Business English Ενότητα # 9: Financial Planning Ευαγγελία Κουτσογιάννη Τμήμα Διοίκησης Επιχειρήσεων ΕΛΛΗΝΙΚΗ ΔΗΜΟΚΡΑΤΙΑ Ανώτατο Εκπαιδευτικό Ίδρυμα Πειραιά Τεχνολογικού Τομέα

Άδειες Χρήσης Το παρόν εκπαιδευτικό υλικό υπόκειται σε άδειες χρήσης Creative Commons. Για εκπαιδευτικό υλικό, όπως εικόνες, που υπόκειται σε άλλου τύπου άδειας χρήσης, η άδεια χρήσης αναφέρεται ρητώς. 2

Χρηματοδότηση Το παρόν εκπαιδευτικό υλικό έχει αναπτυχθεί στα πλαίσια του εκπαιδευτικού έργου του διδάσκοντα. Το έργο «Ανοικτά Ακαδημαϊκά Μαθήματα στο Ανώτατο Εκπαιδευτικό Ίδρυμα Πειραιά Τεχνολογικού Τομέα» έχει χρηματοδοτήσει μόνο την αναδιαμόρφωση του εκπαιδευτικού υλικού. Το έργο υλοποιείται στο πλαίσιο του Επιχειρησιακού Προγράμματος «Εκπαίδευση και Δια Βίου Μάθηση» και συγχρηματοδοτείται από την Ευρωπαϊκή Ένωση (Ευρωπαϊκό Κοινωνικό Ταμείο) και από εθνικούς πόρους. 3

In this section you will learn vocabulary related to financial issues and the different approaches to budgeting the language function to express obligation 4

5 Financial Planning

The Financial Plan A financial plan is a plan for obtaining and using the money needed to implement an organization’s goals. Financial planning, like all planning, begins with the establishment of goals and objectives. Next, planners must assign costs to these goals and objectives. That is, they must determine how much money is needed to accomplish each one. Finally, they must evaluate the available sources of financing and decide which to use. 6

The Financial Plan Glossary establish goals and objectives: the process of setting what an organization is expected to achieve over a certain period of time/ καθιερώνω στόχους και αντικειμενικούς σκοπούς evaluate: judge or determine the significance, worth, or quality of; assess/αξιολογώ assign costs: consider, specify expenses/ προσδιορίζω το κόστος sources of financing: the point or place from which money originates/ πηγές χρηματοδότησης 7

What is a Budget? A budget is a financial statement that projects income and expenditures over a specified period of time. Most companies construct their master budget once a year. It is based on a series of mini-budgets, one for each department; these are called budget centers. Although a budget is based on forecasts, guesses and assumptions, it is a commitment the department managers must stick to. Otherwise the business could go bust. To avoid this, managers check for variances from time to time. 8

What is a Budget? Glossary A budget is a financial statement that projects income and expenditures over a specified period of time. Most companies construct their master budget once a year. It is based on a series of mini-budgets, one for each department; these are called budget centers. Although a budget is based on forecasts, guesses and assumptions, it is a commitment the department managers must stick to. Otherwise the business could go bust. To avoid this, managers check for variances from time to time. 9

Approaches to Budgeting Most firms use the following approaches to budgeting: The traditional or incremental budget has two characteristics. First, funds are allocated to the departments and the managers allocate funds to the activities as they see it. Second, an incremented budget develops out of the previous budget. Each period’s budget begins by using the last period as a reference point, to which managers add a percentage for inflation and requests for new activities. Zero-base budgeting requires managers justify their budget requests in detail from scratch, regardless of previous appropriations. This process reevaluates all organizational activities to see which should be eliminated, funded at a reduced level, or increased. 10

Approaches to Budgeting Glossary incremental budget: adding on a previous budget/ προσαυξημένος προυπολογισμός allocate funds : assign funds, set them apart for a particular purpose / επιμερίζω, κατανέμω χρήματα reference point :a fact forming the basis of an evaluation or assessment/σημείο αναφοράς zero-base budgeting: prepare budgets which every year start without having a starting point as a basis/ προυπολογισμός μηδενικής βάσης from scratch: from the very beginning /απο μηδενική βάση appropriation: sum of money set apart for a specific purpose/ κονδύλιο (προυπολογισμού) 11

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