Language practice and Speaking

18. Find out advantages and disadvantages of the form of business described.

19. Work in pairs and discuss advantages and disadvantages of the two forms of business: sole proprietor and partnership. Text c

20.Read and translate the text

The joint stock venture

The most important form of business organisation in the UK is the joint stock company. Basically, it consists of an association of people who contribute towards a joint stock of capital for the purpose of carrying on business with a view to profit. A company may be defined as a legal person created to engage in business, capable of owning productive assets, of entering into contracts, and of employing labour in the same way as an individual. There are two kinds of joint stock company, the private company and the public company. In 1986 there were some 860 000 joint stock companies in the UK, of which about 6000 were public companies. The public companies are much larger units and account for about two-thirds of all the capital employed by companies. In general, private companies are small firms, often consisting of the members of one family. Both public and private companies must have at least 2 members. A public company must have a minimum allotted share capital of 50 000 pounds (sterling) of which at least one-quarter has been paid up. A private company must include the word limited in its name while a public company must have the words public limited company at the end of its name although this can be abbreviated to plc. The basic distinction between a private and a public company is that a public company can offer its shares and debentures for sale to the general public. In the case of a private company it would be a criminal offence to ask

the public to subscribe to its shares. All companies must file annually, with the Registrar of Companies, details of their turnover, profits, assets, liabilities and other relevant financial information about their structures and activities.

Language practice and Speaking

21. Compose 6 -7 questions to the text.

22. Using the questions from exercise 2 make up a dialogue on the topic: “The Joint Stock Company”.

23. Work in pairs. Using the questions from the previous exercise and compose a dialogue on the topic “Join Stock Company”.

24. Imagine you are a teacher of Economics having a task to explain the first year students the notion “Join Stock Company”. Make a brief and clear report on the subject.

UNIT 2

MANAGEMENT

Vocabulary (часть 1)

1. Remember the following words and word combinations by heart

1. to prompt – подсказывать, приглашать

2. to state – констатировать

3. reasonably – разумно, приемлемо

4. neatly packaged – аккуратно упакован

5. messy – неряшливый

6. prerequisite – предпосылка, необходимое условие

7. particular setting – конкретная постановка

8. truism – банальность

9. profit – прибыль

10. attainment – достижение

11. shareholder – акционер, пайщик

12. target – цель, мишень

13. to weigh – весить

14. solely – только

15. benefit-cost criterion – критерий издержек и прибылей

16. means – средства

Text A