What is a proportional tax?

A proportional tax is one that imposes the same percentage rate of taxation on everyone, no matter what their income. . Even when income goes up, the per cent of total income paid in taxes does not change.

13. What is a progressive tax?A progressive tax is one that imposes a higher percentage rate of taxation of people with high incomes than on those with low incomes.

14. What is a regressive tax?A regressive tax is one that imposes a higher percentage rate of taxation on low incomes than on high incomes.

15. What is a property tax?A major source of revenue is the property tax — a tax on real property and tangible or intangible personal property.

16. What is the difference between tangible and intangible property?Tangible property is all tangible items of wealth not permanently attached to land or buildings, such as furniture, automobiles, the stock of goods in retail stores and clothing. Intangible personal property includes stocks, bonds, mortgages, and bank accounts.

BUSINESS ORGANIZATIONS

1. What is a business organization?The business organization is a profit-seeking enterprise that serves as the main link between scarce resources and consumer satisfaction.

2. What is the main purpose of a business organization?The main purpose of business organization is earning a profit.

3. What are the major types of business organizations?There are three major kinds of business organizations: the sole proprietorship, the partnership and the corporation.

4. What is a sole proprietorship?The most common form of business organization is the sole proprietorship - a business owned and run by one person.

5. What are the advantages of a sole proprietorship?The main advantage of a sole proprietorship is that it is the easiest form of business to start and run. There is almost no red tape involved. Proprietorships are able to open for business as soon as they set up operations. In the event that the owner wants to dissolve the business, a sole proprietorship is as easily dissolved as it is formed. Sole proprietors own all the profits of their enterprises and are free to make whatever changes they please. They have minimal legal restrictions and do not have to pay the special taxes placed on corporations. They also have the opportunity to achieve success and recognition through their individual efforts. Sole proprietorships are generally found in small-scale retail and service businesses such as beauty salons, repair shops, or service stations.

6. What are the disadvantages of a sole proprietorship?The major disadvantage of a sole proprietorship is the unlimited liability that each proprietor faces. Since the business and the owner are legally the same, the sole proprietor is liable for all financial losses or debts that the business may incur. If a business fails, the owner must personally assume the debts. This could mean the loss of personal property such as automobiles, homes and savings. second disadvantage of the sole proprietorship is that it has limited financial resources. The money that a proprietor can raise is limited by the amount of savings and ability to borrow. Another serious problem faced by the sole proprietorship is the lack of continuity of the business. When the owner dies, the business also legally terminates.

7. What is unlimited liability?Unlimited liability is a situation when the sole proprietor is liable for all financial losses or debts that the business may incur. If a business fails, the owner must personally assume the debts.

8. What is a partnership?A partnership is a business that is jointly owned by two or more people who have combined their talents and resources for the purpose of earning a profit.

9. What forms of partnerships do you know?I know such forms of partnership as general partnership and limited partnership.

10. What is the difference between a general partnership and limited partnership?General partners own the business, work in it and share the profits and losses. They are responsible for the management of the business and usually agree with each other before making any major decisions. Limited partners are only liable for the amount they have invested in the business. They are usually not involved in the management of the firm.

11. What are the advantages of a partnership?Like sole proprietorship they are easy to form and often get tax benefits from the government.

12. What disadvantages do partnerships have?The major disadvantage is unlimited financial liability. It means that each partner is responsible for all debts and is legally responsible for the whole business. But one of the greatest problems in partnerships is that partners may disagree with each other causing management conflicts.

13. What is a corporation?A business corporation is an institution established for the purpose of making profit.

14. What is necessary to form a corporation?To form a corporation it is necessary to file for permission in the state where the business will have its headquarters. If approved, a charter, government document that gives permission to create a corporation, is granted. The charter states the name of the company, address, purpose of business etc.

15. Who owns a corporation?A corporation is owned by a group of people, who formed it. These owners also have some number of shares of stock, or ownership parts of the firm.

16. What are the advantages of corporate form of ownership?The major advantage is the ability to acquire greater financial resources than other forms of ownership. The next advantage is that the corporation attracts a large amount of capital and can invest it in plants, equipment and research. It can offer higher salaries and thus attract talented managers and specialists. Corporations have great capacity for growth and expansion.

17. What disadvantages do corporations have?It is difficult and expensive to organize a corporation. The process of obtaining a charter usually requires the services of a lawyer. Most small firms prefer to avoid these expenses by forming proprietorships and partnerships. There is also an extra tax on corporate profits. The government taxes corporate income in addition to the taxes paid by shareholders on their dividends.

ECONOMY OF THE UNITED STATES OF AMERICA

1. What role does the government play in the US economy? What does it provide?The federal government does play an important part in the national economy. It provides services and goods that the market cannot provide effectively, such as national defense, public goods and services, assistance programs for low-income families, and interstate highways and airports. The government also provides incentives to encourage the production and consumption of certain types of products, and discourage the production and consumption of others, establishes guidelines regulating environmental protection.

2. What role does international trade play in the US economy?The international trade and the policies that encourage or restrict the growth of imports and exports have a wide-ranging effect on the US economy. It increases the total level of production and consumption in the world, lowers the cost of production and prices, that consumers pay, and increases the living standard.

3. What sectors the US economy can be divided into?The USA economy can be divided into four sectors that produce different kinds of goods and services. The first sector provides goods that come directly from natural resources. The second sector includes manufacturing and the generation of electricity. The third sector is made up of commerce and services. The fourth major economic sector deals with recording, processing, and transmission of information, and includes the communication industry.

4. What do the US economy sectors deal with?The first sector provides goods that come directly from natural resources: agriculture, forestry, fishing, and mining. The second sector includes manufacturing and the generation of electricity. The third sector is made up of commerce and services. The fourth major economic sector deals with recording, processing, and transmission of information, and includes the communication industry.

5. What are the leading categories of the US manufactured goods?The leading categories of the US manufactured goods are chemicals, industrial machinery, electronic equipment, processed foods, and transportation equipment.

6. What is the largest sector of the US economy in terms of output and employment?The largest sector of the economy in terms ofoutput and employment is the service and commerce sector.

7. Why are transportation-related businesses considered to be an important part of the service industry?Transportation-related businesses are an important part of the service industry. Trucks, railroads, and ships transport goods to the markets across the country. Commercial airlines, railroads, bus companies, and taxis move tourists and commuters to their destinations.

8. What are the major mineral resources of the USA?The United States has substantial mineral deposits within its borders. It leads the world in the production of phosphate and ranks second in gold, silver, iron ore, copper, lead, zinc, natural gas, and coal. The United States has huge fields of natural gas and oil. Petroleum production is third in the world.

9. What can you say about the country's petroleum production?Petroleum production is third in the world, after Russia and Saudi Arabia. Petroleum is refined into gasoline, heating oil, and the petrochemicals used to make plastics, paint, pharmaceuticals, and synthetic fibers.

10. What can you say about the US agriculture?Agricultural output in the United States has historically been among the highest in the world. The United States has some of the best cropland in the world. In part because of the nation's favourable climate, soil, and water conditions, farmers produce huge quantities of agricultural commodities and a variety of crops and livestock.

11. What makes the USA the world's richest agricultural nation?Cultivated farmland constitutes 19 percent of the land area of the country and makes the United States the world's richest agricultural nation.

12. Why is the USA self-sufficient in agricultural products?In part because of the nation's favourable climate, soil, and water conditions, farmers produce huge quantities of agricultural commodities and a variety of crops and livestock. That’s why the USA is self-sufficient in agricultural products.

13. What are the most wide-spread branches of animal husbandry?Cattle production, hog production, and chicken production are widespread throughout the United States.

14. Why is farming a big business in the USA?Cultivated farmland constitutes 19 percent of the land area of the country and makes the United States the world's richest agricultural nation. In part because of the nation's favourable climate, soil, and water conditions, farmers produce huge quantities of agricultural commodities and a variety of crops and livestock.

15.Why is the USA considered the largest trading nation in the world?The USA is considered the largest trading nation in the world because it exports and imports more goods and services than any other country. It increases the total level of production and consumption in the world, lowers the cost of production and prices, that consumers pay, and increases the living standard.

16. What is the key component of the US economy?Manufacturing is a key component of the US economy.

17. What type of economy does the USA have?The United States has a mixed economy, in which some industries are owned by the state and others are owned by individuals and groups of people.

18. What place does the USA occupy in the world in the production of electronic components?The country occupies second place in the world in the production of electronic components.

19. What main sources of energy are used in the US economy?The energy to power the nation's economy is derived primarily from petroleum, natural gas, and coal. Petroleum provides 39 percent and coal - 22 percent of the total energy consumed in the USA.

20. What industries are developed on the basis of steel industry?Coal and iron ore are the basis for the steel industry, which fabricates components for manufactured items such as automobiles, appliances, machinery, and other basic products.

ECONOMY OF GREAT BRITAIN

1. What type of the economy does Great Britain have?Great Britain has a mixed private and public enterprise economy.

2. What has been a key part of British economy for centuries?Trade has been a key part of the British economy for centuries.

3. What has its prosperity been dependent upon?Its prosperity has been dependent upon the export of manufactured goods in exchange for raw materials and foodstuffs.

4. What can you say about the international trade of Great Britain?Great Britain’s trade focus has shifted from the United States to the European Community, which now makes up over 50% of Britain’s trade.

5. What does Great Britain export and import?The country’s chief exports are manufactured goods such as electrical and electronic equipment, aerospace equipment, machinery, chemicals, textile fibers, fuels, iron and steel, and transport equipment. The leading imports are manufactured and consumer goods, foodstuffs, industrial and electrical machinery, semi-finished goods, clothing and accessories, office machines and data processing equipment, and transport equipment.

6. What sectors can the British economy be divided into? What does each deal with?The British economy can be divided into three main sectors: 1. Primary industries that deal with providing raw materials and food from the land and the sea (energy resources, agriculture, forestry, fishing and water supply). 2. Manufacturing industries that deal with making finished goods from raw materials (electronics, aerospace, chemical, plastics, paper and printing industries). 3. Service industries that deal with providing a wide variety of services (banking, insurance, computing, tourism etc)

7. Why is the country self-sufficient in energy?By successfully exploiting oil and gas from the North Sea Britain has become self-sufficient in energy.

8. What mineral resources does the country possess?Great Britain is also rich in such mineral resources as iron ore, tin, limestone, salt, china clay, gypsum, and lead.

9. What is British agriculture known for?The British agriculture is known for its high efficiency and productivity according to European standards and based on modern technology and research.

10. Production of what goods does manufacturing cover?It is a broad category of output covering production of textiles, wood and metal products, paper, plastics, rubber, vehicles, machinery and equipment, and a host of other produced goods.

11. What new industries has Britain made important advances in?Britain has originated a lot of advanced technologies in microelectronics. The main electronic consumer goods produced are television sets with an increasing proportion of widescreen and digital sets, electronic control equipment. Britain has historically been an innovator and world leader in many forms of transportation, from shipping to rail systems and aviation.

12. Why does Great Britain remain one of the most highly industrialized countries of the world?Thanks to the increasing use of intensive methods and modern technologies Great

Britain remains one of the most highly industrialized countries of the world.

13. Why is electronic data-processing equipment growing? What are the main electronic consumer goods produced in the UK?Electronic data-processing equipment is a growing industry. Britain has originated a lot of advanced technologies in microelectronics. The main electronic consumer goods produced are television sets with an increasing proportion of widescreen and digital sets, electronic control equipment.

14. What can you say about the central bank of England? What is it responsible for? How many commercial banks does Great Britain have?The Bank of England, as the central bank, was nationalized in 1946 and is the bank of issue in England and Wales. It is responsible for the monetary policy of the country and also manages the country’s foreign exchange and gold reserves. Great Britain has 17 major commercial banks with more than17.000 domestic and overseas branches.

15. Why does government support and promote tourism?The government supports and promotes tourism because Britain is one of the world’s foremost travel destinations and tourism is an essential part of Britain’s income.

16. What place does the United Kingdom hold in the world and in Europe?The United Kingdom of Great Britain and Northern Ireland, a leading trading power and financial centre, has the fourth largest economy in the world, the second largest in Europe, and is a member of the European Union as well as the United Nations and North-Atlantic Treaty Organization (NATO).

17. What is the United Kingdom composed by?The United Kingdom is composed by the political union of four constituent entities: England, Scotland and Wales on the island of Great Britain and Northern Ireland on the island of Ireland.

18. What does the government do to make the British economy more efficient?To make the British economy more efficient the government tries to stimulate innovations in industry, encourage competition, reduce taxes, promote exports, and work for world-wide free trade.

19. What are British farms engaged in?About three-fifths of farms are engaged in dairy or beef cattle breeding and sheep-raising. Pig-raising is also wide spread in the country.

20. What is the basic unit of currency in Britain? What did the British government decide about euro?The pound sterling is the basic unit of currency in Britain. The European Union established the euro as its unit of currency, and other EU members made the transition to the euro between 1990 and 2002. However, the British government decided not to adopt the euro and to keep the pound as its currency.

21. What can you say about the London Underground?London Underground operates more than 400 km of railway. Known as the tube, the system serves 275 stations, with more than 500 trains running during peak periods. The underground provides reliable public transportation for an impressive number of commuters across a larger metropolitan area. Glasgow, Liverpool, Tyne and Wear, Manchester, and Sheffield have their own urban rail system.

ECONOMY OF UKRAINE

1. What periods of economic development has Ukraine experienced since gaining its independence?Ukraine gained its sovereignty in 1991 on the break up of the former Soviet Union. Formerly a major industrial and agricultural component of the Soviet Union’s planned economy Ukraine’s economy experienced great recession during the 1990s including hyperinflation and drastic falls in its economic output. In 1992-1998 it fell to less than half the 1991 level. After a period of economic decline Ukraine recorded gradual economic growth. GDP increase was first registered in 2000. It showed strong export-based growth of 6 % and industrial production grew by 12.9 %. On February 1, 2006 the World Community granted Ukraine the Market economy status (MES). This brought the country closer to entering the European Union and the World Trade Organization, and after 15 years of negotiations on February 5, 2008 Ukraine was invited to join the WTO.

2. What mineral resources is Ukraine rich in?Ukraine is rich in such mineral recourses as coal, iron ore, manganese ore, mercury ore, uranium ore, sand, clay, salt, sulfur and granite.

3. What are the main branches of Ukrainian industry?The main branches of Ukrainian industry are ferrous metal industry, chemical industry, steel industry and machine building.

4. Why is steel industry the most important sector of the national economy?Steel industry is the most important sector of the national economy. The volumes of steel produced in our country make it the seventh largest producer in the world.

5. What is produced at Ukrainian plants and factories?The world’s largest rocket factory is located in Dnepropetrovsk. Airplanes are produced by the world’s famous company named after Antonov. The best tanks are produced in Kharkiv. The main shipbuilding factories are based in Mykolaiv and Kerch.

6. What does Ukraine import and export?Ukraine’s main imports are chemicals and fuels, machinery and transport vehicles. Ukraine exports metals, tractors, machinery, building materials, chemicals, consumer goods, crops and fertilizers.

7. Why is Ukraine dependent on energy imports?For lack of natural hydrocarbons Ukraine is dependent on energy imports.

8. Why does Ukraine play an important role in the energy security of Europe?Ukraine has a very important role to play in the energy security of Europe: 80 percent of all natural gas, about 120 billion cubic meters annually goes from Russia and Central Asia to Europe through Ukraine’s well-developed gas pipeline system.

9. What should be done for Ukraine to join the ranks of the developed countries of the world?Our strategic task is to realize the Ukrainian scientific, technological and production potential, and to join the ranks of the developed countries of the world.

10. What potential does Ukraine have?With its rich farmlands, a well-developed industrial base, highly trained labour, and a good education system, Ukraine has the potential to become a major European economy.

11. What agricultural products does Ukraine export and import?Ukraine exports such agricultural products as wheat, corn, oats, rye, sugar beets and sunflower seeds Ukraine imports lemons, oranges, bananas, cocoes, some kinds of meat and fish.

12. What does Ukraine’s livestock sector cover?Ukraine’s livestock sector covers cattle and diary breeding, pig raising, beef cattle, sheep raising, goats raising, poultry farming, fishing, and bee-farming.

13. What sector can be regarded as the first priority in the Ukrainian economy?The agricultural processing sector is regarded as the first priority in the Ukrainian economy.

14. What affects the level of agricultural productivity?The level of state support to domestic agricultural producers affects the level of agricultural productivity. Despite fertile lands the level of productivity remains low in comparison with most European countries. The reason is the shortage of new technologies, machinery and skilled specialists. There is also a lack of good sizeable storage facilities for agricultural commodities.

15. What do you think about the role of investments in agribusiness?Foreign investments in agribusiness are also rather important for the country’s economy. Foreign direct investments bring not only capital into the country but also new management and technical skills as well as new technology and production methods.

16. What can you say about our nation’s recent energy strategy?The recent energy strategy intends gradual decreasing of gas- and oil-based generation in favor of nuclear power, as well as energy saving measures, shortening industrial gas consuming.

17. What can you say about country’s light industry?The country’s light industry has experienced great changes lately. It manufactures such processed foods as refined sugar, canned foods, and wine; consumer goods, including television sets, washing machines, refrigerators, clothes, shoes, and chemical fertilizers as well.

18. What factors make Ukraine’s agriculture one of the key economic sectors?Agriculture, one of the country’s key economic sectors, produces 12.8% of GDP employing a fifth of the working population.Ukraine has a favorable combination of moderate climate, fertile black soils, called chernozem, and labor resources, as well as developed transport infrastructure, and close foreign markets.

19. What food and industrial crops are grown on the territory of Ukraine?Ukraine ranks as a leading wheat-growing country. Besides wheat, such grains as barley, corn, legumes, oats, rye, millet, buckwheat are grown. Other food crops include potatoes, vegetables, melons, berries, other fruit, nuts, and grapes. Ukraine is the world's largest producer of sugar beets and sunflower seeds.

20. Why does Ukrainian livestock sector need to be revived and restored? Ukraine's livestock sector lags behind the crop sector, because of insufficient government support and low private investment amounts. The country’s cattle breeding needs significant investments in order to revive and restore livestock.

21. What do farmers breed near cities?Near cities farmers breed cattle and pigs, chickens, geese, and turkeys.