Translate into English using the expressions from the previous task

(перевести и выучить – 2 балла)

добровольные образования

образованные с целью ведения бизнеса

делить ответственность

получать налоговые льготы от правительства

с ограниченной ответственностью

с неограниченной ответственностью

зависеть от факта

специализироваться в аспектах бизнеса

недостаток партнерства

не соглашаться друг с другом

стабильный тип организации

общая форма бизнеса

Translate into English using the expressions from the previous tasks

(перевести письменно – 2 балла)

1 Это партнерство образовано с целью ведения бизнеса для получения прибыли.

2 Партнеры делят ответственность за принятие решений и получают льготное налогообложение от правительства.

3 Успех в бизнесе зависит от правильного выбора типа собственности.

4 Двадцать человек образовали партнерство, чтобы вести бизнес.

5 Партнеры получают льготное налогообложение от правительства.

6 Эти партнеры специализируются на покупке и продаже.

7 Партнерство ответственно за торговые риски.

8 Это партнерство ведет бизнес в страховании.

READING

I

Partnership. A partnership is a business organization that is owned by two or more persons. Partnerships offer certain advantages over sole proprietorships:

Partners bring additional funds to proprietorship.

Partners can bring fresh ideas and talents to business organizations.

Like the sole proprietorship, partnerships are relatively easy to form and are not subject to special taxation.

Partnerships have the following disadvantages:

In many cases, each of the partners is subject to unlimited liability. Partners are individually responsible for all the debts of the business. In other words, if the business were to fail, its creditors (those to whom money is owed) would have the right to recover their money from any, or all, of the partners.

Such was the case with Harold Nodough, Gloria Poor and Jack Rich who owned the Trio Dress Shoppe as a partnership. Under the terms of their partnership agreement, Nodough and Poor were each entitled to 40 % of their profits, while the remaining 20% went to Rich. Last month the firm collapsed. After selling off everything is owned, the company still owed its creditors $10000. since Nodough and Poor had no assets of their own, the creditors recovered the total amount from Rich’s personal bank account. Partnership agreements, however, can be designed to limit the liability of each partner so that investors like poor Mr. Rich can be protected.

Any time a partner dies or with draws from the business, the partnership is legally terminated. If the business is to continue, a new partnership agreement must be drawn up.

The amount of capital that a partnership can raise is limited. Exactly what this limit is will depend on the earnings of the business, the wealth of the partners, and their liability to borrow.

Partners may disagree, causing management conflicts that could threaten the firm’s existence.

 

II

The Price System. One of the remarkable things about the American economic system is that it seems to run by itself. No central economic agency dictates responses to What, How and Who questions. Yet the questions are answered.

Prices determine what we are willing and able to buy. They influence us to continue in school or to accept a job. Prices help to determine what and where factories will be built, which businesses will succeed, which will fail, and even the color and style of the clothing that will be manufactured.

Prices, the money value of goods and services, carry so much information and so affect the behavior of buyers and sellers that economists often describe our economy as a price-directed system.

The price system provides the answers to the fundamental questions of What goods and services will be produces, How they will be produced, and Who will receive them.

How the price system answers the What question. When buyers want more of a product, they are willing to pay more for it. Higher prices attract other producers. As production increases, the need for additional workers causes wages to rise within the industry. When demand for the product fails, the opposite happens. Prices fall, producers who can no longer operate profitably shut down, or switch to other products, and production falls enough to meet the reduced demand.

How the price system answers the How question. The price system encourages sellers to produce in such a way as to costs and maximize profits.

Stanly Lee owns a newspaper delivery service. Stanly used to rely on 10 to 15 kids with bicycles to deliver the newspapers before and after school. One day Stanley calculated that it would cost less to use one adult with an automobile than 15 kids on bicycles to deliver his newspapers. He laid off the school kids and hired the adult.

How the price system answers the Who question. Those who graduate from high school earn more, on the average, than those who drop out. Many professional athletes earn more than letter carriers. Physicians and attorneys earn more, on the average, than stenographers and building superintendents.

Since they earn more, professional athletes, physicians and attorneys can afford to buy more goods and services than people earning less than they do. Thus, by assigning values to the work people do, the price system answers the Who question.

III

Competition refers to the rivalry among buyers and among sellers. Sellers compete by trying to produce the goods and services buyers want at the lowest possible price. Those unable or unwilling to sell at a price low enough to attract buyers will be unable to dispose of their goods and services. This rivalry benefits us all.

It benefits us by giving us the goods and services we want, when and where we want them. Producers know that if they don’t satisfy consumer demand, their competitors will.

It benefits us because producers must constantly strive to operate more efficiently. The quest of greater efficiency conserns scarce resources, increases output and raises living standards by reducing costs.

Buyers compete with one another because there is never around everything to go around. Those willing to pay the price can buy a steak. Those unwilling or unable to pay will substitute a less costly product like chopped meat, chicken or hot dogs. In other words, in the rivalry among buyers of steak, those unable to pay the price will lose to those who are able to pay.

If we think of private property, the price system and competition as providing the foundation of our free enterprise economic system, then profits and other economic incentives supply the cement that holds the structure together.

The role of economic incentives. Economic incentives influence our decisions about what and where to buy.

The desire to achievethe greatest profit for our efforts is the principal economic incentive in the American and other market economies. Economists refer to this as economic self-interest.

Of course economic self-interest cannot explain human behavior. Workers may pass up the chance to earn more simply because they don’t want to move to another region. Business firms often reduce their profit by contributing to charitable or other public service organizations. Many parents forgo job opportunities to raise their children at home. And for many reasons other than price, consumers may prefer to shop at one store rather than another.

 

UNIT 3

Corporation

(рассказать наизусть – 4 балла)

The corporation. A business corporation is an institution formed by two or more shareholders, who put money into business and get a share of profit. Their share of ownership is represented by stock certificates. This form of ownership allows attracting financial resources, investing a large amount of capital into production, equipment and research, offering high salaries and attracting talented managers and specialists. Except privately owned corporations there are some other types two, such as educational, religious, charitable and governmental ones. Usually they don’t issue stock certificates and are non-profit.

Also a business may be owned in the form of franchising and other miscellaneous forms.

Active vocabulary

(выучить – 1 балл)

Institution – учреждение

share – доля

ownership – собственность

stockholder (shareholder) – акционер

stock certificate – акция

to attract – привлекать

to offer – предлагать

charitable – благотворительный

to issue stocks – выпускать акции

to share – делить

non-profit – неприбыльный

franchising – франчайзинг

miscellaneous – смешанный