Unit 1 Business

Unit 1 Business

1.a) Make sure that you know how to pronounce the following words, consult the dictionary if necessary:

cloth, clothing, automobile, increase - to increase, decrease - to decrease, to pursue, nonprofit institutions, to conduct, economy, economics, monopolies, to control, nation – national, cartel

b) Read the following text and do the exercises after it.

Text

Business includes the activities of all commercial producers of goods and services. These producers range from small shops owned by one person to huge organizations owned by thousands of stockholders who have shares in the companies. The word business may refer to producers of the same product or service, such as the clothing business or the insurance business. An individual enterprise may also be called a business.

Business affects nearly every part of our lives and provides almost all the goods and services that we use daily. It also supplies most of the jobs and salaries that enable us to buy those goods and services.

The world of business includes a tremendous variety of products and services, some of which we may never see. For example, many people think of an automobile as the product of an assembly line in a plant. But the assembly line is only the final stage of a long process involving many companies. These companies include producers of batteries, glass, steel, tires, and upholstery. Manufacturing a car also requires the services of people in such professions as drafting, engineering, and tool-and-die making. Business also includes advertising, selling, and other marketing activities.

The main goal of most businesses is to earn profits. Profits are earnings over and above all costs. The cost of producing a suit includes the cost of the cloth, the wages of the workers who make the suit, the expense of buying tools and machinery, the cost of advertising, and so on. The price of the suit must include all these costs-plus a profit for the company that makes it.

The desire to earn a profit causes business executives to produce and sell goods and services that consumers demand. The profit motive influences executives to organize and

operate their firms efficiently. By doing so, they can cut production costs and thus increase profits. Executives help determine "how shall goods and services be produced?" by the way they organize production to make profits.

Most hospitals, universities, charitable organizations, and similar institutions do not try to earn profits for their owners. They may engage in activities that profit-seeking businesses would not be able to pursue. Some of these nonprofit institutions sell their goods and services. Others give them away. Nevertheless, their managers generally try to produce goods and services efficiently.

Markets, prices, and competition. Whenever goods and services are bought and sold, a market is created. A market may be a neighborhood store or a worldwide stock market. In large markets, most buyers and sellers never see each other. They may conduct their business by telephone, fax machine, or computer.

In the U.S. economy, market prices rise and fall as demand or supply increases and decreases.

In the U.S. economy, businesses that provide similar products compete with one another for buyers. As a result, competition causes businesses to charge reasonable prices and keep quality high. For example, if a store raises its price for a bag of sugar, its customers may choose to buy from a store that offers the same amount of sugar at a lower price. Similarly, a business that offers consumers products of low quality may lose customers to businesses that supply products of higher quality.

Competition is so important to an economy that governments pass laws to enforce it. These laws prohibit agreements among sellers that interfere with competition. Some laws forbid most monopolies, companies that control the supply of a unique product. Other laws prohibit most cartels and some trusts, which are combinations of businesses that control all or most of a particular industry and that act together rather than compete with one another.

Distribution of incomes. The distribution of goods and services produced depends mostly on who can afford to buy them. And the amount of goods and services people can afford depends mainly on the size of the income they receive.

People earn income in a variety of ways. Most people receive income as wages or as salaries in exchange for their work. Businesses receive income in the form of profits, which belong to the owners. A corporation is owned by people who buy shares of stock and usually receive income in the form of dividends. Owners of land and buildings receive rent. Owners

of bonds and savings accounts receive interest. Many people receive income from government programs, such as Social Security and veterans payments. The total amount of all incomes received in a country is called the national income. In the United States, wages, salaries, and employee benefits make up most of the national income.

In the United States, people earn income by producing the goods and services that consumers demand. In general, the more a person contributes to producing the things consumers want, the larger the person's income will be. The forces of supply and demand also influence the size of a person's income. For example, a firm would probably pay factory managers more money than it would pay unskilled laborers. The firm pays managers more because they contribute more to earning the company's profits than do unskilled workers.

In many industries, workers have joined together to try to increase their incomes. Through labor unions, workers bargain with employers to determine wages, hours of work, safety rules, and other conditions. Workers in some industries are protected by minimum wage laws, which are passed by federal or state governments. Minimum wage laws set the smallest amount of money that an employer can pay a worker for doing an hour's worth of work.

In all economies, private savings and investment have an important influence on economic growth. When people save part of their income, they spend less money on consumer goods and services. More money is then available for the construction of machines and factories. People who save may put money in banks, which lend to businesses. Or the savers may invest in stocks and bonds sold by corporations. With the money of savers, businesses can increase their spending on capital goods. The economy’s growth depends greatly on how much consumers and business companies save and invest.

Focus on text comprehension

2. Answer the following questions using information from the text.

1)What is business?

2)How does business affect our lives?

3)What does the term profit mean?

4)What is the meaning of the expression “profit motive”?

5)Why are certain institutions called nonprofit?

6)What do the terms a) monopolies, b) cartels, c) trusts stand for?

7)How does competition stimulate the development of business?

8)How can income be earned? What is national income?

9)What does the size of a person’s income depend on?

10)How do private savings and investment influence the growth of a country’s economy?

3. Find information in the text to prove the following statements.

1)Business is a complex sphere including many different activities.

2)Earning profit is the main goal of most businesses.

3)Competition causes businesses to charge reasonable prices and keep quality high.

4)A person’s qualification influences the size of his/her income.

5)The economy’s growth depends greatly on how much consumers and business companies save and invest.

Focus on vocabulary

1.Translate the following words into Russian and reproduce the context they are used in: goods, services, assembly line, production costs, nonprofit institutions, employee benefits, unskilled laborers, safety rules, consumer goods

2.Find in the text English equivalents for the following Russian words and phrases:

обеспечивать практически всеми товарами и услугами; потрясающее разнообразие товаров; обивочный материал; управлять компанией; сокращать издержки производства; благотворительные организации; компания, (не)ориентированная на прибыль; дарить/раздавать бесплатно; вести бизнес; просить/назначать разумную цену; сохранять качество на высоком уровне; принимать законы; усиливать/укреплять что-то; запрещать соглашения; вредить/мешать конкуренции; зарабатывать/получать доход; сберегательный счет; общая сумма; силы предложения и спроса;

торговаться/спорить/договариваться с работодателем; установить зарплату

3. Match the words to form collocations.

4. a) Explain the following notions. Use any English dictionary for advanced learners if necessary:

bond, dividend, shares, savings account, income, national income, salary, rent, wage(s), employee benefit(s)

b) Fill in the blanks with the words mentioned above.

People earn … in a variety of ways. Most people receive income as … or as … in exchange for their work. Businesses receive income in the form of profits, which belong to the owners. A corporation is owned by people who buy … of stock and usually receive income in the form of … . Owners of land and buildings receive … . Owners of … and … receive interest. Many people receive income from government programs, such as Social Security and veterans payments. The total amount of all incomes received in a country is called the … . In the United States, wages, salaries, and … make up most of the national income.

5. Fill in the blanks with prepositions if necessary. You can consult the text.

1)These businesses range … small shops … huge organizations.

2)The word business may refer … producers of the same product.

3)Business affects … nearly every part of our lives.

4)Businesses that provide similar products compete … one another … buyers.

5)Customers may choose to buy from a store that offers the same amount of sugar … a lower price.

6)Laws prohibit agreements among sellers that interfere … competition.

7)The amount of goods and services people can afford depends mainly … the size of the income.

8)The forces of supply and demand also influence … a person's income.

9)Private savings have an important influence … economic growth.

10)When people save part of their income, they spend less money … consumer goods and

services.

11)There are people who think … a car … as the product of an assembly line.

6. Fill in the blanks with a suitable prepositional phrase from the previous exercise.

1)They have taken urgent measures to prevent pollution that … this area.

2)Businesses … a niche in the market.

3)A strong personality can … the decision making of a team.

4)We can’t afford to buy the equipment … such a high… .

5)How much does the company … research and development.

6)What do the profits … ?

7)They really … this home craft as a business.

8)Antitrust laws have an important … the economic development of a country.

9)The new law … large businesses.

10)This company’s goods … toys for children … electronic equipment.

11)Nothing must be allowed … our plans to earn a million.

7.a) Speak about the importance of competition for a country’s economy using the following words and phrases:

to compete with sb for sb/sth, to charge reasonable prices, to keep quality high, to buy sth at higher/ lower price, to pass laws, to prohibit, to interfere with competition;

b) Dwell upon business and its role in our everyday life, use the following:

producers of goods and services, to range from … to, an individual enterprise, to affect, to provide goods and services, a variety of products, to support jobs;

c) Speak about profits, use the following vocabulary:

to earn/make/increase profits, to demand sth, profit motive, to operate a firm efficiently, to cut costs, profit-seeking businesses, nonprofit institutions;

d) Characterize market and prices, using the following words and phrases:

to buy/sell goods and services, to conduct business, market prices, supply and demand, to increase/decrease;

e) To describe the distribution of incomes use the following vocabulary:

to afford to do sth, to earn/receive income, wages, salaries, to buy shares, to receive rent/interest, to make up the national income, to contribute sth to sth, the forces of supply and demand, labour unions, to bargain with sb, to determine, to be protected by minimum wage laws.

8.Translate the following sentences from Russian into English using the vocabulary of this unit.

1)Бизнес – это деятельность всех коммерческих производителей, обеспечивающих нас всеми необходимыми товарами и услугами. Слово бизнес может также относиться к производителям одинаковых товаров. И бизнесом можно назвать частное предприятие.

2)На прилавках супермаркета вы найдете потрясающее разнообразие потребительских товаров: от зубочисток до батареек и обивочного материла.

3)Не верно представлять себе, что товары производятся на конвейерах. Конвейер – это лишь последний этап в длинном процессе производства.

4)Главная цель любого предприятия – получение прибыли. Это заставляет менеджеров управлять компанией эффективно, чтобы сократить издержки производства и таким образом повысить прибыль.

5)Но не все компании ориентированы на прибыль. Существуют неориентированные на прибыль организации, например благотворительные организации. Они производят товары и услуги, которые продаются дешево или вообще раздаются бесплатно.

6)Многие компании производят один и тот же продукт, поэтому на рынке создается конкуренция. И именно конкуренция заставляет производителей назначать разумную цену и сохранять качество товара на высоком уровне.

7)Государство специально принимает законы, чтобы укрепить конкуренцию.

Некоторые законы запрещают монополии, картели и трасты, которые концентрируют производство в одних руках и не создают условий для конкуренции.

8)Люди зарабатывают по-разному. Большинство работают и получают либо почасовую зарплату, либо зарплату за месяц. Акционеры получают дивиденды,

владельцы облигаций и сберегательных счетов – проценты. Общая сумма всех доходов населения называется национальным доходом.

Language focus

1. Revise the phrases with to do and to make.

c) Translate the following sentences into English using to do or to make.

1)Ты думаешь, имеет смысл вложить эти деньги и получать проценты?

2)Они сделали мне предложение, от которого я не смог отказаться.

3)Он отличный партнер и руководитель – это делает ему честь.

4)Кто-то всё-таки проник внутрь и устроил беспорядок.

5)У меня завтра презентация. Я должен сделать все приготовления.

6)Наш отдел занимается научно-исследовательской работой. Мы уже сделали несколько открытий.

7)Вы не могли бы оказать мне услугу и извиниться за меня. К сожалению, я не смогу присутствовать сегодня на совещании.

8)Сейчас мы занимаемся приготовлениями к продаже завода.

9)Он стал заниматься бизнесом два года назад и уже преуспел.

10)Возьми отгул – это пойдет тебе на пользу.

11)Если мы приложим больше усилий, мы выиграем этот конкурс.

12)Я постараюсь произвести хорошее впечатление на работодателя.

13)Наводнение нанесло ущерб промышленному району страны.

14)Я не знаю, чем он сейчас зарабатывает себе на жизнь. Но несколько лет назад он разбогател на бирже.

15)Неважно, где ты покупаешь товар, но он должен быть качественный.

16)Текстильная фабрика, которую мы купили полгода назад, уже принесла большую прибыль.

2. a) Paraphrase the following sentences as in the example. Remember that the future is not

used in the first part of the sentence.

Example: A person will contribute much to producing things. The person’s income will be large. → The

more the person contributes to producing things, the larger their income will be.

1)If businesses produce and sell goods and services the consumers demand, they will make high profits.

2)If competition is tough, producers keep quality high.

3)She will work hard and she will become efficient.

4)If you walk far from the city center, it becomes quiet.

5)You will set off early and you will get there soon.

6)I’ll start late. The road will become busy.

7)He’ll memorize the introduction well. He will feel confident when making a presentation.

8)If one stays cool in the middle of a conflict, they will make a good negotiator.

9)If management is poor, the decrease in profits is great.

10)If one climbs high the hierarchical ladder, they will become responsible for subordinates.

b) Translate the following sentences into English.

1)Чем больше вы будете работать, тем больше вы заработаете.

2)Чем увереннее вы будете на интервью, тем более приятное впечатление вы произведете на работодателя.

3)Чем сильнее рекламная кампания, тем больше будет узнаваем ваш продукт.

4)Чем больше и лучше мы учимся, тем интереснее мы живем.

5)Чем хуже менеджмент на нашем производстве, тем меньше прибыли у нас будет.

6)Чем больше мы вложим в производство, тем больше будет объем производимого продукта.

7)Чем выше качество наших товаров, тем прочнее наши позиции на рынке.

8)Чем надежнее партнер, тем меньше неприятностей у нас будет.

9)Чем сильнее конкуренция, тем это выгоднее для потребителя.

10)Чем серьезнее вы на работе, тем больше коллеги будут вас уважать.

3. Phrasal verb: to give

Example: Others give them away.

a) Match the phrasal verb with its meanings.

b) Fill in the blanks with the phrasal verb to give.

1) The paint was … some strange smell.