Describe the company structure. Read and answer the questions.

 

1. What is the aim of any business?

 

2. How does a company make profit?

 

3. Who is at the top of the company hierarchy?

 

4. What authority does the Board have?

5. What is the most important member of the Board?

 

6. What is the Chief Executive Officer responsible for?

 

7. What are the roles played by shareholders in the company?

 

8. Who runs the company?

 

9. Is the company a separate legal entity?

 

10. What departments might any company include?

 

11. What is a production department responsible for?

 

12. What is HR department responsible for?

 

13. What is a sales department responsible for?

 

14. What is a research and development department responsible for?

 

15. Who is at the top of each department?

 

16. Can you define the expression “reporting in organisations takes place down the line”?

 

17. What is the difference between a private and a public company?

 

18. What does Ltd stand for?

 

READING TEXT 2.

17. Read the text and match the headings (a-d) with the gaps at the start of each paragraph.

a) Partnership

 

b) Corporation

 

c) Sole owner/proprietor (AmE)/sole trader (BE)

 

d) A limited liability company (LLC)

 

Different Types of Companies

 

It is one of the most simplest and uncomplicated of all companies. Your business is built around you. The entire operation relies on you, but you can still employ others to help you. You’re 100% responsible for your business’s liabilities and its debts, but you also retain full control of the business and its profits.

The features of this business organization are:

 

· Does not require to spend a lot of money to establish a business.

 

· The dissolution procedure is very easy, simple and quick.

 

· Any liabilities in business are the proprietor's personal liabilities.

· Whenever the owner dies, the business organization also automatically stops existing.

 

· The owner has unlimited liability in the organization.

 

· You even pay tax through your personal IRD (Inland Revenue Department) number.

 

This form of a business structure is useful for people who have an expertise in a certain field and want to make money by applying that knowledge. There is no need to consult other people in the organization before taking any decision and also employees have no stock options. However, when it comes to taxation and other financial aspects, there is no difference between the proprietor's personal life and business, as it is regarded one and the same by the government. It is therefore important to have a good knowledge about these obligations, before deciding to start a business.

Example: Individual tradesperson, such as a self-employed graphic designer, a painter and decorator.

 

 

It is an association of two or more persons as co-owners to carry on a business for profit. All these members are known as partners and owners of the entire business organization. They are accountable for any profit, loss or liability of the organization. An important feature of this type of company is that all partners enter into a predefined agreement regarding profit sharing and loss bearing, before starting their venture. Irrespective of the capital brought in or the profit-loss sharing percentage of a partner, he can be asked to pay off total debts of the company, as the partners have a joint as well as several liability in the organization. Features are:

· Simple, easy and quick to form.

 

· The whole taxation policy and obligations are a little more complex, but there is no specific

 

tax.

 

· Every partner is jointly and individually liable to the entire firm.

 

Dissolution of the firm takes place when a partner turns bankrupt, dies or through a mutual

 

decision between the partners.

 

 

It is extremely flexible, and can be used for a very wide range of businesses. It can be as simple or complex as the members desire. Depending on State law, it can have some members with limited liability and some without limited liability, or even have no limited liability for any members. Some States require that it designates a date in the future at which it will automatically dissolve. Some States also require that if a member dies, goes bankrupt or meets some other calamity the remaining members of the company must either dissolve or vote to continue.

It does not have more than two of the four qualities: limited liability concerning assets; continuity of life; centralization of management; the ability to transfer ownership interests.

 

It is a legal entity owned by shareholders but completely separate from them. This means that the company itself, not the shareholders that own it, is held legally liable for the actions and debts incurred by the business. It also means that shareholders have no direct rights to the money or any other assets of it. If the directors choose to give the shareholders dividends, that’s great. Otherwise, shareholders get nothing until they sell their shares.

 

The shareholders elect one or more people to serve on the board of directors. In turn, the Board of Directors govern it and set its policies, approve major business decisions, and appoint officers who are the only ones with authority to sign contracts and run a business on a day to day basis.

 

This type of business is more structured than others. “Going public” through an initial public offering (IPO) is a major selling point in attracting investment capital and high quality employees. The companies can also issue stock options as a way to recruit and reward management, staff and investors.

(по материалам сайта http://www.buzzle.com)

 

18. Match the English phrases from text 2 with their Russian equivalents.

 

1) to appoint an officer a) прекращение деятельности компании

 

2) to designate a date b) выплачивать дивиденды, прибыль по акциям

 

3) to go bankrupt c) опцион на акции; поощрение служащих продажей акций

4) dissolution d) назначить должностное лицо

 

5) Inland Revenue Department e) применять знания

 

6) to sign a contract f) погашать задолженность

 

7) to pay off debts g) платить налог

 

8) to retain control h) первое открытое размещение акций

 

9) stock options i) налоговая инспекция

 

10) to give dividends j) сохранять контроль

 

11) to pay a tax k) подписывать контракт/договор

 

12) initial public offering l) назначить дату

 

13) to apply knowledge m) обанкротиться

 

19. Read the text again and answer the following questions.

 

1. Who retains full control of the business if you are a proprietor?

2. What department does a proprietor pay taxes through?

 

3. What are the ways to apply your knowledge?

 

4. Do you have to pay taxes unless you are 18?

 

5. When does the partnership dissolve?

 

6. Who pays off total debts of the partnership?

 

7. Does a limited liability company have to designate a date at which it will automatically dissolve?

8. Do shareholders sign contracts?

 

9. Do shareholders receive dividends?

 

10. How does a corporation attract investment capital and high quality employees? 11.Which type of business is less complicated to start?

12. What type of business would you like to work for?

 

13. What type of a business would you start?

 

SPEAKING