B. Understanding details. Mark these statements T (true) or F (false) according to the information in the text.

1. An individual enterprise is founded at the expense of some persons’ capital.

2. An individual enterprise differs from other enterprises.

3. An individual enterprise is to be registered.

4. The owner of an individual enterprise has to sell his possessions if the company goes into debt.

5. The owner of an individual enterprise has difficulties with attraction of the capital.

6. To found a partnership it is necessary to conclude an “agreement on foundation”.

7. Each partner is not responsible for actions of another partner.

8. Limited partners do not have the right to manage the company.

9. Partnership has certain advantages in taxation.

10. Shareholders of corporation are not liable for the company debts.

Vocabulary tasks

A. Match the adjectives in column A to the nouns in column B:

B. Complete these sentences with a preposition from the box:

1. Financial co-operatives provide financial services _________ the shareholders.

2. Co-operatives specialize _________ providing services in the social sphere.

3. All the property is _________ the disposal and management of shareholders.

4. In the modern stage of the development an economic activity exceeds the bounds _________ one state.

5. Such an activity may be carried out through the foundation of companies and ________ it.

6. The branches carry out their activities on the basis of the provision approved _________ the parent company.

7. We speak _________ the sale of shareholders’ goods and services in the common market.

8. The majority of the company’s directors should carry out business_________ the territory of Canada.

Work in pairs

Which of the following advantages and disadvantages would you associate with (a) an individual enterprise, (b) a partnership, and (c) a corporation?

A. Advantages

1. You have total control of your business.

2. A good way of sharing the pressure and work involved in starting a business.

3. A fixed authorized capital divided into certain parts (shares).

4. Minimum of starting capital

B. Disadvantages

1. There is a danger that conflicts of personality could ruin your business.

2. It may be difficult to expand.

3. You may have to sell your possessions if the company goes into debt.

4. It has no right to a public issue of securities.

5. Difficulties with the attraction of additional financing.

6. The most expensive form of an enterprise.

Unit 12

Policies

In the administration of business one of the most important tasks is to formulate policy; the work of planning and the determination of company objectives become effective when expressed in policy form.

A policy is a guide to the action or decisions of people. Policies are directives, issued from a higher authority, and provide a continuous framework for the conduct of individuals in a business – they are in effect a type of planning. Policies are expressions of a company’s official attitude towards types of behaviour within which it will permit, or desire, employees to act. They express the means by which the company’s agreed objectives are to be achieved and usually take the form of statements, telling members how they should act in specific circumstances. Policies reflect management thinking on basic matters and inform those interested in the activities of the company about the company’s intentions regarding them.

Date: 2016-04-22; view: 984