1. What did you decide to do not long ago? 2. Were you experienced in business activities? 3. Whom did you decide to consult? 4. What did the lawyer recommend you to do? 5. What is it necessary for a would-be businessman to keep in mind? 6. What difficulties did you encounter when starting your business? 7. Why were you "on the seventh heaven" when you solved your money problem? 8. What words of your lawyer do you still remember?
IV. Translate the following sentences into English.
1. . 2. , . 3. . 4. (real estate). 5. . 6. . . 7. . 8. . 9. . 10. (to get on with smb. well) . 11. (accounting).
Text 2
Doing business together with a partner
Before starting your business there are a number of decisions you will have to make. For example, who should you buy your supplies from? What premises will you work from? How much control do you want to keep in the business? This last question depends on whether you decide to work as a sole trader, a partnership or a limited company.
It's common knowledge that doing business has become very popular everywhere. At present it is a comparatively new and perspective tendency in modern life. So, not long ago I made up my mind to go into business. Following my lawyer's advice I chose small business in the field of services. It goes without saying that I weighed all pros and cons before making a decision. I understand that production of goods is very profitable, but provision of services is profitable too. After all, people do business for a profit.
At first I wanted to be a sole trader, but then I changed my mind and organised a partnership. I went into business with my friend Jane. She has a solid background in accounting, she is good at keeping the books and ordering stock. As for me, I enjoy selling and like talking to customers.
So far our business is going pretty well, and the shop is beginning to attract more customers. I won't be boasting if I say that we begin to make a good profit. By the way, we have a certain arrangement for distribution of profits and losses. They are equally shared. I hope to be in business for a long time. I've really become quite knowledgeable about business.
Vocabulary
to depend on
supplies
premises ; ;
to make up one's mind
to change one's mind
accounting
to keep the books
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stock .
so far ; ;
to boast
by the way ,
arrangement for distribution of profits and losses
to be in business for a long time
Answer the following questions.
1. Have you ever done business? If so, what business did you run? 2. If you were to choose business, which type would you prefer? 3. If you were to choose business, would you take up production of goods or provision of services? 4. Which type of business do you consider more profitable? 5. Which type of business do you consider to be organisationally easy? 6. Why do you think business has become very popular nowadays? (economic reasons, new tendencies in political and social development, etc.)
UNIT 3
Text 1
Many new businesses fail. Why?
There are several reasons why many new businesses fail. First of all there has been general recession. Then there's the question of labour relations. What is officially called "industrial action", which actually means strikes, contributed to the rapid disappearance of many little enterprises. But it is more than likely that what really accounts for most of the failures is simply bad management.
Let's look at some of the ways in which a business may be badly managed. First, many new businesses are undercapitalised, that is there isn't enough money available to them to give them a real chance to succeed. Those enterprises which are undercapitalised are sure to be in trouble. Therefore, never attempt to start a new venture if you haven't got enough capital.
Second, many new businesses fail because they are in the wrong place or their premises are unsuitable; they operate inefficiently, because they haven't got enough room or appropriate facilities. So, don't hurry to settle on premises which turn out to be unsuitable.
Third, some ambitious new businesses spend too much of their capital on presenting a glossy image, expensive office furniture and fittings which dont contribute anything to meeting the expenses.
Fourth, far too many businesses fail because their managers dont carry out the necessary research of the market to make sure that their product is in demand and needed by the people. Therefore, always research the market before you decide to enter it.
There are a lot of other factors to be taken into account: installing the right equipment, hiring a suitable workforce, ensuring a supply of raw materials on term you can afford; controlling production, keeping a close check on prices and customer credit. Briefly speaking, plan every step of the way before you start your business. Weigh all pros and cons. Never make haste while making a decision. Remember: haste makes waste.
Vocabulary
to fail in business
recession , ; ,
industrial action
strike ,
to contribute to the rapid disappearance of many little enterprises
to account for
failure , ,
to be undercapitalized
available ; ,
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to be in trouble ,
therefore ,
to attempt , ,
to succeed in business
facilities ; (, ..)
office furniture
fittings ;
to meet expenses
to carry out the research of the market ,
to be in demand
to take into account ,
to install the right equipment
to hire a suitable workforce
to ensure a supply of raw materials
to make haste ,
haste makes waste
I. Give Russian equivalents to the following word combinations:
recession; strike; failure; available; to give a real chance to succeed; to be in trouble; to attempt to start a new venture; facilities; expensive office furniture; fittings; to meet expenses; to carry out the research of the market; to take into account; to keep a close check on prices and customer credit; to make haste.
II. Give English equivalents to the following word combinations:
; ; ; ; ; ; ; ; .
Text 2
Bankruptcy
If your business is going badly, you don't make enough money and build up many debts which you cant pay off, it's the first indication (sign) that you should take urgent steps to improve your financial position, otherwise you'll go bust and your business will go into liquidation. The latter may be voluntary or compulsory. If it is voluntary, the directors promise to pay all debts within a certain period of time. Compulsory liquidation occurs when an unpaid creditor applies to the courts.
It's common knowledge that the director of the company which has run bankrupt must make a full statement of the company's affairs, listing its assets and liabilities, and giving reasons why it is in debt. The company must also stop trading. Directors of large companies sometimes give press-conferences to explain the situation to the shareholders. They can also give a televised talk on the matter.
One of the biggest bankruptcy cases was that of William Rainbow in the U.S. in 1950s. His company dealt with buying, developing and selling property. The company was doing very well until mid-50s when the price of property fell sharply, and his company suffered enormous financial losses. Little by little Mr. Rainbow's debts amounted to a huge sum which he failed to pay off however hard he tried.
All bankers and other influential people with whom Mr. Rainbow was once on friendly terms refused to stretch a helping hand to him. William was in despair. Even his best friends turned their backs to him. At last the most dramatic time came when his creditors decided to bring an action against him (to sue him).
The court agreed that Mr. Rainbow could be discharged in 3 months' time if he paid half the sum of his debt. But William failed to do so, and soon was imprisoned. While in prison his nervous strain was so great that once in the morning he was found dead in his cell. "Committing suicide", was the conclusion of the prison's doctor. That was the end of once prospering business and its unlucky director.
Vocabulary
to take urgent steps (measures)
otherwise ,
to go bust ,
to go into liquidation
voluntary
compulsory
to apply to the court [ko:t] ,
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to run bankrupt
to make a statement
to list assets and liabilities
property ;
until mid-50s 50-
to suffer losses
to amount to a huge sum
to stretch a helping hand
to be in despair
to bring an action against
to discharge ( ; )
to be imprisoned
nervous strain
cell
to commit suicide
I. Give Russian equivalents to the following word combinations:
to go into liquidation; to pay all debts; to apply to the court; to run bankrupt; to make a full statement of the company's affairs; to be in despair; to discharge; to be imprisoned; cell; to commit suicide.
II. Give English equivalents to the following word combinations:
; ; ; ; ; ; ; ; .
