UNIT I
THE LEGAL STRUCTURE OF BUSINESS ENTERPRISES
SECTION A
sole proprietorship = единоличное хозяйство (ПБОЮЛ)
to secure a licence = получить лицензию
freelance = внештатный, свободный
to raise funds/capital = привлекать денежные средства
to derive profits = получать прибыль
to bear losses = терпеть убытки
unlimited liability = неограниченная ответственность
joint and several liability = солидарная и индивидуальная
ответственность
9. to cease to exist = прекратить существование
10. a requisite = все необходимое
11. to respond to the demands = удовлетворять спрос
12. enter into a written agreement = заключить письменное соглашение
13. filing = подача документов на регистрацию
14. separate entity = отдельное юридическое лицо
15. taxable = налогооблагаемый
16. income tax = подоходный налог
17. a distinguished feature = отличительная черта
18. commitment = обязательство
19. to incur debts = влезть в долги
20. on behalf of = от чьего-либо имени (лица)
21. in predefined proportions = в заранее оговоренных долях
22. a limited term project = ограниченный во времени проект
23. a financial backer = спонсор
1.
2.
3.
4.
5.
6.
7.
8.
1.A.1. Read the following texts:
THE SOLE PROPRIETORSHIP
A sole proprietorship is the simplest form of business ownership. Not
surprisingly, the vast majority of small businesses are set up as sole
proprietorships. A sole proprietorship has but one owner (sole proprietor, or
sole trader) who may engage in any form of legal business activity any time
and anywhere. Sole proprietorships are easy to set and maintain. No legal
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formalities are required to start or operate the business other than securing a
local or state business licence. For example, if you are a freelance
photographer or writer, a craftsman who takes jobs on a contract basis, or a
sales person who receives only commissions, you are automatically a sole
proprietor.
The owner of the business is responsible for raising and investing funds
which may come from the owner’s personal or borrowed financial resources.
A sole proprietor keeps all profits derived from the operation, but must also
bear all losses. The owner has the authority to make all decisions relating to
business, as there are no co-owners, he or she can hire employees or work
with independent consultants and still retain the sole proprietorship form of
ownership.
Unlimited liability is the main disadvantage borne by a sole
proprietorship. The owner is financially responsible for satisfying all business
debts and/or losses suffered by the firm, even to the point of sacrificing his or
her personal property to pay off any liability.
A business organized as a sole proprietorship will likely have a hard
time raising capital since shares of the business cannot be sold. The life span
of the business is also uncertain. As soon as the owner decides not have the
business anymore, or the owner dies, the business ceases to exist.
THE PARTNERSHIP
A partnership (also known as a general partnership) is formed when two or
more people agree to work together and carry on a business activity. This
agreement can be oral or, otherwise, partners can enter into a written
agreement known as the Articles of Partnership. No local or state filings are
required to set up a partnership. With regard to taxes, the partnership is not a
separate taxable entity, but instead the profits pass through to the partners who
pay for them as income tax.
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The distinguished feature of a partnership is the unlimited liability of
the partners. Each partner is personally liable for all the commitments of the
partnership, including all debts incurred by any of the partners on behalf of the
partnership. For example, Dr. Smith may be one of the ten partners in a
medical partnership, he is not responsible for only 10 percent of partnership
obligations. He is responsible for 100 percent, even though he owns only a 10
percent interest. If Dr. Smith’s other partners are unable to pay their respective
shares, he must pay the entire amount.
Because each of the partners has unlimited personal liability, the
general partnership is the single most dangerous form for conducting business.
Not only is a partner liable for contacts entered into by other partners, each
partner is also liable for the other partner’s negligence.
THE LIMITED PARTNERSHIP
The limited partnership is a legal structure similar to the general partnership,
except that in addition to one or more general partners (GPs), there are one or
more limited partners (LPs). The GPs in a limited partnership have unlimited
joint and several liability for the debts of the partnership. At the same time
they have management control and share the profits of the firm in predefined
proportions. The LPs are the ones who invest, do not participate in running the
partnership and have no management authority. Their liability is limited to the
amount of their investment.
In the United States limited partnerships are most common in the film
industry or in types of businesses that focus on a single or limited term
project. They are also useful in “labour-capital” partnerships, where one or
more financial backers prefer to contribute money or resources while the other
partner performs the actual work. Well-known limited partnerships include
Bloomberg L.P. and CNN.
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Comprehension
1.A.2. Answer the questions based on the texts:
1. What are the advantages and disadvantages of the sole proprietorship?
2. What are the requisites for a sole trader’s success?
3. What features do the sole proprietorship and the partnership have in
common?
4. What are the advantages and disadvantages of the partnership?
5. What is the difference between the general and the limited partnership?
6. What businesses are most typical for partnerships?
1.A.3. Agree or disagree with the following statements:
1. A sole proprietor is liable for the debts of his business with all his
assets, except for his personal bank account.
2. The general partnership is the most popular legal structure, as it is the
safest form of conducting business.
3. Limited partners are directly involved in running the firm.
4. The general partnership is a separate legal entity and is taxed as such.
5. General partners always pay off the debts of their business in their
respective shares.
6. Limited partnerships are most common in businesses that focus on
single projects.
1.A.4. Complete the text using the words in the box:
Requisites for Success
positive, profound,
sufficient, hard,
light, successful, important,
applicable, tight, considerable,
appropriate,
promptly
(1) .……. sole proprietors should possess a (2) ….…. outlook and enthusiasm.
They should work (3) …….. , particularly during the first several years. They
need to be (4) …….. on their feet, (5) .……. responding to customers’
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demands. It is (6) …….. for sole proprietors to have (7) ……. education and
possess (8) …….. business experience. They should be able to plan, organize
and keep (9) …….. financial control. It is recommended that sole proprietors,
being self-starters, should select an (10) …….. type of business in which they
have both (11) …….. skills and (12) …….. interest.
1.A.5. Match the words with similar meanings:
1. to set up
a) to lay
2. to manage
b) to raise
3. to dissolve
c) to incur
4. to attract
d) to allocate
5. to distribute
e) to found
6. to levy
f) to cover
7. to impose
g) to charge
8. to run into
h) to terminate
9. to meet
i) to forfeit
10.to forgo
j) to operate
1.A.6. Choose the noun which collocates with the following groups of
verbs, translate the collocations into Russian:
a) share, b) capital, c) firm, d) profit, e) tax, f) expenses
1. to found, to establish, to set up, to run, to operate, to manage, to dissolve,
to terminate, to liquidate, to acquire, to merge, to take over;
2. to attract, to raise, to earn, to generate, to borrow, to lend, to provide, to
invest, to secure, to withdraw;
3. to apply, to allot, to hold, to place with the public, to subscribe for, to
issue;
4. to earn, to make, to yield, to compute, to tax, to distribute, to allot;
5. to impose, to introduce, to lay, to pay, to collect, to withhold, to accrue, to
cut down, to avoid, to evade;
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6. to incur, to run into, to go to, to bear, to reduce, to reimburse, to pay, to
meet, to cover, to calculate.
1.A.7. Render into English:
Индивидуальное предпринимательство.
Индивидуальный предприниматель определяет место своей
деятельности и вкладывает в дело свой личный капитал. Все, что
ему нужно, - это иметь достаточные для начала дела средства и
знать местные законы. Это простейшая и самая дешевая форма
предпринимательства.
Преимущества:
- проще всего начать;
- дешевле всего организовать;
- самая гибкая структура, ибо в ваших руках все полномочия.
Недостатки:
- неограниченная личная ответственность за долги и
ответственность перед законом;
- нестабильность. Ваша болезнь или смерть – угроза для
Вашего бизнеса;
- бремя ответственности и ограниченность ресурсов;
- личные дела легко спутать с бизнесом.
Товарищество.
Вы и еще один или больше человек согласились объединить свою
собственность и создать товарищество. Вам необходимо только
составить письменное соглашение о разделе капитала и дивидендов
между участниками (Agreement of Capital and Dividends Share) и устав
(Statute), где оговорены все положения об управлении товариществом.
Для товарищества предусмотрен неограниченный срок деятельности и
неограниченная ответственность по крайней мере одного из партнеров.
Преимущества:
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- просто организовать;
- рабочая нагрузка, идеи, опыт и ответственность делятся
между партнерами;
- потенциальные дополнительные источники капитала;
- участники не платят корпоративного налога;
- каждый из основных партнеров может действовать от
имени товарищества.
Недостатки:
- основные партнеры имеют неограниченную личную
ответственность;
- в случае банкротства партнеры с наибольшими личными
взносами теряют больше;
- бывает сложно правильно определить долю участия
каждого партнера в делах фирмы;
- трудно избавиться от плохого партнера.
SECTION B
a legal entity = юридическое лицо
a subsidiary = дочерняя компания, филиал
share capital = акционерный капитал
Board of Directors = совет директоров акционерной компании
assets = активы, имущество
accumulation of capital = накопление капитала
Memorandum of Association (UK), Certificate of Incorporation (USA) =
учредительский договор
8. Articles of Association (UK), Bylaws (USA) = устав акционерной
компании
9. registered office = юридический адрес
10. private limited company = частная компания с ограниченной
ответственностью
11. public limited company = публичная компания с ограниченной
ответственностью
1.
2.
3.
4.
5.
6.
7.
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12. to be publicly traded on the stock exchange = свободно продаваться и
покупаться на бирже
13. incorporated = зарегистрированный как корпорация
14. chairman = председатель совета директоров
15. initial public offering (IPO) = изначальное открытое предложение
(первая продажа акций компании широкой публике)
16. stock (USA) = акции
17. annual shareholders’ meeting = ежегодное собрание акционеров
18. revenue = доход, выручка
19. core business = основной вид деятельности компании
20. embrace = зд. воспользоваться
21. extend = зд. расширить возможности
22. incompatible version = несовместимая версия
23. competing product = конкурирующий товар
24. performance = показатели эффективности
25. vision = концепция, видение
26. charitable deeds = акты благотворительности.
1.B.1. Read the following texts:
THE CORPORATION
A corporation (a large company, usually with several subsidiaries) is a
separate legal entity set up to conduct business. In modern times corporations
have become an increasingly dominant part of economic life. People rely on
corporations for employment, for their goods and services, for economic
growth and social development.
The defining feature of a corporation is its legal independence from the
people who create it. If a corporation fails, shareholders will only lose their
investment, but will not be responsible for the corporation’s debts and
obligations. Their liability will be limited to the value of their share capital,
e.i. the amount of cash they have contributed to the corporation. Limited
liability greatly reduces the risk for potential shareholders and increases both
the number of willing shareholders and the amount of share capital they are
likely to invest.
The shareholders (who are, in fact, the owners of the corporation) are
not directly involved in the day-to-day running of the corporation. Instead,
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they delegate the management function to a group of qualified professionals,
elected by the shareholders and known as a Board of Directors.
The assets and the lifespan of a corporation exist beyond the lifetime of
its shareholders. This allows for stability and accumulation of capital which
becomes available for investment in larger size and linger term projects.
STARTING A COMPANY
When people start (or set up) companies they have to prepare a set of
documents to be filed with the local or state authorities. In the UK these
documents include:
 A Memorandum of Association (in the USA, a Certificate of
Incorporation), giving details of a company’s particulars (name,
registered office, authorized share capital), its aims and objectives.
 Articles of Association (in the USA, Bylaws), stating the rights and
duties of the shareholders and directors, as well as the relationships
among different classes of shareholders.
There are two types of limited companies – private limited companies (which
have “Ltd.” at the end of their name) and public limited companies (which
have “PLC” at the end). Shares of private limited companies cannot be sold on
the open market unless all the shareholders agree to sell to a particular buyer.
The shares of PLCs are publicly traded on the stock exchange.
Comprehension
1.B.2. Answer the questions based on the text:
1. What is a corporation?
2. What is the defining feature of a corporation?
3. What makes it possible for a corporation to be involved in large-scale
and long-term projects?
4. What documents have to be prepared by the founders of a company?
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5. What is the difference between a private limited company and a public
limited company?
6. What are the advantages of a company/corporation compared to a
partnership?
1.B.3. Agree or disagree with the following statements:
1. The importance of corporations in economic life has decreased in the
recent years.
2. Shareholders’ liability is limited to the value of their investment.
3. Limited liability reduces the number of potential shareholders.
4. Shareholders form the Board of Directors and manage the day-to-day
activities of the corporation.
5. The lifespan of a corporation coincides with the lifetime of its
shareholders.
6. Articles of Association contain information on the company’s name,
registered office and authorized share capital.
1.B.4. Read the text and fill the gaps with the prepositions where
necessary:
“Large media corporations, together … computer companies such as Microsoft and
Intel, are planning to make your computer obey … them instead … you”.
Richard Stallman, founder of the Free Software
Foundation
Bill Gates, born 28 October 1955, is the head (1)… the software
company Microsoft and one (2)… the world’s wealthiest men.
Microsoft was founded
(3)… Gates (4)… the 1970s. In 1981 the
company was incorporated (5)… Microsoft, Inc., with Gates (6)…
president and chairman. In March 1986 Microsoft held an initial public
offering (IPO) (7)… 2.5 million shares which raised $ 61 million.
Within a year the stock had risen (8)… $ 28 (9)… $ 85, making Bill
Gates a billionaire (10)… the age (11)… 31.
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The corporation is run (12)… a Board (13)… Directors consisting
(14)… ten people. The Board members are elected every year (15)…
the annual shareholder’s meeting. With yearly revenues (16)… more
than $ 32 billion, Microsoft Corporation is more than the largest
software company (17)… the world: it is a cultural phenomenon. The
company’s core business is based (18)… developing, manufacturing
and licensing software products.
The head (19)… Microsoft Bill Gates has a reputation (20)… an
intense businessman who typically works 16-hour days and (21)… the
first five years (22)… establishing the corporation took only two threeday vacations. His business tactics are known (23)… quite aggressive
and are often described (24)… the motto “embrace, extend and
extinguish”. Microsoft initially embraces a competing standard or
product, then extends it to produce their own incompatible version
(25)… the software or standard, which (26)… time extinguishes (27)…
competition that does not or cannot use Microsoft’s new version.
However, despite (28)… the criticism, (29)… January 2007 The wall
Street Journal Reputation Quotient survey came (30)… the conclusion
that Microsoft had the world’s best corporate reputation, citing strong
financial performance, vision and leadership, and the charitable deeds
(31)… the Bill & Melinda Gates Foundation.
1.B.5. Match the term on the left with the definition on the right:
1. subsidiary
a. all that belongs to a company and has a value
2. limited liability
b. funds raised by a company through the issue of
shares
3. authorized share
capital
c. document which establishes the internal
regulations of the company’s activities
4. assets
d. company that is wholly or partially owned by
another, called the parent company
5. Memorandum of
e. a company’s or a person’s debts
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Association
6. liabilities
f. money raised from any transaction or sales
7. revenue
g. document giving details of a company’s name,
registered office and purpose.
8. Articles of
Association
h. responsibility for debts up to the value of the
company’s share capital
1.B.6. Choose the correct alternative to complete each sentence:
If a person or business has more debts than money to pay them, this means
they have more (1) …. than assets, and they are (2) …. . If a (3) …. Takes the
matter to court, the person or company is declared bankrupt. A bankrupt
company goes into liquidation or is wound up. The court appoints a liquidator
who realizes (i.e. sells) the company’s (4) …. in order to repay creditors. A
failing business can choose voluntarily winding up, in which case it appoints
its own liquidator. In America a (5) …. in difficulty can propose a recovery
plan, it is then temporarily protected from its creditors and given some time to
attempt to solve its problems. A failing business that knows it has no
reasonable chance of avoiding bankruptcy should stop trading. Continuing to
(6) …. , and building up debts with creditors that will never be paid, is called
wrongful trading and is illegal. There are limits to limited liability!
1. a) equity
b) liability
c) liabilities
2. a) illegal
b) illiquid
c) insolvent
3. a) borrower
b) creditor
c) debtor
4. a) assets
b) debts
c) liabilities
5. a) corporation
b) partnership
c) proprietor
6. a) do business
b) earn
c) make business
1.B.7. Render into English:
Корпорация
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Создание корпорации – это наиболее сложный и дорогостоящий
путь организации бизнеса. Корпорации выпускают акции, которые
определяют форму раздела собственности. В закрытых корпорациях
лишь немногие люди владеют акциями и торгуют ими непосредственно,
а в открытых акции продают любому человеку, желающему их купить,
через брокеров. Прежде всего должна быть проведена подписка на акции
и подготовлены необходимые для регистрации документы. Далее
предстоит получить разрешение властей на создание корпорации с
указанием ее прав и ограничений на ее деятельность. Собственность
корпорации юридически четко определена в отношении каждого
собственника. Собственниками корпорации часто являются не те люди,
которые ею руководят (собственниками корпорации являются
акционеры, а менеджеры – не обязательно).
Цены на акции растут или падают в зависимости от того, насколько
хорошо работает фирма и насколько она нравится обществу.
Общественное мнение может повлиять на цены почти в той же мере, как
и ее работа.
Преимущества:
- мера ответственности держателей акций ограничена суммой их личных
взносов;
- преемственность, так как право на собственность может быть передано
другим участникам;
- проще привлечь капитал;
- корпорация не исчезает, если основатель/партнер умирает;
- возможность использования знаний и опыта многих людей.
Недостатки:
- по сравнению с товариществом для обычных корпораций существуют
ограничения на пенсионный фонд и отчисления на зарплату;
- права акционеров ограничены Уставом, интересы меньшинства часто
ущемлены;
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- очень трудно создать или ликвидировать;
- подлежат чрезмерному регулированию;
- руководство обычно ориентируется на главных держателей акций и
соблюдает их интересы;
- меньшая свобода деятельности.
1.B.8. Read the following text. Answer the questions which come after it.
Small Business in the USA: An S-Corporation
Is not Always Best.
It is generally believed that small companies should incorporate as Scorporations. While an S-corporation enjoys many corporate attributes (the
main is that the owners of a corporation do not expose their personal assets to
corporate liability), it is treated like a partnership for the purpose of
determining its Federal income tax liability. At the end of each fiscal year, its
total earnings (or losses) are prorated to each shareholder, and these earnings
(or losses) are incorporated into their individual income tax returns.
Among the advantages of the S-corporation for small business is no
“double taxation” – paying an income tax on corporate net income, and then
paying an individual income tax on the dividend income subsequently
distributed by the corporation.
Thus, an S-corporation “generally will not be liable for federal income
tax”. If losses are incurred during the start-up period (or any other period),
these losses can be deducted each year from the shareholders’ tax returns. All
income, losses, credits and deductions are “washed through” an S-corporation
at the end of fiscal year, and carried directly to the individual tax return for
each shareholder. Being emptied out at the end of each fiscal year, the Scorporation has no retained earnings account.
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For most small businesses, the S-corporation has long been the preferred
corporate structure. The operational accounting is simpler, and accounting,
legal and administrative expenses are minimized. Shareholders receive the
immediate benefits of earnings without “double taxation”, and the shelter of
tax deductive losses on their individual tax returns. There are sound reasons to
state that this is generally the most popular corporate structure.
However, for small businesses that are growing rapidly, the conventional
C-corporation status may turn out to be more preferable. The primary
motivation for such a change would be the ability to retain and reinvest
earnings in the expanding business.
The maximum Federal income tax rate for C-corporation is 34 percent for
taxable income up to $10.0 million, whereas the maximum tax rate on Scorporation income is now the maximum individual rate of 39.6 percent. At
the other end of the range, the Federal tax on of corporate income of $100,000
is $22,250 for a C-corporation, whereas the incremental tax on this income
added to other income of the shareholder in an S-corporation could be as high
as $39,600 if the shareholders are already in the maximum tax bracket. If the
business is striving to retain and reinvest all possible cash during a period of
strong growth, it will obviously forgo distributing cash dividends thereby
avoiding the problem of “double taxation”.
The maximum tax will be effectively reduced by more than 16 percent, and
substantial funds will then be retained to meet the capital needs of the
expanding enterprise. Discounting the effects of depreciation charges, this
shift of corporate structure yields almost a 10 percent increase in net cash
flow.
1.B.9. Answer the following questions:
1. What types of corporations are described?
2. What is the main advantage of the S-corporation status?
3. What does the term “double taxation” mean?
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4. In what case is the C-corporation status preferable to the S-corporation
status?
SECTION C
Past Perfect
Affirmative
Negative
I had (I'd) worked, etc.
I had not (hadn't) worked, etc.
Question
short answers
Had you worked?
Yes, I had. No, I hadn't.
Past perfect continuous
Affirmative
Negative
I had (I'd) been working, etc.
I had not (hadn't) been working, etc.
Question
short answers
Had you been working?
Yes, I had. No, I hadn't.
1.C.1 Read the following sentences and decide what happened first. Write 1 in
the brackets after the thing that happened first and 2 after the thing that
happened second, or if the two things are at the same time write S.
0 Yesterday I got to work late (2) because I’d missed the train (1).
1 Miss French had made me some coffee ( ) but it was cold ( ).
2 At lunchtime 1 had to go to the bank (
) but I’d left my wallet in my jacket
pocket ( ).
3 When I got back to the office, (
) Mr Dearlove had been waiting for me for
about an hour ( ).
4 After we'd been talking for а few minutes, (
) the phone rang and it was my
wife ( ).
5 She asked me ( ) if 1 had managed to get some cash at lunch time ( ).
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6 I said ( ) I had not been able to get any ( ).
7 I said ( ) that I had met Louise outside the bank ( ).
8 I realized (
) that Mr Dearlove had been waiting patiently all the time I was
talking to my wife.
9 I had been telling her the story ( ) while he sat there listening (
).
1.C.2 Put the verbs in brackets in the past perfect continuous or simple in the
gaps.
0 In the morning Kirsty got out of bed and looked out of the bedroom window. She
saw that the sun was shining but that it ........ had been snowing...... (snow).
1 She ........................(sleep) in the attic at the top of the house.
2 The noise of the postman's van .............................. (wake) her up
3 She ............................ (arrive) the evening before in the dark.
4 When she arrived, her mother ........................(wait) for her at the station.
5 She.......................... (forget) how lovely the view was from up there!
6 She could see some footprints in the snow and she hoped the postman bring
....................... something for her.
7 She could smell coffee and toast - someone ..... …………….(get up).
8 When she went into the kitchen, she saw that her mother ………….. (buy) а new
cooker.
9 1t was nice to be home! She .......... .…..(live) abroad for too long!
1.C.3 Use the Past Simple or the Present Perfect of the verbs in brackets.
1. - You (see) Jane today? - Yes, I (see) her at about nine, but I not (see) her since
then. 2. I always want to go to Scotland, but I never (manage) to get there. 3. Bob
(want) to be а bodyguard until he (be) fifteen. 4. - We not (see) much of Helen
lately. - You (see) her? 5. I (be) ill а lot last year. 6. I (be) ill for two weeks. 7. –
How’s your new job? - Everything (be) all right up to now. 8. Nelly (go) to
America on holiday ten years ago, and she (live) there ever since. 9. He (climb)
quite а lot of mountains, but he never (be) up Everest. 10. How long you (be) in
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your present job? 11. Alex (have) an enormous amount of work last week. 12. We
(have) а very busy week. We need а break.
DIRECT and INDIRECT SPEECH
DIRECT SPEECH
Subject
Reporting Verb
Direct Statement
“I like the dress.”
She
“I bought it on sale.”
said,
“I’ve worn it twice.”
INDIRECT SPEECH
Subject Reporting Verb Noun/Pronoun
told
Indirect Statement
Jim
“She liked the dress.”
me
“She had bought it on
sale.”
(that)
She
“She had worn it
said
twice.”
1.C.4 Read this magazine article. Complete it with the correct words in
parentheses.
“Lying during a job interview is risky business,” __said__ 1. (said / told)
Marta Toledo, director of a management consulting firm. “The truth always
__________2. (has / had) way of coming out.” Toledo tells the story of one
woman applying for a job as an office manager. The woman ______________
3. (said / told) the interviewer __________ 4. (that / what) she
_______________ 5. (has / had) a B.A. degree. Actually, she was eight credits
short.
She
also
said
____________________
6.
(I
/
she)
___________________ 7. (made / had made) $30,000 at her last job. The truth
was $5,000 less. When the interviewer called to check the information, the
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applicant’s former boss told her that the applicant _________________. 8.
(has
lied/had
lied)
Another
applicant,
Gloria,
reported
that
___________________ 9. (is quitting / was quitting) her current
she
job to
advance her career. She got the new job. All went well until the company
hired Pete, who had worked at Gloria’s old company. Pete eventually told his
boss that his old company ___________________ 10. (fired / had fired)
Gloria. The new company fired her too, proving, once again, that it doesn't pay
to lie.
Indirect Questions
DIRECT SPEECH: YES/NO QUESTIONS
Subject
Reporting Verb
He
asked,
Direct Statement
“Do you have any experience?” “Can you
use a computer?”
INDIRECT SPEECH: YES/NO QUESTIONS
Subject Reporting Verb Noun/Pronoun
Indirect Statement
she had any
He
asked
(Melissa)
if
experience.
(her)
whether
she could use a
computer.
DIRECT SPEECH: WH- QUESTIONS
Subject Reporting Verb
He
asked,
Direct Statement
“Who told you about the job?” “When do you
want to start?”
INDIRECT SPEECH: WH- QUESTIONS
Subject Reporting Verb Noun/Pronoun Indirect Statement
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He
asked
(Melissa)
who had told her about the job.
(her)
when she wanted to start.
1.C.5 These questions were asked at Ann’s interview. Decide which ones Ann
asked and which ones Pete, the manager, asked. Rewrite each question as
indirect speech.
1. “What type of training is available for the job?” Ann asked what type of training
was available for the job
2. “What kind of experience do you have?” Pete asked what kind of experience she
had.
3. “Are you interviewing with other companies?”
______________________________________________________________
4. “What will my responsibilities be?”
______________________________________________________________
5. “How is job performance rewarded?”
______________________________________________________________
6. “What was your starting salary at your last job?”
______________________________________________________________
7. “Did you get along well with your last employer?”
______________________________________________________________
8. “Do you hire many women?”
______________________________________________________________
1.C.6 Read part of a memo an interviewer wrote. Find and correct eight
mistakes in the use of indirect question. The first mistake is already corrected.
Inter-Office Memo
I did some stress questioning in my interview with Carl Treng this morning. I
asked Mr. Treng why couldn’t he he couldn’t work under pressure. I also asked
him why did his supervisor dislike him. Finally, I inquired when he would quit
the job with our company? Mr. Treng answered my questions calmly, and he
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had some excellent questions of his own. He asked “if we expected changes on
the job.” He also wanted to know how often do we evaluate employees. I was
impressed when he asked why did I decide to join this company. I think we
should hire him.
1.C.7 Claire's friend Jaime wants to know all about her interview. Report his
questions.
1. “What kind of job is it?” He asked what kind of job it was.
2. “When is the interview?” ________________________________________
3. “Where's the company?” ________________________________________
4. “Do you need directions?” _______________________________________
5. “How long does it take to get there?” ______________________________
6. “Are you going to drive?” _______________________________________
7. “Who's going to interview you?” __________________________________
8. “When will they let you know?” __________________________________
1.C.8 The following sentences have errors in them, Underline the word or
phrase that is wrong and then write the sentence correctly.
0 Lady Brainstock was invited sit in the black chair.
Lady Brainstock was invited to sit in the black chair.
1 James Cameron wondered her if she had always loved flowers.
__________________________________________________________
2 The interviewer asked how old was she when she started growing plants.
__________________________________________________________
3 He told her to not look into the camera.
__________________________________________________________
4 The assistant advised Lady Brainstock drinking some water.
__________________________________________________________
5 James wondered if to ask her about her family or not.
__________________________________________________________
6 She persuaded not to him make her wear red lipstick.
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__________________________________________________________
7 He wanted to know how had she become an expert in horticulture.
__________________________________________________________
8 He asked her whether had she been to university.
__________________________________________________________
1.C.9 Read the advice that TV news commentator John Stossel gave viewers
about the common and very dangerous problem of feeling sleepy when driving.
Rewrite his advice in indirect speech.
1. “Pull over and take a brief nap.” He told them to pull over and take a brief nap.
2. “Don't take a long nap.” He said not to take a long nap.
3. “Sing to yourselves.” __________________________________________
4. “Turn your radio to an annoying station.” __________________________
5. “Don't drink coffee.” __________________________________________
6. “Open your window.” _________________________________________
7. “Let cold air in.” _____________________________________________
8. “Be careful when you stop your car.” ______________________________
9. “Don't stop on a deserted roadside.” _______________________________
10. “Don't drink and drive.” ________________________________________
1.C.10 Read this student's journal entry. Find and correct fourteen mistake in
the use of indirect imperatives. The first mistake is already corrected.
In writing class today Juan read one of his stories. It was wonderful. After
class, the teacher invited me (to) read a story in class next week. However, I
asked her no to call on me next week because I’m having trouble getting ideas,
She said me not to worry, and she said to wait for two weeks. Then I talked to
Juan, and I asked him tell me the source for your ideas, He said that they came
from his dreams, and he told me keep a dream journal for ideas. He invited me
“to read some of his journal.” It was very interesting, so I asked him to give me
some tips on remembering dreams. He said getting a good night’s sleep
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because the longer dreams come after a long period of sleep. He also tell me to
keep my journal by the bed and to write as soon as I wake up. He said to no
move from the sleeping position. He also told me don’t think about the day at
first. (If you think about your day, you might forget your dreams,) Must
important – every night he tells himself that to remember his dreams tomorrow
morning.
1.C.11 Rewrite the following as reported speech, using the verb in brackets. Here
is an example.
0 Keith said “Let’s have a cup of coffee” (suggest) Keith suggested we had a cup
of coffee .
1. Felicity said to me “Why don’t you come and visit my friend Jane?” (invite)
_____________________________________________________________
2. Felicity said to me “It’s my birthday today.”(tell)
_____________________________________________________________
3. Keith said to her “Can I come too?” (ask)
_____________________________________________________________
4. I said to him “Do you know her?” (want to know)
_____________________________________________________________
5. He said “I have never met her.” (admit that)
_____________________________________________________________
6. I said to him “I don't think you should come.” (advise)
_____________________________________________________________
7. Felicity said to him “Would you like to come and join us later?” (ask)
_____________________________________________________________
8. I said to him “You must not come with us without a birthday present.” (tell)
_____________________________________________________________
9. Keith said to us “You must let me come with you.” (persuade)
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_____________________________________________________________
10. We said to him “You can come with us.” (agree that)
_____________________________________________________________
1.C.12 Read this student's essay. Find and correct ten mistakes in the use of
indirect statements. The first mistake is already corrected.
Once when I was a teenager, I went to my Aunt Leah’s house. Aunt Leah
collected pottery, and when I got there, she (said) told me that she wants to show
me her new bowl. She told she has just bought it. It was beautiful. When Aunt
Leah went to answer the door, I picked up the bowl. It slipped from my hands
and smashed to pieces on the floor. When Aunt Leah came back, I screamed and
said what the cat had just broken your new bowl. Aunt Leah got this funny look
on her face and told me that it isn’t important. I didn’t sleep at all that night, and
the next morning, I called my aunt and confessed that I have broken her bowl.
She said I had known that all along. I promised that I am going to buy her a new
one someday. We still laugh about the story today.
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