Ex. 4. Put 8-10 questions on the text so that they cover its content. Text 2. How a corporation operates

1. The way a corporation is run reflects the nature of its business and the attitudes of its management. No two business firms operate in exactly the same manner. However, nearly all corporations have a similar organization that includes (1) stockholders, (2) top management, and (3) specialized departments.

2. Stockholders, the owners of a corporation, vote on certain major questions of company policy and elect a board of directors¹ to head the firm. a) _ _ _ _ _ _ _. If they cannot attend the corporation's annual² meeting of stockholders, they may assign their votes to other shareholders by means of a document called a proxy³.

3. Top Management of a corporation consists of the board of directors and the executive officers. The board of directors determines basic company policies and appoints the executive officers. These officers include a chairman of the board or chief executive officer, a president, and a number of vice presidents. b) _ _ _ _ _ _ _. The executive officers also select the managers of the various departments of the corporation.

4. Specialized Departments. The number of departments in a corporation depends on the size of the company and on the nature of the goods and services that it provides. c) _ _ _ _ _ _ _. A manufacturing firm may need a research department to study ways of developing new products or improving existing ones. Most corporations have departments that handle three basic business activities – production, finance, and marketing.

5. The Production Department has the responsibility for every activity that helps produce a firm's goods and services. In a manufacturing company, the production department may employ industrial engineers, machine operators, and a plant maintenance crew⁴. The department may be headed⁵ by a production manager who reports to the vice president in charge of production.

6. The Finance Department handles all aspects of raising capital, making and receiving payments, and keeping financial records. It may include accountants⁶, bookkeepers⁷, and experts in statistics on its staff. Most finance departments are supervised by a controller⁸.

7. The Marketing Department deals with selling goods and services to consumers⁹. d) _ _ _ _ _ _ _. The department's staff may include specialists in advertising, market research¹⁰, and public relations. In most corporations, the department manager reports to the vice president in charge of marketing.

Notes: 1) правление; 2) ежегодный; 3) голосование по доверенности; 4) команда технического обслуживания; 5) возглавлять; 6) бухгалтер; 7) счетовод; 8) ревизор; 9) потребители; 10) исследование рынка.

COMPREHENSION CHECK

Ex. 1. Read the text. Decide which sentence goes in each of the gaps in the text:

1. They are responsible for carrying out the decisions of the board of directors and the stockholders.

2. It evaluates prices, consumer demand, promotional activities, and other factors that affect sales.

3. For example, a corporation with many employees may need a personnel department.

4. In most cases, stockholders have one vote for each share of company stock that they own.

Ex. 2. Translate paragraphs 2 and 3 in writing.

Ex. 3. Read the text again and choose the correct alternative for each of the following questions:

1. It's obligatory for shareholders to attend annual meetings as only they can vote, isn't it?

а) Yes, that's right.

в) No, it isn't. Because shareholders don't need to vote.

с) No, it isn't. Because they can vote by proxy.

2. What is the main responsibility of the board of directors?

1. To vote on certain major questions of company policy.

2. To determine basic company policies.

3. To head the corporation's annual meetings.

3. What does the number of departments in a corporation depend on?

1. It depends on the decisions of shareholders.

2. It depends on the size of the company and the nature of produced goods.

3. It depends on the decision of the board of directors.

4. Which departments are common in most corporations?

1. Production, finance and marketing.

2. Specialized departments.

3. Shareholders and top managers.

5. What does the Marketing Department deal with?

1. With selling goods and services to consumers.

2. With raising capital, making and receiving payments.

3. With selling goods, evaluating prices, promotional activities, and other factors that affect sales.