Major Responsibilities of Board of Directors

1. Determine the Organization’s Mission and Purpose

2. Select the Executive

3. Support the Executive and Review His or Her Performance

4. Ensure Effective Organizational Planning

5. Ensure Adequate Resources

6. Manage Resources Effectively

7. Determine and Monitor the Organization’s Programs and Services

8. Enhance the Organization’s Public Image

9. Assess Organization’s Performance

 

4. Answer the questions:

1. What are the responsibilities of a board of directors in a corporation? Name them.

2. What are the major duties of a Board of Directors?

3. What can we call an effective board of directors?

TEXT B

 

Find Russian equivalents for the following English phrases

Independently owned and operated, not dominant in its field, size standards vary, the most workable concept, a small part of the overall industry, technical geniuses, striving to produce and market scientific innovation, to transform an idea into commercial reality, provide a product or service more cheaply than large firms, to earn a profit on a lower price than a large company can offer.

 

Match the words with their definitions

1. competitor	a) having primary control, authority, or influence
2. marketplace	b) of a kind never before existing
3. overhead costs	c)
4. large-scale	d)
5. new concept	e) the commercial world of buying and selling
6. dominant	f) a person, group, team, firm, etc., that vies or competes; rival

 

Read the text

What is a Small Business? [51]

Small business is independently owned and operated. It is not dominant in its field, and meets a variety of size standards. These size standards vary. Some standards apply only for various special programs. In general, a small business has the following characteristics:

­ Independently owned

­ Independently operated and managed

­ Only a minor factor in its industry

­ Fewer than 400 employees

­ Limited capital resources

Small business is found in nearly every industry in the United States. They often compete against some of the nation’s largest organizations as well as against a multitude of other small companies. Retailing and service establishments are the most common small businesses. Also new technology companies often start as small organizations.

For the most part farming is still small business. The family farm is a classical example of small business operation.

Small businesses are not simply smaller versions of large corporations. Their legal organization, market position, staff capability, managerial style and organization, and financial resources generally differ from a bigger company which give them some unique advantages over large-scale competitors. Innovative behavior, lower costs and the filling of isolated market niches are some of the most important of these advantages.

Small firms are often the companies who first offer innovations, new concepts, and new products in the marketplace. Federal Express and Apple Computer are examples of success stories. In fact, it is estimated that the formation of small high-technology firms doubled in recent years.

Small firms can often provide a product or service more cheaply than large firms. They usually have fewer overhead costs – those not directly related to providing the goods and services – than to the large firms. Thus, they may be able to earn profit on a lower price than a large company can offer.

Small businesses have organizations with small staffs and fewer support personnel. The lower overhead costs resulting from fewer permanent staff people can provide a distinct advantage to small business.

Big businesses are excluded from some commercial activities because of their size. High overhead costs force them to set minimum targets at which to direct their competitive efforts. This situation allows substantial opportunities for smaller publishers with lower overhead costs.

In addition, certain types of businesses lend themselves better to smaller firms. Many services illustrate this point. Finally, economic and organizational factors may dedicate that an industry consists of small firms.

Smaller firms have a variety of disadvantages. These include poor management, inadequate financing, and government regulation.

Hundreds of thousands of small businesses are begun each year. Thirty percent fail within the first year, and half within two years. For every 15 small businesses that open their doors, 10 close for voluntary or financial reasons. A great many of these failures can be attributed to poor management. Most people who start small businesses are ill-prepared as managers.

 

Answer the questions

 

1. What is the most workable concept of small business?

2. What basic characteristics must a small business have?

3. What industries are usually found in the small businesses in the United States?

4. Is farming still a small business?

5. Can small businesses be called smaller versions of large corporations?

6. What are the advantages of small business?

7. What are the disadvantages of small business?

 

Stop and Check 5

Do the tasks below. There are two points for each correct answer.

Rewrite the sentences in the Passive.

1. I bought potatoes yesterday.

2. We will bring the books tomorrow.

3. They are repairing the clock now.

4. They sell milk in this shop.

5. I have trans­lated the whole text.

6. They broke the window last week.

7. When I came home, they had eaten the sweets.

8. We will do the work in the evening.

9. He wrote this book in the 19th century.

10. They were playing tennis from four till five.

Choose the right variant

11. The headquarters.... by thee end of the year.

a) will have been reconstructed

b) will be reconstructed

c) is being reconstructed

12. This is a large conference hall. Many meetings..... here.

a) are held

b) are being held

c) has been held

13. The office..... later.

a) will be cleaned

b) has been cleaned

c) will clean
14. The annual report..... a week ago.

a) was published

b) published

c) has published

15. Not much..... about the accident since that time.

a) has been said

b) said

c) has said

Choose the most appropriate word to be used in each sentence.

16. Put your money in a savings account, so it will ………………….

a) make a profit b) earn money c) invest money

17. A…….. is a legal agreement between two people or companies.

a) contract b)flight c) reduction

18. Large British companies generally have a ………… of the board of directors.

a) chairman b) manager c) superman

19. The owners of corporation are its ……………………….

a) shareholders b) employers c) applicants

20. Bic’s …………………….. was a combination of simplicity of production and reliability.

a) winning formula b) success c) failure

21. In every organization components have the same fundamental ……………..

a) purpose b) profit c) manager

22. In a………………….., two or more people share ownership of a single business.

a)partnership b) sole proprietorship c) corporation

23. Understanding …………….. is an often neglected skill among managers, but it is a vital one.

a) financial performance b) assets c) machines

24. He……………………..the rights to produce and sell the pen with Biro.

a) negotiated b) competed c) damaged

25. Retailing and service ………………are the most common small businesses

a) establishments b) offices c) corporations

4. Fill in the missing letters to answer the questions. What do we call a department in a company:

26.. …..that keeps a record of the money coming in and going out? ________________

27.. ….. that concerned with studying new ideas and planning new products? ______________

28.. ……involved with managing and organizing its work? __________________

29. ……that deals with selling and promoting its products? _________________

30. …… that deals with employees, keeps their records and helps with any problems they might have? _________________

31. ………. that manufactures the products? ________________

32. ……. that looks after customers’ problems and complaints? __________________

33. …….that deals with taxation, investment, and cash management? _______________

Read the text and decide which statements are true.

Ford: the road to recovery

Although Ford has made operating profits of over $7 billion in its American market this year, the story in Europe has been very different. Its market share has fallen from 12% six years ago to only 9% now. The truth is that rivals like Volkswagen and Renault have performed much better over recent years. They have cut costs and have launched exciting and highly successful new models. In contrast, Ford has withdrawn its large saloon, the Scorpio, which was not selling well. But Ford has had a lot more success at the higher end of the market. Over the last few years it has spent a lot of money buying brands such as Jaguar, Aston Martin and Land Rover, and these models have much higher profit margins. It has taken some time to sort out the problems at Jaguar in particular, but it’s now a successful part of the business.

 

34. Ford’s story in Europe has been very successful. True_____ False______

35. Volkswagen and Renault have higher market share than Ford. True_____ False______

36. The Scorpio has not brought much profit to Ford. True_____ False______

37. Jaguar, Aston and Land Rover bring a lot of money to Ford. True_____ False______

38. Jaguar has always been a successful part of the business. True_____ False______