Task 1. Find the equivalents.

entrepreneur proprietorship sole trader retailing associated company parent company subsidiary company entity assets debts losses

A - убытки B – розничная торговля C - предприятие D - предприниматель E – компания, владеющая контрольным пакетом акций F - предпринимательство G - активы H – единоличный владелец I - филиал J - долги K – дочерняя компания

 

Task 2. Complete the sentences.

individual proprietorship is … partnership can … public company can … private company can.. corporation is …

a- be formed with a minimum of two shareholders b- the simplest way of beginning business c- sell shares through a stock exchange d- be set up by two or more people e- a business organization authorized by the state to conduct business

Task 3. Fill in the gaps with the suitable words.

 

manager top manager employee state employee

 

1. … is responsible for everything.
2. … works for the state.
3. … is a person who manages people.
4. … is a person who works for someone else.

 

Task 4. Answer the questions.

1. What is business?
2. What are the forms of business organization?
3. What is individual proprietorship (sole trader)?
4. What are the advantages and drawbacks of small business?
5. What is a partnership?
6. What is a company formed for?
7. What are the main differences between public and private companies?
8. What are the other types of companies?
9. What is a corporation?
10. What are the main types of companies in the UK and USA?

Ex. 6. Read and translate texts I and II about the main forms of businesses in the UK and the USA. Compare them with organization of businesses in Russia.

I. Types of Businesses in the UK

 

Most businesses in the United Kingdom operate in one of the following ways: sole trader, partnership, limited and Liability Company, branch of a foreign company.

The sole trader is the oldest form of business. There are many one-man owners, for example: a farmer, doctor, solicitor, estate agent, garage man, jobber, builder, hairdresser etc.

The partnership is a firm where there are a few partners. They are firms of solicitors, architects, auditors, management consultants etc. The names of all the partners of the firm are printed on the stationery (бланки, канцелярские принадлежности) of a partnership.

The most common type of company in the UK is the limited liability company. At the name of such company the word Ltd. is used. For example: Wilson and Son Ltd.

Many of such companies are joint-stock companies owned by shareholders.

Limited liability companies are divided into public and private ones. Only public companies may offer shares to the public at the stock exchange. The names of such companies end in p.l.c. which stands for public limited company. For instance: John and Michael p.l.c.

Private limited companies may not offer shares to the public. The names of such companies end simply in Ltd.

A branch of a foreign company is a part of a company incorporated outside Great Britain but acting under the law of the UK. Usually these companies act in the UK under their normal foreign names.

 

Notes:

1. liability – ответственность

2. solicitor – адвокат

3. estate – недвижимое имущество

4. jobber – маклер

5. stationary – канцелярские бланки

6. joint stock company – акционерная компания

7. stock exchange - фондовая биржа

 

Answer the questions:

1. What is the most common type of company in the UK?

2. Are all limited liability companies join-stock companies?

3. To what sector of economy do all these companies and sole traders belong?

4. What two other sectors of economy does the figure show?

5. What can you say about the types of the following companies:

- Fine Furniture Ltd.

- General Foods p.l.c?

 

 

II. Forms of Businesses in the USA

Businesses in the USA may be organized as one of the following forms:

- individual business

- general partnership

- limited partnership

- corporation

- alien corporation

An individual business is owned by one person.

A general partnership has got several owners. They all are liable for debts and they share in the profit.

A limited partnership has got at least one general owner and one or more other owners. They have only limited investment and a limited liability.

A corporation is owned by persons, called stockholders. The stockholders usually have certificates showing the number of shares which they own. The stockholders elect a director or directors to operate the corporation. Most corporations are closed corporations, with only a few stockholders. Other corporations are owned by many stockholders who buy and sell their shares at will. Usually they have little interest in management of the corporations.

Alien corporations are corporations of foreign countries.

All the corporations are to receive their charters from the state authorities. The charters state all the powers of the corporation. Many corporations try to receive their charters from the authorities of the state of Delaware, though they operate in other states. They prefer the state of Delaware because the laws are liberal there and the taxation is rather low. Such corporations which receive their charters from an outside state are called foreign corporations.

All the corporations require a certificate to do business in the state where they prefer to operate.

Notes:

1. alien - иностранный

2. at will - по желанию

3. charter - документ, содержащий согласие государственного органа на создание корпорации

4. corporation - акционерное общество с ограниченной ответственностью (в США)

Answer the questions:

1. What are the main forms of business organization in the USA?

2. What is the difference between individual business and general partnership?

3. Whom is the corporation owned by?

4. Whom are the stockholders to elect?

5. How do shareholders buy and sell shares?

6. What are alien corporations?

Ex. 7. Read the text and speak about company organization in Britain. Use the following

expressions:

- is responsible for

- is in charge of

- takes care of

- reports to

- elects

- appoints

- is supported by

Company Organization in Britain

The organizational structure of a British company is as follows: the Managing Director is responsible for running the whole company, and is accountable to the Board. He is assisted by four executive departments. These are: Human Resources (Personnel) department, Management Services department, Finance department, Research & Development department (R&D).

Human Resources Dpt. is responsible for personnel, training and management development.

Finance Dpt. takes care of corporate finance and accounting.

Management Services Dpt. is in charge of rationalization throughout the company.

R&D Dpt. is responsible for new product development. Under the Managing Director there are five Regional Managers; each of them is responsible for the day-to-day management of a territory (North, South-East, West and Central Regions). The five regions are supported by two sections - Marketing and Technical Services. In addition to the parent there are several subsidiaries. The subsidiaries report to the Export Sales department, which in turn is accountable to the Board.

Export and Sales Dpt. is responsible for selling the company’s product.

Technological Dpt. is responsible for the mode of production and elaborating new technologies.

Marketing Dpt. is in charge of marketing activities of the company.

Production Dpt. is responsible for all the aspects of production.

Promotion Dpt. is in charge of advertising activities.

Commercial Dpt. is responsible for trading activities of the company.

Board of Directors

Board of Directors performs three main functions: appoints the administration, considers general policy questions, makes corporate decisions and exercises control over the activities of the administration. It also sees to it that the enterprise (business) can yield profits that shareholders can get high income on their stocks, and it must also analyze its own activities.

Assembly of Shareholders

The highest managerial organ of a Stock Company is the Assembly of shareholders which elects the Board of Directors, and the latter elect their supreme governor.