Lesson 2

Task 1. a) Reveal the meaning of the words and phrases in bold in the following example sentences.

Vocabulary building Starting a business

The group was created in 2001 through a merger of three banks. They are forming a joint venture with a Canadian manufacturer. She set herself up as a management consultant. We set up a company to market the products. He had always wanted to start up his own business.

b) Make up sentences with the above words and word combinations.

Task 2. Read and translate the passage.

Undoubtedly family business represents the most lasting type of business.

Before the multinational corporation, there was family business. Before the Industrial Revolution, there was family business. Before the enlightenment of Greece and the empire of Rome, there was family business.

Some oldest family businesses can surely state that they managed to outlast governments, nations and cities. But most importantly these family businesses outlasted once mighty transnational corporations.

Vocabulary and Cultural Notes:

1. undoubtedly [An`dautıdli] – безсумнівно; беззаперечно;

2. lasting [`lα:stıŋ] – тривалий; тривкий, міцний;

3. Industrial Revolution [ın`dAstriəl ֽrevə`lu:∫^ən] – the rapid development of industry that occurred in Britain in the late 18th and 19^th centuries, brought about by the introduction of machinery. It was characterized by the use of steam power, the growth of factories, and the mass production of manufactured goods

4. enlightenment (of Greece / Rome) [ın`laıt^ənmənt] – освіченість; освіта; просвіта;

5. to state – заявляти; стверджувати;

6. to outlast [ֽaut`lα:st] – тривати довше, ніж; пережити;

7. mighty [`maıti] – могутній.

Task 3. Study the following terms.

Vocabulary building Subsidiaries and groups of companies

A subsidiary is a company that is controlled by another company, called a holding company or a parent company. Parent company is more common when referring to a company that is the main owner of a subsidiary and operates in the same type of business: Citigroup, the parent company of Citibank. Holding company often describes a company that owns shares in different types of businesses and may or may not carry out its own business activities: The holding company owns 25% of each of the regional banks. Zest ventures is a holding company for the family’s publishing and property interests. Companies that are subsidiaries of the same holding / parent company are often called sister companies, related companies or affiliates: We share customer information with our affiliates. A holding / parent company and its subsidiaries are called a group or group of companies. Often the word Holdings or Group is used in the names of holding / parent companies: InterContinental Hotels Group, parent company of Holiday Inn.

Task 4. Use the words in the box to fill in the blanks.

joint

affiliates

multinationals

parent company

subsidiary company

(1)_____ is a company of which more than half the share-capital is owned by another company, called either a holding company or a (2)_____. The subsidiaries of the same parent or holding company are said to be (3)_____. Many well-known companies are (4)_____, these are companies which operate in a number of countries.

A joint-stock company is a company in which the members pool their stock, trading on the basis of their (5)_____ stock.

Task 5. a) The words in the box frequently occur before “COMPANY”.

transnational			manufacturing
	bogus	phony
public			service
	affiliate	wild cat
domestic			open-end
	one-man	overseas
vendor			holding
	shell	close
registered			engineering

b) Which of the above word combinations can be translated as:

1. дочірня компанія;

2. фіктивна компанія;

3. виробнича компанія;

4. компанія-одноденка;

5. вітчизняна компанія;

6. транснаціональна компанія;

7. компанія, яка займається аферами;

8. компанія, яка має представництво за кордоном;

9. інжинірингова компанія, машинобудівна компані;

10. відкрита / публічна акціонерна компанія; відкрите / публічне акціонерне товариство;

11. зареєстрована компанія (така, що отримала ліцензію на здійснення тих чи інших операцій);

12. компанія з обслуговування; спеціалізована фірма з надання послуг;

13. компанія-постачальник;

14. акціонерна компанія, контрольована однією особою; акціонерна компанія, що складається зх однієї особи;

15. компанія, що володіє контрольними пакетами акцій інших компаній; компанія-засновниця; холдингова компанія;

16. компанія закритого типу (компанія, акціонерний капітал якої контролюється невеликою (біля п’яти людей) групою осіб);

17. компанія відкритого типу (компанія, акціонери якої можуть відчужувати акції, які їм належать, без згоди інших акціонерів);

18. “поштова скринька” (офіційно зареєстрована компанія, яка не має активів і не здійснює операції, а зазвичай створюється для полегшення податкового тиску або для здійснення незаконних угод)?

Task 6. a) Read and translate the passage.

Coca-Cola is a great business – everybody can agree on that. But what we may not agree on is why it’s a great business. Sure, it sells lots of caffeinated sugar water, but – and this may come as a shock to you – soft drinks aren’t the most important thing Coca-Cola sells.

Investing legend Charlie Munger got to the heart of the matter when he asked former Coca-Cola President Don Keough just what exactly Coke’s business is. Keough responded, “To create and maintain conditioned reflexes.”

See, any business can sell a product. But great businesses know how to influence consumers in a way that keeps them buying products – and, in the process, generates lots of value for investors.

b) Think and answer.

1. Do you agree that Coca-Cola is a great business? Why?

2. Soft drinks aren’t the most important thing Coca-Cola sells, are they?

3. What is Charlie Munger famous for? What question did he ask former Coca-Cola President Don Keough?

4. Did Charlie Munger get to the heart of the matter when he asked that question?

5. What did Keough respond? Do you find the answer unexpected?

6. What distinguishes ordinary businesses from great businesses?

7. How would you entitle the passage?

Task 7. Read and translate the passages below.