Контрольная работа: Modern Means of Business Communication

- deposits

- payments

- credits

These three functions are the bases of the services by banks. They make it possible for banks to generate profits and to achieve their operating aims:

- opening savings and current accounts

- offering credit services to customers: personal loans and different credit cards

- providing their customers travelling abroad with foreign currencies, travelling checks

- investment advice: banks open ways to find and invest large amount of money

- providing brokerage services

- offering a wide range of trust services for individuals and businesses.

Merchant banks don’t deal with the public. They provide services for companies.

Investment banks are firms that control the issue of new secrities (shares and bonds).

Savings banks are financial institutions in providing services such as savings accounts as opposed to general banking services.

4) Companies

Company is a corporate enterprise that operates as one single unit, in the success of which all the members participate. Company is made of a number of people united in an industrial or commercial enterprise. Each company works out its own policy. It is a selected, planes’ line of conduct in the light of which decisions are made and co-ordination of work achieved. There is a difference between a corporation, a sole trader and a partnership. The principle difference is that a sale trader end a partnership are not corporations but limited companies are. A corporation is a company that is publicly registered and legally separated from its owners. It means that the corporation stays in existence even after the death of any of its owners. An incorporated company is a legal person in its own right, able to own property. Limited Liability Company is a joint-stock company, the financial liability of whose members is limited by law. An unlimited company is one in which the liability of the members is not limited in any way. A registered company is the most common type of company. A company may be registered either as a public limited company or a private company. Private Limited Company is a limited company, which must not invite the public to subscribe for its shares or debentures, and does not allow its members to transfer their shares without the agreement of the other shareholders. It must have at least two but usually not more than fifty members. Public Limited Company is a limited company, which can offer its shares and debentures to the public; there is normally no limit to the right of its members to transfer their shares to other persons. There is no limit to the total number of members except that there must be at least seven. A public limited company must have a name ending with the initials "Pic" and have an authorized share capital. The regulation of such companies is stricter than of private companies. Most public companies are converted from private companies, under the registration procedure laid down in the Companies Act. Subsidiary Company is a company of which more than half the share-capital is owned by another company, called either a holding company or a parent company. The subsidiaries of the same parent or holding company are said to be affiliates. Many well-known companies are multinationals, these are companies which operate in a number of countries. A joint-stock company is a company in which the members pool their stock, trading on the basis of their joint stock. People in a company, its employees hold different positions. The relationship between those employees with different positions makes organization structure. At present most firms are divided into three major parts: capital (shareholders), management and labor. Let us take a typical company. There is a director who is a senior manager. He sits on the Board under the authority of the President. The Board decides what company policy and expenditure must be. The chief executive officer (CED) is the link between the Board and senior management. As for the middle managers, they run departments of a firm. They account to senior management for their area of work done. There is a difference between executive directors and non-executive ones. The directors, who run their firm on day-to-day basis are called executive directors. Those who sit on the Board and do not run the firm directly are called non-executive directors. In modern American English they use also the term inside directors for executive and outside directors for non-executive ones.

5) Product, Market and Market Relation

Product is everything that one receives in exchange. Some products are tangible and satisfy individual desires, while others are intangible but also important in satisfying individual interests. Products are divided into two classes: goods and services. For example, a hamburger is a good, while a doctor's examination is a service. When you buy an automobile, you are purchasing a good. When you have someone adjust a carburetor, however, you are purchasing a service. So good is a real, physical, tangible thing that produced and consumed. A service is an intangible attribute that involves selling help and advice, or delivering goods for customers.

The definition of the term product is based on the concept of a market. The market is an extension of the ancient idea of a market as a place where people gather to buy and sell goods. In former days part of a town was kept as the marketplace, and people would travel many kilometers on special market days in order to buy and sell various commodities. Today, however, markets such as the gold market or the cotton market do not need to have any fixed geographical location. Such a market is a set of transactions in which the transactions for this commodity among different individuals and firms are related.

Some people come to a market because they want to buy (demanders), others come because they want to sell (suppliers). A market is created when those who willingly supply a good exchange with those who desire to use, control or consume a good or service.

Supply and demand are the twin factors which determine the price in any market. Supply is the quantity of goods or services sellers will offer for sale at different prices at a particular time and place. Demand is the total amount of a type of goods or services that people or companies buy at a particular time and place.

Markets reallocate commodities from supplies to demanders. What if suppliers want to provide more than demanders want to purchase? Or, what if demanders want more than suppliers are willing to provide?

Excess supply occurs when, at a particular market price, the quality of demand. Excess demand occurs when, at a particular market price, there is more demand for something than available suppliers of it.

A market is equilibrium when the quantity that suppliers are willing to provide to the market at a specific market price is exactly equal to the quantity that demanders desire to purchase in the market at the same market price.

The importance of equilibrium is that the equilibrium relative price is the only price at which the interests of demanders happen to coincide precisely with the interests of the suppliers.

6) Finance

Finance is the function in a business that is responsible for obtaining funds, managing funds, within if and controlling them. Most organizations have finance managers or financial departments in charge of financial operations. Financial management performs the following finance functions.

Planning Collecting funds (Credit management)

Budgeting Auditing

Obtaining funds Managing taxes