Calculating interest on loans

 

Depending upon the amount of money borrowed, interest can become a significant cost. The borrower should be familiar with the commonly used methods of calculating interest. Three principal methods are: (1) flat interest rate, (2) interest on the unpaid balance, and (3) the discount method.

With the flat interest rate method, a specified rate of interest is paid on the original amount of the loan. Interest may also be charged on the unpaid balance. In this case, interest is paid only on the amount owed. With the discount method, interest is deducted in advance. Assume $500 is borrowed to be repaid in one year. If the lender discounts the loan in advance at 8 per cent, he will make the loan for $500 but will only extend $460. By the use of this method $40.00 interest will be paid.

Often loans are amortized. That is, the interest and principal payment are repaid in such a way that there is an equal payment each month or each year. When this method is used, the interest payment is high in the early years of the loan and then declines. The principal payment, on the other hand, is low in the early years of the loan and then it increases.

The term “amortization” is also used to refer to loans which have equal principal payments. The periodic interest payments are based on the unpaid balance. Under this plan the principal payment is the same each period, but the amount of interest and, hence, the total payment declines. This type of repayment plan is common in the farm mortgage field and is preferred by some lenders to the type of amortized repayment plan.

With short or intermediate credit it is advisable to be in a flexible position. Therefore, one of two conditions is desirable: (1) either the loan should be written for a long enough period of time; or (2) the borrower should be assured the lender is willing to make an extension if one becomes necessary. Many commercial banks like making loans for relatively short periods. They may do this knowing the loan will not be repaid in full when it falls due. When the loan comes due, they have an opportunity to reconsider the loan with the borrower. Such practices, however, can lead to financial troubles for the borrower and can decrease the efficiency of his operation if the loan is called.

 

II. Выберите правильный вариант ответа на вопросы к тексту.

1. What is the second basic method of calculating interest?

a) discount method

b) flat interest rate method

c) interest on the unpaid balance

2. What method is used to deduct interest in advance?

a) the flat interest rate method

b) the discount method

c) interest on the unpaid basis

3. What period of time do most commercial banks prefer to make loans for?

a) a very long period of time

b) a relatively short period

c) an unlimited period

 

III. Закончите предложения по содержанию прочитанного текста.

4. With short credit it is advisable ________.

a) to be in a flexible position

b) to be in a limited position

c) to be in an unlimited position

5. Interest may be charged on ________.

a)the blocked balance

b) the average balance

c)the unpaid balance

6. There is an equal payment ________.

a) each month or each year

b) every three months

c) every ten days

7. This type of the repayment plan is common _________.

a) in the manufacturing field

b) in the farm mortgage field

c) in the information technology field

8. While applying for a loan, the borrower should be familiar with ______.

a) the market situation.

b) the terms of granting bonuses

c) the commonly used methods of granting loans

 

IV. Подберите эквивалент к данному русскому слову или словосочетанию.

9. заемщик

a) borrowed

b) borrower

c) lender

10. процентная ставка

a)interest-free

b) interest payment

c) interest rate

11. владеть

a) own

b)owner

c) owe

12. возмещенный

a) paid

b) unpaid

c) repaid

13. выплата процентов

a) principal payment

b) equal payment

c) interest payment

14. среднесрочный кредит

a) intermediate-term credit

b) external credit

c) interstate credit

15. гибкий

a)desirable

b) flexible

c) advisable

V. Выберите русское предложение, наиболее точно передающее содержание предъявленного.

16. With the flat interest rate method, a specified rate of interest is paid.

a) Когда имеется единая процентная ставка, то выплачивается определенная сумма ссуды.

b) По методу единой процентной ставки осуществляется выплата определенной процентной ставки от предложенной ссуды.

c) По методу единой интересной ставки выплачивается специфическая ставка.

17. This type of repayment plan is common in the farm mortgage field and is preferred by some lenders to the type of amortized repayment plan.

a) Этот тип оплаты – общий для фермерских займов и предпочитается другим видам.

b) Некоторые кредиторы предпочитают использовать план погашения займа равными частями, так как он распространен среди фермеров.

c) Этот тип возмещения платежей довольно распространен в сфере фермерской ипотеки, и некоторые кредиторы предпочитают выбирать его, а не план погашения займа равными частями.

18. When the loan comes due, banks have an opportunity to reconsider the loan with the borrower.

a) Когда наступает срок выплаты кредита, то банки могут пересмотреть условия займа с заемщиком.

b) Ссуда предоставляется клиенту в любое время.

c) Есть возможность пересмотра суммы кредита с должником.

 

VI. Выберите английское предложение, наиболее точно передающее содержание предъявленного.

19. Often loans are amortized.

a) Principal payment is repaid.

b) There is an equal repayment each day.

c) There is an equal debt repayment each month or each year.

20. The borrower should be familiar with the commonly used methods of calculating interest.

a) He should know how the interest rate is calculated.

b) He should know where the interest rate is deduced.

c) He should know how to set the average interest rate.

21. Interest rate is deducted in advance.

a) It is interesting to deduct it in advance.

b) Interest is calculated after receiving the money.

c) The amount expressed as a percentage is deducted beforehand.

 

VII. Определите функцию неличной формы глагола.

22. Accounting and banking involve identifying, measuring, recording economic information about business.

a) дополнение

b) обстоятельство

c) подлежащее

23. The amortized repayment plan is considered to be less preferable.

a) дополнение (часть Complex Object)

b) подлежащее (часть Complex Subject)

c) обстоятельство (часть независимого причастного оборота)

24. New technology having been introduced, the enterprise increased output.

a) обстоятельство (часть независимого причастного оборота)

b) подлежащее

с) дополнение

25. To employ workers with little human capital is one of the ways of minimizing labour cost.

a) обстоятельство

b) дополнение

c) подлежащее

VIII. Выберите правильную неличную форму глагола.

26. A specified interest rate is known _______ on the original amount of the loan.

a) to pay

b) to be paid

c) to be paying

27. The term is also used ______ to loans which have equal principles of payment.

a) refer

b) referred

c) to refer

28. If an individual wants his business __________, he has to take a loan from a bank.

a)to expand

b) expand

c) expanding

29. The loan __________ for a long period of time, the borrower should get to know the interest rate.

a) be given

b) being given

c) is given

30. These methods are useful for ________ farm efficiency.

a) improved

b) have improved

c) improving

IX. Выберите правильную форму сослагательного наклонения.

31. If the borrower ______ familiar with the methods of calculating interest last year, he _________ all the money.

a) were, would not lose

b) would be, would not have lost

c) had been, would not have lost

32. If the method ______, the interest of payment _____ high in the early years of the loan.

a) had been used, would have been

b) were used, would have been

c) had been used, would be

33. If this system of management ________ to be effective, they ________ it.

a) has proved, would have adopt

b) proved, would adopt

c) proved, would have adopted

34. If they ______ double entry bookkeeping system that year, they _______ the error in balances.

a) used, would find

b) had used, would found

c) had used, would have found

35. If they _______ $ 500, the interest ________ $ 40.

a) had borrowed, would be

b) borrowed, would be

c) borrowed, would have been

 

X. Переведите текст письменно.

To serve as a means of deferred payment is an important function of money due to the fact that most business is transacted on the basis of credit nowadays. When goods are supplied on credit, the buyer becomes the owner of the goods at the time of delivery, but he does not have to make payment at once. The buyer pays by installments within a certain period of time, for instance, three or even six months after delivery. When signed, a special contract, usually referred to as “the hire purchase contract”, lets the buyer make payments over several years.

A complex system of consumer credit can only operate in a monetary economy. Sellers are not expected to deliver goods for promises of future payment in terms of any goods except money, for it will be difficult for them to say how much of which commodity they will need at which particular time in future. If not required by the seller himself, the commodity received in payment may be difficult to trade for another one. Being a universal medium of exchange, money lets sellers rely on promises of payments in terms of money to be made in future.

 

Вариант 2

 

I. Прочитайте и переведите текст (устно).

 

AUDITING

 

The profession of the auditor is considered to be one of the most prestigious and well-paid. Auditors are accountants who analyze financial statements of the company and their responsibility is to express an opinion as to whether the accuracy of the company's financial reporting meets the requirements imposed by the government. In general, auditors deal more with operating efficiency and managerial effectiveness than with the accuracy of the accounting data.

Internal auditors are known to be hired by the company in order to help to identify accounting weaknesses and correct them before significant errors occur. They are often analytically minded people who make flowcharts of accounting systems and evaluate these flowcharts to suggest improvements in division of labour, paper flow, cash control, or other accounting responsibilities.

Independent auditors are employed by the company's Board of Directors to supply the stockholders with the results of checking the financial statements, in order to prove that annual reports are fair representations of the financial position of the company. Performing his work the auditor should follow several principles and assumptions: the company's accounts must represent a true financial position; generally accepted accounting principles have been used at all accounting steps and accounts can be compared with those of similar companies; the proper amount of information is disclosed in the financial statements. As a result, the auditor's opinion should be based only on facts and it must be objective. Auditors are expected to maintain the relationship of strict independence and professionalism with the companies for whom they work, so they mustn't hold shares in these companies. On the one hand, the auditor should respect the client's confidence, so having the access to some private information, the auditor must not spread it outside. On the other hand, he should think of public interests, that is why he must publish his opinion in a standard form and the information is to be clear to the stockholders. But he must always carry out his duties under the law and inform authorities about fraud.

 

II. Выберите правильный вариант ответа на вопросы к тексту.

1. What do auditors analyze?

a) wages calculation

b) cost budgeting

c) complex system of financial statements

2. Why should an auditor be totally independent in his job?

a) because he should represent the interests of the company he carries out an audit for

b) because he must carry out auditing in accordance with the law

c) because he is a member of the Board of Directors

3. Who are internal auditors hired by?

a) the company's shareholders

b) the company's Board of Directors

с) some independent organizations

 

III. Закончите предложения по содержанию прочитанного текста.

4. Internal auditors are employed _________.

a) to merge the companies

b) to suggest upgrading accounting responsibility

c) to analyze managerial effectiveness

5. Independent auditors are hired ________.

a) to supply shareholders with bonuses

b) to inform the shareholders about the changes within the company

c) to prove that annual reports are fair representations of the company’s financial position

6. The proper amount of information is disclosed ________.

a) in the financial statement

b) at press conferences

c) in reports at official meetings

7. The profession of the auditor is considered to be _______.

a)well-paid

b)one of the less prestigious

c) a badly-paid one

8. The company's accounts must represent ________.

a) shareholders' opinion

b) flowcharts of the accounting system

c) a true financial position

 

IV. Подберите эквивалент к данному русскому слову или словосочетанию.

9. исправление ошибок

a)error correction

b)statistical correction

c) net balance correction

10. независимый бухгалтер-ревизор

a) assistant auditor

b) independent auditor

c) internal auditor

11. смета

a) statement

b) fund

c) debt

12. блок-схема

a) bar chart

b)diagram

c) flowchart

13. данные

a) date

b)data

c) datum

14. выполнять

a) spread

b) carry out

c) evaluate

15. доверие

a) confidence

b) respect

c)privacy

V. Выберите русское предложение, наиболее точно передающее содержание предъявленного.

16. Auditor's responsibility is to express an opinion as to whether the accuracy of the company's financial reporting meets the requirements imposed by the government.

a) Аудитор отвечает за точность финансового отчета компании, чтобы отвечать правительственным требованиям.

b) Правительство требует, чтобы действия аудитора соответствовали требованиям компании.

с) В обязанности аудитора входит составление заключения о соответствии финансового отчета компании государственным требованиям.

17. Internal auditors are known to be hired in order to help to identify accounting weaknesses and correct them before significant errors occur.

a) Известные внутренние аудиторы нанимаются компанией для опознания их слабых сторон и исправления всех ошибок.

b) Внутренних аудиторов, как известно, нанимают компании для того, чтобы вскрыть незначительные погрешности бухгалтерского учета и исправить их во избежание грубых ошибок.

с) Внутренние аудиторы известны тем, что их для порядка нанимают для распознания бухгалтерских недостатков и корректировки ошибок, которые могут появиться.

18. On the one hand, the auditor should respect the client's confidence, on the other hand, he should think of public interests.

а) С одной стороны, аудитор должен уважать доверие клиента, с другой стороны, он должен заботиться об общественных интересах.

b) С левой руки, аудитор должен уважать доверие клиента, с правой – общественные интересы.

с) По левую руку у аудитора должно стоять уважение клиента, по правую – интересы общественности.

VI. Выберите английское предложение, наиболее точно передающее содержание предъявленного.

19. The profession of the auditor is considered to be well-paid.

a) People think that to get the profession of the auditor one should pay much.

b) If people want to be auditors, they should pay much.

c) In public opinion people working as auditors get a lot of money.

20. They evaluate these flowcharts to suggest improvements in division of labour.

a) By analyzing the flowcharts they propose how to increase accounting efficiency.

b) The data published in annual reports disclose the true situation in financing.

c) They calculate the fines to be charged for errors to improve financial situation in the company.

21. Generally accepted accounting principles have been used at all accounting steps.

a) Doing accounting it is necessary to avoid troubles.

b) Making a fiscal account it is important to use fair information.

c) A set of basic instructions have been strictly observed while accounting.

 

VII. Определите функцию неличной формы глагола.

22. The company's Board of Directors expects independent auditors to supply the stockholders with the results of checking the financial statements.

a) подлежащее (часть Complex Subject)

b) дополнение (часть Complex Object)

c) обстоятельство (часть независимого причастного оборота)

23. The annual report checked, the auditors presented the analysis to the Board if Directors.

a) подлежащее (часть Complex Subject)

b) обстоятельство (часть независимого причастного оборота)

c) определение

24. The company's financial statements are unlikely to represent accurate information to the public.

a) обстоятельство (часть независимого причастного оборота)

b) дополнение (часть Complex Object)

c) подлежащее (часть Complex Subject)

25. To employ workers with little human capital is one of the ways of minimizing labor cost.

a) дополнение

b)определение

c) обстоятельство

 

VIII. Выберите правильную неличную форму глагола.

26. Nationalized industries are said ________ the most important source of national income.

a) becoming

b)have become

c) to have become

27. Economists consider national resources _______ the third factor of production.

a) will be

b) to be

c) are

28. When money is borrowed, the amount ______ next year is measured in units of national currency.

a) to be repaid

b) to have been repaid

c) to be repaying

29. Low inflation and unemployment rates can be ensured by ________ a tight income policy.

a) adopted

b)adopting

c)be adopting

30. The company is reported to specialize in __________ small size farm machinery.

a)to be produced

b)produce

c)producing

IX. Выберите правильную форму сослагательного наклонения.

31. If a transaction _______ last year, the exchange rate _______.

a) occurred, would be lower

b) occurred, will be lower

c) had occurred, would have been lower

32. If a small company ______ to prepare some financial statements, it ______ use of services of an outside accountant.

a) will want, will make

b) wanted, would make

c) would require, would make

33. If the auditor _______ any private information outside, the company_______ last year.

a) had not spread, would not have failed

b) would have spread, would not have failed

c) would spread, would not have failed

34. If the auditor ______ out his duties under the law, he ____ the authorities about the fraud.

a) will carry, will inform

b) would carry, will inform

c) carried, would inform

35. The bookkeeper ______ the necessary adjustments provided there ____ changes in the tax rate.

a) would make, were

b)would make, would be

c) made, would be

 

X. Переведите текст письменно.

Of the various specialized areas of accounting that exist, the three most important are: 1) auditing, 2) income taxation, 3) non-business organizations.

Auditors are accountants who estimate the accuracy of a company's financial statements, and if they find any disagreements in the documents with generally accepted accounting principles, they will be responsible to inform about them in their report.

Income taxation as the second area of accounting specialization includes determination of a company's taxes according to the existing laws. The tax accountant sometimes may be a lawyer, because if there had been any changes in the tax law, he would have informed the company about it. The methods chosen to report assets and liabilities will influence the amount of tax to be paid, at least within the fiscal year.

The third area of specialization is accounting for non-business organizations, such as universities, hospitals, churches, trade and professional associations, and government agencies. These organizations differ from business companies in many items: 1) they receive resources without paying for them, 2) they do not have profit orientation, 3) they have no defined ownership interests as such.

 

 

Контрольная работа № 2 по английскому языку для студентов экономических специальностей заочного отделения II семестр

Вариант 3

I. Прочитайте и переведите текст (устно).

ACCOUNTING STEPS

 

Each time an item is purchased or sold, a bookkeeper performs the first three steps of the cycle and passes on the information to the accountant who carries out the last four steps such as:

1) calculate adjustments; 2) prepare adjusted trial balance; 3) prepare financial statements; 4) close entries. The most common reasons the accountant should consider preparing adjustments are the following: increased revenue (for example, interest earned but not yet received); any government taxes or employees’ salaries that have not been paid yet; the value of the office supplies that have been used (electricity, water, etc); depreciation of the assets; changes in the inventory, etc.

As to the inventory, it involves the physical measurement, counting and evaluation of items for sale. Inventory evaluation is subject to a variety of accounting methods, since many inventory items cannot be specifically calculated. The grain in a grain elevator, for example, comes from different sources and may have been bought at several prices. An accountant must choose between one of several methods for valuing the grain; each will provide a slightly different value figure. On the fifth step when the adjustments are calculated, the accountant prepares an adjusted trial balance that combines the original trial balance with the effects of the adjustments. The balances in the accounts are the data that make up the organization’s financial statements such as a balance sheet and an income statement. The preparation of these statements is considered to be the main purpose of the sixth step. The final step comprises a series of bookkeeping debits and credits to transfer sums from income statement accounts into owner’s equity accounts, and thus into capital. Such transfers reduce the balance of all accounts to zero, therefore the accounting books will be ready for the next accounting period.

 

 

II. Выберите правильный вариант ответа на вопросы к тексту.

1. Who is responsible for the first three steps of the accounting cycle?

a) an independent auditor

b)a bookkeeper

c) an accountant

2. What does the final step performed by the accountant comprise?

a) closing entries

b) a series of bookkeeping debits and credits

c) preparing adjusted trial balance

3. What is implied by the “inventory” term?

a) figures in the balance sheet

b) items of goods sold last year

c) counting items for sale

 

III. Закончите предложения по содержанию прочитанного текста.

4. A bookkeeper passes on the information every time an item is sold or bought ______.

a) to the accountant.

b) to the marketing manager

c) to the CEO (Chief Executive Officer)

5. While transferring sums from income statement accounts into owner’s equity accounts, the balances of all accounts _______.

a) increase dramatically

b) are reduced to zero

c) go down slightly

6. If, for example, grain is bought the accountant has to ________.

a) weigh the grain

b) mill the grain

c) combine the original trial balance with the effects of the adjustment

7. On the fifth step the accountant prepares ________.

a) an inventory to be presented to the chief manager

b) an adjusted trial balance

c) a series of bookkeeping debits and credits

8. The balances in the account are the data __________.

a) of a balance sheet

b) of an income statement

c) of two financial documents

 

IV. Подберите эквивалент к данному русскому слову или словосочетанию.

9. учет прибыли и убытков

a) audited statement

b) financial statement

c) income statement

10. процентный доход

a) interest revenue

b) budget revenue

с) casual revenue

11. обесценивание

a) depreciation

b) definition

c) department

12. свести отчетность

a) prepare adjustments

b) to make a balance sheet

c) close entries

13. предварительный баланс

a) balance sheet

b) trial balance

c) cash balance

14. обеспечение офиса

a) office supplies

b) assured supplies

c) official supplies

15. личный счет акционера

a) deposit account

b) equity account

c) current account

V. Выберите русское предложение, наиболее точно передающее содержание предъявленного.

16. The most common reasons for the accountant to be considered while preparing the adjustments are the following: increased revenue, depreciation of the assets, etc.

a) Причины, по которым оценивается работа компании, следующие: увеличение штатов, снижение налогов.

b) Бухгалтер рассчитывает будущий доход по прибылям, учитывая все активы компании.

c) Когда бухгалтер вносит поправки, он должен учитывать наиболее общие факторы, такие как возросшие доходы, амортизация имущества и т.д..

17. The preparation of these statements is considered to be the main purpose of the sixth step.

a) Подготовка этих утверждений берется за основу шестого шага.

b) Главной целью шестой стадии данной операции считается подготовка этих финансовых документов.

c) Шестым шагом этой операции является подготовка этих квитанций.

18. Inventory evaluation is subject to a variety of accounting methods.

a) Товарно-материальные ценности подвергаются предметному многообразию бухгалтерских методов.

b) Товары оцениваются различными бухгалтерскими методами.

c) При оценке товарно-материальных ценностей используются различные методы бухгалтерского учета.

 

VI. Выберите английское предложение, наиболее точно передающее содержание предъявленного.

19. A bookkeeper passes on the information to the accountant.

a) A bookkeeper and the accountant exchange the information on wages.

b) A bookkeeper provides the accountant with all the data obtained.

c) A bookkeeper checks all the information for the accountant.

20. When the adjustments are calculated, the accountant prepares the adjusted trial balance that combines the original trial balance with the effects of the adjustments.

a) With all the adjustments done, an accountant prepares corrected trial balance.

b) The accountant prepares all the information received to report to the top.

c) A junior bookkeeper submits the original trial balance with all the adjustments calculated to the Board of Directors.

21. The balances in the accounts are the data that make up the organization’s financial statements such as a balance sheet and an income statement.

a) The account balances are the reports that present the company’s financial statements as a balance sheet and a bank statement.

b) The balances in the accounts are the totals of money coming into and going out of the accounts and recorded in the financial statements.

c) The original balances are the reports that include the calculation of total assets and the evaluation of the inventory.

 

VII. Определите функцию неличной формы глагола.

22. With the wages increased, the organization could attract more skilled employees.

a) определение

b) подлежащее (часть Complex Subject)

c) обстоятельство (часть независимого причастного оборота)

23. The managers believe the new product to be in great demand.

a) определение

b) дополнение (часть Complex Object)

c) подлежащее (часть Complex Subject)

24. Inventory evaluation involves a variety of accounting methods.

a) обстоятельство (часть независимого причастного оборота)

b) подлежащее (часть Complex Subject)

c) определение

25. Certified Public Accountants are sure to pass difficult national exams to be licensed by the state.

a) обстоятельство (часть независимого причастного оборота)

b) подлежащее (часть Complex Subject)

с) определение

 

VIII. Выберите правильную неличную форму глагола.

26. The balance sheet is one of the important financial reports ______ the value of the total assets.

a) showed

b) showing

c) be showing

27. It’s the document that states the amount of money ________ from an investor that will be repaid.

a) borrow

b) borrowing

c) borrowed

28. The Board of Directors objected to ________ dividends to the shareholders immediately.

a) paying

b) paid

c) pay

29. The accountant made a bookkeeper ________ an income statement.

a) to prepare

b) prepare

c) preparing

30. Accountant is expected ________ a certificate permitting him to perform outside.

a) to have

b)had

c) have

 

IX. Выберите правильную форму сослагательного наклонения.

31. If planned investment ______ greater than planned saving, it _______ the economy to expand.

a) were, would help

b) will be, would help

c) were, would have helped

32. The accountant ________ final statements more quickly last month if he _______ the necessary computer program.

a) prepared, would have

b) would prepare, had

c) would have prepared, had had

33. The production cost _________ if the old equipment _________.

a) would be lower, had been replaced

b) would be lower, were replaced

c) would be lower, would be replaced

34. If immigration barriers _______ in advanced countries, wages of resident workers ________.

a) will be eliminated, would fall

b) will be eliminated, will fall

c) were eliminated, would fall

35. If all the necessary adjustments in the balance sheet ______ in advance, the Financial Manager _________ it.

a) had been made, would have approved

b) were made, would approved

c) are made, would be approved

X. Переведите текст письменно.

Accountants and bookkeepers work for business firms, government agencies, and many other organizations. In the USA public accountants are those who are available to the public for such accounting functions as monthly bookkeeping and tax preparation. Most states do not regulate the qualifications or performance of public accountants.

The only accountants permitted to offer the opinions about financial statements should be Certified Public Accountants (CPAs), who have passed difficult national examinations. Accountants must also fulfil the requirements of the state in which they practice including several years of varied experience within the profession. Provided a person is a certified accountant, he will be licensed by the state to perform accounting services to clients for a fee.

Business companies, banks and large corporations employ their own accountants to examine their accounts and prepare financial statements or maintain their own international accounting departments. If a small company or business required to prepare some financial statements, it would hire the services of an outside accountant.

 

 

Контрольная работа № 2 по английскому языку для студентов экономических специальностей заочного отделения II семестр

Вариант 4

I. Прочитайте и переведите текст (устно).

BUSINESS CORPORATION

 

The private business corporation is known to be the only type of corporation but there also exist other types, for instance, public corporations owned by governmental bodies. The Tennessee Valley Authority formed in the 1930s in the USA can be mentioned as an example of a federal corporation, which is to provide power, control floods and provide irrigation.

The majority of corporations in the USA are small and they make up approximately 25 percent of all business companies, however, this figure understates the real economic significance of the corporate business organization. Modern technological developments largely account for the appearance of corporate giants in such sectors of the economy as manufacturing, transportation and utilities, mining, banking and insurance, and retail trade.

In view of the growing importance of corporations, society is faced with three major problems. First, the growth in corporate size has brought about an increasing separation of control from ownership. In large companies a stockholder no longer performs effective control; actual control belongs to management, which tends to be self-selecting and responsible only to itself. Second, the size of many corporations gives them economic power that permits to ignore the discipline of the competitive market, because it is large corporations that have real control over the prices charged for the goods they produce. Finally, society cannot be sure that the corporate performance serves public interest.

Public interest requires organization and operation of business to be subject to governmental regulation, and many laws have been enacted for the purpose of ensuring a competitive pluralism in production and trade. Government regulation, particularly in the USA, attempts to prevent the formation of monopolies that totally control a particular branch of industry such as steel, petroleum, or automobile production. Governments also regulate public utilities and transportation, guarantee loans to homeowners, subsidize shipping, build highways and airports, administer price-support programmes for farmers.

II. Выберите правильный вариант ответа на вопросы к тексту

1. What percentage do the USA corporations make up of the whole business sector?

a) 40%

b) 25%

c) 50%

2. Who performs actual control in large companies?

a) Board of Directors

b) stockholders of record

c) federal government

3. What does government regulation in the USA try to prevent?

a) total control over particular industries imposed by huge holdings

b) total control over prices

c) price support programmes for farmers

 

III. Закончите предложения по содержанию прочитанного текста.

4. The private corporation is considered to be the only type of corporation and_______.

a) you can hardly see any other types of corporations

b) there appeared other types as well, public corporation, for example

c) today there also exist new types of consumer markets

5. People are sure that________.

a) corporate activities are not likely to serve public interest

b) government regulates interest rates

c) state performs effective control over monopolies’ activities

6. The application of upgraded technologies largely explains the appearance of_______.

a) small insurance companies

b) corporate giants in some industries

c) corporate pluralism in retailing

7. The enlargement of companies seems to bring about_______.

a) real control over the prices

b) separation of control from ownership

c) increasing control over production output

8. Society wants organization and operation of business_______.

a) to be liable to state control

b) to be subject to regulations of the Board of Directors

c) to be open to private regulation

 

IV. Подберите эквивалент к данному русскому слову.

9. страховка

a) sure

b) insurance

c) ensure

10. преуменьшать

a) understate

b) understand

c) underline

11. коммунальные услуги/сооружения

a) utility

b) utilizations

c) utilities

12. управлять

a) administrative

b) administer

c) administrate

13. больше не

a) particularly

b) approximately

c) no longer

14. субсидировать

a) subsidize

b) subsidiary

c) substitute

15. конкурентный

a) compete

b) competitive

c) competition

V. Выберите русское предложение, наиболее точно передающее содержание предъявленного.

16. Government regulation, particularly in the USA, attempts to prevent the formation of monopolies that totally control a particular branch of industry such as steel, petroleum or automobile production.

a) Правительство США предотвращает формирование монополий и пытается полностью контролировать все отрасли промышленности.

b) Государственное регулирование, в особенности в США, пытается предотвратить формирование монополий, которые полностью контролируют определенную отрасль промышленности, например производство стали, добычу нефти или автомобилестроение.

c) Государственное регулирование и контроль особенно важны при формировании монополий в таких отраслях промышленности США, как производство стали, добыча нефти или автомобилестроение.

17. Public interest requires organization and operation of business to be subject to governmental regulation and many laws have been enacted for the purpose of ensuring a competitive pluralism in production and trade.

a) Публичный интерес требует от государства регулирования организации операций в бизнесе, и многие законы были разработаны для поддержки конкурентно-способности.

b) Государствo разрабатывает законы об организации бизнеса, и многие законы уже были приведены в действие с целью обеспечения плюрализма в производстве и торговле.

c) Общественность требует, чтобы бизнес подлежал правительственному регулированию, в результате были приняты многочисленные законы, обеспечивающие справедливую конкуренцию в торговле и производстве.

18. Governments also regulate public utilities and transportation, guarantee loans to homeowners, subsidize shipping, build highways and airports, administer price-support programmes for farmers.

a) Правительства штатов регулируют показатель общественной полезности, гарантируют ссуды, кредитуют кораблестроение, строят дороги и аэропорты.

b) Правительства штатов осуществляют контроль за коммунальными сооружениями и транспортом, гарантируют выдачу ссуд домовладельцам, субсидируют кораблестроение, строят автомагистрали и аэропорты, а также осуществляют контроль за поддержанием цен на сельскохозяйственную продукцию с целью защиты фермеров.

c) Государства администрируют программы поддержания цен для фермерских хозяйств.

 

VI. Выберите английское предложение, наиболее точно передающее содержание предъявленного.

19. The size of many corporations gives them economic power that permits to ignore the discipline of the competitive market because it is large corporations that have real control over the prices charged for the goods they produce.

a) Most corporations are ignored by the competitive market as it has real economic power permitting to charge prices for the goods that corporations produce.

b) Large corporations ignore the regulations of the competitive market, but they don’t have real economic power to set the prices for the goods they produce.

c) Large corporations have economic power to take no notice of the rules of the competitive market because of having authority to charge and regulate prices.

20. Modern technological developments largely account for the appearance of corporate giants in such sectors of economy as manufacturing, transportation and others.

a) The development of up-to-date technologies is the reason for setting up multinationals in various sectors of the economy.

b) Corporate giants are not responsible for social progress.

c) Modern technological developments have led to the changes in the economy.

21. In large companies a stockholder no longer performs effective control; actual control belongs to management, which tends to be self-selecting and responsible only to itself.

a) Management supports the strategy of delegating authority and government intervention.

b) Shareholders of large corporations have lost the real power to take charge of the organization; it is the Board of Directors which really runs the company.

c) In large corporations employees take active part in decision-making.

 

VII. Определите функцию неличной формы глагола.

22. The Board of Directors is known to follow the general direction.

a) определение

b) подлежащее (часть Complex Subject)

с) часть сказуемого

23. The company initially specialized in manufacturing light bulbs.

a) подлежащее (часть Complex Subject)

b) определение

с) дополнение

24. Having examined the company’s financial position, the auditor is able to arrange the appointment with the General Director.

a) подлежащее (часть Complex Subject)

b) дополнение (часть Complex Object)

c) обстоятельство

25. Growing importance of corporations does not serve the public interest.

a) дополнение (часть Complex Object)

b) определение

c) часть сказуемого

 

VIII. Выберите правильную неличную форму глагола.

26. Economic power of large companies is supposed _______the common rules that govern the market.

a) to ignore

b) ignore

c) ignoring

27. ______ to prevent the formation of corporations, the government faced strong opposition.

a) tried

b) to try

c) trying

28. The government expects businesses ________ most social programs.

a) finance

b) to finance

c) financing

29. Public interest requires business________ by the federal bodies.

a) to be regulating

b) to be regulated

c) to regulate

30. Success in business depends on _______ the right policy and strategy.

a) choosing

b) having