The board Managing Director

Sales and Marketing Director

Finance Director

Personnel Director

1.

Sales and Marketing Department

R & D Department

Personnel Department

Finance Department

Sales

Marketing

2

Corporate Chief Executive

.

Marketing

Manufacturing

Finance

Sales

Marketing research

Sales

Marketing research

Product planning

Advertising

3

The Board

Managing Director

Sales Director

Financial Director

Personnel Director

.

Sales and Marketing Department

R & D Department

Financial Department

Personnel Department

Sales

Marketing

Heads of sales

Administration

Marketing Executuve

SECTION 3. SUPPLEMENTARY READING.

Exercise 1. Read and translate the text.

Apple Slices.

Apple Computer has organized and reorganized several times during its existence. Steven Jobs and Steve Wozniak first organized the company in the late 1970s, starting operations out of a garage. This simple organization grew rapidly and soon became a multi-million-dollar corporation. Natu­rally, the organization changed as it grew. Wozniak was uninterested in management and left Apple in 1985. Jobs, in contrast, was very interested in management and reorganized the company. Jobs put a team of vice presidents over operations, and, despite maintaining some technical in­volvement, he became chairman of the board and vice president. In addi­tion, he had a president and chief executive officer (CEO). Teams were used to develop new products and ideas, and vertical integration was begun in software and product distribution.

As Apple grew, so did its operating and marketing problems. Jobs insisted on developing machines that .were not compatible with those of IBM despite the growth to dominance of IBM equipment in the market­place. New Apple products were late coming to market and many turned out to be failures. Finally, Jobs became convinced of the need for top-level, professional managerial experience in the Apple organization. In May 1983, he hired John Sculley to be president and CEO of Apple. Jobs remained chairman of the board.

Sculley immediately moved to reorganize Apple. He changed the struc­ture from nine product divisions to three divisions that were not parallel in terms of departmentalization. One division was a functional division, and it was to handle all marketing and sales. Another division was a product division in charge of the entire Apple II product line. The third division was a product division headed by Jobs and charged with developing, producing, and marketing the Macintosh line of computer products.

The two product divisions soon began to compete internally for re­sources: time, money, and talent. The Apple II was a cash cow that gen­erated funds for the corporation, and the Macintosh was a cash drain that soaked up those funds. Because Jobs headed the Macintosh unit, it became the elite place in the organization to work. The Macintosh division fell behind schedule and sales goals. In 1984, the Apple division accounted for nearly $1 billion in revenues compared to around $500 million for the Macintosh division

Members of the board began to pressure Sculley to obtain better perfor­mance from the Macintosh division. Board members began to talk of putting someone else in charge of the Macintosh division in order to turn it around. A battle erupted between Jobs and Sculley. Sculley won; Jobs was out. Late in 1985, Sculley advanced to chairman to replace Jobs. A unit was created to handle product development; six factories were closed and 1,200 employees were laid off; and a new head for Macintosh was named. Since that time, there have been numerous small reorganization activities going on with Apple, especially in sales and marketing.

The 1985 reorganization paid off. Sales, which had leveled off at around $2 billion in 1985, nearly doubled after the reorganization, reaching almost $4 billion by the end of 1988. Net income went from about $50 million in 1985 to just under S400 million in 1988. The company was doing so well that Sculley took advantage of a corporate perk by taking a six-week sabbatical and three weeks of vacation to rest, recuperate, and revitalize himself in mid-1988.

Just as Sculley returned, Apple announced the completion and imple­mentation of major reorganization plans that had been under way for over a year. In that reorganization, Sculley remained as chairman of the board and CEO, and the duties associated with the presidency were divided among four other executives. Thus, Apple, which had gone from nine divisions to three, became a four-division structure.

A new division combined Apple sales and educational marketing efforts to the Pacific region. This division accounted for about 40 percent of sales revenues in 1988. The Apple Europe division was created to focus on European sales and marketing. The third new division, Apple Products, combines new-product development, manufacturing, and marketing. The fourth new division, Apple USA, deals with internal information systems and technology operations, including U.S. sales and business marketing, service, and support.

Exercise 2. Translate into English.

Матричная структура представляет собой современный эффективный тип организации структуры управления, построенный на принципе двойного подчинения исполнителей. С одной стороны это подчинение руководителю функциональной службы, которая представляет персонал и техническую помощь. С другой стороны – руководителю проекта, который наделен необходимыми полномочиями для осуществления процесса управления в соответствии с запланированными сроками, ресурсами и качеством.

Руководитель проекта взаимодействует с двумя группами подчиненных: с постоянными членами проектной группы и с другими работниками функциональных отделов, которые подчиняются ему временно и по ограниченному кругу вопросов.

Потребность в применении дивизиональной структуры возникла с резким увеличением размеров предприятий, диверсификацией их деятельности и усложнением технологических процессов. Ключевыми фигурами в управлении организации с данной структурой становится не руководители функциональных подразделений, а менеджеры, возглавляющие производственные подразделения.

Структуризация организации по отделениям производится, как правило, по одному из критериев: по выпускаемой продукции, по ориентации на потребителя, по обслуживаемым регионам. Руководители вторичных функциональных подразделений отчитываются перед управляющим производственного подразделения. Помощники руководителя производственного отделения контролируют деятельность функциональных служб по всем заводам отделения, координируя их деятельность.

Линейно-функциональная структура обеспечивает такое разделение управленческого труда, при котором линейные звенья управления призваны командовать, а функциональные – консультировать, помогать в разработке конкретных вопросов и подготовке соответствующих решений, программ, планов. Руководители функциональных подразделений (по маркетингу, финансам, НИОКР, персоналу) влияют на производственные подразделения формально. Они не имеют права самостоятельно отдавать им распоряжения. Роль функциональных служб зависит от масштабов хозяйственной деятельности и структуры управления фирмы в целом. Функциональные службы осуществляют всю техническую подготовку производства. Они подготавливают варианты решений вопросов, связанных с руководством процесса производства.

UNIT 10. SMALL BUSINESS.

SECTION 1. KEY VOCABULARY.

Exercise 1.Match the words with their corresponding definitions.

owner innovation big business

owners’ equity performance small business

consumer manufacturer Small Business Administration

growth rate entrepreneur gross national product

1. very large companies considered as a powerful group with a lot of influence;

2. a business with not many employees, or there business considered as a whole;

3. a US government organization that helps small businesses, for example by lending them money at low interest rates;

4. someone who starts a company, arranges business deals, and takes risks in order to make a profit;

5. the degree to which a company, investment, financial market etc. is profitable;

6. a new idea, method, or invention;

7. a person, firm etc. that manufactures things;

8. a person or organization that owns something;

9. a person who buys goods, products, and services for their own use, not for business use or to resell;

10. the difference between the value of a company’s assets and its liabilities other than those to shareholders;

11. the total value of goods and services produced in a company’s economy, including income from abroad

12. the speed at which something grows.

Exercise 2. Read and translate the text.

SMALL BUSINESS AND THE U.S. ECONOMY

What is a small business? There are actually many different definitions, but the most widely quoted ones arc those of the U.S. Small Business Administration (SBA). Created in 1953 by the U.S. Congress, the SBA has a two fold purpose - to improve the managerial skills of entrepre­neurs and to help them borrow money. For entrepreneurs seeking its help, the SBA has drafted definitions to fit virtually every industry.

Small business plays a major role in the U.S. economy. More than 99 percent or the nation's 16 million businesses are small. Their effects are felt in a number of areas, including financial performance, innovation, job creation, new-business formation, and contributions to big busi­ness.

Financial Performance. In sheer numbers alone, small business far outstrips big business. There is also evidence that suggests that small business outperforms big business financially. On average, for example, small manufacturers earn a higher return on owners' equity than do large manufacturers, for two main reasons. First, in many manufactur­ing industries, small business can respond more rapidly and at less cost than can big business to the quickening rate of change in products and services, processes and markets. Second, small business has become more attractive to talented, individualistic men and women. In any event, small business has a positive impact on the nation's economic performance in terms of gross national product, growth rates, and other indicators.

Innovation. Entrepreneurs and small business play a major role in innovation. Small businesses or individuals working alone invented the personal computer, the transistor radio, the photocopying machine, the jet engine, and the instant photograph. Their ingenuity also gave us the pocket calculator, power steering, the automatic transmission, air conditioning, and even the nineteen-cent ballpoint pen. Clearly, we are all better off for the presence in our economy of millions of small businesses. Their resourcefulness and ingenuity have spawned new in­dustries and contributed a great many innovative ideas and technolog­ical breakthroughs.

Job Creation. Small businesses create more new jobs than do larger businesses. One study suggested that small businesses may create as many as 66 percent of all new jobs in the United States each year. In another study, the U.S. Department of Commerce found that small, young, high-technology businesses created new jobs at a much faster rate than did larger, older businesses. Such small businesses (especially those in chemistry and electronics) require employees with a high de­gree of scientific or engineering knowledge and thus generate additional demand for them. Clean Harbors, Inc., has created around 500 jobs in the New England area, and Reebok has created over 2,000 jobs in the last five years.

New-Business Formation. Another indicator of the importance of small business is the record number of businesses formed each year since 1960. New incorporations hit the 600,000 mark for the first time in 1983. This figure is more than four times the total in 1960. Of course, some of the new corporations are mature businesses that were born as sole proprietorships or partnerships and have only recently incorporated. Nevertheless, many more small businesses are created each year than larger ones.

Contributions to Big Business. A final reason small businesses have such enormous impact is contributions to big business. General Motors, for example, buys from 25,000 suppliers, most of them small businesses. Such businesses can create and deliver specialized products more efficiently than can larger businesses. Indeed, big businesses buy more of their inputs from small businesses than from other big businesses. Small businesses also play a key role in distributing and selling the products of larger businesses to consumers.

Exercise 3. Give the definitions to the words in italics.

1. Reformers are trying to cut the links between government and big business.

2. Wholesaling is a very popular area of small business in the United States..

3. The Small Business Administration will help each business to develop a sound business plan.

4. State governments had sought to promote economic development through close links with local entrepreneurs.

5. The company is showing strong performance and doing considerably better than the retail industry as a whole.

6. Entrepreneurs and small business play a major role in innovation.

7. Legally, the buyer becomes the owner at the instant the contract is made.

8. Demand for autos is increasing as consumers feel more confident about the economy.

9. Small manufacturers earn a higher return on owners’ equity than do large manufacturers.

10. The Bundesbank expects the German gross national product to grow at a rate of 1.5% to 2.0% this year.

11. The contracts allow retailers to sell equipment at below the manufacturer’s price.

12. The company said its low growth rate stems from the recession’s impact on commercial and industrial customers.

Exercise 4. Complete the passage using the following words and phases:

to perform, the products, to dominate, to coordinate, to manufacture, entrepreneurs, manufacturers, small business, to go into business.

Service organizations are perhaps the most common type of 1... ... because they require a fairly small capital investment to get started. A certified accountant, for example, can 2... ... ... just by renting an office and hanging out a sign. Small businesses ranging from video rental shops to hair salons to auto repair shops have flourished in recent years.

Retail businesses are another popular area for small business. Small business is especially effective in the area of specialty retailing - retail establishments that cater to certain customer groups like golfers, college students, and people who do their own automobile repairs. Many large retail chains allow individual stores to be run by 3... who have signed franchise agreements.

Small business also 4... the wholesale industry. Wholesaling involves buying products from large 5... and reselling the 6... to retailers. Small businesses are effective in this area because they have the flexibility and can develop the personal working relationships necessary to 7... large numbers of sellers and large numbers of buyers.

Manufacturing is the one area where small businesses often 8... more poorly than do large businesses. Starting a manufacturing firm almost always requires a large initial investment in plant and equipment. Thus, few small businesses can afford to 9... automobiles, refrigerators, or televisions. Still, in some instances small businesses have succeeded in manufacturing. Ron Canion and Compaq Computer, for example, have done quite well.

Exercise 5. Match the words and phrases with their corresponding definitions.

1. to set up in business

2. to get down to business

3. business people

4. ingenuity

5. individual

6. breakthrough

7. to outperform

8. to create

1. to produce or make something new

2. to do well in a particular job or activity compared to others of similar type

3. a single person especially when compared to the group

4. an important discovery that helps to provide an answer to a problem

5. the men and women who work in business, especially those who have important positions in it

6. an ability to think of clever new ways of doing something

7. to start one’s own company

8. to start talking about matter to be discussed

Exercise 6. Complete the sentences using the phrases (1-8) from Exercise 5. Change the form of the words where necessary.

1. Like many creative ... she can be very bed-tempered.

2. Scientists are hoping for a ... in the search for a cure for the disease.

3. The Peugeot engine has consistently... its rivals this season.

4. She cleverly ... a job for herself when the company was reorganized.

5. Many ... ... will be concerned by the proposed increase in interest rates.

6. Drug smugglers constantly use their ... to find new ways of getting drugs into a country.

7. She ... ... ... ... as a management consultant.

8. If the introductions are over I’d like to ... ... ... ... .

Exercise 7. Translate into English.

A. 1. Я хочу помочь ему открыть собственное дело.

2. Они открыли для своего сына контору по продаже недвижимой собственности.

3. Давайте приступим к работе.

4. Давайте перейдем к насущным делам (= к очередному вопросу).

5. Это требует большой изобретательности.

6. У него вид вполне счастливого человека.

8. Создание компьютера стало эпохальным открытием 20 века.

9. Мы превосходим их по всем показателям.

10. Он создал эпическую поэму.

11. Его заявление вызвало чувство удивления.

12. Вам не следует волноваться об этом.

B. 1. Собственник – владелец имущества, физическое или юридическое лицо, обладающее правом собственности, выступающее в роли владельца, распорядителя и пользователя объекта собственности.

2. Уставной капитал – сумма капитала, которую выделяют акционерные общества, и другие предприятия для начала деятельности.

3. Уставной капитал создается за счет выручки от продажи акций, частных вложений капиталов, государственных средств, а также ноу-хау, патентов, лицензий и т.д.

4. Потребитель – лицо или организация, потребляющее, использующее продукт чьего-либо производства, чьей-либо деятельности, включая и свой собственный продукт.

5. Темп роста – отношение величины экономического показателя за определенный период времени к его исходному уровню.

6. Инновация – новая техника, технология, являющиеся результатом достижений научно-технического прогресса. Развитие изобретательства и появление крупных изобретений является существенным фактором инноваций.

7. Производитель – это предприятие или физическое лицо, изготовляющее товар и предоставляющее услугу с целью получения прибыли.

8. Предприниматель – это физическое лицо, прошедшее государственную регистрацию в качестве предпринимателя и которое на свой риск осуществляет активную экономическую деятельность.

9. Бизнес – экономическая деятельность, дающая прибыль; либо вид деятельности, приносящий доход или иные личные выгоды.

10. Малый бизнес – принятое обозначение совокупности мелких и средних частных предприятий, прямо не входящих ни в одно монополистическое объединение.

SECTION 2. SKILLS FOCUS.

Exercise 1. Read the cards. Identify some famous companies and products from facts about them.

1.

• Microsoft is an American company.

• The number is 501.

• It is the company which designs the CD player.

• It manufactures luxury cars.

• They are known for being extremely comfortable and practical.

• Its distinctively shaped bottle makes it instantly recognizable.

2.

• His name is Bill Gates.

• Its jeans are famous all over the world.

• It produces quality electronic goods.

• She had a Spanish name.

• They have been fashionable since the 1960s in Britain and now sell everywhere in the world.

• Coca Cola is an American company.

3.

• It Designs software.

• Levi Strauss is an American company.

• Its first product was a light bulb.

• Of all automobile manufacturers founded in the nineteenth century it is the only one still in existence.

• Its main products are boots and shoes.

• It may be the world’s best known brand.

4.

• One of its best known products is a computer operating system

• It was founded in California in the nineteenth century.

• It has invented 10,000 products and filed 65,000 patents world-wide.

• It is partly named after the daughter of a racing car driver.

• Dr. Martens is a British company.

• NASA took it along on a trip into the space.

5.

• It was founded in 1980.

• It is a clothing company.

• Philips is a Dutch company.

• It was the first company to introduce crash testing.

• It is a clothing company.

• It is in the food industry.

6.

• Its president is one of the richest men in the world.

• Its most famous product doesn’t have a name: it has a number.

• An average British home contains more than five products manufactured by this company.

• Mercedes-Benz is a German company.

• Their special sole was originated by a German doctor for his own use after a skiing accident.

• Its main product is a carbonated drink.

Task. Write key facts about other well-know companies.

Exercise 2. Answer the following questions and do the task.

1. What does your company do?

2. What is it called?

3. What kind of public image do you have?

4. How many people do you employ?

5. Where are your headquarters?

6. Do you have offices in other countries? If so, where?

7. What is your turnover, market share and net profit? Who is your main competitor?

8. Are you growing, shrinking or holding steady?

9. What are your most promising products and/or markets?

10. What problems are you having and how are you dealing with them?

Task 1. Invent a company. Prepare and give presentation about your company.

Task 2. You may also find the necessary information about some company and present it, using the questions.

Exercise 3. Read the text and answer the questions.

Mrs. Fields Has Recipe for Success.

Debra "Debbi" Sivyer earned a local reputation for herself as 3 teenager baking cookies in her hometown of Oakland, California. She married Randall "Randy" Fields and moved to Palo Alto, where he worked as a financial manager. While enrolled as a student at a local community college, Debbi began to want to run her own business. Her baking background seemed a natural, but everyone including her husband had doubts that it could become a viable endeavor. However, Randy finally agreed to lend her $50,000.

Mrs. Fields located used equipment and furnishings and opened Mrs. Fields' Chocolate Chippery on August 13, 1977. The location she chose was near Stanford University in an international food arcade between a delicatessen and a Tibetan restaurant. Her first morning in business she did not sell a single cookie, so in the afternoon she went up and down the street giving away samples. She sold $50 worth of cookies that afternoon. The second day she started giving away samples earlier in the day and sold $75 worth. Over time, she began to acquire a growing group of customers, and her sales increased substantially.

Excited by this success, Debbi and Randy opened another store. When it too succeeded, they opened still another. Today, there are several hundred Mrs. Fields stores in six countries with combined annual sales in excess of $50 million. Debbi's company is now a large corporation based in Park City, Utah.

When Debbi opened her first cookie store, she did everything. She bought the furnishings and equipment, negotiated a lease, baked the cook­ies, sold the cookies, operated the store, and kept the records. As the business grew, she began to hire others to take over parts of it for her. Debbi quickly turned baking and selling over to others in order to give herself time to develop the company and plan for expansion.

Debbi's approach to business has not changed as the company has grown. She argues that a business must be fun in order to succeed. She strongly believes that people who work in the company must be treated with kindness and respect so that they will treat customers with kindness and respect. She has refused to franchise her operations for fear that her ap­proach to business will not be carried out by others. All Mrs. Fields stores, therefore, are company owned and controlled.

A major component of that control is the quality of the cookies that are baked and sold. Debbi insists that all Mrs. Fields' Cookies be made with fresh and high-quality ingredients. Further, because the quality of a cookie is a function of how long it has been sitting before it is sold, she insists that most unsold cookies be removed from display cases after two hours. Those cookies are donated to charity organizations.

More recently, Mrs. Fields found itself in serious trouble. After opening nearly 600 stores, Debbi had to close some and now has less than 500. The public stock offering on the London market led to the purchase of only about 16 percent of the shares. The year 1988 saw enormous losses, and the stock plummeted as investors became concerned about the firm's long-term prospects. Some say that the company's move into the international arena was premature and that the management practice of retaining com­pany control cannot succeed in distant locations such as London and Hong Kong. Indeed, late in 1988, Mrs. Fields yielded control of its European operations to a French company, Midial S.A. However, there were other problems as well. Some of them occurred because of a move to broaden the product line and absorb La Petite Boulangerie.

La Petite Boulangerie consisted of over 100 full-service bakery stores that Mrs. Fields' private, parent company, MF Holdings, acquired from PepsiCo in 1987. The strategy is to integrate the La Petite stores into the Mrs. Field's chain by converting the chain from single-product outlets to combination stores. The combination stores are about three times the size of the older cookie outlets and sell cookies, soups, bagels, and sandwiches. But it is unclear in which direction the company really wants to go. Some of the new stores retain the name La Petite Boulangerie; some are called Mrs. Fields; and others go by the name of Mrs. Fields Bakery Cafe.

Many entrepreneurial firms have problems continuing their success as they grow, especially if growth is rapid. That seems to be the case with Mrs. Fields. Whether the company can plot a consistent strategy and develop a new, slower approach to growth that will enable the current management to continue its success remains to be seen.

Questions:

1. What entrepreneurial characteristics does Debbi Fields display? Why do you think she was not content to operate only one successful store?

2. What are some of the factors that led to the success of Mrs. Fields' Chippery? What dangers did the company face as it began? How were the dangers overcome?

3. As Mrs. Fields expands into the international market, do you think that it will continue to be as successful as it has been in the past? Why or why not?

4. Would you like to be a manager in the Mrs. Fields organization? Why or why not? Would you purchase stock in the company? Why or why not?

Exercise 4. Read the following information about Japan and do the task.

1. In traditional companies new groups of recruits normally all enter the company on the same day of the year (usually April 1).

2. New recruits go through an orientation course. Among other things, they learn the company philosophy, its motto and its song.

3. Most employees receive regular training throughout their career with the company.

4. During recession both workers and top executives sometimes accept salary cuts so that everyone can remain in work.

5. If they are forced to lay workers off, good companies will try to help the person find another job.

6. Individual roles within groups are not clearly defined: everyone does whatever is necessary to accomplish the task.

7. When new problems come up, special teams of managers and workers form to decide how to solve them. They often meet outside company hours.

8. Many ideas originate at the bottom of the hierarchy. As they move through the company they are adapted until they are finally authorized at the top.

9. Employees receive a bonus in summer and a larger one at the end of the year which is equal to two to six month’s pay or, if the company is doing well, even more.

10. If you have an idea you may be expected to give it to the group or to your boss without trying to gain personal credit for it.

11. People are dedicated to the business. They routinely work more than their allotted number of hours and do not take all the holidays they are entitled to.

12. Relationships with suppliers and subcontractors are seen as a long-term human relationship rather than a series of isolated transactions.

Task 1. Present the information about Russia.

Task 2. Discuss the differences between Japan and Russia.

Task 3. Tell about the country you would like to work and live. Give your reasons.

SECTION 3. SUPPLEMENTARY READING.

Exercise 1. Read and translate the text.

Ownership and Financing

Entrepreneurs need to consider what form of ownership they want for their business and how the business is to be financed. There are a number of alternatives. Each alternative has strengths and weaknesses.

Forms of Ownership. A popular form of legal ownership for many new businesses is the sole proprietorship. About 70 percent of American businesses use this form of ownership. The major proprietorship are that the individual entrepreneur has total freedom over how he or she conducts the business; it's simple to start; start-up costs are low; and the proprietor's business profits are taxed as ordinary income. However, the proprietor has unlimited liability (his or her personal assets are at risk to cover business debts); it may be difficult to raise money; the business ends when the proprietor retires or dies; and there is no one else to rely on. Sears was started as a sole propri­etorship by Richard Sears.

Another form of ownership is the partnership. There are many varieties of partnerships, but in the basic kind two or more people agree to be partners in a business. The least popular form of ownership, partnerships are often used in accounting, legal, and architectural firms. They provide a larger pool of talent and money than do sole proprie­torships, are easy to form, and offer the same tax benefits as sole proprietorships. However, they offer unlimited liability; they cease to exist when the partnership is dissolved; and conflict or tension between partners is common. Richard Sears added Alvah Roebuck as a partner when his business got too big for him to manage alone.

Most large organizations use the corporation as their basis for ownership. A corporation is a legal entity created under the law and is independent of any single individual. A corporation can borrow money, enter into contracts, own property, sue, and be sued. Its owners are the people who buy its stock. On the plus side, the corporation is responsible for its own liabilities, so the owners have limited liability. There is continuity in the event of retirement or death. And corpora­tions can often borrow money easily. However, there are higher start­up costs, more regulation, and double taxation (the corporation pays taxes on its profits, and then stockholders pay taxes on their dividends). Still, the corporation is the preferred form of ownership for most large businesses. As Sears, Roebuck, and Company grew into a big business, its owners chose to incorporate.

There are also a few special forms of ownership that some entrepre­neurs adopt. Master limited partnerships and S-corporations are new forms of ownership that provide many of the advantages of corpora­tions but without double taxation. Cooperatives may be used when many small entrepreneurs band together to conduct businesses on a unified basis. Ocean Spray Cranberry, for example, is a cooperative that comprises 700 cranberry growers and 100 citrus growers.

Sources of Financing. An important issue confronting all entrepreneurs is where to get the money to open and operate the business. As we noted earlier, the entrepreneur should not rely too heavily on anticipated profits. Personal resources (savings and money borrowed from friends or family) are the most common source. Personal resources are often the most important source because they underscore and reinforce the entrepreneur's personal commitment to the venture. Many entrepre­neurs take advantage of various lending programs and assistance pro­vided by lending institutions and government agencies. Government programs are especially interested in helping women and minority entrepreneurs. Another common source of funds is venture capitalists. A venture capitalist is someone who actively seeks to invest in new businesses in return for a share of ownership or profits. The advantage of this approach is access to a large resource base with fewer restrictions than might be imposed by the government or a bank. The entrepreneur, however, must give up a share of the profits or share ownership.

Exercise 2. Translate into English.

Предпринимательское право допускает существование целого спектра форм предприятий. Во-первых, это коммерческие организации: хозяйственные товарищества, общества, производственные кооперативы, государственные и муниципальные предприятия. Коммерческими организациями признаются юридические лица, основной целью которых является получение прибыли. Во-вторых, это некоммерческие организации: фонды, общественные и религиозные организации, некоммерческие партнерства, учреждения и объединения юридических лиц. Некоммерческие организации не ставят своей целью получение прибыли. Они могут заниматься предпринимательской деятельностью и направлять прибыль на достижение основной цели.

Хозяйственные общества и товарищества являются наиболее распространенными видами коммерческих организаций, образуемые для систематического занятия предпринимательской деятельностью. Товарищества – это объединение лиц, а общества – объединения капитала. Этим обуславливаются следующие различия между ними.

Участники товарищества должны непосредственно участвовать в деятельности товарищества, тогда как в обществе достаточно просто участвовать капиталом. Участниками товарищества могут быть только юридические лица и индивидуальные предприниматели. Участниками общества могут быть любые субъекты гражданского права.

Одно и то же лицо одновременно может участвовать только в одном товариществе, но может быть участником неограниченного числа обществ. Действия полных товарищей являются действиями самого товарищества, тогда как права и обязанности для общества приобретаются действиями его органов.

Товарищество характеризуется полной имущественной ответственностью товарищей своим личным имуществом по обязательствам товарищества. Участники общества никакой имущественной ответственности не несут, кроме общества с ограниченной ответственностью. Их вклады являются собственностью общества. Следовательно, они несут только риск убытков в размере этих вкладов. Для общества установлен минимальный размер капитала, тогда как в отношении товарищества такой нормы нет.

Нормы Гражданского кодекса регулируют статус хозяйственности товарищества. В отношении общества предусматривается издание специальных законов.