Word power

I. Give English equivalents for the following words and phrases from the text.

Акционерная компания; делить прибыли и убытки; торговая экспансия; компания, учрежденная специальным законом; быть подверженным ограничениям; обращаться к общественности; быть свободным от; добывать деньги; акционер; вести дело; без согласия; выпускать облигации; имущественные права; акционерная компания с ограниченной ответственностью; открытая акционерная компания.

II. Match synonyms in columns A and B.

A. B.

to appear to form

to guide to adopt an Act

to grant to protect

to contribute in accordance with

to pass an Act to come into existence

resignation to limit

to set up to control

unification to give

to defend free

in compliance with to invest

exempt association

to restrict retirement

Grammar Revision

Change the sentences, using modal verbs with the passive form of infinitive.

Model: We can set up a joint stock company in one of the three ways. – A joint stock company can be set up in one of the three ways.

1. The government can grant a company some privileges. – Some privileges …

2. The government must protect customers from monopolies. – The customers …

3. A private limited company must send a statement to the Registrar. – A statement …

4. A shareholder can not transfer shares freely. – Shares …

5. A public limited company must carry out business on the basis of the Articles of Association. – Business …

6. The registration of one of the investor can not cause the liquidation of the company. – The liquidation of the company …

7. The shareholders can use the initial capital to launch manufacturing activities. – The initial capital …

8. The shareholders can realize property rights in case of liquidation. – Property rights …

9. Large majority is to take the decisions. – The decisions …

Quick Reading

Read the following text quickly (5min) and answer the questions.

1. What are the two types of capital?

2. What are they necessary for?

3. How can capital, both working and fixed, be raised?

Capital for a business

In order to employ factors of production a firm has to have finance.

This is usually divided into working capital and fixed capital. Working capital is for purchasing single – use factors or “variable factor”. They are labour, raw materials, petrol, stationery, fertilizers, etc. Finance for working capital can be obtained from a variety of sources: banks, trade, credit, finance companies, tax reserves, inter – company finance, advance deposits from customers and the government.

Fixed capital covers factors which are used many times – factories, machines, land, lorries, etc. Some finance for fixed capital is therefore required initially for advance payments on factory buildings, machinery and so on before the firm starts to earn revenues. It is also possible to convert fixed capital into working capital by renting buildings, hiring plant and vehicles or by leasing or buying on deferred payments through a finance company.

Thus many companies, especially new ones, raise capital, both working and fixed, by borrowing, by selling their shares.

Talking Point

Make a detailed plan of the text ”Joint Stock Companies” focusing on strong and weak points of different types of companies. Sum up the information using your plan.

Text 3

Pre-reading task

a) Discuss the following questions before reading the text.

1. What associations do you have when you hear the word “partner”? Have you ever been smb’s partner? What did you do together?

2. Do you think that the words “company” and “partnership” mean the same? If not, what is the difference?

b) Key words: partner, partnership, responsibility, proportion, obligation, liable, securities.

Look up the key words in the dictionary to find out the exact meaning. Write them out.