Exercises

Ex.1. Find where in the text it is said about the points given below.

1. Meaning of the sole proprietor type of firm;

2. The existence of advantages and disadvantages of the sole proprietor type of firm;

3. The main reason for a company to raise more finance;

4. The issue of continuity of existence of a company;

5. The advantage of public company over private one.

Ex.2. Find the terms in the text which designate the following:

1. one and only owner of a business;

2. responsibility of each shareholder limited to the amount that they have contributed;

3. to become a public limited company;

4. shares that are easily sold;

5. tax on property consisting of much land and usually a large house;

6. something that can`t be converted into cash;

7. place for dealing in stocks.

Ex.3. Say if the following statements are true or false:

1. With the sole proprietor type of firm ownership lies in the hands of an individual.

2. The sole proprietor is restricted to his own financial resources.

3. In the UK economy companies are more common than sole proprietors.

4. A private company can appeal to general public.

5. The existence of limited liability for shareholders is an encouragement to invest in shares.

6. Company is more likely to achieve a greater continuity of existence.

7. Shares of a private company aren`t negotiable.

Ex. 4. Answer the following questions:

1. How does the sole proprietor type of firm differ from the company?

2. What type of business has more advantages? Why?

3. What type of business has more disadvantages? Why?

4. Are companies in a position to raise more money than sole proprietor businesses? How can they do it?

5. Why do companies need to raise large quantities of finance?

6. How is it possible to encourage people to invest in shares?

7. If shares have been purchased in a company, are they redeemable?

8. Are shareholders forced to have their money tied up in a particular company?

9. If shares are freely negotiable, can they be sold to another investor at any time?

Ex. 5. Explain the essence of each business organization type: company and sole proprietor.

Ex. 6. Describe the difference between public and private company.

Ex. 7. Prove that company and sole proprietor have their own advantages and disadvantages.

Ex. 8. Make up a plan covering the main ideas. Discuss the text according to the plan.

Ex. 9. Discussion points:

1. What is the most common type of business organization in Ukraine? Why? Give examples of Ukrainian private and public companies.

2. You are a prosperous businessman. What type of business do you own: a company or a sole proprietorship? Why?

UNIT 4

International financial institutions

Read and memorize the following words, words combinations and word-groups:

Transition – перехід до ринкової економіки

Leading investor – провідний інвестор

Countries of CIS – країни СНД

To set up - засновувати

To remove infrastructure bottlenecks – усувати недоліки інфраструктури

To hamper – гальмувати, ускладнювати

Endeavour – спроба, намагання

To take into account – приймати до уваги

Participation - участь

Overall – повний, загальний

Benefit – прибуток, користь

ECU – European Currency Unit (Умовна грошова одиниця Європи)

Key mandate – головне забов`язання, провідна мета

To foster – заохотити, прискорити

Framework – основа, загальна структура

To highlight – наголошувати, підкреслювати

Sustained effort – тривале зусилля

Coherent approach – послідовний підхід

Implementation – упровадження, виконання

Testimony - свідчення

To seek - шукати

Commitment - забов`язання

Vibrant – завзятий, натхнений

Equity stake – участь у прибутку, частка в компаніїї (через пакет акцій)

Long-term debt-financing – довгострокове фінансування боргу

Equity subsription – внесок частини акцій

Venture capital – ризиковий капітал

venture capital fund – інвестиційний фонд