Answer the following questions on the text

Test Paper №1.

Variant 1.

I Read the following text and translate it in writing:

ENTREPRENEURSHIP

An entrepreneur organizes an enterprise. He also takes the risk of a business in return for the profits. He buys the workers' products (their labour services). The workers receive wages in return for their work. An en­trepreneur also introduces new products or processes. He identifies markets and sources of supply.

In many cases, owners delegate decisions to manag­ers. Is a salaried manager an entrepreneur, too? Some people think that owners very seldom delegate a key de­cision to managers, because owners do not trust them. But in practice many subordinates have incentives to maintain the company's well-being because their pro­motion depends upon it. In this sense, both owners and managers can be entrepreneurs. So, an entrepreneur is either an owner or a manager who shows judgement in decision making.

Judgement helps to make successful decisions. An entrepreneur needs judgement to speculate on future price movements, as well as to deal with the novel situ­ations.

The demand for entrepreneurs rises in times of po­litical, social, and environmental change. Supply usually matches demand, so more people give up other careers and become entrepreneurs. They have incentives to do so by the higher expected rewards, and also by increases in the social status of entrepreneurs.

The supply of entrepreneurs depends also on their personality, culture, and life experience.

To identify profitable opportunities the entrepreneur synthesizes information from different sources. A good education and wide-ranging practical experience helps the entrepreneur to interpret information. Sociability also helps the entrepreneur to make contact with people he works with — both customers and colleagues.

II Do the following tasks to the text given up:

Answer the following questions on the text.

1)Who organizes an enterprise?

2) Why does he take the risk of a business?

3) What do the workers receive in return for their work?

4) What does the businessman identify?

5) Who do owners delegate decisions to?

6) Is a salaried manager an entrepreneur, too?

7) Why do some people think that owners very sel­dom delegate a key decision to managers?

8) Why do many subordinates have incentives to maintain the company's well-being?

9) What does the subordinates' promotion depend upon?

10) What do the owners show judgement in?