Ermolaeva_L_D_Ekonomika_i_biznes_1

3. Have .. .

Yes, they have. The shares have been issued and offered for sale at the plant. 4. Whom …

The shares have been sold to the workers of the plant and other people. 5. Are …

Yes, they are. The shares are being issued and sold now. 6. On what …

The capital raised by selling shares will be spent on the modernization of production.

 XIV. Choose the answer on the basis of the information you derived from

3. When someone wants to start up a business he or she will usually ob-

4. In which of the following organizations is the original owner no longer

5. What is the maximum number of partners you are allowed to have by British company law in a private limited company?

6. What is the maximum number of partners (allowed by British com-

XV. Answer the questions using the information of the text A.

1.What is the name of the smallest type of business organization?

21

2.What is the name of the largest type of business organization?

3.Where does one get the money if one wishes to start a business?

4.What are the three questions we must always ask ourselves when we think about business organization?

5.What do you think the advantages of a one man business are?

6.What do we mean by „unlimited liabilities‟?

7.Why may the owner of a one man business wish to enter into a partnership?

8.What are the disadvantages of a partnership?

9.What is the maximum number of partners in a partnership?

XVI. Decide which of the following the small shopkeeper has to do. Which

of the points do you think will cause him problems. Give a reason for every point:

a)advertise in foreign newspapers

b)find cheap premises in an area where his customers can park their cars

c)find premises which are in good condition

d)hire a full-time legal advisor

e)compete with international corporations

f)compete with other small businessmen

g)find someone to look after the business when he is sick or takes a holiday

 XVII. Fill in the missing remarks and act out the dialogue.

P.: Hello, Steve.

S.: …

P.: Quite all right, thanks. I want to talk to you about my business.

S.: …

P.: I need some legal advice. We are going to expand. We have a success and now some businessmen are interested in investing with us. What should we do to form a corporation?

S.: …

P.: Does that mean that we elect our Board of Directors?

S.: ….

P.: Must we hold a meeting to organize the corporation?

S.: …

 XVIII. Figure three shows the distribution of the three basic forms of business organization. Look at the figure and say:

1.How many percent of all firms each form of organization account for?

2.What is the least common form of organization?

3.How many percent of all receipts does each form of organization bring in?

22

 XIX. Solve the problems through group discussions.

A.A public limited company has decided to raise additional finance by issuing more shares. In pairs or small groups consider two methods which can be used.

B.Both a one man business with unlimited liabilities and a limited company with limited liabilities have advantages and disadvantages. In pairs or small groups discuss these advantages and disadvantages. After the discussion choose two members of your group who will inform the entire class about the results of the discussion.

TEXT В

I. Read the following text and try to understand its contents as much as possible.

OWNERSHIP

Owners differ in their approach, in their style, and in their concern for the business they own. For some, the business has developed from years of hard work and many struggles, their heart is in the business. For others, the business is merely a financial investment, to be traded at the right time in the future.

23

Some owners are also managers of the business and are closely involved in its day-to-day activities. Other owners employ professional managers on a salaried basis or appoint a small group of managers who formulate strategy, and operate the business.

Ownership of a business can take many forms. In those countries following the free enterprise approach, the law invariably permits a whole series of different forms of business ownership: sole ownership, local company, conglomerate, multi-national, distributor.

There is one important factor common to all: the business may be in private or public ownership.

In sole ownership the business is owned by one person, or possibly one family, and it will almost certainly be a private company. Where the founder of the business remains in charge, frequently he will hold a number of basic principles on product quality, production processes, or employee relations. A multinational is a large scale operator, normally in a major country, who has subsidiary companies operating in many countries throughout the world. The multinational parent will be a public company and its subsidiaries around the world will usually be private companies.

Multi-nationals differ in their management style. Some are highly centralized with a large head office staff. Others are more relaxed and give their local executives considerable autonomy.

Distributors are the various retail and wholesale chains who sell a wide variety of own label brands which carry the trade name of the particular retailer or wholesaler.

The distributors rarely move into the manufacture of their own label products: they use either the available specialist manufacturers, or the normal branded goods makers who are prepared to produce own label brands.

The owners of the distributor brands are the proprietors of the retail and wholesale businesses.

The term “local company” is used to describe a business which is formed and operated fully in only one country. Local companies can be either public or private.

A particular form of local company is the producer cooperative as frequently found, for instance, in the dairy industry. Often controlled by committees, they are led and managed by producers, and so their reasoning and approach are often those of the producer rather than of a consumer orientated business.

A conglomerate is defined here as a holding company which controls financially series of subsidiary companies of various sizes and types and selects their senior executives. Subsidiary companies are allowed to follow their own way, but there is a very clear requirement that a given level of profit and cash must be produced. The conglomerate does not normally consider itself tied to a particular

24

industry, it is quite prepared to trade operating companies whenever it considers this advantageous.

In general, the conglomerate is more likely to be interested in getting results over the short to medium term rather than the long term.

II. Look through the text again and name the forms of business ownership mentioned in it.

III. Divide the text into logical parts and give them suitable titles.

IV. Answer the following questions.

1.What are the most typical features of sole ownership?

2.What is a Multinational?

3.What are the advantages of this type of business ownership?

4.What are the main characteristics of distributors?

5.What is a “local company”?

6.What is a conglomerate?

7.What typical features of a conglomerate can you name?

UNIT III

Grammar: The Infinitive; Forms and Functions

 1. Read and memorize the following words and word combinations:

 II. Make adjectives bу adding suffixes and translate them:

- al: finance, commerce, person, government, industry;

- ive: to attract, to circulate, to execute, to accept, to conduct, to act, to accumulate, to distribute;

- ent/ant: to reluct, to stagnate, to combat, to prefer.

 III. Make nouns by adding the suffix “-ment” and translate them: to govern, to require, to encourage, to develop, to pay, to arrange.

26

 IV. Read the international words and guess their meanings:

to regulate, climate, active, tendency, inflation, factor, cheque, basis, packet, bank note, normally.

 V. Translate the sentences paying attention to the use of words from the active vocabulary.

1. The interest rate figure is quoted from time to time by the Bank of England. 2. Inflation is caused by too much money circulating in the economy. 3. The activity of stagnant economy may be encouraged by lowering the interest rate. 4. Banks always try to invest in sound shares and securities. 5. If required by the account holder the bank must give him the statement of all money and cheques paid into the account or withdrawn from the account. 6. One of the services of the Commercial Banks is to keep customers‟ valuables in safe custody. 7. Sometimes the commercial banks act as executors and trustees for deceased persons.

 VI. Fill in the blanks with one of the following words: arise (v), rise (n),rise (v), raise (v). Take into consideration their meanings.

1.Raise means “to lift, to make bigger”, “to bring up” (children), or “to cultivate” (plants);

2.Rise means “to move up without assistance” or “to increase”;

3.Arise means “to appear”.

A serious problem has … in my company. Because the cost of living … by 6% last year, management decided to … salaries of all the staff. For this reason, they gave everyone a … of 10% a week. However, later on, they had to pay for this by … the prices of all our products by 10%. Such a large … in prices made our products uncompetitive. So now, management is talking of lowering our salaries again.

 VII. Translate the following sentences paying attention to the forms of the Infinitive.

1. Our obligations under the contract can only be fulfilled if we are given answers to all questions on this list. 2. They were happy to have been working for many years with the famous economist. 3. Statements will give a detailed account of all money and cheques to be paid into the account. 4. The government uses the interest rate to regulate the economy of the country. 5. Commercial Banks are said to be changing old bank notes for new ones. 6. The bank clerk was greatly sorry to have been dismissed. 7. Services of the Commercial Banks are: to accept deposits from depositors, to make loans, to borrowers, to buy and sell shares for customers and so on. 8. He must be preparing the financial statement now.

27

 VIII. Translate the following sentences paying attention to different functions of the Infinitive.

1. This does not mean that the discoveries to be made are planned in advance. 2. A check book is used to make payments from the account. 3. To combat inflation the government often raises the interest rate. 4. There are some factors which the government must consider before it makes the financial institutions raise or lower their interest rates. 5. The interest rate to be charged borrowers and paid to depositors is influenced by interest rate figure to be quoted from time to time by the Bank of England. 6. To study the structure and functions of the Commercial Banks is a topic of his terminal paper. 7. The principal task of the wholesaler is to store the goods in large quantities and many varieties. 8. Banks have to give statements to account holders about once every three months.

 IX. Complete the following sentences using appropriate Infinitive forms.

1.The goods and the raw materials are … efficiently.

a)to be distributed and sold;

b)to have been distributed and sold;

c)to be distributing and selling.

2.The functions … bу wholesalers include buying, transporting, storing, etc.

a)to be performed.;

b)to perform;

c)to have performed.

3.The clerk must … much routine paper work for the whole day.

a)have been doing;

b)have done;

c)be doing.

4.They must … the financial statement now.

a)prepare;

b)have been preparing;

c)be preparing

5.They were glad … shares of this successful company.

a)to buy;

b)to have bought;

c)to be buying.

6.This Commercial Bank was the first … about a rise in the interest rate.

a)to inform;

b)to be informed;

c)to have been informed.

28

TEXT А

THE COMMERCIAL BANKS

A bank is an intermediary between a depositor and a borrower. Depositor A deposits £100 with his bank for one year. He is paid an interest rate of say 3%. At the end of the year, the £100 will have become £103. Meanwhile the bank will lend that £100 to a borrower and charge him an interest rate of say 7%. At the end of the year the borrower will have to pay £107 back to the bank. Thus the bank has made a gross profit of £4.

The interest rate, which the commercial banks charge borrowers and pay to depositors, will be influenced by the interest rate figure which is quoted from time to time by the Bank of England, which is, of course, controlled by the government.

A rise in the interest rate will make borrowing more expensive and saving more attractive. A fall in the interest rate will make borrowing cheaper and saving less attractive.

The government may use the interest rate to regulate the economic climate of the country. By this we mean that if borrowing becomes more expensive, businessmen will become more reluctant to borrow and develop their business, but if it falls then they will possibly borrow more money and the economy will probably become more active.

If the economy becomes too active, there is usually a tendency for inflation to occur, and this is usually caused by too many goods being produced and too much money circulating in the economy. As the goods are bought up the prices rise and inflation occurs.

To combat inflation the government will often raise the interest rate. If the economy was stagnant then the interest rate would probably be lowered to encourage it to expand and become more active.

There are, of course, other factors, which the government must consider before it influences the financial institutions to raise or lower their interest rates.

Banks make a profit bу:

1.Making loans to businessmen and private individuals.

2.Charging interest payments on overdrawn accounts.

3.Lending to the money market.

4.Investing in sound shares and securities.

There are two types of accounts: the deposit account and the current account. The deposit account will probably pay a fixed rate of interest and will sometimes issue the saver with a bank savings book. The current account pays no interest. A cheque book is used to make payments from the account and a payingin book is used when money is paid into the account.

29

Banks will normally give statements to both deposit and current account holders about one every three months or more frequently if required by the account holder. Statements give a detailed account, on a day to a day basis, of all money and cheques which have either been paid into the account or withdrawn from the account.

Services of the Commercial Banks:

1.Accept deposits from depositors.

2.Make loans to borrowers.

3.Conduct deposit and current accounts for customers.

4.Keep valuables in safe custody.

5.Pay standing orders for customers. A standing order is a regular payment

made on behalf of a customer and deducted from his account on a regular basis, say on the 4th of every month, e.g. mortgage payment to the building society.

6.Give advice on income tax matters.

7.Give advice on overseas trading.

8.Buy and sell shares for customers

9.Issue foreign currency and traveller‟s cheques.

10.Provide firms with change and sometimes “make up” cash wage packets for customers.

11.Act as executors and trustees for deceased persons.

12.Change old bank notes for new bank notes.

Bank Lending

Banks will lend money in two ways:

1)by personal loan;

2)an overdraft loan or arrangement

X. Arrange the following words into the pairs of antonyms:

to raise, depositor, a rise, expensive, reluctant, end, to buy, to pay into, rarely, borrower, cheap, a fall, to sell, active, beginning, to withdraw, frequently, to lower.

 XI. Complete the following statements, using the information of the text.

1.Commercial banks keep v... in safe custody.

2.Commercial banks give a... in i... t... matters.

3.Commercial banks pay s… o… .

4.Commercial banks b… and s... sh... for customers.

5.Commercial banks give a... on over... t... conditions.

6.Commercial banks act as e… and t… for deceased people.

7.Commercial banks accept d… from depositors and make 1... to borrowers.

8.Commercial banks exchange old bank notes for n... bank notes.

30