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  • (1-2) – 1 курс, Basic English of Economics, A.Latygina

  • (3-9) – 2 курс, Англійська мова для товарознавців, Л.А. Зощенко, Л.С. Уханова

  • (10-16) – 3 курс, Англійська мова міжнародного бізнесу та менеджменту, А. Латигіна

  1. Business and Businesses (Business Organization, Business Organization and the Economy, Ownership, Business relationships, Company Restructuring, Organizational Structure) (Unit 1, cm7)

  2. International Business (International Trade, Export and Import, World Trade Organization, Business across Cultures) (Unit 7, cm 290)

  3. What is Product (cm4)

  4. Types of Markets (cm9)

  5. Price of a Product (cm14)

  6. Warehousing Operations (cm24)

  7. Channels of Distribution of Goods (cm34)

  8. The Main Types of Stores (cm65)

  9. Consumerism (cm85)

  10. International Trade Organization (cm91)

  11. International Business (cm7)

  12. Balance of Payments (cm26)

  13. Foreign Direct Investment (cm36)

  14. The Foreign Exchange Market (cm45)

  15. Export and Import Strategy (cm56)

  16. Methods of Payment in Foreign Trade (cm64)

  1. Business and Businesses (Business Organization, Business Organization and the Economy, Ownership, Business relationships, Company Restructuring, Organizational Structure) (Unit 1, cm7)

    Business Organization

The economic system is made up of people with basic needs that they must satisfy to survive. As most people cannot produce all the goods and services they need, we depend on other persons or businesses to make them for our consumption.

Business is the activity of producing, buying and selling goods and services.

A business organization is a firm, a company or a business that makes, buys or sells goods, or provides services, to make a profit. Businesses vary in size.

Large companies are referred to as corporations. Many consider the corporation the ideal way to organize business. Large companies operating in many countries are multinationals.

Big business can refer to large business organizations or to any business activity that makes a lot of money.

Small companies are referred to as small businesses or small firms.

When we start a business we talk about setting up a business or establishing a business. New businesses are called start-ups. Once a business has been established we talk about being in business or running a business.

To do business means to trade or deal with a company or country. It’s not easy to organize a business and to operate it successfully. When a company is not successful, it may go out of business.

The economic situation, as well as decisions taken by the owners of a company, affect how it grows and changes. You may expand your business, specialize in something, you may also diversify your business.

Business Organization and the Economy

Businesses may be classified according to which industry they are in: for example, construction, oil, banking, food.

All the companies which make goods from raw materials or assemble components into finished products work in the manufacturing sector.

All the companies which provide services in areas such as tourism, banking and finance, communications, wholesale and retail trade work in the service sector.

Besides, a company may be owned by the state, or by private individuals. Privately – owned and – run companies work in the private sector.

A private enterprise is a system that allows individuals within a society to pursue their own interest without governmental regulation or restriction. State – owned and – run organizations are in the public sector.

When a private company is bought by the state and brought into public sector, it is nationalized in a process of nationalization. A nationalized company is state–owned.

When the state returns a company to the private sector in a sell-off, it is privatized. This is privatization. The first to be sold off in a privatization programme are often the companies responsible for the public supply of electricity, water and gas: the utilities.

Ownership

A business is an organization of material, human, financial, and information resources that are joined together for a specific purpose. Not all businesses are owned and organized in the same way.

In unlimited liability companies the owners are personally and entirely liable for the debts of the company. This means they may lose their personal assets (e.g., their house or their car) if the company is in financial difficulties.

In a limited liability company (Ltd.) the owners are liable only for the amount of money they have invested in the business.

Unlimited liability companies are subdivided into sole traders (BrE)/sole proprietorship (AmE) (a type of business organization owned and run by one person) and partnerships (BrE)/general partnerships(AmE) (a firm run by two or more partners). A lot of professional people like lawyers, accountants and so on, work in partnerships.

Limited liability companies are subdivided into private limited companies (Ltd) (BrE)/limited liability companies (AmE) and public limited companies (PLC) (BrE)/listed companies (AmE). A private limited company/limited liability company is a company which has shareholders (people who own the wealth of a company) but which cannot offer its shares to the public.

A public-limited company/listed company is a company whose shares can be bought and sold (publicly traded) on the stock exchange.

Notes: A public limited company is privately owned. It is not run by the state.

Business Relationship

As businesses expand they may buy shares in other companies, or join with other companies for a particular purpose. There are different relationships these companies can have with one another. A group is a number of subsidiary companies operating under one leading company known as the parent company. A subsidiary is a company that is half or wholly owned by another company (the parent company).

A holding company is one that holds all, or more than half of, the stakes in one or more subsidiaries. It is the leading company in a group.

A holding company’s relationship to its subsidiaries is that of parent company, and the subsidiaries’ relationship to each other is that of sister companies. The parent company controls its subsidiaries through its capital interests.

A conglomerate is a group consisting of a lot of different companies in different businesses run as one large company.

When two or more companies decide to work together, they form a joint venture. In such cases, the two companies involved remain separate legal entities.

A consortium is a group of companies which come together to undertake a project which any one of the members cannot carry out alone.

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