VOCABULARY LIST

Date: 2015-10-07; view: 444.

Ex. 11. Read the dialogue below, sum up its content and act it out:

Foreigner: Western businessmen used to complain that they couldn't work widely in the Ukranian market first of all because the forms of business organization were not developed. How do things stand these days?

Ukrainian: The situation is different now. The ongoing reforms have drastically altered the environment in which Ukrainian enterprises are operating now.

F: True. The massive shift you are making now from a command to a market economy is really unprecedented.

U.: You are right. Liberalization of economy, restructuring of production sectors, an extensive privatization programme have brought about real changes and led to the creation of types of business unit accepted throughout the world.

F.:You mean that now your businesses operate as partnerships, cooperative societies, and joint-stock companies.

U.: Yes, let me give you just one example. Like in the West we have now two types of partnership. General partnerships with partners bearing joint and several liabilities for debts and wrongdoing and limited partnerships that include one or more general partners who bear full liability and run the business, plus one or more limited partners, who bear limited liability. They do not have a voice in the firm's day-to-day management, they are in much the same position as shareholders in a corporation.

F.: Now that you've mentioned corporations, do they play an important role in your economy?

U.: Yes. Like in the West, they exist as independent legal entities with the capital divided into shares. The liability of shareholders is limited.

F.: Your practice here fully coincides with Western principles. Creditors or people bringing lawsuits against corporations can make claims against the assets of the corporation only.

U: Yes, limited liability is the biggest advantage of this form of business organization.

F.: Our businessmen when floating a company, sign a memorandum of association, and then they draw up articles of association and submit them to the registrar of companies issuing a certificate of incorporation. Is the procedure of registration complicated here?

U: No, the procedure is similar to what you've said, and after the registration our companies can also do all the legal things like own property, employ people, sue and be sued in the courts and so on.

F: All businesses seek profits. But in any market economy there is a certain number of business units which are non-profitmaking and are formed to confer certain benefits upon their members.

U.: You mean cooperative societies, don't you? Yes, we have such voluntary associations based on membership.

F: Well, another point ... In market economies such activities as supplying gas, electricity, and water are conducted by state-owned enterprises. How about Ukraine?

U.: Natural monopolies including transport are controlled by the state in Ukraine, too. Besides, many other activities are conducted by socially-owned enterprises. For example, we have introduced a new form of unitary state enterprises.

F.: What's the idea?

U.: Such enterprises have no right of ownership of the assets. Assets are assigned to such enterprises to be used for economic activity.

F.: It's an interesting form. And how can foreign firms participate in Ukrainian business?

U.: Oh, now it can be done in many ways which are stipulated by our legislation.

F.: If I'm not mistaken, in spite of all your reforms your legislation is

still rather complicated.

U.: Yes, that's true, foreigners wishing to enter our market often have

to take advice on legal matters.