Unit 11 the management of business and Types of business organization

Before reading the text study the vocabulary:

Vocabulary

management – управление

to be managed – быть управляемым

to consult – советовать, консультировать

to be free to do smth – иметь свободу действий

supplier – поставщик

raw materials – сырьё

capital items – составные части капитала

premises – помещения

consumable – потребляемые

stationary – канцелярские принадлежности

advertising – реклама

to appoint agents – назначить агентов

to handle – управлять, регулировать

to keep track – отслеживать

payments – платежи

a debtor – должник

research – исследование

accounting records – бухгалтерские записи

staffing – укомплектованные персоналом

respite – передышка

worry – забота

halved – разделённый пополам

to get argument – получить согласие

to make a solution – принять решение

small-scale – мелкомасштабный

gradually – постепенно

rapidly – быстро

large-scale – крупномасштабный

proprietor – владелец, хозяин

in charge – ответственный

to offer – предлагать

partnership – партнёрство, товарищество

limited liability company – компания с ограниченной ответственностью

shares – акции

public limited company – общественная компания с ограниченной

ответственностью

THE MANAGEMENT OF BUSINESS

Every business has to be managed. There is a lot to worry about even for a sole trader, who has no need to consult anyone, and is free to do whatever he/she likes. There is the product, or the range of products, or the services being offered to worry about. We have to find suppliers for everything we need, not only raw materials and components but all the capital items (premises, machines, motor vehicles, furniture and equipment) and consumable items (stationery, fuel, packing materials, etc.). There is the marketing of the product, advertising, appointing agents to handle various types of goods, keeping track of sales and of pay by debtors. There is staffing, transport and distribution, research and development, accounting records, finance, and so on. For the sole trader it is an endless round of work. With a partner there is some help, and some respite because a worry shared is a worry halved, but now there is the need to consult with the partner, and get agreement on many points before the actual solution can be made.

Most businesses begin as small-scale enterprises and increase gradually (or perhaps rapidly) to large-scale organizations employing hundreds or thousands of people.

The smallest type of business organization is the "sole trader" organization, which just has the proprietor in charge, with employees, if any - frequently sole traders find difficulty in offering a full service to customers and therefore many of them take a partner and set up a partnership. The third type of business organization is the limited company.

The word "limited" is short for Limited-liability Company - because the owners of such companies have limited liability. Finally, the largest companies, which need so much capital that they have to ask the general public to buy shares in the company are called public limited companies or PLCs.