IV. Answer the following questions
1.What is the role of business? 2. How do different businesses differ?
3. What are the rights and duties of a corporation?
4. What should be done in order to be legally recognized as a corporation?
5. What is a share of stock? What role do the stockholders play in the activities of a corporation?
6. Who runs the day-to-day operation of the corporation? 7. What is a dividend?
8. Who decides in what way the profit of the company should be distributed?
9. What are the advantages of corporations over the other forms of businesses?
10. What disadvantages do the corporations face?
11. Why do many corporations arrange for management to own shares, of stock?
V. Say whether these statements are true or false, explain why?
1. Corporations are easy to organize, decisions can be made quickly profits are shared with only a few people, and the owners are responsible for success or failure of the business. 2. If the corporation makes a loss the board may decide to reinvest some of the profit in the corporation for expansion, modernization, or research and development.
3. If the corporation goes bankrupt or is sued, the stockholders lose the value of their stock. They are personally responsible for any money the corporation owes.
4. Bonds represent ownership in the corporation.
5. In corporations with many owners or stockholders the individual share of profits in the form of dividends is comparatively small.
6. In very large firms the shareholders have very little to do with the day-to-day running of the firm.
VI. What sort of company is it?
There are many types of business organization and the different terms can be confusing. Match the various types of organization with their definitions.
| 1. corporation (US) | a) an organization to relieve poverty, advance religion or education, etc; benefits from some financial concessions |
| 2. government agency | b) an organization operating to make a profit |
| 3. cooperative | c) a democratic firm owned by its workers |
| 4. limited company | d) a new commercial activity. Also income company names, for example, Smiths’ Enterprises |
| 5. charity | e) an organization which is part of the state administration |
| 6. minority interest | f) a firm, usually without commercial activity, created to be parent to other companies |
| 7. enterprises | g) a firm where shareholders liability is limited |
| 8. subsidiary (affiliate) | h) company is which another firm has less than 50% interests |
| 9. private company | i) an organization operating in several countries |
| 10. multinational company (UK) | j) company owned by the state |
| 11. parent company | k) a firm based in a tax haven to avoid higher taxation |
| 12. nationalized company | l) a company which owns another |
| 13. holding company | m) two or more partners working together for profit, without limited liability |
| 14. society | n) a company whose shares are not publicly available |
| 15. offshore company | o) a company whose shares are publicly available |
| 16. partnership | p) a friendly association of people; for example, a sports society (society=firm) |
| 17. public company | q) firm owned by a parent company |
VII. Choose the best word from the brackets to fill the gap and translate sentences into Russian.
1.The Ford Motor Company was ____________ in 1903. (find/found/founded)
2. There were 2,700 business ______________ in the UK in the last quarter. (start – ups/ get - ups/starts – offs)
3. Sir Richard Branson is one of Britain’s _____________of industry. (bosses/captains/moguls)
4. Rupert Murdoch is a media ___________ who owns many newspaper and TV companies. (leader/magnate/founder)
5. That’s Angelina Carlito. She’s very successful _____________________. (businessman/businesswoman/business people)
6. My mother started with one shop and now she heads up a huge business _____________. ( empire/country/world)
VIII. The diagram below shows the management structure of Universal Software. Match the people (1-8) with their positions. Write the letter of your chosen answer in the box on the right.
| A Chairperson |
| B Non-Executive Directors |
| C Director of Finance |
| D IT Director |
| E Marketing Director |
| F Human Resources Director |
| G Director of Research |
| H Account Manager |
| J Sales Manager |
| K Customer Services Manager |
| I Production Manager |
1. I’m Marco Alatri and I’m the director responsible for the company budgets and accounts.
2. I’m Tom Scott. I’m not actually a manager at Universal, but I do sit on the board.
3. My name is Helen Good. I’m the CEO and I also chair the board.
4. My name’s Carla Jelinek. I’m in charge of the company’s information systems.
5. I’m Dan Matthews. My team develops new products and tests them.
6. I’m Karine and my team deals with calls from the public… and complaints!
7. My name is Patrick Aubaile and I report to the CFO.
8. I’m Alex Tait and I’m responsible for company recruitment and staff development.
IX. Letter writing.