VIII. Match the words with the correct definition from the list below.

Top management, staff, commercial bank, organization chart, chief executive officer, audit, hoard of directors, branch banking.

1. Committee elected by shareholders to set the bank's policy and oversee the bank's performance.

2. Most common and most unrestricted type of bank, allowed the most latitude in its services and investments.

3. Chart showing the interrelationship of positions within an organization in terms of authority and responsibility.

4. Banks that offer a full range of services from multiple locations, inclu­ding a head office and one or more branch offices.

5. Key problem in an organization who make most important decisions.

6. Inspection of the accounting records and procedures of any reporting entity by a trained accountant, for the purpose of verifying the accuracy and completeness of the records.

7. Personnel in an organization.

8. Member of staff who has ultimate management responsibility for an organization. He reports directly to a board of directors.

 

IX. Read and translate the meanings of the following terms. Translate the sentences with them.

Check - l)is (banking) ( US ) cheque; 2) is a slowing down or stopping; 3) is an inspection or examination of the condition of something; 4) is ( US ) a bill issued in a restaurant.

1.He usually uses banking cheques. 2. Public spending has been held in check. 3. All our machines are given regular checks. 4. Ask the waiter for the check.

Deposit -1 ) is a sum of money paid into a bank or savings account; 2) is a payment of part of a larger sum to be paid later, especially to prevent the goods being sold to someone else; 3) is a sum of money paid when borrowing or hiring something and given back if the item is returned undamaged.

1. He makes a regular deposit of $100per month. 2. You are advised to deposit your valuables in the hotel safe. 3. I'd like to make a deposit. 4. Time deposits include savings certificates and small certificates of deposit. 5. The U.S. Treasury also maintains deposits at the Fed, for the Fed is the government's principal bank. 6. It is necessary to pay a 10% deposit to secure the goods.

Interest rate - is the cost of borrowing money expressed as a percentage of the capital borrowed.

1. The new interest rate is 11.5%. 2. Interest rate is relation between the payment received by a lender of money and the amount of money lent, expressed as a percentage per period of time.

Guarantor - is a person who promises to be responsible for or to repay another's debt.

1. The bank will give us a loan, but we have to find a guarantor first. 2. A guarantor in respect of an overdraft granted to an infant was held not liable to the bank when the infant failed to repay the loan.

Balance - is the difference between the total of money coming into (credits) and money going out of (debits) an account; the amount needed to make these totals correspond.

1. My bank statement shows a balance of $ 150. 2. A country, like a person, also must balance its accounts. 3. The official settlements balance is the sum of the current account balance and the capital account balance.

 

X. Translate the following extract in written form:

Banks perform the widest range of functions in the economy and consequently any modem full-service banking institution should provide the widest variety of services.

Banks may be defined as firms producing and selling financial services. Their success or failure hinges on their ability to identify the financial services of public demands, produce those services efficiently, and sell them at a competitive price. The service menu (вибір послуг) of banks does not remain unchanged as new services are constantly being introduced and developed by commercial banks. Many of them offer a combination of wholesale and retail banking. The former provides large scale services (послуги, які надаються великим фірмам) to the corporate sector. The latter mainly provides smaller scale services (послуги малим фірмам і населенню) to the general public.

 

XI. Look through the excerpt and then fill the spaces with necessary words. Translate the text into Ukrainian.

organization, hoard of directors, departments, services, responsibilities, markets, offers, serve, top management.

 

If a bank is owned and controlled by a holding company; its shareholders elect a...(1) to oversee bank and nonbank firms allied with the same holding company. Selected members of this board of directors...(2) on the bank's board as well. The key problem in such an...(3) is span of control, with...(4) often knowledgeable about banking practices, but less informed about the products and...(5) offered by other subsidiary companies. Moreover, because the bank itself...(6) so many different services in both domestic and foreign...(7), serious problems may not surface for weeks or months.

 

XII. Read the text and answer the questions:

1. What are main functions of a bank?

2. How are banks usually organized?

 

BANK ORGANIZATION

The way in which a bank is organized and operates is determined by its objectives. The first and most important function of a central bank is to accept responsibility for advising the government on the making of the country's financial policy, and then to see that it is carried out. The aim of commercial banks is to earn profit. Over the years banks have developed organizational forms, or structures, designed, to perform these various roles and to supply the services their customers demand.

Banks are usually organized to follow their functions and supply the services demanded by them as efficiently as possible. Moreover, because larger banks generally play a wider range of roles and offer more services a bank's size is also a significant factor in determining how banks are organized.

The large banks possess some potential advantages over small and medium-size banks. Because the largest institutions serve many different markets with many different services, they are better diversified, both geographically and by product line, to withstand the risks of a fluctuating economy. They also possess the important advantage of being able to raise financial capital at relatively low cost and the professional expertise to focus that new capital on the most promising loans and business acquisitions.

The oldest and most common banking organizations in the United States are unit banks. They offer all of their services from one office though a small number of services (such as taking deposits or cashing checks) may be offered from limited-service facilities, such as drive-in windows, automated teller machines (ATM) and retail store point-of-sale (PCS) terminals that are linked to the bank's computer system.

 

XIII. Read and remember some English idioms useful for businessmen:

1. Bank on someone or something - to trust, to rely on; покладатися на когось або щось.

2. Break the bank - to win a lot of money; "зірвати банк", тобто виграти багато грошей.

3. A fat check/cheque - a check for a large amount of money; чек на

велику суму.

4. Give someone a blank cheque - to allow someone to spend an unlimited amount of money; "дати комусь карт-бланш", тобто надати повну свободу у витратах.

 

LESSON 10

I. Read the following words and word combination and learn their meanings by heart:

A company - компанія; liability - відповідальність; a limited liability company - компанія з обмеженою відповідальністю; unlimited liability company - компанія з необмеженою відповідальністю; a joint-stock - company - акціонерне товариство; limit - межа, рубіж, обмежувати; a holding company - холдингова компанія, компанія-засновник; a subsidiary company - дочірня (підконтрольна) компанія; a joint venture - спільне підприємство; liability - боргове зобов'язання; to subscribe - жертвувати гроші, субсидувати; debenture - дебентура, облігація, боргове зобов'язання (розписка); to transfer -передавати, переказувати; affiliate - філія, дочірнє підприємство.

 

II. Read and translate the text:

DIFFERENT COMPANIES

Company is made of a number of people united in an industrial or commercial enterprise.

There is a difference between a corporation, a sole trader and a partnership. The principle difference is that a sole trader and a partnership are not corporations but limited companies are.

A corporation is a company that is publicly registered and legally separated from its owners. It means that the corporation stays in existence even after the death of any of its owners. As a corporation, a business can buy and sell assets in its own name, make contracts (agreements), defend itself in court or be taken to court by customers, creditors or suppliers.

Each company works out its own policy. It is a selected, planned line of conduct in the light of which decisions are made and co-ordination of work achieved.

Limited Liability Company. A joint-stock company, the financial liability of whose members is limited by law.

Private Limited Company. A limited company which must not invite the public to subscribe for its shares or debentures, and does not allow its members to transfer their shares without the agreement of the other shareholders. It must have at least two but usually not more than fifty members.

Public Limited Company. A limited company which can offer its shares and debentures to the public; there is normally no limit to the right of its members to transfer their shares to other persons. There is no limit to the total number of members except that there must be at least seven. Abbreviated: P.l.с.; plc; PLC. In Britain such a company must include the words "public limited company" or the abbreviation as part of its name. In France the equivalent is Societe (S.A.); in Germany, Aktiengesellshaft (AC); in Holland, Naamlose Vennootschap (N.V.); in Italy, Societa per Azioni (S.p.A.).

Subsidiary Company. A company of which more than a half ot the share-capital is owned by another company, is called either a holding company or a parent company. The subsidiaries of the same parent or holding company are said to be affiliates.

Holding Company. In Britain, a company that has been formed for the special purpose of holding all, or more than half, the share-capital of one or more other companies called subsidiary companies. In the USA it is called a pure holding company, while an operating holding company is a company which operates a business, i.e. trading, and also holds more than half the capital of one or more other companies.

Joint-Stock Company. In Britain a form of business organisation, called a corporation in the US, which has its capital divided into many small units of stock or into shares of low face value so that they may be bought by small and large investors.

 

III. Retell the text according to the following questions:

l. What is a company? 2.What is a difference between a corporation, a sole trader, a partnership? 3.What is a corporation? 4.What can a business as a corporation do? 5.What is a company's policy? 6. What types of companies are there? 7.What is a difference between a public limited company and a private one? 8.What is a holding company?

 

IV. Learn the following groups of:

a) synonyms:

Busy - engaged - occupied; to do - to perform - to execute; to accept -to agree; company - firm - business; to offer - to suggest - to propose; total - whole; purpose - aim - goal; contract - agreement; subsidiary - affiliate.

b) antonyms:

Right - duty, to include - to exclude, to defend - to accuse, to separate -to unite - to join, to allow - to forbid, low - high, public - private.

 

V. Match the word on the left with the statement on the right:

1. Consumer _______ Funds that finance the operation of a business.

2. Charge _______ art and science of directing the business of an organization.

3. Inputs ______ Bank clerk or cashier. _ The people employed in an organization.

4. Teller _______ Prise demanded for service or goods. A person who buys goods and services for his or her own use or consumption.

5. Capital _______ Factors of production - resources used in the…

6. Management _______ process of production such as land, labour, capital.

 

VI. Translate the sentences paying attention to different functions of the Infinitive:

Their partners wanted to provide some technical assistance in deve­loping the new product. 2. To be the project leader means to control, direct and plan the activities of a number of people. 3. We are glad to receive some information about our competitor. 4. The company is to be run by a Board of Directors. 5. To investigate customers' needs Mr. Hurrell was offered to go abroad. 6. We have met to discuss how to support our rapidly growing business. 7. To cope with this task it is necessary to train and retrain the qualified personnel in the field of accounting and audit, statistics and management.

VII. Speak on the situations:

1. Would you like to own your business? Why yes or why not? If so, would you prefer to buy an existing business or start from scratch? Explain.

2. What product or service would you provide?

3. What talents, interests, skills and abilities do you have, or likely will have, which would make you successful in this business?

4. Where would you want to locate the business and for what reasons?

5. What type of business organization would you prefer? (sole proprietor­ship, partnership, corporation)? Explain your choice.