THE GOALS OF FINANCIAL MANAGEMENT

1.All businesses aim to maximize their profits, minimize their expenses and maximize their market share. Here is a look at each of these goals.
Maximizing Profits A company's most important goal is to make money and keep it. Profit-margin ratios are one way to measure how much money a company squeezes from its total revenue or total sales.There are three key profit-margin ratios: gross profit margin, operating profit margin and net profit margin.

2. Gross Profit Margin.The gross profit margin tells us the profit a company makes on its cost of sales or cost of goods sold. In other words, it indicates how efficiently management uses labor and supplies in the production process (Gross Profit Margin = Sales – Cost of Goods Sold).
    3. Operating Profit Margin. By comparing earnings before interest and taxes (EBIT) to sales, operating profit margins show how successful a company's management has been at generating income from the operation of the business (Operating Profit Margin = EBIT/ Sales).

 4. Net Profit Margin. Net profit margins are those generated from all phases of a business, including taxes. In other words, this ratio compares net income with sales. It comes as close as possible to summing up in a single figure how effectively managers run the business (Net Profit Margins = Net Profits after Taxes/ Sales.Often referred to simply as a company's profit margin, the so-called bottom line is the most often mentioned when discussing a company's profitability.
    5. Minimizing Costs.Companies use cost controls to manage and/or reduce their business expenses. By identifying and evaluating all of the business's expenses, management can determine whether those costs are reasonable and affordable. Then, if necessary, they can look for ways to reduce costs through methods such as cutting back, moving to a less expensive plan or changing service providers.

6. Maximizing Market Share.Market share is calculated by taking a company's sales over a given period and dividing it by the total sales of its industry over the same period. This metric provides a general idea of a company's size relative to its market and its competitors.

Вправа № 7

Дайте відповідь на запитання до тексту:

1. What are the goals of any business?

2. How can the notions of Gross Profit Margin, Operating Profit Margin and Net Profit Margin be described?

3. What is understood by such a goal of financial management as minimizing costs?

4. How can the market share of a company be calculated?

Варіант 3

Вправа №1

     Вставте артиклі a, an, або the, де необхідно. Перекладіть речення.

1. The ambulance took the injured people to … hospital.

2. Do you buy a newspaper every day? – Yes. I usually buy … Independent and my wife reads … Times.

3. Сan you tell me the way to … nearest post office, please?

4. It’s your birthday soon. What would you like as … gift?

5. They put … advertisement in ‘The Morning News’, offering a high salary for the right person.

Вправа №2

Виберіть правильну форму присвійного відмінка іменника.                             Перекладіть речення.

1. I received the letter in yesterday’s/yesterday post.

2. This month’s/months’ target is two million sales.

3. Britain’s /Britains’ exports to the United States have fallen recently.

4. The new headmaster in/of the school is brilliant.

5. Who is the husband with/of the woman talking to Ann?

Вправа № 3

Вставте необхідне модальне дієслово. Речення перекладіть.

1. I … pay utility bills immediately. The authorities insist on it.

          A have to B must C would

2. The businessman … use the money which his friends offer to him.

          A should B aren’t allowed C have to

3. My business went bankrupt, so I … sell my home to pay debts.

          A can B must C could

4. … I obtain a loan from your venture capital firm?

          A can B ought to C shouldn’t   

5. You … come and visit us when you are next in London.

       A ought to B had to C must

Вправа № 4.

Розкрийте дужки , вживаючи необхідну форму дієслова в пасивному стані. Речення перекладіть.

1. A new school (build) by the local council just now. 

2. They (lend) enough money by the bank. 

3. The TV set (mend) already by them. 

4. your motorbike (repair) yet?

5. Capital is an amount of money that (invest) in or (use) to start a business.

Вправа № 5

Розкрийте дужки і поставте дієслово в дужках у потрібному часі групи Perfect. Перекладіть речення.

1. How long you (to know) him?

2. Simon was confused. He (to try) to win the game four times.

3. Max hopes he (to travel) all over the world by the time he’s forty.

4. ‘The restaurant was packed last night.’ ‘Yes. Luckily, I (to book) a table in advance.

5. Have you heard the news? They (to elect) a new club chairman.

Вправа № 6

Перепишіть та перекладіть письмово 1-3 абзаци тексту.

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