Sources of government revenue

Council tax Capital tax

£ 13.6bn £ 123.9bn

B usiness rates Other

£ 16.2bn £ 36.2bn

Corporation tax Income tax

£ 33.8bn £ 95.9bn

VAT

Excise duties £ 59.6bn

and other

indirect taxes NI contributions

£ 48.6bn £ 58.8bn

Public spending

Hosing and environment Transport

£ 14bn £ 9bn

Industry

Agriculture Other expenditure

a nd employment £ 59bn

£ 15bn

Low and order Social security

£ 20bn £ 103bn

Defence Health

£ 23bn £ 54bn

Debt interest Education

£ 28bn £ 46bn

What figures in public spending would you change? Why? Do you know the figures of government revenue and public spending in your country?

Exercise 5. Make up the diagram of government revenue and public spending in Ukraine.

Exercise 6. Translate from Russian into English.

1. Основной источник дохода правительства – налоги.

2. Налогообложение можно разделить на прямое и косвенное.

3. Прямой налог налагается на физических лиц или фирмы, косвенный – на товары и услуги.

4. Налогообложение имеет основное значение для организаций, занимающихся бизнесом, рынком труда, ценой.

5. Фискальная политика – это набор мероприятий, при которых правительство манипулирует налогами и расходами для решения определенных политических задач.

6. Например, правительство может повысить налоги для того, чтобы уменьшить чистый (располагаемый) доход индивидуума.

7. Такой шаг, в свою очередь, сокращает их доходы.

8. Однако, повышение налогов может быть использовано в политике сокращения инфляции.

9. Любое повышение подоходного налога сократит спрос в экономике и уменьшит продажи.

Unit 9 Business organization

Pre-reading tasks:

Look at the photos below. Do you know any of these names? Why don’t you know the first? Maybe, it is small, don’t you think so?

Vocabulary

1. Read the definitions of the following economic concepts, try to remember them and be ready to use.

Shareholder (stockholder) – owners of a corporation.

Stock – shares of ownership in a corporation.

Public corporation – corporation, which offer their stock to the general public.

Private corporation – corporation, whose stock is not available to the general public.

S corporation – small corporation with no more than 35 shareholders that may be taxed as partnerships.

Nonprofit corporation – incorporated institutions whose owners have limited liability and that exist to provide a social service rather than to make profit.

Subsidiary corporation – corporation whose stock is owned entirely or almost entirely by another corporation.

Parent company – company that owns most, if not all, of another company’s stock and that takes an active part in managing that other company.

Holding company - company that owns most, if not all, of another company’s stock, but does not actively participate in the management of the other company.

2. Make up as many new words as it is given in brackets.

1. own (4); 2. partner (1); 3. corporate (2); 4. account (4); 5. legal (3); 6. employ (6); 7. establish (2); 8. manage (5); 9. contribute (3); 10. free (3); 11. flex (3).

3. Complete the following sentences with appropriate words.

1. If you want to organize a … find a person you can trust, respect and work with.

2. Unlimited liability is the main disadvantage of a … .

3. Independence, secrecy are benefits of … .

4. In a newly formed … , the shareholders elect a board of directors.

5. Many critics of business counter that … evade their social responsibility by using various tax minimization techniques.

Read text I and be ready to render it.