1. Переведите текст и ответьте на вопросы:

WHAT IS BUSINESS?

The word Business has today a more technical definition. One definition of business is the production, distribution, and sale of goods and services for a profit.

First, production is the creation of services or the changing of materials into products. One example is the conversion of iron ore into metal car parts. Next these products need to be moved from the factory to the market-place. This is known as distribution. A car might be moved from a factory in Detroit to a car dealership in Miami.

Third is the sale of goods and services. Sale is the exchange of product or service for money. A car is sold to someone in exchange for money. Goods are products which people either need or want; for example, cars can be classified as goods. Services, on the other hand are activities which a person or group performs for another person or organization. For instance, an auto mechanic performs a service when he repairs a car. A doctor also performs a service by taking care of people when they are sick.

Business, then, is a combination of all these activities: production, distribution, and sale. However, there is one other important factor. This factor is the creation of profit or economic surplus. A major goal in the functioning of an American business company is making a profit. Profit is the money that remains after all the expenses are paid. Creating an economic surplus or profit is, therefore, a primary goal of business activity.

1. What is one modern definition of business?

2. What does production involve?

3. How do goods differ from services?

4. In addition to production, distribution and sale, what other factor is important in defining business?

5. What is profit? In general, what do companies do with their profits?

2. Сгруппируйте слова в зависимости от принадлежности к товарам или услугам:

car medical diagnosis travel agency briefcase management consultant financial planning computer videotape recorder accounting ledger

calculator employment agency suit office equipment repair newspaper delivery computer programming time clock book autorepair

3. Переведите текст и расскажите об основных формах коммерческой структуры:

Vocabulary:

sole proprietorship – единоличное владение

partnership – товарищество

corporation – корпорация

bear liabilities – нести обязательства

legal entity – юридическое лицо

stockholders – акционеры

key feature – основная черта

feasibility – осуществимость

limited liability – ограниченная ответственность

set up – создавать

service sector – сфера обслуживания

requirements – требования

negotiations – переговоры

intention – намерение

draft – составлять

BASIC FORMS OF BUSINESS ORGANISATION

All businesses are known to take one of three basic forms: the sole proprietorship, the partnership and the corporation.

A sole proprietorship is a business that is owned, and often run by one person, who receives all the profits and bears all the liabilities of the business. A partnership is a voluntary legal association of two or more people for the purpose of running a business. A corporation is a firm that exists as an independent legal entity, with ownership divided into shares. The owners of the shares are known as stockholders or shareholders.

A key feature of the corporation is the limited liability. It means that the liability of the stockholders for debts of the firm is limited to the amount of money they paid to buy shares.

A lot of joint ventures have been set up in different branches of industry and in the service sector since Russia started carrying out major economic reforms. Joint ventures play an important role in attracting foreign technology, management experience and additional material and financial resources. There are certain legal requirements for Russian and foreign participants wishing to set up a joint venture.

A joint venture must be a legal entity to have the right to conclude contracts in its name. There are several stages in the process of a joint venture creation in the Russian territory. They are negotiations on the possibility of establishing a J.V., the signing of a protocol of intentions, the drafting of a feasibility study, and the preparation of the foundation documents and at last the registration of the J.V.