5. Explain the following English words and word combinations in your own words.

To choke, to stifle entrepreneurial flair, litigious environment, string of directives, to be set for, legal frameworks, a mounting challenge, to trail in third place, to reckon.

6. Decide which of the following statements are right and which are wrong. Give the correct variants.

1. Wronged consumers will no longer have to prove the supplier was negligent.

2. French companies were followed by British rivals, with Asian companies trailing in third place.

3. Now the focus is on assets: factories and equipment, which are the sources of revenues.

4. The reason for the present focus is the dramatic change in the nature of many west European businesses.

5. The issues of compliance present a mounting challenge in the European Union, where the regulatory environment is stable.

6. Tightening rules on corporate governance, directors and officers’ liability, and product safety are essential to corporate success.

7. Reputation can ruin in 10 minutes what was once a profitable business.

8. The European Commission is harmonising the European market with a string of directives.

7. Make up your own sentences using the words and word combinations given below.

To become risk-averse, to stifle entrepreneurial flair, to wither away, to squeeze entrepreneurial flair, to add value, to adopt positive risk management, to be embraced in the search for profit, risk management techniques, to target compliance with regulations, faulty products, to be liable for damages, to implement a directive, to reinforce pressure, to focus on risk management, to tackle a risk, to trail in third place, to contract out many manufacturing operations, to slim the number of suppliers, to avoid a reputational risk.

8. Match the following kinds of risk insurance with their explanations.

Property Fire	Covers home and its contents, pays for shelter if forced from home due to insured damages, third-party liability, and medical payments to others
Farm insurance	Covers boats and their cargo and airplanes and their cargo
Homeowner’s	Covers property and liability risks on farms
Automobile	Firms buy life insurance to protect against the loss of key executives and workers. Small businesses are especially vulnerable to losing their owner or manager
Health	Such insurance usually covers property damage, bodily injury, collision (including damage to company cars), fire, theft, vandalism, and other related vehicle losses
Marine and aviation	Usually the firm pays part of the cost of employee health insurance
Life	This very important insurance protects against legal claims from injuries caused by the firm’s products or operations. Workers’ compensation that covers injuries sustained on the job is a form of liability insurance
Criminal loss and non-performance protection	A comprehensive policy of this type covers damage from fire, theft, windstorm, and earthquake
Liability	Special insurance may be needed to cover employee theft and losses from break-ins. Covers losses from failure of a contactor, supplier, or other person to fulfil an obligation, as well as losses caused by the firm being closed due to damages