1.

Microeconomics is generally the study of individuals and business decisions,

macroeconomics looks at higher up country and government decisions. Macroeconomics and
microeconomics, and their wide array of underlying concepts, have been the subject of a great deal of
writings. The field of study is vast; here is a brief summary of what each covers:
Microeconomics is the study of decisions that people and businesses make regarding the allocation
of resources and prices of goods and services. This means also taking into account taxes and regulations
created by governments. Microeconomics focuses on supply and demand and other forces that determine
the price levels seen in the economy. For example, microeconomics would look at how a specific
company could maximize its production and capacity so it could lower prices and better compete in its
industry. 
2. Macroeconomics, on the other hand, is the field of economics that studies the behavior of
the economy as a whole and not just on specific companies, but entire industries and economies. This
looks at economy-wide phenomena, such as Gross National Product (GDP) and how it is affected by
changes in unemployment, national income, rate of growth, and price levels. For example,
macroeconomics would look at how an increase/decrease in net exports would affect a nation's capital
account or how GDP would be affected by unemployment rate.
While these two studies of economics appear to be different, they are actually interdependent and
complement one another since there are many overlapping issues between the two fields. For example,
increased inflation (macro effect) would cause the price of raw materials to increase for companies and
in turn affect the end product's price charged to the public.

4. Three Economic Questions: What, How, For Whom?

In order to meet the needs of its people, every society must answer three basic economic questions:
 What should we produce?
 How should we produce it?
 For whom should we produce it?
A society (or country) might decide to produce candy or cars, computers or boots. The goods might be
produced by unskilled workers in privately owned factories or by technical experts in government-
funded laboratories. Once they are made, the goods might be given out for free to the poor or sold at
high prices that only the rich can afford. The possibilities are endless.
Although every society answers the three basic economic questions differently, in doing so, each
confronts the same fundamental problems: resource allocation and scarcity.
Resources are all of the ingredients needed for production, including physical materials (such as land,
coal, or timber), labor (workers), technology (not just computers). Scarcity refers to the essential fact
that people’s wants or desires are always going to be greater than the resources available to fulfill those
wants. Simply put, scarcity means that resources are limited. No country can produce everything.
Because of the constraints of scarcity, then, decisions must be made about resource allocation (that is,
how best to allocate, or distribute, resources for the maximum benefit of the society).
5. Scarcity of Resources
The concept of scarcity is essential to the field of economics. A resource is considered scarce when
its availability is not enough to meet its demand. Scarcity is based on the idea that often a limited supply
of goods or services comes up against an ever increasing demand for it and that, as such, every effort
must be made to ensure its proper utilization and distribution so as to avoid inefficiency. Most goods and
services can be defined as scarce since individuals desire more of them than they already possess
(scarcity is maintained by demand). Those that are readily abundant are referred to as free goods.
The scarcity of goods and services is brought about by factors such as the limited supply of
resources (for example, water, land or people) and the limited capabilities of technology or human skill
(for example, those needed for better production). Sometimes the insufficiencies are a result of poor
planning and execution. In such cases, the scarcity is considered artificial. Scarcity is managed by
making choices regarding value so that individuals can exchange resources in a system of trade.
Scarcity is the fundamental economic problem of having humans who have unlimited wants and needs
in a world of limited resources. It states that society has insufficient productive resources to fulfill all
human wants and needs. Alternatively, scarcity implies that not all of society's goals can be made at the
same time; trade-offs are made of one good against others.

6. Opportunity Cost
Opportunity cost refers to a benefit that a person could have received, but gave up, to take another
course of action. Speaking differently, an opportunity cost represents an alternative given up when a
decision is made.
Opportunity Cost = Return of Most Profitable Option - Return of Chosen Option
Assume the company in the above example decides to forgo new equipment and invests in the stock
market instead. If the selected securities decrease in value, the company could end up losing money
rather than enjoying the future return.
When making big decisions like buying a home or starting a business, you will likely honestly research
the pros and cons of your financial decision, but most of our day-to-day choices aren't made with a full
understanding of the potential opportunity costs. If they're careful about a purchase, most people just
look at their savings account and check their balance before spending money. For the most part, we don't
think about the things that we must give up when we make those decisions.

7. Factors Of Production. Land and labour.

Factors of production are an economic term that describes the inputs that are used in the production of
goods or services in order to make an economic profit. The factors of production include land, labor,
capital and entrepreneurship. Factors of production include any resource needed for the creation of a
good or service.
Land represents all natural resources, such as timber and gold, used in the production of a good. Labor
includes all of the work that workers perform at all levels of an organization, except for the entrepreneur.
Land:
 Land includes all natural physical resources – e.g. fertile farm land, the benefits from a
temperate climate or wind power and solar power and other forms of renewable energy.
 Some nations are richly endowed with natural resources and then specialise in the their extraction
and production – for example – the high productivity of the vast expanse of farm land in the
United States and the oil sands in Alberta, Canada. Other countries such as Japan are heavily
reliant on importing these resources.
Labour:
 Labour is the human input into production e.g. workers available and their productivity
 An increase in the size and the quality of the labour force is vital if a country wants to achieve
growth. In recent years the issue of the migration of labour has become important.

8. Factors Of Production. Capital and entrepreneurship

Factors of production are an economic term that describes the inputs that are used in the production of
goods or services in order to make an economic profit. The factors of production include land, labor,
capital and entrepreneurship. Factors of production include any resource needed for the creation of a
good or service.
The entrepreneur is the individual who takes an idea and attempts to make an economic profit from it
by combining all other factors of production. The entrepreneur also takes on all of the risks and rewards
of the business. Capital is made up of all of the tools and machinery used to produce a good or service.
Capital:
 Capital goods are used to produce other consumer goods and services in the future
 Fixed capital includes machinery, equipment, new technology, factories and other buildings
 Working capital means stocks of finished and semi-finished goods (or components) that will be
either consumed in the near future or will be made into consumer goods
Entrepreneurship
 Regarded by some as a specialised form of labour input
 An entrepreneur is an individual who supplies products to a market to make a profit
  Entrepreneurs will usually invest their own financial capital in a business and take on the risks.
Their main reward is the profit made from running the business

9. Supply and demand is perhaps one of the most fundamental concepts of economics and it is
the backbone of a market economy. Demand refers to how much (quantity) of a product or service is
desired by buyers. The quantity demanded is the amount of a product people are willing to buy at a
certain price; the relationship between price and quantity demanded is known as the demand
relationship. Supply represents how much the market can offer. The quantity supplied refers to the
amount of a certain good producers are willing to supply when receiving a certain price. The correlation
between price and how much of a good or service is supplied to the market is known as the supply
relationship. Price, therefore, is a reflection of supply and demand.
A. The Law of Demand
The law of demand states that, if all other factors remain equal, the higher the price of a good, the less
people will demand that good. In other words, the higher the price, the lower the quantity demanded.
The amount of a good that buyers purchase at a higher price is less because as the price of a good goes
up, so does the opportunity cost of buying that good. As a result, people will naturally avoid buying a
product that will force them to forgo the consumption of something else they value more. The chart
below shows that the curve is a downward slope.
The Law of Supply
Like the law of demand, the law of supply demonstrates the quantities that will be sold at a certain price.
But unlike the law of demand, the supply relationship shows an upward slope. This means that the
higher the price, the higher the quantity supplied. Producers supply more at a higher price because
selling a higher quantity at a higher price increases revenue.

10. Economic Equilibrium

A condition or state in which economic forces are balanced. These economic variables will be
unchanged from their equilibrium values in the absence of external influences. Economic equilibrium
may also be defined as the point where supply equals demand for a product – the equilibrium price is
where the hypothetical supply and demand curves intersect.
The term 'economic equilibrium' can also be applied to any number of variables (переменные),
such as the interest rate that allows for the greatest growth of the banking and non-financial sector.   
Economic equilibrium can be static or dynamic and may exist in a single market or multiple markets.
It can be disrupted by exogenous (внешний) factors, such as a change in consumer preferences, which
can lead to a drop in demand and consequently a condition of oversupply in the market. In this case, a
temporary state of disequilibrium will prevail until a new equilibrium price or level is established, at
which point the market will revert back to economic equilibrium.

Price of market balance: P – price, Q - quantity of good, S – supply,

D – demand, P0 - price of market balance, A - surplus of demand - when P<P0, B - surplus of
supply - when P>P0
In economics, economic equilibrium is a state of the world where economic forces are balanced
and in the absence of external influences the (equilibrium) values of economic variables will not change.
It is the point at which quantity demanded and quantity supplied are equal. Market equilibrium, for
example, refers to a condition where a market price is established through competition such that the
amount of goods or services sought by buyers is equal to the amount of goods or services produced by
sellers. This price is often called the equilibrium price and will tend not to change unless demand or
supply change.
12. PUBLIC/PRIVATE GOODS
A pure public good is a good or service that can be consumed simultaneously by everyone and from which no one
can be excluded. Pure public goods pose a free-rider problem (проблема безбилетника). A pure private good is
one for which consumption is rival and from which consumers can be excluded.
Some goods are non-excludable (неисключаемый (об общественном благе, от потребления которого
невозможно отстранить неплательщиков) but are rival (конкурент) and some goods are non-rival but are
excludable. The first feature of a public good is called non-rivalry (несоперничество). A good is non-rival if
consumption of one unit by one person does not decrease available units for consumption by another person. An
example of non-rival consumption is watching a television show.
A private good, by contrast, is rival. A good is rival if consumption of one unit by one person does decrease
available units for consumption by another person. An example of rival consumption is eating a burger.

Many goods have a public element but are not pure public goods. An example is a motorway. A motorway is non-
rival until it becomes congested (перекрыт). One more car on the Delhi Ring Road with plenty of space does not
reduce the consumption of road services of anyone else.
But once the motorway becomes congested, one extra vehicle lowers the quality of the service available for
everyone else — it becomes rival like a private good. Also, users can be excluded from a motorway by toll gates.
Another example is fish in the ocean.
Ocean fish are rival because a fish taken by one person is not available for anyone else. But ocean fish are non-
excludable because it is difficult to stop other countries taking them if they are outside a country’s territorial
limits.
Public goods create a free-rider problem. A free rider is a person who consumes a good without paying for it.
Public goods create a free rider problem because the quantity of the good that they person is able to consume is
not influenced by the amount the person pays for the good. Markets fail to supply a public good because no one
has an incentive (мотив) to pay for it.

13. GDP
Four major components of GDP are: 1. Private Consumption Expenditure (C) 2. Investment Expenditure (I) 3.
Government Purchases of Goods and Services (G) 4. Net Exports (X – M)!
1. Private Consumption Expenditure (C):
(Consumption spending by households) —This component measures the money value of consumer goods and
services which are purchased by households and non-profit institutions for current use.
2. Investment Expenditure (I):
Investment means additions to the physical stock (реальный запас) of capital during a period of time: Gross
Private Domestic Investment shows the aggregate value in this regard. Investment Includes building of machinery
housing construction, construction of factories and offices and additions to a firm’s inventories of goods.
Whereas intermediate goods are used up in the process of making other goods, capital goods (like machinery,
building, etc.) get partially depleted in producing other goods and services. This is called depreciation of fixed
capital goods.
Depreciation is fall in the value of the existing capital stock which has been consumed or used up in the process of
producing output, {see Section 6.6 part 14] Investment can be gross and net. Gross investment includes value of
depreciation whereas net investment is obtained by deducting depreciation value from gross Investment.
four categories:
(a) Business Fixed Investment: (вложения в основной капитал)
It is the amount which business units spend on purchase of newly produced capital goods like plant and
equipment.
(b) Inventory Investment (or change in stock):
It is the net change in inventories (stock) of final goods awaiting sale of finished goods, semi-finished goods and
raw material.
(c) Residential Construction Investment:
This is the amount spent on construction of flats and residential houses. The investment is said to be gross when
depreciation is not deducted. Net investment is gross investment minus depreciation.
(d) Public Investment:
This includes capital formation by government in the form of building of roads, bridges, canals, schools, hospitals,
etc.
3. Government Purchases of Goods and Services (G):
This component summarises government spending on goods and services. It includes (i) purchase of
intermediate goods and (ii) wages and salaries paid by the government. Such government purchases are
treated as part of the final product. Transfer payments which are made by government to households and
firms are not counted as part of GDR This is to avoid double counting since the consumption or
investment by recipients of the transfer payments is counted in C and I.4. Net Exports: It shows the
difference between domestic spending on foreign goods (i.e., imports) and foreign spending on
domestic goods (i.e., exports). Thus, the difference between Exports (X) and Imports (M) of a
country is called Net Exports (X- M).

17. Oligopoly
Market situation between, and much more common than, perfect competition (having many suppliers)
and monopoly (having only one supplier). In oligopolistic markets, independent suppliers (few in
numbers and not necessarily acting in collusion) can effectively control the supply, and thus the price,
thereby creating a seller's market. They offer largely similar products, differentiated mainly by heavy
advertising and promotional expenditure, and can anticipate the effect of one another's marketing
strategies. Examples include airline, automotive, banking, and petroleum markets. Mirror image of
oligopsony. (рыночная структура, характеризующаяся ограниченным числом покупателей и
большим числом продавцов и обеспечивающая...)

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18. Monopoly
Market situation where one producer (or a group of producers acting in concert) controls supply of a
good or service, and where the entry of new producers is prevented or highly restricted. Monopolist
firms (in their attempt to maximize profits) keep the price high and restrict the output, and show little or
no responsiveness to the needs of their customers. Most governments therefore try to control monopolies
by
(1) imposing price controls,
(2) taking over their ownership (called 'nationalization'), or
(3) by breaking them up into two or more competing firms.
Sometimes governments facilitate the creation of monopolies for reasons of national security, to realize
economies of scale for competing internationally, or where two or more producers would be wasteful or
pointless (as in the case of utilities).
Although monopolies exist in varying degrees (due to copyrights, patents, access to materials, exclusive
technologies, or unfair trade practices) almost no firm has a complete monopoly in the era of
globalization.

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19. Franchising
A form of business organization in which a firm which already has a successful product or service
(the franchisor) enters into a continuing contractual relationship with other businesses (franchisees)
operating under the franchisor's trade name and usually with the franchisor's guidance, in exchange for a
fee. Some of the most popular franchises in the United States include Subway, McDonalds, and 7-
Eleven.
Franchising began back in the 1850's when Isaac Singer invented the sewing machine. In order to
distribute his machines outside of his geographical area, and also provide training to customers, Singer
began selling licenses to entrepreneurs in different parts of the country. In 1955 Ray Kroc took over a
small chain of food franchises and built it into today's most successful fast food franchise in the world,
now known as McDonald's. McDonald's currently has the most franchise units worldwide of any
franchise system.

20. Subcontracting (outsourcing). Definition, role in modern

business.
Business leaders often mix the lines between outsourcing and subcontracting, but both practices are
distinct, and each is governed by specific rules and regulations. The primary difference is the amount of
control a company has over the work process and if the task could be performed by an in-house
department. Outsourcing was first recognized as a business strategy in 1989 and became an integral part
of international business economics throughout the 1990s. During the early 2000s, outsourcing became a
buzzword for businesses of all sizes, causing confusion between what qualifies as subcontracting and
what is truly outsourcing.
Subcontracting is an older term that traditionally refers to the practice of hiring an outside company or
provider to perform specific parts of a business contract or project. In most cases, a company
subcontracts another business to perform a task that cannot be handled internally. The subcontracting
company and the provider work closely throughout the project, and the hiring party has a reasonable
amount of control over the process.
Tasks that are outsourced, on the other hand, generally refer to processes that could be performed by a
company's internal staff. Outsourcing provides a more cost-efficient solution by reserving business
resources for other tasks. A company may contract an outside provider to manage its technology
needs, so existing personnel can remain focused on production or sales. The third-party provider
works independently to perform the necessary task, communicating on an as-needed basis.
The difference between outsourcing and subcontracting is subtle, but it is important to define the
terms when businesses deal with stakeholders and clients.

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22. Business cycle is the natural rise and fall of economic growth that occurs over time.  The
cycle is a useful tool for analyzing the economy. It can also help you make better financial
decisions. Each business cycle has four phases. They are expansion, peak, contraction and
trough. They don’t occur at regular intervals. But they do have recognizable indicators.
Expansion is between the trough and the peak. That's when the economy is growing. Gross domestic
product, which measures economic output, is increasing. The GDP growth rate is in the healthy 2-3
percent range. Unemployment reaches its natural rate of 4.5 to 5.0 percent. Inflation is near its 2 percent
target. 
The peak is the second phase. It is the month when the expansion transitions into the contraction
phase.
The third phase is contraction.  It starts at the peak and ends at the trough. Economic growth
weakens. GDP growth falls below 2 percent.
 When it turns negative, that is what economists call a recession. Mass layoffs make headline news. The
unemployment rate begins to rise. It doesn’t happen until toward the end of the contraction
phase because it's a lagging indicator. Businesses wait to hire new workers until they are sure the
recession is over.
 Stocks enter a bear market as investors sell. 
The trough is the fourth phase. That's the month when the economy transitions from the contraction
phase to the expansion phase. It's when the economy hits bottom.

23. Sole proprietorship

A sole proprietorship, also known as the sole trader or simply a proprietorship, is a type of enterprise
that is owned and run by one natural person and in which there is no legal distinction between the owner
and the business entity. The owner is in direct control of all elements and is legally accountable for the
finances of such business and this may include debts, loans, loss, etc.
The sole trader receives all profits (subject to taxation specific to the business) and has unlimited
responsibility for all losses and debts. Every asset of the business is owned by the proprietor and all
debts of the business are the proprietor's. It is a "sole" proprietorship in contrast with partnerships (which
have at least two owners).
A sole proprietor may use a trade name or business name other than his, her, or its legal name. They may
have to legally trademark their business name if it differs from their own legal name, the process varying
depending upon country of residence.
Advantages of sole trading include that:
 you’re the boss
 you keep all the profits
 start-up costs are low
 you have maximum privacy
 establishing and operating your business is simple
 it’s easy to change your legal structure later if circumstances change
 you can easily wind up your business.
Disadvantages of sole trading include that:
 you have unlimited liability for debts as there’s no legal distinction between private and business
assets
 your capacity to raise capital is limited
 all the responsibility for making day-to-day business decisions is yours
 retaining high-calibre employees can be difficult
 it can be hard to take holidays
 you’re taxed as a single person
 the life of the business is limited.

24. Partnership: types, advantages and disadvantages.

Advantages of a partnership include that:
 two heads (or more) are better than one
 your business is easy to establish and start-up costs are low
 more capital is available for the business
 you’ll have greater borrowing capacity
 high-calibre employees can be made partners
 there is opportunity for income splitting, an advantage of particular importance due to resultant
tax savings
 partners’ business affairs are private
 there is limited external regulation
 it’s easy to change your legal structure later if circumstances change.
Disadvantages of a partnership include that:
 the liability of the partners for the debts of the business is unlimited
 each partner is ‘jointly and severally’ liable for the partnership’s debts; that is, each partner is
liable for their share of the partnership debts as well as being liable for all the debts
 there is a risk of disagreements and friction among partners and management
 each partner is an agent of the partnership and is liable for actions by other partners
 if partners join or leave, you will probably have to value all the partnership assets and this can be
costly.

25. Corporation advantages and disadvantages

A corporation is a legal entity, organized under state laws, whose investors purchase shares of stock as
evidence of ownership in it. The advantages of the corporation structure are as follows:
  Limited liability. The shareholders of a corporation are only liable up to the amount of their
investments. The corporate entity shields them from any further liability.
 Source of capital. A publicly-held corporation in particular can raise substantial amounts by
selling shares or issuing bonds.
 Ownership transfers. It is not especially difficult for a shareholder to sell shares in a corporation,
though this is more difficult when the entity is privately-held.
 Perpetual life. There is no limit to the life of a corporation, since ownership of it can pass through
many generations of investors.
The disadvantages of a corporation are as follows:
 Double taxation. Depending on the type of corporation, it may pay taxes on its income, after
which shareholders pay taxes on any dividends received, so income can be taxed twice.
 Excessive tax filings. Depending on the kind of corporation, the various types of income and
other taxes that must be paid can require a substantial amount of paperwork.
 Independent management. If there are many investors having no clear majority interest, the
management team of a corporation can operate the business without any real oversight from the
owners.

27. The Four Types of Economies

1. Traditional Economic System
The traditional economic system is the most traditional and ancient types of economies in the
world. Vast portions of the world still function under a traditional economic system. These areas tend to
be rural, second- or third-world, and closely tied to the land, usually through farming. In general, in this
type of economic system, a surplus would be rare. 
2. Command Economic System
In a command economic system, a large part of the economic system is controlled by a centralized
power. For example, in the USSR most decisions were made by the central government. This type of
economy was the core of the communist philosophy. Since the government is such a central feature of
the economy, it is often involved in everything from planning to redistributing resources. A command
economy is capable of creating a healthy supply of its resources, and it rewards its people with
affordable prices. This capability also means that the government usually owns all the significant
industries like utilities, aviation, and railroad.
Advantages of Command Economic Systems
 If executed correctly, the government can mobilize resources on a massive scale. This mobility
can provide jobs for almost all of the citizens.
 The government can focus on the good of the society rather an individual. This focus could lead
to a more efficient use of resources.
Disadvantages of Command Economic Systems
 It is hard for the central planners to provide for everyone’s needs. This forces the government to
ration because it cannot calculate demand since it sets prices.
 There is a lack of innovation since there is no need to take any risk. Workers are also forced to
pursue jobs the government deems fit.
3. Market Economic System
In a free market economy, firms and households act in self-interest to determine how resources get
allocated, what goods get produced and who buys the goods. This is opposite to how a command
economy works, where the central government gets to keep the profits.
There is no government intervention in a pure market economy (“laissez-faire“). However, no truly free
market economy exists in the world. For example, while America is a capitalist nation, our government
still regulates (or attempts to control) fair trade, government programs, honest business, monopolies, etc.
Advantages of a Free Market Economy
 Consumers pay the highest price they want to, and businesses only produce profitable goods and
services. There is a lot of incentives for entrepreneurship.
 This leads to the most efficient use of the factors of production since businesses are very
competitive.
  Businesses invest heavily in research and development. There is an incentive for constant
innovation as companies compete to provide better products for consumers.
Disadvantages of a Free Market Economy
 Due to the fiercely competitive nature of a free market, businesses will not care for the
disadvantaged like the elderly or disabled. This leads to higher income inequality.
 Since the market is driven solely by self-interest, economic needs have a priority over social and
human needs like providing healthcare for the poor. Consumers can also be exploited by
monopolies.
4. Mixed Economic System
A mixed economy is a combination of different types of economic systems. This economic system is a
cross between a market economy and command economy.

28. Profits and losses. What must business do in order to make a

profit?
The income statement (also known as the profit-and-loss) details all of the company’s revenues and
expenses — how much the company receives in sales and how much the company spends to make those
sales. After all the additions and subtractions, the final tally (итог) tells you whether the company
earned a profit or suffered a loss and how much. The income statement contains the fundamental
equation for every business:
Sales – Expenses = Net Income
Income statement usually contains more detail, covering the following items (among other things):
 Revenues: Total dollar amount brought in from sales.
 Costs of products sold: This figure represents the costs of buying raw materials and producing
the finished products.
 Gross profit: Deduct the cost of products sold from the total revenues to arrive at gross profit.
o Selling costs include all expenditures to sell the product, such as marketing and travel.
o Administrative includes salaries and other services such as accountants and lawyers.
o General costs encompass the costs to maintain plants and equipment.
 Interest expense: The interest paid on debt.
 Net Income: The true profit after every other possible expense has been paid. The profit is the
bottom line, because it’s the last line on the income statement and what really matters at the end
of each quarter. In the end, does this company make a profit or loss, and how big is it?

29. Leadership Skills in Business

Leadership involves:
establishing a clear vision, sharing that vision with others so that they will follow willingly, providing
the information, knowledge and methods to realize that vision, and coordinating and balancing the
conflicting interests of all members and stakeholders.
A leader steps up (усиливать, повышать) in times of crisis, and is able to think and act creatively in
difficult situations.
Unlike management, leadership cannot be taught, although it may be learned and enhanced through
coaching or mentoring (менторство - способ обучения молодого специалиста или нового
сотрудника, при котором он становится напарником более опытного...). Someone with great
leadership skills today is Bill Gates who, despite early failures, with continued passion and innovation
has driven Microsoft and the software industry to success. The act of inspiring subordinants to perform
and engage in achieving a goal.
Good leaders will listen to employee input, link compensation to expectations, and personally thank and
reward employees. In addition, it is important provide opportunities for employees to practice what
they’ve learned
Good leaders will take this knowledge to heart and provide sound, rational, and ethical leadership to
their employees and their companies. Leaders set the tone for company culture, and there’s no doubt that
culture and performance are directly linked.

31. Basic functions of management

Planning
The planning function of management controls all the planning that allows the organization to run
smoothly. Planning involves defining a goal and determining the most effective course of action needed
to reach that goal. Typically, planning involves flexibility, as the planner must coordinate with all levels
of management and leadership in the organization.
Organizing
The organizing function of leadership controls the overall structure of the company. The organizational
structure is the foundation of a company; without this structure, the day-to-day operation of the business
becomes difficult and unsuccessful. Organizing also involves developing the organizational structure
and chain of command within the company.
Staffing
The staffing function of management controls all recruitment and personnel needs of the organization.
The main purpose of staffing is to hire the right people for the right jobs to achieve the objectives of the
organization. Without the staffing function, the business would fail because the business would not be
properly staffed to meet its goals.
Coordinating
The coordinating function of leadership controls all the organizing, planning and staffing activities of the
company and ensures all activities function together for the good of the organization. Coordinating
typically takes place in meetings and other planning sessions. Coordinating involves communication,
supervision and direction by management.
Controlling
The controlling function of management is useful for ensuring all other functions of the organization are
in place and are operating successfully. Controlling involves establishing performance standards and
monitoring the output of employees to ensure each employee’s performance meets those standards.

33. MANAGEMENT STYLES

Autocratic
An autocratic management style is one where the manager makes decisions unilaterally (в
одностороннем порядке), and without regard for even the most talented and experienced
subordinates. As a result, decisions will reflect the opinions and personality of the manager, project a
false image of a confident, well-managed business, which often hides a chaotic operation. There are two
types of autocratic leaders:
 a directive autocrat makes decisions unilaterally and micro-manages (микроуправление)
subordinates
 a permissive (рекомендующий) autocrat makes decisions unilaterally, but gives subordinates
freedom in carrying out their work
Drawbacks of autocratic management
The autocrat style negates any form of teamwork. The autocrat refuses to delegate authority, for fear of
losing authority. on.
Consultative
A more paternalistic form is also essentially dictatorial. However, decisions do take into account the best
interests of the employees as well as the business. Communication is again generally downward, but
feedback to the management is encouraged to maintain morale. This style can be highly advantageous
when it engenders (порождать) loyalty from the employees. On the other hand, for a consultative
management style the lack of worker motivation can be typical.
Persuasive
A persuasive management style involves the manager sharing some characteristics with that of an
autocratic manager. The most important aspect of a persuasive manager is that they maintain control
over the entire decision-making process. The most prominent difference here is that the persuasive
manager will spend more time working with their subordinates in order to try to convince them of the
benefits of the decisions that have been made.
Disadvantages of a persuasive style
1. There may not be enough or even an entire lack of support from employees for management.
2. A system that has no input from employees minimises access to one of the most valuable
resources that a business has.
3. One-way communication models are unlikely to be effective when compared to two-way
communication.
Democratic
In a democratic style, the manager allows the employees to take part in decision-making: therefore
everything is agreed upon by the majority. The communication is extensive in both directions (from
employees to leaders and vice versa). This style can be particularly useful when complex decisions need
to be made that require a range of specialist skills.
Chaotic
A modern style of management, chaotic management gives the employees total control over the
decision-making process. Some companies have adopted this style of management and in return have
become some of the most influential and innovative companies.
Laissez-faire
Laissez-faire management takes a back seat role in the company providing guidance when needed,
employees are allowed to let their own ideas and creativity flourish in their specific areas. The manager
is looked upon as more of a mentor than a leader.
35. The Definition of Motivation in Management
Motivation in management describes ways in which managers promote productivity in their
employees. Motivation actually describes the level of desire employees feel to perform. Employees who
are adequately motivated to perform will be more productive, more engaged and feel more invested in
their work. When employees feel these things, it helps them, and thereby their managers, be more
successful. It is a manager's job to motivate employees to do their jobs well. So how do managers do
this? The answer is motivation in management, the process through which managers encourage
employees to be productive and effective.
Think of what you might experience in a retail setting when a motivated cashier is processing your
transaction. This type of cashier will:
 Be friendly, creating a pleasant transaction that makes you more likely to return
 Process your transaction quickly, meaning that the store can service more customers
 Suggest an additional item you would like to purchase, increasing sales for the store
In short, this employee is productive and delivers a high-quality output.
How to Motivate Employees
There are many ways to motivate employees. Managers who want to encourage productivity should
work to ensure that employees:
 Feel that the work they do has meaning or importance
 Believe that good work is rewarded
 Believe that they are treated fairly
All of these tasks fall under one or more motivational theories.

36. Types of Banks

Some banks work in multiple areas (for example, a bank might offer personal accounts, business
accounts, and even help large enterprises raise money in the financial markets).
 Retail banks are probably the banks you’re most familiar with: Your checking and savings
accounts are held at a retail bank, which focuses on consumers (or the general public) as
customers. These banks give you credit cards, offer loans, and they’re the ones with numerous
branch locations in populated areas. 
 Commercial banks focus on business customers. Businesses need checking and savings
accounts just like individuals do. But they also need more complex services, and the dollar
amounts (or the number of transactions) can be much larger. They might need to accept
 payments from customers, rely heavily on lines of credit to manage cash flow, and they might
use letters of credit to do business overseas.
 Investment banks help businesses work in financial markets. If a business wants to go public or
sell debt to investors, they’ll often use an investment bank.
 Central banks manage the monetary system for a government. For example, the Federal
Reserve Bank is the US central bank responsible for managing economic activity and supervising
banks. 
 Credit unions are similar to banks, but they are not-for-profit organizations owned by their
customers (most banks are owned by investors). Credit unions offer products and services more
or less identical to most retail and commercial banks.
 Online banks operate entirely online – there are no physical branch locations available to visit
with a teller or personal banker. Many  banks also offer online services, such as the ability to
view accounts and pay bills online, but internet-only banks are different: they often offer
competitive rates on savings accounts and they’re especially likely to offer free checking. 
 Savings and loans are less prevalent than they used to be, but they are still important. This type
of bank was important in making home ownership mainstream, using deposits from customers to
fund home loans. The name savings and loan refers to the core activity they perform: take
savings from one customer and make loans to another. 
37. Ukraine - Banking Systems, Main Functions
The banking system of Ukraine dates to March 1991.
The Ukrainian banking sector has a two-tier (двухъярусный) structure made up of the National
Bank of Ukraine (NBU) and commercial banks of various types and forms of ownership. The NBU is
responsible for monetary policy, licensing of commercial banks, and the oversight (надзор, контроль)
of their activities. Current Ukrainian legislation distinguishes between “universal” (general) commercial
banks and “specialized” commercial banks, with the latter including savings, investment, mortgage, and
settlement (clearing) banks (клиринговый банк (банк, являющийся членом расчетной палаты и
оказывающий услуги по осуществлению расчетов). A commercial bank carries out its banking
activities under a banking license issued by the NBU.
According to the NBU data, as of March 2017, the total bank assets in Ukraine were an approximate
$48 billion. In 2017, the state’s share of total banking assets has topped 50 percent as a result of the
Privatbank takeover and the exit of 87 private banks with a combined 30 percent of total assets since
2014. Foreign capital represents 26 percent of the total capital in the banking sector (excluding
subsidiaries of Russia state-owned banks with a combined 9 percent which are believed to be seeking to
exit Ukraine). The locally owned private banks account for the remaining 13 percent of the asset base.
Transition to international accounting and reporting standards beginning January 1,1998 was an
important event for the Ukrainian banking system. It has adapted Ukrainian banking system to the
international standards and reporting formats; the development and implementation of software has also
been completed.
Privatbank and Bank Aval are the leading commercial banks in Ukraine. Of the overall number of
commercial banks, some are banks with foreign participation, including wholly foreign-owned banks.
There was founded the Ukrainian Inter-bank Currency Exchange which trades efficiently Ukrainian and
foreign currencies and prevents significant fluctuations in the international value of the hryvnia.

38. European System of Central Banks

The European System of Central Banks (ESCB) consists of the European Central Bank (ECB) and
the national central banks (NCBs) of all 28 member states of the European Union (EU).
The ESCB (Европейская система центральных банков (финансовая система, созданная для
реализации валютной политики...) is not the monetary authority of the eurozone, because not all
EU member states have joined the euro. That role is performed by the Eurosystem, which includes the
national central banks of the 19 member states that have adopted the euro. The ESCB's objective is price
stability throughout the European Union. Secondarily, the ESCB's goal is to improve monetary and
financial cooperation between the Eurosystem and member states outside the eurozone.
The main responsibilities of the Governing Council are:
  Adopt the guidelines and take the decisions necessary to ensure the performance of the tasks
entrusted to the Eurosystem
 Formulate the monetary policy of the euro area, including, as appropriate, decisions relating to
intermediate monetary objectives, key interest rates, and the supply of reserves in the Eurosystem
 Establish the necessary guidelines for their implementation
-------------------------------------------------------------------------------------- ---------------------------
39. Bank of England
The Bank of England is the central bank of the United Kingdom and the model on which most
modern central banks have been based. Established in 1694, it is the second oldest central bank in
operation today. The Bank of England is the world's 8th oldest bank. It was established to act as the
English Government's banker and is still one of the bankers for the Government of the United Kingdom.
The Bank was privately owned by stockholders from its foundation in 1694 until it was nationalised in
1946.
In 1998, it became an independent public organization with independence in setting monetary policy.
The Bank is one of eight banks authorised to issue banknotes in the United Kingdom, but it has a
monopoly on the issue of banknotes in England and Wales and regulates the issue of banknotes by
commercial banks in Scotland and Northern Ireland. The Bank's Monetary Policy Committee has a
devolved responsibility for managing monetary policy. The Treasury has reserve powers to give orders
to the committee "if they are required in the public interest and by extreme economic circumstances".
The Bank's headquarters have been in London's main financial district, the City of London, on since
1734.
As a regulator and central bank, the Bank of England has not offered consumer banking services for
many years, but it still does manage some public services such as exchanging bank notes. Until 2016, the
bank provided personal banking services as a popular privilege for employees.
40. Federal Reserve System
The Federal Reserve System (also known as the Federal Reserve or simply the Fed) is the central
banking system of the United States. It was created on December 23, 1913, with the enactment of the
Federal Reserve Act, after a series of financial panics (particularly the panic of 1907) led to the desire
for central control of the monetary system in order to alleviate financial crises. Over the years, events
such as the Great Depression in the 1930s and the Great Recession during the 2000s have led to the
expansion of the roles and responsibilities of the Federal Reserve System. The U.S. Congress established
three key objectives for monetary policy in the Federal Reserve Act: maximizing employment,
stabilizing prices, and moderating long-term interest rates. Its duties have expanded over the years, and
as of 2009 also include supervising and regulating banks, maintaining the stability of the financial
system and providing financial services to depository institutions, the U.S. government, and foreign
official institutions.
The Federal Reserve System is composed of several layers. It is governed by the presidentially
appointed Board of Governors or Federal Reserve Board (FRB). Twelve regional Federal Reserve
Banks, located in cities throughout the nation, oversee the privately owned U.S. member banks. The
Federal Open Market Committee (FOMC) sets monetary policy; it consists of all seven members of the
Board of Governors and the twelve regional bank presidents, though only five bank presidents vote at
any given time: the president of the New York Fed and four others who rotate through one-year terms.
Although an instrument of the U.S. Government, the Federal Reserve System considers itself "an
independent central bank because its monetary policy decisions do not have to be approved by the
President or anyone else The federal government sets the salaries of the board's seven governors. The
federal government receives all the system's annual profits, after a statutory dividend of 6% on member
banks' capital investment is paid, and an account surplus is maintained. In 2015, the Federal Reserve
made a profit of $100.2 billion and transferred $97.7 billion to the U.S. Treasury.

41. Islamic banking

…is banking or financing activity that complies with sharia (Islamic law) and its practical application
through the development of Islamic economics. Some of the modes of Islamic banking/finance include
Profit sharing and loss bearing, safekeeping, joint venture, and leasing. Sharia prohibits or usury
(ростовщичество).[2][3] Investment in businesses that provide goods or services considered contrary to
Islamic principles (e.g. pork or alcohol) is also sinful and prohibited.
These prohibitions have been applied historically in varying degrees in Muslim countries/communities
to prevent un-Islamic practices. In the late 20th century, as part of the revival of Islamic identity, a
number of Islamic banks formed to apply these principles to private or semi-private commercial
institutions within the Muslim community. Their number and size has grown so that by 2009, there were
over 300 banks and 250 mutual funds around the world complying with Islamic principles. Sharia-
compliant (соответствующий, совместимый) financial institutions represented approximately 1% of
total world assets, concentrated in the Gulf Cooperation Council (GCC) countries, Iran, and Malaysia.
Although Islamic Banking still makes up only a fraction of the banking assets of Muslims, since its
inception (начало) it has been growing faster than banking assets as a whole, and is projected to
continue to do so.
The industry has been returning to the path of "divine guidance" (божественное руководство) in
rejecting the "political and economic dominance" of the West, and noted as the "most visible mark" of
Islamic revivalism, (движение за религиозное возрождение) its most enthusiastic advocates
promise "no inflation, no unemployment, no exploitation and no poverty" once it is fully implemented.

43. Marketing concepts

Production Concept, Product Concept, Selling Concept, Marketing Concept, Societal Marketing
Concept.
Production Concept
Consumers will favor products that are available and highly affordable”. This concept is one of the
oldest Marketing management orientations that guide sellers. Most times; the production concept can
lead to marketing myopia (маркетинговая близорукость). Management focuses on improving
production and distribution efficiency.
Product Concept
The product concept holds that the consumers will favor products that offer the most in quality,
performance and innovative features. Marketing strategies are focused on making continuous product
improvements.
Product quality and improvement are important parts of marketing strategies, sometimes the only part.
Targeting only on the company’s products could also lead to marketing myopia.
Selling Concept
The selling concept holds the idea- “consumers will not buy enough of the firm’s products unless it
undertakes (предпринимать, совершать) a large-scale selling and promotion effort”. Here the
management focuses on creating sales transactions rather than on building long-term, profitable
customer relationships.
In other words; The aim is to sell what the company makes rather than making what the market wants.
Marketing Concept
The marketing concept holds- “achieving organizational goals depends on knowing the needs and wants
of target markets and delivering the desired satisfactions better than competitors do”. Here marketing
management takes a “customer first” approach. Under the marketing concept, customer focus and value
are the routes to achieve sales and profits. The marketing concept and the selling concepts are two
extreme concepts and totally different from each other.

44. Marketing mix(4-P rule; 5-P rule).

The 5 P's of Marketing
1) Product:
The product is the actual goods or services offered by the company and how it meets the end-user's
needs and wants.
2) Price:
The process and strategy for setting the price for a product or service. This includes discounts, or non-
monetary fees (time, energy, or attention.)
3) Place (or distribution):
 The channel by which a product or service is sold (e.g. online, direct mail, retail)
 Which geographic region
 Which Industry
 Which segment (Kids, Moms, Men, Business Owners, CIO's)
 How the product gets to the customer
 How the selling environment affects the sale
4) Promotion:
This includes advertising, sales promotion, publicity, and personal selling.
5) People:
How do people affect the perceived value of the product or service.  People that influence that value can
include employees, management, and consumers. For every product or service that you offer, you should
write down what these 5P's are for that product. You will see that the marketing mix will vary by
product or service, but there are some elements you will keep consistent across your brand.

46. Marketing research

is "the process or set of processes that links the producers, customers, and end users to the marketer
(торговец, продавец) through information used to identify and define marketing opportunities and
problems; generate, refine, and evaluate marketing actions; monitor marketing performance; and
improve understanding of marketing as a process.
Marketing research specifies the information required to address these issues, designs the method for
collecting information, manages and implements the data collection process, analyzes the results, and
communicates the findings and their implications."
It is the systematic gathering, recording, and analysis of qualitative and quantitative data about issues
relating to marketing products and services. The goal of marketing research is to identify and assess how
changing elements of the marketing mix impacts customer behavior. The term is commonly
interchanged with market research; however, expert practitioners may wish to draw a distinction, in that
market research is concerned specifically with markets, while marketing research is concerned
specifically about marketing processes.
Marketing research is often partitioned into two sets of categorical pairs, either by target market:
Consumer marketing research, and Business-to-business (B2B) marketing research.
Or, alternatively, by methodological approach: Qualitative marketing research, and Quantitative
marketing research.
Consumer marketing research is a form of applied sociology that concentrates on understanding the
preferences, attitudes, and behaviors of consumers in a market-based economy, and it aims to
understand the effects and comparative success of marketing campaigns

49. Types and functions of promotion. Social media marketing

In marketing, promotion refers to any type of marketing communication used to inform or persuade
target audiences of the relative merits (заслуга) of a product, service, brand or issue. The aim of
promotion is to increase awareness (осознание, понимание) , create interest, generate sales or create
brand loyalty (приверженность марке). It is one of the basic elements of the market mix, which
includes the four P's: price, product, promotion, and place.
Promotion is also one of the elements in the promotional mix or promotional mix or promotional plan.
These are personal selling, advertising, sales promotion, direct marketing publicity and may also include
event marketing, exhibitions and trade shows. A promotional plan specifies how much attention to pay
to each of the elements in the promotional mix, and what proportion of the budget should be allocated to
each element.
Promotion covers the methods of communication that a marketer uses to provide information about its
product. Information can be both verbal and visual.
There are three objectives of promotion. These are:
1. To present information to consumers and others.
2. To increase demand.
 3. To differentiate a product.
The purpose of a promotion and thus its promotional plan can have a wide range, including: sales
increases, new product acceptance, creation of brand equity, positioning, competitive retaliations, or
creation of a corporate image. The term 'promotion' tends to be used internally by the marketing
function. To the public or the market, phrases like "special offer" are more common. Examples of a fully
integrated, long-term, and large-scale promotion are My Coke Rewards in the USA or Coke Zone in the
UK and Pepsi Stuff.

50. Types of Profit Maximization

Utilize Employment Agencies - The expense of recruiting, training and developing staff can tax your
budget and time. When the need arises for additional staff, an employment agency can be a good avenue
(средство) to fulfill that need.
Keep An Eye On Cash Flow - When a customer is extending their terms and not paying on time, they
are negatively impacting your cash flow. When your company’s cash flow is negative, you will need to
borrow from the bank and pay finance fees.
Reduce Labor-Intensive (трудоемкий) Operations - Within a manufacturing environment, some
operations are labor intensive, which can increase cost very quickly. As you evaluate your
manufacturing process, it is important to identify the labor-intensive operations that can be simplified or
decreased.
Evaluate Downtime (простой) - Reducing machine downtime is very important to keeping your shop
profitable. Historically, a shop will consider downtime when a supplier does not have the tools it
requires. 
Compare Pricing - Often promotions or discounts draw a buyer’s attention. Also, buyers may receive
personal incentives (стимул,) to get a “discount” off of their orders. If a buyer does not compare net to
net pricing, he or she might not be receiving the best price.
Streamline Tooling (рационализация) - Through the years, many shops have switched from one tool
to another due to operation capability, performance, pricing, support and more. Today, a single tool can
accomplish many operations; By streamlining your tooling you can cut down on your inventory and
costs.
Recondition Tools (ремонт)
Often, the reconditioning tool service is where shops look for the cheapest price, with the perceived
understanding the reconditioned tool will not perform half as well as a new tool.
Subcontracting The Right Work - It is human nature to try and accomplish everything you can without
relying on other people or manufacturing shops. Historically, your shop may specialize in a certain
aspect of the manufacturing process, but you have an opportunity for growth if you expand. Teaming up
with the right shop can lead to a mutually beneficial relationship.
Putting these steps to work in your shop will enable you to enhance the profit picture of your firm. And
in these tough economic times, that improved profitability is crucial (имеющий решающее
значение) to your company’s long term survival and growth.

51. Pricing. Factors, types. Price ceiling and price floor Price

Price Floors
When government imposes a price floor, it's setting a minimum price for a good or service. Most
businesses in the country have to contend (противостоять) with the most familiar price floor: the
minimum wage. Government has said that there's a certain minimum price employers must pay for
labor. Price floors are common in agricultural commodities such as milk or corn, where the controls are
designed to protect farmers' income. Governments also use tariffs and trade taxes to set price floors on
imported goods as a way of helping domestic companies compete.
Price Ceilings
A price ceiling is the opposite of a price floor: It's a government-mandated maximum price for a good
or service. As economists Paul Krugman and Robin Wells note in their basic text "Microeconomics,"
price ceilings are far less common than price floors in the modern U.S. economy. Still, there are some.
Rent-control law in New York and other major cities is an example of price ceilings. Medicare
essentially sets price ceilings when it specifies a maximum price the program will pay for medical
procedures or supplies; providers can charge more, but doing so may preclude them from accepting the
tens of millions of people on Medicare.

52. Four C Rule

The firm must look at the marketing effort from the point of view of customer, rather than the
company. Here the four Cs must be considered:
1)     Customer needs. The firm aims to find a solution to a customer ‘problem’ by offering the right
combination of products and services to satisfy particular customer needs. What does the customer
need to solve a problem? For example, people don’t have time to cook – we offer the solution of
frozen dinners.
2)     Customer cost.  The price paid by the customer for the product. Does the customer perceive
the cost of the product as fair, or is it too expensive? It includes the ‘price’ related to not buying
another product of the same or another type. For example, someone who buys a sophisticated mobile
may not then have the money to buy a laptop computer that they wanted.
3)     Convenience. How convenient is it to find your product? Is it easy, or does the customer have
to make an effort? Distributing products in the way that is most convenient for each type of
customer. The firm has to decide how many new shops to open and where they should be.
4)     Communication with the customer. How should you communicate with your customers?
Customers are informed about products through advertising and so on. But communication is two-
way because customers also communicate with the firm. For example, through telephone helplines.
This is a good way for the firm to find out more about what its customers want.
        Robert F. Lauterborn proposed Four Cs classification in 1993.
        Product part of the Four Ps model is replaced by ‘Consumer’ shifting the focus to satisfying
the consumer needs. Another C replacement for Product is ‘Capable’. By defining offerings as
individual capabilities that when combined and focused to a specific industry, creates a custom
solution rather than pigeon-holing a customer into a product.
        Pricing is replaced by ‘Cost’ reflecting the total cost of ownership. Many factors affect Cost,
including but not limited to the customer’s cost to change or implement the new product or service
and the customer’s cost for not selecting a competitor’s product or service.
        Placement is replaced by ‘Convenience’. With the rise of internet and hybrid models of
purchasing, Place is becoming less relevant. Convenience takes into account the ease of buying the
product, finding the product, finding information about the product, and several other factors.
        Promotions feature is replaced by ‘Communication’ which represents a broader focus than
simply Promotions. Communications can include advertising, public relations, personal selling, and
any form of communication between the firm and the consumer.

53. Strategies in Competition

Long-term action plan that is devised to help a company gain a competitive advantage over its rival.
This type of strategy is often used in advertising campaigns by somehow discrediting the competition's
product or service. Competitive strategies are essential to companies competing in markets that are
heavily saturated with alternatives for consumers.
Cost Leadership - The cost leadership strategy is typically only employed by large companies that
can obtain products cheaply through economies of scale. They turn around and sell these cheaply
purchased products to buyers, adding a minimal markup to keep the price low.
Differentiation (специализация; расслоение)- Companies that use the differentiation strategy offer
unique products or services. Having a unique offering gives companies an advantage over their
competitors because their competitors simply can't offer what they're offering. To develop unique
products and services, companies often invest heavily in research and development -- something that
many small businesses simply can't afford.
Low-Cost Focus - The low-cost focus strategy is similar to the cost leadership strategy except that it
focuses on a niche market. Instead of marketing a product to the entire population it is marketed to a
particular segment of the population. The aim of the strategy is to then be the cheapest provider in that
segment.
Differentiation Focus - The differentiation strategy, like the low-cost focus strategy, also focuses on a
specific subset (параметр) of the market. But instead of marketing a product or service as the cheapest,
it's marketed as being unique in some way. For instance, a company might develop a product that is
specifically made for left-handed people. By focusing on a narrow market segment, a company can
focus its efforts which may require fewer resources than developing a product for the broad market.

54. Fair / Unfair Competition

Unfair (or disloyal) competition in commercial law is a deceptive business practice that causes
economic harm to other businesses or to consumers. It includes a number of areas of law involving acts
by one competitor or group of competitors which harm another in the field, and which may give rise to
criminal offenses and civil causes of action. The most common actions falling under the banner of unfair
competition include:
Matters pertaining (касающийся,) to antitrust law, known in the European Union as competition law.
Trademark infringement (посягательство) and passing off, (подмена товара) which occur when the
maker of a product uses a name, logo, or other identifying characteristics to deceive consumers into
thinking that they are buying the product of a competitor.
Misappropriation (незаконное присвоение) of trade secrets, which occurs when one competitor uses
espionage, bribery, or outright theft to obtain economically advantageous information in the possession
of another.
Trade libel, the spreading of false information about the quality or characteristics of a competitor's
products, is prohibited at common law.
Tortious (вредоносный) interference, which occurs when one competitor convinces a party having a
relationship with another competitor to breach (нарушать (закон, обязательства) a contract with, or
duty to, the other competitor is also prohibited.
Various unfair business practices such as fraud, misrepresentation (искажение фактов), and
unconscionable (недобросовестный) contracts may be considered unfair competition, if they give one
competitor an advantage over others.

55. Types of Risks

1. Strategic Risk
Everyone knows that a successful business needs a comprehensive, well-thought-out business plan.
But it’s also a fact of life that things change, and your best-laid plans can sometimes come to look very
outdated, very quickly. A classic example is Kodak, which had such a dominant position in the film
photography market that when one of its own engineers invented a digital camera in 1975, it saw the
innovation as a threat to its core business model, and failed to develop it.
2. Compliance Risk (выполнение, соблюдение)
Are you complying with all the necessary laws and regulations that apply to your business? But laws
change all the time, and there’s always a risk that you’ll face additional regulations in the future. And as
your own business expands, you might find yourself needing to comply with new rules that didn’t apply
to you before.
3. Operational Risk
Operational risk refers to an unexpected failure in your company’s day-to-day operations. It could be a
technical failure, like a server outage, or it could be caused by your people or processes. In some cases,
operational risk has more than one cause. For example, consider the risk that one of your employees
writes the wrong amount on a check, paying out $100,000 instead of $10,000 from your account. That’s
a “people” failure, but also a “process” failure.
4. Financial Risk
 Most categories of risk have a financial impact, in terms of extra costs or lost revenue. But the
category of financial risk refers specifically to the money flowing in and out of your business, and the
possibility of a sudden financial loss. For example, let’s say that a large proportion of your revenue
comes from a single large client, and you extend 60 days credit to that client (for more on extending
credit and dealing with cash flow, see our earlier cash flow tutorial). In that case, you have a significant
financial risk. If that customer is unable to pay, or delays payment for whatever reason, then your
business is in big trouble.
5. Reputational Risk
If your reputation is damaged, you’ll see an immediate loss of revenue, as customers become wary of
doing business with you. But there are other effects, too. Your employees may get demoralized and even
decide to leave. You may find it hard to hire good replacements, as potential candidates have heard
about your bad reputation and don’t want to join your firm. Suppliers may start to offer you less
favorable terms. Advertisers, sponsors or other partners may decide that they no longer want to be
associated with you.
Reputational risk can take the form of a major lawsuit, an embarrassing product recall, negative
publicity about you or your staff, or high-profile criticism of your products or services. And these days,
it doesn’t even take a major event to cause reputational damage; it could be a slow death by a thousand
negative tweets and online product reviews.

56. INFLATION factors, types, positive and negative aspects

Inflation is when the prices of goods and services increase. There are four main types of inflation,
categorized by their speed.
Creeping Inflation
Creeping or mild inflation is when prices rise 3 percent a year or less. According to the Federal
Reserve, when prices increase 2 percent or less it benefits economic growth. This kind of mild inflation
makes consumers expect that prices will keep going up. That boosts demand.
Walking Inflation
This type of strong, or harmful, inflation is between 3-10 percent a year. It is bad to the economy
because it heats up economic growth too fast. People start to buy more than they need, just to avoid
tomorrow's much higher prices. This drives demand even further, so that suppliers can't keep up.
Galloping Inflation
When inflation rises to 10 percent or more, it provokes absolute chaos on the economy. Money loses
value so fast that business and employee income can't keep up with costs and prices. Foreign investors
avoid the country, depriving it of needed capital. The economy becomes unstable, and government
leaders lose credibility.
Hyperinflation
Hyperinflation is when prices skyrocket more than 50 percent a month. It is very rare. In fact, most
examples of hyperinflation have occurred only when governments printed money to pay for wars.
Examples of hyperinflation include Germany in the 1920s, Zimbabwe in the 2000s, and Venezuela in
the 2010s. The last time America experienced hyperinflation was during its civil war.
Deflation
Deflation is the opposite of inflation. It's when prices fall. It's caused when an asset bubble bursts.
That's what happened in housing in 2006. Deflation in housing prices trapped those who bought their
homes in 2005. That's because deflation can turn a recession into a depression. During the Great
Depression of 1929, prices dropped 10 percent a year. Once deflation starts, it is harder to stop than
inflation.

60. Stock Exchange

A stock exchange or securities exchange is an exchange where stock brokers and traders can buy and
sell shares of stock, bonds, and other securities. Stock exchanges may also provide facilities
(возможности) for issue and redemption (погашение) of securities and other financial instruments
and capital including the payment of income and dividends. Securities traded on a stock exchange
include stock issued by listed companies, derivatives, pooled investment products and bonds.
 To be able to trade a security on a certain stock exchange, it must be listed there. Usually, there is a
central location at least for record keeping, but trade is increasingly less linked to such a physical place,
as modern markets use electronic networks, which give them advantages of increased speed and reduced
cost of transactions. Trade on an exchange is restricted to brokers who are members of the exchange.
The initial public offering of stocks and bonds to investors is by definition done in the primary market
and subsequent (последующий;) trading is done in the secondary market. Supply and demand in stock
markets are driven by various factors that, as in all free markets, affect the price of stocks.

61. Bull and Bear Market

A bull market is a financial market of a group of securities in which prices are rising or are expected to
rise. The term "bull market" is most often used to refer to the stock market but can be applied to
anything that is traded, such as bonds, currencies and commodities. The opposite of a bull market is a
bear market, which is characterized by falling prices. The use of "bull" and "bear" to describe markets
comes from the way the animals attack their opponents. A bull thrusts its horns up into the air, while a
bear hits its paws downward. If the trend is up, it's a bull market. If the trend is down, it's a bear market.
Bull markets and bear markets often coincide with the economic cycle, which consists of four phases:
expansion, peak, contraction and trough. The onset (натиск) of a bull market is often a leading
indicator of economic expansion. Because public sentiment about future economic conditions drives
stock prices, the market frequently rises even before broader economic measures, such as gross domestic
product (GDP) growth, begin to tick up.

62. Currency exchange. Exchange rates. Foreign exchange market

Exchange rates fluctuate due to one major factor: global demand and supply. The more in-demand a
particular currency is, the more its value will increase. Factors that affect demand and supply of currency
include governments and businesses trading internationally, countries’ political and economic stability,
travel and tourism, trading of currencies on the stock market and even natural disasters.
Exchange rates are also influenced by countries’ rules and actions that govern their currency, known as
their fiscal policy. Interest rates play a large role in exchange rate fluctuation. Favorable interest rate
movements will drive demand for a particular currency – driving up its value.
Exchange rates are influenced by banks and trading institutions and the volume of currency they are
buying and selling at any given time. Currencies are traded (bought and sold) daily around the world.
One currency can be purchased by another currency through banking institutions or on the open market.
The volumes of currencies traded are increased and decreased depending on the attractiveness of any
particular currency.
Government central banks also have the ability to set a currency at a constant price through a method
called pegging (замораживание), which essentially links the value of one currency to another.
Foreign Exchange Market
The modern foreign exchange market began forming during the 1970s. The foreign exchange market
(Forex, FX, or currency market) is a global decentralized market for the trading of currencies. This
market determines the foreign exchange rate. It includes all aspects of buying, selling and exchanging
currencies at current or determined prices. The main participants in this market are the larger
international banks. Financial centers around the world function as a basis of trading between a wide
range of multiple types of buyers and sellers around the clock, with the exception of weekends. Since
currencies are always traded in pairs, the foreign exchange market does not set a currency's absolute
value but rather determines its relative value by setting the market price of one currency if paid for with
another. Ex: 1 USD is worth X CAD, or CHF, or JPY, etc..
The foreign exchange market works through financial institutions, and operates on several levels.
Behind the scenes, banks turn to a smaller number of financial firms known as "dealers", who are
involved in large quantities of foreign exchange trading. Most foreign exchange dealers are banks, so
this behind-the-scenes market is sometimes called the "interbank market". Trades between foreign
exchange dealers can be very large, involving hundreds of millions of dollars.

64. Accounting: origin, development, main functions

 Accounting is the measurement, processing, and communication of financial information about
economic entities such as businesses and corporations. The modern field was established by the Italian
mathematician Luca Pacioli in 1494. Accounting, which has been called the "language of business",
measures the results of an organization's economic activities and conveys this information to a variety of
users, including investors, creditors, management, and regulators. Practitioners of accounting are known
as accountants. The terms "accounting" and "financial reporting" are often used as synonyms.
Accounting can be divided into several fields including financial accounting, management accounting,
external auditing, tax accounting and cost accounting. Accounting information systems are designed to
support accounting functions and related activities. Financial accounting focuses on the reporting of an
organization's financial information, including the preparation of financial statements, to external users
of the information, such as investors, regulators and suppliers; and management accounting focuses on
the measurement, analysis and reporting of information for internal use by management.
Accounting is facilitated (способствовать) by accounting organizations such as accounting firms
and professional bodies. Financial statements are usually audited by accounting firms, and are prepared
in accordance with generally accepted accounting principles such as the Financial Accounting Standards
Board (FASB) in the United States and the Financial Reporting Council in the United Kingdom.

65. Auditing. Types of auditing, main functions

An audit is a systematic and independent examination of books, accounts, statutory records, documents
and vouchers (расписка) of an organization to ascertain (выяснять) how far the financial statements
present a true and fair view of the concern. It also attempts to ensure that the books of accounts are
properly maintained by the concern as required by law. Auditing has become such a ubiquitous
(повсеместный) phenomenon in the corporate and the public sector that academics started identifying
an "Audit Society". The auditor perceives and recognises the propositions before them for examination,
obtains evidence, evaluates the same and formulates an opinion on the basis of his judgement which is
communicated through their audit report. Any subject matter may be audited. Auditing is a safeguard
measure since ancient times. Audits provide third party assurance to various stakeholders
(заинтересованные стороны) that the subject matter is free from material misstatement
(ошибочное утверждение). The term is most frequently applied to audits of the financial information
relating to a legal person.
As a result of an audit, stakeholders may effectively evaluate and improve the effectiveness of risk
management, control, and the governance process over the subject matter.
The word audit is derived from a Latin word "audire" which means "to hear". During the medieval times
when manual book-keeping was prevalent, auditors in Britain used to hear the accounts read out for
them and checked that the organisation's personnel were not negligent (халатный) or fraudulent
(обманный,).

66. Company’s Assets and Liabilities

In financial accounting, a balance sheet or statement of financial position is a summary of the
financial balances of an individual or organization, whether it be a sole proprietorship, a business
partnership, a corporation, private limited company or other organization. Assets, liabilities and
ownership equity are listed as of a specific date, such as the end of its financial year. A balance sheet is
often described as a "snapshot of a company's financial condition". Of the four basic financial
statements, the balance sheet is the only statement which applies to a single point in time of a business'
calendar year.
A standard company balance sheet has two sides: assets, on the left and financing, which itself has two
parts, liabilities and ownership equity, on the right. The main categories of assets are usually listed first,
and typically in order of liquidity. Assets are followed by the liabilities. The difference between the
assets and the liabilities is known as the net asset (чистые активы)s or the net worth(чистый
капитал) or capital of the company and according to the accounting equation, net worth must
equal assets minus liabilities.
Another way to look at the balance sheet equation (уравнение баланса) is that total assets equals
liabilities plus owner's equity. A business operating entirely in cash can measure its profits by
withdrawing the entire bank balance at the end of the period, plus any cash in hand. However, many
businesses are not paid immediately; they build up inventories of goods and they acquire buildings and
equipment.

67. Double - entry bookkeeping

Double-entry bookkeeping, in accounting, is a system of bookkeeping so named because every entry
to an account requires a corresponding and opposite entry to a different account. The double entry has
two equal and corresponding sides known as debit and credit. The left-hand side is debit and right-hand
side is credit. For instance, recording a sale of $100 might require two entries: a debit of $100 to an
account named "Cash" and a credit of $100 to an account named "Revenue." The accounting equation, is
an error detection tool; if at any point the sum of debits for all accounts does not equal the corresponding
sum of credits for all accounts, an error has occurred. However, that the equation is satisfied is no
guarantee that there are no errors; the ledger (бухгалтерская книга) may still "balance" even if the
wrong ledger accounts may have been debited or credited.

68. Main Financial Statements

Financial statements for businesses usually include income statements, balance sheets, statements of
retained earnings and cash flows. Financial statements are often audited by government agencies,
accountants, firms, etc. to ensure accuracy and for tax, financing or investing purposes. Financial
statements are the lifeblood of any company and understanding them is key to finding investment
opportunities.
The balance sheet provides an overview of assets, liabilities and stockholders' equity. The date at the
top of the balance sheet is generally the end of the fiscal year. liabilities are debts expected to be paid
after one year.
The income statement covers a range of time, which is a year for annual financial statements and a
quarter for quarterly financial statements. The income statement provides an overview of revenues,
expenses, net income and earnings per share.
The cash flow statement merges the balance sheet and the income statement. The cash flow statement
reconciles (согласовывать) the income statement with the balance sheet in three major business
activities. These activities include operating, investing and financing activities. Operating activities
include cash flows made from regular business operations. Investing activities include cash flows due to
the buying and selling of assets such as real estate and equipment. Financing activities include cash
flows from debt and equity.

69. Money
Money is any good that is widely accepted in exchange of goods and services, as well as payment of
debts. Most people will confuse the definition of money with other things, like income, wealth, and
credit. Three functions of money are:
1. Medium of exchange: Money can be used for buying and selling goods and services. If there
were no money, goods would have to be exchanged through the process of barter (goods would be
traded for other goods in transactions arranged on the basis of mutual need). For example: If I raise
chickens and want to buy cows, I would have to find a person who is willing to sell his cows for my
chickens. Such arrangements are often difficult. But Money eliminates the need of the double
coincidence of wants.
2. Unit of account: Money is the common standard for measuring relative worth of goods and
service.
3. Store of value: Money is the most liquid asset (Liquidity measures how easily assets can be spent
to buy goods and services). Money’s value can be retained over time. It is a convenient way to store
wealth.

71. SWOT Analysis

SWOT analysis (or SWOT matrix) is a strategic planning technique used to help a person or
organization identify the Strengths, Weaknesses, Opportunities, and Threats related to business
competition or project planning. It is intended to specify the objectives of the business venture or project
and identify the internal and external factors that are favorable and unfavorable to achieving those
objectives. Users of a SWOT analysis often ask and answer questions to generate meaningful
information for each category to make the tool useful and identify their competitive advantage.
Strengths and Weakness are frequently internally-related, while Opportunities and Threats commonly
focus on environmental placement.
 Strengths: characteristics of the business or project that give it an advantage over others
 Weaknesses: characteristics of the business that place the business or project at a disadvantage
relative to others
 Opportunities: elements in the environment that the business or project could exploit to its
advantage
 Threats: elements in the environment that could cause trouble for the business or project
The degree to which the internal environment (внутренняя среда (организации) of the firm
matches with the external environment is expressed by the concept of strategic fit (стратегическое
соответствие). Identification of SWOTs is important because they can inform later steps in
planning to achieve the objective. First, decision-makers should consider whether the objective is
attainable (достижимый). If the objective is not attainable, they must select a different objective and
repeat the process.
------------------------------------------------------------------------------------------------------------------------------
76. HRD: Role and Functions (Human Resource Dpt.)
An efficiently run human resources department can provide your organization with structure and the
ability to meet business needs through managing your company's most valuable resources -- its
employees.
New Recruitment
They advertise job postings, source candidates, screen applicants, conduct preliminary interviews and
coordinate hiring efforts with managers responsible for making the final selection of candidates.
Job Safety
Workplace safety is an important factor. Employers have an obligation to provide a safe working
environment for employees. One of the main functions of HR is to support workplace safety training and
maintain federally mandated logs for workplace injury and fatality reporting.
Employee Relations
Employee relations concerned with strengthening the employer-employee relationship through
measuring job satisfaction, employee engagement and resolving workplace conflict. Labor relations
functions may include developing management response to union organizing campaigns, negotiating
collective bargaining agreements and rendering interpretations of labor union contract issues.
Compensation and Benefits
Like employee and labor relations, the compensation and benefits functions of HR often can be
handled by one HR specialist. On the compensation side, the HR functions include setting compensation
structures and evaluating competitive pay practices. A comp and benefits specialist also may negotiate
group health coverage rates with insurers and coordinate activities with the retirement savings fund
administrator.
Labor Law Compliance (соблюдение закона)
Compliance with labor and employment laws is a critical HR function. Noncompliance can result in
workplace complaints based on unfair employment practices, unsafe working conditions and general
dissatisfaction with working conditions that can affect productivity and ultimately, profitability.
Training and Development
Employers must provide employees with the tools necessary for their success which, in many cases,
means giving new employees extensive orientation training to help them transition into a new
organizational culture.

79. Types and causes of unemployment:

Frictional Unemployment is caused by the imperfect working of the labor market. When a person loses
(or quits) a job they need time to research other job opportunities, go through application procedures and
prepare themselves for the new job - this all takes time and it could be weeks or even months. During
this time the person is counted as unemployed. Frictional unemployment can be geographic or
occupational but is short term.
Seasonal Unemployment: Seasonal unemployment deserves its own category and is better not to
confuse with Frictional Unemployment. It does have fewer problems than the other unemployment types
since it is reasonably predictable. Ski Resorts and Beach Resorts are examples.
Structural Unemployment: Over time Demand patterns and economies change. This means in
adjusting to these changes the nature of Goods and Services produced by economies changes. In
industries and areas that once were strong in the production processes you can see a decline and this
leads to structural unemployment. Structural unemployment can be Geographic and/or Occupational and
is a major cause of long term unemployment. In fact you could see structural unemployment as a long
term version of frictional unemployment.
Cyclical Unemployment: This can be confusing since it conjoins (сочетать) unemployment caused by
low demand due to the natural operations of the business cycle and low demand for other reasons. While
the business cycle can be an underlying cause another reason for demand deficient unemployment is
government policy aimed at reducing inflation whereby aggregate demand is reduced. An example of
demand deficient unemployment is the high unemployment figures following the credit crash of 2008.
Unemployment rate is the percentage of labor force that is currently unemployed but was
available for job in last four weeks and was actively seeking employment in that period. It is the
ratio of the number of unemployed people to the sum of the number of employed and unemployed
people.

82 Progressive and regressive tax

Tax systems fall into three main categories: regressive, proportional and progressive taxes. Regressive
taxes are those that have a greater impact on low-income individuals than high-income earners. A
proportional tax, also referred to as a flat tax, impacts low-, middle- and high-income earners relatively
equally. A progressive tax has more of a financial impact on higher-income individuals and businesses,
and less on low-income earners.
Regressive Taxes
Under a regressive tax system, individuals and entities with low incomes pay a higher amount of that
income in taxes compared to high-income earners. Aside from state and local sales taxes, regressive
taxes include real estate property taxes and excise taxes (a fixed tax included in the price of the product
or service) on consumables such as gasoline or airfare.
Progressive Taxes
Under a progressive tax system, the taxes assessed on income or business profits – are based on the
taxable amount, and follow an accelerating schedule. High-income earners pay more than low-income
earners, and the tax rate, along with tax liability, increases as an individual or entity's wealth increases.
The overall outcome is that higher earners pay a higher percentage of taxes and more money in taxes
than do lower-income earners. This sort of system is meant to affect upper-class people more low- or
middle-class individuals – to reflect the fact that they can afford to pay more.
Proportional Taxes
A proportional tax system, also referred to as a flat tax system, assesses the same tax rate regardless of
income or wealth. It is meant to create equality between marginal tax rate and average tax rate paid
85. Fiscal Policy Definition, role, types, example
In economics and political science, fiscal policy is the use of government revenue collection (mainly
taxes) and expenditure (spending) to influence the economy. According to Keynesian economics, when
the government changes the levels of taxation and government spending, it influences aggregate demand
and the level of economic activity. Fiscal policy is often used to stabilize the economy over the course of
the business cycle.
Changes in the level and composition of taxation and government spending can affect the following
macroeconomic variables, amongst others:
 Aggregate demand and the level of economic activity;
 Saving and investment;
 Income distribution.
 Fiscal policy can be distinguished from monetary policy, in that fiscal policy deals with taxation and
government spending and is often administered by an executive under laws of a legislature, whereas
monetary policy deals with the money supply and interest rates and is often administered by a central
bank.

86. Fiscal Year Definition, role, example

A fiscal year (or financial year, or sometimes budget year) is the period used by governments for
accounting and budget purposes, which vary between countries. It is also used for financial reporting by
business and other organizations. Laws in many jurisdictions require company financial reports to be
prepared and published on an annual basis, but generally do not require the reporting period to align with
the calendar year (1 January to 31 December). Taxation laws generally require accounting records to be
maintained and taxes calculated on an annual basis, which usually corresponds to the fiscal year used for
government purposes. The calculation of tax on an annual basis is especially relevant for direct taxation,
such as income tax.

87. Insurance in Ukraine

The insurance market in Ukraine started in 1991. The number of insurance companies operating in
Ukraine has fallen since 1994, when there were more than 700. However, this reduction had a positive
effect, as most insolvent companies and pseudo-insurance firms were removed from the insurance
market.
In Ukraine, unfortunately, confidence in the insurance sector was seriously undermined during 1991-
1997, when many Ukrainian insurance companies went bankrupt. At the same time, the potential of
Ukraine’s insurance market is still rather high. According to expert estimates, in Ukraine today only
around 10 percent of risks are insured, while in most countries, this figure is 90-95 percent.
According to the “Insurance Law”, dated October 4, 2001, foreign insurance companies found that
doing business in Ukraine independently was impossible due to the 49% limitation on foreign ownership
of Ukrainian insurance companies. Finally, the above-mentioned amendments to the Insurance Law
lifted this discriminatory limitation and allowed foreign insurance companies to freely carry out their
intended activities in Ukraine.
Today, foreign insurers are able to form 100% foreign controlled companies or possess a controlling
interest in joint insurance companies in Ukraine. Most recently, in May of 2013, foreign insurance
companies gained the ability to open local branches which may be qualified. Continuous changes in
taxation legislation and insurance regulation, however, remain to be key problems for insurance
managers, who are unable to make long-term plans.
The domestic insurance market continues to develop dynamically. However, certain key domestic
insurance are still missing or underdeveloped, such as mortgage insurance and mandatory non-state
issued auto insurance, which may potentially boost the market with the inflow of premiums from rank
and file people.

88. E – Business
Online Business or e-business is a term which can be used for any kind of business or commercial
transaction that includes sharing information across the internet. Commerce constitutes the exchange of
products and services between businesses, groups and individuals and can be seen as one of the essential
activities of any business. Electronic commerce focuses on the use of ICT (Международный
справочник) to enable the external activities and relationships of the business with individuals, groups
and other businesses or e business refers to business with help of internet i.e. doing business with the
help of internet network. The term "e-business" was coined by IBM's marketing and Internet team in
1996
 1. Rephrase the following sentences keeping the sense
(change the underline part using the given phrase)
If he wrote the right address, I would get the
email.
(but for)
________________________________________
________________________________________
I guess it’s high time to think about new career.
(worth)
________________________________________
________________________________________
He regrets not learning hard the exam last night.
(wish)
________________________________________
________________________________________
But for his assistants’ help, he would not manage
to complete all work in time.
(If)
________________________________________
_____________________________________
I heard Mary would go to London the following
week.
(for)
________________________________________
Olga has been working hard for 3 weeks already –
she is very exhausted
(with fatigue)
______________________________________
I am sure we will not see Natalie again. She told
about leaving forever
(Good)
________________________________________
____________________________________
I found the way easily because Jane had drawn
me the detailed route.
(But for)
________________________________________
____________________________________
Your idea of inviting the Chinese partners to the
meeting is really impossible because of rather
complicated situation in the country/
(Out of the)
________________________________________
____________________________________
Is he intent on having international internship this
summer?
(of)
____________________________________________
____________________________________________
There’s no point in going to Kiev tonight as tomorrow
is the day off.
(use)
____________________________________________
Are you able to translate this text alone?
(of)
____________________________________________
____________________________________________
I am so sorry that Mary didn’t have time to join us on
weekend
(regret)
____________________________________________
____________________________________________
Because she doesn’t like dark colors, she always buys
light blue and white suits.
(for)
____________________________________________
Helen is tired because she has been working for 2 days
without going to bed.
(because of)
______________________________________
I can’t believe your laptop doesn’t work again!!! What
have you done to it?
(Out of)
____________________________________________
________________________________
Carl can’t stand working with agreement, looking
through documents, making arrangements and having
meetings – he can not think about work any more
(Up with)
______________________________________
But for your presenting your project you would not be
sent to the conference
(If)
____________________________________________
________________________________
 I wonder when you are going to return from
Paris?
(Back)
________________________________________
____________________________________
If he wrote the right address, I would get the
email.
(but for)
_____________________________________
_____________________________________
I guess it’s high time to think about new
career.
(worth)
_____________________________________
_____________________________________
But for Mary’s coming so late, we would not
miss the train.
(If)
_____________________________________
_____________________________________
If you are dreaming about a pet you should be
ready to take care of it.
(after)
_____________________________________
_____________________________________
Mr. Fredric is not satisfied with the results of
work because her assistant presented confused
information.
(because of)
_____________________________________
_____________________________________
Quick Exercise
Put the following sentences into passive voice. (Modals)
1. You may forget the rules quickly.
The rules may be forgotten quickly
?
2. You should study the lessons repeatedly.
.
3. Benjamin must win the competition.
.
4. They should cancel the game.
.
It’s so strange to discover the known features of well-
known people.
(Out)
____________________________________________
________________________________
Has he had intention of applying for international
internship this summer?
(on)
____________________________________________
______________________________________
Your colleagues quarrel too often. Something should
be done with it
(argument)
_________________________________________
The article discusses mainly pros and cons of the
integration process
(advantage)
____________________________________________
______________________________________
Certainly this topic should be presented on the
conference!
(of)
____________________________________________
______________________________________
Because she doesn’t like dark colors, she always buys
light blue and white suits.
(for)
____________________________________________
_____________________________________
5. The doctor can't persuade her.
.
6. They need to repair my car.
?
7. Who should pay the damage?
Whom should damage be paid
?

1. The rules may be forgotten quickly

2. The lessons should be studied repeatedly
3. The competition must be won by Benjamin
4. The game should be canceled
5. She can't be persuaded by the doctor
6. My car needs to be repaired
7. By whom should the damage be paid

Wish
Wish используется, когда речь идет о желаниях, как правило, нереальных, — в настоящем и
прошлом.

«Я хотел бы, чтобы это было так» (но это не так).

1. После wish нельзя использовать глагол в настоящем времени.

2. Если речь идет о настоящем времени, то после wish употребляется глагол в Past Simple.

Пример.

I wish I had a car now. — Я хотел бы, чтобы у меня была машина. (Но, увы, у меня нет
машины)

I wish I were rich. — Я хотел бы быть богатым. (Богатства тоже нет и в помине)

Примечание. После wish можно использовать were или was.

Пример.

I wish I were a child again.

или

I wish I was a child again.

3. Если речь идет о прошлом, то после wish употребляется глагол в Past Perfect.
Обычно это выражает сожаление о том, что произошло в прошлом. Т.е это фразы типа:
«Лучше бы я тогда (в прошлом) поступил иначе!», «Ах, как бы я хотел, чтобы это
произошло по-другому!»

Пример.

I wish they had come yesterday. (Как бы я хотел, чтобы они пришли вчера.) (Но они не
пришли, этого не произошло)
 4. Конструкция wish … would используется, когда мы хотим, чтобы что-то изменилось, или
когда хотим от кого-то, чтобы он что-то сделал, изменил свое поведение.

Примеры.

I wish you would do something instead of just sitting and whining. — Лучше бы ты сделал
что-то, вместо того чтобы просто сидеть и хныкать.

She wishes it would stop raining. — Она хотела бы, чтобы дождь прекратился.

5. Внимание! Нельзя после wish использовать will.

Пример.

I wish she would visit more often. — Я хотела бы, чтобы она приходила почаще.

Но нельзя сказать: I wish she will visit more often.

6. Для выражения возможности или способности после wish используйте could для
настоящего времени, а could + have + Verb in Past Participle — для прошлого времени.

Примеры.

I wish you could come. — Я хотел бы, чтобы ты смог прийти.

I wish I could have chosen another profession when I was twenty. — Лучше бы я выбрал
другую профессию, когда мне было 20.

Внимание! Нельзя после wish использовать can.

Итак, wish используется:

 когда нас не устраивает текущая ситуация, и мы хотели бы, чтобы она изменилась;
 для выражения сожаления;
 для выражения жалобы;
 когда мы хотим, чтобы кто-то изменил свое поведение.