Методическое пособие 607

VI. a) Answer the following questions:

1.What is the text about?

2.Speak about the main types of organizations.

3.What can you say about the organizational structure?

4.Speak about a matrix organization.

5.Speak about pyramids or a hierarchy.

b) Ask your questions about the matter. Using the following phrases make dialogues / polylogs on the topic:

- Showing Understanding:

I see.

I understand.

I get it. / I got it.

VII. Speak about the legal types of organizations.

VIII. Read and translate text A and sum it up:

A) FORMAL ORGANIZATIONS

An organization that is established as a means for achieving defined objectives has been referred to as a formal organization. Its design specifies how goals are subdivided and reflected in subdivisions of the organization. Divisions, departments, sections, positions, jobs, and tasks make up this work structure. Thus, the formal organization is expected to behave impersonally in regard to relationships with clients or with its members. According to Weber's definition, entry and subsequent advancement is by merit or seniority. Each employee receives a salary and enjoys a degree of tenure that safeguards him from the arbitrary influence of superiors or of powerful clients. The higher his position in the hierarchy, the greater his presumed expertise in adjudicating problems that may arise in the course of the work carried out at lower levels of the organization. It is this bureaucratic structure that forms the basis for the appointment of heads or chiefs of administrative subdivisions in the organization and endows them with the authority attached to their position.

IX. Read and translate text B and sum it up:

B) INFORMAL ORGANIZATIONS

In contrast to the appointed head or chief of an administrative unit, a leader emerges within the context of the informal organization that underlies the formal structure. The informal organization expresses the personal objectives and goals of the individual membership. Their objectives and goals may or may not coincide with those of the formal organization. The informal organization represents an extension of the social structures that generally characterize human life – the spontaneous emergence of groups and organizations as ends in themselves.

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In prehistoric times, man was preoccupied with his personal security, maintenance, protection, and survival. Now man spends a major portion of his waking hours working for organizations. His need to identify with a community that provides security, protection, maintenance, and a feeling of belonging continues unchanged from prehistoric times. This need is met by the informal organization and its emergent, or unofficial, leaders.

Leaders emerge from within the structure of the informal organization. Their personal qualities, the demands of the situation, or a combination of these and other factors attract followers who accept their leadership within one or several overlay structures. Instead of the authority of position held by an appointed head or chief, the emergent leader wields influence or power. Influence is the ability of a person to gain cooperation from others by means of persuasion or control over rewards. Power is a stronger form of influence because it reflects a person's ability to enforce action through the control of a means of punishment.

X. Using supplementary information from Internet give the presentation on the topic.

3. ORGANIZATION AND GOVERNMENT REGULATION

Most legal jurisdictions specify the forms of ownership that a business can take, creating a body of commercial law for each type.

The major factors affecting how a business is organized are usually:

The size and scope of the business firm and its structure, management, and ownership, broadly analyzed in the theory of the firm. Generally a smaller business is more flexible, while larger businesses, or those with wider ownership or more formal structures, will usually tend to be organized as corporations or (less often) partnerships. In addition, a business that wishes to raise money on a stock

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market or to be owned by a wide range of people will often be required to adopt a specific legal form to do so.

The sector and country. Private profit-making businesses are different from government-owned bodies. In some countries, certain businesses are legally obliged to be organized in certain ways.

Limited Liability Companies (LLC), limited liability partnerships, and other specific types of business organization protect their owners or shareholders from business failure by doing business under a separate legal entity with certain legal protections. In contrast, unincorporated businesses or persons working on their own are usually not so protected.

Tax advantages. Different structures are treated differently in tax law, and may have advantages for this reason.

Disclosure and compliance requirements. Different business structures may be required to make less or more information public (or report it to relevant authorities), and may be bound to comply with different rules and regulations.

Many businesses are operated through a separate entity such as a corporation or a partnership (either formed with or without limited liability). Shareholders in a corporation, limited partners in a limited partnership, and members in a limited liability company are shielded from personal liability for the debts and obligations of the entity, which is legally treated as a separate "person". This means that unless there is misconduct, the owner's own possessions are strongly protected in law if the business does not succeed.

Where two or more individuals own a business together but have failed to organize a more specialized form of vehicle, they will be treated as a general partnership. The terms of a partnership are partly governed by a partnership agreement if one is created and partly by the law of the jurisdiction where the partnership is located. No paperwork or filing is necessary to create a partnership, and without an agreement, the relationships and legal rights of the partners will be entirely governed by the law of the jurisdiction where the partnership is located. A single person who owns and runs a business is commonly known as a sole proprietor, whether that person owns it directly or through a formally organized entity.

I. Put the correct prepositions:

1. Most legal jurisdictions specify the forms … ownership that a business can take, creating a body of commercial law … each type. 2. A business that wishes to raise money … a stock market will often be required to adopt a specific legal form to do so. 3. Private profit-making businesses are different … government-owned bodies. 4. … some countries, certain businesses are legally obliged to be organized … certain ways. 5. Different structures are treated differently … tax law and may have advantages … this reason.

II. Put the verbs into the correct form:

1. Many businesses (to operate) through a separate entity such as a corporation or a partnership. 2. Where two or more individuals (to own) a business together but

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(to fail) to organize a more specialized form of vehicle, they (to treat) as a general partnership. 3. The terms of a partnership partly (to govern) by a partnership agreement. 4. No paperwork or filing is necessary (to create) a partnership. 5. A single person who owns and runs a business commonly (to know) as a sole proprietor.

III. Find the Russian equivalents:

Юрисдикция; коммерческое право; теория фирмы; фондовый рынок; компания с ограниченной ответственностью (ООО); налоговые преимущества; личная ответственность; крах бизнеса; индивидуальный предприниматель; партнерство; запустить бизнес; субъект.

IV. Complete the sentences with the information from the text:

1.… the forms of ownership that a business can take, creating a body of commercial law for each type.

2.Private profit-making businesses are different from … .

3.… protect their owners or shareholders from business failure by doing business under a separate legal entity with certain legal protections.

4.Many businesses are operated through … .

5.The terms of a partnership are partly governed by … .

V.Complete the sentences with the expressions in the box:

1.He used to work on the factory floor. Yes, he really started out as a ... worker.

a. blue collar b. back to the c. bottlenecks d. bottom line e. blow-by-blow drawing board

2. There are many reasons why this should be a success. However, the ... is that it has been a big flop.

a. bottom line b. back to the c. bottlenecks d. blow-by-blow e. a bitter pill drawing board

3. Production has been unable to keep pace with demand. We are doing our best to eliminate the ... .

5. Don't leave out any details. I want a full ... account of what happened in the meeting.

a. blow-by-blow b. blew it c. black economy d. bombed e. went like a bomb

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VI. a) Answer the following questions:

1.What is the text about?

2.What are the major factors affecting how a business is organized?

3.What is the definition of a Limited Liability Company?

4.Speak about tax advantages.

5.What is a partnership?

b) Ask your questions about the matter. Using the following phrases make dialogues / polylogs on the topic:

- Expressing Lack of Understanding:

What do you mean? I'm not following you. I don't quite follow you.

I'm not sure I get what you mean.

VII. Speak about business organization and government regulation.

VIII. Read and translate text A and sum it up:

A) FACTORS TO CONSIDER IN OPERATING A BUSINESS

A few relevant factors to consider in deciding how to operate a business include:

1.General partners in a partnership (other than a limited liability partnership), plus anyone who personally owns and operates a business without creating a separate legal entity, are personally liable for the debts and obligations of the business.

2.Generally, corporations are required to pay tax just like "real" people. In some tax systems, this can give rise to so-called double taxation, because first the corporation pays tax on the profit, and then when the corporation distributes its profits to its owners, individuals have to include dividends in their income when they complete their personal tax returns, at which point a second layer of income tax is imposed.

3.In most countries, there are laws which treat small corporations differently from large ones. They may be exempt from certain legal filing requirements or labor laws, have simplified procedures in specialized areas, and have simplified, advantageous, or slightly different tax treatment.

4."Going public" through a process known as an initial public offering (IPO) means that part of the business will be owned by members of the public. This requires organization as a distinct entity, and compliance with a tighter set of laws and procedures. Most public entities are corporations that have sold shares, but increasingly there are also public LLCs that sell units (sometimes also called shares), and other more exotic entities as well, such as, for example, real estate investment trusts in the USA, and unit trusts in the UK. A general partnership cannot "go public."

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IX. Read and translate text B and sum it up:

B) THE FIVE ELEMENTS OF ADMINISTRATION

Within his theory, Fayol outlined five elements of management that depict the kinds of behaviors managers should engage in so that the goals and objectives of an organization are effectively met. The five elements of management are:

1.Planning: creating a plan of action for the future, determining the stages of the plan and the technology necessary to implement it. Deciding in advance what to do, how to do it, when to do it, and who should do it. It maps the path from where the organization is to where it wants to be. The planning function involves establishing goals and arranging them in a logical order. Administrators engage in both short-range and long-range planning.

2.Organizing: Once a plan of action is designed, managers need to provide everything necessary to carry it out; including raw materials, tools, capital and human resources. Identifying responsibilities, grouping them into departments or divisions, and specifying organizational relationships.

3.Command: Managers need to implement the plan. They must have an understanding of the strengths and weaknesses of their personnel. Leading people in a manner that achieves the goals of the organization requires proper allocation of resources and an effective support system. Directing requires exceptional interpersonal skills and the ability to motivate people. One of the crucial issues in directing is the correct balance between staff needs and production.

4.Coordination: High-level managers must work to "harmonize" all the activities to facilitate organizational success. Communication is the prime coordinating mechanism. Synchronizes the elements of the organization and must take into account delegation of authority and responsibility and span of control within units.

5.Control: The final element of management involves the comparison of the activities of the personnel to the plan of action, it is the evaluation component of management. Monitoring function that evaluates quality in all areas and detects potential or actual deviations from the organization's plan, ensuring high-quality performance and satisfactory results while maintaining an orderly and problem-free environment. Controlling includes information management, measurement of performance, and institution of corrective actions.

X. Using supplementary information from Internet give the presentation on the topic.

A company is an association or collection of individuals, whether natural persons, legal persons, or a mixture of both. Company members share a common purpose and unite in order to focus their various talents and organize their collectively available skills or resources to achieve specific, declared goals. Companies take various forms such as:

Voluntary associations which may nonprofit organization

A group of soldiers

Business entities with an aim of gaining a profit

Financial entities and banks

A company can be defined as an "artificial person", invisible, intangible, created by or under law, with a discrete legal entity, perpetual succession and a common seal. It is not affected by the death, insanity or insolvency of an individual member.

Types of business entity

A company limited by guarantee. Commonly used where companies are formed for non-commercial purposes, such as clubs or charities. The members guarantee the payment of certain (usually nominal) amounts if the company goes into insolvent liquidation, but otherwise they have no economic rights in relation to the company. A company limited by guarantee may be with or without having share capital.

A company limited by shares. The most common form of company used for business ventures. Specifically, a limited company is a "company in which the liability of each shareholder is limited to the amount individually invested" with corporations being "the most common example of a limited company." This type of company is common in England and many English-speaking countries. A company limited by shares may be a publicly traded company or a privately held company.

A company limited by guarantee with a share capital. A hybrid entity, usually used where the company is formed for non-commercial purposes, but the activities of the company are partly funded by investors who expect a return.

A limited-liability company. "A company—statutorily authorized in certain states—that is characterized by limited liability, management by members or managers, and limitations on ownership transfer", i.e., L.L.C. LLC structure has been called "hybrid" in that it "combines the characteristics of a corporation and of a partnership or sole proprietorship". Like a corporation it has limited liability for

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members of the company, and like a partnership it has "flow-through taxation to the members" and must be "dissolved upon the death or bankruptcy of a member".

An unlimited company with or without a share capital. A hybrid entity, a company where the liability of members or shareholders for the debts (if any) of the company are not limited. In this case the doctrine of veil of incorporation does not apply.

I. Make plural of the following nouns:

A star, a mountain, a tree, a shilling, a king, the waiter, the queen, a man, the man, a woman, the woman, an eye, a shelf, a box, the city, a boy, a goose, the watch, a mouse, a dress, a toy, the sheep, a tooth, a child, the ox, a deer, the life, a tomato.

II. Write sentences in Past Simple:

1. They (to play) football at the institute. 2. She (not / to write) emails. 3. My mother (not / to like) fish. 4. Ann (to have) any friends? 5. His brother (to work) in an office. 6. Elizabeth (to drink) coffee? 7. (to be) your brothers at

school? - Yes, they (to be). 8. Max (to be) an office-worker. 9. We (to be) late, sorry!

III. Complete the following sentences using the most appropriate forms of modals:

1.I … read for hours when I was at school. a) could b) am able to c) can

2.Tim … play football well but he … play last week because he was ill. a) couldn’t, could b) can, was able c) can, couldn’t

3.You … take an umbrella today. The Sun is shining.

a) needn’t b) mustn’t c) can’t

4.I’m sorry, you didn’t invite me to your birthday party. You … invite me next time. a) must b) should c) need to

5.We … play computer games so much.

a) would b) can’t c) shouldn’t

6. We have got plenty of time. We … hurry.

a)must

b)needn’t

c)should

IV. Find the Russian equivalents:

An association; natural persons; legal persons; talents; skills; resources; goals; voluntary associations; nonprofit organization; a group of soldiers; business entities; gaining a profit; financial entities; banks; legal entity; perpetual succession; common

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seal; share capital; a company limited by shares; a publicly traded company; a privately held company; a company limited by guarantee; a share capital; a hybrid entity; a limited-liability company; an unlimited company.

V.Complete the sentences with the following business expressions:

1.I'm very happy with our sales prospects for the next year. I'm feeling really ... .

a. bullish b. back to the c. broke the news d. on to a good thing e. brief drawing board

2. We would have liked to have looked at that but that wasn't part of the ... you set us.

4. I'm well aware that this is potentially a good new product and that we are probably

... with it.

5. I guess this market study shows that nobody wants to buy our product. It's ... for us.

VI. a) Answer the following questions:

1.What is the text about?

2.What is a company?

3.What are the basic forms of companies?

4.Speak about the types of business entity.

5.What can you say about different types of companies?

b) Ask your questions about the matter. Using the following phrases make dialogues / polylogs on the topic:

- Interrupting politely:

Can I add something here?

I don't mean to intrude, but . . .

Could I inject something here? Do you mind if I jump in here?

VII. Speak about the basic types of business entity.

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VIII. Read and translate text A and sum it up:

A) TYPES OF BUSINESS ENTITY

A business entity is a commercial, corporate and/or other institution that is formed and administered as per commercial law in order to engage in business activities, usually for the sale of a product or a service. There are many types of business entities defined in the legal systems of various countries. These include corporations, cooperatives, partnerships, sole traders, limited liability company and other specifically labelled types of entities. Some of these types are listed below, by country. For guidance, approximate equivalents in the company law of Englishspeaking countries are given in most cases, e.g.

≈public limited company (UK and Ireland)

≈Ltd. (UK and Ireland)

≈limited partnership, etc.

However, the regulations governing particular types of entity, even those described as roughly equivalent, differ from jurisdiction to jurisdiction.

When creating or restructuring a business, the legal responsibilities will depend on the type of business entity chosen.

IX. Read and translate text B and sum it up:

B) LESS COMMON TYPES OF COMPANIES

Less common types of companies are:

Companies formed by letters patent. Most corporations by letters patent are corporations sole and not companies as the term is commonly understood today.

Charter corporations. Before the passing of modern companies legislation, these were the only types of companies. Now they are relatively rare, except for very old companies that still survive (of which there are still many, particularly many British banks).

Statutory Companies. Relatively rare today, certain companies have been formed by a private statute passed in the relevant jurisdiction.

In legal parlance, the owners of a company are normally referred to as the "members". In a company limited or unlimited by shares (formed or incorporated with a share capital), this will be the shareholders. In a company limited by guarantee, this will be the guarantors. Some offshore jurisdictions have created special forms of offshore company in a bid to attract business for their jurisdictions. Examples include "segregated portfolio companies" and restricted purpose companies.

There are however, many, many sub-categories of types of company that can be formed in various jurisdictions in the world.

Companies are also sometimes distinguished for legal and regulatory purposes between public companies and private companies. Public companies are companies whose shares can be publicly traded, often (although not always) on a regulated stock

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