Why are companies referred to as Ltd. , inc. , gmbh, or S. A. .

 

An individual, like Henry Ford, might want to begin a small enterprise and personally retain total responsibility and liability, but once it starts to grow, a partnership or a “company” – such as Ford Motor Company – would need to be formed. The key factor in owning any company is the guarantee called limited liability: the owners of a company never have to pay more than they have invested in the company. Their liabilities are limited. When a company goes bankrupt, the owners can never be required to pay its unpaid bills.

The worst that can happen to investors in a limited liability company is losing their initial investment if the company fails. By limiting the downside risk for shareholders, companies are able to attract investors equity, and raise large amounts of funds called equity capital through sales of shares rather than by borrowing money at potentially high interest rates.

The names of companies around the world reflect this guarantee of limited liability. The abbreviations “GmbH” in Germany, “Inc.” in the United States, or “Ltd.” in most other English-speaking countries indicate that the firm is a limited liability company and investors have nothing more to lose than the money invested in their shares. The “S.A.” in French- and Spanish-speaking countries also refers to limited liability by defining shareholders as “anonymous”. Since the identity of shareholders can be kept secret, the creditors of a bankrupt company have no right to pursue them for the company’s unpaid debts.

Many countries make a clear distinction between public and private companies, with separate designations, such as AG and GmbH in Germany, or Plc and Ltd. in Britain. Generally, “public” companies are those large enough to have their shares traded on stock exchanges, while smaller unquoted companies are said to be “private”, even though their shares are held by the public at large. In some countries, a large company is said to be privately owned if its shares are not available to the general public. In the United States, where little distinction is made between public and private companies, most companies simply bear the title “Incorporated”.

 

Reading Tasks

 

Understanding main points.

1) What is implied in the notion “organization”? What are its elements?

2) How can modern societies be characterized?

3) What is meant by “organizational climate”?

4) What is implied in the notion “business entity”?

5) Enumerate the main types and forms of business organization.

6) What does the concept “limited liability” signify?

 

Understanding details. Mark true (T) and false (F) statements according to the text.

1) Organization is a social system of cooperation aimed at combining individual effort in order to achieve some goals.

2) In primitive societies there prevailed familial or tribal forms of organization.

3) The major purpose of all organizations in the modern society is earning a profit.

4) The easiest way to start one’s own business is to buy shares of a corporation.

5) If the corporation fails, the owners are responsible for all debts of the business.

6) By limiting the risk for partners, partnerships are able to attract investors.

7) In a corporation the identity of shareholders can be kept secret.

8) The shares of public companies are usually traded on stock exchanges.

9) Business entity is a form of business organization.

10) Organizations usually create their specific culture and regard it as a powerful strategic tool.

 

Vocabulary Tasks.

 

Suggest the Russian equivalents.

individual efforts fell short of success, only limited goals could be attained,

bring greater benefits to all concerned, transform resources into outputs,

special-purpose organizations, somewhat nebulous, a peculiar mix of values,

mobilize employee initiative, regard it is a powerful strategic tool, local license, personally retain total responsibility and liability, their liability are limited,

losing their initial investment if the company fails, borrowing money at potentially high interest rates, investors have nothing more to lose than the money invested in their shares, the identity of shareholders, to have shares traded on stock exchanges,

smaller unquoted companies, be held by the public at large.

 

Fill in the gaps with the words and expressions from the text.

1) Group activity could be _____ some higher, more _____ set of goals and could thus bring _____.

2) Unlike so-called primitive societies, modern ones produce most of their goods and services through _____ that are, in the main, neither _____ nor _____.

3) Organizations _____ to have their specific culture: peculiar mix of _____.

4) Business entities can be _____ according to the type of _____ they _____.

5) Service companies perform _____. This group includes companies such as _____ and many others.

6) Merchandising companies _____ goods that are ready for _____ and _____ them to the customers. They include such companies as _____.

7) The business _____ concept _____ to all forms of business-single proprietorship, _____ and _____.

8) In a single _____, the owner is responsible for all debts of the business.

9) Partnerships are created _____.

10) The owners of the corporation are called _____ or, _____. They buy _____.

Match each term with the definition.

 

1) An organization which produces and sells goods, or which provides a service.	a) single proprietorship
2) Process by which investment, output and employment in an economy tend to fluctuate up and down in a regular pattern causing boom and depression (with recession and recovery as intermediate stages).	b) organizational climate
3) The value of the assets owned by an individual or a group of individuals.	c) organizer
4) The person who makes all the arrangements for something and makes sure that it happens as planned.	d) business
5) The overall favorability of member attitudes and perceptions with reference to specific activities and features of an organization.	e) business cycle
6) Any business organization that exits as an economic unit.	f) manufacturing companies
7) Business owned by an individual and often managed by this individual.	g) wealth
8) Companies buying materials, converting them into products and them selling the products to the companies or to the final customer.	h) business entity

 

 

Act as an interpreter for Parts A and B.

 

Part B	Part A
1. Предмет нашей беседы сегодня – основные принципы организации бизнеса в современной экономике. Наш гость, проф. Дженкинс из Университета Монреаля, любезно согласился ответить на некоторые вопросы, касающиеся типов и форм организации бизнеса. Итак, по каким принципам экономисты делят организации на группы?	I am going to be speaking about…     Don’t hesitate to interrupt if you have questions.
2. Давайте более подробно остановимся на деятельности корпораций. Правильно ли я понимаю, что именно принцип ограниченной ответственности дает корпорации возможность успешно функционировать и привлекать акционерный капитал?	There’s no denying the fact that…     To clarify the notion, I’d like…
3. А теперь, если вы не возражаете, давайте перейдем к таким понятиям, как «частная» и «публичная» компания. Что понимается под этими понятиями?	Let’s go into this in more detail.
4. Профессор, мы бы хотели поблагодарить Вас за содержательные объяснения и пожелать Вам дальнейших успехов.	I hope you have found this useful.

Translate into English.

1) Ещё на заре своего существования люди обнаружили, что зачастую они не способны выполнять задания, требующие не только индивидуальных усилий, в то время как групповая деятельность может быть направлена на достижение более высоких, более сложных целей.

2) Организации были созданы для того, чтобы помочь индивиду достичь большего.

3) В современном обществе люди зависят от множества организаций, от того, насколько эффективно они функционируют. Но и организации, в свою очередь, зависят от способностей, усилий и таланта, которые вкладывают люди, работающие в этих организациях.

4) Целью многих организаций, функционирующих в современной экономике, является получение прибыли. Но существуют и так называемые «некоммерческие» организации, такие как, например, культурные, благотворительные компании.

5) Организации могут быть сгруппированы по типу деловой активности. В этом случае они подразделяются на предприятия сферы обслуживания, торговые компании, производственные компании.

6) Корпорация – это компания, владельцами которой могут являться от нескольких до нескольких тысяч физических лиц. Приобретая часть капитала корпорации в виде акции, человек становится акционером, т.е. одним из владельцев компании, В случае банкротства компании акционеры рискуют только средствами, вложенными в покупку акций. Этот принцип и носит название «ограниченная ответственность».

7) В некоторых странах компания считается находящейся в частной собственности в том случае, если ее акции не могут быть приобретены «широкой публикой».

Over to you

Questions for discussion

1. Give examples of your own of different types of companies. Refer to external sources for information.

2. What formal and informal organizations do you know?

3. “Informal groups develop in order to meet a variety of individual needs which are not met by the formal organization”. Do you share the opinion? Support your view.

Section B.

Applying for a job.

Vocabulary Notes

 

1. to hire smb. for a post/position – нанимать на должность

2. to work full time (part time) – работать полный день

3. trustworthy (adj.) – внушающий доверие

4. outgoing (adj.) – инициативный

5. to handle criticism – принимать критику

6. to be qualified for a job – по специальности

7. to apply in person – подавать заявление лично

8. to submit a resume (CV, application letter) – представить резюме

9. a reference – (зд.) рекомендация

10. to assist smb. in doing smth. – помочь кому-либо в чем-либо

Reading Tasks

Understanding main points.

1) What can help one in finding a suitable job?

2) What qualities are absolutely necessary for any employee?

3) How does a person find a job he/she interested in?

4) Why is the role of a resume so important?

5) What is an application form?