Vocabulary

objectives economic policy chief executive цели экономической политики, главный исполнительный

[ig'zekjutiv] to ensure [in'Jua] to dismiss (to fire) для обеспечения того, чтобы уволить

regulatory requirement to assess нормативные требования для оценки

overall performance общие показатели финансовые показатели для мониторинга

financial performance to monitor чтобы отложить в сторону благополучия разнообразия

to set aside well-being diversity [dai'vaisiti] для удовлетворения требований по приобретению

innovative инновационные

to meet requirements (needs) to acquire [a'kwaia] для учета в расходах для назначения

to account to expenditures [iks'penditjss] to assign для учета в расходах для назначения

to enhance [irihcrns] для повышения

Assignment. Answer the questions:

What are the responsibilities of a board of directors in a corpo­ration? Name them.

What are major duties of a Board of Directors?

What can we call an effective board of directors?

LIMITED LIABILITY COMPANY (LLC)

The LLC is a relatively new type of hybrid business structure that is now permissible in US. It is designed to provide the limited liability features of a corporation and the tax efficiency and operational flexibil­ity of a partnership. Formation of LLC is more complex and formal than that of a general partnership.

The owners are members, and the duration of the LLC is usually de­termined when the organization papers are filed. The time limit can be continued if desired by a vote of the members at expiry date (the time of expiration). LLC's must not have more than two of the four charac­teristics that define corporations:

Limited liability to the extent of assets;

Continuity of life;

Centralization of management; and

Free transferability of ownership interests.

Vocabulary

Permissible дозволенный

featureo признак, свойство

tax efficiency налоговая эффективность гибкость операций образование, создание срок

operational flexibility действия

formationподавать документы на регистрацию

durationголосование дата окончания

to file papersпередача имущества

vote голосование

expiry date transferability Дата истечения срока действия переносимость

Assignment. Write a short essay on:

Sole Proprietorships, their advantages and disadvantages.

Partnerships, their types, their advantages and disadvantages.

Corporations, their advantages and disadvantages.

The purpose of a Board of Directors in a Corporation.

Major duties of a Board of Directors in a Corporation

Text 1

Macroeconomics

The word macroeconomics means economics in the large. The macroeconomist’s concerns are with such global questions as total production, total employment, therate of change of overall prices, the rate of economicgrowth, and so on. The questions asked by the macroeconomist are in terms of broadaggregates — what determines the spending of allconsumers as opposed to the microeconomic question of how the spending decisionsof individual households are made; what determines the capital spending of all firms combined as opposed to the decision to build a new factory by a single firm; what determines total unemployment in the economy as opposed to why there have beenlayoffs in a specific industry.

Macroeconomists measure overall economic activity; analyze thedeterminants of such activity by the use of macroeconomic theory: forecast future economic activity; and attempt to formulate policy responses designed toreconcile forecasts with target values of production, employment, and prices,

An important task of macroeconomics is to develop ways of aggregating thevalues of the economic activitiesof individuals and firms intomeaningful totals. To thisend such concepts asgross domestic product (GDP), national income, personal income, and personal disposableincome have been developed.

Macroeconomic analysis attempts to explain how the magnitudes of the principal macroeconomic variables are determined and how they interact. And through the development of theories of the business cycle and economic growth, macroeconomics helps to explain the dynamics of how these aggregates move over time.

Macroeconomics is concerned with such major policy issues as the attainment* andmaintenance of full employment andprice stability. Considerable effort must first be expended to determine what goals could be achieved. Experience teaches that it would not be possible toeliminate inflation entirely without inducing a major recession combined with high unemployment. Similarly, an overambitious employment target would producelabor shortages and wage inflation.

During the 1960s it was believed that unemployment could be reduced to 4 percent of the labor force without causing inflation. More recent experience suggests that reduction of unemployment to 5.5 percent of the labour force is about as well as we can do.

VOCABUALARY

total production - общаяпроизводительность

total employment - общая

занятостьthe rate of change of

overall prices - коэффи­циент изменений пре­дельных цен

rate of economic growth — темпы экономического роста

broad aggregates - масш­табные совокупности

individual households - ин­дивидуальные хозяйства

layoff - увольнение economic

activity — эконо­мическая активность

determinants — показате­ли, определители

values — ценности meaningful totals - значи­мые итоги

gross domestic product (GDP) — валовой внут­ренний продукт (ВВП)national income — нацио­нальный доход

personal income — личныйдоход

personal disposable income -

личный доход после уплаты налогов

business cycle — экономи­ческий цикл

economic growth — эконо­мическийрост

attainment — достижения maintenance — поддержа­ние, содержание

price stability — стабиль­ность цен eliminate — ликвидиро­вать, исключать

labor shortage — нехватка рабочей силы

reduction — уменьшение

General understanding

What does the word macroeconomics mean?

What are the concerns of a macroeconomist?

What is the difference between the questions asked by macroeconomists and microeconomics?

What is, according to the text, the important task of macroeconomist?

What does macroeconomic analysis attempt to explain?

What are the concepts of macroeconomics?

What are the most important theories of macroeconomics?

What is said about the correlation between the inflation and unemployment?

Macroeconomics vs. microeconomics. Fill in the table to show the difference between:

Which of the following statements are true about macroeconomics and macroeconomists:

Macroeconomics deals with global questions only.

Macroeconomics means economics in the large because it asks more questions than microeconomics.

Macroeconomist analyzes activities of families and large firms.

Such concepts as gross domestic product, national income and personal disposable income serve as meaningful totals.

Macroeconomic analysis shows the development of the economic theory.

Theory of business cycles concerns business. That is why this is a microeconomic theory.

Inflation could not be eliminated without some negative changes in economics.

More recent experience proves that macroeconomists of 60s were wrong.

Translate into Russian:

The questions asked by the macroeconomist are in terms of broad aggregates.

What determines the capital spending of all firms combined as opposed to the decision to build a new factory by a single firm?

Macroeconomists measure overall economic activity; analyze thedeterminants of such activity by the use of macroeconomic theory.

Macroeconomic analysis attempts to explain how the magnitudes of the principal macroeconomic variables are determined.

Considerable effort must first be expended to determine what goals could be achieved.

More recent experience suggests the reduction of unemployment to 5.5 percent of the labor force.

Experience teaches that it would not be possible to eliminate inflation entirely.

Explain in your own words the importance and practical applications of the following concepts. (Give Russian equivalents):

total production

total employment

the rate of change of overall prices

GDP

national income

personal income

personal disposable income

Are you able to answer the following macro- economic questions (If not, explain why it is impos­sible):

What determines the spending of all consumers?

What determines the capital spending?

What determines the capital spending of all firms?

Questions for discussion:

Was there a difference between macroeconomics and microeconomics in the Soviet economics? In 18th century? In 19^thcentury?

What is more important for economy in general - microeconomics or macroeconomics?

Is there a difference in analyzing macroeconomic and microeconomic problems?