Учебно-методическое пособие по обучению профессиональному общению (для студентов экономических специальностей, изучающих английский язык)

Министерство образования и науки Российской Федерации Омский государственный университет им. Ф.М. Достоевского

УДК 802.0 ББК 81.2я73 У 91 Рекомендовано к изданию редакционно-издательским советом ОмГУ 5 октября 2004 г. Рецензенты: ст. преподаватель каф. английского языка ОмГУ Н.В. Бегун; преподаватель каф. иностранных языков ОмГУ С.А. Батурина

У 91

Учебно-методическое пособие по обучению профессиональному общению

Учебно-методическое пособие по обучению профессиональному общению (для студентов экономических специальностей, изучающих английский язык) / Сост.: Н.А. Коровина, И.А. Сиволапова, О.К. Сургутская; под ред. С.Б. Невежиной. – Омск: Изд-во ОмГУ, 2004. – 104 с. ISBN 5-7779-0515-3

(для студентов экономических специальностей, изучающих английский язык)

Учебно-методическое пособие состоит из 3 частей. В первой части представлены 14 тем в соответствии с программой курса по английскому языку на экономических специальностях. Приложения, формирующие вторую часть пособия, содержат дополнительные упражнения к темам. Лексический минимум, представленный в третьей части, включает список слов, которые студенты должны знать, чтобы обсуждать профессиональные темы. Пособие предназначено для студентов I, II курсов и аспирантов экономических специальностей. УДК 802.0 ББК 81.2я73

Изд-во ОмГУ

Омск 2004

ISBN 5-7779-0515-3

© Омский госуниверситет, 2004 2

CONTENTS

ПРЕДИСЛОВИЕ

Introduction ..................................................................................................... 4

Учебно-методическое пособие представляет собой сборник тем для подготовки к курсовому экзамену по английскому языку (раздел “Беседа по теме”). Выбор тем соответствует программе по английскому языку на экономических специальностях: “Money”, “Management”, “Markerting”, “Recruitment”, “Small business” и т. д. Сборник состоит из трех частей: 1 часть – темы; 2 часть – приложение; 3 часть – лексический минимум. Интересные тексты, стимулирующие мышление и способствующие обмену информацией, лексические и речевые упражнения, информативный материал приложений и тематический словарь – все это должно помочь студентам научиться обсуждать профессиональные темы в рамках программы курса. Упражнения направлены на развитие лингвистической и коммуникативной компетенции: синонимию и словообразование, ознакомление с речевыми образцами, употребление различных клише в речи; развитие навыков диалогической и монологической речи. Тексты подобраны так, что преподаватель может найти подходящий для разного уровня подготовки материал. Пособие подготовлено на кафедре иностранных языков Омского государственного университета им. Ф.М. Достоевского.

Topic 1. An introduction to Economics........................................................... 5 Topic 2. Business ............................................................................................ 9 Topic 3. Money ............................................................................................. 13 Topic 4. Recruitment..................................................................................... 25 Topic 5. Types of business ............................................................................ 29 Topic 6. Franchising...................................................................................... 35 Topic 7. Company structure .......................................................................... 41 Topic 8. Management.................................................................................... 47 Topic 9. Marketing ........................................................................................ 60 Topic 10. Advertising.................................................................................... 63 Topic 11. Wholesaling, Retailing.................................................................. 66 Topic 12. Budgeting ...................................................................................... 69 Topic 13. Banking ......................................................................................... 72 Topic 14. Market place.................................................................................. 80 Supplementary (Tasks).................................................................................. 85 File 1 (money) ..................................................................................... 85 File 2 (recruitment).............................................................................. 86 File 3 (types of business)..................................................................... 87 A list of words to study ................................................................................. 89

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TOPIC 1. AN INTRODUCTION TO ECONOMICS TEXT 1 In summary Economics is a social science that studies the way society allocates its available resources in the production of goods and services consumed by people. Economics and the subject matter of economics, touches our lives daily. If we shop for groceries, go to work, or pay taxes, economics can help us to better understand our world. Macroeconomics is the study of entire economy. Microeconomics is the study of parts of the economy. While they view the economy from different perspectives, both are important. Scientific theories are used to explain economic activity in the world. The theories consist of sets of economic principles that abstract from the real world, similar to the way a road map abstracts from the world. A principle is obtained by continuously testing a hypothesis to see if it corresponds to activity in the world. Positive economics describes the way the world actually operates, and normative economics suggests how the world should operate. Positive economics is based on testable hypothesis, which can be proved false. Normative economics is based on an individual’s values, which cannot be proved either right or wrong. The economist seeks to identify the benefits and costs of any activity. Since marginal changes in benefits and costs from an activity are the basis for most choices, such changes tend to attract the economist’s attention. Economists also use economic theories to recommend policies to the government. TASKS 1. Explain why this statement would fall under the heading of positive economics: “The price of oranges will increase if the federal deficit is eliminated”. 2. Explain why this statement would fall under the heading of normative economics: “The price of oranges is too high.” Would an orange buyer view this statement differently than the orange grower would? Explain. 5

Review glossary Allocation. The process of distributing resources for the production of goods and services, and for distributing goods and services for consumer goods. Economics. A social science that studies the allocation of resources to the production of goods and services used to satisfy consumer’s unlimited wants and needs. As a social science economics studies the social relationship of individuals. But unlike other social sciences, economics consentrates its study on the economy. Economy. A system of production, distribution, and consumption of goods and services. Efficiency. The process of obtaining the highest level of consumer satisfaction from the available resources. Macroeconomics. The branch of economics that studies the entire economy. Macroeconomics examines such topics as the total amount of output in economy, the rate of inflation and the number of unemployed workers. Microeconomics. The branch of economics that studies parts of the economy. Microeconomics examines the individual consumers, business, and industries that make up the economy. Normative economics. A branch of economics that states the way the economy should operate. A normative statement is based on values and cannot be proved right or wrong. Positive economics. A branch of economics that tries to explain the way the economy actually operates. Positive economics is concerned with the process of testing hypotheses. A positive statement can be refuted by looking at the real world. Resources. The materials available to an economy for the production of goods and services. Scarecity.. The condition that exists when there is an insufficient quantity of resources to produce all of the goods and services desired by people.

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TEXT 2 Study carefully the meaning of the following phrases and word combinations to avoid any difficulty in understanding the following text. 1. …that involve everyone – …которые касаются каждого 2. economics is concerned with – экономика имеет дело с (занимается…) 3. by examining – путем изучения 4. …are regarded as uniform enough – …рассматриваются как достаточно однородные 5. …that called for a take-over of the state by the workers – …которая предусматривала, что рабочие возьмут на себя руководство государством 6. did bring about strong economic growth – действительно привело к экономическому росту 7. supply and demand – спрос и предложение 8. in a decentralized way – децентрализовано 9. to some extent – до некоторой степени The Subject Matter of Economics No one comes to economics as a traveller to an unknown land. Much of our everyday experience is related to economics. Studying economics is directly connected with very important things that involve everyone, such as unemployment, inflation, wages, poverty, taxes, banks, foreign currencies. Economics is the science that deals with the production, distribution and consumption of wealth and with the various related problems of labour, finance, taxation etc. Economics is concerned with the economy or economic system. The economic system determines how the nation's resources of land, labour, machinery and raw materials are allocated and used. The problem of allocating resources is a central theme of economics, because most resources are scarce. The allocation of scarce resources and the distribution of the product of those resources are a major part of the subject matter of economics. In Western economies many resources are allocated to whoever is willing and able to pay the most for them. The distribution is deter7

mined by the amounts of money paid as wages, rent and other forms of income. Economists use assumptions to build models, both for explanation and for prediction of economic events. They summarize conclusions on economic questions into economic principles. Western economists believe that all economic questions can be analysed by examining the decisions of individuals and the outcome of those decisions made by people as consumers or as managers of firms. The Marxist analysis of Western economies is based on the interrelations between social classes – workers and capitalists – whose interests and behaviour are regarded as uniform enough for a whole class to be seen as a single unit. The Communist system was based on an economic and social theory that called for a take-over of the state by the workers. Although Communist central planning did bring about strong economic growth in some countries – such as in the rapidly industrializing Soviet Union of the 1920s and 1930s – it often resulted in long-term inefficiency and economic stagnation. A country's economic system is its way of organizing economic activities, including the ways in which people come to specialize in particular tasks they do best. There is a variety of economic systems, which can be divided into three groups: a) Market or decentralized economic systems in which economic decisions are taken by individuals. Free-market economists examine markets using a fundamental method of economics: supply and demand analysis. b) Planned or centralized economic systems, in which economic decisions are taken by government planners. c) Mixed economic systems, in which many economic activities are organized in a decentralized way, but in which the government takes some of the most important economic decisions. In practice, every economic system is mixed to some extent. d) Economics is connected with such sciences as psychology, history, law, political science, accounting, engineering, mathematics and statistics.

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COMPREHENSION CHECK I. Are the following statements true or false? 1. Economics is concerned with everyday issues, such as unemployment, prices, wages etc. 2. Inflation has nothing to do with economics as a science, but it has a lot to do with my personal income. 3. The allocation of scarce resources is the only subject matter of economics. 4. Economists can explain economic events, but they are unable to predict them. 5. Karl Marx called for a "dictatorship of the proletariat", where the workers would replace the capitalist ruling class. 6. If some economic decisions are taken by the government, we have a centralized economy. II. Fill in the correct words from text 2. Economics is __________with the production, distribution and consumption of wealth. It also deals with different_____questions, especially _______ with labour, finance, taxation etc. All of us get ___________ in economic problems. Economists cannot __________ separately the behaviour of every individual in a large population instead, they make _____ and ____economic models. On the basis of these models they ________ economic events. Economists _________economic systems into ____ Western _________ are _____ mostly ________ economic systems in which economic events are the outcome of _________ decisions. If government planners _______ some of the most important ________ decisions, the economy is __________. TOPIC 2. BUSINESS I. Discuss the following questions: l. When you see the word BUSINESS, what do you think about? Quickly write down words or ideas as they come into your mind. SELLER, CUSTOMER, MONEY________________________ Now discuss your notes with your classmates. 9

2. Write your own definition of business in the space provided below. Begin your definition in this way: BUSINESS IS_______________________________________ Compare your definition with the one written by the person next to you. Add to your definition if you find any new information. II. Below is the list of terms that you will find in the text. As you read "What is business?", see if you understand each term. Use this as a working list and add other terms that you do not know. NOUNS exchange production distribution sale goods profit conversion surplus expenses

VERBS examine classify perform remain create

ADJECTIVES technical various

OTHER for instance on the other hand

III. Read the text: What is Business? Business is a word that is commonly used in many different languages. But exactly what does it mean? The concepts and activities of business have increased in modern times. Traditionally, business simply meant exchange or trade for things people wanted or needed. Today it has a more technical definition. One definition of business is the production, distribution, and sale of goods and services for a profit. To examine this definition, we will look at its various parts. First, production's the creation of services or the changing of materials into products. One example is the conversion of iron ore into metal car parts. Next, these products need to be moved from the factory to the marketplace. This is known as distribution. A car might be moved from a factory in Detroit to a car dealership in Miami.

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Third is the sale of goods and services. Sale is the exchange of a product or service for money. A car is sold to someone in exchange for money. Goods are products that people either need or want; for example, cars can be classified as goods. Services, on the other hand, are activities that a person or group performs for another person or organization. For example, an auto-mechanic performs a service when repairing a car. A doctor also performs a service by taking care of people when they are sick. So, business is a combination of all these activities: production, distribution, and sale. Still, there's another important factor. This factor is the creation of profit or economic surplus. A major goal in the functioning of an American business company is making a profit. Profit is the money that remains after all the expenses are paid. Creating an economic surplus or profit is, therefore, a primary goal of business activity. IV. COMPREHENSION CHECK

V. CLASSIFICATION Classification means the grouping of items to show the relationship between them. Items that are classified together have something in common; i.e., something must apply to all the items in that group or class. Look at the items below. They may be classified as either goods or services. Review the definitions and examples given in the reading. Classify the following items as either goods or services. 1. car 2. law book 3. travel agency 4. briefcase 5. auto repair 6. computer 7. medical diagnosis

8. VCR 9. accounting ledger 10. calculator 11. job placement 12. suit 13. financial planning 14. forklift

Answer the following questions about the meaning of business. Questions with asterisk (*) cannot be answered directly from the text. 1. What is one modern definition of business? 2. *How does this modern meaning of business differ from the traditional one? 3. *What factors have brought about these changes? 4. What does production involve? 5. What example of distribution is given in the reading? 6. *Can you think of another example? 7. How do goods differ from services? 8. In addition to production, distribution, and sale, what other factor is important in defining business? 9. What is profit? 10. *In general, what do companies do with their profit? 11. Compare your definition of business with the one given in the reading. 12. *How are they similar? 13. In what ways does your definition differ from the one presented in the text? 11

15. newspaper delivery 16. management consulting 17. computer programming 18. time clock 19. office equipment repair 20. income tax preparation

VI. TEXT ANALYSIS A. Writers sometimes ask questions to focus and intensify the reader's interest. When the reader comes to one of these questions, he or she generally pauses and considers the question before going on. An answer is not expected. This type of question is known as a "rhetorical question". Find them in the reading. B. Give definitions for the following business fields by matching a field on the left with a definition on the right. Use the definition form. Term to be difined ------is--------definition a. Management the handling of large amounts of information generated by business operations b. Marketing the measurement and communication of financial information c. Accounting the acquisition and utilization of capital to start up, operate, and expand a company 12

d. Finance e. Data Processing

the series of activities guiding a company in order to accomplish its objectives the movement of goods and services from manufacturer to customer to satisfy the customer and to achieve the company's objectives TOPIC 3. MONEY

Make up ‘ONE CAN’ A Earn money Spend money Save money Make money Loan money Borrow money Lend money Owe money Accumulate Donate money Raise money Pay money Invest money Waste money Charge money

sentences combining A and B. Start with the phrase B that is to get money as salary or wages when one buys something as a customer when one wants to buy something expensive, or one lives economically. and then he grows rich, acquires wealth that is to give money at an interest (in a bank) that is to take money with a promise to pay back in future that is to give it to somebody for a period of time that is to borrow money when one becomes a debtor, and owes it to the lender that is to store up a large amount of money that is to give it to a good cause i.e. to collect it in somebody’s favour i.e. to give it to someone in exchange for services or goods i.e. to put money into shares\ business in something i.e. to spend it on something which is not worth it for goods and services 13

Answer the questions: 1. What do you do with money more often? Regularly? Never? 2. What would you like to do with money if you had more than the barest minimum? Much of it. 3. What do you think is the wisest way to deal with money? TEXT 1 Money can be anything that is generally accepted in payment for goods or services. Almost every society now has a money economy based on coins and paper notes of one kind or another. However, this has not always been true. In primitive societies a system of barter was used. Barter was a system of direct exchange of one good or service for another. Somebody could exchange a sheep, for example, for anything in the market-place if they considered to be of equal value. Barter, however, was a very unsatisfactory system because people's precise needs seldom coincided. People needed a more practical system of exchange, and various money systems developed based on goods which the members of a society recognized as having value. Cattle, grain, teeth, shells, feathers, skulls, salt, elephant tusks and tobacco have all been used. Precious metals gradually took over because, when made into coins, they were portable, durable, recognizable and divisible into larger and smaller units of value. A coin is a piece of metal, usually disc-shaped, which bears lettering, designs or numbers showing its value. Until the eighteenth and nineteenth centuries coins were given monetary worth based on the exact amount of metal contained in them, but most modern coins are based on face value, the value that governments choose to give, irrespective of the actual metal content. Coins have been made of gold (Au), copper (Cu), aluminium (Al), nickel (Ni), lead (Pb), plastic, and in China even from pressed tea leaves. Nowadays however valuable metal has generally been replaced by paper notes. The use of paper money in Western civilization began in the Middle Ages. The major forms of money in those days, gold and silver coins, were inconvenient to carry and liable to be stolen. To make business transactions safer and more convenient, people began depositing their coins with local goldsmiths, who gave them 14

a written receipt in exchange for the coins. In this way, the goldsmith became a kind of medieval banker. Merchants accepted the receipts in payment for goods because they could redeem the receipts for gold at the goldsmith's shop. In time, the goldsmiths' receipts became very popular with merchants and travelers who had to move large sums of money. As their use spread, the earliest form of paper money in Western Europe came into being. Now most governments issue paper money in the form of notes, which are really 'promises to pay'. It may or may not be backed by gold or silver. Paper money is obviously easier to handle and much more convenient in the modern world. Cheques, bankers' card, and credit card are being used increasingly and it is possible to imagine a world where 'money' in the form of coins and paper currency will no longer be used. Although anything can serve as money, it should possess the following qualities: ● Portability. Modern money has to be small enough and light enough for people to carry. ● Durability. The material chosen has to have a reasonable life expectancy. For that reason most countries use a very high quality paper for their money. ● Divisibility. One of the principal advantages of money over barter is its ability to be divided into parts. ● Recognizability. Money should be easily recognized for what it is and hard to copy. The quality of the paper and the engravings make paper money extremely difficult to counterfeit. TASKS I. Find expressions which mean: 1. A place to buy petrol. 2. A place where goods are bought and sold. 3. The period between 1801 and 1900. 4. The bony structure of the head. 5. Round and flat in shape. 6. An exchange of goods for other goods.

II. Find words which mean: 1. Can be divided. 2. Lasts a long lime. 3. Can be carried. 4. Can be recognized. III. Put these words in the correct place in the sentences below: coins/cash/currency/money 1. The ... of Japan is the yen. 2. She has got a lot of ... in her bank account. 3. It costs £10 if you're paying ...: It'll be more if you pay by cheque. 4. Can you change this pound note into ... for the coffee machine?* TEXT 2 Money and its Functions Money provides us with a medium of exchange, a measure of value, and a store of value. A Medium of Exchange. It is the very greatest use. The principal difference between a barter economy and a money economy is that in a barter economy you must find someone who has what you want and wants what you have. In a money economy people can buy or sell goods in exchange for money. Workers exchange labour services for money. Money is the medium through which people exchange goods and services. A Measure of Value. Money enables us to state the price of something in terms that everyone can understand. We can say the eggs we have for sale are worth 85 cents a dozen. This is a far simpler than having to figure out how much milk or meat we would expect in payment for a dozen eggs. Store of Value. Money is a store of value because it can be used to make purchases in the future. For example, our egg seller could put

*

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For more exercises see File 1.

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the money from the day's sale toward a college education sometime in the future. Money takes up very little space, and if you put it in a bank, it is as safe as anything in this world can be. But modern money has some very serious disadvantages as means of storing up value. In the old days, when money was in the form of gold and silver coins, the metal in each was really worth the amount stamped on the coin. But the paper in modern paper money and even the metal in most modern coins are worth very much less than the amount written on them. As a result, the buying power of modern money can change very greatly in a short time. Money also serves as a unit of account. It is the unit in which prices are quoted and accounts are kept. In Britain prices are quoted in pounds sterling, in France in francs. It is usually convenient to use the units in which the medium of exchange is measured as the unit of account as well. However there are exceptions. During the rapid German inflation of 1922–23 when prices in marks were changing very quickly, German shopkeepers found it more convenient to use dollars as the unit of account. Prices were quoted in dollars eventhough payment was made in marks, the German medium of exchange. There are different kinds of money. In prisoner-of-war camps, cigarettes served as money. In the nineteenth century money was mainly gold and silver coins. These are examples of commodity money, ordinary goods with industrial uses (gold) and consumption uses (cigarettes) which also serve as a medium of exchange. A token money is a means of payment whose value or purchasing power as money greatly exceeds its cost of production or value in uses other than as money. A $10 note is worth far more as money than as a 3x6 inch piece of high-quality paper. The essential condition for the survival of token money is the restriction of the right to supply it. Private production is illegal. Society enforces the use of token money by making it legal tender. The law says it must be accepted as a means of payment. In modern economies, token money is supplemented by IOU money. An IOU money is a medium of exchange based on the debt of a private firm or individual. A bank deposit is IOU money because it is

a debt of the bank. When you have a bank deposit the bank owes you money. Bank deposits are a medium of exchange because they are generally accepted as payment. (From Applied Economy, Economics, Streamline III)

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Answer the questions (Texts 1 and 2): What is money? How are goods exchanged in a barter economy? Why was the barter an unsatisfactory system? What is a coin? What is the history of paper money in Western civilization? Why can we say the goldsmith became a kind of medieval banker? Why did merchants accept the receipts of goldsmiths in payment for goods? Can you imagine a world without money in the form of coins and paper currency? Why? What qualities should money possess? What are the functions (uses) of money? Does modern money have any serious disadvantages as means of storing up value? What else can be used instead of money as a store of value? What is the unit of account in our country? When did Germany not use its own currency? What is ‘commodity money’? Explain in your own words what ‘token money’ means? What is IOU money? TEXT 3 Dealing with Foreign Currency and Money Abroad A. Work in pairs. Read the article below which advises British people on what sort of money to take with them when travelling abroad. Answer these questions: 1. How many different methods are mentioned? Which? 2. Which method is recommended most highly?

On the Money-go-round Money – usually the lack of it – is a universal problem for travellers. Whatever the amount they take there is a variety of ways to carry it. Since each has both advantages and disadvantages, a combination of two or three is advisable, the mixture depending on financial circumstances as well as destination. Traveller’s cheques: will be replaced if lost or stolen, theoretically within 24 hours. You pay 1 to 15 percent of the value of the cheques (and may be a fixed handling fee if you are buying in any of the 20 plus foreign currencies) but usually get a better rate when cashing them. In any of the America be sure to carry dollar cheques. Foreign currency: carry a small amount (for taxis, porters, telephone calls, snacks) until you can get to a bank. Most UK banks need advance notice of your requirements, otherwise change sterling at the airport or port (though exchange rates are less favourable). The commission and rate of exchange do very but hopping around is rather impractical. Some countries (in particular Greece) restrict the amount of their currency that you can import. You should also carry some sterling for necessary expenses when you return. Postcheques: Each cheque, when accompanied by a Postcheque Card (included free with your first order of cheques) can now be used to draw up to £100 in local currency from 90,000 post offices in most of Europe and around the Mediterranean as well as Home King, the Bahamas and Japan. Credit cards: Access (linked to MasterCard in the US and Eurocard in Europe) and Barclaycard (linked to Visa) are accepted in nearly 5 million outlets each though they vary in their acceptability – Barclaycard, for example, is stronger in France, Spain and Italy, whereas Access is most useful in Germany and the US. Their acceptance in Continental petrol stations, top is not always certain. They may also be used for cash advances and instead of a deposit on car hire. Charge cards: American Express and Diners Club are less widely accepted than credit cards and the interest-free settlement period is shorter but then is no pre-set spending limit. In addition to the

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initial starting and annual fee for the cards, both charge a one percent processing charge for bills convicted back into sterling. Eurocheques can be used to withdraw local currency as well as pay for hotels, restaurants, garages and other services in nearly 5 million, mostly European, outlets. The cheques, made out to the exact amount you requires are then debited to your account in the same way as a domestic cheque. Individual cheques can be cashed for up to a maximum of £100 or the equivalent in local currency. There is no limit to the number of cheques you can use to male a purchase. You pay around £3.50 for the card and there is also a commission of 1.25 percent on the value of the transaction, plus roughly a 30 pence handling fee per cheque. (David Wickers) B. Now read the article once more and answer the following more detailed questions: 3. What happens if you lose your travellers cheques? 4. Where should the British traveller exchange sterling into foreign currency? 5. Why is the British traveller advised to carry sterling? 6. Where can you use Postcheques? 7. What are the advantages of credit card? 8. What disadvantages do charge card have? 9. How do you pay for Eurocheques? 10. What is the limit of a Eurocheque? TAXES Read Text 1 and answer the questions: − What do Americans often say? − What do they think about their taxation? − How many types of taxes are there in the US? − Federal taxes: who must pay them; percentage. − State taxes: an income tax, a sales tax. − City taxes: two forms.

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TEXT 1 Americans often say that there are only two things a person can be sure of in life: death and taxes. Americans do not have a corner on the “death” market, but many people feel that the USA leads the world with the worst taxes. Taxes consist of the money which people pay to support their government. There are generally three levels of government in the US – federal, state, city. Therefore there are three types of taxes. Salaried people who earn more than four to five thousand dollars per year must pay a certain percentage of their salaries to the federal government. The percentage varies for individuals. It depends on their salaries. The federal government has two – level income tax that is 15 % and 28 %. $17,850 is the cutoff the tax rate is 15 % below $17,850 and 28 % above. With the high cost of taxes, people are not very happy on April 15, when the federal taxes are due. The second tax is for the state government of New York, California or any other 47 states. Some states have an income tax similar to that of the federal government, of course the percentage for the state is lower. Other states have a sales tax, which is a percentage charged to any item which you buy in that state. For example, a person might want to buy a package of gum for 25 cents if there is a sales tax of eight % in that state. Then the cost of the gum is 27 cents. This figure includes the sales tax. Some states use income tax in addition to sales tax to raise their revenues. The state tax laws are diverse and confusing. The third tax is for the city, this tax comes in two forms: property tax (residents who own a home have to pay taxes on it) and excise tax, which is levied on vehicles in a city. The cities utilize these funds for education, police and fire departments, public works (including street repairs, water and sanitation) and municipal building. Since Americans pay such high taxes, they often feel that they are working one day each week just to pay their taxes. People always complain about taxes. They often protest that the government misuses their tax dollars. They say that it spends too much on useless and unpractical programs. Although Americans have conflicting views on many issues- religions, racial, cultural, political – they tend to agree on subject: taxes are too high.

TEXT 2 1. Everyone knows that taxation is necessary in a modern state. By means of taxation we pay for things that we need. Taxes consist of money which people pay to support their government. But though everyone knows that taxation is necessary different people have various ideas about how taxes should be arranged. Should each person have to pay a certain amount of money to the government each year? Or should there be a tax on things that people buy and sell? If the first kind of taxation is used, should everyone pay the same, whether he is rich or poor? If the second kind of taxation is preferred, should everything be taxed equally? 2. Taxes can be divided into direct taxes such as income tax, property tax, tax on natural resources; and indirect taxes (value-added tax, custom or ‘duty’, tax on investments and others.) In most of countries income tax is arranged in such way that poorest people pay nothing and the percentage of tax grows greater as the tax payer’s income grows. But countries with direct taxation nearly always have indirect taxation too. Many things imported into the country have to be taxed. Of course, it is the men and women who buy these imported things in the shops who really have to pay the duties in the form of higher prices. In some countries there is a tax on things sold in the shop. If the most necessary things are taxed, a lot of money is collected, but the poor people suffer most. If unnecessary things like jewels and fur coats are taxed, less money is obtained, but the taxes are fair as the rich pay them. Probably this last kind of indirect tax on unnecessary things together with a direct tax on incomes which is low for the poor and high for the rich is the best arrangement. Russia has both direct and indirect taxation too. 3. The Russian modern tax system law was enacted on the 27th of December in 1991. According to it there are three levels of taxes in Russia. There are republican taxes, federal taxes and local taxes. Federal taxes include a value-added tax, tax on investment. Federal taxes are chartered by Parliament of RF. To Republican taxes we refer the same taxes of the subjects of RF and also tax on natural resource, forest tax, tax on property of enterprises. Local taxes are not compulsory for the whole territory of Russia. The local taxes are real estate tax, ad tax, wholesaling tax and others. The local taxes are chartered by local

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government organs. The modern taxation provides for tax privileges, for example, tax exemptions, untaxable minimum, tax rate reduction and others. It is declared to have to promote manufacturing and residential building, development of small business, pensioners’ employment and charities. Taxes have 2 functions: distributive and control. Thanks to them formation and supervision of government financial resources are provided. Besides, owing to control function tax mechanism efficiency is estimated. Since 1992 many changes have been brought into the tax law. But, however, the fairness has been broken more than once (for instance, amendments enacted and others). I can say that our tax system is rather diverse and confusing. Answer the following questions: 1. Why do we have to pay taxes? ● What questions are generally there in arranging taxation? 2. Direct and indirect taxes. ● What is the best arrangement of taxation? 3. The modern tax system in Russia: ● levels of taxes, privileges, functions, changes. 4. What else do you know about the Russian taxation and changes having been brought in since 1992? What is your attitude towards them? 5. If I could arrange taxation, I’d… 6. If you could avoid paying taxes, would you take advantage of it? (To say honestly…) Inflation and the Transition to a Market Economy One of the most intractable problem confronting societies in transition from centralized to free market economies is that of inflation. It is, however, a challenge that such societies must meet if they are to enjoy the material benefits that a market economy can provide. What exactly is inflation? It is an increase in the average price level of the goods and services produced and sold in an economy. Inflation typically occurs in a market economy for one of two reasons: either people increase their spending faster than producers are able to increase the supply of the goods and services; or there is a decrease in 23

the supply of goods and services to consumers and/or producers, which drives up prices. Inflation has sometimes been described as an increasing amount of money chasing a shrinking number of goods. Inflation hits economies in transition hard because price liberalization – the removal of government control of prices – is an essential step toward a market economy. The initial result of such price liberalization is predictable – a wave of price increases for goods that were in chronic short supply. Why? Because the government held their prices artificially low, or because of other economic distortions and inefficiencies created by government decision-makers. In addition, if people are holding large amounts of money at the time of this transition (since there was little of value to buy), the pressure of inflation can be even greater. Nevertheless the rewards of enduring the inevitable bout of inflation during this transitional period are substantial. Unfettered by government, the market mechanism of supply and demand can begin function. High prices signal strong demand and the market albeit slowly and haltingly at first, responds with increased production. Peoples' money may have lost value, but what money they have is now real and consumers can buy the goods that are beginning to appear in stores. With supplies increasing, prices stabilize and queues begin to disappear as consumers realize that more and varied products will continue to be available for sale. Entrepreneurs and investors respond to the new economic freedom by starting new businesses and competing to provide goods and services, thereby creating jobs, expanding supply and causing prices to moderate further. The key element in this transition is for the government to relinquish its role in setting prices and permit the market forces of supply and demand to establish prices for virtually all goods and services. When such a free market is established, inflation may persist, but it is a far more manageable and less threatening problem than in the early, hard days of economic transition. Questions: 1. What exactly is inflation? 2. What is an important step towards a market economy? 3. What are disadvantages and advantages of inflation? 4. How do entrepreneurs respond to the new economic freedom? 24

TOPIC 4. RECRUITMENT TEXT Job-Hunting Tips by Debra M. Hall Hunting for a job can be tricky. However, the hunt can be rewarding, for it can lead to wonderful career opportunities. Through telephone calls, correspondence, interviews, and other contacts, the job hunter will (1) meet people, (2) share information, (3) get glimpses of various companies, and (4) enhance interpersonal techniques and skills that can be used in a new position. Whether you are searching for your first job or want to change careers, you will need to know what kind of job you want and what kind of skills, qualifications, and experiences you possess. A job hunter should be realistic. Being aware of what you have to offer will help you to convey your best in the most effective way. You can find the job you want by thoroughly preparing yourself for the hunt. With the goal of a job in mind you should first prepare a resume, listing accurate information about your education, past work experience, affiliations, and so on. In fact, you may need to do several versions of your resume, customizing it for each job description. A resume that is too general may undermine your possibilities of being hired. For example, if you want to apply for a teaching position at a community college and for an editorial job at a publishing house, a different resume would probably be needed for each. What would be emphasized for one would not necessary be important for the other. Once you have created a resume, you are ready to begin serious job-hunting. You need to know the kinds of jobs you want or think that you are qualified for so that you can target specific companies or individuals to contact. You should pursue “help wanted” ads in newspapers, the job announcement sections of newsletters campus placement offices, and employment agencies. To further broaden your search, you should let your family, friends, and acquaintances know that you are seeking employment. In short, leave no stone unturned. Remember that only 10 percent of all job vacancies appear in print.

You should also attend job fairs, often held in major cities or on college campuses. This information can be obtained from local or college newspapers or employment offices. Recruiters from various fields interview prospective employees or accept resumes and/or give out employment applications. Some employers do presentations for interested employees. In this event, you should make every effort to attend. These sessions give job hunters the chance to ask recruiters questions and get firsthand information. Once you know of some organizations you are interested in working for, you will need to gather information about those organizations. This research is important because it will give you insights into the company, and your potential employer will be able to see that you are prepared for the interview. This show of interest could help in getting you the job. However, if you don’t get the first job you apply for, don’t be discouraged. In fact, “the average job hunt lasts between 6 and 18 weeks…don’t count on the ‘6 weeks’ minimum. Be prepared * for the 18 weeks or longer.” If you are seeking employment out of town or abroad, you may need to make some long-distance calls and/or write to the personnel directors of the organizations you are interested in for information. If you phone, be prepared to answer questions. Sometimes employers will give you a brief preliminary telephone interview to see if you meet the minimum qualifications for them to forward you their application. You ought to write a cover letter to accompany your resume and/or application. This should be a one-page formal business letter in which you introduce yourself, state your reason for writing, briefly summarize your qualifications, and request an interview. Once you are granted an interview, you should make every effort to arrive well-prepared. Before the interview, go over your experiences to align your skills to the position’s description and requirements. This will allow you to appear sure of yourself. Also, prepare questions to ask during the interview. You might inquire about the specific job responsibilities, ask about the possibilities for advancement or promotion, and find out about the special benefits the company offers. Avoid going into * Bolles, Richard. What Color is your Parachute? San Francisco: Ten Speed Press, 1990. P. 46.

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too many details about the salary at this time. In short, ask questions that will allow you to decide if the job is right for you. Above all, dress appropriately. This tells the employer you are a professional. In other words, if you are interviewing for a conservative, multinational company, you should not wear casual clothes like jeans and sneakers; get dressed up! Then, during the interview, sit up straight, speak clearly, be attentive, look the interviewer in the eye, smile when appropriate, and try to relax. If you become nervous, take long, deep breaths and remember you have a valuable commodity to sell – yourself. Remember not to say negative things about yourself or your former employers. You should be friendly and act like you really want the job. Many employers ask prospective employees to complete a job application and or take an exam before the interview, so be sure to arrive about 20 minutes before the scheduled appointment. To be prepared, bring along extra copies of your resume, samples of your work, recommendation letters, and other supporting documents that will strengthen your application. You will certainly make a good impression by anticipating your employer’s needs. After the interview, send a follow-up letter to the person(s) who interviewed you. In this one-page letter, you should thank the person for the interview, briefly summarize how your skills match the requirements, reiterate you interest in obtaining the position. If you don’t hear from the prospective employer within a specified period of time about one week, depending on the situation, it is okay to phone and ask about the status of your application. At this time, you can find out when the company plans to fill the position and you can use this opportunity to remind the interviewer that you are still interested in the job. Finally, job hunting can be hard work. Remember, you know your skills, abilities and general worth. Don’t grow impatient or let rejection undermine your determination to get the job that best suits you. In time, you will get what you deserve.

2. What advice do you think you will take? Ignore? 3. What does a resume consist of? 4. How should you prepare for an interview? 5. Do you feel it is right to ask an applicant to dress differently from the way he or she normally dresses? 6. What parts of the job hunting process do you feel most secure about? Least secure about? What strategies can you use to gain more confidence? II. Some of the FACTORS people consider when choosing jobs are listed below. Discuss each FACTOR with your partner. Add to the list as you think of other FACTORS. Then work alone to rank the FACTORS according to their importance to you in choosing a job. Write the most important FACTOR at the top of your list and the least important at the bottom. When you have finished, compare the results with your partner and other members of the class. MOST IMPORTANT Personal Satisfaction Opportunities for Advancement Salary Good Hours, Vacations, etc. Geographical Location Type of Work Performed Variety of Tasks LEAST IMPORTANT III. APPLYING FOR A JOB

I. Discussion. 1. What steps should you follow to find a good job (according to the text)?

Write 6 full-sentence answers to each of the questions: 1. What is your primary aim when you apply for a job/ put in a request for employment/ make a request for a job? 2. In what cases sending a letter of application is preferable? 3. What kind of information do you have to gather before writing a letter of application? 4. In what way should you express your interest in a specific job?

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5. How do you usually learn about job vacancies? 6. When you introduce yourself to a prospective employer, what information matters most/is the most important? Compare your answers with the ones given in File 2. Did you miss anything important? TOPIC 5. TYPES OF BUSINESS TEXT 1 There are various ways of defining small and medium businesses, but according to the US Small Business Administration (SBA), if a small business is defined as one employing fewer than 500 persons, then there are roughly as many people employed in small businesses in the United States as there are in large ones. (If small business is defined more narrowly, as employing fewer than 100 employees, about 36 percent of all workers are employed in small business.) Furthermore, small businesses (employing fewer than 500 employees) accounted for 60 percent of all new jobs created in the years between 1976 and 1988, according to the SBA. During the decade of the 1980s, there was a net growth of 7 million new businesses in the United States, about half of which were self-employed businesses. Self-employed businesses are famous for being able to respond almost instantly to changes in demand. There are some economic contributions of small business. They are: a small business is often the starting point for developing a new product or service. One person tries out an idea. If it is successful, the business grows, or the product may be bought by a larger firm. The small business can give an individual a chance to gain experience, which the person may use later on a larger scale. Small business are particularly well suited for meeting specialized local needs. Artisans can provide individualized products for customers who have grown weary of mass-produced goods. Small businesses provide a service where knowing one’s customers is important. Give the definition of small business. What advantages of small business can you think of? 29

TEXT 2 The different types of business organisation to be found in the UK and most other capitalist countries may be classified under five headings: the sole proprietor, the partnership, the joint stock company, the cooperative society, and the public corporation. Types of organization Sole trader

Legal form

Ownership

Little or no legal form

The proprietor

Partnership

Partnership 2–20 Act 1890, partners written agreement among partners

Private Limited Company (LTD)

Registered under Companies Act 1985

Shareholders 2 or more (no maximum)

Public Limited Company (PLC)

Registered under Companies Act 1985

Shareholders 2 or more (no maximum)

Nationalised Industry

Act of Parliament

State owned

Co-operative

Industrial and Provident Societies Acts

Owned by members, whether the customers or workers

Sources of finance Personal savings, bank loan Capital provided by partners

Issuing shares (restrictions on selling them), bank loan Issuing shares (can be freely sold), bank loan Governme nt assistance Shares, £1 each with an upper limit of £10 000

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Liability Unlimited Unlimited, although some partners can have limited liability Limited

Limited

Limited

Limited

Who runs the business The owner The partners

The board of directions. Although the day to day running is done by the directors. Directors are elected by shareholders Board of directors appointed by the government Management Committee elected by the members

Sole Trader Advantages 1. Only a relatively small amount of capital is needed to start up the business 2. The owner works for him or herself 3. Decisions can be taken quickly 4. Profits are not shared

Disadvantages 1. Unlimited liability – could lose everything 2. If the owner dies or is ill, hard to continue the business 3. Difficult to obtain extra capital for expansion 4. May lack ideas, as less people to ask

Partnership Advantages 1. More capital available 2. Each partner can specialise on a particular task 3. Range of ideas available 4. Partners can share any losses (and profits!) 5. Accounts need not be published

Disadvantages 1. Unlimited liability 2. Action of one partner binding on others 3. May be problem of continuity on the death of a partner or if disagreement among partners 4. Capital may still be difficult to raise

Private Limited Company Advantages 1. limited liability 2. Still more capital available as more owners (shareholders) 3. Company has its own legal identity so can continue beyond a death or disagreement 4. Accounts need only be published in brief form

Disadvantages 1. Less control for owners than in sole trader/ partnership 2. Capital less easy to raise than in public limited company as shares cannot be sold to general public

Public Limited Company Advantages 1. Limited liability 2. Easier to raise capital as shares can be sold to the general public 3. These firms can often grow very large, benefiting from economies of scale

Disadvantages 1. Large firms may suffer from diseconomies of scale 2. Easy transfer of shares makes takeover bids possible 3. Full accounts must be published 31

The sole proprietor This is the simplest and the oldest form of business enterprise and often referred to as the one-person business. A single person provides the capital, takes the decisions, and assumes the risks. He or she is solely responsible for the success or failure of the business and has, therefore, the sole rights to such profits as may be made, or, alternatively, bears the sole responsibility for such losses as may accrue. The strength of this type of firm lies in the direct personal interest of the proprietor in the efficiency of his enterprise. Ownership and control are vested in one person who enjoys all the fruits of success and hence has a great incentive to run the firm efficiency. The great disadvantage of the sole proprietor from an enterprise lies in the fact that the owner is personally liable for the debts incurred by his firm and his liability is unlimited. All his personal possessions are at risk and may be seized to meet creditors demands in the event of the business becoming insolvent. Another disadvantage of this type of firm is the strict limitation of its ability to acquire capital for expansion. Finance is restricted to the amounts which the entrepreneur is able to provide from his own resources and whatever sums he can borrow on his own security. We find the one-person business prevalent in farming, retailing, building, repair and maintenance work, and personal services such as hairdressing. Partnerships Partnerships are voluntary combinations of from 2 to 20 persons formed for the purpose of carrying on business with a view of profit. A person who joins a partnership, supplying capital and sharing in the profits, but taking no part in the management is known as a dormant or sleeping partner. Partnerships are a common form of business organisation in such professions as law, accountancy, surveying, and medicine. The advantages of this type of firm are similar to those of the one-person business; it is a flexible organisation which allows a greater degree of specialisation than the one-person business. Partners usually specialize in one or more aspects of the business; one may be responsible for buying, one for selling, one for production, and so on. 32

The great disadvantage, like that of the one-person business, is the fact that the liability of the partners is unlimited and they are all fully liable for the acts of the other partners. The survival of a partnerships depends upon the continued harmonious relationships between a number of people in situations which often give much cause for disagreement. Thus, where trading risks are very great, the partnerships is not a very stable type of organisation. Joint stock company The most important form of business in the UK is the joint stock company. Basically, it consists of an association of people who contribute towards a joint stock of capital for the purpose of carrying on business with a view to profit. A company may be defined as a legal person created to engage in business, capable of owning productive assets, of entering into contracts and of employing labour in the same way as an individual. There are two kinds of joint stock company, the private company and the public company. The public company are much larger units and account for about two-thirds of all the capital employed by companies. In general, private companies are small firms, often consisting of the members of one family. Both public and private companies must have at least 2 members. A public company must have a minimum allotted share capital of 50 000 pounds (sterling) of which at least one-quarter has been paid up. A private company must include the word “limited” in its name a while public company must have the words “public limited company” at the end of its name although this can be abbreviated to plc. The basic distinction between a private and a public company is that a public company can offer its shares and debentures for sale to the general public. TASKS I. a) form nouns from the following verbs: organize, classify, decide, assume, lose, employ, compare, direct, control, consult, change, require, expect, adjust, possess, expand, restrict, provide;

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b) form opposite words using prefixes needed: advantage, limited, able, employment, important, compared, personal, capable. II. Complete the sentences using the words given: possessions, adjustment, proprietor, failure, headings, enterprise, efficiency, ownership, conditions, flexible, failure, liability, debts, decisions, responsible. 1. The different types of business organisation may be classified under five … . 2. This is the simplest and the oldest form of business … . 3. A single person is solely…for the success or … of the business. 4. His … is unlimited. 5. … and control are vested in one person. 6. This type of organisation is extremely … and capable of quick … to change in market … . 7. The owner is personally liable for the … incurred by his firm. 8. All his … are at risk. 9. A single person provides the capital, takes the …, and assumes the risks. III. Complete the sentences using the proper forms of the verbs in the brackets: 1. The different types of business organization … (to find) in the UK may … (to classify) under five headings. 2. He … (to have) the sole rights to such profits as may … (to accrue) or, alternatively, … (to bear) the sole responsibility for such losses. 3. The one-person business … (to be) still far more numerous than any other type of business organisation. 4. Ownership and control … (to vest) in one person who … (to enjoy) all the fruits of success. 5. He … (to have) no need … (to consult) collegues when changes of policy … (to require). 6. We should … (to expect) this type of organisation … (to be) extremely flexible. 34

7. All his personal possession may … (to meet) creditors demand. 8. Finance … (to restrict) to the amounts which the entrepreneur is able … (to provide) from his own resources and whatever sums he can … (to borrow) on his own security.* IV. Answer the questions: 1. What are the types of business organisation to be found in the UK? 2. What is the simplest and oldest form of business enterprise? 3. What is the strength of the one-person business? 4. What are the disadvantages of this form of business organisation? 5. Why is the one-person business less important compared with the joint stock company? 6. Where is the one-person business prevalent? TOPIC 6. FRANCHISING TEXT 1 According to new numbers from the International Franchise Association (IFA), franchising spans 1,500 concepts – franchise types – in 75 industries, and its 316,000 U.S. units reap $1 trillion in annual sales. Franchising started during the Civil War, when the Singer Sewing Machine Co. figured out a way to grow its retail operation without spending its own capital. Singer sold 'franchises' to local operators who then built and maintained their own stores while selling the manufacturer's products. In the early 1900s car manufacturers adopted the same system and sold franchised dealerships all over the country. They were followed by the oil companies, who franchised gas stations to fuel the cars. In 1924, two entrepreneurs named Allen and White gave all those new drivers a destination -- a franchised chain of A&W Root Beer drive-in restaurants.

*

For more exercises see File 3.

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Fast-food franchising became the rage and outfits like McDonald's, Kentucky Fried Chicken, Dairy Queen and Hardee's grew quickly. The service sector of franchising accounts for 15 percent of all franchises in the United States. That includes maid services, lawn care franchises, home security concepts, handyman services and others. The majority of franchises in the service category are small businesses with fewer than 50 total units. Most require less than $50,000 initial investment. Franchises are a big deal in the USA. Today, there are between 2,000 and 2,500 operating franchise systems and more than a half million franchise outlets nationwide. One out of 16 workers is employed at one. Franchise owners typically buy from their chains the right to sell products under a certain retail name in a certain retail area. The theory is that the name and products and marketing, all coming from a single, proven source will pave the way for local commercial success. Running a franchise isn't like having a traditional job where you're in charge of one function. At first, franchisees must do everything – from ordering business cards to buying fax paper. Franchisees are a unique hybrid of both boss and employee: you're involved on a daily basis. You're the owner of the premises and you're responsible for all operations. You own and run your franchised outlet, but you must follow the system and dictates, detailed instruction of the franchiser who has presumably perfected the business. On an ongoing basis, you pay a percentage of sales for the franchiser's expertise, support, national advertising campaigns and established reputation. Depending on the franchise company and industry, monthly royalty fees will range between 3 % and 8 % of monthly sales. In the best cases, this is a guaranteed success. To be a good franchisee you must be a self-starter. Franchising is believed to be a great field for entrepreneurs but you must find a franchise system that will give you the right amount of freedom and the ability to put your own stamp on the business. With the demand for franchising so high today, it's tempting to sign an overseas contract and consider the $500,000 license fee as profit to your company. But with attorney's fees, translations, travel, trademark registrations and other expenses, you can run through that 36

money very quickly. If you want to franchise internationally, do it because you believe your products or services will make a difference there. Don't do it to fix your problems at home.

TEXT 2

I. Find in the text English equivalents for: охватывать, включать в себя различные виды; становиться повальным увлечением, помешательством; иметь большое значение; теоретически, прокладывать путь к; отвечать за; помещение; внести свой вклад в дело; расходы; промотать, истратить деньги; решить свои проблемы. II. Answer the questions: 1. How would you define Franchising? 2. Describe the way a franchise is operated. 3. What is the condition for successful cross-border franchising? III. Comment on the following statements: 1. Getting Started Opening a franchise is a major decision. These tips will help you determine if it's the right move for you: • Do thorough research. • Talk to other franchisees, including past and present owners. • Hire an attorney to review all documents. • Consider how much cash you can afford to invest in a new business. • Reflect on the type of business you can feel passionate about. 2. To be a good franchisee, you must be a self-starter. Corporate executives usually are systems-oriented and willing to follow the rules of the franchise organization, which makes them "ideal candidates". 3. The franchise company has to be flexible and have a strong reputation and well-developed operating systems. 4. Industry contacts are essential for potential franchise owners, but they aren't enough to make a venture work. 5. If you want to franchise internationally, do it because you believe your products or services will make a difference there. Don't do it to fix your problems at home. 6. Perhaps no force has influenced international franchising more than the Internet.

What is Franchising? When you hear the word 'franchise' you probably think of fast food restaurants like McDonald's, Burger King and Wendy's. But there are many more types of franchise businesses. One out of every three dollars spent by Americans for goods and services is spent in a franchised business. Homes are bought and sold through franchised real estate companies. These same homes can be cleaned, painted and carpeted through a franchised business. Cars can be purchased, tuned and washed through franchises. We can have our hair cut, clothes cleaned, pets cared for all in franchised businesses. We can travel from one area of the world to another through franchised businesses. Franchising is a method of doing business. It is a method of marketing a product and/or service, which has been adopted and used in a wide variety of industries and businesses. The word "franchise" literally means to be free. In this sense, franchising offers people the freedom to own, manage and direct their own business. However, as with any freedom, there are responsibilities. In franchising, these responsibilities have to do with the franchisee's commitments and obligations – usually spelled out in a franchise agreement or contract – to the franchiser. The franchiser is the one who owns the right to the name or trademark of the business. The franchisee is the one who purchases the right to use the trademark and system of business. There are two different types of franchise arrangements: product distribution arrangements in which the dealer is to some degree, but not entirely identified with the manufacturer/supplier; and business format franchises in which there is complete identification of the dealer with the buyer. Business format franchises offer the franchisee not only a trademark and logo, but a complete system of doing business. Indeed the word 'system' is the key concept to franchising. A franchisee receives assistance with site selection of the business, personnel training, business setup, advertising and product supply. For these services the franchisee pays an up-front fee and an on-going royalty, which enables the franchisor to provide training, research and development and support for the entire business. In a nutshell, the franchisee purchases someone else's expertise, experience and method of doing business.

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Assignments:

Advantages, Challenges of Franchising

Business Synergy

The Experience of the Franchiser

The word “synergy” refers to the idea that the sum of the whole is greater than the separate parts. The principle can be applied to franchising. Those who buy a franchise become part of a “family” where all members work together for the good of the whole. Often, some of the most effective ideas come from franchisees who in turn share their ideas with the corporate office and with other franchisees.

When an individual buys a franchise, he or she purchases the years of experience and the proven operating system of the franchiser. One franchisee expressed it this way, "What I have learned from the franchiser was worth ten times what I paid for the franchise." In any new business, much time and money are spent in trial and error, but a proven franchise may eliminate many of those start-up problems allowing one to open a franchise with little or no previous experience in a given industry. Training A good franchiser will provide training for new franchisees. This is usually done at the home office and at the franchisee's place of business. Training should prepare new owners for all facets of the business. In summary, franchising provides exceptional opportunities for many people. While buying a franchise is not an absolute guarantee of success, many of the pitfalls of individual ownership can be avoided. Buying and Advertising Most small-business owners cannot afford to buy inventory products in bulk or do extensive advertising. The franchisee buys this advantage when he or she buys the right to use the franchiser’s purchasing power and advertising – most franchisers provide advertising help and direction. Furthermore, as the number of franchisees increases, so does public awareness of the franchise. This can be a tremendous advertising advantage. Franchisees located near one another can also advertise together, reducing costs. Ongoing Advice, Research and Development Franchisees need help throughout the term of their business endeavors and franchiser’s staff can give this needed help in all aspects of the business. The franchiser can also provide ongoing research and development so that new products and services will be made available to franchisees. 39

Working within the System People who have difficulty following directions or who dislike working within a system will find franchising extremely frustrating. Conformity to the franchiser’s operations manual is critical if consistency among franchises is to be maintained. However, there are areas such as marketing where a franchisee can be creative. The Risk While it is true that purchasing a franchise has less risk than starting an independent business, there are still risks. Because the franchisee owns the business, he or she, to a great extent, determines the success of the venture. The franchiser may have a great programme and a respected name, but in the final analysis much of the risk is in the franchisee’s hands. Working with the Franchiser Buying a franchise can be closely compared to entering into a marriage. Both are legally binding relationships that last for a long time. The franchisee’s relationship with the franchiser will be extremely important. Franchisees should get to know the franchiser by visiting corporate headquarters, talking to other franchisees, and reading as much about the franchise as possible. False Expectations Some people buy a franchise expecting instant success, perhaps because they see how well other franchisees have done. But that accomplishment did not come without great effort. Franchising, like any other business, requires tremendous time, initiative and industry. Pro40

spective franchisees should ask the franchiser to be realistic when explaining what is required to operate the business.

TEXT 1 Most organizations have a hierarchical or pyramidal structure, with one person or a group of people at the top, and an increasing number of people below them at each successive level. There is a clear line or chain of command running down the pyramid. All the people in the organization know what decisions they are able to make, who their superior (or boss) is (to whom they report), and who their immediate subordinates are (to whom they can give instructions). Some people in an organization have colleagues who help them: for example, there might be an Assistant to the Marketing Manager. This is known as a staff position. Yet the activities of most companies are too complicated to be organized in a single hierarchy. Today, most large manufacturing organizations have a functional structure, including (among others) production, finance, marketing, sales, and personnel or staff departments. This means, for example, that the production and marketing depart-

ments cannot take financial decisions without consulting the finance department. Functional organization is efficient, but there are two standard criticisms. Firstly, people are usually more concerned with the success of their department than that of the company, so there are permanent battles between, for example, finance and marketing, or marketing and production, which have incompatible goals. Secondly, separating functions is unlikely to encourage innovation. Yet for a large organization manufacturing a range of products, having a single production department is generally inefficient. Consequently, most large companies are decentralized, following the model of Alfred Sloan, who divided General Motors into separate operating divisions in 1920. Each division had its own engineering, production and sales departments, made a different category of car (but with some overlap, to encourage internal competition), and was expected to make a profit. Businesses that cannot be divided into autonomous divisions with their own markets can simulate decentralization, setting up divisions that deal with each other using internally determined transfer prices. Many banks, for example, have established commercial, corporate, private banking, international and investment divisions. An inherent problem of hierarchies is that people at lower levels are unable to make important decisions, but have to pass on responsibility to their boss. One solution to this is matrix management, in which people report to more than one superior. For example, a product manager with an idea might be able to deal directly with managers responsible for a certain market segment and for a geographical region, as well as the managers responsible for the traditional functions of finance, sales and production. This is one way of keeping authority at lower levels, but it is not necessarily a very efficient one. Thomas Peters and Robert Waterman, in their well-known book In Search of Excellence, insist on the necessity of pushing authority and autonomy down the line, but they argue that one element – probably the product – must have priority; four-dimensional matrices are far too complex. A further possibility is to have wholly autonomous, temporary groups or teams that are responsible for an entire project, and are split up as soon as it is successfully completed. Teams are often not very

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Managing the Business Some individuals are more prepared to manage a business than others. They have some business experience and have learned to get along well with people. Others may find that managing a franchise is a burden. Prospective franchisees must honestly assess their ability to run a business. If they find they have little or no experience, they can seek special help from the franchiser in business management. Answer the questions: 1. Where can you come across the operation of franchising? 2. What does the word “franchise” mean (literally)? What do you understand under this meaning? 3. What are two types of franchise arrangements? 4. What are the roles of franchisee and franchiser? (Give as much information as possible). TOPIC 7. COMPANY STRUCTURE

good for decision-making, and they run the risk of relational problems, unless they are small and have a lot of self-discipline. In fact they still require a definite leader, on whom their success probably depends. COMPREHENSION CHECK Which of the following paragraphs most accurately summarizes the text, and why? First summary: Although most organizations are hierarchical, with a number of levels, and a line of command running from the top to the bottom, hierarchies should be avoided because they make decision-making slow and difficult. A solution to this problem is matrix management, which allows people from the traditional functional departments of production, finance, marketing, sales, etc. to work together in teams. Another solution is decentralization: the separation of the organization into competing autonomous divisions. Second summary: Most business organizations have a hierarchy consisting of several levels and a clear line of command. There may also be staff positions that are not integrated into the hierarchy. The organization might also be divided into functional departments, such as production, finance, marketing, sales and personnel. Larger organizations are often further divided into autonomous divisions, each with its own functional sections. More recent organizational systems include matrix management and teams, both of which combine people from different functions and keep decision-making at lower levels. TEXT 2 Read the text about the different ways in which companies are organized and answer these questions. 1. Four main kinds of organisational structure are described in the article. What are they? 2. Is one kind of organisational structure more common than the others? 3. When did 'delayering' take place? 43

4. What were the reasons for delayering and what were the results? 5. How does Julia MacLauchlan describe Microsoft's organisational structure? Doing the Business Roisin Ingle hears how efficient management structures are vital for success. The need for a solid structure within all business entities is 'absolutely fundamental', according to Ms Angela Tripoli, a lecturer in Business Administration at University College Dublin. 'Organisational structure concerns who reports to whom in the company and how different elements are grouped together. A new company cannot go forward without this and established companies must ensure their structure reflects their target markets, goals and available technology.' Depending on their size and needs there are several organisational structures companies can choose from. Increasingly though, in the constantly evolving business environment, 'many firms are opting for a kind of hybrid of all of them'. The most recognisable set up is called the functional structure where a fairly traditional chain of command (incorporating senior management, middle management and junior management) is put in place. The main benefit of this system is clear lines of communication from top to bottom but it is generally accepted that it can also be a bureaucratic set up which does not favour speedy decision-making. More and more companies are organising themselves along produсt lines where companies have separate divisions according to the product that is being worked on. 'In this case the focus is always on the product and how it can be improved.' The importance for multinational companies of a good geographic structure, said Ms Tripoli, could be seen when one electrical products manufacturer produced an innovative rice cooker which made perfect rice – according to western standards. When they tried to sell it on the Asian market the product flopped because there were no country managers informing them of the changes that would need to be made in order to satisfy this more demanding market. The matrix structure first evolved during a project developed by NASA when they needed to pool together different skills from a vari44

ety of functional areas. Essentially the matrix structure organises a business into project teams, led by project leaders, to carry out certain objectives. Training is vitally important here in order to avoid conflict between the various members of the teams. During the 1980s a wave of restructuring went through industry around the globe. This process, known as delayering, saw a change in the traditional hierarchical structures with layers of middle management being removed. This development was driven by new technology and by the need to reduce costs. The overall result was organisations that were less bureaucratic. The delayering process has run its course now. Among the trends that currently influence how a company organises itself is the move towards centralisation and outsourcing. Restructuring has evolved along with a more 'customercentric' approach that can be seen to good effect in the banks. They now categorise their customers and their complex borrowing needs into groups instead of along rigid product lines. Another development can be seen in larger companies, which are giving their employees more freedom-to innovate in order to maintain a competitive edge. Ms Julia MacLauchlan, Director of Microsoft's European Product Development Centre in Dublin, said the leading software company had a very flat organisational structure. ‘There would not be more than around seven levels between the average software tester and Bill Gates,’ she said. Microsoft is a good example of a company that is structured along product lines. In Ireland, where 1,000 employees work on localisation of the software for all Microsoft's markets, the company is split up into seven business units. Each unit controls the localisation of their specific products while working closely with the designers in Microsoft's Seattle Headquarters. It works, said Ms Maclauchlan, because everyone who works in the unit is ‘incredibly empowered’. ‘Without a huge bureaucratic infrastructure people can react a lot more quickly to any challenges and work towards the company's objectives.' (From The Irish Times) 45

TASKS I. Match these definitions with the four organisational structures described in the text: 1. A cross-functional structure where people are organised into project teams. 2. A structure rather like the army, where each person has their place in a fixed hierarchy. 3. A structure that enables a company to operate internationally, country by country. 4. A structure organised around different products. II. Match these nouns as they occur together in the text: A product target borrowing project delayerin country business software company

B teams objectives lines units company process markets needs managers

III. Use an appropriate phrase from Exercise II to complete the sentence: 1. Banks need to be fully aware of their customers’ __ borrowing needs____. 2. Silicon Valley is full of ___________ . 3. Many companies are now organised along ___________, in which each division is responsible for a group of products. 4. A matrix organisation groups people into ___________ . 5. Some companies are divided into different _____________, often also called profit centers. 6. A multinational company will often have a number of _____________, in charge of activities in different parts of the world. 46

IV. Discuss within the class. 1. The functional organizational structure has clear lines of communication. In contrast, where things are organized along product lines or with a matrix structure, people often report to two people at the same time – their boss in the functional structure and their manager or team leader in the other structure. What, if any, problems could you imagine in the second case? 2. Do you think people from certain cultures would favour one kind of organizational structure over another? Can you think of some examples and give some reasons. TOPIC 8. MANAGEMENT TEXT 1 Types of Management Structure

Fig. 2. Matrix management chart

The management structure of a business can be shown using an organisation chart. Figure 1 demonstrates the most widely used charts. Remember that pyramid, horizontal and concentric charts all indicate hierarchical structures. There are clear lines of authority in each of these charts. The only difference is in the emphasis each gives to the different levels of authority. The pyramid chart makes the hierarchy very clear, the horizontal chart less so, and the concentric chart least of all. If you want to play down differences in status and authority within the firm, you might well choose the horizontal or concentric charts.

The matrix management organisational chart in Fig. 2 is quite different. This shows both official and actual lines of accountability. For example suppose a major project is to develop a new chocolate bar. The head of the design department may have to report to the project manager for all aspects involving the chocolate bar, rather than to his or her formal superior, the head of engineering. The authority in this case is not hierarchical. Types of Leadership Another important issue on which questions are frequently set is the leadership style within the company. There are three main types of leadership: • the autocratic style, with little or no communication between leaders and the staff they are responsible for; • the democratic style, where every effort is made to foster a friendly, co-operative working relationship between management and staff; • the laissez-faire style, which leaves the workers to their own devices, with little attempt to exercise formal control.

Fig. 1. The pyramid, horizontal and concentric charts 47

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TEXT 2 Management Part 1. Managing a business Management is the art or practice of managing a business, money, products, and all the people employed by a company. In other words management is a set of activities directed at an organization's human, financial, physical, and information resources, with the aim of achieving organizational goals in an efficient and effective manner. In this case "efficient" means "using resources wisely and without unnecessary waste" while "effective" means "doing the right things". The chart functions of management. Planning and decision making Determining the organization's goals and deciding how best to achieve them, delegating responsibilities to subordinates. Controlling Monitoring and correcting ongoing activities, receiving reports from subordinates and helping subordinates handle exceptions. Organizing Determining how best to group activities and resources. Getting all employees to work together. Leading Motivating members of the organization to work in the best interests of the organization.

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Fig. 3

The golden rule of successful management can be summed up in the following words: "The system works well as long as we don't have any exceptions." Successful management is getting things done through "others", that is through the manager's immediate subordinates. The word "management" is also used to denote the people who are in charge of a company or an organization. Although large organizations typically have a number of levels of management, the most common view considers three basic levels: top, middle and first-line managers. Top managers (president, vice president, chief executive officer (CEO), managing director) make up the relatively small group of executives who control the organization. Middle managers (plant manager, operations manager, division head) make up the largest group of managers in most organizations. The company usually requires that a middle manager (should) implement the policies and plans developed by top management. 50

First-line managers (foreman, supervisor, office manager) typically spend a large portion of their time supervising the work of operating employees. Managers of different levels may work in various areas within a company. In any given firm, there may be marketing, operations, administrative, and other kinds of managers at all three levels. The diagram below indicates how managers within an organization can be differentiated by level and area.

These ways for getting the products to customers who will buy and use them are usually known as distribution channels (or channels of distribution): 1) direct distribution or selling, 2) catalog(ue) sales, 3) wholesaling, 4) selling through sales representatives (reps), 5) selling to retailers, 6) selling through computer systems. Marketing consists of the four Ps: providing the customer with the right PRODUCT at the right PRICE, presented in the most attractive way (PROMOTION) and available in the easiest way (PLACE). The four Ps are called "marketing mix". The key concept of marketing is PROMOTION. A marketing manager can choose from several promotion methods – personal selling, mass selling and sales promotion. The basic Promotion Methods and Strategy Planning are given in the chart below.

Fig. 4. Areas of management

Part 2. Product Management (marketing) No business firm can do without product management which is actually marketing and marketing management. The manager has to draw up his marketing plan before his business plan and product development. Marketing is concerned with foreseeing and expecting the needs of customers and directing the flow of goods and services from producers to customers. Marketing is much broader than selling, it includes a wide range of business activities. Marketing is the management function which organizes and directs the presentation and distribution of goods and services in the manner best designed to benefit the producer, the distributor, and the public. The marketing manager of a company is responsible for product management, i.e. for various ways products are sold to customers. 51

Fig. 5

Since 1960s, most firms have developed at least some staff with marketing management outlook. Nowadays it is always necessary that the whole company effort (should) be guided by the marketing concept. The marketing concept means that a company directs all its efforts at satisfying its customers – at a profit. Most firms are marketing-oriented, they focus on customers' interests in their planning. But there are firms which are still production52

oriented, they focus on production of a few specific products – perhaps few of these products are available on the market and competition is not intense. The marketing concept was first accepted by consumer products companies such as General Electric and Procter & Gamble. Competition was intense in some of their markets and trying to satisfy customers' needs more fully was a way to compete effectively with rival products. "Service" industries – including airlines, banks, investment firms, lawyers, physicians, accountants, and insurance companies – were slow to adopt the marketing concept. But this has changed dramatically in the last decade. Banks used to be open for limited hours that were convenient for bankers – not customers. Many closed during lunch hour. But now financial services are less regulated, and banks compete with companies like AMERICAN EXPRESS for checking accounts and retirement investments. The banks stay open longer, often during evenings and on Sundays. They also offer more services for their customers – automatic banking machines that take credit cards or a "personal banker" to give financial advice. Most banks now aggressively advertise their special services and even interest rates, so customers can compare bank offerings. _____________________________

1. (no business firm) can do without – ... не может обойтись без... 2. marketing management outlook – взгляд на управление с позиций маркетинга 3. retirement investments – пенсионные вклады 4. ... aggressively advertise ... – энергично и решительно рекламируют... Part 3. Marketing information systems (MIS) and marketing research Successful planning of marketing strategies requires that marketing managers (should) gather and analyze information they need to make decisions. In some companies a marketing information system (MIS) is set up by marketing specialists. To get better decisions some 53

MIS systems provide marketing managers with a decision support system (DSS). A DSS system is a computer program(me) that makes it easy for a marketing manager to get and use information as he is making a decision. Typically the DSS helps change raw data – like product sales for the previous day – into more useful information. For example, it may draw graphs on the computer monitor to show relationships in data – perhaps comparing yesterday's sales to the sales on the same day in the last four weeks. Marketing information systems will become more widespread as managers become more sensitive to the possibilities of these systems and computer costs continue to drop. Many marketing managers are usually isolated in company offices from potential customers. It is just not possible for managers to keep up with all the changes taking place in their markets. It is really important that they (should) rely on help from marketing research. In fact, continued improvements in research methods are making marketing research information more dependable. Most large companies have a separate marketing research department to plan and carry out research projects. Marketing research should be distinguished from market research. The latter deals with the pattern of a market, it means studying places or ways in which a company can sell a group of products of a similar kind, what customers and prospects need or want from a company and its products. Marketing research deals with problems involved in marketing a particular product. Marketing research is very often based on getting information by using surveys and interviews which are done by talking to respondents. Another way of getting information from customers and prospects is a questionnaire with questions written or printed on it. People have to fill in (fill out – AmE) questionnaires. When doing marketing research marketing specialists use computers to draw graphs called "supply and demand curves" showing the relation between the supply of a product (or a service) and its price on the one hand and the relation between the demand for a product (or a service) and its price on the other. These curves explain the very simple idea that when prices change, producers and consumers change 54

their behavio(u)r. The basic idea of supply and demand is the following: when prices go up, more goods, and services are supplied, but there is less demand from consumers. When prices go down, demand goes up but the supply is reduced. At a certain price level there will be an equilibrium of supply and demand. (From "Introduction to Economics" by John Craven) ____________________________

1. raw data – необработанные данные 2. to keep up with all the changes... – не отставать от любых изменений 3. to make ... more dependable = to make ... more reliable 4. the pattern of a market – структура рынка 5. problems involved in (marketing a particular product) = problems connected with (...) 6. to draw graphs – вычерчивать графики / кривые COMPREHENSION CHECK

II. Complete the following sentences joining the suitable part (the exercise is based on Part 3 of the text 2): 1. Various computer programmes help marketing managers… a) carry out marketing research, b) find potential customers, c) analyze information they need and make better decisions. 2. Marketing research is concerned with… a) the pattern of a market, b) marketing a particular product, c) comparing yesterday's sales to the sales on the same day in the last four weeks. 3. When prices go up… a) the demand goes up, b) the supply is reduced, c) the supply is increased. Management Across Cultures

I. Mark the following statements true (T) or false (F). (Parts 1 and 2 of the text 2) 1. Different levels of management include planning and decision making, controlling, organizing, and leading.____ 2. Management means "practice of managing" and "the people who are responsible for achieving organizational goals."________ 3. Middle managers develop plans and policies for top managers. ___________ 4. Marketing managers belong to the middle level management.________ 5. Marketing is the selling of goods and services.__________ 6. Methods of promoting goods and services include advertising and publicity._____ 7. The marketing concept was first adopted to compete effectively with rival companies._____ 8. "Service" industries are not marketing-oriented because it is difficult for them to adopt the marketing concept.____

1. Management style depends on both individual and cultural factors. Each manager has a different way of managing the people who work for him or her, but at the same time, many cultures have a dominant management style. Can you give any examples of management styles in different cultures? 2. In order to be successful in working with people from other countries you should be acquainted with some cultural differences that may cause the principal problems. Read the text below. What do you agree/disagree with? What can you add?

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MISUNDERSTANDINGS EMERGING FROM THE DIFFERENCES IN THE PERCEPTION OF TIME American Americans like to do one the thing at a time. One-on-one conversation. It is rude to interrupt conversing people. If somebody is speaking over the telephone and there is a signal that someone else is calling, it is rude to switch the call. Attention is exclusive, undivided. Americans concentrate on the job. They hate being interrupted.

Americans take time commitments seriously. When the deadlines are fixed they should be observed. They are almost no exceptions. Everybody tries to meet the deadline. A thirtyminute tardiness may lead to very serious consequences. For example, the defense of a thesis was canceled and the graduate student had to wait for the next year (having to pay extra tuition fee). Schedules are also sacred. Americans are committed to the job. In every day life or business it means that if you say you have an 11 o’clock appointment nobody will detain you. They understand that you have time commitment.

Russian Russians very often do many things at a time simultaneously. Multiple conversation. You may be speaking with somebody, but other people can interfere with quite a different problem, you have to switch from one person to another. Though generally it is impolite but it happens all the time. Attention is split. Highly distractible. Russians also concentrate on the job, but they can be easily interrupted. Even your boss can give you a task different from the previous one knowing that you are not finished with the last one. Russians have deadlines but they are very often an approximation, flexible. A person can write and check if it is still possible to apply sometimes a month after the deadline. Some institutions purposefully move deadlines ahead of the actual deadline to get some response on time. Schedules may be changed, much to the Russian’s displeasure.

Russians are more committed to people than to the job. It means that when you are hurrying somewhere a person may stop you and ask a lot of questions you have to answer them, pay attention to a person though you may be late for the appointment. You hope that at your job they will forgive you and understand. 57

The end of the table Time and tide wait for no man. This proverb shows the importance of time in American culture. The focus is on time. Americans religiously adhere to plans, they always try not to change anything in their plans. Things are planned well in advance, changes are made but preferably the earlier the better (though last minute changes do occur too).

Americans follow the rules of privacy. Interruptions in counseling, advising, conversation are rude. An American will complete his or her involvement before starting a new one. Americans seldom borrow or lend money from each other. My American friends were surprised to find out that I had to borrow from a colleague in order to go to the US. “Your colleague did not need the money” “He did, but he understood that it was important for me to go.” Americans are accustomed to short-term relationships. See also “friendliness.”

Semero odnogo ne zhdut (Seven people do not wait for one) is a corresponding Russian proverb where focus is on people and not on time. I think it conspicuously speaks about Russian culture time perception. Plans are more flexible. There is more spontaneity, changes occur too often. Sometimes even interpreters are invited at a very short notice (a day or two) for a conference. During the Soviet period plans were sacred but it is interesting to note that they were fulfilled on a different basis. An enterprise could waste time at the beginning of the month (quarter, year) and work rapidly at a stress at the end. In a business setting, a boss can speak with several people at the same time or somebody may come in and ask a question; in academic environment a professor may be interrupted in the middle of his or her advising by a student who thinks that his or her question will not require much time. Russian borrow and lend money from each other often and easily. Most of the time the money is lent without any interest. It is better to lose money than a friend.

Russians are accustomed to longterm relationships.

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MISUNDERSTANDING EMERGING FROM THE DIFFERENCES IN CULTURE CONTEXT American The message is entirely in the words, there is no need to read between the lines. Little is implied. Things should be explicit, i.e. very specific instructions should be given to subordinates. These is need to get more information by asking many questions or discussing things, “context”. It may be misinterpreted by Russians as trying to “beat about the bush” or even spying on a business secret: e.g. a Russian company was displeased when an American counterpart requested to submit a business plan with precise financial information including names of persons in charge of this or that part of business (from personal experience). At meetings focus is on the task. Speakers stick to the agenda. Speak more directly, ready to say “no” openly. Business is not done off the job or after hours. Parties are for socializing. But on the other hand, there are business lunches when participants get together and discuss business things over lunch. It does not mean that Americans do not stay at the office after working ours, they do a lot.

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Russian The message is both in the words and in the context. More is read between the lines. More is implied, there is more reliance on intuition, vague instructions to subordinates (Russian “avos’”). More information is already known, there is no need to ask many questions or to discuss. It especially refers to situations when a friend or a member of the family recommends doing something (in this case they are not supposed to ask any questions).

More often speakers deviate from the agenda or at least give lengthier speeches. Speak less directly, hate to say “no” openly. Business is often done in an informal environment. There is a tendency to apply this attitude in a cross-cultural setting. Very often Russians say that Americans do not keep their word, or go back on their word after they have discussed things at table, but for Americans it was a mere socializing.

TOPIC 9. MARKETING Read the text: Marketing Strategies Nowadays Originally marketing was meant to help to avoid overproduction. Now marketing is considered to be a system of all business activities of a company in respect of coordinating supply and demand for the goods produced. Before producing and selling the goods, one must do a lot of market research1. Useful information for this purpose can be obtained from embassies, consulates and foreign trade representatives, from trade magazines or from specialized consultant agencies, which will do a professional market research job for a certain fee. The information needed is whether there is any demand for your goods, what is the market potential2, what sort of competition is to be met (that is what price of the goods, including those produced locally, is considered to be competitive), what domestic preferences, local trading customs and seasonal factors should be taken into account. Actually, marketing covers not only market research, out also planning the assessment of goods, price policy, advertising and promotion of sales3, controlling the sales and post-sales servicing4. So nowadays general marketing strategy includes such essential elements as planning, market research, new product development, sales, communications5 and advertising. Planning. While speaking of marketing planning, one should think first of all of the so-called controllable and uncontrollable factors. The controllable factors are the following: product, price, place and promotion; the uncontrollable ones – environmental factors. Both these types are very important when one starts analysing the market situation. Research. Market research is concerned first of all with product choice study and the study of competitors' interests and their claims6. The most popular methods of conducting marketing research are observation, survey, experiment and public opinion polls through different channels. 60

Production. Attitudinal research7 should affect the product to be produced, so production is inevitably based on marketing Intelligence study8. Marketing investigates stages before, during and after production and also the stage following sales. Sales. Sales are always involved with customers service of all kinds. Markets for consumer products9 are segmented on the basis of demographic and psychographic data research. Communications and advertising. The communications mix10 comprises advertising, public relations, direct mail and special events such as product shows, conferences and exhibitions. Advertising is an important means of promoting the goods that have been produced already, as well as new lines in business. Nowadays there are special departments and agencies dealing with advertising. Different kinds of mass media – TV, radio, newspapers, cinema, magazines, posters – are used for advertising aims. Special leaflets, booklets and other printed matters with the information about goods may be published for the same purpose. The choice of media for advertising depends on the kind of goods and on the local conditions and people's habits. ____________________ 1 market research – изучение конъюнктуры рынка, маркетинговое исследование 2 market potential – емкость рынка 3 promotion of sales – мероприятия по содействию сбыта 4 post-sales servicing – гарантийное обслуживание 5 communications – зд. организация контактов с потребителями 6 competitors' interests and claims – интересы и претензии конкурентов 7 consumer products – потребительские товары 8 the communications mix – мероприятия по организации контактов с потребителями 9 printed matter – печатные материалы

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TASKS I. Translate the following words and learn their pronunciation: preferences; exhibitions; polls; magazines; leaflets; fee; choice; assortment; promotion; potential; mass media; advertising; experiment; strategy; originally; locally; competitive; attitudinal; environmental; uncontrollable; demographic; psychographic; preliminary. II. Explain the meaning of the following words and phrases in English: embassy; market research; market potential; seasonal factors; controllable factors; consumer products; the communications mix; overproduction; direct mail; sales promotion, public relations. III. Give English equivalents for the following Russian words and phrases: ценовая политика; торговые представители; традиции и обычаи; факторы, связанные с внешней средой; связи с общественностью; избежать перепроизводства; координировать спрос и предложение; проводить выставки и конференции; считаться конкурентоспособным; включать в себя рекламное дело; проводить сегментацию рынка; влиять на выбор продукции. IV. Answer the following questions: 1) What was the original aim of marketing? 2) What is the main purpose of marketing nowadays? 3) Where can information for market research be obtained? 4) What are the most important parts of any marketing research? 5) How many parts does marketing strategy include? 6) What is meant by planning? 7) Why is production inevitably based on marketing study? 8) What is the aim of advertising?

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TOPIC 10. ADVERTISING Before reading the text think of the following points: 1. How do you think advertising is important for producers/customers? 2. What ways of advertising a product/service do you know? 3. What do you like/hate in advertising nowadays? TEXT It’s well-known fact that selling an unknown product “is like rowing a boat upstream, movement is mostly backwards”. So, if the company wants to succeed in generating sales, provide an income and stable growth for its business, it should acknowledge the importance of capturing the public’s attention and increasing the level of brand name recognition. Consequently, later or sooner the company will face the problem of choice of types and means of advertising. That is why we find this question to be worth being discussed. Depending on business objectives a company wants to achieve 3 principal types of advertising should be pointed out: ƒ image-making advertising (or soft selling), ƒ stimulating advertising (or hard selling), ƒ advertising of stability (or reminder advertising). Image-making advertising (soft selling) The slogan of image-making ad is the delicate and emotionally grounded “Like me!” The first aim of this type is to acquaint potential customers with the product, its destination and characteristics, to claim product’s relevance to consumers and its significant difference from competing products. Image-making ad is designed to build strong brand image and create a propitious attitude, recognition and awareness to the company or the product. This is an emotional way of persuasion aimed at subconsciousness through the association of ideas, techniques and renascence of comfortable psychological environment and situation, which the consumer associates himself with and is involved in symbolism, emotions and in-depth motivation are enabled here. Soft selling is appropriate for a new brand launch and farreaching objectives on its support and development. Ads of this type 63

impact not only upon potential consumers but all sections of the population. That will provide innovations with already created favorable reception by the customers, if the company diversifies its product range. Such kind of advertising will help in many respects to smooth away failures of future advertising campaigns. The most effective means of image-making advertising are ƒ trailers on TV; ƒ print advertising in popular magazines and newspapers; ƒ participation in charity actions and its covering in mass media; ƒ outdoor advertising which can be subdivided into 7 types. 1. Billboard advertising – the most traditional type of outdoor advertising, is usually exposed on the busiest streets and highways and becomes the most accessible and obvious medium of information for drivers and passengers. A large address program of billboards (series) allows to cover all important vehicular and pedestrian arteries of the city and to produce a cumulative effect of frequency. 2. Consoles advertising. Advertising series of billboards installed on contact-line supports or on detached consoles have become popular because they are widespread and it is possible to place them in the close proximity of advertised objects. Targeted and serial placement of console advertising enables advertiser to score a high information effect. 3. Necessary attribute of any kind of business, signboards are the face of any company, enterprise, shop, drugstore, etc. 4. Roadside Stoppers usually serve for operative advertising information more often and are a widely spread, handy and mobile advertising type, which blends well with urban landscape. 5. Citylights are a widespread type of advertising. Functionality and small sizes of them allow their installation in the central areas of the city – both along the busy motor highways running through the center, and on sidewalks and pedestrian zones. Owing to moderate design and utility, citylights blend easily and organically with any urban environment. Concentration of citylights in the busiest districts and key areas of the city, business and shopping centers increases efficiency of an advertising structure of this format.

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6. Over-road banners. Advertisements above carriageway have an important advantage: they always remain in view of drivers and passengers. 7. Transport advertising (motor transport and public transport) is very effective, since it covers mass audience, and the complexity of routes produces a feeling of omnipresence of advertising, owing to which it is perfectly suitable whenever it is necessary to introduce a new trade mark to the public or to develop corporate image. Stimulator advertising (hard selling) As it goes from the appellation, this type of advertising makes for motivating customers to buy the concrete product of the concrete company as well as sale stimulating and acceleration of commodity circulation. Such kind of ad implies a rational, informative, wellgrounded and substantiated method of persuasion with the direct appeal “Buy Me!” slogan. Unlike soft selling, hard one is a concrete consumer oriented type. It’s the most widespread type of advertising, as a rule, using verbal arguments as to advantageous features of the product, etc. In most cases this type refers to promotion with shortterm objectives – direct influence over the audiences through sell-outs, etc. Meanwhile, stimulator advertising is a component of imagermaker one as some of hard selling ads create a definite image even if not of the whole company but of the business line the firm presents. So, while planning stimulator advertising activities don’t forget of the company image integrity. The most effective means of hard selling are: ƒ recurrent ads in newspapers and magazines, that are popular among the potential customers; ƒ direct mail; ƒ radio advertising; ƒ participation in exhibitions; ƒ TV advertising. Advertising of stability (reminder advertising) Even if the company gets sales going and its brand is recognized, it’s necessary to keep product in public eye and from time to time to consolidate the achievements by advertising. Advertising of stability doesn’t rely on any specific type of appeal, its only objective is to keep the brand name in the mind of the consumers by means of

ƒ hidden advertising in the form of articles about the company’s activity and products; ƒ participation in exhibitions; ƒ direct mail of prospects (reports) about the annual activity of the company to the constant partners.

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Answer the questions: 1. What are the principal types of advertising? 2. What is soft selling meant for? Who does it appeal to? 3. What are the effective means of image-making advertising? Which is most developed in your country/city? 4. Characterise hard selling. Enumerate means it uses. 5. What is special about reminder advertising? Is it widespread in you country/city? TOPIC 11. WHOLESALING, RETAILING TEXT 1 Wholesaling Wholesalers are one of the two major institutions that make up a firm’s marketing channel. They are persons or firm who sell to retailers and other wholesalers or to industrial users but who do not sell in significant amounts to ultimate consumer. There are two large groups of independent wholesalers: merchant wholesalers and agents and brokers. Merchant wholesalers take title to the good they handle. Selling agent, brokers are classified as agent wholesaling middlemen because they do not take title to goods. The operating expenses of wholesaling middleman vary considerably, depending on the services provided out and the cost involved. The services include storage facilities in conveniently located warehouses, market coverage by a sales force, financing for retailers and manufacturers, market information for retailer, management services, retail sales training and merchandising assistance and advice. Although the percentage of wholesale trade by manufacturer owned facilities has increased since 1925 independent wholesaling middlemen continue to account for 90 percent of all wholesale estab-

lishments and nearly two-thirds of total wholesale trade. They accomplish this by continuing to provide desired services to manufacturers, retailers, and industrial buyers. Answer the questions: 1. The term wholesaling – how is it applied? 2. What are the groups of independent wholesalers? 3. What do the operating expenses of wholesaling middleman depend on? TEXT 2 Retailing (the description if Harrods department store) When the door opened at 9 a.m. thousands of people pushed in and run through the store four floors. Many had camped overnight in the street outside. By midmorning the crush was so thick it was impossible to enter or leave the store. There were 6.500 staff workers on duty to deal with the crowds including a beefed-up security force to handle a situation described by store officials as perfect cover for shoplifters. In the china department according to one witness, there seemed to be more breakages than purchases. In the fur department a group of people demonstrating against cruelty to animals was ignored by women sweeping half-price luxury furs off the racks. Security men had to restore order in the electronics department where jostling crowds caused more than $12.ooo worth of damage to stereo equipment and television sets. One customer was dragged out through an emergency exit to end a tussle over a bargain. A fistfight was narrowly avoided in the linen department where satin-look sheets were selling for $2.40 each. The store where Queen Elizabeth has some of her shoppings done, holds the most popular of the annual New Year’s sales that turn London department stores into battle grounds. Almost a city in itself , it arranges funerals, caters, weddings, plans vacations, sеlls hоuses and has its own bank. It advertises itself as the store where you can buy “a pound of potatoes or mink coat."

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What is Retailing? Harrods is engaged in retailing activities. Giant stores like Harrods may generate daily sales of several million dollars, while a small shoe store may have annual sales of less than $ 100.000. But both large and small perform the major activity: creating time, place and ownership utility. In a very real sense, retailers are the marketing channel for most consumers, since the typical shopper has little contact with manufacturers and virtually none with wholesaling intermediaries. As a result, the services provided – location, store hours, quality of salespeople, store layout, selection and the returns policy, among others – are often more important than the physical product in developing consumer images of the products and services offered. Retailing may be defined as all the activities involved in the sale of products and services to the ultimate consumer. The supermarket is a large-scale departmentalized retail store offering a variety of food products such as meat products, canned goods, and frozen goods in addition to various nonfood items. It operates on a self-service bases and emphasizes low prices and adequate parking facilities. Supermarket customers typically shop once or twice a week. With a razor-thin profit margin (only about 1 percent of sales after taxes) supermarkets complete through careful planning of retail displays in order to sell a large amount of merchandise each week and by retaining a low investment in inventory. In an attempt to fight the fast-food threat – the tendency of consumers to eat many of their meals outside the home – supermarkets have begun to feature their own delicatessen. In Florida, the supermarkets sell fried chicken by the bucket. Supermarkets General of New Jersey has even established cafeterias and snack shops in factories. Supermarkets carry nonfood products such as magazines, records, small kitchen utensils, toiletries and toys for two reasons: consumers have displayed a willingness to buy such items in supermarkets, and supermarket managers like the profit margin on the items, which is higher than that of food products. Nonfood sales account for almost one-fourth of all supermarket sales.

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Department store is a series of special stores under one roof. It is a large retail firm handling a variety of merchandise: women’s wear and accessories, household linens and dry goods, home furnishings, appliances and furniture. Department stores are known for offering their customers a wide variety of services, such as charge accounts, delivery, gift wrapping and liberal return privileges. In addition, some 50 % of their employees and 40 % of their floor space are devoted to nonselling activities. Now Department stores have faced intensified competition in the past thirty years. Their relatively high operating costs make them vulnerable to such new retailing innovations as discount stores, catalog merchandisers, and hypermarkets. In addition, department stores were typically located in downtown business districts and experienced the problems associated with limited parking, traffic congestion, and urban migration to the suburbs. They have displayed a willingness to adapt to changing consumer desires. They have added bargain basement and expanded parking facilities in attempts to compete with discount operations and suburban retailers. They have also followed the movement of the population to the suburbs by opening major branches in outlying shopping centers.

I. Study the terms: Budget: the financial operating plan or forecast for an organization for a fixed period. The budget shows what income is anticipated and how the resources will be used during the budget period.

Master budget: the total of separate budgets from different departments within a company that shows in detail how the entire business operates. Financial Forecast: an estimation of what will probably happen in the future, based on the past and present fiscal records. Control Device: a standard plan for the performance of a business by which its operations may be measured and regulated. Retail Trade Business: a business that acquires goods to sell to general public. A wholesale business is a middleman operation that acquires goods from the manufacturer and then sells them in turn to the retailer. Retail Outlet: a unit of the retail business, usually a store. Unit Price: in the context of retailing, the price at which a single item is sold to the buyer. Sales Mix: the inventory of items available for sale. Geographical Breakout: organisation of a business on the basis of location. Allowances: special terms of sale granted to specified customers. Discount: a reduction in the price of an item for sale. Inflationary period: a period of rising prices in which more money becomes available in relation to goods. Recession: a period of reduced general economic activity market by a decline in employment, profits, production and sales. Inventory: in retailing, tangible property either held for sale or to be consumed in the sale of goods. Lead Time: the time that elapses between ordering and displaying merchandize. General and Administrative Expenses: such expenses as employees’ and officers’ salaries, utility bills, payroll, taxes, stationery and office suppliers. Break-even Point: minimum volume of sales a company needs to enable it to function as a going concern without realization a profit or incurring a loss. Accrual Basis: the method of keeping accounts that recognizes income when earned and expenses when incurred regardless of when cash is received or disbursed.

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Answer the questions: 1. What is retailing? 2. Why do they say retailers are the marketing channel for most consumers? 3. What is a supermarket? 4. What is a department store? 5. What are the problems department stores have faced for the past 30 years? TOPIC 12. BUDGETING

Obligations Outstanding: unpaid or unmet obligations, usually debts. Collectible Receivables: goods sold for which the firm has not been paid, but which it is reasonably sure of collecting. Cash Flow: the predicted pattern of actual cash to be received by a business. II. Find the answers in the text: 1. What does budgeting involve? What is its primary objective? 2. What is the accounting period for the budget? When can a budget be reviewed or changed? 3. What is included in the financed forecast? What can a flexible master budget be used for? 4. What kinds of activities are included in a business involved in retail trade. For which of them would budget be prepared? 5. What are the important entries in the budget? What else must be added if the business sells more than one item? 6. What items could be grouped to form a sales department in a furniture store? 7. When do sales figures have to be adjusted? 8. In what way can the purchases budget be considered the ’mirror image’ of the sale budget? What factors are involved in its preparation?

We will talk about retail trade business. This type of enterprise purchases merchandise, sells those goods, pays its employees and its suppliers, and employs an administrative staff. It may also move into new headquarters or expand into new retail outlets. It must account for each activity. This is generally accomplished by means of separate budgets which can be combined into a master budget. One of the activity budgets is the sales budget information about unit prices; the price of one item of each kind of merchandise sold, and the expected sales volume are the important entries for this budget. TOPIC 13. BANKING Read the text below and write short headings (one or two words) for each paragraph. TEXT 1 Types of Bank

Budgeting involves setting financial goals and standards for an enterprise. The primary objective of the budget is to establish a financial framework for the operations of the business. The accounting period for the budget is usually either the calendar year or the fiscal year. A generally accepted budgeting device is a flexible master budget. This budget foresees that management plans to operate the business at various levels of activity and that all the different activities of the enterprise are included in the financial forecast. Budgets for various sections of the company are gathered together into one overall budget. Then, as the business year progresses management can use the budget as a control device, that permits monitoring of the company operations.

1 ......................................................... Commercial or retail banks are businesses that trade in money. They receive and hold deposits, pay money according to customers' instructions, lend money, offer investment advice, exchange foreign currencies, and so on. They make a profit from the difference (known as a spread or a margin) between the interest rates they pay to lenders or depositors and those they charge to borrowers. Banks also create credit, because the money they lend, from their deposits, is generally spent (either on goods or services, or to settle debts), and in this way transferred to another bank account – often by way of a bank transfer or a cheque (check) rather than the use of notes or coins – from where it can be lent to another borrower, and so on. When lending money, bankers have to find a balance between yield and risk, and between liquidity and different maturities. 2......................................................... Merchant banks in Britain raise funds for industry on the various financial markets, finance international trade, issue and underwrite securities, deal with takeovers and mergers, and issue government

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bonds. They also generally offer stockbroking and portfolio management services to rich corporate and individual clients. Investment banks in the USA are similar, but they can only act as intermediaries offering advisory services, and do not offer loans themselves. Investment banks make their profits from the fees and commissions they charge for their services. 3 ......................................................... In the USA, the Glass-Steagall Act of 1934 enforced a strict separation between commercial banks and investment banks or stockbroking firms. Yet the distinction between commercial and investment banking has become less clear in recent years. In some European countries (notably Germany, Austria and Switzerland) there have always been universal banks combining deposit and loan banking with share and bond dealing and investment services. 4 ......................................................... A country's minimum interest rate is usually fixed by the central bank. This is the discount rate, at which the central bank makes secured loans to commercial banks. Banks lend to blue chip borrowers (very safe large companies) at the base rate or the prime rate; all other borrowers pay more, depending on their credit standing (or credit rating, or creditworthiness): the lender's estimation of their present and future solvency. Borrowers can usually get a lower interest rate if the loan is secured or guaranteed by some kind of asset, known as collateral. TASKS I. Which of the following three paragraphs most accurately and concisely summarizes the text, and what is wrong with the others? First summary: Commercial banks hold customers' deposits and make loans. Investment banks raise funds for industry. Deregulation in Britain and the US is leading to the creation of financial conglomerates similar to the universal banks that have always existed in German-speaking countries. A country's minimum interest rate is usually fixed; banks charge progressively higher rates to less secure borrowers. Many 73

banks also do Eurocurrency business – lending foreign currencies, notably dollars, at lower rates than in the currencies' home countries. Second summary: Commercial banks receive deposits and make loans. Merchant and investment banks arrange security issues and offer other investment services. Yet the traditional distinction between commercial and investment banks is now breaking down. Domestic interest rates are fixed by central banks. Many banks also have branches abroad that do Eurocurrency business, making loans in other European currencies. Third summary: Commercial banks receive deposits, lend money, and provide other services. Merchant and investment banks lend money to industry. British and American banks are now joining together in conglomerates. The interest rates that banks charge depend on the borrowers' creditworthiness. European banks also do a lot of Eurodollar and petrodollar business. II. Find the words or expressions in the text, which mean the following: 1. to place money in a bank; or money placed in a bank 2. the money used in countries other than one's own 3. how much money a loan pays, expressed as a percentage 4. available cash, and how easily other assets can be turned into cash 5. the date when a loan becomes repayable 6. to guarantee to buy all the new shares that a company issues, if they cannot be sold to the public 7. when a company buys or acquires another one 8. when a company combines with another one 9. buying and selling stocks or shares for clients 10. taking care of all a client's investments 11. the ending or relaxing of legal restrictions 12. a group of companies, operating in different fields, that have joined together 13. a company considered to be without risk 74

14. ability to pay liabilities when they become due 15. anything that acts as a security or a guarantee for a loan III. The text contains a number of common verb-noun partnerships (e.g. to lend money, to finance international trade). Match up the verbs (column A) and nouns (column B) below to make common collocations. A charge do exchange issue make offer pay raise receive underwrite

New Services in Banking Banks perform the widest range of functions in the economy and consequently any modern full-service banking institution should provide the widest variety of services.

B advice bonds business currencies deposits funds interest loans profits security issues

TEXT 2 Answer the following comprehension questions based on the text: 1. What is the bank? What factors determine the success of its operation? 2. What makes the 1980s a turning point in banking? 3. What do bank trust operations encompass? 4. What groups do the bank trust operations fall into? 5. What does the Federal Indenture Act of 1939 envisage? 6. What are the obligations of a bank acting as trustee under indenture? 7. What are letters of credit aimed at when they are issued by banks acting as fiduciaries to benefit their corporate customers?

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Fig. 6 Banks may be defined as firms producing and selling financial services. Their success or failure hinges on their ability to identify the financial services the public demands, produce those services efficiently, and sell them at a competitive price. The service menu of banks does not remain unchanged as new services are constantly being introduced and developed by commercial banks. Many of them offer a combination of wholesale and retail banking. The former provides large scale services to the corporate sector. The latter mainly provides smaller scale services to the general public. The 1980s ushered in an explosion of new service options. Many of the new services have simply been variations of traditional deposit and loan product. Other innovative services, however, have broken new ground and exposed bankers to all the uncertainty and risk associated with new product development. 76

Trust services are one of the most important and rapidly growing bank service areas today. Bank trust operations encompass the management of property and other assets owned by a bank customer and the administration of a customer's security holdings and borrowings. In offering trust services the bank places itself as authorized agent between the marketplace and the customer, making investment and management decisions on the customer's behalf and dispensing funds when needed to cover the customer's obligations. A bank's trust operations are usually divided into three broad areas: (1) personal trust services, (2) business trust services, and (3) trust services for charities and nonprofit organizations. Each involves a fiduciary relationship between bank and customer – that is, a trust department acts to benefit its customers within those areas defined by contract (the trust agreement) between the bank (trustee) and the customer (trustor) covering a specified period of time. Banks provide a wide range of trust services for individuals and families in the form of estate settlement, trust administration and agency services. Bank trust divisions act as agents for corporations and other businesses in a host of different ways. This may involve issuing securities on the business customer's behalf, paying dividends or interest owed on any securities issued, reinvesting the dividends for securities holders who request that service, and retiring the securities at maturity. Under the terms of the Federal Trust Indenture Act of 1939, any foreign or domestic corporation that issue securities to the general public in the United States must designate a trustee for that security issue to act as a fiduciary, representing the investors purchasing those securities. Trust departments also handle transfers of ownership of corporate stock, stock splits, and conversions of stock into debt, and they issue proxies and count votes in connection with annual stockholder meetings. Today, banks frequently serve as trustees under indenture, holding legal title to property securing a bond issue, with the power to foreclose on and liquidate that property if the issuer defaults. The bank as trustee must make sure all bond covenants agreed to by the issuing corporation are adhered to and that all required liens against the company's property are duly filed and recorded. The trust department will set up and manage a sinking fund, investing all monies that the bond

issuer contributes to that fund periodically with the intent of eventually redeeming the bond issue. The fiduciary activities of banks make a critical contribution to the functioning of the commercial paper market, where the unsecured, short-term notes of large corporations (both foreign and domestic) are traded. Bank trust departments keep records on which investors purchase commercial paper, see that any notes purchased are actually delivered to the investors involved, and pay off the holders of those notes on the maturity date. Even more important, banks issue letters of credit backstopping issuers of commercial paper in order to reassure investors that the bank will pay off a note issue if the borrowing corporation cannot do so. A bank's trust department will receive and hold any credit letters issued by other lending institutions and check to see that all the terms of those credit letters are being adhered to by borrowing companies. If necessary, the trust department will file: for payment under the terms of a credit letter and dispense the collected funds to note holders. Many banks today would like to offer real estate brokerage services to their customers, selling a home or commercial structure and then financing the sale. For generations banks have made loans to finance the construction of business facilities and private houses. While preferring to stick predominantly to short-term construction financing, banks have also taken on a limited volume of long-term , commercial and residential real estate mortgages in which the mortgaged property being a home or a commercial structure. Mortgage loans are among the riskiest forms of bank credit, though they can be sold quite readily in the secondary market. Sometimes banks acquire realty companies in order to be able to offer a larger menu of financial services. ____________________ 1. to issue a proxy – выдать полномочие на право голосования 2. to foreclose – лишать права пользования 3. a sinking fund – фонд погашения задолженности, выкупной

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TASKS I. Match the words with the correct definition from the list below. Fiduciary, relationship, trustee, real estate, mortgage, estate, trust department, trustor, service, a letter of credit. 1. One's collective assets and liabilities. 2. An agreement between a bank and its customer in which the bank becomes responsible for the management of the customer's funds. 3. One who holds legal title to property in trust for the benefit of another person, and who is required to carry out specific duties with regard to the property. 4. One who creates a trust. 5. Debt instrument by which the borrower gives the lender a lien on property as security for the repayment of a loan. 6. Part of a bank engaged in settling estates, administering trusts and guardianships, and performing agency services. 7. Type of business that sells assistance and expertise rather than a tangible product. 8. Immovable property such as land held on a freehold. 9. A document issued by a bank by which credit facilities up to a stated maximum amount are extended to a customer. II. Look through the excerpt and then fill the spaces with words from the box. Translate the text into Russian. For many years banks have offered ... (1) the financial affairs and property of individuals and business firms in return for ... (2) that is often based on the value of properties or funds under ... (3). This property management function is known as ... (3). Most banks offer both personal trust services to individuals and families and ... (4) to corporations and other businesses. In their commercial ... (5), banks manage ... (6) portfolios and pension funds for business firms and ... (7) as agents for corporations issuing stocks and bonds. This requires ... (9) departments to pay interest or dividends on the corporation's

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securities at the proper times and ... (10) maturing securities by paying off the investors who hold those securities. Retire, mortgage, to manage, trust, real estate, fee, act, management, security, trust services, trust departments, commercial trust services. TOPIC 14. MARKET PLACE Read the text and find the answers to the questions: 1. What role does the stock market play in the economy of any country? 2. What does the “stock market” mean? 3. What does AMEX date back to? How was it known? 4. How is the Exchange regulated? 5. Who can become an Exchange member? 6. How is over the counter trading accomplished? 7. What does NASD supervise? 8. What companies was OTC organized for? TEXT 1 The stock market. To some it is а puzzle. To others it is a source of profit and endless fascination. The stock market is the financial nerve center of any country. It reflects any change in the economy. It is sensitive to interest rates, inflation and political events. In a very real sense, it has its fingers on the pulse of the entire world. Taken in its broadest sense, the stock market is also a control center. It is the market place where businesses and governments come to raise money so that they can continue and expend their operations. It is the market place where giant businesses and institutions come to make and change their financial commitments. The stock market is also a place of individual opportunity. The phrase “the stock market” means many things. In the narrowest sense, a stock market is a place where stocks are traded – that is bought and sold. The phrase “the stock market” is often used to refer to the biggest and most important stock market in the world, the New York Stock Exchange, which is as well the oldest in the US. It was 80

founded in 1792. NYSE is located at 11 Wall Street in New York City. It is also known as the Big Board and the Exchange. In the mid-1980s NYSE-listed shares made up approximately 60 % of the total shares traded on organized national exchanges in the United States. AMEX stands for the American Stock Exchange. It has the second biggest volume of trading in the US. Located at 86 Trinity Place in downtown Manhattan, the AMEX was known until 1921 as the Curb Exchange, and it is still referred to as the Curb today. Early traders gathered near Wall Street. Nothing could stop those outdoor brokers. Even in the snow and rain they put up lists of stocks for sale. The gathering place became known as the outdoor curb market, hence the name the Curb. In 1921 the Curb finally moved indoors. For the most part, the stocks and bonds traded on the AMEX are those of small to medium-size companies, as contrasted with the huge companies whose shares are traded on the New York Stock Exchange. The Exchange is non-for-profit corporation run by a board of directors. Its members firms are subject to a strict and detailed selfregulatory code. Self-regulation is a matter of self-interest for stock exchange members. It has built public confidence in the Exchange. It is also required by law. The US Securities and Exchange Commission (SEC) administers the federal securities laws and supervises all securities exchange in the country. Whenever self-regulation doesn’t do the job, the SEC is likely to step in directly. The Exchange doesn’t buy, sell or own any securities nor does it set stock prices. The Exchange merely is the market place where the public, acting through member brokers, can buy and sell at prices set by supply and demand. It costs money to become an Exchange member. There are about 650 memberships or “seats” on the NYSE, owned by large and small firms and in some cases by individuals. These seats can be bought and sold; in 1986 the price of a seat averaged around $600,000. Before you are permitted to buy a seat you must pass a test that strictly scrutinizes your knowledge of the securities industry as well as a check of experience and character. Apart from the NYSE and the AMEX there are also “regional” exchange in the US, of which the best known are the Pacific, Midwest, Boston and Philadelphia exchange.

There is one more market place in which the volume of common stock trading begins to approach that of the NYSE. It is trading of common stock “over-the-counter” or “OTC” – that is not on any organized exchange. Most securities other than common stocks are traded over-the-counter market. So there is the money market – the market in which all sorts of short-term debt obligations are traded daily in tremendous quantities. Like-wise there is market for long- and short-term borrowing by state and local governments. And the bulk of trading in corporate bonds also is accomplished over-the-counter. While most of the common stocks traded over-the-counter are those of smaller companies, many sizable corporations continue to be found on the “OTC” list, including a large number of banks insurance companies. As there is no physical trading floor, over-the-counter trading is accomplished through vast telephone and other electronic networks that link traders as closely as if they were seated in the same room. With the help of computers, price quotations from dealers in Seattle, San Diego, Atlanta and Philadelphia can be flashed on a single screen. Dedicated telephone lines link the more active traders. Confirmations are delivered electronically rather than through the mail. Dealers thousands of miles apart who are complete strangers execute trades in the thousands or even millions of dollars based on thirty seconds of telephone conversation and the knowledge that each is a securities dealer registered with the National Association of Securities Dealers (NASD), the industry self-regulatory organization that supervises OTC trading. No matter which way market prices move subsequently, each knows that the trade will be honoured.

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Shares and the economy Insert the words (FLOAT, SHARE, CAPITAL, PORTFOLIO, STOCK) that correspond with the given definitions. E.g.: an important topic – issue – to produce shares for investment. 1. to divide up – _________ – a small portion of a company; 2. what ships do on the water – __________ – to issue shares in a company;

3. what shops keep in reserve – _________ – another word for shares; 4. London, Paris are this kind of city – _________ – money to invest in business; 5. Example of an artist’s or designer’s work – ______ – range of shares kept by investors. TEXT 2 The Stock Exchange Stock Exchange plays a very important part in a country’s economic growth because they allow businesses to obtain, from the general investing public, capital to start up and to grow. They also provide a place where the investors can buy or sell shares. If you are a shareholder (have a stake in a company) and you want to get back the money you have put into a company, you must sell your shares at the Stock Exchange. The Stock Exchange is a place where shares are bought and sold. Fixed-interest securities, bonds and ordinary shares or stocks are the main stock-in-trade of the stock market. Government stocks or gilt-edged securities are also traded. The Stock Exchange operates mainly through stockbrokers who handle transactions for their clients. Each transaction is carried out in public and the information is sent electronically to every brokerage office in the nation. The price of shares is controlled by the amount of people willing to pay for them. Share prices are sure to fluctuate as market conditions change. If the company is making a profit, other people may want to buy shares in it, so may be able to sell shares at a higher price than you paid for them. If you bought 100 shares at $1.00 each and you sold them later at $1.50 each, you would make $50 profit on the 100 shares, as well as keeping any dividend paid during the period when you owned the shares. But if business is not going well, other people may not be willing to pay as much as $1.00 a share. If they think the company may do well in the end, they might pay 80 p. a share. If the business is really failing no one will buy the shares at all you risk losing all your money.

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The first Stock Exchange was established in 1773 in London. It was the biggest in the world until 1914. Now it is the third to Tokyo and New York. Answer the questions: 1. What role does Stock Exchange play in a nation’s economy? 2. What are the ways of earning a return on money? 3. What is the Stock Exchange? 4. What types of securities do you know? 5. What would you do with the shares of the company if: a) it is making a profit? b) it is not going well?

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SUPPLEMENTARY File 1 I. Money is used for buying goods means: You can buy goods with it. Write similar sentences which mean: 1. You can measure value with it. 2. You can store wealth with it. 3. You can sell things for it. II. Money is used for buying and selling goods. – People use money for buying and selling goods. Change these sentences in the same way. 1. A system of barter was used. 2. Cattle, grain and tobacco have all been used. 3. Paper currency will no longer be used. 4. Cheques, bankers' cards and credit cards are being used. III. Somebody could exchange a sheep. – A sheep could be exchanged. Change these sentences in the same way. 1. People needed a more practical system. 2. Most governments now issue paper money in the form of notes. 3. Filling stations will not accept cash at night. IV. Money is used for buying things. Shampoo is used for washing your hair. Make sentences with: knife/pen/key/camera/suitcase/saucepan /tooth paste/ detergent/wallet/hair-dryer. V. A place where you can fill your petrol tank is a filling station. Complete these sentences: 1. A special room where you can wait is a ... . 2. A pill which helps you to sleep is a … . 3. A license which allows you to drive is a ... . 85

4. A glove which boxers wear is a ... . 5. Oil you can cook with is ... . 6. A pool where you can swim is a ... . 7. Special liquid you can wash up with is ... . 8. A boat with sails is a ... . File 2 1. When you request employment (= apply for a job), your primary objective is to interest a prospective employer enough so that he/she will schedule an interview with you. 2. This can be done by sending an application form or a letter of application to the prospective employer. Applications for jobs are most often made on a form provided by the commercial organization or the manufacturing company to which the application is being made. For more senior appointments, however, applicants are often expected to write a letter which contains all the relevant information about the training, qualifications, reasons for applying and so on. Before you write a letter of application, you will have to collect all the information you will need for your letter – education, previous employment, employer, dates, etc. 3. Normally your letter of application presents not only your qualifications but your interest in a specific job. Include the exact job title, use a standard area such as "finance", "sales" or "research". Include the field you were trained in. This is especially applicable to those in technical fields. It is especially important to include the functional area of the company where you want to work. Examples of these company divisions are "research and development", "production", "marketing and sales", "administration and finance". 4. Begin your letter by stating the subject of the letter, which job you are applying for and where you heard about it – in a newspaper, in a journal, from the employment agency, from a friend. End your introduction with a statement of your ability to do the job. 5. The body of your letter should provide the information that will convince your reader of your qualifications. Mention any relevant courses you took and any pertinent job experience. Take care to refer to any specific information mentioned in the advertisement. Above all, emphasize your "strengths" (strong points). If you are applying for a 86

sales job, for example, you'd better stress your ability to communicate effectively, not your limited experience. If you have special skills or training, such as word processing, be sure to mention it. 6. Conclude your letter of application by referring to your resume (curriculum vitae – BrE). State that you are available for interview, list any dates on which you cannot be available. As always, your letter must be smooth, natural and free of errors. File 3 I. Complete the sentences using the following words: 1) are, control, and, in, ownership, person, one, vested; 2) organisation, of, its, this, flexible, type, extremely; 3) risk, all, at, possessions, his personal, are; 4) as, the, often, referred, is, business, it, to, one-person; 5) relatively, joint stock company, is, compared, unimportant, it, the, with. II. Match the words: a) with the similar meaning: enterprise, decision, acquire, business, obtain, need, event, proprietor, case, owner, responsible, solution, liable, require; b) with the opposite meaning: strength, profit, success, security, weakness, amount, failure, quantity, danger, loss.

3. He is solely responsible … the success … the business. 4. The strength … this type … firm lies … the direct personal interest … the proprietor in the efficiency … his business. 5. The owner is personally liable … the debts incurred … his firm. 6. All his personal possessions are … risk. 7. Another disadvantage … the type of firm is the strict limitation … its ability to acquire capital … expansion. 8. Finance is restricted … the amounts which the entrepreneur is able to provide … his own resources and whatever sums he can be borrow … his own security. V. Put the questions to the underlined words: 1. The different types of business organisation may be classified under five headings. 2. The owner is personally liable for the debts incurred by his firm. 3. The one-person business is prevalent in farming, retailing, repair and maintenance work. 4. A single person provides the capital, takes the decisions, and assumes the risks. 5. The oldest form of business enterprise is often referred to as the one-person business.

III. Give the English equivalents: эффективно руководить фирмой; единственный человек, принимающий решение; консультироваться с коллегами; необычайно гибкий; изменение рыночных условий; огромный недостаток; лично ответственный за; неограниченная ответственность; удовлетворить требования кредиторов. IV. Insert the prepositions: 1. The different types … business organisation to be found … the UK may be classified … five headings. 2. This is the simplest form … business enterprise and is often referred … as the one-person business. 87

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to borrow – брать взаймы to buy (bought) – покупать to cost (cost) – стоить to counterfeit – подделывать to earn – зарабатывать to exchange – обменивать to invest, investments – инвестировать, инвестиции to lend (lent) – давать взаймы (ссужать) to make a fortune – сделать состояние to owe – быть должным to pay (paid) – платить to pay off a debt – выплатить долг to purchase , a purchase – покупать, покупка to save (for a rainy day) – копить, откладывать (на черный

A LIST OF WORDS FOR STUDENTS TO STUDY TOPIC 3. MONEY MONEY (It) a buying (purchasing) power – покупательная способность a measure of value – мера стоимости a medium of exchange – средство обмена a store of value – средство накопления a unit of account – единица рассчета bargain – удачная сделанная покупка (с точки зрения покупателя) budget – бюджет cash – наличные cheap – дешевый coin – монета commodity money – 1) товарные деньги; 2) обеспеченные товарами, золотом деньги cost, costs – стоимость, издержки cost of living – стоимость жизни currency – 1) ден. обращение, валюта; 2) деньги (наличные) electronic money expenses – расходы expensive – дорогой fare – оплата проезда fee – гонорар free, free of charge – бесплатный income – доход IOU money – вексельные, долговые деньги legal tender – законное платежное средство paper currency – бумажные деньги plastic cards – пластиковые карты pocket money – карманные расходы price – цена rich – богатый salary – заработная плата, оклад standard of living – уровень жизни to be in debt – быть в долгу 89

день) to spend (spent) – тратить to store up – копить, накапливать to waste – тратить впустую token money – символические, знаковые деньги value – ценность wage – заработная плата TAXES to pay – платить to levy – облагать налогом to collect – собирать to apportion – распределять to utilize – использовать taxes: income tax – подоходный налог property tax – налог на собственность tax of natural resources – налог на природные ресурсы value-added tax – налог на добавочную стоимость federal/local/city tax – федеральный/местный/городской налог real estate tax – налог на недвижимость ad tax – налог на рекламу excise tax – акцизный налог direct tax – прямой налог 90

indirect tax – косвенный налог corporation tax – налог на корпорации revenue – выручка, поступления, доходы tax privileges – налоговые льготы tax exemptions – освобождение от налога untaxable minimum – необлагаемый минимум duties, customs – таможенные сборы cutoff – ограничение, граница installment – частичный взнос tax rate reduction – сокращение налоговой ставки

the causes of inflation – причина инфляции the effects of inflation – последствия инфляции aggregate demand – совокупный спрос a bout (syn. period, spell) of inflation – период инфляции declining demand – падение спроса falling sales – снижение объема продаж a withdrawal of money resources – изъятие денежной массы inflation accounting – учет инфляции the growth in money resources – рост денежной массы a reduction in spending (syn. buying, purchasing) power – снижение покупательной способности

INFLATION TOPIC 4. RECRUITMENT

to control inflation – контролировать инфляцию to cause inflation – вызывать инфляцию suppressed inflation – скрытая инфляция demand-pull inflation (syn. excess-demand inflation) – инфляция спроса to move upwards – возрастать cost-push inflation – инфляция издержек rate of inflation – уровень инфляции mild inflation – низкая, мягкая инфляция a persistent rise in prices – постоянный рост цен hyperinflation (run-away inflation, galloping) – гиперинфляция creeping inflation – ползучая инфляция an upward movement of prices – рост цен to rise at a phenomenal rate – расти с феноменальной скоростью to contain inflation – сдерживать инфляцию to experience inflation – испытывать инфляцию to lose value – терять стоимость to inflate – вызывать инфляцию fixed prices – фиксированные цены inflated prices – непомерно высокие цены to exceed – превышать inflationary – инфляционный excess purchasing power – избыточная покупательная способность inflationary spiral – инфляционная спираль

career – карьера promotion – продвижение (по службе) post/position – должность challenging position – должность, требующая большой отдачи (своеобразный вызов, трудности, испытания) opening – вакансия search for – искать pursue "help wanted" ads (in newspapers) – регулярно просматривать объявления о найме на работу (в газетах) to apply for (a job) – подавать документы to fill the position – занять должность curriculum vitae – биография rèsumè – резюме accept rèsumè – принимать / брать резюме give / submit rèsumè – предоставлять / давать резюме hand over rèsumè – передавать резюме reject / refuse rèsumè – отказывать / отвергать резюме letter of application – сопроводительное письмо a covering letter, a cover letter references available upon request – рекомендации предоставят по требованию inquire about – спрашивать / наводить справки samples – образцы supporting documents – подтверждающие документы

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relevant skills – подходящие навыки irrelevant – неподходящий (не относящийся к делу) specifics – конкретные детали, примеры (не общего плана) experience – опыт strength – сильная сторона weakness – слабая сторона shortcoming – недостаток creative – творческий to work under pressure – работать в тяжелых условиях (в напряжении) to get along with people – ладить с людьми collective thinker – умеющий думать “коллективно” to have a degree in (Accounting, BA) – иметь степень to have a good command of (English) – хорошо владеть interview – собеседование request an interview – просить назначить собеседование be granted an interview – получить приглашение на собеседование work for (name of company) work in (place, area) to be in charge of / to be responsible for responsibilities – обязанности to deal with – иметь дело с, работать с to do/work overtime – работать сверхурочно to work shift-work – скользящий график (по четным или по суткам и т.д.) to be on flexi-time – гибкий, свободный график to work nine-to-five – жесткий, фиксированный рабочий день human resources/staff/personnel – штат, персонал, работники to hire – нанимать to employ to engage – устраивать to recruit – вербовать, нанимать, давать работу recruit – новичок personal – личный personnel – персонал shortlist of candidates (applicants) – конечный список кандидатов

applicant – кандидат requirements – требования criterion – criteria (критерий) qualities – characteristics (черты) appointment – назначение hierarchy – иерархия executive – руководитель subordinate – подчиненный skilled (unskilled) worker – квалифицированный (неквалифицированный) рабочий to sack – уволить (выбросить с работы) to get the sack to be fired – быть уволенным to be dismissed to be made redundant – быть уволенным по сокращению штатов to be laid off

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TOPIC 5. TYPES OF BUSINESS. joint stock company – акционерная компания liability (n.) – ответственность loss (n.) – убыток, потеря maintenance (n.) – эксплуатация ownership (n.) – собственность partnership (n.) – товарищество posses (v.) – обладать profit (n.) – доход refer to (v.) – относиться, ссылаться repair (n.) – ремонт responsible (adj.) – ответственный restrict (v.) – ограничивать retail (adj.) – розничный seize (v.) – захватывать sole proprietor – единоличный собственник since (prep.) – поскольку; с strength (n.) – сильная сторона, сила success (n.) – успех value (n.) – способность

TOPIC 6. FRANCHISING

competitive – конкурирующий; конкурентоспособный to compete – конкурировать

franchising – франшизинг, фрэнчайзинг; выдача компанией лицензии (франшизы) на продажу товара под маркой компании franchiser (franchisor) – хозяин (владелец) торговой привилегии franchisee – получатель (держатель) торговой привилегии franchise – 1) франшиза (право сбыта товара на льготных условиях); 2) предприятие format (franchise system) – формат franchise agreement / contract – соглашение о предоставлении права сбыта на льготных условиях franchise fee – первоначальный взнос royalty fee – плата за право пользования патентом marketing fee – плата за услуги маркетинга parent company (mother company) – материнская (головная) компания operations manual (company manual) – устав, руководство entrepreneur – предприниматель advisory council – орган, предоставляющий информационную поддержку brand – торговая марка to expand – расширяться, увеличиваться to specialise in – специализироваться в outlet (store) – торговая точка food joint – заведение питания to run – управлять to own – владеть owner – владелец support – помощь, поддержка self-starter – инициативный человек premises – помещение, здание (с прилегающими постройками) proven system – проверенная, надежная система supplier – поставщик operator – владелец предприятия service sector – сектор услуг competition – конкуренция, соперничество

shareholder – акционер management – руководство workforce staff штат сотрудников employees Board of Directors – совет директоров Chairperson – председатель / President – президент Managing Director (Chief Executive Officer) – генеральный директор administration – администрация company strategy – стратегия компании Senior Management (Company Officers) – высшее руководство (высший менеджмент) Middle Management – средний уровень руководства (средний менеджмент) Marketing маркетинга Finance финансовый Public Relations по связям с общественностью Production department – производства – отдел Personnel (Human кадров Resources) Research and Development исследований и развития сбыта (продаж) Sales продажи department – отдел, подразделение sector – сектор division – подразделение hierarchy – иерархия organization chart – схема организационной структуры

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TOPIC 7. COMPANY STRUCTURE

TOPIC 9. MARKETING

Headquarters (Central/Head Office) – штаб-квартира, центральный офис subsidiary (local company) – дочерняя компания, филиал authority – власть, полномочия accountability – ответственность, подотчетность lines of accountability (lines of authority) – иерархические связи superior – начальник to supervise – заведовать, руководить deputy – заместитель to report to smb. – отчитываться перед кем-л. to work under smb. – работать под чьим-л. руководством team – команда to be in charge of – отвечать за to be responsible for – быть ответственным за что-л. responsibility – ответственность

distribution – распределение marketing mix – сочетание разработки, продвижение товара, ценообразование и упаковка. advertising, advertisement – реклама target audience/market – целевой рынок endorsement – рекламирование товара с привлечением знаменитостей commercial – рекламный ролик slogan – слоган, лозунг to promote – подвигать (товар) profit – прибыль sales – распродажа to consume – потреблять consumption – потребление celebrity – знаменитость

TOPIC 8. MANAGEMENT

TOPIC 13. BANKING

authority – власть, полномочия superior – начальник subordinate – подчиненный to delegate – делегировать (власть) to hire – нанимать responsibility – ответственность to share – разделять team (of employees) to run – управлять incentive – стимул measure – измерять, мера accomplish – сделать, завершить, достичь prioritize – расставлять приоритеты to set goals – поставить цель to prioritize – расставлять приоритеты approach – подход, подходить available resource – имеющиеся в распоряжении ресурсы to estimate – оценивать to evaluate – оценивать 97

Central Bank – центральный банк Trustee Savings Bank – доверительный сберегательный банк clearing bank – клиринговый банк commercial bank – коммерческий банк a financial intermediary – финансовый посредник to deposit (with) – хранить, вкладывать depositor – вкладчик a deposit – вклад, депозит to issue deposits – открывать вклады to run down a deposit – уменьшать вклад sight deposit – депозит до востребования, бессрочный вклад time deposit – срочный вклад to withdraw – отзывать (вклад) to credit – кредитовать to debit – дебетовать to lend – давать взаймы lending – кредитование to borrow – брать взаймы to transfer – переводить, передавать 98

to fail, to go bankrupt, to go bust – обанкротиться interest – процент interest rate – процентная ставка bank accounts – банковский счет a cheque accounts – текущий (чековый) счет a cheque – чек to write (to draw, to issue, to make out) a cheque – выписать чек loan – ссуда, заем a bank loan – банковская ссуда, заем initial loan – первоначальная ссуда market loans – рыночные займы a transaction – сделка assets – активы interest-earning assets – активы, приносящие процентный доход cash assets – денежные активы liquid (illiquid) assets – ликвидные активы liabilities – пассивы reserves – резервы reserve ratio – резервная норма liquidity – ликвидность securities – ценные бумаги government bonds – государственные облигации shares – акции bill – вексель advances – ссуда в виде аванса certificates of deposit – депозитные сертификаты debt – долг the stock exchange – фондовая биржа banking retail banking – операции банков с широкой клиентурой wholesale banking – операции банков с крупными промышленными предприятиями banking business – банковское дело; банковские операции banking services – банковские операции syn. bank services 99

banking facilities – банковские услуги (операции) deposit banking – депозитные операции банков banking institution – учреждение банковского типа syn. financial institution – кредитно-финансовое учреждение depository (thrift, savings) institution – депозитное учреждение lending institution – кредитное учреждение ant. institutional investor – институциональный инвестор, небанковское кредитное учреждение service full service – полный комплекс обслуживания syn. large service menu – широкий выбор услуг syn. mix of services – ассортимент (номенклатура) услуг service fee – вознаграждение за услуги large (small) scale services – услуги, предоставляемые банком крупным фирмам (мелким фирмам и населению) personal services – услуги частным лицам commercial services – услуги фирмам trust services – трастовые услуги, доверительные услуги cash management services – услуги по контролю и регулированию денежных операций (в банке, фирме) investment services – услуги по управлению инвестициями agency services – посреднические (агентские) услуги insurance services – страховые услуги real estate services – услуги по управлению недвижимостью по доверенности indent(ure) under indenture – по контракту covenant – договор (за печатью); отдельная статья договора to agree to a covenant – прийти к соглашению по всем обязательствам, вытекающим из договора to adhere to a covenant – придерживаться договоренностей trust trust agreement – договор об учреждении траста (обычно письменный) 100

trust indenture – контракт между держателем акций и компанией их выпускающей trust deed – доверенность на управление собственностью trust operations – доверительные услуги (операции), трастовые услуги (операции) trust division (department) – трастовое управление, трастотдел trustor – лицо, учредившее траст; доверитель trustee – доверенное лицо, опекун; учреждение, распоряжающееся имуществом в пользу другого лица trustee under indenture – доверенное лицо по облигационному займу to act as a trustee – действовать в качестве доверенного лица to appoint (to designate) a trustee – назначить доверенное лицо estate syn. assets – имущество, активы trust estate – имущество, управляемое по доверенности estate settlement – установление доверительной собственности на имущество, распоряжение всем имуществом клиента realty realty company – компания, занимающаяся операциями с недвижимым имуществом syn. real estate company real estate – недвижимое имущество real estate brokerage – брокерские операции с недвижимостью administer to administer an estate – распоряжаться (управлять) имуществом syn. to manage an estate trust administration – распоряжение (управление) собственностью на доверительной основе trust administrator – опекун fiduciary (n); (atr.) 101

fiduciary relationship – имущественные отношения доверительного характера to act as a fiduciary – действовать в качестве доверенного лица (трастагента) mortgage mortgage loan – ссуда под недвижимость syn. real estate loan real estate mortgage – закладная под недвижимость to borrow on mortgage – получать ссуду под залог недвижимого имущества to redeem a mortgage – выкупать закладную to mortgage property – закладывать имущество letter of credit to issue a letter of credit – открыть аккредитив syn. to open a letter of credit terms of a letter of credit – условия аккредитива pay off to pay off smb – рассчитаться с кем-либо to pay off bonds – погасить облигации syn. to retire a bond at maturity – погашать облигацию по наступлении срока TOPIC 14. MARKET PLACE to raise money (to raise cash) – доставать деньги equities (ordinary shares, equity shares, ordinary stocks) – обыкновенные акции to become a shareholder – стать акционером to issue shares (or parts of a company’s capital); to issue bonds – выпускать акции; выпускать облигации to buy or sell securities – покупать или продавать ценные бумаги to have a stake in a company (to own a part of a company) – иметь долю в компании government bonds – правительственные облигации 102

government stocks or gilt-edged securities – первоклассные (особо надежные) ценные бумаги (досл. с золотым обрезом) capital outlay – капиталовложения fixed-interest securities – фиксированная процентная ставка share prices, share index – цены на акции, индекс акций to stand at – оставаться to remain constant – оставаться неизменным to change – изменяться to fall/to decrease – снижаться, падать to rise/increase by – увеличиваться на to fluctuate from day to day колебаться (быть неустойчивым) to receive a dividend of… – получать дивиденды в размере brokers (stock brokers) dealers – брокеры, дилеры to act on behalf of the clients – действовать от имени клиентов to act on one’s own account (behalf) – действовать самостоятельно to pay a dividend from the profit (the company earns) – приносить дивиденд с прибыли (доходов) компании a marketmaker – “делатель рынка”; брокерская фирма, постоянно котирующая ценные бумаги a middleman/ an intermediary – посредник to tie up (to invest, to put up the money) – вкладывать капитал a primary/ a secondary market – первичный/вторичный рынки to sell to the general public – продавать общественности Stock Exchange Automated Quotations (SEAQ) – автоматизированная система котировки цен individuals/corporate members – частные/корпоративные члены to acquire shares in the company – приобретать акции (долю) компании to acquire a stake in the company to quote a price – устанавливать, назначать цену stockmarket turnover – оборот на фондовой бирже a portfolio of securities – портфель ценных бумаг to redeem the stock – погашать ценные бумаги inredeemable stock – непогашаемые ценные бумаги 103

Учебное издание

Составители: Наталья Арнольдовна Коровина, Ирина Алексеевна Сиволапова, Ольга Константиновна Сургутская Под редакцией Светланы Борисовны Невежиной

Учебно-методическое пособие по обучению профессиональному общению (для студентов экономических специальностей, изучающих английский язык)

Технический редактор Н.В. Москвичёва Редактор Е.В. Коськина Подписано в печать 06.12.04. Формат бумаги 60х84 1/16. Печ. л. 6,5. Уч.-изд. л. 6,5. Тираж 200 экз. Заказ 610. Издательство Омского государственного университета 644077, г. Омск-77, пр. Мира, 55а, госуниверситет

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