Тема 2. Кредит и кредитный риск.

Study the words and the word-combinations.

crediting — кредитование;

securities — ценные бумаги;

shares — акции;

bonds — облигации;

in return — взамен;

given — предоставленный;

indication — знак;

extend — предоставлять;

finance — финансировать;

expenditures — расходы;

judge — оценить;

capacity — способность;

collateral — залог;

abuse — злоупотреблениe;

imply — подразумевать;

discharge of debt — погашение долга;

credit risk — кредитный риск;

interview — деловое свидание;

credit scoring system — система оценки потенциальных заемщиков;

clerical — канцелярский;

marital status — брачный статус;

refer — направлять;

credit rating — рейтинг общей кредитоспособности заемщика;

judgement — мнение;

entity — юридическое лицо.

I. Scan through the text and answer the questions that follow.

Credit and crediting

Credit – transactions between two parties in which one (the creditor or lender) supplies money, goods, services, or securities in return for a promised future payment by the other (the debtor or borrower). [Creditor is someone who money is owed to. Debtor is someone who owes money.] Credit given is an indication of trust in that person to pay for the goods given or money lent. Credit transactions normally include the payment of interest to the lender. Credit may be extended by public or private institutions to finance business activities, agricultural operations, consumer expenditures, or government projects. Most modern credit is extended through specialized financial institutions, of which commercial banks are the oldest and most important. The lender must judge each loan he makes on the basis of the character of the borrower (his intention to repay), his capacity to repay (based on his potential for earning income), and his collateral (property or other goods that you promise to give someone if you cannot pay back the money they lent you). [Loan is an amount of money that you borrow from a bank.] Customers and lenders may publicly regulate the terms of credit transactions to prevent abuses.

1) What is meant by the term “credit”? 2) What does credit normally include? 3) What institutions may extend credit? 4) What may credit finance? 5) How is most modern credit extended? 6) How must the lender judge each loan? 7) What does the character of the borrower imply? 8) What is the debtor’s capacity to repay based upon? 9) What does the debtor’s collateral imply? 10) What may be publicly regulated? 11) Why may the terms of credit transactions be publicly regulated?

   II. Agree or disagree with the following statements.

1) Credit is an arrangement with a shop, bank etc that makes it possible for you to buy something and pay for it later. 2) The lender supplies shares in return for a future payment by the borrower. 3) Credit doesn’t include the payment of interest to the lender. 4) Credit may sponsor consumer expenditures. 5) The lender must appreciate each loan. 6) The lender must estimate the character of the borrower. 7) The lender may not judge the borrower’s intention to repay. 8) The borrower must judge the lender’s capacity to repay. 9) The borrower’s capacity to repay is based on his potential for making money. 10) The lender must judge the borrower’s pledge. 11) The terms of credit can’t prevent abuses by customers and lenders. 12) Customers and lenders may secretly correct the terms of credit transactions to prevent abuses.

    III. Translate the following words, phrases and statements from Russian into English.

Кредитование; акции; взамен; обещать; обещанный; долг; дебитор; облигации; занимать; знак; доверие; сделка; проценты; предоставлять; финансировать; потребитель; расходы; оценить; ссуда; способность; заработать; доход; залог; условия соглашения; публично; предотвратить; заказчик; подразумевать; кредитор; давать взаймы; ссудодатель; поставлять; ценные бумаги; предоставленный; злоупотребления; участвующее лицо.

Кредит – это ссуда в денежной или товарной форме на условиях возвратности. Кредитор – это один из участников кредитных отношений, выступающий как субъект, предоставляющий ссуду. Кредитором может быть государство, банк, предприятие или организация. Дебитор – это должник, юридическое или физическое лицо, имеющее денежную задолженность предприятию, организации, учреждению. Должник – это сторона в обязательстве, от которой другая сторона-кредитор вправе требовать передачи имущества, выполнения работы или уплаты денег в счёт погашения долга.

IV. Complete the following statements.

Credit means … 2) Credit given is … 3) Credit transactions include … 4) Credit may be … 5) Credit finance … 6) Most modern credit is extended … 7) The lender must judge … 8) Customers may regulate …

Credit risk

Credit risk– in general, the risk that a lender will not be able to get the money loaned back from the borrower. To guard against this, the credit risk is assessed either by a lending manager at an interview, or by the submission of a specially prepared form which is designed to score the credit rating. Credit scoring is a method of measuring the risk factor in a personal lending situation. By using this computer method, the bank saves on management time, clerical costs, etc. The procedure only demands the time of a junior clerk to see that the customer completes the form correctly and such data as marital status, address, employment, income, etc. is fed into the computer and the answer is given. Should the answer be unreasonable, then the loan application can be referred to a senior official. Creditrating is a judgement made by a financial institution about how likely a person or business is to pay their debts.Creditrating is usually obtained through the banking system or through the creditanalyst whose function is to research into the records / affairs of an individual or company to assess whether that person / entity has a degree of creditworthiness (creditworthy – considered to be able to repay debts).

The use of credit in modern societies is so various and widespread that many types of insurance have grown up to cover some of the risks involved. Examples of these risks are the risk of bad debts from insolvency, death, and disability; the risk of loss of savings from bank failure; the risk attaching to home-loan debts when installments are not paid for various reasons, resulting in foreclosure with subsequent loss to the creditor; and the risk of loss from export credit because of war, currency restrictions, cancellation of import licenses, or other political causes.

1) What is meant by the term “creditrisk”? 2) What is to be done to guard against creditrisk? 3) Who has the right to assess creditrisk? 4) What is meant by the term “credit scoring”? 5) What does the bank save by using credit scoring? 6) What does the procedure of credit scoring demand? 7) What is fed into the computer? 8) When can the loan application be referred to a senior official? 9) What does creditrating inform? 10) How is creditrating usually obtained? 11) What is the function of creditanalyst?

VI. Agree or disagree with the following statements.

1) A lending manager at an assignation assesses credit risk. 2) Credit risk might not be assessed. 3) Credit scoring is not a method of measuring risk factor. 4) The bank economizes clerical costs by using credit scoring. 5) The procedure demands the time of a senior clerk. 6) The customer completes the form untruthfully. 7) Such data as matrimonial status or address is fed into the computer. 8) The loan application can be referred to a junior official. 9) Creditrating is an estimation made by a financial institution. 10) Creditrating is derived through the banking system. 11) Credit rating is not obtained through the creditanalyst. 12) Creditanalyst studies the affairs of an individual in detail. 13) Creditanalyst assesses whether that person has a degree of solvency. 14) Lender is a person that offers money to a borrower with the expectation that repayment will be made, with interest, either by instalments or in one amount, by a specified date.

VII. Translate the following words, phrases and statements from Russian into English.

Юридическое лицо; риск неплатежа по кредиту; измерять; беречь; канцелярский; младший служащий; данные; брачный статус; питать; неразумный; прошение; направлять; старший; рейтинг общей кредитоспособности заемщика; мнение; представление документов; вероятный; исследовать; ссуда; оценивать; деловое свидание; система оценки потенциальных заемщиков; кредитоспособность.

Кредитоспособность определяется показателями, характеризующими заемщика: его аккуратностью при расчете по ранее полученным кредитам, его текущим финансовым положением, его способностью при необходимости мобилизовать денежные средства из различных источников. Кредитный риск – это вероятность неоплаты задолженности по платежам и обязательствам в установленный контрактом срок.

VIII. Complete the following statements.

1) Credit risk means … 2) Credit risk is assessed … 3) Credit scoring is … 4) The bank saves … by using … 5) Credit scoring demands … 6) Credit scoring includes such data as … 7) The loan application is referred … when … 8) Creditrating is … and is obtained through … 9) The function of creditanalyst is …

Тема 3. Виды банков.

Study the words and the word-combinations.

deal in — торговать;

deposit — вклад в банк;

derive a profit — извлекать прибыль;

savings deposit — сберегательный вклад на неопределенный срок под процент;

facilitate — способствовать;

funds — денежные средства;

charge fees — начислять комиссионные;

issue — эмиссия;

lender of last resort — последний кредитор в критической ситуации;

guarantor — гарант;

monetary system — денежная система

Foster — благоприятствовать;

transition — переход;

entrepreneur — предприниматель;

endeavour — пытаться;

environmentally sound — относящийся к борьбе с загрязнением окружающей среды;

range — ряд;

implement — осуществлять;

demonopolization — демонополизация;

decentralization — децентрализация;

privatization — приватизация;

banking — банковские услуги;

personnel administration — управление кадрами;

evaluation — оценка;

internal audit — внутренняя ревизия

I. Scan through the text. Restore the word order in the questions that follow and answer them.

Bank and its classes

Bank — an institution that deals in money and its substitutes and provides other financial services. Banks accept deposits and make loans and derive a profit from the difference in the interest rates. They also have the power to create money. The two major classes of banks are commercial and central banks. Commercial banks accept savings deposits, make loans and other investments, and offer financial services that facilitate the exchange of funds among individuals and institutions. In addition to the profit derived from the difference in the interest rates, commercial banks charge fees for various services. Central banks are involved in the issue of money and maintain the country’s foreign currency reserves. Central banks maintain the accounts of other banks and supervise their activities. Central banks act as bankers to governments, as the designers of monetary and credit policies, and as lenders of last resort to commercial banks in the case of a financial crisis. Central banks also play a significant psychological role as guarantors of the monetary system. Central banks may be nationalised organisations and are subject to government control, but some of them can have independence from governmental supervision.

1) What meant by the term “bank” is? 2) What banks do accept? 3) What banks make do? 4) What banks derive a profit do from? 5) What do power banks have? 6) What the two major classes of are banks? 7) What commercial banks accept do? 8) What do make commercial banks? 9) What commercial banks offer do? 10) What central banks are involved in? 11) What central banks do maintain? 12) What central banks supervise do? 13) What central banks do act as? 14) What role central banks do play? 15) Are subject to central banks government control or not?

II. Agree or disagree with the following statements.

1) Bank trades in money. 2) Bank gives various financial services. 3) Banks receive deposits. 4) Banks don’t make loans. 5) Banks derive a profit by skilfully deceiving people. 6) Commercial banks aid the exchange of funds among individuals and institutions. 7) Central banks act as bankers to organized crime. 8) Central banks act as the designers of default. 9) Central banks act as the designers of foreign policy. 10) Central banks act as lenders of last resort to counterfeiters. 11) Central banks play an important role as guarantors of the monetary system. 12) Central banks have the right to issue money. 13) Central banks keep the country’s foreign currency reserves. 14) Central banks back up the accounts of other banks. 15) Central banks oversee the activities of other banks. 16) Central banks may be private owned organisations. 17) Central banks are subject to shadow ministers. 18) Central banks are totally dependent on their bank customers.

III. Translate the following words, phrases and statements from Russian into English.

Торговать; сберегательный вклад на неопределенный срок под процент; способствовать; денежные средства; начислять комиссионные; валютная политика; кредитная политика; последний кредитор в критической ситуации; денежная система; вклад в банк; ссуда; извлекать прибыль; процентная ставка.

1) Банк торгует деньгами и их заменителями. 2) Банк обеспечивает различные финансовые услуги. 3) Банк принимает депозиты. 4) Банки предоставляют займы. 5) Банки получают прибыль из разницы в процентных ставках. 6) Банки могут быть независимы от правительственного контроля.

IV. Complete the following statements.

1) Bank deals in … 2) Bank provides … 3) Banks accept … 4) Banks make … 5) Banks derive … 6) Banks have … 7) The two major classes of banks are … 8) Commercial banks accept … 9) Commercial banks make … 10) Commercial banks offer … 11) Commercial banks charge … 12) Central banks are involved in … 13) Central banks maintain … 14) Central banks supervise … 15) Central banks act as … 16) Central banks play … 17) Central banks may be … 18) Central banks are subject to … 19) Central banks can have …

Bank of England

directives — инструкции;

increase — рост;

viability — жизнеспособность;

consistency — согласованность;

adjustable — регулируемый;

variable — переменный;

maturities — сроки платежа;

disburse — платить;

charge — требовать;

commitment fee — комиссия за обязательство предоставить кредит;

Banking — банковские услуги;

issue — эмиссия;

balance sheet — балансовый отчет;

Exchange Equalisation Account — Фонд (счет) стабилизации валюты (золотые и валютные резервы страны);

equalize — уравнять;

treasury bill — казначейский вексель (краткосрочная, срок действия до 1 года, правительственная ценная бумага, регулярно поступающая в обращение);

The central bank in the UK is the Bank of England. Established in 1694 by Royal Charter, it had a capital of £1 200 000. This charter was renewed periodically and over the course of time, the Bank of England very gradually moved from being a commercial to being a central bank. Under the 1844 Bank Charter Act the Bank of England was divided into departments — the Banking Department and the Issue Department. Both these departments had to issue a balance sheet each week and still do. The Bank of England acquired the note issuing monopoly in England and Wales. Its present functions are (a) banker to the government; (b) bankers’ bank; (c) manages the Exchange Equalisation Account [Exchange equalisation account — an account held at the Bank of England for the Treasury that contains the country’s foreign currency and gold reserves. This account is used to stabilise the value of sterling against other international currencies, so that if the Bank of England considers that sterling is drifting too low, it will buy sterling with funds from the account, or if sterling is becoming expensive the Bank of England will sell sterling and receive foreign currency and replenish the account.]; (d) handles the issue of Treasury bills; (e) supervises the banking institutions in the UK; (f) maintains the sterling accounts of other central banks and international organisations; (g) lender of last resort; (h) the note issuing authority in England and Wales.

1) What bank the central bank in the UK is? 2) When it was established? 3) What it established by was? 4) What capital it did have? 5) How that charter was renewed? 6) How the Bank of England move did over the course of time? 7) How the Bank of England divided was? 8) What those departments have to did do? 9) What the Bank of England did acquire? 10) What its present functions are?

VI. Agree or disagree with the following statements.

1) The Bank of England is one of the commercial banks in the UK. 2) The Bank of England is a borrowing bank from the government. 3) The Bank of England manages the gold and currency reserves of the nation. 4) The Bank of England handles the issue of long-term bills. 5) The Bank of England supervises the educational institutions in the UK. 6) The Bank of England has nothing to do with the sterling accounts of other central banks. 7) The Bank of England can scarcely be a lender of last resort. 8) The Bank of England does not participate in banknote circulation in England. 9) The Treasury is a government department that controls the money that the country collects and spends.

VII. Translate the following words, phrases and statements from Russian into English.

Учреждать; приобретать; банкнот; королевская хартия; управлять; казначейство; полагать; обновлять; со временем; банковские услуги; эмиссия; балансовый отчет; дрейфовать; счет стабилизации валюты; уравнять; казначейский вексель; последний кредитор в критической ситуации; снова наполнять.

1) Английский банк является центральным банком в Великобритании. 2) Банк Англии является банкиром правительства. 3) Английский банк обслуживает счета в фунтах стерлингов других стран. 4) Банк Англии выступает как последнее средство при получении кредита. 5) Этот банк является учреждением, которое уполномочено выпускать банкноты английской национальной валюты. 6) Английский банк не имеет право выпускать банкноты необеспеченные драгоценными металлами. 7) Общественность доверяет банкнотам, выпущенным в обращение Английским банком.

VIII. Complete the following statements.

1) The Bank of England is … 2) The Bank was established in … by … 3) The Bank had … 4) The Bank moved from … to … 5) The Bank was divided into … 6) The Bank’s departments had to … 7) The Bank acquired … 8) The Bank’s present functions are … 9) The Exchange Equalisation Account is …

Тема 4. Фондовая биржа.

stock exchange — фондовая биржа;

sale — продажа;

purchase — покупать;

securities — ценные бумаги;

share — акция;

bond — облигация;

ready market — большой спрос;

ensure — обеспечивать;

liquidity — ликвидность (легкость превращения материальных ценностей в наличные деньги);

encourage — поощрять;

channel — направлять в;

savings — сбережения;

determine — определять;

actual value — действительная стоимость;

continuous — постоянный;

auction — торг;

vary — изменяться;

rigour — строгость;

eligibility — обладание правом в силу удовлетворения соответствующим установленным требованиям;

legislation — законодательство;

legislative — законодательный;

Securities — ценные бумаги;

evolve — развиваться;

plane-tree — платан;

adopt — принимать;

purchase — покупать;

speculation — спекуляция;

stock — акция; капитал;

accelerating — ускоряющий;

industrialization — индустриализация;

suffer — терпеть;

disclose — раскрывать;

finances — финансы;

crash — крах;

signal — дать сигнал;

securities and exchange commission — комиссия по ценным бумагам и биржам;

requirements — требования;

outstanding shares — акции, выпущенные в обращение;

stockholder — владелец акций;

financial statement — финансовый отчет;

I. Scan through the text. Restore the word order in the questions that follow and answer them.

Stock exchange

Stock exchange — organized market for the sale and purchase of securities such as shares (share — one of the equal parts into which the ownership of a company is divided) and bonds (bond — an official document promising that a government or company will pay back money that it has borrowed, often with interest). In developed capitalist countries, the stock exchange has important functions: as a ready market for securities, it ensures their liquidity (the state of being readily convertible into cash) and thus encourages people to channel savings into business; and, as a pricing mechanism, it determines prices that reflect the actual value of a company's stock (the capital of a company). Trading is done in various ways: it may occur on a continuous auction basis or it may involve brokers buying and selling shares in a company for other people. Membership requirements of the exchanges of different countries vary mainly with respect to the number of members and the rigour of the eligibility requirements. Membership requirements also differ in the degree to which government participates in their management. The London Stock Exchange, for example, functions as an independent institution, free from government legislation. In the United States, stock exchanges are subject to specific legislative regulation. In Europe, it is quite common for the members of the exchanges to be appointed by a government official and to have semigovernmental status.

1) What meant by the term “stock exchange” is? 2) What functions the stock exchange does have? 2) How trading is done? 3) How membership requirements of the exchanges of different countries do vary? 4) What the London Stock Exchange function as does? 5) What stock exchanges in the United States are subject to? 6) Who the members of the exchanges in Europe appoints? 7) What meant by the term “liquidity” is?

II. Agree or disagree with the following statements.

1) Stock exchange is a place where shares are bought and sold. 2) Stock exchange is not a ready market for securities. 3) Stock exchange keeps people from putting savings into business. 4) Stock exchange is a pricing device. 5) Stock exchange determines the exact value of a company's stock. 6) Stock exchange trading might be based on an auction basis. 7) Stock exchange trading must not involve brokers. 8) Stock exchange may act as an independent institution. 9) Stock exchange stands upon government legislation. 10) Stock exchange might have semi-official status.

III. Translate the statements from Russian into English.

1) Фондовая биржа – это организованный и регулярно функционирующий рынок по купле-продаже ценных бумаг. 2) Фондовая биржа мобилизует временно свободные денежные средства через продажу ценных бумаг. 3) Фондовая биржа устанавливает рыночную стоимость ценных бумаг. 4) Фондовая биржа осуществляет перелив капитала между компаниями, отраслями и сферами. 5) Биржа может функционировать как независимый институт. 6) Биржа может иметь полуофициальный статус. 7) Члены биржи назначаются правительственными чиновниками.

IV. Complete the following statements.

1) Stock exchange is … 2) As a ready market for securities, stock exchange ensures … 3) Stock exchange encourages … 4) As a pricing mechanism, stock exchange determines … 5) Stock exchange trading may occur … 6) Stock exchange trading may involve … 7) Membership requirements vary … 8) Membership requirements differ … 9) The London Stock Exchange functions … 10) In the United States, stock exchanges are … 11) In Europe, the members of the exchanges may be appointed by … and may have …

Товарная биржа.

commodity exchange — товарная биржа;

futures market — рынок сделок на срок;

futures contract — фьючерский контракт;

trade — торговать (in — чем-либо; with — с кем-либо);

binding — обязывающий;

specify — точно определять;

open outcry — свободный биржевой торг;

whereby / wherewith — посредством чего;

generate — порождать;

sufficient volume — достаточный объем;

two-way business — двусторонние сделки;

owing to — вследствие;

associate — связывать;

insurance — страховой;

adverse movements — неблагоприятные изменения;

interest rate — процентная ставка;

expectation — ожидание;

commit — вверять;

speculation — спекуляция, игра на бирже;

purchase — покупать; покупка;

asset — имущество;

on the assumption that — при условии, что

Chicago Board of Trade — Чикагская торговая палата;

grain — зерно;

voluntary — добровольный;

association — союз;

prominent — выдающийся;

merchants — купцы;

wheat — пшеница;

outlying — отдаленный;

enable — давать возможность;

avoid — избегать;

legislature — законодательная власть;

incorporate — регистрировать как корпорацию;

legislative — законодательный;

sell by sample — продавать по образцам;

grade — сортировать;

standardize — стандартизировать;

facilitate — содействовать;

access — доступ;

trading floor = pit — операционный зал товарной биржи;

pit — яма;

account — выгода;

eventually — со временем;

term — термин;

volume — объем;

value — стоимость;

corn — кукуруза;

oats — овес;

rye — рожь;

soy-bean — соевый боб;

oil — масло.

I. Scan through the text. Restore the word order in the questions that follow and answer them.

Commodity Exchange

Commodity Exchange – also called Futures Market, or Futures Exchange, organized market where futures contracts are traded. A futures contract represents a binding agreement to buy a commodity at a specified price on a specified future date. Thus it is possible for a trader to obtain a guarantee for the price he will have to pay for a commodity in the future. The method of obtaining a price is usually in open outcry in the commodity exchange. There are two basic types of traders in a futures market: hedgers and speculators. Both are necessary to the market in order to generate a sufficient volume of two-way business. Hedging – the process whereby a dealer or investor will seek to gain some protection against the possible loss of their investment owing to some sudden movement in the market. Hedgers seek to avoid or minimize the financial risks associated with their current commercial activity by taking out an insurance policy in the shape of a futures contract against adverse price or interest-rate movements. On the other hand, the speculator, in the expectation of making a profit, seeks risk by committing his funds to back his own view of higher or lower prices or interest rates. Speculation – a risk on the purchase of an asset (an item of property or value) that it will rise at some time in the near future and can be sold for a profit, or the sale of an asset on the assumption that its price will drop and it can be purchased at a lower price, hence make a profit.

1) Where futures contracts are traded? 2) What a futures contract does represent? 3) Wherewith a trader can obtain a guarantee for the price he is to pay for a commodity? 4) What the method of obtaining a price is in? 5) What dealers a sufficient volume of two-way business generate? 6) What hedgers do seek? 7) What do hedgers financial risks by minimize? 8) Why the speculator does seek risk? 9) What the speculator does seek risk by? 10) What meant by the term “hedging” is? 11) What meant is by the term “speculation”?

II. Agree or disagree with the following statements.

1) A futures contract deals with a commodity at a specified price on a specified future date. 2) A futures contract is a contract to buy or to sell a specific amount of a named commodity or financial paper at an agreed price on a given future date. 3) There are three basic types of traders in a futures market. 4) Hedgers seek financial risks. 5) Hedgers seek to minimize financial risks. 6) Speculators seek to avoid financial risks. 7) Buying a house will be a hedge against inflation. 8) One may buy gold or diamonds as a hedge against inflation. 9) To speculate means to buy goods in a company hoping that you will make a large profit when you sell them.

III. Translate the statements from Russian into English.

1) Фьючерский рынок имеет дело с фьючерскими контрактами. 2) Фьючерский контракт – это контракт, заключаемый по фиксируемой в момент заключения контракта цене с исполнением через определенный промежуток времени. 3) Хеджеры стремятся избегать финансовых рисков. 4) Спекулянты ищут финансовые риски. 5) Спекуляция – это купля-продажа биржевых ценностей с целью получения прибыли от разницы между покупной и продажной ценой при перепродаже этих ценностей.

IV. Complete the following statements. 1) Commodity Exchange is … 2) A futures contract represents … 3) A futures contract allows a trader to obtain … 4) The method of obtaining a price is … 5) Hedgers and speculators are necessary to … 6) Hedgers seek … 7) In the expectation of … speculators seek … 8) Hedging is … 9) Speculation is …

Тема 5. Виды налогов.

 tax return — налоговая декларация;

 legal provision — правовая норма;

 transfer of property — передача собственности;

 inheritance tax — налог на наследство;

 real property — недвижимость;

 personal property — движимое имущество;

 pertinent — имеющий отношение;

 balance sheet — балансовый отчет;

 statement — официальный отчет;

 minutes — протокол;

 attach — прикладывать;

 compute — подсчитывать;

 assume — предполагать;

 otherwise — иначе;

 liability — обязательство;

minority — меньшинство;

 audit — ревизия;

 timely — своевременный;

 arithmetical — арифметический;

 accuracy — точность.

income tax — подоходный налог;

 inheritance tax — налог на наследство;

 real estate tax — налог на недвижимость;

 sales tax — налог с оборота;

 sales — сбытовые операции;

 value-added tax (VAT) — налог на добавленную стоимость;

 excise tax — акцизный налог;

 ability to pay — платежеспособность;

 net — чистый;

 levy – сбор, взимать;

 in excess of — сверх;

 stipulate – обусловливать;

 adjust — приспосабливать;

 graduated income-tax — прогрессивный подоходный налог;

 rate — (налоговая) ставка;

 impose — облагать;

 consumption — потребление.

Classes of taxes

Taxes are most commonly classified as either direct or indirect, an example of the former type being the income tax (inheritance tax, real estate tax) and of the latter the sales tax (value-added tax, excise tax). Direct taxes are taxes on persons; they are aimed at the individual's ability to pay as measured by his income or his net wealth. Income taxes are levied on total personal net income in excess of some stipulated minimum. They are also adjusted to take into account the circumstances influencing the ability to pay of the individual, such as family status, number and age of children, and financial burdens resulting from illness. Income taxes are often levied at graduated rates, that is, at rates that rise as income rises. Inheritance taxes are taxes on the money or property that you give to someone else after you die. Real estate taxes are taxes imposed upon immovable property consisting of land, any natural resources, and buildings. Indirect taxation is a system of collecting taxes by adding an amount to the price of goods and services that people buy. Sales tax is a tax that you have to pay in addition to the cost of something you are buying. Value-added taxes are taxes on the rise in value of a product at each stage of manufacture and marketing. Sales tax levied on the manufacture, purchase, sale, or consumption of a specific commodity is known as an excise tax.

1) What taxes are classified as? 2) What are direct taxes mentioned in the text? 3) What mentioned indirect taxes are in the text? 4) What direct taxes aimed at are? 5) What income taxes levied are on? 6) What income taxes adjusted are to? 7) What circumstances the ability to pay of the individual influence? 8) What rates income are taxes levied at? 9) What meant by the term “inheritance tax” is? 10) What is by the term meant “real estate tax”? 11) What indirect taxation does collect taxes by? 12) What meant by the term “sales tax” is? 13) What meant by the term “value-added tax” is? 14) What known as an excise tax is?

VI. Agree or disagree with the following statements.

1) Taxes may be either direct or indirect. 2) Inheritance taxes are indirect taxes. 3) Excise taxes are direct taxes. 4) Direct taxes are taxes on landowners. 5) Direct taxes are aimed at the individual's inability to pay. 6) The individual's ability to pay is measured by his gross profit. 7) Income taxes are imposed on total personal net income. 8) Income taxes have respect to the circumstances influencing the ability to pay of the individual. 9) Income taxes are progressive taxes. 10) Direct taxation collects taxes by adding an amount to the price of goods and services. 11) Direct tax is a tax exacted directly from the taxpayer. 12) Indirect tax is a tax on a commodity which is collected from the manufacturer or supplier, but is ultimately paid by the consumer. 13) Income tax is a tax paid on the money that you earn. 14) Progressive tax is a tax that takes a larger percentage of money from people with higher incomes than from people with lower incomes.

VII. Translate the statements from Russian into English.

1) Налоги бывают двух видов: прямые и косвенные. 2) Подоходным налогом облагается чистый личный доход человека. 3) Налог на добавленную стоимость – это система налогообложения продуктов на сумму стоимости, добавленной на каждом этапе их производства и обмена. 4) Налог с оборота – это налог с продаж товаров и услуг. 5) Налог с оборота – это косвенный налог.

VIII. Complete the following statements. 1) Taxes are classified as … 2) Direct taxes include … 3) Indirect taxes include … 4) Direct taxes are taxes on … 5) Direct taxes are aimed at … 6) Income taxes are levied on … 7) Income taxes are adjusted … 8) Income taxes are levied at … 9) Inheritance tax is … 10) Real estate tax is … 11) Indirect taxation is … 12) Sales tax is …

Тема 6. Виды компаний.

entrepreneur — предприниматель;

entrepreneurship — предпринимательство;

rate of economic growth — темп экономического роста;

argue — спорить (with, against - с кем-либо, about - o чем-либо);

undertake – брать на себя;

identical — одинаковый;

fixed assets — основные фонды;

necessarily — обязательно;

enterprise investment — вложение капитала в предприятие;

introduction — введение;

techniques — технология;

labour productivity — производительность труда;

hesitation — колебание;

ignorance — невежество;

marginal — несущественный;

gross national product — валовой национальный продукт;

enterprise — предприятие;

individual proprietor — единоличный собственник;

partnership — товарищество;

limited liability company — компания с ограниченной ответственностью;

brokerage house — брокерская фирма;

agency — агентство;

varied — разнообразный;

contribution — долевой взнос;

whenever — всякий раз когда;

constitute — учреждать;

incur — подвергаться;

extend — простираться;

assets — имущество;

acceptance — принятие;

vital — жизненно важный;

large-scale industry — крупная промышленность;

enable — дать возможность;

entire — целый;

fortune — судьба, богатство.

Company

Company is an organization that makes or sells goods or services in order to get money. Business enterprises usually take one of three forms: individual proprietorships, partnerships, or limited-liability companies. In the first form, a single person holds the entire operation as his personal property, usually managing it on a day-to-day basis. Most businesses are of this type. The second form, the partnership, may have from two to 50 or more members, as in the case of large law and accounting firms, brokerage houses (companies of brokers), and advertising agencies. This form of business is owned by the partners themselves; they may receive varied shares of the profits depending on their investment or contribution. Whenever a member leaves or a new member is added, the firm must be reconstituted as a new partnership. The third form, the limited-liability company, functions on the basis of limited liability.Limited liability is the legal position under which the loss that an owner (shareholder) of a business firm may incur is limited to the amount of capital invested by him in the business and does not extend to his personal assets. Acceptance of this principle by business enterprises and governments was a vital factor in the development of large-scale industry, because it enabled business firms to mobilize large amounts of capital from a wide variety of investors who were understandably unwilling to risk their entire personal fortunes in their investments.

1) What by the term “company” is meant? 2) What forms business enterprises usually do take? 3) What is by the term “individual proprietorship” meant? 4) What meant by the term “partnership” is? 5) What the is third form of business enterprises? 6) What meant is by the term “limited liability”?

VI. Agree or disagree with the following statements.

1) Company makes or sells goods or services in order to get profit. 2) Proprietor is an owner of a business. 3) Individual proprietor keeps the entire operation as his rented property. 4) Individual proprietor manages his personal property on a from time to time basis. 5) Partnership is a business owned by two or more partners who share the profits and losses. 6) Partners share the profits and losses according to their investment or contribution. 7) Whenever a partner leaves or a new partner is added, the firm must be reconstituted as a new partnership. 8) Sleeping (silent) partner is someone who owns part of a business but is not actively involved in operating it. 9) Limited liability company is a company whose owners only have to pay a limited amount if the company gets into debt. 10) Limited liability is the legal position of being responsible for paying only a limited amount of debt if something bad happens to yourself or your company.

VII. Translate the following questions from Russian into English and answer them.

1) Компания продаёт товары и услуги, чтобы заработать деньги, не так ли? 2) Компанией может владеть индивидуальный собственник, не так ли? 3) Компания может быть собственностью товарищества, не так ли? 4) Компания с ограниченной ответственностью функционирует на основе принципа ограниченной ответственности, не так ли? 5) Ограниченная ответственность – это ограничение возмещения убытков от хозяйственной деятельности суммой вложенного капитала?

VIII. Complete the following statements.

1) Company is … 2) Business enterprises take … 3) The first form of business is … 4) The second form of business is …5)The third form of business is … 6) Individual proprietor holds … 7) Individual proprietor manages … 8) Partners receive … 9) Whenever a partner leaves … 10) Limited-liability company functions … 11) Limited liability is … 12) Limited liability enables business firms to … 13) Investors are understandably unwilling to …