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4.1. A declining industry would present no serious economic problems…

a) if labour and resources were extremely mobile

B) if labour and assets were extremely mobile

c) if labour and capital were extremely mobile

4.2. Large expenditures on … involve great risks

a) salaries and fringe benefits

b) research and development

c) training of personnel

4.3.Several government agencies exist ….

a) to offer advice and help firms introducing new tech­nology

b) to offer advice and control firms introducing new tech­nology

c) to improve the practice of management

4.4. The UK's economic growth and abili­ty to compete in world markets depends

very much on ….

a) the existence of corporate securities market

b) the existence of cross-border trading

c) the existence of a skilled and adaptable labour force

4.5. There is a view that the relatively slow growth of productivity in British

industry was partly due to ….

a) the thinness of the market

b) a big price disturbance

c) constant changes in government economic policy

Т Е К С Т Ы Д Л Я Ч Т Е Н И Я

ДЛЯ ВСЕХ ЭКОНОМИЧЕСКИХ СПЕЦИАЛЬНОСТЕЙ

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THE PARTNERSHIP

Partnerships are voluntary combinations of from 2 to 20 persons formed for the purpose of carrying on business with a view of profit. This type of organisation represents a logi­cal development from the one-person business since the obvious method by which such a firm may acquire further capital is to form a partnership. The motive, however, may not be financial and partnerships are often formed in order to bring new ability and enterprise into the business.

The partners usually share in the task of running the business, but a partner need not play an active role. A per­son who joins a partnership, supplying capital and sharing in the profits, but taking no part in the management is known as a dormant or sleeping partner. Partnerships are a com­mon form of business organisation in such professions as law, accountancy, surveying, and medicine.

The advantages of this type of firm are similar to those of the one-person business. It is a flexible organisation which allows a greater degree of specialization than the one-person business. Partners usually specialize in one or more aspects of the business; one may be responsible for buying, one for selling, one for production, and so on. Since it has greater access to capital, it can achieve greater size than the sole proprietor.

The great disadvantage, like that of the one-person business, is the fact that the liability of the partners is unlim­ited and they are all fully liable for the acts of the other part­ners. There are, however, some limited partnerships which have to be registered with the Registrar of Companies. In such firms some partners (e.g. dormant partners) may have their liability limited to some specified sum, but at least one of the partners must have unlimited liability.

The survival of a partnership depends upon the contin­ued harmonious relationship between a number of people in situations which often give much cause for disagreement. Thus, where trading risks are very great, the partnership is not a very stable type of organisation.

TAXATION

Everyone knows that taxation is necessary in a modern state: Without it, it would not be possible to pay the soldiers and policemen who protect us, nor the workers in govern­ment offices who look after our health, our food, our water, and all the other things that we cannot do for ourselves, nor also the ministers and members of parliament who gov­ern the country for us. By means of taxation we pay for things that we need just as much as we need somewhere to live and something to eat.

But though everyone knows that taxation is necessary, different people have different ideas about how taxation should be arranged. Should each person have to pay a cer­tain amount of money to the government each year? Or should there be a tax on things that people buy and sell? If the first kind of taxation is used, should everyone pay the same tax, whether he is rich or poor? If the second kind of taxation is preferred, should everything be taxed equally?

In most countries, a direct tax on persons, which is called income tax, exists. It is arranged in such a way, that the poorest people pay nothing, and the percentage of tax grows greater as the taxpayer's income grows.

But countries with direct taxation nearly always have indirect taxation, too. Many things imported into the coun­try have to pay taxes or "duties". Of course, it is the men and women who buy these imported things in the shops who really have to pay the duties, in the form of higher prices. In some countries, too, there is a tax on things sold in the shops. If the most necessary things are taxed, a lot of money is collected, but the poor people suffer most. If un­necessary things like jewels and fur coats are taxed, less money is obtained, but the tax is fairer, as the rich pay it.

Probably this last kind of indirect tax, together with a direct tax on incomes which is low for the poor and high for the rich, is the best arrangement.