Английский язык. Практический курс для решения бизнес-задач

Key Suppliers

Product / Service Delivery

Customer Service and Support

Human Resource Plan

Facilities

VII. Management and Organization

Management Team

Open Positions

Board of Directors

Key Personnel

Organizational Chart

VIII. Capitalization and Structure

Legal Structure of Company

Present Equity Positions

Deal Structure

Exit Strategy

IX. Development and Milestones

Milestones May Include Some or All of the Following:

Financing Commitments

Product Development Milestones

Prototype

Testing

Launch

Signing of Significant Contracts

Achievment of Break-even Performance

Expansion

Additional Funding

Any Other Significant Milestones

X. Risks and Contingencies

Some Common Risks Include:

Increased Competition

Loss of a Key Employee

Suppliers’ Failure to Meet Deadlines

Regulatory Changes

Change in Business Conditions

XI. Financial Projections

Assumptions (Start Date, Commissions, Tax Rates, Average Inventory, Sales

Forecasts, etc.)

Financial Statements (Balance Sheet, Income Statement, Cash Flow Statement)

Break Even Analysis

Key Ratio Projections (Quick Ratio, Current Ratio, D/E, D/A, ROE, ROA, Working

Capital)

Financial Resources

Financial Strategy

XII. Summary and Conclusions

Lesson 38

Business Law

Read and translate the texts and learn terms from the Essential Vocabulary.

Business Law

Business law is the body of rules, whether by convention, agreement, or national or international legislation, governing the dealings between persons in commercial matters.

Business law falls into two distinctive areas: (1) the regulation of commercial entities by the laws of company, partnership, agency, and bankruptcy and (2) the regulation of commercial transactions by the laws of contract and related fields.

In civil law countries, company law consists of statute law; in common law countries it consists partly of the ordinary rules of common law and equity and partly statute law. Two fundamental legal concepts underlie the whole of company law: the concept of legal personality and the theory of limited liability. Nearly all statutory rules are intended to protect either creditors or investors.

There are various forms of legal business entities ranging from the sole proprietor, who alone bears the risk and responsibility of running a business, taking the profits, but as such not forming any association in law and thus not regulated by special rules of law, to the registered company with limited liability and to multinational corporations. In a partnership, members «associate,» forming collectively an association in which they all participate in management and sharing profits, bearing the liability for the firm’s debts and being sued jointly and severally in relation to the firm’s contracts or tortious acts. All partners are agents for each other and as such are in a fiduciary relationship with one another. An agent is a person who is employed to bring his principal into contractual relations with third parties.

It is inevitable that in certain circumstances business entities might be unable to perform their financial obligations. With the development of the laws surrounding commercial enterprises, a body of rules developed relating to bankruptcy when a person or company is insolvent (i.e., unable to pay debts as and when they fall due), either he or his creditors may petition the court to take over the administration of his estate and its distribution among creditors. Three principles emerge: to secure fair and equal distribution of available property among the creditors, to free the debtor from his debts, and to enquire into the reasons for his insolvency.

Business law touches everyday lives through every contractual dealing undertaken. A contract, usually in the form of a commercial bargain involving some form of exchange of goods or services for a price, is a legally binding agreement made by two or more persons, enforceable by the courts. As such they may be written or oral, and to be binding the following must exist: an offer and unqualified acceptance thereof, intention to create legal relations, valuable consideration, and genuine consent (i.e., an absence of fraud). The terms must be legal, certain, and possible of performance.

Contractual relations, as the cornerstone of all commercial transactions, have resulted in the development of specific bodies of law within the scope of business law regulating (1) sale of goods, i.e., implied terms and conditions, the effects of performance, and breach of such contracts and remedies available to the parties; (2) the carriage of goods, including both national and international rules governing insurance, bills of lading, charter parties, and arbitrations; (3) consumer credit agreements; and (4) labour relations determining contractual rights and obligations between employers and employees and the regulation of trade unions.