TYPES OF BUSINESS (Part 1)

CONTENTS

FORMS OF BUSINESS

APPLYING FOR A JOB

BUSINESS CORRESPONDENCE

MEETINGS AND NEGOTIATIONS

CONTRACT AND ITS FEATURES

APPENDIX

РЕКОМЕНДУЕМАЯ ЛИТЕРАТУРА И ИНТЕРНЕТ-РЕСУРСЫ

FORMS OF BUSINESS

WHAT IS BUSINESS?

Basic Vocabulary

purchase - приобретение

sale - продажа

goods and services – товары и услуги

to employ – нанимать на работу

employer - работодатель

customers - клиенты

demand - спрос

accounting - бухгалтерия

Reading

A dictionary and Thesaurus give many meanings of the noun "business":

· A trade or profession - for example, "What business are you in?"

The purchase and sale of goods and services - for example,
"Smith and I do business together"

· A commercial or industrial establishment - for example, "This
business employs 400 people"

· Volume of commercial activity — for example, "Business is good at the moment".

· Commercial policy - for example, "Overcharging customers is bad business".

Other meanings exist, but they are not relevant here. So you can see the problem that needs to be cleared up before we start a study of business. What do we mean when we use the term "business"?

It is essential that our study examines all the internal and external pressures that affect the many organizations from which we earn or receive money, and all the organizations with which we spend our money either voluntarily or by compulsion.

But we cannot exclude local government which places planning and development restrictions on businesses, or national government which passes laws that affect every business, and collects taxes on profits. Trade unions influence the pay and conditions that employers provide, and pressure groups can cause firms to alter the way they make or package their products. Similarly, we must consider the impact of international organizations such as the European Community and the International Monetary Fund.

So when we think about "business", we mean commercial and industrial establishments and everything that affects them.

Business study is a blend of many specialized subjects. Economics is the basis of business studies and provides a firm foundation upon which to build. Money (as represented by finance and accounting) is the language of business, and needs to be controlled and kept secure. People make business, and their behavior must be understood and influenced when possible. Laws control business and protect society from its worst excesses. Communication is the lifeblood of business and pervades every aspect of it. Mathematics and statistics are the keys to understanding, describing and solving many of the problems faced by business.

For example, a company thinking about developing a new product or service ought to consider if there will be sufficient demand for it and whether the level of demand would be affected by price (economics). Can the company afford to produce it and make a profit at the price customers would be willing to pay (finance)? Has it got people with the right skills and expertise to design and make the goods (people)? Is the product covered by any special legal regulations as the upholstery or toy industries are (law)? Ought the company do some marketing research to find out what people think before they spend too much money (mathematics and statistics)? In everything mentioned here, the company will be giving and gathering information and ideas all the time (communication).

Practice

1. Explain the following word combinations and give their Russian equivalents:

to earn money

to place restrictions on

to collect taxes on profits

commercial and industrial establishments

to provide a firm foundation

to solve problems

sufficient demand

to make a profit

to do some marketing research

2. Answer the following questions:

1. How many meanings of “business” are there?

2. How can national or local government affect any kind of business?

3. What do we mean when we think about "business"?

4. How many specialized subjects are involved in business?

5. What is the lifeblood of business?

3. Discuss the following statements. Express your ideas and say why you think so.

1. Business for me is a pleasure

2. When we use the term 'business' we mean commercial policy.

3. Money is the language of business.

4. Communication is not important in business.

5. The points you must think about before setting up business

4. Render the text in English:

Когда мы думаем о "бизнесе", мы имеем в виду коммерческие и промышленные предприятия, благодаря которым мы можем заработать или потратить деньги либо добровольно, либо по принуждению. Но мы не можем исключить факторы, которые влияют на бизнес. Например, местное или национальное правительство, которое вводит ограничения и взимает налоги на прибыль.

Бизнес представляет собой сочетание многих специализированных дисциплин. Экономика-это основа бизнеса, обеспечивающая прочный фундамент, на котором можно строить. Деньги (представленные финансами и бухгалтерским учетом) - это язык бизнеса, который необходимо контролировать и сохранять в безопасности. Люди делают бизнес, и их поведение должно быть понятным и гибким. Законы контролируют бизнес и защищают общество от случаев злоупотребления. Общение является основой бизнеса и пронизывает каждый ее аспект. Математика и статистика являются ключевыми для понимания, описания и решения многих проблем, с которыми сталкивается бизнес.

TYPES OF BUSINESS (Part 1)

Basic Vocabulary

for the benefit –ради выгоды

an entrepreneur - предприниматель

sole trader – частный предприниматель

to gain profits – получить прибыль

success and failure – успех и провал

advantages and drawbacks – преимущества и недостатки

to be responsible for - to be liable for - to be in charge of – нести ответственность за

an owner – владелец

large amounts of capital – крупный капитал

to run a great risk – подвергаться риску

fiscal responsibilities – фискальные обязанности

to be in effect – быть действительным

ownership – собственность

to dissolve - распадаться

income - доход

to set up - учреждать

profits and losses- прибыль и убытки

joint venture – совместное предприятие

to go international – выйти на международную арену

to pool resources – объединить ресурсы

to share responsibility – делить ответственность

financial aid – финансовая помощь

technical assistance – техническая поддержка

to provide necessary funds – обеспечить необходимые фонды

Reading

Business is the production, distribution, and sale of goods and services for the benefit of the buyer and the profit of the seller. In the modern world the control of production is largely in the hands of individual business people or entrepreneurs, who organize and direct industry for gaining profits.

The main forms of business organization are described below.

Individual Proprietorship (Sole Trader or Sole Proprietor)

This is the simplest way of starting a business. You are self-employed and fully responsible for all the aspects of the management of your business.

In this form of organization the owner is in sole charge of the business and is responsible for its success or failure. Any line of business is open to an owner.

Although this form of small business has its advantages, it has certain drawbacks. In the first place the single owner is seldom able to invest as much cap­ital as can be secured by a partnership or a corporation. If single owners are able to invest large amounts of capital, they run great risk of losing it all because they are personally liable for all the debts of their businesses. This is called unlimited liability.

Advantages of a Sole Proprietorship:

- the easiest and least expensive form of ownership to organize;

- sole proprietors receive all income generated by the business to keep or reinvest;

- profits from the business flow directly to the owner's personal tax return;

- the business is easy to dissolve, if desired.

Disadvantages of a Sole Proprietorship:

- sole proprietors have unlimited liability and are legally responsible for all debts against the business.

Partnership

Two or more people starting a business together can set up a partnership. All partners are responsible for the debts of the partnership and profits and losses are shared between them.

The agreement to form an association of this nature is called a partnership contract and may include general policies, distribution of profits, fiscal responsibilities, and a specific length of time during which the partnership is in effect.

Advantages of a Partnership:

- partnerships are relatively easy to establish;

- with more than one owner, the ability to raise funds may be increased;

- the profits from the business flow directly through to the partners' personal tax returns;

- the business usually will benefit from partners who have complementary skills.

Disadvantages of a Partnership:

- partners are jointly and individually liable for the actions of the other partners;

- profits must be shared with others;

- since decisions are shared, disagreements can occur;

- the partnership may have a limited life; it may end upon the withdrawal or

death of a partner.

Joint Venture

To go international a large firm can set up a joint venture with a company in another country. In this case two companies pool their resources to design, manufacture and sell the products. Both firms profit by the result of this arrangement. They also share responsibility. One of the firms provides the necessary funds and know-how for producing goods. In return it gets a foothold in the foreign market. The other firm obtains financial aid and technical assistance. And it takes responsibility for handling red tape and organizing sales on the local market.

Practice

1. Answer the questions:

1. What is the easiest form of business organization?

2. What are its risks?

3. What is the difference between General Partnership and Limited Partnership?

4. What are disadvantages of partnership?

5. What for do companies pool their resources?

2. Render the text in English:

Бизнес это производство, распределение и продажа товаров и услуг ради выгоды покупателя и прибыли продавца.

Существуют несколько основных форм организации бизнеса.

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