KINDS OF ENTERPRISES

Ukraine is constantly working to develop cooperation and make it more dynamic and effective. In
recent years new forms of profitable business have come into being. The most common are joint
ventures, joint-stock companies and privately-owned enterprises.
A joint venture is an enterprise established between the Ukrainian and foreign ones. Joint ventures
have independent balance and operate on the basis of full cost accounting, self-support and
self-financing. The fund of a joint venture is formed from contributions made by partners.
Contributions to the fund may include buildings, structures, equipment, rights to use land, water,
know-how, money assets in the currencies of the partners' countries and in freely convertible
currencies. Joint ventures must pay taxes at the rate of 30 per cent of their profit.
A joint-stock company is a company established by the merging of individual capitals into one
stock capital by means of stocks issue. A person who owns a stock is called a stockholder. The
history of joint-stock companies began in 1600 in England when Ost-Indian Company was
established. Now they have become the main kind of enterprises in the West and number of them is
increasing in Ukraine too.
Privately owned enterprises do not do the greatest volume of business. They account for only 16
per cent of all business receipts, for example in America. To such kind of enterprises, we may refer
mainly, laundries, beauty shops, different repair shops, bars, restaurants, petrol stations. So, you can
start or stop your business whenever you like. There is no need to consult partners or a board of
directors. You can decide on your vacation, office hours, salary, hiring and firing by yourself .
But the most important risk is that fact that you are responsible for all your business debts. So, if
your business fails, you have to declare personal bankruptcy.

Exercise I. Study the Topical Vocabulary on kinds of enterprises and answer the questions
using the collocations:
Topical Vocabulary
 to develop cooperation  to have an independent balance
 to make sth more dynamic and effective  to operate on the basis of full cost
 profitable business accounting, self-support and self-
 to come into being financing
 joint venture  to form a fund
 joint-stock company  contributions made by partners
 privately owned enterprise  xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
 to establish a company

1. What kinds of enterprises do you know? 2. What is a joint venture? 3. What joint ventures do you
know in your region? 4. How does a joint venture work? 5. What is a joint-stock company? 6. What
Joint-stock companies do you know in your region? 7. Are you a stockholder? 8. What are private
enterprises mainly? 9. Is a private enterprise of great risk? 10. Would you like to have your own
private shop (restaurant, cafe firm)?

Exercise II. Find in the text equivalents for the following words and expressions:
Приватне підприємство, рада директорів, акціонер, спільне підприємство, відсоток, повний
госпрозрахунок, акціонерне товариство, зарплатня, випуск акцій, співробітництво,
самостійність, заснувати, години праці, відповідальний, оголосити особисте банкрутство, ділові
борги, наймання та звільнення, внесок, вільно конвертована валюта, динамічний, злиття
індивідуальних капіталів, вирішувати, незалежний баланс, інтелектуальна власність,
1
самофінансування.

Exercise III. Translate into English:

1. Я працюю в акціонерній компанії. 2. Нещодавно було створено українсько-американське
спільне підприємство з виробництва печива. З. Ми працюємо на основі повного госпрозрахунку
та самофінансування. 4. Наступного місяця ми плануємо новий випуск акцій. 5. Я чув, що ти
відкрила свою власну кав’ярню. 6. Мені подобається бути власником, я – сам собі бос, і я
вирішую все сам. 7. У мене невеличке кафе, але воно дуже затишне і вже стало популярним
серед гурманів, крім того, воно приносить гарний прибуток, хоча треба багато працювати 8. Як
ти думаєш, чи прибуткова ця акціонерна компанія? 9 Кожен рік я отримую дивіденди. 10. У тебе
є акції?

/
Exercise IV. Topics for discussion:
1. Private business I would like to have.
2. Joint ventures in our region.
3. Joint-stock companies of open and closed types.

Exercise V. Read, translate, complete the dialogue and make up your own one.
- Hello, Alex!
- Привіт, Павле!
- How are you?
- Чудово, дякую! А як ти?
- I'm fine too, thank you
- Давно не бачив тебе. Ти десь працюєш?
- Yes, I work at "Mriya" joint-stock company. And what about you?
- Я працюю на українсько-німецькому спільному підприємстві.
- Lucky you are! I also can't complain. Our company is rather profitable.
- А коли і як воно було засновано?
- It was established 5 years ago as a joint-stock company by the merging of individual capitals into
one stock capital by means of stocks issue. There are a lot of stockholders and all of them get
dividends at the end of the fiscal year. And now tell me, please, about your joint venture. I know that
it's one of the most reliable enterprises in the town.
- Це так. Воно має незалежний баланс і працює на основі повного госпрозрахунку,
самостійності і самофінансування. Фонд спільного підприємства сформований з внесків, які
були зроблені партнерами. Це, наприклад, будівлі, грошові активи, технології, обладнання та
інше.
- Who makes decisions at your venture?
- Рада директорів формулює політику (formulates the policy) і відповідальна за прийняття
рішень. Таким чином, вони передбачають стратегію розвитку, наймання та звільнення, години
праці, зарплатню, відпустку та інше. О. вибач, але моя обідня перерва закінчується і я маю
поспішати, щоб не спізнитись.
- Okay, I was glad to meet you.
- Я теж. Бажаю вдачі!
- Bye-bye!

2
 COMPANY STRUCTURE

This is an example of part of a company organization chart:

Board of Directors
With a Chairman
(GB)
Or President (US)

Managing Director (GB)

or
Chief Executive Officer
(US)

Production Marketing Finance Research & Human

Development Resources

Market Sales Advertising & Financial Accounting

Research Promotion Management

Northern Southern
Region Region

The most common verbs for describing structure are:

Consists of Contains Includes

Is composed of Is made up of Is divided into

e.g. The company consists of five main departments.

The marketing department is made up of three units.
The sales department is divided into two sections.

Other verbs frequently used to describe company organization include:

To be in charge of
To support or to be supported by
To be accountable to
To be responsible for
To assist or to be assisted by

3
e.g. The marketing department is in charge of the sales force.
The marketing department is responsible for advertising, sales promotions and market
research.
The five department heads are accountable to the Managing Director.

Now write a description of either the organization chart above, or a company you
know, in about 100-150 words.

GLOSSARY

JOINT VENTURE is a commercial enterprise undertaken jointly by two or more parties

which otherwise retain their distinct identities.

JOINT-STOCK COMPANY is a company whose stock is owned jointly by the

shareholders.