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Латыгина Базовый курс економики на англ.doc
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Companies’ Restructuring

In the world of business we can often witness changes to the ownership or structure of companies and groups of companies. As a rule companies join with or buy other companies in order to have better control of a particular market, to diversify their business, to strengthen their operations to remain profitable. When two companies combine, usually voluntarily, they merge to form one company in an agreement known as a merger.

To buy another company or to win a controlling share of a company is to acquire a business, make an acquisition or take over a company. There are two types of takeover: a hostile takeover is a situation in which a company is bought out when the owners do not want to sell. Individuals or companies that want to take over other companies are called raiders. A friendly takeover takes place when a company is willingly bought out. When someone wants to buy a company they have to make a bid for it, i.e. offer to buy it at a certain price.

A buyout is the purchase of a company usually by buying the majority of shares, especially by its management or staff.

If a company sells a business, it divests itself of that business. If you pull out of a business activity, you abandon it, perhaps as part of a programme of restructuring: reorganizing a business with the aim of making it more efficient and profitable.

Exercises in Word Study

Ex.1. Form adjectives from the following nouns:

efficiency, profit, aim, price, will, hostility, volunteer, change, control, activity.

Ex.2. Give the English for:

світ бізнесу, зміни в структурі компанії, об’єднуватися добровільно, придбати бізнес, поглинати компанію, власник компанії, купувати (продавати) компанію, відмовлятися від діяльності, залишати бізнес, придбання контрольного пакета акцій, персонал, програма реорганізації бізнесу, прибутковий бізнес, мета.

Ex.3. Match words from list A with words from list B that have a similar meaning:

A

B

witness

buy

aim

staff

make an acquisition

enter new types of businesses

win

share

hostile takeover

bid

pull out

stop participating

acquire

observer

purchase

purpose

gain

stock

diversify

offer to sell something at a certain price

unfriendly takeover

personnel

Ex.4. Find suitable opposites to the following words and phrases:

a friendly takeover, to sell, demerger, inefficient, unprofitable, worse, involuntarily, to lose.

Ex.5. Match the nouns in the left hand column with the verbs in the right hand column.

market

merger

takeover

acquisition

bid

price

increase

flood

make

reduce

take part in

play

agree (to)

fight

fix

Ex.6. The words in the box frequently occur before “market”.

Find combinations that mean:

  1. the illegal economy, not approved by a government;

  2. the situation of buying and selling goods for personal use, not for resale;

  3. a place where raw materials and some manufactured goods are bought and sold;

  4. any market where there is a lot of buying and selling;

  5. a place where deals are made relating to the long-term investment needed by businesses;

  6. a market where certain securities are plentiful and prices are low because there are few buyers;

  7. a market where foreign currencies are traded;

  8. a market where conditions are good for the buyer;

  9. a market where conditions are good for the seller;

  10. a financial market at which the value of stocks and bonds goes down;

  11. a situation in a financial market where prices are rising and lots of shareholders are buying.