Reading
Before reading
Ex.20. Answer the following questions. Refer to the text if needed.
Ex. 19. Read the text. Choose the best sentence A-F to fill each of the gaps 1-7. Do not use any letter more than once. There is an example at the beginning.
0 then it's a good idea to start a for-profit company
A which must generally demonstrate a benevolent component.
B but because an NPO can legally and ethically trade at a profit,
C are funded typically by donations
D Many have paid staff including management,
E while for-profits distribute their profits to their owners or stockholders.
F including city, county, state, and federal agencies.
1. What is the difference between for-profit and nonprofit organisations?
2. What categories do nonprofit organisations fall into?
3. What groups of people do trade associations unite?
4. What do you think is the aim of charitable organisations? Give examples of such organisations.
5. Can nonprofit organizations earn profit? If yes, what do they use it for?
6. How are most NPOs funded?
7. Do NPOs have to pay taxes?
Ex.21. Find in the text the following phrases and choose the most suitable explanation:
1. launching a business
a) starting business activity;
b) completing business activity;
c) developing business activity
2. the public at large
a) politicians;
b) powerful and influential people;
c) general public
3. the best route
a) the best place;
b) the best way;
c) the best management
4. fraternal organizations
a) brotherhoods;
b) fatherhoods;
c) motherhoods
5. benevolent (component)
a) improving a situation;
b) very popular with smb;
c) kind and generous
6. to internalize (profit)
a) to closely connect with smth;
b) make smth international;
c) make smth personal, use smth for one’s own needs .
TEXT C: FRANCHISING
Can you explain what franchising mean? Without looking at the logos below, give examples of franchises.
Read a text from the Franchise Direct website and do the tasks following it.
(1) You want to be your own boss running your own business, but you are not sure where to start, what resources you need, how to market products and services, how to hire and train employees etc. Don’t despair – a franchise opportunity could the right choice for you.
(2) You’ve seen the slogans:
“Be in business for yourself, but not by yourself.”
“When you succeed, we succeed.”
“We’ve been successfully putting people like you in business for 16 years!”
“Be your own boss; we’ll help you get there.”
These quotations from franchisors convey the idea that even though you work for yourself, franchising is first and foremost about partnership. Franchising is everywhere in the first decade of the 21st century so partnership with a proven brand is clearly a winning formula for many small business owners.
(3) When people think of franchising, the most common example that comes to mind is McDonald’s. But franchising has older roots, and it is Isaac Singer, the inventor of the sewing machine in 1858, who is credited with starting the franchise concept. After successfully inventing the new machine, he needed a way to distribute them by people trained to use the machines. So a legal system for selling the rights to distribute a service or product was born.
(4) Put simply, a franchiseis a method by which the owner of the business, the franchisor, confers on investors, the franchisees, the right to operate the business in an agreed manner and style in return for ongoing fees. The agreement is governed by a contract, the Franchise agreement, which runs for a defined period of time, generally renewable and ranging from five to 20 years.
(5) What is it you are buying when you invest in a franchise? A franchise operation is a fully operational business concept that is proven, with operating processes clearly mapped out in an Operations Manual. Most franchisors provide comprehensive training in how to operate the business, and give clear instructions on all the visible trappings such as trademarks, logos, uniforms, furnishings etc.
(6) Franchise opportunities are everywhere, and their success and widespread popularity offer endless potential. And you can bet that when new trends emerge and grow popular -- be it in food, exercise, home improvement, pet care, party planning, etc. – franchised versions ready to profit from these trends are sure to follow. What types of new franchises will be popular in the near future? Anything that helps busy people manage their home lives and domestic tasks. And the current concerns about global warming are sure to generate companies that offer “green” eco-friendly products and services, such as lawn care, prepared foods, cosmetics, and cleaning supplies. For the individual who wants to start a business, franchising offers a wide array of new opportunities. For the existing successful business, franchising can be the model for rapid expansion.
(7) It should also be noted that there are several types of business opportunities that involve partnership but are not franchises. These include:
· Dealerships – where an existing business owner, such as a home décor store, is licensed to sell a company’s line of products, such as floor tiles or paint.
· Distributorships – this is an opportunity where a business owner invests in equipment, such as DVD kiosks or coffee makers, and distributes them in high traffic locations, like malls or offices.
Task 1. Look through the text and say what is the main advantage of franchising. Can you think of any disadvantages?
Task 2. Explain slogans of well-known franchises given in para.2.
Task 3. To be credited with smth means
a) to be given money from a bank;
b) to be of a particular type or quality;
c) to be responsible for doing smth, especially smth good. (para.3)
Task 4. In what spheres of business do you think franchising will be most popular in future?
Task 5. True or false?
1) A franchise is a formal permission given by a company to smb who wants to sell its goods or services in a particular area. (para.4)
2) The franchise agreement is of an idefinite duration. (para.4)
3) As a franchisee, you have to use the franchisor’s trademark and logo but you have freedom in determining your inner policies, for example concerning the dresscode. (para.5)
4) Dealerships and distributorships are two forms of franchising. (para.7)