22. Corporate finance

22. Corporate finance

A. Money TV was a financial news Cable TV station.

1. Three companies, Tennant Entertainment, Planet Media and K9 Communication formed a consortium.

2. They raised some capital from a merchant bank.

3. They bought equipment, rented premise, hired staff and set up Money TV.

4. After a shaky start, Money TV went into profit after three years.

5. A new station, The Money Channel was launched by Wolf Media Group, the US media empire.

6. Viewing figures dropped sharply because of competition from the Money Channel.

7. As a result, Money TV’s advertising revenue fell dramatically.

8. Money TV started to make heavy losses.

9. Money TV went into liquidation.

 

1.      Before deciding to invest in a new computer system, we need to do a cost-benefit analysis to see if it is going to be worth it.

2.      The new machinery cost a lot, but we will recoup the money in just a few months.

3.      You can read about the company’s finances, performance and plans for the future in its annual report.

4.      We do not actually own our delivery lorries. We lease them.

5.      We would like to launch a new airline, but the start-up costs are very high.

6.      Airlines are a very capital intensive form of business, as airplanes are extremely expensive.

7.      Jewellery retailers need a lot of working capital, as the cost of their stock is high.

8.      Petrol filling stations operate on a very narrow profit margin. They only make about 1p a litre.

9.      All businesses are subject to the laws of supply and demand.

10.  The new mobile phone banking service is a joint venture between Uberbank and Telkom.

11.  UberBank and Telkom have gone into partnership with each other.

12.  In Italy, Telecom Italia used to have a monopoly on telecommunications.

 

1.      I sold my furniture shop as ___________.

a. an operating company  b. a going concern    c. an active business

2.      We can get a government ___________ to help build a new factory in an area with high unemployment.

a. grant              b. money                c. payment

3.      Before building the new factory, we will have to do an environmental ___________.

a. check              b. survey                c. audit

4.      We do not employ our own cleaning staff. We have ___________ the cleaning to an outside firm.

a. contracted out      b. contracted             c. contracted over

5.      We need a building firm to build a new warehouse. We are going to put the contract___________.

a. tendered           b. under offer             c. out to tender

6.      Three firms have ___________ for the contract.

a. tendered           b. offered                 c. given prices

7.      Due to several years of falling sales, we are going to ___________ the company.

a. stop               b. finish                   c. wind up

8.      The company ___________ trading in 2006.

a. gave up            b. finished                 c. ceased

9.      Money invested in helping other people start new business is called.

a. venture capital      b. adventure capital        c. start capital

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