Read and translate the following sentences. Make them active, adding a subject if necessary.

1. The sole proprietor­ship is owned by one person.

2. In case of breach of contract the business property and personal assets of the owner may be taken to pay judgments for dam­ages awarded by courts.

3. No charter and permit are needed.

4. Sole proprietors are often limited to using funds from personal savings.

5. Employees are motivated by the opportunity to own a part of the business.

6. Many sole proprietorships are conducted out of the owner's home, garage, or van.

7. Inventory may be limited and may of­ten be purchased on credit.

 

Read and translate. Make the following sentences passive.

1. Many small businesses start out as sole proprietorships.

2. The owner keeps all the profits of the business.

3. Sole proprietors own all the assets of the business and the profits gener­ated by it.

4. Sole proprietor, and within the law, may make any decisions.

5. Sole proprietors receive all income from the business to keep or reinvest.

6. The business is easy to dissolve.

 

Fill in the appropriate words given below. Translate.

Sole proprietorship, employer identification number, seizing, breach of contract, insurance, limited liability corporation, personal Social Security number, liability, business, employees, ends, the Internal Revenue Service, incorporation

A … is the easiest form of … to begin by a single individual.Rules for sole proprietorships do not permit …. Because the business is unincorporated and also is not a..., the personal assets of the sole proprietor and the business assets are one and the same for … purposes. Adequate … or other protection is important because claims against the business could result in … of a home. Another remedy for … can be "damages" or compensation of money.Sole proprietors must file various tax forms with … and pay any taxes due. The sole proprietor does not file taxes under an … like other businesses do but rather under his ….Death is an area where a sole proprietorship may be problematic. By definition, a sole proprietorship … with the proprietor's death.The business is sold to a new owner or is reorganized into another form, such as ….

 

Translate the following text into English.

Индивидуальное предприятие – наиболее простая форма ведения бизнеса в США. Под данной формой, как правило, подразумевается именно предприятие одного владельца. Основной недостаток этой формы предприятия – неограниченная ответственность учредителя, который отвечает за долги предприятия всем своим имуществом. Компания налогами не облагается. Налоги уплачивает учредитель согласно действующим ставкам. Все доходы индивидуального предприятия автоматически считаются доходами его владельца. В случае смерти или недееспособности владельца происходит автоматическое закрытие компании.

 

MARKETING

PRACTICAL LESSON5. COSTS, ADVERTISEMENT.

A. Preliminary discussion

1. How can you define production?

2. What is the ultimate aim of production?

3. What are factors of production? Can you name some of them?

B. Pre-reading exercises

B.l. Skim the text and give its key idea.

B.2. Scan the text for the following information.

1. What difficult task does any producer face?

2. How many stages of production are mentioned in the text?

3. What is the key concept of Diminishing Returns?

C. Reading

C.l. Read the text and answer the questions.

1. How can you formulate the Law of Variable Proportions?

2. In what way is the output of final product affected by adding more

units of production?

3. How does total cost of production differ from marginal cost?

4. Where is marginal analysis used?

Production and Costs

Garry Clayton

Whether they are film producers of multimillion-dollar epics or smallfirms that market a single product, suppliers face a difficult task. Producingan economic good or service requires a combination of land, labour, capi tal, and entrepreneurs. The theoryof production deals with the relationshipbetween the factors of productionand the output ofgoods andservices.

The theory of production is generallybased on the short run, aperiod of production that allowsproducers to change only the amountof the variable input called labour.This contrasts with the longun, a period of production long enough for producers to adjust the quantitiesof all their resources, including capital.

The Law of Variable Proportions state that, in the short run, output willchange as one input is varied while the others are held constant.The Law of Variable Proportions deals with the relationship betweenthe input of productive resources and the output of productive resourcesand the output of final products. The law helps answer the question: Howis the output of the final product affected as more units of one variableinput or resource are added to fixed amount of other resources? Of course,it is possible to vary all the inputs at the same time. Economists do not liketo do this, however, because when more than one factor of production isvaried, it becomes harder to gauge the impact of a single variable on totaloutput.

When it comes to determining the optimal number of variable units tobe used in production, changes in marginal product are of special interest.

There are three stages of production — increasing returns, diminishing returns,and negative returns — that are based on the way marginal productchanges as the variable input of labour is changed.In stage one, the first workers hired cannot work efficiently because thereare too many resources per worker. As the number of workers increases,they make better use of their machinery and resources. This results in increasingreturns (or increasing marginal products) for the first five workershired. As long as each new worker hired contributes more to total outputthan the worker before, total output rises at an increasingly faster rate.

This stage is known as the stage of increasing returns.In stage two, the total production keeps growing, by smaller and smalleramount. This stage illustrates the principle of diminishing returns, the stagewhere output increases at a diminishing rate as more units of variableinpuj: are added.The third stage of production begins when the eleventh worker is added.

By this time, the firm has hired too many workers, and they are startingto get in each other's way. Marginal product becomes negative andtotal plant output decreases.