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Lecture 3 business organizations

Outline:

1. Preliminary remarks

2. The difference between business and non-business organizations

3. Terms for business organizations

4. The major forms of business organizations

4.1. Sole/single proprietorship

4.2. Partnership

4.3. Corporation

Key words: business organization, company, concern, conglomerate, corporation, enterprise, firm, forms of business organizations, giant, partnership, partnership at will, partnership for a fixed time, general partnership, limited partnership, sole/single proprietorship.

Lead-in:

1. What do you understand by business organizations? Can you give any examples of business organizations?

2. What types of companies do you know?

3. What is the difference between a small company and a multinational company?

1. Preliminary remarks

Business is the lifeblood of society. During the life every person is more or less connected with various business organizations. Every day, millions of people spend their money on goods or services provided by businesses which can vary in size, from the self-employed person working alone, through the small or medium enterprise to the large multinational company with activities in several countries.

2. The difference between business and non-business organizations

Organizations may be classified by whether or not they attempt to earn a profit. Profits result from selling goods and services to customers at prices greater than the cost of the items sold.

Organizations that sell their goods and services to make a profit are business organizations.

Governmental and nonprofit organizations, sometimes referred to as non-business organizations, provide goods or, more typically, services without the intent of making a profit. Non-business organizations include civil, social and religious organizations.

Some types of services, such as education and healthcare services, are provided by both business and non-business organizations. Although the products are similar, the goals of the organizations providing these services are different.

3. Terms for business organizations

In the English language there are special terms denoting different business organizations. Among them we can name “business”, “company”, “concern”, “conglomerate”, “corporation”, “enterprise”, “firm”, “giant”.

Business is an organization such as a company, shop, or factory that produces or sells goods or provides services.

You should know that “business” is used with the indefinite article to mean a specific shop or a company.

Example: She has a small hair salon business.

This has the plural “businesses”.

“Business” without the indefinite article means commerce or trade.

Example: Business is thriving at the moment.

In this sentence, “business” is an uncountable noun.

Company is a business organization that makes or sells goods or services.

Example: He runs a software company.

“Company” is often used in the following combinations:

• a computer/phone/oil etc company;

• a manufacturing/shipping/publishing etc company;

• a small company/an international company (with offices in different countries);

• a multinational/a multinational company (a very large company with offices in many different countries);

• a parent company (the one that owns or controls a smaller one);

• a subsidiary company (owned or controlled by a larger company).

Concern is a business or company.

Example: The restaurant is a family concern.

Firm is a business or company, especially a small one.

Example: Sarah works for an electronics firm.

“Firm” is used in the following combinations:

• electronics/advertising/law etc firm;

• a firm of accountants/solicitors/builders etc.

Enterprise is a company, organization, or business. This term is used in a positive way to talk about business, emphasizing the use of money to invest in new activities with a certain amount of risk involved.

“Enterprise” is often used in these combinations:

• free/private enterprise – business activity owned by individuals rather than the state;

• enterprise culture – when people are encouraged to make money through their own activities and not really on the government;

• enterprise economy – an economy where there is an enterprise culture;

• enterprise zone – a part of a country where business is encouraged because there are less strict laws, lower taxes, etc.

Having examined five terms, we can say that a business, company or firm, or more formally, a concern, sells goods or services. We can talk about a company or a

particular activity as an enterprise, especially to emphasize its risk-taking nature.

Conglomerate is a very large organization that consists of several different companies dealing with widely diversified goods, services, etc.

Example: The company was taken over by a German media conglomerate.

Corporation is a large organization or company that often includes several smaller companies.

Example: IBM is one of the biggest corporations in the world.

In addition, you should know that the adjective “corporate” (belonging to or relating to a corporation) is used to talk about a big company or big companies in general. The word “corporate” is often used in the following combinations:

• corporate culture – the way a company’s employees think and behave;

• corporate ladder – the different levels of management in a company;

• corporate headquarters – a company’s main office;

• corporate identity – the way a company presents itself to the public;

• corporate logo – a symbol used by a company on its products, advertisements;

• corporate image – all the ideas, opinions, etc. that people have about a company;

• corporate profits – the money made by companies.

Giant is a term used mainly by newspapers for a very large company.

Example: Their clients include the retail giant, Wal-Mart.