UNIT 2

A. 1.

ADVANTADGE
Bank Is most probable to a get
bigger amount of money
Friend or colleague Is easier and more flexible
Loan shark Is quicker, you can use it
when you have pressure
Member of familiy More flexibility
Pawnbroker It will lend the money
quickly
Credit-card company Buy now, pay later
DISADVANTADGE
You have to meet several
requirements
It could damage
relationships
High interest rates under
illegal condiitons
It could damage
relationships
It would cost higher
interest rates
You have to meet several
requirements

B. 1. A bank when you need a big amount of money

2. a friend when you need cash (liquidity)
3. a loan shark when you have no more options
4. a member of your family when is low amount of money
5. a pawnbroker when you need to get money really fast
6. a credit-card company when you know you will be able to pay
C. 1. I think it refers that when you’re rich or you have money you received special treatments. I
agree, it’s obvious that in our society money is important and very helpful at the moment you
need something, and with it is easier to achieve goals.

2. It refers to not waste all your efforts in one thing, is like an advice to spread the risk. I agree, is
never good to focus in just one thing.

3. Refers to risk in order to gain something. I agree, if you want to accomplish a goal you need to
be willing to sacrifice something.

4. not spending money on something that is not worth it. I agree if you already have lost money on
that and it didn´t work is better to quit.

5. Because usually when you borrow money to a friend this never came back, so is easy to fight for
money, I agree since this could be true but not always.

6. if we don’t owe money to anyone, we are safe and secure. That’s true is better to have no
debts.

7. The person who provides the money for something has the right to determine how it's spent. I
agree, you can do with your money whatever you want, is your responsibility and that so with
others.

8. Refers to accept a situation or offer because there’s no more options. Sometimes life is hard so
we have to accept what we have but that doesn’t mean you cannot work hard to get what you
really want.
A. 1. Cashflow 2. Asset. 3. Interest. 4. Bankruptcy 5. Administration 6. Equity 7. Principal 8.
Mortgage 9. Instalment 10. Venture

B. 1. Black 2. Grant 3. Debtor 4. Dividend 5. Liabilities 6. Return 7. Liquidation 8. Collateral

C. 1. Depends on the purpose of use of the machine or vehicle, but generally leasing gives
you the opportunity of pay lower amounts of money monthly.
2. I think it should be stimulated because a lot of people need of these but is important to
create a culture of responsibility with this type of loans because not everyone know how
to manage it.
3. Yes, in order to maintain the flow of its growth, the company could go into debt when it
exceeds with the loans and borrowing money, this is a risk because rapid growth, often
comes to a rapid end.
4. No, it’s better trying to recover while you still stand up, because start over again is
expensive and hard.
5. No, because eventually your suppliers wouldn’t want to work with you.
6. Is important to raise finance, because that’s the point of business, to make profits, but is
also important to maintain a balance, because it doesn’t matter how much money you
earn if you also have the double of debts.
A. In order to raise finance and get capital for a business you can use your savings or lend
money, also get loans for banks, trying to catch investors, or business angels that helps
you not just economically, but also with contacts or knowledge a way to get them is using
crowdfunding platforms. Another typical way is getting money from banks, or attached to
government programs that helps startups of certain industries.
B. Business Angels: Is a person that supports a startup or company with money, knowledge
or contacts, whit the object of obtain a shareholding.
Bank Finance: when a bank makes loans to companies or individuals that want to build a
startup.
Equity Finance: is a method of raising fresh capital by selling shares of the company to
public, institutional investors, or financial institutions.
Debt Fundraising: Loan or debt-based fundraising is the easiest of the three varieties to
understand in basics: you borrow money now and pay it back later, with an established
rate of interest. Fundraising is the activity of raising finance through the issuing of shares
or from debt.
Venture Capital Funds: Venture capital funds are pooled mutual funds that manage the
money of investors seeking private equity stakes in startups and small and medium-sized
companies with strong growth potential. These investments are generally characterized as
very high risk / high return opportunities.

C.
  Sanchita Saha spent a lot of time pitching to hundreds of potential investors, she
looked into 'angel" networking clubs to find wealthy entrepreneurs interested in
investing in her early-stage ventures.
 This is what “angels” do but mostly she found out they will provide few helps for
high cost.
 She went into a four-day programme that helped ambitious entrepreneurs hone
their pitching techniques.
 When she finally found her investors, the next step was reunited all of them and
create a syndicate, which was very stressful. She says that A lot of this process is
about networking and find someone who can really help and listen to you.
 The access to finance for any enterprise still really hard.
 Some people say that bank finance is easier now, but others say that’s not true,
and also is very expensive due to high interest rates.
 Fundraising and equity finance it hasn’t been quite explored yet, is hard due it
takes a lot of time.
D. 1. they were charging high costs just to submit a business plan.
2. she could pitch to many more 'angels'. She also hedged her bets by securing a place on
a four-day programme to help ambitious entrepreneurs and she the European Border
Investment Programme, which was running its own event where she found their last
investors.
3. Through the g2i programme that helps ambitious entrepreneurs improve their pitching
techniques.
4. A couple of Finnish investors and five wealthy individuals at LBA.
5. Even though now is easier to lend from banks is also very expensive, since some
companies had seen the cost of their existing finance increase by up to 5% points above
the bank base rate.
6. Fundraising is taking longer and is slower and that’s why it hasn’t been really explored
yet.
7. Raising equity finance through venture capital funds is possible, but it is taking about
twice as long as before the recession struck.

E. 1.To go the distance

2.To get a lucky break
3.Hedged her bets
4.Keeping your ears to the ground
F. 1. Go the distance. 2. Lucky break. 3. Hedge your bets. 4. Keep your ears to the ground
G. 1. I would ask her why to invest in his business, I would like her to explain me why her
company will be profitable and her added value compared to others. Also, I’d ask which
are her ideas and future projects regarding to that business, and of course what I would
win.
2. I think I would use some savings, put some resources by myself, and then get the other
part of capital from investors, I could try crowdsourcing, my other options would be a
venture capital or programs from state.

A. 1. Looked into 2. Access to 3. Investing in 4. Turned down 5. Settled on 6. Pitch to