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The idea of workers establishing their own production units, raising the capital by their own efforts, electing the management from their own ranks, and sharing the profits according to some agreed formula, is quite an old one. Some of these workers' cooperatives have been launched with government money and have been established as a result of workers' refusal to accept management's views that the firm is not viable and must be closed down. This type of business organisation has proved very successful in agriculture and forestry. The basic principles on which the consumers' co-operatives are founded are:

1)the society is owned by the customers who purchased at least one share;

2)the profits are distributed according to the value of a member's purchase and are known as dividends;

3)the society is democratically controlled on the basis of 'one member vote'.

The members of each society elect a management committee which is responsible for the general policy, but the day-to-day operations are in the hands of full-time salaried officials appointed by the management committee. The Coops have been forced to merge themselves into larger units in order to obtain the economies of scale to compete with the very large retail organisations which have developed in recent years. Nowadays the co-operative societies seek to widen their markets and to extend the workers' and consumers' control both through their own activities and in supporting political movements which advocate their principles.

Exercise 1. Underline the predicates and define their Voice (Passive or Active)

1. Co-operative enterprises have basically two forms.

2. One form operates on the basis of workers' control.

3. The idea of workers establishing their own production units is quite an old one.

4. Some of these co-operatives have been launched with government money.

5. The firm must be closed down.

6. The workers elect the management from their own ranks.

7. The consumers' co-operatives are founded on three basic principles.

8. They share the profits according to some agreed formula.

9. The society is owned by the customers.

10. The management committee is responsible for the general policy. 11. The customers purchased all the shares.

12. The profits are known as dividends.

Exercise 2. Make the sentences negative and interrogative

1. The members of each society elect a management committee.

2. The full-time officials are appointed by the management committee.

3. The day-to-day operations are in the hands of full-timed salaried officials.

4. The Coops have been forced to merge themselves into larger units.

5. They compete with the very large retail organisations.

6. Very large retail organisations have developed in recent years.

7. The co-operative societies seek to widen their markets.

8. The Coops extend the workers' and consumers' control.

9. The society is democratically controlled.

10. Some political movements advocate their principles.

11. The profits are distributed according to the value of a member's purchase.

12. These workers' co-operatives have been established as a result of workers' refusal to accept management's views.

Exercise 3. Write out a few short sentences from the text about a)two forms of co-operative enterprises;

b)the workers' co-operatives; c)the consumers' co-operatives.

МОДУЛЬ 5

THE PUBLIC CORPORATION

In recent years whenever the state has decided to transfer the ownership of an industry from the private sector to the public sector, the public corporation has been the type of business organisation adopted for the purpose of running the industry.

The public corporation is a separate legal identity like the company, but there are no private shareholders. The government owns the capital and appoints the members of

the controlling board who have functions very similar to directors except that they are answerable to the government and not to shareholders.

In its day-to-day management, however, the controlling board is given wide freedom of action. When commercial enterprises were brought under public ownership it was felt that the direct control by Parliament was not appropriate for enterprises where uncertainty and risk-taking called for quick decisions of a strictly commercial nature. The public corporation, therefore, is an attempt to obtain a satisfactory compromise between public responsibility and commercial efficiency.

The main purpose of the public corporation is to provide an efficient public service at a reasonable price. It does not aim to maximize its profits, but it is charged with the duty of paying its way. Any profits made by a public corporation must be used for capital investment, the lowering of prices, or the raising of wages. Such losses as have been made by public corporations have been financed by government loans.

While the joint stock company exists primarily for the purpose of making profits, the aim of the public corporation is to act in the public interest and to cover its costs.

Exercise 1. Use the verbs in the right forms. Explain why

1. The public corporation (is, are) a separate legal identity like the company.

2. The public corporation (have, has) no private shareholders.

3. The government (owns, own) the capital.

4. The members of the controlling board (have, has) functions very similar to directors.

5. The members of the controlling board (is, are) answerable to the government.

6. The controlling board (is giving, is given) wide freedom of action.

7. Commercial enterprises (were brought, was brought) under public ownership.

8. The direct control by the Parliament (was, were) not appropriate for enterprises.

9. The public corporation (is, are) an attempt to obtain a satisfactory compromise.

10.Any profits (are used, are using) for capital investment.

11.The losses (have been financing, have been financed) by government loans.

12. The joint stock company (exist, exists) for the purpose of making profits.

Exercise 2. Find the predicate. Prove your choice

1.The public corporation has been the type of business organisation adopted for the purpose of running the industry.

2.Any profits made by a public corporation must be used for capital investment.

3.The joint stock company exists primarily for the purpose of making profits.

4.The government owning the capital appoints the members of the controlling board.

5.The public corporation aimed at lowering of prices and raising of wages provides an efficient public service at a reasonable price.

Exercise 3. Answer the questions

1. What has the state decided to do in recent years?

2. What has been adopted for the purpose of running the industry?

3. What is like the public company?

4. Who owns the capital?

5. Who appoints the members of the controlling board?

6. Who is answerable to the government?

7. What is given to the controlling board?

8. Why were commercial enterprises brought under public ownership?

9. What is a compromise between public responsibility and commercial efficiency?

10.What is the main purpose of the public corporation?

11.What must any profits of public corporation be used for?

12.How have the losses of public corporations been financed?

МОДУЛЬ 6

THE PAYROLL OF A COMPANY

The list of people employed by a company is known as the payroll. The payroll is usually divided up as follows:

•monthly-paid staff

•weekly-paid staff

•hourly-paid staff

Office staff is either monthly or weekly paid and the money they get is called

salaries, which are usually set.

Workers are either weekly or hourly paid or they get set wages.

Many companies often operate a bonus system for monthly and weekly-paid

staff. The bonus is usually paid against certain work done.

The amount of the bonus payment is worked out from the employee’s job cards. Hourly-paid staff is usually on the clock. Under this system each worker has a

clock number and a clock card. He records his hours of work on the clock card by inserting it into what is literally a clock.

A device in the clock stamps the card with the time. At the end of each week the clock cards are collected by the timekeepers. The cards are checked and then passed

on to the Wages Office. In the Wages Office the wages and overtime are calculated.

When monthly or weekly-paid staff works overtime they are paid overtime. Employees are sometimes paid in cash or by cheque. But direct payments into the

employee's bank accounts are becoming more and more popular.

As a rule, employees get pay advices for the paid period.

The advice states the earnings, all the deductions and the total amount payable.

The deductions usually include National Health Insurance contributions.

Vocabulary

Exercise l. Put the verb in the correct form, Passive or Active

1. The company (is employed, employed) 100 workers.

2. The payroll (is divided, divided) into three parts.

3. Office staff (are paid, paid) regularly.

4. They (are called, called) this money salaries.

5. Many companies often (are operated, operated) a bonus system.

6. The work (was done, has done) the company (is paid, paid) a bonus for its staff.

7. The company (is worked, worked) out the amount of the bonus payment.

8. He (is recorded, recorded) his hours of work on the clock card.

9. A device in the clock (is stamped, stamped) the card with the time.

10. The clock cards (are collected, collected) by the timekeepers. 11. The Wages Office (is checked, checked) the clock cards. Exercise 2. Write the sentences in the Passive Voice

1. The timekeepers collected the clock cards.

2. The Wages Office calculated the wages and overtime.

3. The advice states the earnings.

4. The deductions include insurance contributions.

5. The company paid money to the office staff.

6. They call this money salaries.

7. The company pays the bonus against the certain work done.

8. The company gives a clock number and a clock card to each worker.

9. He records his hours of work on the clock card.

10. The timekeepers checked the cards and passed them on to the Wages Office.

11. The company paid the staff overtime.

Exercise 3. Sum up what the text said about

a)monthly-paid staff;

b)hour-paid staff;

c)pay-advices;

d)bonus and overtime.

МОДУЛЬ 7

BOOKKEEPERS, ACCOUNTANTS, AND CONTROLLERS Bookkeepers deal with taxes, cash flow, which include cash receipts and cash

disbursements, sales, purchases and different business transactions of the company. Bookkeepers first record all the appropriate figures - in the books of original entry or Journals. At the end of a period, usually a month, the totals of each book of original entry are posted into the proper page of the Ledger. The Ledger shows all the expenditures and all the earnings of the company. On the basis of all the totals of each account in the Ledger, the bookkeeper prepares a Trial Balance. Trial Balances are usually drawn up every quarter.

The accountant's responsibility is to analyze and interpret the data in the Ledger and

the Trial Balance.

The accountant is to determine the ways in which the business may grow in the future. No expansion or reorganisation is panned without the help of the accountant. New products and advertising campaigns are also prepared with the help of the accountant.

The work of accountants is rather sophisticated.

The chief accounting officer of a large company is the Controller or Comptroller. Controllers are responsible for measuring the company's performance. They interpret the results of the operations, plan and recommend future action. This position is very close

to the top executives of the company.

VOCABULARY

Exercise 1. Underline the predicates. What is their form, Passive or Active?

1. Bookkeepers deal with different business transactions of the company.

2. Cash receipts and cash disbursements are included in cash flow.

3. Bookkeepers record all the figures in journals.

4. The totals are posted into the proper page of the Ledger.

5. The Ledger shows all the earnings of the company.

6. The Trial Balance is prepared by the bookkeeper.

7. The accountant analyses and interprets the data.

8. The future ways of growth are determined by the accountant.

9.The accountant also helps to prepare advertising campaigns.

10.Controllers plan and recommend future action.

11.The results of the operations are interpreted by the Controllers. Exercise 2. Put the sentences into negative forms

1. The work of accountants is rather sophisticated.

2. Controllers are responsible for measuring the company's performance.

3. Now products are also prepared with the help of the accountant.

4. They interpret the results of the operations.

5. This position is very close to the top executives of the company.

6. His responsibility is to analyze the data.

7. Bookkeepers first record all the figures into the books of original entry.

8. The Ledger shows all the expenditures.

9. Bookkeepers deal with taxes, cash flow, sales, and purchases.

10. Trial Balances are usually drawn up every quarter.

11. The bookkeeper prepares a Trial Balance. Exercise 3. What is said in the text about

a)bookkeepers; b)accountants; c)controllers.

МОДУЛЬ 8

COMPANY FINANCE

A company's share capital is often referred to as equity capital. Part of the company's profit is paid to shareholders as a dividend according to the number of shares they own. If shareholders sell their shares they get more or less than the face value. It depends on the fact if the company is doing well or badly.

If the company needs to raise more capital for expansion it might issue new shares. Often it gives existing shareholders the right to buy these new shares at a low price. This is called right issue.

If the company wants to turn some of its profit into capital or capitalize some of its profit it can issue new shares at no cost to the existing shareholders. This issue is called bonus or capitalization issue. Companies often issue such shares instead of paying dividends to the shareholders.

A business must be supplied with finance at the moment it requires it. If there is a regular inflow of receipts from sales and a regular outflow of payments for the expenses of operation there are no serious problems. But in many cases a considerable time must elapse between expenditure and the receipt of income. It is the

purpose of financial institutions to assist in the financing of business during this interval. Business companies turn to the capital market and the commercial banks for assistance.

Exercise 1. Make sentences using the words in the correct order

1. Profit, are, of the company's, dividends, the part.

2. Shareholders, paid, to, dividends, are.

3. Own, the number, shareholders, of shares.

4. Shares, sometimes, sell, their, shareholders.

5. Is, well, the company, doing.

6. Might, new, the company, shares, issue.

7. Buy, at a low, these, they, new, price, shares.

8. Finance, must, with, supplied, business, be.

9. Are, no, problems, there, serious.

10. Market, companies, to the capital, business, turn.

11. Assist, commercial, business, banks, companies.