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WOULD YOU LIKE TO START A BUSINESS?

If you want to start a business, you are to know some definite information about it. We suggest you to see how a company is formed from the very beginning. A company can be also called a firm or a business. When it is producing goods or trading, we say it is in business. A company which is just starting up is going into business and a firm which stops operating goes out of business. If a firm becomes bigger, it expands. The expansion means that a company will produce more goods or sell more products. A manufacturer produces goods. They are its products. When a manufacturing company expands, it means that it increases its production.

A company selling goods in large quantities (in bulk) is called a wholesaler. A person or a company buying in bulk (wholesale) and selling goods in small

Quantities is a retailer. Many local shops sell goods retail. Two or more compa-nies which sell or manufacture the same product are competitors. They are in competition and they compete for customers. To be ahead of its rivals the compa-ny must be competitive.

An area where there is a demand for certain goods is called a market. A com-pany selling locally sells its goods in the local market. If a company sells its goods at the same place where they are produced, it uses the home or domestic market. A firm selling abroad is an exporter. It sells on the international or overseas market. The goods it exports are exports. An importer buys goods abroad and imports them into his own country.

Exercises

I. Choose the right answer.

1. A firm which is just starting up is _______: a) going into business;

B) is in business;

C) going out of business.

2. A company which sells goods in large quantities is called _____: a) a wholesaler;

B) a retailer;