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3. Think over and say what form of business organization you would like to be engaged in and why.
4. Read and act out the dialogue.
Jim: Hi, Alice. How are you getting on?
Alice: Fine, as usual, thanks, Jim. What about you?
Jim: I’m OK. It’s nice to see you.
Alice: You too. I’m glad you are not in a hurry and we have time to talk today.
Alice: Can you give me a piece of advice?
Jim: Well, I’ll try if I can.
Alice: You know I’ve been always good at cooking. It interests me. I am thinking of starting my own business – a café.
Jim: It might be a good idea.
Alice: I guess I must learn about the responsibilities of going into business.
Jim: Are you going into this business by yourself?
Alice: Exactly. I’d like to have a café with my name on it where I make the decisions and where I control the profits.
Jim: You seem to be resolute so I’ll try to help you. If you go into business alone, it is called sole proprietorship. In such case you needn’t consult a lawyer to form the business. You can start or you can stop your business whenever you like.
Alice: It sounds encouraging. What else can you tell me?
Jim: There is no need to consult partners or a board of directors. So you can put your policies into effect quickly. You decide on your vacation, hours, salary, hiring and firing.
Alice: Well, that’s not bad.
Jim: Wait a moment. I believe I have to tell you about the risk involved.
Alice: What do you mean?
Jim: First of all, the most important risk is that you have unlimited liability. It means that you are responsible for all your business debts.
Alice: So, if the business fails, I have to declare personal bankruptcy, don’t I?
Jim: That’s what I mean. You can lose your personal assets.
Alice: Well, it’s rather disappointing. What other things should I know?
Jim: You won’t get tax benefits which partners or corporations get.
Alice: I know about it. By the way do you know of a good accountant to do my taxes?
Jim: Of course. You’ll also have to hire a good book-keeper if you can’t do your books yourself.
Alice: I can’t say anything definite about that. I have to think it over. What else, Jim?
Jim: Well, I am a bit hungry, why don’t we have a snack together and discuss the things in the café.
Alice: You are right as usual.
5. Make up a similar dialogue about other forms of business organization.
6. Do you know that each company has its structure? What departments does a company have? Unjumble the letters in brackets to give the names of departments in a company.
1. This department sells the products. (elass). sales
2. If there is a serious problem with late payments,
this department deals with it. (laleg)
3. This department sends all the bills, (toncacus)
4. This department makes the products, (nodurpocit)
5. This department deals with suppliers, (haspcurgin)
6. Employees are the first priority in this department.
7. Read the text. Are the statements below true or false? Mark them T or F.
When most people hear the word Guinness, they think of the Irish beer of the same name, but in fact the Guinness company is now a multinational with a vast network of joint venture companies, distributors and subsidiaries, and an annual turnover of more than £4 billion. Its products are sold in over 200 countries worldwide.
Guinness operates mainly in the alcoholic drinks market. Its brands include a number of famous names like Johnnie Walker, Bell's Scotch whisky, and Gordon's gin. It owns United Distillers, the most profitable spirits company in the world. It also has a 34% stake in Moet Hennessy, the French champagne and cognac company, whose owner, LVMH, has a 20% share in Guinness. About three quarters of Guinness group's profits come from spirits. Guinness beer (called 'stout') is produced in more than 50 countries, and sold in 150. For the moment, the beer company represents only 25% of the group's profits.
Apart from alcohol production, the company owns Gleneagles, the world-famous golf hotel in Scotland, and runs a division which publishes The Guinness Book of Records.
Guinness PLC is based in central London. The company has offices in over 50 countries around the world, with 23,000 employees. Tony Greener is the chairman of a Board which is made up of 6 executive and 6 non-executive directors.
* * *
a About 75% of Guinness' profits are from spirits.
b Guinness doesn't only operate in the drinks market.
с United Distillers is a shareholder of Guinness.
d Guinness owns LVMH.
e Guinness beer is made in more than 100 countries.
f The company produces The Guinness Book of Records at Gleneagles.
8. Find words or phrases in the text which mean:
a a company with subsidiaries in a number of countries
b value of sales in a year
с all over the world
d strong alcoholic drinks such as gin or whisky
e a minority share in a company
f controls / manages
g consists of
h the group of people who are responsible for company decisions
i not full-time and not responsible for day-to-day decisions
9. For each question, choose a pair of words from the list to complete the spaces in the two sentences. Decide which of the two words you need for each space. The first is done for you as an example.
salesman/retailer consists/divided accountant/accounts
sells/buys produce/products share/subsidiary
1 There are 300 machine operators in our factory.
The company manufactures children's toys.
2 The Purchasing department...... products.
Guinness......... its beer all over Europe.
3 The......... of staff in our company is the responsibility of
the Human Resources department.
Schools are responsible for children's.......
4 We......... 300 units per hour in our factory.
Bell's Whisky is one of our most profitable.....
5 We can't give you exact sales figures now because our. is on
The tax inspector came last month to look at our......
6 ICL is a........ of the Japanese Fujitsu company.
LVMH has a large........ of the perfume market.
7 A......... has a shop which sells directly to the public.
A.......... is a person who sells to shops or companies.
8 Our electronics division is...... into a number of
The company......... of five operating divisions.