книги / Business English for Students of Technical Universities

Task 10. Give a short talk on any of the following subjects:

1)What is a sole proprietorship and how it can be started?

2)Some advantages the sole trader enjoys and disadvantages he/she has.

3)Imagine you are a seller or a creditor. What should you know about sole traders?

Text C

Task 1. Read the text and give it a title.

In spite of its limitations, the sole proprietorship is well adapted to many kinds of small businesses and suits the temperament of many persons who like to exercise initiative and be their own bosses. Some economic contributions of small business are:

•A small business is often the starting point for developing a new product or service. One person tries out an idea. If it is successful, the business grows, or the product may be bought by a larger firm.

•The small business can give an individual a chance to gain experience, which the person may use later on a larger scale.

•Small businesses are particularly well suited for meeting specialized local needs.

•Artisans can provide individualized products for customers who have grown weary of mass-produced goods.

•Small businesses provide a service where knowing one’s customers is important.

•Sole proprietors are reassuring to customers who believe an individual who is accountable will do a good job.

Small businesses often grow into large ones, adding to the economic vitality of the nation. Small business advocates contend that 55 percent of American technical innovation comes from small-and medium-size businesses. Certainly, many of the creative innovators in the American computer industry, including those who built successful companies in what is now known as Silicon Valley, California, started out as “tinkerers” working on hand-assembled machines in their garages. They have become part of American business lore. By any measurement, small businesses are an important part of the ferment, the creativity, and the competition that provide new strength to the American economy.

Of course, it is true that small businesses often fail. However, in the United States “failure” of a small business venture does not carry with it the social stigma or

41

opprobrium for the failed entrepreneur that it does in some countries. Often, failure of a small business venture turns out to be a valuable learning experience for the entrepreneur, who may be more successful the second or third time. Unsuccessful attempts to start a business become part of the larger process of sorting out the market and making it more efficient, according to small business experts.

Task 2. Make a written translation of the Text C.

Text D. Partnership

Task 1. Learn new words from the Vocabulary.

•co-owner – совладелец

•to specify – точно определять, устанавливать

•to be exempt from – быть освобожденным от (уплаты налогов и т.п.)

•to pool – объединять в общий фонд, складывать

•to earn – зарабатывать

•to be liable for – быть обязанным, быть ответственным за

•equal liability – обязательство с солидарной ответственностью должников

•to bind (bound) – связывать, обязывать

•approximately – приблизительно

•to squander – растратить

•to be bound to – быть обреченным на

•vital – важнейший, жизненно важный

Task 2. Read the text and be ready to do the exercises below.

Partnership

When a proprietor wants to expand business, one way to do so is to form a partnership, a business formed for profit by two or more co-owners. The right and duties of a partnership are regulated by laws of the state where it is formed and by a legal agreement entered into by the co-owners. Usually an agreement specifies the amount of money each is investing and the duties each partner assumes. A partnership agreement also may provide for “a silent partner” two does not take part in management, but who invests money in the business.

The partnership has the advantage of pooling managerial talent. One partner may be qualified in production, another in marketing. The partnership, like individual ownership, is exempt from most of the reporting that the government requires of corporations. Furthermore, it has a favourable tax position when

42

compared with the corporation. Federal taxes are paid by individual partners on their share of earnings: beyond that, the business is not taxed.

A major disadvantage of the partnership is that each member is liable for all the debts of a partnership: each act of any partner is legally binding upon all the others. If one partner takes a large amount of money from the business and squanders it, the others must pay the debt. Partnership suffer another major disadvantage: decision-making is shared. If partners have serious and constant disagreement, the business is bound to suffer. Nonetheless, the partnership remains a vital part of the overall business economy.

Task 3. Translate the following words and word combinations from the text:

1. one way to do so is …; 2. like individual ownership; 3. each partner; each act of any partner; 4. furthermore; 5. beyond that the business is not taxed; 6. most of the reporting that the government requires; 7. have greater profit potential than sole proprietorships; 8. all the others; the others must pay; 9. another major disadvantage; 10. nonetheless; 11. half as many partnerships as corporations.

Task 4. Match English words on the left to their Russian equivalents on the right:

A	1) to own	a) совладелец
	2) own	b) хозяин, собственник
	3) owner	c) свой собственный
	4) ownership	d) обладать, иметь
	5) ownerless	e) бесхозный
	6) co-owner	f) владеть совместно
	7) to co-own	g) собственность, владение
B	1) profit	a) пользоваться, извлекать пользу
	2) gross profit	b) прибыль, выгода
	3) net profit	c) выгодно, с прибылью
	4) profitable	d) чистый доход
	5) profitably	e) спекулянт, барышник
	6) to profit	f) участие в прибылях
	7) profiteer	g) спекулировать
	8) to profiteer	h) валовой доход
	9) profit-sharing	i) прибыльный, выгодный

43

Task 5. Find English equivalents for the following phrases in the Text D:

1) расширить дело; 2) способ получения прибыли; 3) права и обязанности; 4) правовое (юридическое) соглашение; 5) соглашение о создании товарищества; 6) вкладывать деньги в дело; 7) быть квалифицированным специалистом в производстве и маркетинге; 8) как индивидуальная собственность; 9) быть освобожденным от предоставления отчета; 10) более

того;		11) федеральные налоги; 12) доля прибыли;			13) крупный недостаток;
14)	быть ответственным за долги товарищества; 15) взять крупную сумму
денег;		16) растратить деньги; 17) заплатить			долг; 18) страдать от;
19)	принятие		решений;	20) расхождения;	21) тем	не	менее;
22)	приблизительно.

Task 6. Answer the following questions on the Text D:

1)What is the way to expand business for a sole proprietor?

2)What does a partnership agreement specify?

3)What are the advantages of a partnership?

4)What are the disadvantages of a partnership?

5)What part do partnerships play in the US economy?

PART 2. CORPORATIONS

Text A. Types of Corporations

Task 1. Learn new words from the Vocabulary:

•property – собственность

•holding – вклад; pl. вклады

•stock – акция; акционерный капитал (syn. share)

•purchase – n. покупка, v. покупать, приобретать

•public corporation – корпорация открытого типа, открытая корпорация

•private corporation – корпорация закрытого типа, закрытая корпорация

•S corporation (or small corporation) – малая корпорация

•non-profit corporation – некоммерческая корпорация

•subsidiary corporation – дочерняя корпорация

•parent company – компания-учредитель, материнская компания

•holding company – компания, владеющая контрольным пакетом акций других компаний; компания-держатель; холдинговая компания

44

Task 2. Read the text and be ready to do the exercises below.

Types of Corporations

In the United States, a corporation is a specific legal form of organization of persons and resources chartered by one of the 50 states for the purpose of conducting business. When people and resources are brought together to form a corporation, the result – in the eyes of the law – is a person (Indeed, the Latin word “corpus” means “body” or “person”) So, a corporation is authorized by law to act as a private person. A U.S. corporation, distinct from any individual human being, may own property, sue or be sued in court and make contracts. For this reason, a corporation is an ideal vehicle for the conduct of business by many smaller enterprises as well as larger ones; it is the most significant form of business ownership in terms of money, size, and power. Corporations account for 72 percent of all money taken in by U.S. business firms. This form of organization has five important characteristics:

•It’s an artificial person with specific legal standing;

•It has limited liability;

•The state gives it the power to conduct a specific type of business activity;

•It is owned by shareholders;

•Shareholders are liable for damages only to the extent of their holdings.

A corporation whose stock is owned by large numbers of public investors is called a public corporation. The stock of these firms can be purchased on the open market by anyone.

Conversely, private corporations do not sell stock publicly. If shares of a corporation are owned by less than 500 people or the company has under $ 1 million in assets, the firm is not required to publicly disclose its finances unless its stock is traded on a national exchange.

Other types of corporations include:

•the S corporation, which is permitted to have a maximum of 35 shareholders and may be taxed like a partnership;

•the non-profit corporation, such as the Public Broadcasting System (PBS);

•the subsidiary corporation, which is entirely or partly owned by another corporation called a parent company;

•the holding company, which is a type of parent company that provides little control over the subsidiary and merely holds its stock as an investment.

45

Task 3. Answer the following questions on the Text A:

1)What is a corporation?

2)Does a corporation have the same standing, rights and duties as an individual?

3)What percent of all money taken in by businesses do corporations account for?

4)Who is a corporation owned by?

5)Does a corporation have limited or unlimited liability?

6)To what extent are shareholders liable for damages?

7)What is a public corporation?

8)What do private corporations differ from public ones?

9)Do all corporations have to report their financial condition to the public?

10)How many shareholders is the S corporation permitted to have and how is it taxed?

11)Are all corporations profit-making organizations?

12)What’s the name of the corporation which owns another?

13)How is the corporation whose stock is owned entirely or partly by another corporation called?

14)Does the holding company provide much control over the subsidiary?

Task 4. Match each type		of organization on the left with its description on
the right:
	Type	Description
1)	Public corporation	a) an organization that makes no profit
2)	Private corporation	b) a company which owns another
3)	S corporation	c) a corporation whose shares are not publicly
		available
4)	Non-profit corporation	d) a parent company which does not actively
		participate in the management of the company it
		owns
5)	Subsidiary corporation	e) a corporation whose shares are publicly available
6)	Parent company	f) a company with no more than 35 shareholders
7)	Holding company	g) a firm owned by a parent company

Text B. Separation of Ownership and Control

Task 1. Learn new words from the Vocabulary:

•insurance – страхование

•institutional investor – инвестор-учреждение

46

•voting shares – акции с правом на большее число голосов при голосовании

•accountant – квалифицированный бухгалтер

•proxy – передача голоса или полномочий

•by proxy – по доверенности

•officer – должностное лицо

•chief executive officer (CEO) – главный исполнительный директор компании

•lending institution – кредитное учреждение, кредитная организация

•block of stocks – пакет акций

Task 2. Read the following international words and give their Russian equivalents:

separation; director; person; percent; detail; effective; theory; recommendation; typically; role; act v.; select; prestige; reality; president; vice president; aspect; report v.; meeting; audit v.; normally; pension; fund; plan.

Task 3. Read the text and be ready to do the exercises below.

Separation of Ownership and Control

In a corporation, ownership and management are separate and the shareholders or owners of the company’s stock can vote to oust managers.

Although in theory shareholders are the ultimate governing body in a corporation, in reality they most often accept the recommendations of management. Furthermore, not all corporate stock carries voting rights. In the past 20 years, institutional investors such as pension funds and insurance companies have become quite influential because they own large numbers of shares. Such investors want the value of the stocks they hold to increase, and they have begun to play a greater role in governing the corporations they invest in.

At least once a year, all owners of voting shares are invited to a meeting to choose directors for the company, select an independent accountant to audit the firm, and attend to other business. Until recent years, only a few people would normally attend the annual corporation meetings. Most shareholders would vote on the election of directors and certain other highly important matters by “proxy”, that is by filling out a form and mailing it in authorizing management to vote on their behalf. Now, it is not unusual for several hundred to attend. Often they ask management penetrating questions.

47

The board of directors, which represents shareholders, has the job of guiding the corporation’s affairs. Typically, the board consists of 15 to 25 directors who vote on major management decisions.

The makeup and role of the board of directors varies from one company to another. In some corporations, the board of directors merely acts as a “rubber stamp” in approving management’s recommendations; in other firms, they make major policy decisions. Increasingly, only a minority of board members are internal officers of the corporation. Some directors are selected to give prestige to the board, others to provide certain skills or to represent lending institutions. It is not unusual for the same person to serve concurrently on several different corporate boards. The board meets monthly or quarterly to consider policy related to operational decisions and to review accomplishments. At annual meetings, new directors are added as needed and major policy decisions are made.

The real power in a corporation usually rests with its chief executive officer (CEO), who is responsible for setting down the policies of the company under the direction of the board. The CEO typically appoints the other major corporate officers, who must also be approved by the board. They manage various aspects of the corporation and report to the CEO. The CEO may also serve as the chairman of the board, the president of the corporation or both. As long as the CEO has the confidence of the board of directors, he or she is permitted a great deal of freedom in the operation of the company.

Employees are increasingly becoming involved in governing the firms that employ them. One form of employee involvement is the employee stock ownership plan (ESOP), which encourages workers to buy shares of stock in the companies they work for. Since such plans often control large blocks of stock, workers receive a voice at shareholder meetings and may even be represented on a firm’s board of directors.

Task 4. Work in pairs and discuss the following questions:

1)Are ownership and management separate in a corporation?

2)Can the shareholders vote to oust managers?

3)Are shareholders the ultimate governing body in a corporation theoretically or in practice?

4)Does all corporate stock carry voting rights?

5)Why have institutional investors begun to play a greater role in governing the corporations they invest in?

6)Who is the board of directors elected by?

48

7)What does it mean to vote by proxy?

8)What body has the job of guiding the corporation’s affairs?

9)How many directors does the board usually consist of?

10)How often does the board meet?

11)Do internal officers of the corporation represent a majority of board members?

12)Who does the real power in a corporation rest with?

13)Can the chief executive officer also be the chairman of the board?

14)What is one form of employee involvement in governing the firms that employ them?

15)What does ESOP encourage workers to do?

Task 5. Match the following words on the left to their definitions on the right:

1) employ	a) a person who is employed
2) employee	b) use a person as a paid worker
3) employer	c) a person that employes others

Task 6. For each word in A, find the one in B with the same meaning:

A	B
1) to oust	a) to be different
2) to attend to	b) the smaller part
3) to accept	c) to post
4) matter	d) to cause to leave
5) to mail	e) cost
6) major	f) to guide
7) to vary	g) to receive
8) to approve	h) to stimulate
9) minority	i) to pay attention to
10) quarterly	j) once a year
11) to rest with somebody	k) chief
12) confidence	l) to agree
13) value	m) at the same time
14) encourage	n) to be the responsibility of somebody
15) to govern	o) affair
16) concurrently	p) trust
17) annually	q) every three months

49

Task 7. Look through the text and find the English equivalents for the following phrases:

a)отстранить руководителей;

b)главный руководящий орган;

c)стали довольно влиятельными;

d)выбрать независимого квалифицированного бухгалтера;

e)состав и роль совета директоров;

f)должностные лица внутри корпорации;

g)принимаются главные стратегические решения;

h)реальная власть лежит на главном исполнительном директоре;

i)до тех пор, пока главный исполнительный директор пользуется доверием совета директоров;

j)такие программы часто контролируют крупные пакеты акций.

Task 8. Fill in the gaps with suitable prepositions:

1)Shareholders may fill _______ a form and mail it in authorizing management to vote _______ their behalf.

2)The board usually consists _______ 15 to 25 directors.

3)It is quite usual for one person to serve at the same time _______ several different corporate boards.

4)The board considers policy related _______ operational decisions.

5)The real power in a corporation rests _______ its chief executive officer.

6)The CEO is responsible _______ setting down the policies of the company

_______ the direction of the board.

7)The ESOP encourages workers to buy shares of stock in the companies they work _______.

Task 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

50