Revision of Chapter 1 Test Put the verbs in brackets in the correct form

1. The European Commission will be interested in (to reduce) taxes.

2. People have to choose the economical way of living provided the

economic situation in the country (to be) unfavourable.

3. One of the important tasks of a firm is to obtain the maximum amount of a

commodity (to use) any given quantity of input.

4. Some branches of economy such as agriculture greatly (to depend on) climate.

5. It is known that the same consumers (to prefer) to buy less goods but of higher quality.

6. The goods price (not to vary) greatly within a particular market as all sellers (to impose) practically the same prices.

7. In planned economies government intervention (to result in) total control over resources allocation and output consumption.

8. Different sweets and chocolates (to know) as substitute goods for sugar.

9. Mixed type of economy with a rather high degree of government inter­vention is characteristic of some (to develop) countries such as the USA, Canada, Japan, etc.

10. On private farm land, buildings and all the profits (to earn) are (to own) by the farmer.

11. In order to develop the small-firm sector of the economy, the British government (to help) new firms with initial development problems and (to provide) financial help to small firms.

12. (To employ) workers as well as those unemployed (to make up) labour force.

13. Every day money (to transfer) from one bank to another in thousands of cities.

14. Expensive goods are heavily (to tax) for the purpose of (to raise) money for poorer con­sumers.

15. Efficiency (to be) the relationship between factor inputs and outputs of goods and services.

16. The contribution (to make) to the GDP by the various sectors of the economy can (to consider) in a variety of ways.

17. The tenant (to find) himself to be at a disadvantage.

18. Chemical industry (to manufacture) fertilizers for (to farm).

19. Land (to find) to be as a whole used for farming near big cities.

20. Land property can be both (to lease) and (to purchase).

21. Various economic mechanisms may be (to employ) to allocate resources.

22. The government (to expect) aggregate demand (to increase) due

to cuts in taxes.

23. It is hard (to determine) the eventual results of a decrease in the popula­tion size.

24. High taxes (to levy) on expensive goods for the purpose of (to raise) money for the poor.

25. Economists (to believe) land taxation (to have) some advantages as well as disadvantages.

26. In some industrial countries producers don't (to rely on) the government regulation and make all decisions themselves.

27. The money a producer (to earn) should (to compensate) for all his expenses and leave him with some profit.

28. Restrictions, as well as regulations in the economy (to be) the main characteristics of a command economy.

29. (To increase) output by one unit we shall have the change in the total cost known as marginal cost.

30. The quantity of goods (to consume) by an individual is restricted by the total quantity of money he (to earn).

31. The producers have to increase the total output as the demand (to grow).

32. (To solve) the problem of choice, a consumer (to want) to satisfy his demands as much as possible.

33. As consumer demand (not to be) constant at different markets, the goods prices (to vary) as well.

34. The development of national economy (to be based) on the laws and principles which are of special interest to economics (to belong) to a group of social sci­ences.

35. One of the producer's tasks is (to choose) the level of output that (to maxi­mize) his total economic profit .

36. People's demands, as well as their ability to produce goods and services (not to be) constant.

37. The theory of supply (to show) that an increase in production cost (to result in) output level.

38. Profit (to calculate) in terms of revenue and costs. The latter (to include) all expenses for (to produce) a good.

39. The demand for normal goods always rises with the increase in consumer incomes.

40. The increase in quantity (to demand) is followed by an increase in quantity (to supply).

41. The purpose of the Department of Employment in the UK is the efficient use of labour resources by (to run) local employment offices which (to help) workers find jobs.

42. "Ideal" efficiency is reached when the largest possible output (to produce) from a given quantity of factor inputs (to use) available techno­logy.

43. The government (to expect) larger aggregate demand (to result from) cuts in taxes.

44. Economists suppose forces of demand and supply (to determine) the prices of goods and services.

45. Economic rent is money (to pay) for a factor of production which is over the minimum amount (to require) to keep it in its present condition.

46. The problem is that whereas demands are limitless, the resources available at one time are limited in supply.

47. Non-renewable resources (to comprise) ores and most fuels.

48. Employed workers as well as those unemployed (make up) labour force.

49. The contribution (to make to) the GDP by the various sectors of the economy can be considered in a variety of ways.

50. The share of national income (to spend) on national defence varies from country to country.

Chapter 2

MANAGEMENT

Unit 2.1. Types of Businesses

Text 1

Types of Businesses in the U.K.

Pre-reading tasks

1. Suggest a purpose for reading the text.

2. What can the text be about? Give your own predictions.

Most businesses in the United Kingdom operate in one of the following ways:

• sole trader;

• partnership;

• limited liability company;

• branch of a foreign company.

The sole trader is the oldest form of business. There are many one-man owners, for example: a fanner, doctor, solicitor, estate agent, garage man, jobber, builder, hairdresser etc. The partnership is a firm where there are a few partners. They are firms of solicitors, architects, auditors, management consultants etc. The names of all the partners of the firm are printed on the stationery of a partnership. The most common type of company in the United Kingdom is the limited liability company. At the end of the name of such a company the word Ltd. is used. For example: Wilson and Son Ltd. Many of such companies are joint-stock companies owned by shareholders. Limited liability companies are divided into public and private ones. Only public companies may offer shares to the public at the stock exchange. The names of such companies end in p.l.c. which stands for “public limited company”. For instance: John and Michael p.l.c. Private limited companies may not offer shares to the public. The names of such companies end simply in Ltd. A branch of a foreign company is a part of a company incorporated outside Great Britain but acting under the law of the UK Usually these companies act in the UK under their normal foreign names.

All partnerships and companies are regulated by the law of the UK or by Acts of Parliament, and are to be registered with the Registrar of companies. In order to be registered they are to deliver a few documents, namely:

• a certified copy of the company's charter;

• statute;

• memorandum and others. When a company is registered a certificate of incorporation is issued by the Registrar. Here is one of the cerificates:

Duplicate for the file No 989855. Certificate of Incorporation

I hereby certify that the Goldflelds, Limited is this day incorporated under the Companies Acts, 1962 to 2010, and that the Company is Limited. Given under my hand at London this tenth day of July two thousand and ten.

Fees and Deed Stamps 15,200. 00

Stamp Duty on Capital 13,510.00

Registrar of Joint Stock Companies

Certificate received by Stephen Low

65 London Wall, E.C.,

Date 13 May, 2010