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Assignment for Finance English 2
《财经英语2》作业
Unit (13-16)
The total marks for this assignment are 100 points. Time suggested for completing this assignment is 1 hour (60 minutes).
PLEASE WRITE ALL YOUR ANSWERS ON THE ANSWER SHEET.
Short-answer Questions [50 points]
1. What are the advantages and disadvantages of LLC?
2. What are the purposes of setting up a joint venture?
3. What are the factors to be considered to get a “risk score”?
4. How are opportunity cost and sunk cost related to our life?
5. What does break-even mean? Why is it important to understand break-even?
Writing [50 points]
The Vice President, Demos, to whom you submitted a report on the impact of the purchase of a machine would have on the income statement, is getting more interested in controlling costs while boosting sales and enlarging business investment. He has asked you to enlighten him on variable cost behavior.
Write a report to him, explaining variable cost behavior. Your report may cover the following points:
 Percentage of variable costs vary with change of sales volume
 The effect of deal discounts, freight costs, etc
 Reduction in variable cost is not linear with increase of volume
Your writing should be between 150-200 words.
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