Sources of government revenue

Council tax Capital tax

£ 13.6 bn £ 123.9 bn

Business rates Other

£16.2 bn £ 36.2 bn

Corporation tax Income tax

£ 33.8 bn £ 95.9 bn

VAT

Excise duties £ 59.6 bn

and other

indirect taxes NI contributions

£ 48.6 bn £ 58.8 bn

Public spending

Housing and environment Transport

£ 14 bn £ 9 bn

Industry

Agriculture Other expenditure

and employment £ 59bn

£15 bn

Law and order Social security

£ 20 bn £ 103 bn

Defence Health

£ 23 bn £ 54 bn

Debt interest Education

£ 28 bn £ 46 bn

What figures in public spending would you change? Why? Do you know the figures of government revenue and public spending in your country?

Exercise 5. Make up the diagram of government revenue and public spending in Ukraine.

Exercise 6. Translate from Ukrainian into English.

1. Основне джерело доходу уряду - податки.

2. Оподаткування можна поділити на пряме і непряме.

3. Прямий податок накладається на фізичних осіб або фірми, непрямий – на товари і послуги.

4. Оподаткування має основне значення для організацій, що займаються бізнесом, ринком праці, ціною.

5. Фіскальна політика – це набір заходів, завдяки яким уряд маніпулює податками й видатками для вирішення певних політичних завдань.

6. Наприклад, уряд може підвищити податки для того, щоб зменшити чистий доход індивідума (яким він розпоряджується).

7. Такий крок, у свою чергу, скорочує їхні урядові видатки.

8. Але підвищення податків може бути використане як політичний захід для скорочення інфляції.

9. Будь-яке підвищення прибуткового податку скоротить попит в економіці і зменшить продаж.

Unit 9. Business organization.

Pre-reading tasks:

Look at the photos below. Do you know any of these names?

What do you know about TESCO?

Why don’t you know the first? Maybe, it is small, isn’t it?

Vocabulary.

1. Read the definitions of the following economic concepts, try to remember them and be ready to use.

Shareholder (stockholder) – owners of a corporation.

Stock – shares of ownership in a corporation.

Public corporation – corporation, which offer their stock to the general public.

Private corporation – corporation, whose stock is not available to the general public.

S corporation – small corporation with no more than 35 shareholders that may be taxed as partnerships.

Nonprofit corporation – incorporated institutions whose owners have limited liability and that exist to provide a social service rather than to make profit.

Subsidiary corporation – corporation whose stock is owned entirely or almost entirely by another corporation.

Parent company – company that owns most, if not all, of another company’s stock and that takes an active part in managing that other company.

Holding company – company that owns most, if not all, of another company’s stock, but does not actively participate in the management of the other company.

• Make up as many new words as it is given in brackets.

1. own (4); 2. partner (1); 3. corporate (2); 4. account (4); 5. legal (3); 6. employ (6); 7. establish (2); 8. manage (5); 9. contribute (3); 10. free (3); 11. flex (3).

• Complete the following sentences with appropriate words from the previous task.

1. If you want to organize a … find a person you can trust, respect and work with.

2. Unlimited liability is the main disadvantage of a … .

3. Independence, secrecy are benefits of … .

4. In a newly formed … , the shareholders elect a board of directors.

5. Many critics of business counter that … evade their social responsibility by using various tax minimization techniques.

Read text I and be ready to render it.

Text 1.