Билет №1

1. What are the challenges that managers face in today's competitive world?

2. What are the advantages of a franchise?

For individual entrepreneurs, the franchise provides a less risky route to starting a business. The franchise agreement allows a businessperson to trade under the name of an established brand, backed by an established organization (the franchisor), while retaining ownership of the business. Under the agreement, the business owner (franchisee) pays fees to the franchisor organization for the right to sell its products and services. The franchisee does not have the freedom over the business that an independent owner would have, but stands a greater chance of success due to the strength of the established business formula of the brand.

Билет №2

1. Describe each of the major functions of management: planning, organizing, leading, and controlling.

2. State advantages that a public limited company has over a private limited company.

The main difference between private and public limited companies is that public limited companies have no restriction on the number of shareholders or on the freedom to buy and sell shares. Shares in plcs can be bought and sold on the stock market at any time by individual members of the public, other companies or organizations.

By selling shares to the general public as well as to other companies and organizations, plcs can raise vast amounts of capital in ways that are inaccessible to Ltds. Additional shares can be issued and sold to raise further capital. In this way, a plc can finance costly expansion, development and research programs which are often beyond the means of other types of business. For example, retail chains such as Marks and Spencer can purchase prime trading sites to increase customer base, and major companies like Unilever can spend huge amounts on research to keep its products ahead of those of its competitors.

Билет №3

1. State advantages that a public limited company has over a private limited company.

2. Compare the features of sole proprietorship and partnership.

A sole trader has a complete control over the decision making and running of the business. A sole trader can employ others to help run the business.Setting up as a sole trader can be the least expensive way of starting a business. Many sole traders start with a minimum of capital or finance. They often begin by operating from small premises, such as a shop, small workshop or office.

They have unlimited liability. Many of them take out a bank loan to help finance the start-up costs of the business. The lender will probably require the loan to be secured on the owner’s personal property

Generally a partnership has between two and twenty partners. The partners share both control of the business and its profits. Responsibility for the business is shared between the partners. This means that no single partner has to oversee the whole business, but each partner is able to concentrate on that part of the business in which he or she excels. The sources of finance available are the personal funds, profits retained and bank loans. The owners of a partnership have unlimited liability and are likely to have to use their personal property as security for any loan.