- •Unit 1. What is economics?
- •Lead-in
- •Words with the stress on the first syllable:
- •Words with the stress on the second syllable:
- •Polysyllabic words with the main and secondary stress:
- •Text a: What is Economics? Active Vocabulary
- •Vocabulary focus
- •Language skills
- •Writing
- •Discussion points
- •Text b: what economics isn't
- •Text c: Micro, Macro and Fantasy Economics
- •Business communication
- •Introductions How to Say Hello
- •If you're determined not to be caught cardless again, here are some tips to help you remember:
- •Grammar present tenses
- •The present simple tense
- •Make up questions the interviewer may ask her. Here are some prompts to help you.
- •Now formulate questions Alice is likely to ask the interviewer.
- •The present continuous tense
- •The present simple versus the present continuous
- •Unit 2. Factors of production
- •Lead-in
- •Reading drills
- •Words with the stress on the first syllable:
- •Words with the stress on the second syllable:
- •Polysyllabic words with the main and secondary stress:
- •Word-formation
- •Text a: factors of production Active Vocabulary
- •Natural resources – land and mineral deposits
- •Human resources – labour
- •Information as a factor of production
- •Vocabulary focus
- •Language skills
- •Writing
- •Text b: entrepreneurship
- •Text c: Factors of Production for an Innovation Economy
- •Business communication
- •In the office
- •Grammar the present perfect tense
- •The present perfect continuous tense
- •The present continuous versus the present perfect continuous
- •The present perfect versus the present perfect contnuous
- •Present tenses review
- •Unit 3.Types of economic systems
- •Lead-in
- •Words with the stress on the first syllable:
- •Words with the stress on the second syllable:
- •Polysyllabic words with the main and secondary stress:
- •Text a: types of economic systems Active Vocabulary
- •Vocabulary focus
- •Language skills
- •Writing
- •Discussion points
- •Text b:command economy
- •T ext c: the good (and bad) model guide
- •Business communication
- •Grammar exercises past tenses
- •The past simple tense
- •The past continuous
- •The past simple versus the past continuous
- •The past simple versus the present perfect
- •Unit 4. Demand and supply
- •Lead-in
- •Text a: demand and supply
- •Vocabulary focus
- •Language skills
- •Writing
- •Discussion points
- •Text b. The role of prices
- •T ext c: two factors that affect labour supply and demand
- •Business communication making an appointment
- •Grammar past perfect
- •Past perfect continuous
- •Past Continuous or Past Perfect Continuous?
- •Past Simple, Past Perfect or Past Perfect Continuous?
- •Past tenses review
- •Unit 5. Free-enterprise system
- •Lead-in
- •Text a: what is free enterprise?
- •Vocabulary focus
- •Language skills
- •Writing
- •Discussion points
- •Text b: role of government in a free-enterprise economy
- •Text c: invisible hand
- •Business communication at the airport Look at the picture. What do you think the phrase Live out of a suitcase mean?
- •Going through Customs.
- •Do the drills.
- •2) Role-play the situations in the airport using the vocabulary of the lesson. Grammar future tenses
- •The future simple tense
- •The future simple versus the present simple
- •The future simple versus be going to
- •Be going to versus the present continuous
- •The future continuous tense
- •The future continuous versus the future simple
- •The future perfect versus the future perfect continuous
- •Future tenses review
- •The imperative mood
- •Unit 6. Forms of business organisation
- •Lead-in
- •Reading drills
- •Words with the stress on the first syllable:
- •Words with the stress on the second syllable:
- •Polysyllabic words with the main and secondary stress:
- •Word formation
- •Text a: forms of business organisation Active Vocabulary
- •Vocabulary focus
- •Language skills
- •Writing
- •Discussion points
- •Text b: nonprofit organisations
- •Text c: franchising
- •Business communication at the hotel
- •In pairs read the following situations.
- •2). Choose the correct options to the questions.
- •Grammar nouns
- •ArticleS
- •IntoEnglish.
- •Unit 7. Money
- •Lead-in
- •Text a: money and its role in the economy Active Vocabulary
- •Money is a medium of exchange
- •Money is a measure of value or a unit of account
- •Money is a store of value
- •Money is a means of liquidity
- •Vocabulary focus
- •Language skills
- •Discussion points
- •Text b: a glimpse of the american, british and euro
- •Text c: a barter way of doing business
- •Business communication On the phone
- •Inquiring about the telephone number
- •Useful Language Box
- •Grammar determiners
- •Numerals
- •Unit 8. Taxes
- •Lead-in
- •Reading drills
- •Text a: taxes Active Vocabulary
- •Vocabulary focus
- •Language skills
- •Writing
- •Discussion points
- •Text b: taxation in the uk
- •Text c: taxes are good
- •Business communication
- •In company
- •Grammar pronouns
- •Adjective and adverb
- •Very, too, far, much, a lot, rather, a bit, a little, any, by far, quite, nearly, almost
- •Test yourself Test 1
- •Test 11
- •Test 12
- •Test 13
- •Test 14
- •Test 15
- •Граматичний довідник дієслово the verb
- •Дієслова to be і to have.
- •Часи дієслова
- •Група теперішніх часів Утворення стверджувальних, заперечних та питальних форм
- •Правила написання дієслівних форм
- •Типи питальних речень
- •Загальна таблиця випадків використання
- •Не мають форми тривалого часу дієслова, що виражають
- •Інші дієслова, які не можуть виражати дію або стан як процес:
- •Група минулих часів Утворення стверджувальних, заперечних та питальних форм
- •Типи питальних речень
- •Випадки вживання минулих часів
- •Група майбутніх часів Утворення стверджувальних, заперечних та питальних форм
- •Типи питальних речень
- •Випадки вживання майбутніх часів
- •Інші способи вираження майбутнього часу
- •Наказовий спосіб
- •Іменник the noun
- •Число іменників
- •Деякі іменники мають особливі форми у множині:
- •Утворення множини іменників
- •Класифікація іменників за ознакою обчислювані/необчислювані
- •Випадки переходу необчислюваних іменників у обчислювані
- •Іменники, які узгоджуються із дієсловом в однині
- •Іменники, які узгоджуються із дієсловом у множині
- •Рід іменників
- •Рід іменників в англійській мові
- •Відмінки іменників
- •Відмінок іменника. Форми та особливості вживання присвійного відмінку
- •Форми присвійного відмінку
- •Особливості вживання присвійного відмінку
- •Вживання іменників - назв неістот у присвійному відмінку
- •Іменники у функції означення
- •Артикль
- •Вживання неозначеного артикля.
- •Вживання неозначеного артикля a/an (тільки із обчислюваними іменниками в однині)
- •A/anабо one
- •Артиклі з деякими необчислюваними іменниками
- •Вживання означеного артикля
- •Вживання означеного артикля the
- •Вживання нульового артикля (відсутність артикля)
- •Детермінанти
- •Присвійні прикметники і займенники
- •Присвійні прикметники
- •Присвійні займенники
- •Вказівні слова
- •Кількісні слова
- •Some/any/no
- •Many/much/a lot (lots) of/ (a) few/ (a) little
- •All (of)/most (of)
- •Every/each
- •Another/the other/other
- •Both, neither, either, none
- •Числівники
- •Займенник
- •Особові займенники
- •It або there?
- •Неозначено-особові займенники
- •Indefinite Personal Pronouns
- •Зворотні займенники
- •Прикметник
- •Прислівник
- •Ступені порівняння прикметників
- •Особливі випадки утворення ступенів порівняння прикметників і прислівників
- •Appendices
- •Словотворення Word formation
- •Enjoy your reading
- •I, Pencil My Family Tree as told to Leonard e. Read
- •Innumerable Antecedents
- •Money The History of Money
- •Extract 1
- •Extract 2
- •Extract 3
- •Success story
- •The Financier, by Theodore Dreiser Chapter III
- •The Iron Heel, by JackLondon Chapter 2 Challenges
- •Glossary
- •Internet Resources
- •Contents
Text a: forms of business organisation Active Vocabulary
Key terms: entrepreneur, asset(s), liability/liabilities, sole proprietorship, partnership, corporation, investment fund, corporate tax, income tax, bankruptcy, entity, shareholder, board of directors, stock, securities, charter, to incorporate, to place/impose/levy a tax, dividend. Other words and expressions: numerous, achievement, self-fulfilment, to suffer losses, to choose, choice, vision, vulnerability, a number (of), to dissolve, flexible, adaptable (to), to assume responsibility, debts, to raise capital, to share, to distinguish (between), to split up, to contribute (to), relatively, incentive, liable, senior, junior, similar (to), drawback, to affect smth/smb, adversely, separate, apart from, distinct, weighty, to transfer, to do with, subject (to), to disclose, permanent, to prevent (from). Linking words and phrases: in view of, first and foremost, besides, like/unlike, since (=because), at the same time, generally, obviously, to start with, it is a fact that..., in order to do smth. |
Entrepreneurship, as one of the factors of production, has its particular function. It brings together the other three – Land, Capital and Labour. When they are successful, entrepreneurs earn profit. When they are not successful, they suffer losses.
There are numerous reasons why people do business. Financial independence and security, profit potential, desire for achievement and self-fulfilment, the opportunity to work at something they really love are some of these reasons.
When organising a new business, one of the most important decisions to be made is choosing its structure. The choice will be based on the entrepreneur’s vision regarding the size and nature of the business, the level of control he or she wishes to have, expected profit of the business, the risks for the business’s assets from liabilities, the business's vulnerability to lawsuits and so on. In view of these requirements, different forms of business organisation – sole proprietorships, partnerships and corporations – have their advantages and disadvantages.
Sole Proprietorships
The vast majority of small businesses start out as sole proprietorships. Such a firm is owned by one person, usually an individual, who has day-to-day responsibility for running the business. A sole proprietor enjoys a number of advantages. First and foremost, it is the easiest and least expensive form of ownership to organize. Sole proprietors are in complete control, within the law, over all decisions. They receive all income generated by the business to keep or reinvest. The business is easy to dissolve, if desired. This form of business organisation is the most flexible and adaptable to changing times because of their ability to restructure themselves and react more quickly and successfully to changes than large corporations. Sole proprietorships do not have to pay special taxes placed on corporations. On the less bright side, however, is the fact that a sole proprietor has unlimited liability. He assumes "complete personal" responsibility for all of his business’s liabilities or debts because, in the eyes of the law, he and his business are one and the same. Besides, it is very difficult for a sole proprietor to raise investment funds and to attract high-calibre employees from among those who are motivated by the opportunity to own a part of the business.
Partnerships
In a partnership, two or more people share ownership of a single business. Like in proprietorships, the law does not distinguish between the business and its owners. The partners should have a legal agreement that sets forth how decisions will be made, profits will be shared, disputes will be resolved, how future partners will be admitted to the partnership, how partners can be bought out, or what steps will be taken to dissolve the partnership when needed. It is a fact that a lot of partnerships split up at crisis times, and unless there is a defined process, there will be even greater problems. They also must decide up front how much time and capital each will contribute, etc.
An important argument in favour of this type of business organisation is that partnerships are relatively easy to establish. Another advantage is that with more than one owner, the ability to raise funds may be increased. Unlike in sole proprietorship, prospective employees may be attracted to the business if given the incentive to become a partner. A partnership does not pay corporate tax like corporations but only ordinary income tax, since the co-owners can use the profits gained as their personal income.
At the same time, partners are jointly and individually liable for the actions of the other partners. In case of bankruptcy, the co-owners who invested more capital (the senior partners) lose more than the junior partners, who invested less. If the business activity is successful and generates profits, these profits must be shared with the others. Similar to a sole proprietorship, a partnership has a limited life: it may end upon a partner’s withdrawal or death. Another serious drawback of partnerships is the threat of potential disagreements among partners over decision-making, which may cause management conflicts adversely affecting the business.
Corporations
A corporation is considered by law to be a unique "entity", separate and apart from those who own it. A corporation can be taxed; it can be sued; it can enter into contractual agreements. The owners of a corporation are its shareholders. The shareholders elect a board of directors to oversee the major policies and decisions. The corporation has a life of its own and does not dissolve when ownership changes.
If compared with sole proprietorships and partnerships, a corporation has distinct advantages. One of the weightiest factors is that shareholders have limited liability for the corporation's debts or judgments against the corporations. Generally, shareholders can only be held accountable for their investment in the stock of the company. Corporations have wider opportunities to raise additional funds through the sale of securities. They can transfer ownership through the transfer of securities. With all these advantages, we may wonder why there are much fewer unincorporated businesses than incorporated ones. Obviously, the answer has to do with the disadvantages of the corporation. To start with, the process of incorporation requires more time and money than other forms of organisations because this business organisation is to be created under a government charter. Corporations that are public, i.e. whose shares are sold to the public, are to disclose information about their finances and activities, which may be used by their competitors. Corporations are subject to double taxation. It means that in addition to corporate tax levied on the corporation’s profit shareholders must pay income tax imposed on their dividends.
The form of the business organisation an entrepreneur has chosen is not permanent. If the circumstances of his business change, he can always change the form of his business. For example, he may start his business as a sole proprietorship, but, as his business grows, he may take on a partner and become a partnership. Or, he may choose to incorporate in order to prevent his business creditors from pursuing his personal assets.
Language notes:
a lawsuit – судовий розгляд, позов;
if desired – за бажання (див.нижче when needed – за необхідності; if given – поза наявності);
within the law – у рамках закону;
one and the same – те ж саме;
high-calibre employees – високопрофесійні працівники;
unless there is a defined process = if there is no defined process;
… a legal agreement that sets forth how … – … юридичну угоду, яка чітко формулює, як ...;
up front – тут чесно, відкрито;
withdrawal – вихід з угоди, зі складу учасників;
to be sued – залучати як відповідача за позовом;
to be held accountable – бути відповідальним, звітувати;
to incorporate – інкорпорувати, зареєструвати як корпорацію;
incorporated – акціонерний, що має статус акціонерного товариства; зареєстрований як корпорація
i.e. – id est (Latin) = that is (to say) – тобто
Note the difference:
sole proprietor (US and UK) = sole trader (US)
public limited company (UK) = close(d) corporation (US)
private limited company = open corporation (US)
shareholders (UK) = stockholders (US)