X o r I j iy t I l L a r

T ask 2. Read and retell the text.
Nearly every person who makes the decision to start a business is an 
entrepreneur because he or she is willing to take a risk. Usually people 
decide to start a business to gain profits and to “ do something on their 
o w n ” or to be their own boss. Entrepreneurs then gather the factors o f
production and decide on the form o f business organization that best suits 
their purposes. A n yone hoping to become an entrepreneur must also learn 
as much as possible about the business he or she plans to start. This 
process includes learning about the laws, regulations, and tax codes that 
will apply to the business. Elements o f Business Operation To start a 
business, you must make potential customers aware that your services are 
available for a price. You could have one-page fliers printed to advertise 
your business and pass them out. You could also buy advertising space in 
the local newspaper. Every business, regardless o f size, involves four 
elements: expenses, advertising, receipts and record keeping, and risk. 
Expenses If you own a painting business, you will need to purchase 
brushes and paint. As yo ur business grows, you might invest in paint 
sprayers so that you can complete j o b s faster. This new equipment would 
add to your income, but will probably take more money capital than you 
have on hand. Advertising You will quickly find out that letting potential 
customers know that you are in business is costly.
T ask 3. Give yo u r idea on the topic:” What is poor customer 
service?”

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What is lean operations?
T ask 2. R ead and retell the text.
Capital is money, and it is represented by securities— bonds mostly— that 
are traded on the w o r l d ’s capital 
markets 
ju s t 
like 
any 
other 
com m odity.T he price borrowers pay for money is the interest rate. This 
“ price” is determined by supply and demand. When there is a shortage 
o f money to lend, borrowers have to pay a higher interest rate. When 
money is plentiful , interest rates decline.
There is no single center for capital market trading. The w o r ld ’s 
securities are traded in a vast network o f electronically linked banks 
and securities houses located all over the world— from Tokyo and 
Singapore to L on d o n and N e w York. The international capital markets 
serve one major purpose: to get money from those who have it into 
the hands o f those who want it and are willing to pay a price to 
get it. Hundreds o f billions o f dollars— and euros, and yen and pounds—
are traded daily on the w o r ld ’s capital markets.
The international capital markets bring together a wide variety o f
borrowers and lenders. Investors can be as large as the California 
State E m p lo y e e s ’ Retirement Fund or as small as a Swiss farmer 
buying a bond at a local 
bank. Borrowers include corporations, 
governments, and 
international 
organizations— from 
IBM 
to 
the 
Kingdom o f Sweden to the African Developm ent Bank. How does it 
work? When a Swiss investor buys a bond o f the African Development 
Bank, the primary motivation isn’t necessarily to give money to Africa, 
even though that is the final result.