Name : Ayu Warda Ningsih

NPM : 217450006
Subject : Eng.for Economic Communication

Exercises :
1. Why does a corporation need capital?
2. What are the two basic types of financing used by a corporation?
3. From whom are funds acquired for each type financing?
4. What does one share of stock entitle the purchaser to?
5. Why do the initial sales of stock involve some risk?
6. How might a stockholder benefit from his stock?
7. If the corporation is not successful, how might the stockholder be affected?
8. How does the corporation benefit from purchasing selling bonds? How does the bondholder
benefit from purchasing bonds?
9. Have you or someone you know ever purchased bonds? Describe the experiences?
10. In your present financial situation, would the purchase of stock or bonds be a wise
investment?
Why or why not?
Find pairs of words which have opposite meanings
1. Borrow 6. Give 11. Loss 16. Receive
2. End 7. Initial 12. Meet 17. Seller
3. Enough 8. Inside 13. Outside 18. Separate
4. Failure 9. Insufficient 14. Profit 19. Start
5. Final 10. Lend 15. Purchaser 20. Success

Answer :
1. A corporation need capital because to start up, operate, and expand its business.
 2. There are two types of financing used by a corporation namely equity financing and debt
financing.
3. Equity financing refers to funds that are invested by owners of the corporation and debt
financing on the other hand refers to funds that are borrowed from sources outside the
corporation.
4. Each share entitles the purchaser to a certain amount of ownership
5. The initial sales involve some risk on the part of the buyers because the corporation has n
o record of performance
6. If the corporation is successful, the stockholder may profit through increased valuation of
the shares of stock, as well as by receiving dividends. Dividends are proportional amount
s of profit usually paid quarterly to stockholders.
7. If the corporation is not successful, the stockholder may take a severe loss on the initial
stock investment
8. I think to increase a corporation investment
9. Yes, I have, like a mlm. But I think isn’t a investment, just commercial business.
10. I like to invest my money in the bank, like insurance and saving my money to the future.

Find pairs of words which have opposite meanings.

Answer :
1. Borrow
Answer: Lend
2. End
Answer: Start
3. Enough
Answer: Insufficient
4. Failure
Answer: Success
5. Final
Answer: Initial
6. Give
Answer: Receive
7. Inside
Answer: Outside
8. Loss
Answer: Profit
9. Meet
Answer: Separate
10. Purchaser
Answer: Seller