Irredeemable

There is no fixed date for payment of irredeemable debentures; the loan is only repaid when the company is liquidated. Holders of irredeemable debentures may ask the company to redeem them if it fails to keep up its interest payments.

Convertible - can be ex-debentures changed for ordinary shares.

2.Частное предпринимательство. Партнерство.

Business ownership

1. Sole trader – earliest form of business, owned and managed by one person (hired staff – not proprietors).

Registration in trade register, license, books reflecting the results of business activities.

Advantages:

• _{easy to set up} (if you have capital)

• _{confidential finances}

• _{sole possession of profits}

• _{freedom in decisions}

• _offer personal service

• _{can adapt to social needs}

• _{keep profit for yourself}

Disadvantages:

• _{unlimited liability} (responsible for all debts himself, can be made to sell his posessions)

• _{limited capital for new projects}

• _{tied to business} (a lot of work to be done)

2. Partnership (unlimited) – joint property and capital of its members (up to 20 people), profit distributed proportionately to the share of participation, equal and collective responsibility;

Registration: any name, but must not add ‘Ltd.’

Advantages:

• _{more capital available}

• _{new ideas}

• _{easy to form}: no complex legal problems

• _{sharing of work} by partners

• _{losses shared} among partners

• _{specialization in professional partnerships}

Disadvantages:

• limited capital for a large scale business

• disagreements possible

• unlimited liability (personal possessions can be sold)

• no continuity (partnership breaks up on the death, retirement, bankruptcy)

Limited (or sleeping) Partnerships – if there is at least one working partner with unlimited liability, others can invest capital in a firm. They are not aloud to do any work, but share in profits. They have to share in any losses (but up to the amount they have put in)

3.Понятие розничной/оптовой торговли. Проблемы британских предпринимателей на американском рынке. Факторы успеха.

Retailing and wholesale

Wholesale – sale of commodities (товары) in quantity for resale.

Retailing – selling products to general public.

Outlets – shops or stores for retailing.

Large retail chains are organized nationally and sell standardized selection of products (their outlets in shopping centres (US malls): large variety of stores in the same location).

Hypermarkets (over 30,000 sq. m.) or superstores (under 30,000) – of town locations with parking facilities.

Department stores – large shops which sell a wide variety of products, usually from a city centre location (organized in departments, each with own manager).

Problems of British retailers in the US market:

• _{lack of cultural awareness} (assume that US and UK consumers have same tastes-what can be perceived as traditional, high quality merchandise in the UK may appear in US to be old fasioned)

• _{difference in whole structure of the industry and the way how the outlets organised} (us market is dominated by the malls, UK failed to grasp the size factor, not able to adapt to huge US market)

• _{underestimating the competition} (US retailers – aggressive players, consumers – bargain hunters, industry changes quickly, requires flexibility and being dynamic)

• _{choosing wrong places for stores} (expensive town centre locations)

• _{UK don}’t see the differences: assume that US and UK consumers have the same tastes and give preference to the same products as they have the same language.

• _{Traditional merchandazing (usually of high quality in the UK) may appear to be old-fashioned and out of touch in the USA}

• _{difference in whole structure of the industry and the way how outlets organized (US market is dominated by the malls (usually out of town locations with parking facilities), it cost a fortune to go into business in the USA. UK failed to gasp (}зажимать) the size factor, not able to adapt to huge US market, UK usually operate from small shops in town center locations which are expensive)

• _{underestimating the competition (US retailers - aggressive players, consumers - bargain hunters, look for discounts, industry changes quickly, requires flexibility and being dynamic)}

Richer Sounds' Keys to Success in Rretail Business:

• _{end-of-line or surplus} (избыточный) equipment

• _suppliers – manufacturers hoping to off-load the end-of-line equipment (often at a discount price)

• _outlets – 28 small stores in UK (walk-in warehouses), “bargain bins”, special offers, equipment stacked from floor to ceiling, banners hanging

• _regular advertising in national newspapers (they buy late space at a discount)

• _{customer service training}: not to be pushy, to take responsibility, follow the correct administrative procedures, attend training seminars at Richer’s country house

• _{free phone number} on customer receipts to dial in case of problem

• _{seasonal gifts and gifts-away offered}

• _{staff motivation:} customer service competition – win a car and petrol for month, gold aeroplane badges handed out to “high fliers”

Safeway Superior Service Program

• _{eye contact with the customer}

• _{smile, greet, offer samples of products, accompany to locate items, thank shoppers by name}

• _“mystery shoppers” to control performance

• _{staff motivation:} $500 worth of company stock, additional bonuses

• _{side effects}: customers’ debates about false and genuine frendliness, misinterpretation of friendliness, growing morale problems among the staff