4. Answer the questions:

1. What are the responsibilities of a board of directors in a corporation? Name them.

2. What are the major duties of a Board of Directors?

3. What can we call an effective board of directors?

TEXT B

1. Find Russian equivalents for the following English phrases

Independently owned and operated, not dominant in its field, size standards vary, the most workable concept, a small part of the overall industry, technical geniuses, striving to produce and market scientific innovation, to transform an idea into commercial reality, provide a product or service more cheaply than large firms, to earn a profit on a lower price than a large company can offer.

2. Match the words with their definitions

1. competitor	a) having primary control, authority, or influence
2. marketplace	b) of a kind never before existing
3. overhead costs	c)
4. large-scale	d)
5. new concept	e) the commercial world of buying and selling
6. dominant	f) a person, group, team, firm, etc., that vies or competes; rival

3. Read the text What is a Small Business?1

Small business is independently owned and operated. It is not dominant in its field, and meets a variety of size standards. These size standards vary. Some standards apply only for various special programs. In general, a small business has the following characteristics:

• Independently owned

• Independently operated and managed

• Only a minor factor in its industry

• Fewer than 400 employees

• Limited capital resources

Small business is found in nearly every industry in the United States. They often compete against some of the nation’s largest organizations as well as against a multitude of other small companies. Retailing and service establishments are the most common small businesses. Also new technology companies often start as small organizations.

For the most part farming is still small business. The family farm is a classical example of small business operation.

Small businesses are not simply smaller versions of large corporations. Their legal organization, market position, staff capability, managerial style and organization, and financial resources generally differ from a bigger company which give them some unique advantages over large-scale competitors. Innovative behavior, lower costs and the filling of isolated market niches are some of the most important of these advantages.

Small firms are often the companies who first offer innovations, new concepts, and new products in the marketplace. Federal Express and Apple Computer are examples of success stories. In fact, it is estimated that the formation of small high-technology firms doubled in recent years.

Small firms can often provide a product or service more cheaply than large firms. They usually have fewer overhead costs – those not directly related to providing the goods and services – than to the large firms. Thus, they may be able to earn profit on a lower price than a large company can offer.

Small businesses have organizations with small staffs and fewer support personnel. The lower overhead costs resulting from fewer permanent staff people can provide a distinct advantage to small business.

Big businesses are excluded from some commercial activities because of their size. High overhead costs force them to set minimum targets at which to direct their competitive efforts. This situation allows substantial opportunities for smaller publishers with lower overhead costs.

In addition, certain types of businesses lend themselves better to smaller firms. Many services illustrate this point. Finally, economic and organizational factors may dedicate that an industry consists of small firms.

Smaller firms have a variety of disadvantages. These include poor management, inadequate financing, and government regulation.

Hundreds of thousands of small businesses are begun each year. Thirty percent fail within the first year, and half within two years. For every 15 small businesses that open their doors, 10 close for voluntary or financial reasons. A great many of these failures can be attributed to poor management. Most people who start small businesses are ill-prepared as managers.