Английский язык. Лобакина Е.В - 4 стр.

                                            4
 Finally, there is the type of business which started many years ago. It has now
become a large company and its shares are spread among various members of the
family. Some may have no interest in the company, while others have different ideas
about how to run it. Shareholders disagree strongly, so it becomes difficult to run the
company properly. In such a case, the only solution may be to obtain a quotation on the
Stock Exchange.
 There is one reason why the owners of a company may not wish to obtain a quotation.
If the directors are the only shareholders – or have very large shareholdings – in their
company, they may be getting substantial benefits from it. For example, the business
may own things like the directors` houses, their cars and even their wives` cars. It pays
perhaps for their petrol and holidays, which are business expenses. In this case, it may
be better not to become a quoted company.

Ex.4. Comprehension. Answer the following questions.

1) What is the main difference between a private and quoted company?
2) Companies sometimes obtain a stock exchange quotation. Why do they do it?
3) How does a company obtain a stock exchange quotation?
4) Why do some companies prefer not to ask the bank to finance their expansion?
5) Explain the meaning of these phrases:
- tied up
- substantial benefits
6) What problem can arise if several members of a family have shareholdings in a
company?
7) Some directors do not want their companies to obtain a stock exchange quotation.
Why?

Ex.5. Fill in the gaps with the words and expressions from the text.

1)      A private company cannot ….. to buy its ….. .
2)      If a company wishes ….. , it applies to ….. for a quotation.
3)      This ….. is a statement of the share price.
4)      One of the ….. why companies obtain a quotation is ….. to expand their
businesses.
5)      Some companies ….. by their owners over the years.
6)      One of shareholders doesn’t want ….. in the business.
7)      Sometimes the owners of a company may not ….. quotation.

Ex.6. Paraphrase, replacing underlined words.

1)      A private company cannot invite the general public.
2)      When a company wishes to be quoted it applies to the Stock Exchange.
3)      Many companies need to raise money to expand their business.
4)      The owner doesn’t want all his money to be tied up in the business.
5)      It becomes difficult to run the company properly.