a)the guarantee of limited liability
b)amounts of funds of the company
c)the authority of the company on the international market
3.In the United States most companies bear the name …
a)Public Limited Company
b)Limited
c)Incorporated
INCREASE YOUR VOCABULARY
Exercise 1. Match the synonyms.
1. affect |
a. have |
2. end up |
b. influence |
3. start |
c. invest |
4. indicate |
d. finish |
5. own |
e. begin |
|
f. land |
|
g. pay |
Exercise 2. What attributes are not suitable to the given terms?
1.investment – high-risk, initial, responsible, foreign, heavy, unpaid, small, profitable.
2.deficit – trade, political, financial, profitable, food, budget.
3.security – guaranteed, economic, independent, public, high, financial, available, national.
LANGUAGE ACTIVITY
Exercise 1. Insert prepositions (to, between, of, on, in) where necessary.
1.Public companies allow people to have shares traded … stock exchanges.
2.Today we have a meeting of the owners … our company.
3.I lost all money that I had invested … these shares.
4.Is there any distinction … public and private companies?
5.In some private companies the shares are not available … the general public.
6.A budget deficit affects … trade deficit.
Exercise 2. Translate from English into Russian paying attention to the equivalents of modal verbs.
1.After graduating from our faculty he was able to work as economist.
2.The doctor said that now I was allowed to work.
3.Because of a high budget deficit the company has to reduce its expenditures.
4.Our manager is to call me at 9.
5.Some large companies are not permitted to trade their shares to general public.
6.The firm was not able to pay back the money owed to its creditors.
7.The terms of delivery goods didn’t have to be infringed.
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Exercise 3. Answer the questions using modal verbs or their equivalents.
1.What can people own in capitalist countries?
2.Are you able to continue your business?
3.When are you to pay your debts?
4.What can happen to investors, if the company fails?
5.Do the owner of a company have to pay more than they had invested in it?
6.Privately owned large companies mustn’t have their shares traded on stock exchange?
Exercise 4. Summarize your knowledge of Modal Verbs. Complete sentences with suitable verbs.
1.Internet … be available to any schoolchild in Russia.
1– need
2– must
3– couldn’t
2.If you wish to have cheap and fast correspondence, you … use e-mail.
1– ought to
2– can’t
3– must
3.Even with the biggest computers available today, we still … reliably predict the weather for next week.
1 – can
2 – cannot
3 – mustn’t
4.Foreign language translation … prove to be a bit more complicated than a computer can handle.
1 – may
2 – must
3 – should
5. The ethics is the study of what is right to do in a given situation, or what we … do. 1 – could
2 – ought to
3 – need
Exercise 5. Complete the text with: had to, didn’t have to, couldn’t, should, should have.
One day I … travel for Brazil. But when I got to Heathrow airport they told me that the flight was overbooked and I … to wait for the next plane. Then I was told that I … take both my bags and hand luggage, so I left one of them in the hold. It was very annoying as I had my diary in it and I needed it. When I got on the plane I wanted to
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use my laptop, but of course I … until after take off. Besides, I was told that I … know not to use it. It was quite late when I finally left Brazil airport (because of my second bag that I … wait from the hold). I was lucky that I … go to any business meeting that afternoon. I went directly to the hotel as I needed a good rest.
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UNIT XVI
WORD STUDY
Exercise 1. Check the transcription in a dictionary, read and translate the words listed below.
Nouns
share, benefit, dividend, reward, agreement, return, store, ownership, light, bulb, equity.
Verbs
certify, reduce, eliminate.
Adjectives
worthless, stable, original.
Exercise 2. From the verbs given below make nouns according to the model. Compare the meaning of the verbs and of the nouns.
Model: to limit – the limit – предел;
to state, to look, to cause, to reward, to return, to share, to surge, to trade, to fall.
UNDERSTANDING THE PRINTED TEXT
WHAT IS EQUITY?
1.Ownership in a company, called equity, is certified through pieces of papercalled shares or stock-that state that "the holder of this share owns a part of this company."
2.When the company makes a profit, its owners share in the benefits by receiving a dividend or by selling their shares for more money than they originally paid. When the company loses money, however, the dividends are reduced or eliminated and the share price tends to fall.
In the worst case, the company goes bankrupt, owing more than it can pay. The shares then become worthless and the owners lose all the money invested in them.
3.A company's shareholders are paid last after the suppliers, after the banks, and after the bondholders. The risk it that there may be nothing left for stockholders after everyone else has been paid off. The reward is that when a company earns a lot, the stockholders get it all. With equity, there is higher risk but also the opportunity for greater reward.
4.All investments involve a certain amount of risk, but a stock is generally considered much more risky than a bond, which is an agreement by the company to pay a specific amount of money at a specific time. In contrast to the fixed income of a bond, the return on an equity investment is unknown. To reward investors for this risk, equity tends to provide a higher return, either in the form of dividend payments or by an increase in value, when the company retains its earnings. Stocks often rise and fall in value rapidly, while bonds tend to be more stable. Bondholders are
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