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Латыгина Базовый курс економики на англ.doc
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Business Relationship

As businesses expand they may buy shares in other companies, or join with other companies for a particular purpose. There are different relationships these companies can have with one another. A group is a number of subsidiary companies operating under one leading company known as the parent company. A subsidiary is a company that is half or wholly owned by another company (the parent company).

A holding company is one that holds all, or more than half of, the stakes in one or more subsidiaries. It is the leading company in a group.

A holding company’s relationship to its subsidiaries is that of parent company, and the subsidiaries’ relationship to each other is that of sister companies. The parent company controls its subsidiaries through its capital interests.

A conglomerate is a group consisting of a lot of different companies in different businesses run as one large company.

When two or more companies decide to work together, they form a joint venture. In such cases, the two companies involved remain separate legal entities.

A consortium is a group of companies which come together to undertake a project which any one of the members cannot carry out alone.

Exercises in Word Study

Ex.1. Form adjectives from the following verbs:

hold, subside, separate, join, relate, lead, differ, expand, operate, know, decide.

Ex.2. Give the English for:

ділові відносини, розширювати бізнес, купувати акції, об’єднуватися з іншими компаніями, провідна компанія, компанія-засновник, філія, холдингова компанія, акція, сестринська компанія, спільне підприємство, юридична особа, здійснювати проекти.

Ex.3. Match words from list A with words from list B that have a similar meaning:

A

B

consist

stock

separate

carry out

operate

holding company

hold

decide

remain

stay

parent company

different from smth. else

make up one’s mind

share

fulfil

function

be composed of

own

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

to shorten, to sell, similar, subsidiary, joint, legal, to leave.

Ex.5. Match the nouns in the left hand column with the verbs in the right hand column.

stakes

joint venture

project

subsidiary

start

form

acquire

hold

own

set up

undertake

develop

Ex.6. The words in the box frequently occur before “company”:

Find combinations that mean:

  1. the leading company of a group that holds all or more than half of the shares of the other companies and usually controls other companies;

  2. one of two or more organizations that are part of the same group;

  3. a business formed by a group of people using money provided by them all;

  4. a company of which at least half the share capital is owned by another company, called a parent or holding company;

  5. a company whose shares are recorded on the main market of a stock exchange;

  6. a company whose members are only responsible for its debts up to a limited amount

  7. a company that offers the same or better goods and services as another and therefore competes for the same customers.