Insolvency is the condition … being unable to meet debts. A company is insolvent when it is unable to meet the demands … all its creditors … selling all its assets … cash. … such a situation, the creditors would apply … the business to be wound up, and ask … a liquidator to be appointed who could dispose … the assets and pay … the creditors where possible. The company would stop trading, and when the winding … is complete, cease to exist.
Notes:
to wind up – ліквідувати (компанію)
to cease – припиняти (ся)
(of (3), by, for (3), in, up, off)
Exercises in Comprehension
Ex.1. Answer the following questions:
1. What may happen to less successful companies?
2. When is a business considered to be in a state of insolvency?
3. Who are creditors?
4. When is the company declared bankrupt?
5. Who are receivers?
6. What happens to a company if it cannot be rescued?
7. What are liquidators appointed for?
8. Does the failing company have any option?
9. What should the company do if it is on the verge of bankruptcy?
10. What is voluntary liquidation?
Ex.2. Sum up what you remember about a bankruptcy procedure. Who can it be initiated by?
Grammar Revision
| Modal Verbs
A. Ability: can, could, be able to
1. Can and cannot/can’t are commonly used to talk about ability to do something in the present.
He can speak several foreign languages.
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| 2. To talk about someone’s general ability to do something in the past we use could and someone’s specific ability (to do something on one occasion) – was/were able to
I could read when I was five.
I was able to see personnel manager without an appointment.
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| 3. To talk about ability with perfect and future forms, the be able to structure is used.
Will you be able to send this fax?
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| B. Permission: can, could, may, be allowed to
1. a) Can and could are used to ask for permission in the present. May can be also used but is quite formal.
Could/ Can I call you back?
May I use your phone, please?
b) When talking about whether something is permitted or not we use can/ can’t and be (not) allowed to.
Passengers are not allowed to smoke during take-off.
You can leave your letter at the reception.
2. To talk about permission in the past we use could/ couldn’t and was/ were not allowed to.
We were not allowed to ask any questions.
3. When talking about permission with future and perfect forms be allowed to is used.
He will not be allowed to invest in this business.
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