Staff – штат, служащие, рабочие
| 1) accountant staff 2) administrative staff 3) hired staff 4) junior staff 5) office staff 6) permanent staff 7) senior staff 8) temporary staff | a) служащие по договору найма b) временный штат c) нижестоящие, подчиненные d) бухгалтерия, бухгалтеры e) вышестоящие, начальство f) административные работники g) конторские служащие h) постоянный штат |
Income – доход
Tax – налог
| 1) an annual income 2) a high income 3) a low income 4) a monthly income 5) a regular income 6) declaration of income 7) taxable income 8) total income 9) income tax 10) taxless | a) постоянный доход b) подоходный налог c) суммарный налог d) декларация доходов e) годовой доход f) низкий уровень дохода g) ежемесячный доход h) высокий уровень дохода i) налогооблагаемый доход j) не облагаемый налогом |
2.6 Say how these words are formed:
Vice-president, vice-consul, international, multinational, reorganization, director,
president, officer, corporation, development, responsible
Complete the chart with the words. Translate the words into Russian, learn them by heart.
| Verb | Noun | Adjective | Adverb |
| divide | |||
| directive | |||
| declaration | |||
| taxless | |||
| successfully | |||
| government | |||
| administer | |||
| commercially | |||
| own |
Complete each sentence with the words made from the words in capitals.
THE COMPANY
| A company is form of business ___1__. A company is made up of people united in an ___2___ or ___3___ enterprise. A company can be also called a firm or a ___4___. When it is producing goods or trading, we say it is in business. A company which is just starting is going into business and a firm which stops operating goes out of business. The owners are the ___5___ who risk their wealth I in the name of their business success. If a company is ___6___, it makes profit and financial gains are received by the ___7___. If, on the contrary, things go ___8___, the company suffers loses and other bad consequences. | ORGANIZE INDUSTRY COMMERCE BUSY NDIVIDUAL SUCCESS OWN POOR |
2.9 Read the information given below. Fill in the blanks in the text Company Structure with the words given in the box. Do companies in your country have the same structure?
| Chairperson Managing Director shareholders company decisions organization hierarchy management departments workforce |
COMPANY STRUCTURES
Most companies are made up of three groups of people: the ___1___ (who provide the capital), the ___2___, and the ___3___. The management structure of a typical company is shown in the following ___4___ chart:
BOARD OF DIRECTORS
(Headed by the Chairperson)
MANAGING DIRECTOR
SENIOR MANAGEMENT
MIDDLE MANAGEMENT
At the top of the company ___5___ is the Board of Directors, headed by the ___6___ (or President). The Board is responsible for making policy ___7___ and for determining the company's strategy. It usually appoints a ___8___ (or Chief Executive Officer) who has overall responsibility for the running of the business. Senior managers head the various ___9___ or functions within a ___10___, which may include the following: Marketing, Finance, Public Relations, Production, Personnel (or Human Resources), Research and Development (R&D).
READING
3.1 Look through the text Companies and choose the correct answer in the sentences given after it.
COMPANIES
А. Sole proprietorship (UK) / individual proprietorship (US):
Sole proprietors are individuals carrying out economic operations in various spheres of business activities (industrial, trade, transport, banking etc.) and concluding commercial deals on their own behalf.
The legal form is not to be indicated in the name of the firm. The hired staff are not referred to as proprietors.
The proprietors must be registered the trade register, obtain a license to carry out business activities and keep the books reflecting the results of the latter. The contents of the books are a commercial secret not accessible to a third party. In case of a lawsuit the books can be open for the court and the parties concerned provided the proprietor acts either as a plaintiff or a defendant. Also, the books can be made public in case of either insolvency or inheritance.
Sole proprietors are not subject to public report therefore it is not possible to get true information of their activities.
The sole proprietor is not a legal person and is fully liable with his property by the obligations of his firm. Millions of sole proprietors in the world carry out business activities mainly in the sphere of various services and retail trade.
B. Unlimited Partnership (UK). General Partnership (US):
The main feature of unlimited partnerships is equal and collective responsibility for the property for all members of the partnership, in other words, creditors can be paid either at the expense of the partnership's property or private property of the members. Besides, the agreement can not provide for the exception of property liability of any of the members before a third party. The property of the unlimited partnership is a joint property of its members.
The profit obtained is distributed proportionately to the share of participation in the property of the partnership. Concession of the share of participation can be made only with the consent of the members. The number of the members of the partnership is not limited.
The unlimited partnership can be disbanded either in case of insolvency or resignation of one of its members or by resolution of all participants. Unlimited partnerships are not subject to public report.
C. Limited Partnership (UK,US):
The limited partnership is a contractual union of entrepreneurs participating only by way of contributions without taking direct part in the management (investors); and those who, apart from contributing, carry out direct management of the partnership and are fully liable by the partnership's obligations with their own property (full members).
It takes at least one full member and one investor to form a limited partnership. The limited partnership is to be registered just like any unlimited partnership.
The name of the partnership includes the names of one or two full members; the including of the name of the investor into the firm's name makes the investor equally and jointly liable by the partnership's obligations.
D. Master Limited Partnership (MLP):
Master limited partnerships carry out business activities on the basis of a Charter and are to be registered. One or more full members and shareholders as investors make a partnership. Shares can either be sold to or distributed among the investors or quoted on the stock exchange. Full members run the partnership and are liable by the partnership's obligations. The shareholders run the risk of devaluation of their shares. A legal person can act as a full member. Thus a master limited partnership bears characteristics both of a limited partnership and a public limited company. The advantage of a master limited partnership is in getting additional income through an issue of securities and their subsequent sale on the securities' market. Dividends are tax exempt, so the investors are mainly attracted by a tax regime of master limited partnerships which pay only income tax.
E. Private Limited Company (UK.). Close Corporation (US):
A private limited company has the word 'Limited' or the abbreviation 'Ltd' in its name. A private limited company should be registered under the Companies Act and act in compliance with its Charter. The company is a legal person fully liable by the company's obligations. The equity capital of the company is formed at the expense of deposits; the shareholders get a certificate of deposit which is not considered to be a security and as a rule can not be assigned to third persons without the consent of other shareholders of the company, that provides for the close character of the company. There are private limited companies with a single shareholder.
There is one more circumstance that limits the financial rights and hence production opportunities of the private limited companies: they are not allowed to issue debentures and announce public subscription for their shares.
Private limited companies keep statutory books which are not subject to public report. The number of members of the company is not large, usually consisting of close relatives or people knowing each other well, who united for business.
F. Public Limited Company (UK). Corporation (US):
Public limited company is the main legal form of large firms. A pubic limited company is a union of investors called shareholders. It carries out business activities on the basis of the Articles of Association and is to be registered under the Companies Act. Any legal person or an individual can be a founder of the company. The shareholders are not liable by the company's obligations. The public limited company is the most stable kind of unification of capitals as the resignation of any of its investors does not involve the liquidation of the company. The investor has a right to sell his shares without consent of other shareholders.
The initial share capital is formed by way of selling shares. During that period the initial share capital is the only source of financing of its activities. The means obtained from the sale of shares are used for the purchase of plots of land, industrial premises and offices, equipment, basic commodities (raw materials) to launch manufacturing activities. Therefore the company receives an income and also can be financed by way of issuing debentures and securing bank loans.
Thus a number of advantages make a public limited company the most effective means of concentration and centralization of capital goods and capital. The shareholders can return their capital only by way of selling shares at the price currently quoted on the stock exchange.
The shareholders have property and personal rights. Property rights are realised in case of liquidation of a company and in case of getting dividends. Personal rights mean the right to vote; normally a share gives a right for one vote. The decisions are to be taken by a large majority, hence the person or a legal person holding the majority interest is the one who makes resolutions. Public limited companies' names must have the abbreviation 'pic' in their name.
1. A partner is………
a) Any person who signs any kind of legal document.
b) A person or group of people who take part in a legal agreement or dispute.
c) One of two or more people who run a business.
2. The investor of the public company has a right to sell the shares belonging to him:
a) Only with the permission of the Chairman of the Board of Directors.
b) Without the consent of other shareholders of the company.
c) Only to the shareholders of the same company with the resolution of the shareholders' meeting to follow.
3. A sole / individual proprietor is………
a) The managing director of the company,
b) An individual carrying out economic operations in different spheres of business activities and concluding commercial deals on his own behalf
c) A hired person who is in charge of the operation of the company.