- •1.1 Getting started
- •1.2 Look through the following vocabulary notes which will help you understand the text and discuss the topic.
- •1.3 Reading Economic Systems
- •1.4 Comprehension
- •1.4.1 Answer the questions using the active vocabulary.
- •1.4.2 Mark these statements t(true) or f(false) according to the information in the text. If they are false say why.
- •2. In a market economy, all major decisions related to the production, distribution, commodity and service prices, are made by the government.
- •3. In a planned economy the assumptions of the market play a major role in deciding the right path for a country’s economic development.
- •1.5 Language practice
- •1.5.1 Match the English terms in the left-hand column with the definitions in the right-hand column.
- •1.5.4 Text for discussion.
- •1.6 Render the passage in English using the English equivalents of the italicized phrases given in Russian. Express the main idea of the passage in one sentence or entitle it.
- •Unit 1 Reading Self – Control Test Economic Systems
- •1. Which of the following is the main idea of the text?
- •2. What is most likely the source the text has been taken from?
- •3. It can be derived from the text that an economic system can be defined as
- •4. It can be inferred from the text that
- •5. Which economy according to the information in the text is the most efficient because it adjusts automatically to meet the changing demand ?
- •6. It can be derived from the text that a balance of a wide range of political and economic views is typical for
- •7. It can be derived from the text that the slowliest to react to changes in consumer needs and fluctuating patterns of supply and demand is
- •8. Which of the following statements would the author most probably agree with?
- •9. What is most likely the subject of the extract which is missing from this text?
- •10. The audience the author had in mind when writing this text was most likely a group of
- •Unit 2 the micro-economic environment of business
- •2.2 Look through the following vocabulary notes which will help you understand the text and discuss the topic.
- •2.3 Reading
- •2.4 Comprehension
- •2.4.1 Answer the questions using the active vocabulary.
- •2.4.2 Mark these statements t(true) or f(false) according to the information in the text. If they are false say why.
- •2.5 Language practice
- •2.5.1 Match the English terms in the left-hand column with the definition in the right-hand column.
- •2.5.2 Complete the following text using suitable words or phrases from the box below.
- •2.5.3 Complete the text. Replace the Russian words and phrases by the English equivalents.
- •Inflation
- •2.5.4 Text for discussion.
- •Implications for Business People
- •2.6 Render the passage in English using the English equivalents of the italicised phrases given in Russian. Express the main idea of the passage in one sentence or entitle it.
- •Unit 2 Reading Self – Control Test Economic Essentials
- •10. What is most likely the subject of the extract which is missing from this text?
- •3.1 Getting started
- •3.2 Look through the following vocabulary notes which will help you understand the text and discuss the topic.
- •3.3 Reading From Small Firms to mnCs and Back to mbOs
- •3.4 Comprehension
- •3.4.1 Answer the questions using the active vocabulary.
- •3.4.2 Mark these statements t(true) or f(false) according to the information in the text. If they are false say why.
- •2.5.1 Match the English terms in the left-hand column with the definition in the right-hand column.
- •3.5.2 Complete the following text using suitable words or phrases from the box below.
- •Venture Capital
- •3.5.3 Complete the text. Replace the Russian words and phrases by the English equivalents.
- •3.5.4 Text for discussion.
- •Internal and External Growth
- •3.6 Render the passage in English using the English equivalents of the italicized phrases given in Russian. Express the main idea of the passage in one sentence or entitle it.
- •Unit 3 Reading Self – Control Test From Small Firms to mnCs and Back to mbOs
3.4 Comprehension
3.4.1 Answer the questions using the active vocabulary.
1. How does the UK Report of the Committee of Enquiry into Small Firms define small firms?
2. The 1985 Companies Act defined small firms as those having
-
turnover under 2 million pounds sterling;
-
net assets under 975,000 pounds sterling;
-
an average of 50 or less employees.
Compare these data with the information given in the text and state the general trend.
3. What do you think are the most relevant reasons for small firms to exist?
4. Why do you think small firms are referred to as ‘seed beds’ for new industries and market leaders?
5. Why is creation of a more favorable tax regime for small firms important?
6. Can you guess the difference between venture capital and corporate venturing if there is any?
7. What is the economic effect of economies of scale?
8. The benefits of growth include the development of a skilled workforce. Which of the two kinds of economies of scale does this statement examplify?
9. Could you think of any examples of multinational corporations which have become household names?
10. What were the reasons for the rapid growth in the number of MNCs in the 20th century?
11. What is the driving force for businesses to restructure?
12. What was the normal course of action of a business to divest itself of unprofitable operations?
13. When does an MBO occur?
14. What are the sources of financing MBOs?
15. Why do you think the problem of long-term debt becomes apparent in a recession?
3.4.2 Mark these statements t(true) or f(false) according to the information in the text. If they are false say why.
1. Many buy-outs benefit from unfavorable loan agreements.
2. Managers (and workers) as owners of an MBO are highly motivated.
3. The buy-out team consists of inexperienced managers knowing neither the business nor the industry.
4. A small firm is independent of any other organization.
5. A small firm is owner managed.
6. The major opportunity small firms present is the chance for the owner to be his own boss.
7. Many small firms survive today because of the bad relationships which they have with their customers.
8. A small business owner may lack managerial expertise and financial support.
9. MNCs take decisions in the best interests of the ‘host ‘country.
10. MNCs are able to transfer resources from one country to another so as to gain the benefit of cheap labor and low taxation.
11. MNC power within an industry may be so small that other firms never follow their actions and competition really exists.
12. MNC profits are an important source of tax revenue to the ‘developing’ country.
13. External economies of scale are enjoyed by an undustry as it decreases in size.
14. Internal economies of scale refer to the situation where unit costs of production rise as the scale of operation increases.
15. Small firms suffer from high level of competition.
2.5.1 Match the English terms in the left-hand column with the definition in the right-hand column.
|
1 |
industry |
A |
The purchase of one company (the target) by another (the acquirer, or bidder). |
|
2 |
ratio |
B |
Reduction of some kind of asset for either financial or ethical objectives or sale of an existing business by a firm |
|
3 |
MNC |
C |
A security interest on real property granted to a lender. |
|
4 |
MBO |
D |
A way for large companies to develop and broaden their business without acquiring other companies but investing in small companies so that they can grow faster than they otherwise would. |
|
5 |
divestment |
E |
The cost advantages that a business obtains due to expansion. |
|
6 |
merger |
F |
A group of firms producing goods or services that are close substitutes-in-consumption. |
|
7 |
takeover |
G |
The cost of production per unit. |
|
8 |
mortgage |
H |
A form of acquisition where a company's existing managers acquire a large part or all of the company. |
|
9 |
venture capital |
I |
An offer to purchase enough shares of a company to overtake the current majority shareholder. |
|
10 |
corporate venturing |
J |
An entity that is controlled by a separate higher entity. |
|
11 |
economies of scale |
K |
A relationship between two amounts that is represented by a pair of numbers showing how much greater one amount than the other. |
|
12 |
subsidiary |
L |
It happens when two firms agree to go forward as a single new company rather than remain separately owned and operated. |
|
13 |
take-over bid |
M |
An enterprise that manages production or delivers services in more than one country. |
|
14 |
unit cost |
N |
Financial capital provided to early-stage, high-potential-growth startup companies. |