7. Find synonyms among these words:

study, precise, complex, subject, essentially, use, exact, matter, basically, mainly, apply, developed, examine, advanced, completely, help, community, totally, assistance, society, build, gift, construct, present.

8. Find antonyms among the following words:

begin, difficult, high, poor, inside, wealth, finish, easy, low, prosperous, outside, poverty, capable, dependence, incapable, directly, large, independence, indirectly, small.

8. Home reading. Read the text and explain the meanings of the following terms:

‘Capital’, ‘Wealth’, ‘Fixed capital’, ‘Money’

Capital

Capital is a man-made resource. Any product of labour and land which is reserved for use in the further production is capital.

Capital was created when people began to make simple tools and implements to assist them in the production of food, the hunting of animals, and in the transportation of their possessions.

It might be helpful at this stage to deal with the confusion which commonly arises over the meanings of three important terms: capital, money and wealth.

Capital, as already indicated, means any produced means of production.

Wealth is quite simply the stock of all those goods which have a money value. Capital, therefore, is an important part of the community’s wealth.

Money is a claim to wealth. From the standpoint of the community as a whole, money is not wealth, since we can not count both the value of real assets and the value of the money claims to those assets. From the point of view of the individual citizen, however, money represents a part of his personal wealth, since he sees it as a claim on assets held by other people. To the individual business person, therefore, any money he possesses he regards as capital, since it gives him a claim on resources now possessed by others. We must be quite clear, however, that money is not part of the national wealth.

Capital is usually divided into two types: that which is used up in the course of production and that which is not.

Working capital consists of the stocks of raw materials, partly finished goods held by producers. These stocks are just as important to efficient production as are the machines and buildings. Stocks are held so that production can proceed smoothly when deliveries are interrupted and so that unexpected additional orders for finished goods can be met without changing production schedules. This kind of capital is sometimes called circulating capital because it keeps moving and changing. Materials are changed into finished goods which are then exchanged for money and this is used to buy more materials.

Fixed capital consists of the equipment used in production – buildings, machinery, railways and so on. This type of capital does not change its form in the course of production and move from one stage to the next – it is ‘fixed’.

Unit 2 management

Management is the process of coordinating the resources of an organization to achieve the primary organizational goals. Depending on its size an organization may employ a number of specialized managers who are responsible for particular areas of management. A very large organization may employ many managers, each responsible for activities of the management area. In contrast, the owner of a sole proprietorship may be the only manager in the organization. Managers are concerned with the following main resources:

* Material resources are physical materials and the equipment used by an organization to make a product. For example, cars are made on assembly lines. These assembly lines and the buildings that house them are material resources.

* The most important resources of any organization are its human resources – people. Some firms believe that their employees are their most important assets. To keep employees content, a variety of incentives are used, including higher-than-average pay, flexible working hours, recreational facilities, lengthy paid vacations, cafeterias offering inexpensive meals, etc.

* Financial resources are the funds the organization to meet its obligations to various creditors. A grocery store obtains money from customers and uses a portion of that money to pay the wholesalers from which it buys food. A large bank borrows and lends money. A college obtains money in the form of tuition, income from its endowments, and federal grants. It uses the money to pay utility bills, insurance premiums, and professors' salaries. Each of these transactions involves financial resources.

* Finally, many organizations increasingly find they cannot ignore information. External environment – including the economy, consumer markets, technology, politics, and cultural forces – are all changing rapidly that an organization which does not adapt will probably not survive. And, to adapt to change, the organization must know what is changing and how it is changing. Companies are finding it increasingly important to gather information about their competitors in today's business environment.

It is important to realize that these are only general categories of resources. Within each category there are hundreds of more specific resources, from which management must choose those that can best accomplish its goals. Managers must coordinate this complex group of specific resources to produce goods and services.