TEST 1- Unit 16- Corporate Finance |2022

ESP 2- Unit 16- Corporate Finance

Test Review
I. FILL IN THE GAPS IN THE FOLLOWING SENTENCES WITH SUITABLE WORDS O
PHRASES FROM THE BOX:
Risks ensure sources with dilution
promotional resouces
Of fixed liquid standard continuous
bond
Suffered to avoid requests equily
Investment working capital

1. Trading profits can be substantial if the investor knows what she is doing, but
there is a good deal of(1) ………… involved
2. A new study questions the value of an initiative to(2) ……. fair working
conditions for poor farm workers.
3. You want to have a CFO who is in charge (3) …..making most of your decision
4. Today, a company cannot survive without (4)………. research and developmen
The company has to go on making changes in its old products
5. (5)……. assests are noncurrent assets meaning the assets have a uselife life
more than one year. They include property, plant and equipment (PP&E) and a
recorded on the balance sheet.
6. Venture capitalists require such a high (6)……. and have a rigorous process
because there are millions of dollars at stake and the failure rate for startups is
incredibly high.
7. Sally bought a government (7)…. for her children when they were young so tha
they could cash them out when they were headed to college.
8. The assets of BDM company(8) …….. last quarter when one of their main loca
distributors went out of business.
9. The business weekly magazine suggested that(9) …….. shipping problems in th
upcoming holiday season, business should encourage customers to shop early.
10. The customer service department is responsible for fulfilling (10)………….. fro
the public and has to forward them to the chief financial officer.
11. When that new mortgage was registered , there was clearly (11)……. in the
property
12. Other companies control(12)……… by repurchasing shares when employees
exercise options.
 TEST 1- Unit 16- Corporate Finance |2022

1. Growing businesses require cash, and being able to free up cash by shortening the (14)…………
cycle is the most inexpensive way to grow.

II. READ THE FOLLOWING TEXT TO ANSWER THE QUESTIONS:

Manufacturers Hanover Corporation, former American multibank holding company whose principal
subsidiary was Manufacturers Hanover Trust Company. Headquarters for both were in New York City.
The Manufacturers Hanover Trust Company bank had its origins in various banks that arose in New
York City in the 19th century. Chief among these were the Chatham Bank and the Phenix Bank, which
merged in 1911, and the Manufacturers Trust Company, which merged with Chatham and Phenix in
1931. The bank’s final name was adopted in 1961 after Manufacturers Trust merged with the Hanover
Bank (founded 1851). Manufacturers Hanover Corporation was formed in 1969 to be a holding
company for the merged banks. The corporation added First Pennsylvania Corporation in 1980. In 1991
Manufacturers Hanover Corporation merged with Chemical Banking Corporation and assumed the
latter’s name.
The Manufacturers Trust Hanover Company, through its subsidiaries, had a network of American
offices and foreign representative offices, subsidiary banks, affiliated financial institutions, and
correspondent banks throughout the world. It was one of the largest money centres in the United States
1. When was manufacturers Hanover corporation established?
A. 1911 C .1851
B. 1931 D. 1991
2. When was the origin of the company begin?
A. It was orgins in specific banks in the 19thcentury
B. Its orgins in various bank that arose in New York city in the 19thcentury
C. It orgins in various banks that arose in New York city in the 18th century
D. It’s orgins in special banks that arose in London in the 19th century
3. What were the two banks merged in 1961?
A. The Chatham Bank and the Phenix Bank
B. The Manufacturers Trust company, the Chatham Bank and the Phenix Bank
C. The Hanover Bank and Manufacturers Trust
D. The hanover Bank and the Chatham and the Phenix bank, the Manufactures Trust company
4. When was the Hanover bank founded?
A. 1961 C. 1891
B. 1991 D. 1851
5. When was first Pennsylvania corporation merged in Hanorer coporation?
A. 1980 C. 1978
B. 1991 D. 19th century
6. Which statement is TRUE?
A. The Manufacturers Trust Hanover Company had a network of representative offices in
American only
B. The Manufacturers Trust Hanover Company was the largest money centres in the United States
C. Manufacturers Hanover Corporation ‘s main offices were all in American.
D. The bank’s final name was set after the merger in 1951
 TEST 1- Unit 16- Corporate Finance |2022

III. MAKE SENTENCES BASED ON THE GIVEN WORDS:

1. Ideally/corporate finance / division / company / mostly /concerned / the financial operations of
the company.
……………………………………………………………………………………………………………
2. The terms “corporate finance” / associate/transactions / capital /in order to create, develop/
acquire businesses.
……………………………………………………………………………………………………………

3. Finance manager/minimize/cost of finance /wastage/misuse of finance/risk/investment /

finance/maximum /return/finance.
……………………………………………………………………………………………………………
4. Financial managers / be/ responsible/budget/project/cash flows/
determine/how/invest/and/finance/projects.
……………………………………………………………………………………………………………
5. General/ goal/ corporate finance/
be/ensure/corporation/achieve/maximum/benefit/available/financial resources.
……………………………………………………………………………………………………………
6. All/ businesses/ need/ maintain/ financial records/ order/find/if/they/make/profits.
……………………………………………………………………………………………………………
7. Corporate finance/tend/be/associated/ transactions in which capital/be/ raise/order/ create/
develop or acquire businesses.
……………………………………………………………………………………………………………
8. The ultimate purpose of corporate finance/be/to/maximize/the value of a business through/plan/
and /implement/ management resources while/balance/ risk and profitability.
……………………………………………………………………………………………………………
9. Corporate finance/be/primarily/concern/maximize/shareholder value/ through long-term/short-
term/financial planning/the implementation of various strategies.
……………………………………………………………………………………………………
10. The finance manager/have/make/ decision/sources/the finance/efficient/use/available/financial
resources.
……………………………………………………………………………………………………………
IV. MATCH A WORD WITH THE SUITABLE MEANING:

1.Working capital A. to watch a situation carefully for a period of time in order to

discover something about it
B. . the process of providing companies with money to invest
2.Expenditure
C. to reduce something to the smallest possible level or amout
 TEST 1- Unit 16- Corporate Finance |2022

D. The percentage of total industry sales that a particular company

controls
3.Collectively
E. The profit or loss you have on your investments, including
income and change in value
4.Maximize
F. being the largest amount or number allowed or possible
G. the smallest amount or number allowed or possible
5. Corporate finance
H. the total amount of money that an organization or person
I. a situation when two or more companies, organizations,
6. Return department, etc. Join together
J. the official or formal order or way of doing
7. Debenture something,especially in business,law or politics
K. K. the money that a company needs to operate and produce its
goods or provide its services, for example to make payments to
8. Equity employees, suppliers, etc. Before it has been paid by customers
L. . In a way that is done or shared by all members of a group of
9. Procedure people,in a way that involves a whole group or society
M. a type of loan, offen used by companies to raise money, that is
paid back over a long period of time and at a fixed rate of
10. Maximum
interest.
N. to make something as big in amount, size, or importance as
possible
O. Funds contributed by stockholders through direct payment and
through retained earnings

V. ANSWER THE FOLLOWING QUESTIONS:

1. What are the functions of corporate finance?
……………………………………………………………………………………………………………
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2. What activities are included in managing corporate finance?
……………………………………………………………………………………………………………
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 TEST 1- Unit 16- Corporate Finance |2022

……………………………………………………………………………………………………………
VI. V.TRANSLATION:

1. The financial manager is the person who makes decisions on using the financial resources of the
business to achieve the goals of the company.
……………………………………………………………………………………………………………
……………………………………………………………………………………………………………
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2. Corporate financial management is the selection, decision making and implementation of
financial decisions to achieve the operational goals of the business
……………………………………………………………………………………………………………
……………………………………………………………………………………………………………
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3. Some main objectives of corporate finance are making wise use of financial resources,
developing an operating budget, tracking income.
……………………………………………………………………………………………………
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