Answer Key
Finance – Comprehension Check
- Which of the options best completes this sentence? “They are then joined by..” [another creditor]
They are then joined by another creditor. - “All staff are dismissed apart from 6 SKELETON staff.” Who stayed in the company? [only the essential staff]
skeleton – something reduced to its essential parts - There is a grammar mistake in this sentence: “He always has assumed that the bank's debenture over book debts will cover the facilities.” Which of the options has the mistake? [He always has assumed]
He has always assumed that the bank's debenture over book debts will cover the facilities. - The company started to have cash flow shortage, so the bank decided to [lower the overdraft limit]
The bank - which only last year confirmed that it wanted to lend more money to the company - has gone completely in the other direction and is now talking of lowering the overdraft limit and requiring more security. - Which of the options best completes this sentence? “Firstly, a large contract the company had...” [been working on went horribly wrong.]
Firstly, a large contract the company had been working on went horribly wrong. - “His financial future is totally BLEAK” means [there's basically no future]
bleak – without hope or encouragement; depressing - Which of the options best completes this sentence? “A Company Director in his 50th year had built a company from scratch to...” [an annual turnover of £5-6M.]
A Company Director in his 50th year had built a company from scratch to an annual turnover of £5-6M. - Which of the options best completes this sentence? “In six months the company has gone from trading comfortably and well...” [to having a real cash flow shortage of £200,000-£500,000.]
In six months the company has gone from trading comfortably and well to having a real cash flow shortage of £200,000-£500,000. - The company was built FROM SCRATCH. What does it mean? [with no financial resources]
from scratch – from nothing; without resources - “Right out of the blue, another large client is disputing his bill.” What does OUT OF THE BLUE mean? [suddenly]
out of the blue – suddenly and unexpectedly