UNIT 9 “The Small Business”
Many of the larger businesses in the UK are public limited companies which means that the
public is able to buy and sell their shares on the Stock Exchange. Such companies have the letters plc
after their name. However, since the minimum share capital for a public limited company is £50,000,
this makes it an unsuitable choice for small businesses.
Setting up a business requires more than natural resources, labour, and capital. An
entrepreneur must organize these resources. Many entrepreneurs start their own business as sole
proprietorships. A sole proprietorship is a one-owner business. The advantages of sole
proprietorships (they are easy to organize, decisions can be made quickly, owners receive all
profits, etc.) explain why so many people start businesses and try to run them alone. However, a
sole proprietor sometimes encounters difficult problems in starting a business. One person has
limited resources to start and operate a business. The owner has only personal savings and funds that
can be borrowed. Because capital is lacking, most sole proprietors begin small and fail. Even those
that succeed often stay small.
A sole proprietor also must deal with the problem of unlimited liability. According to the law,
the owner and the business are one and the same. If the business fails, the owner, must pay the debts.
The personal property of the owner, such as a home or a car, can be taken to pay the debts of the
business. No limit is placed on the amount the owner can lose. High profits can make an owner
wealthy, but high losses can ruin an individual.
Still another problem occurs because of the limited life of the business. If the owner of a sole
proprietorship dies, an entirely new enterprise must be started. Of all new proprietorships begun
each year, 70 per cent fail within five years. To increase their chances of success entrepreneurs
often choose partnership instead of sole proprietorship. A partnership is an association of two or
more people in order to run a business. Partners generally contribute equal capital, have equal
authority in management, and share profits or losses. In many countries, lawyers, doctors and
accountants are not allowed to form companies, but only partnerships with unlimited liability for debts
— which should make them act responsibly. A partnership has many of the characteristics of the sole
proprietorship. Partnerships are easy to organize, decisions can be made quickly, profits are shared
with only a few people, and the owners are responsible for success or failure of the business.
Like proprietorships, partnerships are not free of problems. Liability is still unlimited. Like
sole proprietors, partners are responsible for the debts of the business. Liability then can actually be
greater in a partnership than in a sole proprietorship, since each partner is responsible for all the
business debts. Partnerships also have limited life. If one partner dies, the business must be dissolved.
Within a free market system, new businesses find easy access to the economy and opportunities
to succeed. Nevertheless, the level of competition can be so high that success is very difficult. A
partnership is not a legal entity separate from its owners; like sole traders, partners have unlimited li-
ability: in the case of bankruptcy, a partner with a personal fortune can lose it all. Consequently, the
majority of businesses are limited companies (US -corporations), in which investors are only liable for
the amount of capital they have invested. If a limited company goes bankrupt, its assets do not cover
the debts, they remain unpaid (i.e. creditors do not get their money back).
In Britain most smaller enterprises are private limited companies which cannot offer shares to
the public; their owners can only raise capital from friends or from banks and other venture capital
institutions. A successful, growing British business can apply to the Stock Exchange to become a
public limited company; if accepted, it can publish a prospectus and offer its shares for sale on the
open stock market. In America, there is no legal distinction between private and public limited
corporations, but the equivalent of a public limited company as one registered by the Securities and
Founders of companies have to write a Memorandum of Association (in the US, a Certificate
of Incorporation), which states the company's name, purpose, registered office or premises and
authorised share capital. Founders also write Articles of Association (US = Bylaws), which set out the
rights and duties of directors and different classes of shareholders. Companies' memoranda and
articles of association, and annual financial statements are sent to the registrar of companies, where
they may be inspected by the public.
1 Translate into Russian
- public limited company
- sole proprietorship
- limited liability
- free market
- legal entity
- venture capital institutions
- to offer shares for sale on the open stock market
- a Memorandum of Associatiion
- Articles of Association
- the Stock Exchange
- share capital
- unlimited liability
- personal property
- to contribute equal capital
- to have equal authority
- to be liable for the amount of capital one has invested
- to go bankrupt
- private limited company
- to offer shares to public
- to raise capital
- a prospectus
- authorised share capital
- to set out the rights and duties of smb
3 Complete the sentences using the text
1. Shares of public limited companies can …
2. Many entrepreneurs start their business as …
3. If the business of a sole proprietor fails…
4. If a sole proprietor dies…
5. In many countries doctors, lawyers, and accountants are allowed …
6. Being partners means …
7. The life of a partnership is limited because …
8. Despite a high level of competition, it’s easier for new businesses …
9. In limited companies investors …
10. The owners of private limited companies can raise money from …
11. Companies’ Memoranda and Articles of Association are sent to…
4. Match the words with their definitions.
1. entrepreneur a. an organisation operating to make profit
1. set up b. a firm where shareholders’ liability is limited.
2. partnership c. the buildings or land owned by an individual or organisation
3. premises d. a company whose shares are publicly available
4. capital e. the buildings where a company is located
5. company f. the state of being legally responsible for smth
6. enterprise g. a person who starts his or her own business
7. property h. two or more people working together for profit, without limited
8. limited company i. a company whose shares are not publicly available
9. private company j. the money required to start or expand a business
10. public company k. a new commercial activity (= firm)
11. liability l. to make the necessary arrangements for opening a business
a. There are some more words which can come useful while talking about setting up a
business. Match the words from the left column with their corresponding definitions.
1. set up a. a request from a customer for a product or service
2. profit b. to give a new look to smth
3. loan c. the buildings or land owned by an individual or organisation
4. premises d. the local office of a larger organisation
5. capital e. an agreement which lets someone use a building or land for a
6. branch specific period of time
f. the buildings where a company is located
7. property g. the money that you make in business
8. rent h. an amount of money paid to the owner of a building or land in
exchange for its use
9. lease i. a charge paid to a person who has lent you money
10. refurbish j. an amount of money borrowed by an individual or company
11. order k. the money required to start or expand a business
12. interest l. to make the necessary arrangements for opening a business
b. Richard Green, the owner of a small business, describes how he got started. Complete the
sentences using these words. Change the form of the words where necessary.
In the beginning we calculated that we would need to invest £25,000 to _______ the business. We
were able to raise part of this _______ by selling a house that we owned. We then negotiated with the
local _______ of the bank and they agreed to give us a ______ of £3,000.
We moved to our current _______ near Carlisle in North East England in 1989. We did this mainly
because the ______ of £45 a week was so much cheaper than in the South. There the property cost
£13,500 a year rent on a 20-year _______ with rent reviews every four years. Since the building was
completely new we didn’t need to spend money on _______ it. At the moment we have a five-year
_______ which we are hoping to renew.
Our company is beginning to make _______ in spite of _______ repayments on the business loan and
in spite of our recent spending on a fax machine and books of pre-printed sheets on which customers
could fax their _______.
5. Match the words from the left column with their corresponding synonyms.
1. to run a. to set up
2. to start b. to contribute
3. to raise c. to become out of business
4. to be liable d. to invite the public to
5. to offer to the public e. unregistered
6. to dissolve f. to face, to come across
7. to invest g. to operate, to carry on
8. to go bankrupt h. to provide
9. unincorporated i. to distribute (among smb)
10. to have authority j. to go out of business, to
11. to share (between smb) k. to work for oneself
12. to be self-employed l. to have power
13. to encounter m. to be responsible
6. Paraphrase the sentences using instead of the italicised words their synonyms from the text.
Small businesses are more likely to take one of the following forms:
Sole trader or sole proprietor. This is the simplest way of starting a business. Sole trader or
sole proprietor is the only one owner of a business. He provides all the capital, bears all the risk, and
in return receives all the profits. So he works for himself, is entirely responsible for all aspects of
operating his own business and has to solve all the problems he comes across alone.
Partnership is an unregistered association of two or more persons carrying on business
together for the purpose of making a profit. All partners have the same power and are responsible
for the debts of the partnership. Profits and losses are distributed among them. If one partner dies,
the business must be closed down.
Private Limited Company is a company which must not invite the public to subscribe for its
shares or debentures and does not allow its members to transfer their shares without the agreement
of the other shareholders. Such company can be formed with a minimum of two but usually not
more than 50 people becoming its shareholders. If the company goes out of business or bankrupt the
responsibility of each shareholder is limited to the amount of money that they have contributed.
7. Which of the following advantages and disadvantages would you associate with (a) sole trader,
(b) partnership, and (c) private limited company? Sum up and say which type of company, in your
opinion, has more advantages and which one has more disadvantages.
1. You have total control of your business. ________
2. This is a good way of sharing the pressure and work ________
involved in starting a business.
3. The financial risks that you are taking are restricted. ________
4. You can increase your capital by selling shares. ________
1. There is a danger that conflicts of personality could ruin ________
2. It may be difficult to expand. ________
3. You may have to sell your possessions if the company ________
goes into debt.
4. It is complicated and expensive to set up. ________
8. Determine whether these statements are true (T) or false (F), and if they are false say why.
An entrepreneur is an individual who is willing to organize and manage a business in order to
Since the success or failure depends primarily on one person, that person feels directly
responsible for the company.
Limited liability is the concept that a sole proprietor is responsible for all debts of the business.
If the business has debts and one of the partners dies, the others are responsible only for his
Sole proprietors and partners can be held personally responsible for debts of their businesses.
The death of one partner doesn’t prevent the other from developing his business successfully.
In Great Britain, there is no legal distinction between private and public limited corporations,
but the equivalent of a public limited company as one registered by the Securities and Exchange
Founders of companies have to write a Memorandum of Association, which sets out the rights
and duties of directors and different classes of shareholders.
9. Open the brackets and translate the words into English.
1. Many of the larger businesses in the UK are public limited companies which means that the
public can buy and sell their shares (на фондовой бирже).
2. Public companies are formed when the necessary capital cannot be supplied by the directors and
it’s necessary (привлечь фонды) from the public by publishing (проспект).
3. If one partner dies, a company must (быть ликвидирована).
4. Partnership is regarded merely as an aggregation of persons doing business under a common
name and not as (юридическое лицо) separate from its shareholders.
5. A sole proprietor must deal with the problem of (ограниченной ответственности).
6. If a limited company (обанкротится), its (активы) won’t cover the debts.
7. (Личная собственность) of a sole proprietor can be at stake if his business fails.
8. It’s easier for new businesses to succeed (в условиях свободной рыночной системы).
9. There’s a special document in the company which (устанавливает права и обязанности) of
different classes of shareholders.
10. Private limited companies cannot (предлагать общественности свои акции).
10. a) Read the text and fill in the gaps with the words
b) Explain why, despite the technical and financial advantages of large firms, there are so many
a small percentage to be dominated
on advantageous terms the division of labor
to stimulate the supply side of the economy encourage
exploit economies of scale the unemployed
share of the market a low rate of interest
amounts of capital have access
capital the cost advantage
Small businesses are managed by their owner(s) and have a relatively small (1)... . Small
manufacturing firms (2) ... fewer than 200 people. Large firms are typically incorporated (limited
companies), where ownership and management are separated. Large companies that (3) ... enjoy a
cost advantage over small firms in the same industry. In particular, large firms have access to the
following technical and financial economies. Technical economies occur in the production of
goods. As the firm expands, there is greater scope for specialisation and (4) ... . Large factories can
employ specialist skilled workers to do the same job all day with no time lost in changing tools or
doing unfamiliar tasks. The indivisibility of certain types of (5) ... means that many production
processes are impossible on a small scale. Large firms can (6)... by linking production processes] that
would otherwise be carried out in separate factories (a large manufacturer of shirts can (7)... transport
costs by combining the weaving and cut-ting of cotton under the same roof). Financial economies
allow large firms to raise capital (8) .... Large firms are considered to be reliable and are therefore
charged (9)... and (10) ... to capital markets such as the stock exchange. Selling shares is a
relatively inexpensive method of raising large (11) ... . Despite (12) ... to large firms of
producing in bulk, small businesses find a niche by pro-viding specialized products for small
markets (e.g. hairdressing cannot easily achieve a large scale of operation, and tends (13) ...
small firms) An irregular or limited demand for a product prevents mass production. Small firms
have the required flexibility and low overheads Often small firms survive by accepting subcontracting
work from large companies in printing were fixed costs from only (14)… of total costs, low set – up
costs (15) . . the development of small firms. Where the market for goods is restricted and
highly localized, small firms survive, e.g. village shops. In an attempt (16) … the government
has introduced a number of schemes to help small firms to survive: the Enterprise Allowance is a
weekly sum paid to (17) … while they are setting up their own business; the Business Expansion
Scheme provides relief against income tax to investors unquoted companies.
11.Develop the idea using the active vocabulary.
1. Sole proprietorship has both advantages and disadvantages.
2. Because of unlimited liability many entrepreneurs don’t want to start a business.
3. If compared to sole proprietorships, partnerships have more chances to succeed.
4. It’s always difficult to set up a new business.
5. More and more businesses nowadays are companies of limited liability.
6. There’s only one major difference between private and public limited company.
7. To get access to the Stock Exchange a company has to write special documents.
12. Give extensive answers to the questions using the active vocabulary.
1. What is understood by sole proprietorship? What merits and demerits of sole proprietorships do
the entrepreneurs encounter?
2. Why is a limited liability a mixed blessing?
3. What makes an entrepreneur choose partnership instead of sole proprietorship?
4. Why are lawyers, doctors and accountants prohibited from forming companies with limited
liability in some countries?
5. What characteristics of the sole proprietorship do partnerships have? In what way do they
6. Why are the majority of businesses all over the world limited companies? What does it mean?
7. What happens if one person does not have enough money to start a business?
8. What is understood by a public limited company in Great Britain? In what way does it differ from
the similar businesses in the USA?
9. What documents do the founders of a business have to write?
10. What type of small business would you prefer to set up and why?
13. Translate into English.
В частной акционерной компании (private limited company) в Англии может состоять от двух до
пятидесяти членов (в их число не входят те, кто в ней работает). Частная компания не должна
направлять бухгалтерские отчеты в бюро по регистрации акционерных компаний (Registrar),
но ежегодно заявляет туда о том, что она не предлагала общественности свои акции или
облигации. Частная компания - это зачастую дело семейное, капитал для которого собран среди
членов семьи, которые, вследствие этого, владеют акциями компании. Но акции могут
передаваться другим лицам только с согласия правления компании. Конечно же, это
большой минус для держателя акций частных компаний. Т.к. каждая акция обладает одним
голосом, у него должен быть по меньшей мере 51% акций, чтобы получить большинство голосов,
необходимое для разрешения передачи акций другому лицу. Акции публичной компании с огра-
ниченной ответственностью (PLC - public limited company) могут свободно продаваться на
бирже или в ходе частных переговоров.
Я работаю на себя. Я основал свое дело около 25 лет назад, продав свой дом, чтобы достать
капитал. Я начинал как малое предприятие и так и остался в малом бизнесе. Но я поддерживал
цены на низком уровне (to keep prices low), и таким образом у меня появилось несколько
постоянных клиентов. У меня небольшие накладные расходы (overhead costs), потому что мне не
нужно большое здание. Все, что мне нужно – моя машина и мой мобильный телефон. У меня нет
других сотрудников. Я работаю один. Я один за все отвечаю, и вся прибыль достается только мне.
Я понимаю, что рискую. В случае банкротства мне придется продать всю свою личную
собственность, чтобы покрыть долги компании.
c) 1. Начиная свое дело, частный предприниматель может столкнуться с серьезными
проблемами, такими как, например, ограниченные ресурсы, сводящиеся только к его
личным сбережениям и средствам, которые можно занять.
2. . Частный предприниматель также сталкивается с проблемой ограниченной
ответственности. Это значит, что его частная собственность может быть использована для
покрытия долгов компании, если она обанкротится.
3. Товарищество имеет больше шансов на успех, так как партнеры обычно вкладывают
равные средства, у них одинаковые права в управлении компанией и вся прибыль и все
убытки делятся между ними.
4.У товарищества есть свои недостатки, это проблема неограниченной ответственности и
ограниченное время существования компании, которая должна быть ликвидирована в
случае смерти одного из партнеров.
5.В условиях свободной рыночной системы безопаснее создавать компании с
ограниченной ответственностью, в которой инвесторы отвечают только за вложенный
капитал и активы которой не покрывают долги.
6.Основатели бизнеса должны написать договор об учреждении компании, где называется ее
имя, цели, зарегистрированный офис или недвижимость и разрешенный к выпуску
акционерный капитал, а также устав компании, где излагаются права и обязанности все
1 There is a dialogue between a person who wants to set up his business (P) and a business
consultant (C). Reconstruct and act out the dialogue.
__ C: I’m afraid you can’t. If you die, a new company must be started.
1 P: I want to start my own business as a computer consultant. What kind of company should I
__ C: That’s right. You’ll have to deal with the problem of limited liability. If you go bankrupt,
you can lose everything.
__ P: What’s the best way to raise capital for setting up your own company?
__ C: Yes, there are some difficulties and a certain degree of risk. But such company is easy to
organize, you’ll have freedom of action and won’t have to share your profit with anyone
__ C: If it’s just you, the easiest is to be a sole trader. No legal problems, no bureaucracy. You are
__ P: So I’ll have difficulties with raising capital, I’ll be entirely responsible for every move and I
put all my personal savings and property at stake. And what do I win?
__ C: That’s the problem. Your resources are rather limited. You can either use your personal
savings or borrow money from your acquaintances.
__ P: And can I write a will giving over my business to someone after my death?
__ P: If I’m not mistaken, I’ll have to cover the debts selling my personal property if I become
out of business?
2. Have you got what it takes to run your own business? Using the questionnaire and the keys
make up a dialogue between a beginning entrepreneur, who is thinking of starting a
business and a business consultant.
1. a=0 b=2 c=4 9. a=2 b=4 c=0
2. a=4 b=2 c=0 10. a=0 b=2 c=4
3. a=0 b=2 c=4 11. a=0 b=4 c=2
4. a=4 b=2 c=0 12. a=2 b=4 c=0
5. a=2 b=4 c=0 13. a=2 b=0 c=4
6. a=4 b=0 c=2 14. a=2 b=4 c=0
7. a=0 b=4 c=2 15. a=0 b=4 c=2
8. a=2 b=4 c=0 16. a=4 b=2 c=0
44 or above
You definitely have the necessary qualities to become the director of a successful business. You
have a strong sense of leadership, you can both organize and motivate and you know exactly where
you and your team are going.
between 44 and 22
You may need to think more carefully before setting up your own business. Although you do have
some of the essential skills for running a business, you will probably not be able to deal with the
pressure and strain that are a part of the job. You should perhaps consider taking some professional
training or finding an associate who can compensate for some of your weakness.
Managing your own business is not for you. You are better suited to an environment where you are
not responsible for making decisions and taking risks. To operate successfully you need to follow
well defined instructions and you prefer work that is both regular and predictable.
What qualities should a person have to become a successful entrepreneur? Would you manage
to be a director of a prosperous business?
3 Make up your own dialogue on one of the following situations.
► You and your friend want to set up your business. You are planning to open a clothing
store. Turn to business consultant for advice.
► You want to start a business as a consulting barrister but don’t know what type of company
you should set up.
► You are going to set up a partnership. You want to find out more about its advantages and
► You want to invest money in some business but don’t know which one to chose. Ask
business adviser what investment will be the most profitable and safest.
III. Language Focus
COULD HAVE + PAST PARTICIPLE
1 Read the following text and make a list of the decisions that are mentioned. Then, using could
have, suggest what alternatives were available in each case.
Richard Simpson used to be a successful financier with the Morgan Grenfell bank in the City of
London. However, in early 1991, at the age of 32, he decided to leave his job and buy his own
business. The company that he chose to buy was “Price’s Patent Candle Company”, an old –
fashioned candle manufacturer located in south London, which belonged to Shell. Once he had
bought it, Simpson’s lifestyle suddenly changed: he took a salary cut of 40%, said goodbye to the
company car and moved from his comfortable office into a prefabricated one in the car park. He then
decided to bring his father into the business to help him and together they made the decision not to
sell Price’s subsidiaries. As Simpson says, “I’ve got a commitment to the staff and the business.”
Richard Simpson left his job. He could have continued working for Morgan Grenfell.
SHOULD HAVE +PAST PARTICIPLE
2 The following examples illustrate different mistakes that have been made in business. In each
case identify the mistake and then discuss what should have happened.
Example: After a famous European pen manufacturer had redesigned one of its luxury pens, some
customers found that they leaked.
They shouldn’t have changed the design. They should have tested the new design more
1. A company selling fridges in Saudi Arabia included in its brochure a picture of one of its models
with the door open and with a smoked ham lying inside.
2. An American car manufacturer launched a new car on the Spanish market under the name
3. A British food retailer received complaints from its customers in France who had bought its
bacon thinking it was country ham.
4. A food company was unsuccessful when trying to market a cake mix to Japanese housewives, by
suggesting that it could be cooked in their electric rice cookers.
5. An international bank sent a young woman executive to run its Japanese operation.
6. An American tobacco company had problems when it targeted only black consumers for a new
brand of cigarettes.
8. The director of a small business which produces notebook computers talks below about
some of the mistakes he made when he first started his company. Each sentence gives an
example of a mistake. Indicate, using should(n’t) have, what better course of action
might have been taken in each case.
1. Before starting my own business, I licensed the technology to another company which did not
exploit it satisfactorily. I had to wait two years before being able to buy back the licenses.
2. Our first notebook computer was not designed to be connected to other systems because we
hadn’t ealize that our customers would prefer a compatible system.
3. We didn’t spend enough time and energy on developing a strong dealer network and this affected
4. At first we only targeted the individual consumer and it was only later that we watched towards
the business users.
5. Marketing and advertising were our weak points. We thought that it was enough to engineer and
design but soon learned that that was not the case.
8. Read each of the sentences below and match them with an appropriate phrase from the
list (a-e) at the end. Then write a sentence using could have to show what alternative
courses of action were open to this manager.
1. The capital of the company consisted entirely of bank loans and my own personal investment.
2. Initially our margins were too high and our pricing was unrealistic. We didn’t ealize this for
3. When we got into financial difficulty at the end of the first year I didn’t approach the public
4. My original team was composed of essentially older, highly qualified computer specialists.
5. Our offices were too big and on the west side of town where rents are the most expensive.
a. This type of business can easily be run from a regional location.
b. At that time there were a lot of talented, young university graduates coming onto the job market.
c. I received offers from people who were prepared to buy into the company.
d. It is sometimes possible to negotiate an agreement to defer payment of social charges and
taxation for a short period.
e. When we eventually did reduce prices this dramatically increased our sales.
5 Choose from the list of nouns below those that can be combined with the verbs “make” and
To make… a favour
to do… business
a bid for smth
credit to smb
6 Fill in the gaps with the correct form of ‘make’ or ‘do’.
1. There’s a rumour going around that Pelly’s are going to ______ a bid for Squash International.
2. Please _____ your best to get these typed before 5 o’clock.
3. Who shall I _____ the cheque out to?
4. One should work at full pressure to _____ a decent living.
5. We’ve been _____ business with them for over 30 years now.
6. Considerable progress has been _____ and we hope to put some concrete proposals to our
members tomorrow afternoon.
7. They’ve been _____ a roaring trade since they decided to advertise on local television.
8. We have _____ a considerable profit on the sale of that land.
9. The business was so run down when she took it over that nobody expected her to _____ such a
success of it.
10. Something as simple as changing the size of the lettering on the packet can _____ all the
difference to your sales.
11. A customer has _____ a complaint about one of our salespeople.
12. In fact, Gravers have _____ us a favour by launching their product fist. We can learn from their
13. We’d better _____ a decision whether to go ahead with this project by the end of the week.
14. He started as junior assistant to manager but _____ a brilliant career in two years.
15. We _____ the deal with them yesterday, now we only have to register it officially.
16. His honesty, professionalism and efficiency in conducting business _____ him credit.
17. I find it really tiresome to _____the shopping with my wife.
18. Would you prefer to _____ the payment by cheque or in cash?
19. Our negotiations lasted only half an hour, but he _____an impression of an efficient and
20. Whatever you may say, I’m convinced that all businesses are created with a single purpose – to
21. If we don’t get some orders soon we’ll have to _____ some of our workers redundant.
7 Fill in the gaps with a suitable verb + preposition.
Сall on cater for compensate…for
combine with comment on consent to
comply with conclude from consist of
convenient for convince…of cooperate with
coordinate with cope with credit…with
capable of collaborate with cut back on
1. I’ll be ………… ing ____ you when I’m next in your town.
2. If you suffer any loss, we will ………… you ____ that.
3. He was unable to………… ____ the extra work and became ill.
4. The hotel is in the city centre, which is ………… ____ the station and the commercial district.
5. We cannot ………… ____ his taking a holiday at such a busy time.
6. I’m afraid I can’t ………… ____ another department’s work.
7. As you appear to have been overcharged, we will ………… your account ____ the sum of
8. It is important to ………… ____ any special Customs regulations.
9. Having studied the balance sheet, I ………… ____ the figures that the firm is in serious financial
10. If they have any special needs we’ll try to ………… ____ them.
11. This new design …………. Elegance ____ efficiency and strength.
12. During this project we have to ………… our activities ____ our partners in the USA.
13. All members of a team must ………… ____ each other.
14. We’ve been ………… ing ____ that firm for several years.
15. Due to falling sales, the company has ………… ____ its R & D programme.
16. They’re ………… ____ doing a much better job than that.
17. The cargo …………s ____ four one-ton crates.
18. She couldn’t ………… them ____ the need to redesign the product.
8.Fill in the gaps with an appropriate set-phrase.
Deal with have a look at have a look for
give priority to inferior to insure against
have confidence in introduce to invest in
interfere with engaged to involved in
dispose of equivalent to
1. Company turnover has been so good that we shall be able to ………… ____ some new
2. We are one of a large number of firms which are ………… ____ environmentally safe
3. This uncertainty about oil prices could ………… ____ our plans for expansion.
4. The computers coming from the Far East are not ………… ____ those manufactured in
5. At the company reception the new director was ………… ____ the management by the MD.
6. The accounts manager asked the auditors to ………… ____ the annual figures.
7. Our marketing department is encouraging customers to ………… ____ their old machines
and buy replacements.
8. If you’re dealing with the French orders be sure to ………… ____ the Duchamp order above
9. The service engineer said he would ………… ____ the defect. But he expected to take
several hours to find it.
10. In many parts of the world the price of a car is ………… ____ several years’ wages for a
11. Most enterprises supplied by BEC ………… ____ their product.
12. Our overseas customers usually ………… ____ damage or loss at sea just to be safe.
13. My secretary has just become ………… ____ the personnel manager’s son.
14. Our company has been …………ing ____ the same bank for thirty years now.
9. a. Business idioms. Read the extract from a story and match the idioms in bold with their
"What? Another loan? No way, Kim. I've already given you 1) a small fortune!" Kim shuddered as
she knew her father 2) meant business this time; she could hear it in his voice.
"But, Dad... Please! Just until I 3) get the company off the ground. Once I get some orders I'll be
fine... Honest!" She was desperate. Unless her father helped her out, her new clothing company
would never get the chance to 4) bear fruit. "I'm 5) living on a shoestring already; all I get is my
income support!" She could hear her father trying to interrupt, but she went on, "Listen, I've been 6)
burning the midnight oil this month and I'm exhausted, but I've figured out that just another
thousand should do it. You'll see!"
"I said no, Kim," her father stated sternly. "You seem to think that I 7) am rolling in it, but I'm not
— I work hard to earn the little that I do, and to be honest, I'm not sure if I'll be able to 8) keep my
head above water if I keep lending you money." Kim fought back a sob. She couldn't believe that he
would let her down.
"I'm begging you, Dad. It won't be 9) money down the drain. Just give me a chance to show you!
You'll get it all back with interest!" Kim waited nervously for her father's reply. Eventually, he
"Alright love. But this is the last time. I hope that you realise that your mother and I are really going
to have to 10) tighten our belts though."
a. to manage with very little money
b. to live on a smaller budget
c. to be serious about what one says/intends
d. to work very late at night to achieve sth
e. a lot of money f money wasted
g. to survive despite financial problems
h. to produce good results
i. to be rich
j. to start a business/ company/project, etc
b. Rewrite the following sentences using the words in bold. Do not change these words in any way.
1. During the economic crisis, even the royal family had to spend less money than usual.
Belts ……… .
2. Money is so scarce at the moment that I have had to take a second job just to survive.
water ……… .3. I knew that Ray had been working late as he looked exhausted.
4. I knew that Mrs Watkin was serious when I got a letter from her lawyer.
business ……… .
5. It costs a lot of money to start a business.
ground ……… .
c. Fill in the phrases from the list.
money down the drain, live on a shoestring, rolling in it, bear fruit, a small fortune
Peter: Susan, I have the most wonderful news!
Susan: What is it? What's happened?
Peter: All the hard work we put into our formula is about to 1)……… . Someone wants to market it.
We'll be rich. We won't have to 2)……… any more.
Susan: That's wonderful, darling. I knew that it wasn't 3)……… when we put all our savings into
improving the formula. It'll earn us 4)……… .
Peter: You are right, dear. Let's go out and celebrate. After all, soon we'll be 5)……… .
1 Many banks offer a specialised service to people wishing to set up their own business. This may
include advice on various aspects of starting and running a business, as well as financial assistance in
the form of a loan.
Work in pairs. You have decided to set up your own business together and have approached the bank
for advice. They have asked you to prepare a business plan giving information about your proposed
business. The list below shows some of the many details you will be required to give. With your
partner, agree what type of business you are going to set up, then discuss each of the points listed in
the business plan. When you have finalised all the details of your business, prepare a written plan to
give to the bank.
BUSINESS PLAN FORM
1. DETAILS OF THE BUSINESS
Name of business
Type of business
Format (limited company, partnership, etc.)
2. PERSONAL DETAILS
Relevant work experience
Number of people/job function
Describe your market
Who are your customers?
Is your market growing, static or in decline?
Who are the main competitors?
What are the advantages of your product or service over the competition?
What sort of marketing or advertising do you intend to do?
Where do you intend to locate the business and why?
What sort and size of premises will you need?
What machinery/vehicles do you require?
What objectives do you have for the business?
2 You have recently heard about a Scottish venture to produce a new malt whisky, Isle of Arran
Distillers Ltd. The company is inviting investors to purchase bonds (certificates) in exchange for
which they will receive a certain quantity of the first whisky to be produced. You are interested in
finding out more about this offer. Write a letter to the company (revise business letter format (Unit
2)) requesting information about the following points:
The whisky you will receive: description, date of production and delivery date.
■ cost of bond: minimum/maximum investment, method of payment
■ conditions: extra charges? VAT (Value Added Tax - налог на добавленную стоимость)?
customs duty? transport and storage charges? insurance?
■ market price of whisky
■ guarantee of your investment
1 The Cross
Ayrshire KA5 5AB
You can use following expressions: dear Sir/Madam, I wish to enquire, I would be grateful, I look
forward to, yours faithfully, etc.
1 a. Listen to Ben Fox, a young British businessman, talking about himself and his company.
Complete the information below.
1. Age: _____________________________________________
2. Name of company: _____________________________________________
3. Nature of business: _____________________________________________
15. Date of opening:
16. Previous employer:
17. Reasons for opening the company:
What type of company do you think Ben Fox’s business belongs to? Why?
b. You’ll hear Ben Fox describing how he got the original idea for opening Fasta Pasta. Listen
and answer the following questions.
1. What was Ben Fox’s job when he worked for the pizza restaurant company?
2. What kind of hours was he working at that time?
3. What observations did he make about the home delivery market?
4. Where did he first see a takeaway pasta operation?
5. Why does Ben Fox call pasta “the ultimate fast food”?
c. Listen to Ben Fox’s description of the customers of Fasta Pasta.
1. What are the differences between the customers he serves at lunchtime and in the evenings?
2. How does he describe the average customer?
Will Ben Fox’s business succeed or fail in your opinion?
d. In this extract, Ben Fox answers the question “What advice would you give to young people
thinking of setting up their own business?” Listen and complete the following pieces of advice
with the verbs which he uses.
1. __________________ whatever you want to do carefully.
2. __________________ to friends and relatives and people you know about what you want to do.
3. __________________ in what you’re doing.
4. __________________ to people and __________________ from others.
5. __________________ the right sort of background.
e. Summing up all the information, describe Ben Fox as a businessman using your active
vocabulary and vocabulary from ex. 5.1.
2 Read the following qoutes which describe some of the sacrifices made by people who have
started their own businesses. Decide which of these you would be prepared to accept and which
you would not and why.
“I had to sell my house in “When I started, my
order to raise enough money three kids were in
to start the business. So school and I had to
that meant spending the next
three years living in a mortgage our home and
caravan.” put every cent that I
had into the business.
Then I had to ask
“At the beginning it friends to put their
was eighteen hours money in as well.”
“I’m earning less
of work a day, seven
than half of my
days a week. It was a previous salary
total commitment of after 18 months
not just myself but of in business.”
the whole family.”