UNIT 4

1.Memorize the following words:

2.Read and translate the text:

THE PURPOSE OF BUSINESS ORGANIZATIONS

The main purpose of most business organizations is to produce goods and services to satisfy consumers' needs and wants. However, a business organization will only aim to satisfy needs and wants because it has other objectives in mind. Some produce and sell goods and services to consumers in the hope of making a large profit for their own. Others may have nonprofit motives, for example the provision of a charitable service.

Making a profit

Most firms hope to persuade consumers to buy their goods and services at a price greater than the cost of making them. Selling goods and services generates revenue for a business organization. Profit is what is left from

revenues after all costs have been paid. A firm which cannot cover its costs with enough sales revenues will have losses and be forced to close down if losses continue. It is important for a business to make a profit so that it can:

-Pay for wages, materials, rent and other bills and have enough revenue left over to satisfy the business owners who have invested their money in the business.

-Borrow money from banks and other lenders who will want to be sure that the business is successful and can afford to repay them.

-Use the money to buy new equipment and machinery when it becomes worn out or out-of-date.

3.Answer the questions. Start your answer with the phrases: I think that

…It seems to me that …

What is the main purpose of most business organizations?

What motives can different business organizations have?

What do most firms want to persuade consumers to do? Why?

What does selling goods and services generate?

What is profit?

In what case will a firm have losses?

Why is it necessary for a firm to make a profit?

4.Agree or disagree with the following statements. Use the phrases: I’m afraid that’s wrong. I’m sure that’s right:

The aim of most firms is to provide a charitable service.

Сonsumers buy goods at a price greater than the cost of making them.

Some part of the revenue goes to business owners.

If a firm cannot cover its costs with its revenues it must buy new equipment.

5.Fill in the blanks with the words from the box:

1.Selling goods and services _________ revenue.

2.Profit is what is left from the _____ after all _____ have been paid.

3.A firm must buy new equipment when it becomes ________.

4.One of non-profit motives is to provide a _________ service.

5.Most firms want to ________ consumers to buy their goods at a price greater than the __________ of making them.

6.Most firms sell their goods and services in the hope of ____ for their own.

7.A business can ________ from a bank.

8.Lenders must be sure that the business is ________.

6.Translate the following sentences. Pay attention to pronouns.

1.Ours is one of the best companies in the region.

2.Is that house yours? – Yes, it’s mine.

3.They will contact those suppliers themselves.

4.Their plan was the best. – You are right. Theirs was the best plan.

5.The computer will calculate the balance itself.

6.Let us consider the chain of production of these products.

7.He bought himself a new car. He bought it himself.

8.Our company delivers goods to the firms that require them.

9.Every firm wants to make a good profit from its business activities.

10.Let us introduce ourselves.

11.Young people themselves need to be involved in politics.

12.Let him try to make this translation himself.

13.It seems to me that your dictionary is not very good. You may use hers.

14.A friend of mine helped me to find this job.

15.History often repeats itself.

16.Which of them is your new sales manager?

17.He came out of the interview looking pleased with himself.

18.Those goods are not theirs, they are ours.

7.Use the proper form of the pronouns given in brackets:

1.These products are (we).

2.Let (he) find new investors for (he) business (he).

3.The story (it) is good but the translation is bad.

4.Which of these books are (you)?

5.A firm closed down because it could not cover (it) costs.

6.Let (they) decide (they) how much money they must borrow from a bank.

7.This is not (she) firm. (She) is in the next street.

8.Can you lend (we) some money?

9.I don’t like the new friend of (they).

10.Don’t park (you) car next to (I).

11.I don’t like people who think only of (they).

12.We phone the manager and he came (he).

13.She gave (we) some useful information about (she).

14.Do you see (they) books on the table? – Don’t take (they). They are not (we).

15.Maria often goes to the University by (she).

16.They felt proud of (they).

17.John and I are very busy. Do not ask (we) any questions.

18.I am very sorry. Excuse (I) , please.

is made up of all the people who buy cars. Similarly, the market for oranges is made up of all the people who buy oranges. In fact, every product will have a market if consumers want it. Most firms will compete for consumers with rival firms producing the same or similar goods or services. For example, Coca Cola competes with other cola drinks such as Pepsi, Virgin, and supermarket own brands. Firms will compete to increase their share of the total market.

The size of the market for any particular good or service can be measured by the total value of sales to consumers of that product. Firms, therefore, compete for a share of the total spending by consumers. Increasing market share is, therefore, an important objective for many firms.

3.Answer the questions. Use the phrases: The text says that… As far as I know…:

What must a firm do if it wants to make a profit?

How is the market for a product formed?

In what cases do firms compete for consumers?

What is the aim of the firms competing with their rivals?

What shows the size of the market for any particular product?

4.Match the given words with their definitions:

5.Disagree with the following statements. Use the phrases: I don’t think so. I doubt this. Give your reasons.

The market for any product is made up of people who produce it.