- •2 The Firm and Its Environment
- •2.1 Lead-in
- •2.2 Language input
- •Developing vocabulary
- •2.2.2 Match the English word combinations in the left-hand column with the Russian equivalents in the right-hand column:
- •2.3 Background information The Firm and Its Environment
- •Understanding the reading
- •Scanning
- •Scan the text to determine whether these statements are true (t) or false (f), and if they are false say why.
- •2.4.4 Match each of the phrases on the left with an appropriate explanation on the right. Use the grid below:
- •2.4.6 Scan the text again and find the English equivalents for the following:
- •Practice Language focus
- •2.5.3 A. Read the text, ignoring the missing parts.
- •Word-building
- •2.6 Dialogue 1
- •Types of securities
- •Mergers, Takeovers & Acquisitions
- •Supporting Materials
Understanding the reading
Give extensive answers to the questions. Use the following expressions to present your answers:
It ran through my mind that … .
… beyond the shadow of a doubt.
To begin with … .
I’m afraid I don’t know up from down … .*
Frankly speaking, I am in a real predicament … .**
What makes an entrepreneur choose partnership instead of sole proprietorship? What characteristics of the sole proprietorship do partnerships have? In what way do they differ?
Why is limited liability a mixed blessing?
Why are lawyers, doctors and accountants prohibited from forming companies with limited liability in some countries?
Why are the majority of businesses all over the world limited companies? What does it mean? What are the advantages of corporations over the other forms of businesses?
What disadvantages do the corporations face?
What are the rights and duties of a corporation? What should be done in order to be legally recognized as a corporation?
What is a share of stock? What role do the stockholders play in the activities of a corporation? Who runs the day-to-day operation of the corporation?
What is a dividend? Who decides in what way the profit of the company should be distributed?
Why do many corporations arrange for management to own shares of stock?
What is understood by a public limited company in Great Britain? In what way does it differ from the similar businesses in the USA?
Scanning
Scan the text to determine whether these statements are true (t) or false (f), and if they are false say why.
e.g. In my opinion it is true that ... / I’m afraid it is false that ... because ...
1.
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If the business has debts and one of the partners dies, the others are barely responsible for his debts. |
2.
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Corporations are easy to organize, decisions can be made quickly, profits are shared with only a few people, and the owners are responsible for success or failure of the business. |
3.
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If the corporation goes bankrupt or is sued, the stockholders lose the value of their stock. They are personally responsible for any money the corporation owes. |
4. |
Bonds represent ownership in the corporation. |
5. |
In corporations with many owners or stockholders the individual share of profits in the form of dividends is comparatively small. |
2.4.4 Match each of the phrases on the left with an appropriate explanation on the right. Use the grid below:
1. |
company (UK) / corporation (US) |
A |
a company whose shares are not publicly available |
2. |
public company
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B |
an organization which is part of the state organisation |
3. |
private company |
C |
an organization operating to make a profit |
4. |
cooperative |
D |
a company which owns another |
5. |
enterprise |
E |
a firm where shareholders’ liability is limited |
6. |
government agency |
F |
firm owned by a parent company |
7. |
limited company
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G |
documents showing income, expenditure, assets and liabilities, sales records, etc. |
8. |
offshore company
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H |
two or more partners working together for profit, without limited liability |
9. |
minority interest |
I |
a new commercial activity |
10. |
parent company
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J |
cash items, or items that can easily be changed into cash for the present financial year |
11. |
partnership
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K |
a company whose shares are publicly available |
12. |
subsidiary (affiliate) |
L |
items of value which are not easily changed into cash but which the business needs. |
13. |
company accounts
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M |
a firm based in a tax haven to avoid higher taxation |
14. |
fixed assets |
N |
a democratic firm owned by its workers |
15. |
current assets |
O |
company in which another firm has less than a 50% interest |
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4 |
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8 |
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10 |
11 |
12 |
13 |
14 |
15 |
C |
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2.4.5 There are five main types of legally constituted company. Tick the correct characteristics for each business type, or write “possibly” if the characteristic could apply. Give a brief description of the companies:
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public limited company |
private limited company |
sole trader |
partnership |
co-operative |
single individual owns a company |
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two or more owners / directors |
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quoted on stock exchange |
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workers run the company |
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unlimited liability |
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limited liability |
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owner is self-employed |
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