Н.П. Морозова Forms of business organization Формы организации предприятий (английский язык)

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1. Look through the text and find the English equivalents for the following Russian phrases:

отстранить руководителей; главный руководящий орган; стали довольно влиятельными; выбрать независимого квалифицированного бухгалтера; состав и роль совета директоров; должностные лица внутри корпорации; принимаются главные стратегические решения; реальная власть лежит на главном исполнительном директоре; до тех пор, пока главный исполнительный директор пользуется доверием совета директоров; такие программы часто контролируют крупные пакеты акций.

2.Fill in the gaps with prepositions:

3.Shareholders may fill … a form and mail it in authorizing management to vote … their behalf.

4.The board usually consists … 15 to 25 directors.

5.It is quite usual for one person to serve at the same time … several different corporate boards.

6.The board considers policy related … operational decisions.

7.The real power in a corporation rests … its chief executive officer.

8.The CEO is responsible … setting down the policies of the company … the direction of the board.

9.The ESOP encourages workers to buy shares of stock in the companies they work … .

9. Translate into English:

Собственниками корпорации часто являются не те люди, которые ею руководят. Собственниками корпорации являются акционеры. Люди покупают акции, так как надеются, что фирма будет расти и получать прибыль. Держатели акций имеют право посещать собрания акционеров и принимать решения по основным вопросам, таким, например, как замена членов совета директоров, а иногда и президента.

Совет директоров собирается несколько раз в год для того, чтобы убедиться в том, что дела компании идут хорошо. Повседневные решения принимают менеджеры внутри корпорации, хотя совет директоров вправе нанимать и увольнять (to fire) руководителей высшего звена. Директоров избирают акционеры.

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Главный исполнительный директор управляет фирмой и несет ответственность за её работу перед советом директоров и акционерами.

10.Prepare a short talk on any of these subjects:

1.	Shareholders
	(1)	Institutional investors
	(2)	Proxies
1.	Board of directors

2.Officers

(1)	CEOs
1. Employees
(1)	ESOPs

С

1. Read the text “Large Corporations” without a dictionary and answer the question:

“What advantages do large corporations have over small – and medium – size ones?”

The following words will help you understand the text:

consumer	- потребитель
overhead costs	- накладные расходы
brand name	- торговое название или фирменная марка
	(товара)
competitiveness	- конкурентоспособность
decline	- понижаться, снижаться

Large Corporations

Although there are many small – and medium – size corporations, bigger business units are needed to perform certain services in the vast American economy. Large corporations can supply goods and services to a greater number of people across a wider geographic area than small businesses. They serve consumers across the nation and across the world. Corporate products tend to cost less because of the large volume and small overhead costs per unit sold. Moreover, consumers benefit from the availability of corporate “brand names” which they recognize as guaranteeing a certain level of quality wherever purchased.

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Large corporations also have the financial strength to research, develop and produce new goods. Their scientific know – how, innovation and technical capability are critical to maintaining the nation’s competitiveness and productivity.

Some 500 major corporations occupy an important role in American business, although in some respect it has been a declining one. From 1978 to 1990, the profits of these 500 firms taken together have risen from $ 61.5 thousand – million to $ 93.3 thousand – million and assets have risen from $ 898.5 thousand – million to $ 2,298.6 thousand – million. In 1990 some 12.4 million people were employed by these firms, 1 million fewer than in 1986.

2. Give a summary of the text in Russian.

D

1.Words and expressions to be memorized:

liquid	- легко реализуемый, ликвидный
liquidity	- ликвидность (превращаемость в наличные
	(деньги)
cash	- наличные деньги, наличность
entity	- юридическое лицо
legal entity	- физическое или юридическое лицо
incorporation	- регистрация в качестве юридического лица;
	корпорация
disclosure	- предoставление компанией сведений о своей
	деятельности

2. Read the text:

Advantages and Disadvantages of Corporations

The corporate form of business is a more flexible instrument for large-scale economic activity than the sole proprietorship or partnership.

First, because the corporation itself has legal standing, it safeguards its owners, relieving them of individual legal responsibility when they act as agents of the business.

Second, the owners of shares of stock have limited liability: they are liable only to the limit of their investment, they are not responsible for corporate debts. If a shareholder paid $100 for 10

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shares of stock and the corporation goes bankrupt, he or she can only lose the $100 invested.

Third, corporate stock is liquid, that is investment in a publicly held corporation can easily be converted to cash.

Fourth, corporations have unlimited life span. The corporation is not damaged by the death or disinterest of a particular person. An owner of stock can sell his or her holdings at any time or pass the stock along to heirs.

Yet the corporate business organization has drawbacks as well as benefits.

One disadvantage relates to taxation. As a separate legal entity, the corporation must pay taxes. The federal corporate tax rate taxes corporations at a higher rate than unincorporated businesses. Unlike the treatment of interest on bonds, dividends paid to shareholders are not a tax deductible business expense for the corporation. When the corporation passes along profits to individuals in the form of dividends, the individuals are taxed again on these dividends. This is known as “double taxation”.

Another drawback results from the fact that ownership becomes separated from management. While this makes management easier, some managers are tempted to act more in their own interests than those of the stockholders.

Other disadvantages include the public disclosure requirements, whereby corporations must make some types of financial information public and the cost of incorporation and the cost of making a public stock offering (for a public corporation).

3. Say if the following statements are true of false. If false, say why:

1. Compared to other forms of business organizations, corporation is a more flexible instrument for large-scale economic activity.

2.A corporation is an artificial person with a limited life span.

3.Limited liability is not a characteristic of corporations.

4.Corporations are taxed more heavily than unincorporated businesses.

5.An owner of stock can neither sell his or her holdings nor pass the stock along to heirs.

6.Corporate stock in a privately held corporation is liquid.

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7.That ownership becomes separated from management makes the latter easier.

8.Corporations must report their financial condition to the public.

4. Write in the advantages and disadvantages of the corporation in note form.

	Corporation
Advantages	Disadvantages
1.	1.
2.	2.
3.	3.
4.	4.

	Discuss the advantages and disadvantages using the following
	expressions:
	On the one hand …, but on the other hand …; Although …;
	When it comes to …; As for … .
5. Prepare a talk on : 1. Advantages of corporations
2		2. Disadvantages of corporations
3
		REVISION TEST

1. Which of the following is not an advantage of a sole proprietorship?

a. flexibility of organization	c. limited liability
and management
b. easy entrance	d. secrecy
2. Sole proprietorships are least common among
a. manufacturers	c. service businesses
b. retailers	d. farmers

3. Which of the following is an advantage of a partnership over a sole proprietorship?

a. limited financial liability	c. greater borrowing
for the partners	power
b. ease of entry	d. unlimited life span

4.All of the following are disadvantages of the sole proprietorship except

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a.unlimited liability

b.the difficulty most people have in establishing them

c.high interest rates and the difficulty owners confront in borrowing money

d.limited life and heavy dependence upon a single

person

5.Top officers of a corporation are elected by and can be removed by

a. shareholders	c. the chairman of the board
b. the board of directors	d. none of the above

6.Under what type of partnership is a person's liability limited to the amount of his or her investment?

a. limited partnership	c. corporate partnership
b. general partnership	d. every partnership
7.The owners of a corporation are known as the
a. board of directors	c. shareholders
b. chief executive officers	d. creditors
8. Success in a sole proprietorship generally requires
a. individual initiative	c. self-reliance
b. hard work	d. all of the above

9.Which of the following is true concerning corporations?

a. To be incorporated, an organization must be designed to

make a profit.

b.A corporation must sell its shares on the open market.

c.A corporation must make public reports on its financial condition.

d.Corporations have limited liability.

10. Unlimited liability means that any damages or debt attributed to

the business can be attached to the
a. stockholders	c. owners
b. board of directors	d. creditors

11. A legal association of two or more persons as co-owners in a

business is called a
a. cooperative	c. sole proprietorship
b. corporation	d. partnership
12. The board of directors of a corporation is elected by the
a. company officers	c. employees
b. voting stockholders	d. chief executive officers

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13.	As a practical matter, the entity that has ultimate authority in
guiding corporate affairs and making general policy is the
	a.company president or	c. board of directors
	chief executive officer
	b. stockholders	d. company lawyers
14.	The owners of a business can sell their interest in a business with
the least amount of trouble in a
	a. sole proprietorship	c. public corporation
	b. partnership	d. nonprofit corporation
15.	Conflict among the owners in a business is most likely occur in
	a. sole proprietorships	c. public corporations
	b. partnerships	d. nonprofit corporation
16.	Partnerships are most common in which of the following?
	a.commercial or industrial firms	c.retail stores
	b.professional and financial	d.discount houses
	services
17.	Which form of business ownership accounts for the most money
and has the most power?
	a. sole proprietorships	c. corporations
	b. partnerships	d. None. They are all about
		equal.
18.	Which of the following is not a characteristic of public
corporations?
	a. limited life span	c. limited liability
	b. the ability to raise large	d. the ability to attract high-
	sums of money quickly	quality personnel

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В работе использована следующая методическая литература:

1. Боганский И.С., Дюканова Н.М. Бизнес-курс английского языка: Словарь-справочник. – Киев: Логос, 1997.

2.Кумарова М.Г. Новый бизнес английский. Курс деловой. лексики английского языка.- М.: АКАЛИС, 1997.

3.Миловидов В. Английский курс для специалистов по финансовому менеджменту и банковскому делу.-Тверь, 1994.

4.Оксюкевич Е.Д. Хрестоматия по юриспруденции.- М.: Спарк,

1997.

5.Словарь активного усвоения лексики. Лонгман Груп Лимитед, Харлоу. - М.: Рус. яз., 1988.

6.Шевелёва С.А., Стогов В.Е. Основы экономики и бизнеса. Учеб. пособие по англ. яз..-М.: Культура и спорт ЮНИТИ,

1996.

7.An Outline Of The American Economy.- United States Information Agency. 1992.

8.Lees G., Thorne T. English on Business. Practical English for International Executives. -Обнинск: Титул, 1997.

9.Mack Angela. The Language of Business. BBC English by Radio

and Television, 1990.

10.Norman S. We're in Business. English for commercial practice and international trade /Student's Book.-England: Longman, 1990.

11.Rachman/Mescon/Boree/ Thill. Business Today. Sixth Edition Study Quide. USA, 1992.

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Составители

Наталия Петровна Морозова Любовь Кузьминична Чадина

FORMS OF BUSINESS ORGANIZATION

Формы организации предприятий (английский язык)

Методические указания для студентов II курса экономических специальностей

Редактор З.М. Савина

ЛР № 020313 от 23.12.96.

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