V. Match the halves of the sentences from the text.

1. Economics is a comprehensive theory	a. which make up our standard of living.
2. The economist’s job is to evaluate	b. processing of materials into products.
3. One alternative definition of economics is that	c. the choices that exist for the use of resources.
4. Wealth are the real physical assets	d. of how society works.
5. Production is the creation of services or	e. making a profit.
6. A primary goal of business activity is	f. it is the study of wealth.

VI. Find Russian equivalents to the following sentences in the second column.

1. In general, economics is a comprehensive theory of how society works.	a) В настоящее время ресурсы ограничены как в богатых, так и бедных странах.
2. To my mind, any definition should take account of the guiding idea in economics which is scarcity.	b) Вообще, экономика- это комплексная теория о том как функционирует общество.
3. Actually, we have limited resources both in rich and poor countries.	c) Одна из главных забот экономики – увеличение благосостояния общества.
4. One of the primary concerns of economics is to increase the wealth of a society.	d) Парикмахер предоставляет услугу, когда стрижет вас.
5. Traditionally, business simply meant exchange or trade for things that people wanted or needed.	e) По моему мнению любое определение должно учитывать главное понятие экономики – дефицит.
6. A barber renders a service when he cuts your hair.	f) Обычно бизнес просто означал бартер или обмен на вещи, которые люди хотели получить или в которых нуждались.

VII. Make an outline of the text consisting of 5-8 sentences.

VIII. Retell the text according to its outline.

4. Companies

1. Go through the following vocabulary notes to avoid difficulties in understanding and find these words in the text.

necessary – необходимо sole proprietorship – индивидуальное (частное) предприятие partnership – товарищество (партнерство) limited company – акционерное общество с ограниченной ответственностью in turn – по очереди, по порядку entrepreneur – предприниматель retail store – магазин, торгующий в розницу shareholder – акционер, пайщик, владелец акций AGM (annual general meeting) – общее ежегодное собрание Board of directors – совет директоров to set objectives – ставить цели personal assets – личное имущество supply – поставлять hence – поэтому, следовательно, отсюда costs – издержки stock exchange – фондовая биржа

аdvantage – преимущество revenue – доход, выручка liable for – ответственный за debts – долги resemble – походить, иметь сходство obligations – обязанности issue – вопрос, проблема, дело, тема, пункт represent - представлять share of stock – доля (пай) в капитале, акция raise more capital – увеличивать капитал vital – жизненно важный, существенный reckon – считать, полагать, придерживаться мнения competitive – конкурентный, соперничающий sum up – подытожить to be in demand – быть востребованным benefit – выигрывать, получать пользу

2. Read the statements and decide whether they are true (T) or false (F).

1. There are two traditional forms of companies – the sole proprietorship and the partnership.

2. The sole proprietorship is the easiest form of business to organize.

3. The sole proprietorship has only advantages.

4. The partnership is an enterprise owned by two or more individuals.

5. The main disadvantage of the partnership is that partners are liable for all the debts.

6. In limited companies, the owners of the company are called shareholders.

7. The owners of the limited companies usually meet once a month.

8. Limited companies are the most risky.

9. Large corporations produce in large quantities and their costs are lower.

10. Small companies are not very important to the economy.

3. Read the text and check up your answers in ex. II.

When talking about companies it’s necessary to mention its three traditional forms. The first one is the sole proprietorship (or the sole trader), the second is the partnership and the third is the limited company (or the corporation). Let me now describe each of them in turn.

The sole proprietorship is a form of business owned by a single individual. In Belarus these individuals are mainly called entrepreneurs. They may sell different goods at the markets; they can have retail stores, small cafes and so on. It’s the easiest form of business to organize. All you need to have is just a good business idea, some money, licences, etc., and of course you should work very hard. The advantage of this type of business is that you are the owner which means you get all the revenues. But at the same time you are legally liable for all the debts of your business. This means if you are in trouble you should repay everything from your own pocket.

The partnership resembles the previous form of business. The difference is that it’s an enterprise owned by two or more individuals. Usually there is a partnership agreement in which we include the rights and obligations of each partner. The advantage of partnerships is that partners may have different skills for running the business. For example, one is good at financial and management issues of business, while the other can deal with legal and marketing aspects and so on. The main disadvantage is again that the partners are liable for all the debts.

As for the third form of business, it’s called the limited companies (or corporations). The difference from the previous forms is that limited companies are created by law and are separate from the people who own and manage them.

In limited companies ownership is represented by shares of stock which belong to shareholders, the owners of the company. They usually meet once a year, at an annual general meeting (AGM), to elect the board of directors. The board of directors in turn appoint company managers who set company objectives, design effective organization structures and, on the whole, direct the company.

The advantage of limited companies is that they are less risky. The owners only risk their share in the company. Their personal assets remain untouched.

As for large corporations I should mention that bigger businesses can supply goods and services to a greater number of people than smaller ones. The goods and services are often much cheaper because they are produced in large quantities and hence their costs are lower. In addition, we recognise their brand names more easily which is also connected with good quality. These companies are financially stronger because they can sell their shares on the stock exchange and raise more capital.

But I believe small companies are vital to every economy because they create jobs for the people of this or that country. I reckon it’s a very good business philosophy to develop small business as well as big business in the today’s highly competitive world.

To sum it up, I have to say it doesn’t matter what form of business you are in. The main point is to be a good specialist. If you are the one you will always be in demand, and the economy will only benefit from it.

4. Answer these questions using the active vocabulary of the text.

1. What are three traditional forms of companies?

2. What is another name for the sole proprietorship?

3. What are the advantages and disadvantages of the sole proprietorship?

4. What is the difference between the partnership and the sole proprietorship?

5. What is the main advantage of the partnership?

6. What is an AGM?

7. Are limited companies less risky than other types of companies?

8. Why are the goods and services usually cheaper in large corporations?

9. Why are large companies financially stronger?

10. Why are small companies vital to every economy? Should we develop small business?