Business Organization and the Economy

Businesses may be classified according to which industry they are in: for

example, construction, oil, banking, food.

All the companies which make goods from raw materials or assemble

components into finished products work in the manufacturing sector. All the

companies which provide services in areas such as tourism, banking and

finance, communications, wholesale and retail trade work in the service sector.

Besides, a company may be owned by the state, or by the private individuals.

Privately-owned and-run companies work in the private sector. A private

enterprise is a system that allows individuals within a society to pursue their own

interest without governmental regulation or restriction.

State-owned-and-run organizations are in the public sector.

When a private company is bought by the state and brought into public sector,

it is nationalized in a process of nationalization. A nationalized company is state-

owned.

When the state returns a company to the private sector in a sell-off, it is

privatized. This is privatization. The first to be sold off in a privatization

programme are often the companies responsible for the public supply of

electricity, water and gas: the utilities.

 

EXERCISES

1. Form verbs and adjectives from the following nouns:

Nounsverbs adjectives

classification ----------------------------- ------------------------------

industry ----------------------------- -----------------------------

owner ----------------------------- -----------------------------

privatization ----------------------------- -----------------------------

regulation ----------------------------- -----------------------------

restriction ---------------------------- ------------------------------

nationalization ---------------------------- ------------------------------

responsibility ----------------------------- ------------------------------

 

 

2.Give the English for:

класифікувати, банківська справа,сировинні матеріали, готові вироби, виробничий сектор, фінанси, зв’язок, оптова та роздрібна торгівля, сектор послуг, володіти компанією, приватна особа, приватний сектор, приватне підприємство, державне регулювання, обмеження, державний сектор, націоналізація, приватизація, комунальні послуги.

Find the corresponding synonyms in the right-hand column.

own company

goods permit

enterprise possess

allow commodities

in charge of restriction

limitation responsible

 

4.Match the verbs in column A with the nouns in B:

develop business

assemble

finance industry

sell

classify components

start

privatize product

close down

supply company

pursue

nationalize interest

 

5.These words frequently occur before the word ‘sector’:

manufacturing, retail, public, insurance, service, private

sector

Find combinations that mean:

1.all the companies which assemble components into finished product or which makes goods from raw materials;

2.all the companies which provide services in areas such as tourism, wholesale and retail trade, banking and finance;

3state-owned- and –run organizations, e.g. government departments, and nationalized industries;

4.privately- owned-and-run companies;

5all the companies that provide insurance;

6. all the companies selling goods to the general public.

 

6.Match the words and phrases with the correct definition below:

Industry, raw materials, restriction, wholesale trade, nationalization, supply,

regulation, privatization, utilities, retail trade:

1. sale of goods in large amounts, and usually at lower prices, to stores and businesses;

1. organized activity producing goods and service, e.g. food, banking, tobacco;
2. a natural substance, e.g. wool, coal, used to make something in an industrial process;
3. sale of goods to the general public;
4. controlling; making sure that an organization or a service works fairly and well;
5. a limit on something;
6. one of the services supplying the public with gas, water, electricity, transport;
7. sale of a business or service owned by the government to private owners;
8. the process of bringing a company, or different companies in the same industry, under government control;
9. a system for delivering goods or services.

7. Answer the following questions:

1. What principle may businesses be classified to?

2. What companies work in the manufacturing sector?

3. What companies work in the service sector?

4. What companies work in the private/public sector?

5. What is a private enterprise?

6. When is a private company considered to be nationalized?

7. When is a company considered to be privatized?

8. What companies are the first to be sold off in a privatization programme?

 

8. What is the difference between:

a manufacturing sector- a service sector

a private sector – a public sector;

nationalization – privatization.

 

DISCUSSION

1. Which is the most interesting to work in:

a manufacturing sector, a service sector.

Choose one of the sectors and speak about the advantages and disadvantages of working there.

If you were to choose where to work, would you prefer a public sector or a private sector? Why?

Read and translate the following sentences

1. This business could be a gold mine if it were properly developed.

2. If you think Walsh will ever repay you, you are mistaken; I am afraid you’ve put your money on the wrong horse.

3. We are in deep water; we may have to sell the shop to pay our debts.

4. Peter has blued all the money you gave him on gambling and drink.

4.Comment on the proverb:

‘ In giving a man receives more than he gives.’

 

 

TEXT 3: OWNERSHIP

Vocabulary

join (v) об’єднуватися, приєднуватися

purpose мета

unlimited liability company компанія з необмеженою відповідальністю

limited liability company компанія з обмеженою відповідальністю

be liable for бути відповідальним за

debt борг; зобов’язання

assets майно, активи

sole trader/sole proprietorship одноосібна власність

partnership/general partnership товариство

private limited company (BrE)/ закрита акціонерна компанія

limited liability company (AmE)

public limited company (BrE)/ відкрита акціонерна компанія з

listed company (AmE) обмеженою відповідальністю

shareholder акціонер

share акція

wealth матеріальні цінності, багатство

offer (v) пропонувати

public громадськість

stock exchange фондова біржа

Ownership

A business is an organization of material, human, financial, and informational resources that are joined together for a specific purpose. Not all businesses are owned and organized in the same way.

In unlimited liability companies the owners are personally and entirely liable for the debts of the company. This means they may lose their personal assets (e.g., their house or their car) if the company is in financial difficulties.

In a limited liability company (Ltd.) the owners are liable only for the amount of money they have invested in the business.

Unlimited liability companies are subdivided into sole traders (BrE)/ sole proprietorship (AmE) (a type of business organization owned and run by one person) and partnerships (BrE)/ general partnerships (AmE) (a firm run by two or more partners). A lot of professional people like lawyers, accountants and so on, work in partnerships.

Limited liability companies are subdivided into private limited companies (Ltd) (BrE)/ limited liability companies (AmE) and public limited companies (PLC) (BrE)/ listed companies (AmE). A private limited company/limited liability company is a company which has shareholders (people who own the wealth of a company) but which cannot offer its shares to the public.

A public-limited company/listed company is a company whose shares can be bought and sold (publicly traded) on the stock exchange.

Notes: A public limited company is privately owned. It is not run by the state.

EXERCISES

1. Form adjectives from the following nouns:

organization -----------------------------

material -----------------------------

finance -----------------------------

information -----------------------------

specification -----------------------------

wealth -----------------------------

liability -----------------------------

owner -----------------------------

person -----------------------------

difficulty -----------------------------

 

2. Give the English for:

фінансові та інформаційні ресурси, компанія з необмеженою відповідальністю, власник, бути повністю відповідальним за борги компанії, втрачати власне майно, фінансові труднощі, компанія з обмеженою відповідальністю, одноосібна власність, товариство, закрита акціонерна компанія, відкрита акціонерна компанія з обмеженою відповідальністю, акціонер, пропонувати акції, продавати акції на фондовій біржі

.3. Match words from list A with words from list В that have a similar meaning.

В sole proprietorship listed company propose aim unite stock arrange individual

 

A

join

purpose

sole trader

public limited company

offer

organize

personal

share

 

4. Find suitable opposites to the following words and phrases:

poverty, limited liability company, to buy, to disunite, to find, public.

Find the odd word.

1. company, business, firm, corporation, office, enterprise.

2. sole proprietorship, limited liability, public limited company, partnership, private limited company.

3. owner, investor, shareholder, consumer, managing director.

 

6. Match the verbs in column A with the nouns in B.

A B

sell off debt

hold

pay back asset

buy

issue shares

run into

join partnership

form

own business

lose

 

7. These words frequently occur after ‘debt’.

debt

repayment, rescheduling, collector, crises, burden, restructuring.

Find combinations that mean:

1. a person employed to recover money owed by a person or an organization;

2. paying loans back to the lender;

3. renegotiating the form of debts;

4. renegotiating the dates that debts are to be repaid;

5. the overall amount of an organization's debt;

6. a period when a debtor is having trouble repaying their debts.