课后翻译-财务管理专业英语-刘媛媛-1、2、3、5、6

Topic 1

If you want to establish a leather shoes company, you should make the following four fundamental finance problems clear first.

Firstly, what is the goal of the company?

Secondly, what's the long-term investment strategy?

Thirdly, how to raise funds for investment?

Fourthly, how much is the short-term cash flow required for the operation of the company?

Topic 2

The USA IBM company began to downfall from prosperity in around 1984, it's annual profit declined from $6.6 billion to $4.97 billion in 1992. One of the main reason for the downfall is the disable supervision of board of directors. Generally, the supervision of the board is a main counterweight of the company’s internal governance structure: the board has the right to recall the chairman and plays an important role on operating decisions making. However, three quarters of it's original members are just for decoration though they are prominent because they care little about the operation of the company, therefore the board reduce to formalism.

Topic 3

Apple of Sodom. Parmalat is the biggest food enterprise in Italia and the fourth in Europe, and it has a 50% dairy product market share in Italy. But abruptly, someone found out that €4 billion circulating fund claimed by Parmalat did not exist, at the same time, €8 million shareholders' equity evaporated. The Parmalat scandal is the biggest bankruptcy case in European history losing approximate 1.5% of Italy's GNP, the proportion is bigger than the loss of both Enron and WorldCom of American GNP.

Topic 5

Revelation of Buffett's successful

pursuit of time value of investment compounding

After forty years, Warren Buffett changes a shake and crumble textile enterprises into a investment company with seventy holding companies while the total assets amounted to $165 billion and makes himself the second rich person in the world. Different from traditional millionaire who become rich by inheritance or production，Buffett has never participate in the actual production or sales，investment for profit is the main business of his company. Buffett regard compound interest as the maximum investment income. Here’s an example, in 1989，Buffett thought Coca-Cola stock price was undervalued, he invested a quarter of Berkshire’s capital into Coca-Cola stock and keep in hold till now which rise from $1 billion to $8 billion.

Topic 6

If you are an excellent manager with a bright future, now a famous and successful listed company wants to hire you as their chief executive officer，offers you high salary and a quite amount of company stock option. As a rational person，you will accept it without hesitation. But, what if it is about to close down? If you fail to rescue the company, your company stock option become worthless, and worse, your reputation in the manager market will be destroyed. Will you accept it as before? Maybe you won’t, why?