Text 1. Read the text. Choose the best alternatives 1, 2, 3, 4 or 5 to answer the questions.

RUNNING А SMALL FIRM

Small firms are often said to labour under such disadvantages as the inabili- ty to secure competent employees, the inability to cope with monopolistic prac- tices, the inability to finance expansion when it has been proved to be practicable, tax burdens, limited vendor goodwill, discriminatory practices by large shopping- center developers, lack of time for the small proprietor to handle multiple as- signment, lack of research facilities, and the problems of making а new firm or product known in its market.

Many of them could be overcome with positive planning. An ill-conceived business, whether large or small, has little chance of success if its operation has not been properly planned. Good research in the planning stage can reveal oppor- tunities for success. It can also indicate when а business that is contemplated should not be undertaken.

The rewards for successful small firm ownership can be significant. The personal satisfaction will vary with the individual owner. Good profits, satisfying employment, being one's own boss, community status, family pride and tradition, and having an outlet for one's creativity are some of them.

But these rewards are never automatic or guaranteed. Success makes many demands upon the operator of the firm. The requirements for successful owner ship of small business firms can be summarized as follows: personal characteris- tics, good customer relations and knowledge of consumerism, good community relations, business ethics and social responsibility, compliance with government regulations. But sound business knowledge and willingness to work hard stand at the head of any list. Knowing the causes of failure can protest the owner against them.

Small firms in such fields as construction, wholesaling, retailing and the service industries have faced up well to their larger firm competition.

№	Вопросы	Варианты ответов
	What is the most important disadvantage of running а small firm?	1. The inability to secure competent employees. 2. The inability to cope with monopolistic practices. 3. The inability to finance expansion. 4. The problems of making а new firm or а product known in its market. 5. No information is given.
	Why is it difficult for the small proprietor to do multiple assignments?	1. The reason is lack of time. 2. The reason is lack of money. 3. The reason is lack of business knowledge. 4. The reason is lack of competent employees. 5. No information is given in the text.
	How can owners of small firms overcome disadvantages?	1. Small firms often grow into large firms. 2. Small firms can adjust more easily. 3. Small firm’s owners have close rapport with personnel. 4. Small firm’s owners can reveal opportunities by planning. 5. No information is given in the text.
	What cannot research in the planning stage reveal?	1. Opportunities for success. 2. Business that should not be undertaken. 3. Needed time. 4. Business operations. 5. No information is given in the text.
	In what way can owners of small firms be rewarded?	1. The reward is the personal satisfaction. 2. Having an outlet for one's creativity is the reward. 3. Community status is the reward. 4. Good profits and family pride are the rewards. 5. The reward is all the above.
	What are the requirements for successful ownership of small business firms?	1. Knowing the causes of failure and good customer relations. 2. Willingness to work hard and research facilities. 3. Competent employees and positive planning. 4. Business knowledge, good community relations, personal characteristics. 5. Flexibility and positive planning.
	What requirements for successful ownership of small firms are at the head of the list?	1. Compliance with government regulations. 2. Knowing the causes of failure and good customer relations. 3. Business knowledge and willingness to work. 4. Flexibility and positive planning. 5. Competent employees and positive planning.
	What can protect owners оf small firms against failure?	1. Social responsibility and business ethics. 2. Knowing the reasons of failure. 3. Government policy. 4 Support of large firms. 5. No information is given in the text.
	What firms are less preferable in construction, wholesaling, retailing?	1. Small firms. 2. Large firms. 3. Partnership. 4. No information is given in the text. 5. Joint ventures.
10.	Which of the following statements is true according to the text?	1.Small firms have no advantages over large ones. 2. Disadvantages of small firms could not be overcome. 3. Small firms are less regulated. 4. Rewards for successful small firms are never automatic or guaranteed. 5. Nobody knows the requirements for successful ownership of small firms.

DOING THE BUSINESS

The need for а solid structure within all business entities is absolutely fundamental.- Organizational structure concerns who reports to whom in the compa ny and how different elements are grouped together. А new company cannot go forward without this and established companies must ensure their structure - reflects their target markets, goals and available technology.

Depending on their size and needs there are several organizational structures companies can choose from. Increasingly though, in the constantly evolving business environment, many firms are opting for а kind of hybrid of all of them.

The most recognizable set up is called the functional structure where а fairly traditional chain of command is put in place. The main benefit of this system is clear lines of communication from top to bottom but it is generally accepted that it can also be а bureaucratic set up which does not favour speedy decision- -making.

More and more companies are organizing themselves along product lines where companies have separate divisions according to the product that is being worked on. In this case the focus is always on the product and how it can be im- proved.

The importance for multinational companies of а good geographic structure is high. The matrix structure first evolved during а project developed by NASA when they needed to pool together different skills from а variety of functional areas. Essentially the matrix structure organizes а business into project teams, led b у project leaders, to carry out certain objectives. Training is vitally important here in order to avoid conflict between various members of the teams.

During the 1980s а wave of restructuring went through industry around the globe. This process, known as delayering, saw а change in the traditional hierarchic- structures with the layers of middle management being removed. This de- velopment was driven by new technology and by the need to reduce costs. The overall result was organizations that were less bureaucratic.

№	Вопросы	Варианты ответов
	What need for an organizational structure is not appropriate to established companies?	1. То find who reports to whom in the company. 2. То ensure their structure reflects their target markets. 3. То see if their structure answers their purposes. 4. То ensure their structure meets the technology requirements. 5. То become more up-to-date.
	What is the functional structure definition?	1. А cross-functional structure where people are organized into project teams. 2. А structure rather like the army, where each person has their place in а fixed hierarchy. 3. А structure that enables a company to operate internationally, country by coun- try. 4. А structure organized around different products. 5. No information is given in the text.
	What kind of organizational structure is more common than the others?	1. Matrix structure. 2. Product structure. 3. Geographic structure. 4. Functional structure. 5. Hybrid of all structures.
	What is the advantage of the functional structure?	1. А bureaucratic set up. 2. Several ways of а product improvement. 3. Avoiding conflicts between the team members. 4. Delayering process. 5. Clear lines of communication from top to bottom.
	What is the focus on in product structures?	1. On the customers. 2. On the product. 3. On the available technology. 4. On the target markets. 5. On the business environment.
	What is the positive expression used in the text to describe different aspects of organizational structures?	1. Flat organizational structure. 2. Traditional hierarchical structure. 3. Variety of functional areas. 4. Customer centric approach. 5. Bureaucratic set up.
	What was not the reason for delayering?	1. New technology. 2. The need to reduce costs. 3. The need to get rid of bureaucratic set up. 4. The need to find available technologies. 5. No information is given in the text.
	What is vital for success according to the text?	1. Project leaders. 2. Available technologies. 3. Target markets. 4. Business environment. 5. Efficient management.
	How can organizational structures be classified?	1. According to certain objectives. 2. Depending on their leaders. 3. According to their size and needs. 4. Depending on their lines of communication. 5. No information is given.
	How many kinds of organizational structures are described in the article?	1. Four. 2. Three. 3. Two. 4. One. 5. No information is given.