationship long-term debt is the money that a company uses to operate and develop Issuing and selling stocks to investors Selling assets Equity Raise capital Unit 17: Fundings Using retained earning or mobilizing venture funds (huy động vốn mạo hiểm) Borrowings from creditors (banks and other financial institutions, etc) Debt financing Issuing bonds or debentures (trái khoán – long term and fixed rate) In prosperous times, the owner’s have a claim on all the net profit of the company Owner's capital Is the most exposed form of capital since a return is received only after all calls on a company’s profits have been satisfied Long-term opportunity of raising captital & the compay’s shares will have high liquidity Stock exchange At least 25% of the equity must be in public hands, thereby reducing the original owner's control Form of equity (ưu - nhược) Raise money from outside investors without losing much control of the company Unlisted market securities Capital financing is limited Venture capital company does not usually interfere in the running of the company Venture Capital However, the provider usually demands a much faster and higher rate of return than an owner would expect from his/ her capital In times of prosperity, high gearing =>much better return Long-term loan In harder times, the owner’s earnings will drop dramatically as interest payment soaks up most of the company’s profit Bui Thi Quynh Anh - CQ56/21.09 Unit 18: Working capital Definition Inventories/liquid resources Tasks needed by a company to carry out trading/production Improve receivable process Manage debtors Classifications Make informed decisions Permanent determine correct amount of working capital spent determine quantities of inventories Inventories Keep the business flow through the year over-stringent-cost => disruption => just-intime philosophy is needed Temporary determine adequate cash available for Cash day-to-day debt, any contigencies attract customers, keep good relation with suppliers, minimize cash outlay Deals with any fluctuations during the year take account of seasonal Negotiate the generous credit terms with suppliers Minimum credit to customers applications Debtor Bui Thi Quynh Anh - CQ56/21.09 Unit 19: marketing Place distribution channel, transport, inventory size, so on, Price the basic list price, discount, credit term, so on All activities a company conducts Marketing in order to acquire and retain customers or clients Set of different substances together in marketing Definitions Marketing mix Marketing mix Promotion Products advertising, sales promotion, personal selling, so on quality, features, size, brand name, so on Bui Thi Quynh Anh - CQ56/21.09 Mistakes too cost oriented Defintions not revised often enough to capitalize on market changes Price Setting prices The amount of money given in exchange for something Determining a figure at which goods or services are exchanged in the market set independently of the rest of the marketing mix rather intrinsic element of the market positioning strategy is not varied enough for different product items and market segments Unit 20: Setting prices only element in the marketing mix that produces revenue, the only part that represents cost Set price Some industries Pricing dep is established assist other dep remains one of the most important elements determining company share and profitability Operated as the primary determinant of buyer choice Roles of prices Large com - divisional & product-line manager Small com - top management Setting prices Bui Thi Quynh Anh - CQ56/21.09 The process of recording, classifying, and summarizing Accounting economic events in a logical manner Definitions Accounting information how we measure and communicate economic events Prepares asset, liability, and capital account entries by compiling and analyzing account information Tasks Documents financial transactions by entering account information Recommends financial actions by analyzing accounting options refers to information Unit 21: Accounting Definitions describing an economic entity's financial resources, obligations, and activities Financial accounting assist investors and creditors in deciding where to place their scarce investment resources Purposes developing and interpreting accounting information intended specifically Definitions Types of accounting Management accounting to assist management in running the business used to set the company's overall goals, Purposes evaluate the performance of departments and individuals the subsector of accounting Definitions Tax accounting that deals with the preparations of tax returns and tax payments Adjust and recorgnize accounting information to comply with income tax reporting requirements Purposes Used to make tax returns and tax planning Bui Thi Quynh Anh - CQ56/21.09 Definitions financial records which show financial activities and position of a company allocating financial resources Used for business decisions by Unit 22: Financial statements Functions developing new products and expanding operations Used for determining income tax liabilities Company’s financial situation on a particular date Balance sheet It lists the company assets, liabilities, and shareholder's funds Statements Income statement Cash flow statement gives figures for sales, costs, and profits the flow of Cash in and out of business between balance sheet dates Bui Thi Quynh Anh - CQ56/21.09 Definition the selection, evaluation, and interpretation of financial data, along with other pertinent information, to assist in investment and financial decision making Internally Functions Extarnally evaluate issues such as employee performance, the efficiency of operations, and credit policies evaluate potential investments and the creditworthiness of borrowers, among other things Annual reports including the income statement, the balance sheet, the cash flow statement, and footnotes to these statements information can be found in the financial press and the electronic media daily Market data market data of listed securities and stock price indices Source Data (4) Economic data Unit 25: Financial analysis such as GDP and CPI that help explain the company’s present condition Economic events New product development, company regulation, acquiring another company, extraordinary losses measure of a company’s ability Coverage ratio to meet particular obligations measure of the net benefit Return ratio relative to the resources expended Construction and general characteristics measure of the gross benefit Turnover ratio relative to the resources expended a component of an item to the item Component percentage a company’s ability to Liquidity ratio Classification meet its short-term, immediate obligations provides information Profitability ratio on the amount of income from each dollar or sales on a company’s ability to an activity ratio manage its resources efficiently Operating performance and financial condition the degree of a company’s fixed financing obligations a financial leverage ratio and its ability to satisfy these financing obligations the company’s financial condition a shareholder ratio (tỷ lệ cổ đông) in terms of amounts per share of stock information on the profit a return on investment ratio relative to the assets employed to produce that profit Bui Thi Quynh Anh - CQ56/21.09 An accounting function that involves Definition the review and evaluation of financial records accounting function that involves Unit 26: Auditing Definition the review and evaluation of financial records and this is done by accountants of the company report to management on the current state of the company’s fiscal affairs, any deviations from the standard operating procedures Internal audit Advantage make suggestions to management improvements in the standard operating procedures seek to ensure that the company's various departments follow the policies and procedures established by management Tasks of internal audit Disadvantage If a report is unfavorable, management will receive the false impression that things are running smoothly Solution ensure that reports are received at all levels with an objective attitude Bui Thi Quynh Anh - CQ56/21.09 certain countries can produce some goods more efficiently than their country Why develop Exporting receive money, increase production, expand their market, etc Importing wider choice of goods and services at lower prices Benefits Provide marketing information: Establish trade missions Exports Subsidize exports Provide tax benefits or incentives Control Specific: A certain amount of tax for each unit of the product Imports Impose taxes and quotas Ad valorem: Based on the value of the product Unit 27: International business Protect domestic industry selling on a foreign market Dumping at a price below the cost of production amount of money that goes in and out of a country Balance of payment Definition Specific tariff Ad valorem Trade deficit Trade surplus certain amount of tax for each unit of the product based on the value of the product the value of goods that a country imports is more than the value of goods it exports, or the size of this difference the value of goods that a country exports is more than the value of goods it imports, or the size of this difference Climate Natural resources Geographical location Factors contribute Working population Technological development Economic administration Mechanism & policies Effective production of certain goods: Low costs, high productivity, high output, good quality Bui Thi Quynh Anh - CQ56/21.09 Unit 29: Trade barriers Trade barriers Hoặc: Government policy that restricts international trade Defintions Free trade To protect domestic employment To protect relatively young domestic industries Any of a number of restrictions placed by government on trade between nations the theoretical removal of all trade barriers Functions To protect firms and industries that produce output vital to the security and defense of the nation Tariffs Quotas common trade barriers Subsidies Embargoes simply taxes placed (levied) on imports simply a quantity restriction placed on a good, service and activity are grants paid by a government to an enterprise to benefit the public or to keep prices low prohibit the import and export of anything with another country Bui Thi Quynh Anh - CQ56/21.09 includes tangible goods the merchandise trade balance that can be loaded on a ship and plane includes a country’s exports and imports of services, Measure of trade the current account in addition to its visible trade the capital account measures payments and transfer of funds not only payments abroad the balance of payments Unit 30: Trade surplus and trade deficit but also the goods, services, and all transfers of funds that cross international borders has to look abroad for loans and investments How are trade deficits balance How are trade surplus balance or be forced to dip into its reserves to pay for its exercise imports use extra money to invest abroad or put it in its reserves  ... analyzing account information Tasks Documents financial transactions by entering account information Recommends financial actions by analyzing accounting options refers to information Unit 21 : Accounting... allocating financial resources Used for business decisions by Unit 22 : Financial statements Functions developing new products and expanding operations Used for determining income tax liabilities... international borders has to look abroad for loans and investments How are trade deficits balance How are trade surplus balance or be forced to dip into its reserves to pay for its exercise imports use extra