Lesson 1. Types of proprietorship.
A business may be privately owned in three different forms. These forms are the sole proprietorship, the partnership and the corporation. The sole proprietorship is the most common in many western countries. For example, more than 80 per cent of all businesses in the United States are sole proprietorships.
But it is evident that sole proprietorships do not do the greatest volume of business. They account for only 16 percent of all business receipts, for example, in America. What kind of business is likely to be a sole proprietorship? First of all, service industries such as Laundromats, beauty shops, different repair shops, restaurants.
1. What are three different ways that a business can be privately owned?
2. What forms do most European countries have?
3. What forms do the businesses in the USSR have?
4. Name some businesses that are likely to be sole proprietorships. Why do you think so?
5. Name some businesses that are not likely to be sole proprietorships. Why do you think so?
Exercise 1. Choose the necessary word and put it in the sentence.
1. small… are very often service industries. 1 receipts
2. the … industries don’t produce material goods. 2 business
3. more than 80 per cent of all business … are not from sole proprietorships. 3 service
4. less than 20 per cent of European businesses are partnerships or …4 privately
5. sole proprietorships … only a small part of all business receipts. 5 account
6. is this bank owned publicly or …? 6 corporation
7. there are three … of business ownership. 7 forms
can you give me a piece of advice
I am thinking of starting my own business
it sounds encouraging
to consult partners
a board of directors
to put policies into effect
to decide on vacation, hours, salary, hiring and firing
to have unlimited liability
to be responsible for all business debts
to declare personal bancruptcy
to get tax benefits
Exercise 3. Answer the questions.
1. Are you thinking of starting your own business?
2. What business do you want to start?
3. How do we call the business if you go into it alone?
4. Who is going to make the decisions and control the profits in your business?
5. Do you need a lawyer if you want to start a sole proprietorship?
6. Why don’t you have to consult the partners in a sole proprietorship?
7. How many employees are you going to hire for your business? in what cases will you fire them?
8. What does it mean to have unlimited liability? Are you ready for it?
9. What will you do, if your business fails?
10. What will you do to put policies into effect quickly?
11. What businesses have tax benefits in this country?
12. Can you do your books yourself?
13. Are you going to hire a book-keeper?
Exercise 4. Translate into English.
2. я сам контролирую прибыль своего предприятия.
3. если вы хотите заняться частным предпринимательством, обратитесь к юристу.
4. директор решает вопросы, связанные с наймом и увольнением.
5. я боюсь иметь полную юридическую ответственность.
6. я не отвечаю за производственные долги.
7. малые предприятия имеют льготы по налогообложению.
8. хороший бухгалтер сможет вести дела лучше, чем вы.
9. мне нужно нанять бухгалтера.
10. мне нужно проконсультироваться с юристом.
Types of proprietorship Text
A business may be privately owned in three different forms. These forms are the solo proprietorship, the partnership, the corporation. The sole proprietorship is the most common in many western countries. For example, more than 80 per cent of all businesses in the United States are sole proprietorships.
But it is evident that sole proprietorships do not do the greatest volume of business. They account for only 16 percent of all business receipts, for example, in America. What kind of business is likely to be a sole pr1. First of all, service industries such as Laundromats, beauty shops, different repair shops, restaurants.
Active Vocabulary
sole proprietorship частная собственность
volume объем, количество
receipt денежные поступления
service industry сфера обслуживания
to account for объяснять, отчитываться
repair shop мастерская
1. What arc three different ways that a business can be privately owned?
2. What forms do most European countries have?
3. What from do the business in the USSR have?
4. Name some businesses that are likely to be sol proprietorship. Why do you think so.
5. Name some businesses that arc not likely to not likely to be sole proprietorship? Why do you think so?
1. Small…are very often service industries. |1 receipts
2. The…industries don l produce material |
3. More than 80 per cent of ail business |
…are not from sole proprietorships. |3 service
4. Less than 20 per cent of European |
businesses are partnerships or. |4 privately
5. Sole proprietorships. only a small part |
of all business receipts. |5 account
6. Is this bank owned publicly or…? |6 corporation
7. There are three. of business ownership. |7 forms
Jim Hi, Alice. How are you gelling on?
Alice Fine, as usual, thanks, Jim. What about you?
Jim I’m O.K. It’s nice to see you.
Alice You too. I’m glad you are not in a hurry and we have time to talk today.
Alice Can you give me a piece of advice?
Jim Well, I’ll try I can.
Alice You know I’ve been always good at cooking. It interests me. I am thinking of starting my own business – cafe.
Jim It might be a good idea.
Alice I guess I must learn about the responsibilities of going into business.
Jim Are you going into this business by yourself?
Alice Exactly. I’d like to have a cafe with my name on it where I make the decisions and where I control the profits.
Jim You seem to be resolute so I’ll try to help you. If you go into business alone, it is called sole proprietorship. In such case you needn’t consul» a lawyer to form the business. You can start or you can slop your business whenever you like.
Alice It sounds encouraging. What else can you tell me?
Jim There is no need to consult partners or a board of directors. So you can put your policies into effect quickly. You decide on your vocation, hours, salary, hiring and firing.
Alice Well, that’s not bad.
Jim Wail a moment. 1 believe 1 have to tell you about the risk involved.
Alice What do you mean?
Jim First of all, the most important risk is that you have unlimited liability. It means that you are responsible for all your business debts.
Alice So if the business fails, I have to declare personal bankruptcy, don’t I?
Jim That’s what I mean. You can lose your personal assets?
Alice Well, it’s rather disappointing. What other things should I know?
Jim You won’t get lax benefits which partnerships or corporations can get.
Alice I know about it. By the way do you know of a good accountant to do my taxes?
Jim Of course. You’ll also have to hire a good bookkeeper if you can’t do your books yourself.
Alice I can’t say anything definite about that. I have to think it over. What else, Jim?
Jim Well, 1 am a bit hungry, why don’t we have a snack together and discuss the things in the cafe.
Alice You are right as usual. Let’s go.
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TYPES OF PROPRIETORSHIP
Text
A business may be privately owned in three different forms. These forms are the solo proprietorship, the partnership, the corporation. The sole proprietorship is the most common in many western countries. For example, more than 80 per cent of all businesses in the United States are sole proprietorships.
But it is evident that sole proprietorships do not do the greatest volume of business. They account for only 16 percent of all business receipts, for example, in America. What kind of business is likely to be a sole pr1. First of all, service industries such as Laundromats, beauty shops, different repair shops, restaurants.
Active Vocabulary
sole proprietorship частная собственность
volume объем, количество
receipt денежные поступления
service industry сфера обслуживания
to account for объяснять, отчитываться
repair shop мастерская
Comprehension Question
Vocabulary Practice
…are not from sole proprietorships. |3 service
businesses are partnerships or… |4 privately
of all business receipts. |5 account
Dialogue
Jim Hi, Alice. How are you gelling on?
Alice Fine, as usual, thanks, Jim. What about you?
Jim I’m O.K. It’s nice to see you.
Alice You too. I’m glad you are not in a hurry and we have time to talk today.
Jim Sure.
Alice Can you give me a piece of advice?
Jim Well, I’ll try I can.
Alice You know I’ve been always good at cooking. It interests me. I am thinking of starting my own business – cafe.
Jim It might be a good idea.
Alice I guess I must learn about the responsibilities of going into business.
Jim Are you going into this business by yourself?
Alice Exactly. I’d like to have a cafe with my name on it where I make the decisions and where I control the profits.
Jim You seem to be resolute so I’ll try to help you. If you go into business alone, it is called sole proprietorship. In such case you needn’t consul» a lawyer to form the business. You can start or you can slop your business whenever you like.
Alice It sounds encouraging. What else can you tell me?
Jim There is no need to consult partners or a board of directors. So you can put your policies into effect quickly. You decide on your vocation, hours, salary, hiring and firing.
Alice Well, that’s not bad.
Jim Wail a moment. 1 believe 1 have to tell you about the risk involved.
Alice What do you mean?
Jim First of all, the most important risk is that you have unlimited liability. It means that you are responsible for all your business debts.
Alice So if the business fails, I have to declare personal bankruptcy, don’t I?
Jim That’s what I mean. You can lose your personal assets?
Alice Well, it’s rather disappointing. What other things should I know?
Jim You won’t get lax benefits which partnerships or corporations can get.
Alice I know about it. By the way do you know of a good accountant to do my taxes?
Jim Of course. You’ll also have to hire a good bookkeeper if you can’t do your books yourself.
Alice I can’t say anything definite about that. I have to think it over. What else, Jim?
Jim Well, 1 am a bit hungry, why don’t we have a snack together and discuss the things in the cafe.
Alice You are right as usual. Let’s go.
Active Vocabulary
piece of advice сонет
can you give me u piece не могли бы вы дать мне
I am thinking of ‘starling я думаю о том, чтобы
my own business начать свое дело
to make decisions принимать решения
to control the profits контролировать прибыль
sole proprietorship частная собственность
to need a lawyer нуждаться в юристе
it sounds encouraging это вдохновляет (звучит
to consult partners консультироваться с
a board of directors совет директоров
to put policies into effect быстро достичь хороших
to decide oh vacation, hours, решать вопросы, связанные
salary, hiring and firing с отпуском, продолжительностью рабочего дня,
зарплатой, наймом, увольнением
to have unlimited liability иметь неограниченную
to be responsible for ail нести ответственность за
business debts производственные долги
to fail терпеть неудачу
to declare personal bankruptcy объявить личное банкротство
personal assets личная собственность
tax benefits льготы по налогообложению
to get tax benefits получить льготы по налогообложению
accountant бухгалтер, счетовод
book-keeper бухгалтер, счетовод
to do books вести бухгалтерский учет
Vocabulary Exercises
Exercise 1. Transform the sentences according to the mood.
Model: I am thinking of starting my own business open a cafe.
I am thinking of opening a cafe.
1) start a car-repair shop
2) hire a book keeper
3) fire an employee
4) consult a board of directors
5) sell my business
6) do my books myself
7) consult a lawyer
8) find a specialists
Exercise 2. Transform the sentences according to the model.
Model: A book keeper will do the books.
I am going to have a book keeper do the books.
Exercise 3. Answer the questions.
10.What will you do to put policies into effect quickly?
11.What businesses have tax benefits in this country?
12.Can you do your books yourself?
13.Аre you going to hire a book-keeper?
Exercise 4. Translate into English.
2.Я сам контролирую прибыль своего предприятия.
3.Если вы хотите заняться частным предпринимательством, обратитесь к юристу.
4.Директор решает вопросы, связанные с наймом и увольнением.
5.Я боюсь иметь полную юридическую ответственность.
6.Я не отвечаю за производственные долги.
7.Малые предприятия имеют льготы по налогообложению.
8.Хороший бухгалтер сможет вести дела лучше, чем вы.
9.Мне нужно нанять бухгалтера.
10.Мне нужно проконсультироваться с юристом.
Exercise 5. Make up the dialogue.
You are going to start your own business. Ask a lawyer or an experienced person how to do it.
Grammar Exercises
Exercise 1. Make the sentences negative.
Exercise 2. Put up four questions of different types (general, special, disjunctive, alternative) to each sentence.
Model: The partners are responsible for business debts.
1) I want to go into business with my friend.
2) You can lose personal assets.
3) He is difficult to gel tax benefits from the stale.
4) I do my books myself.
5) We both have unlimited liability.
6) The board of directors decided on vacation, salary, hiring and firing.
7) The partners want to consult a board of directors.
PARTNERSHIPS
Техt
A partnership is an association of two or more persons to carry on a business For profit. When the owners of the partnership have unlimited liability they are called general partners. If partners have limited liability they are “limited partners”. There hut be a silent partner as well – a person who is known to the public as a member of the firm but without authority in management. The reverse of the silent partner is the secret partner – a person who takes part in management but who is not known to the public.
Any business may have the form of the partnership, for example, in such professional fields as medicine, law, accounting, insurance and stockbrokerage. Limited partnerships are a common form of ownership in real estate, oil prospecting, quarrying industries, etc.
Partnerships have more advantages than sole proprietorships if one needs a big capital or diversified management. Like sole proprietorship they are easy to form and often get tax benefits from the government.
Partnerships have certain disadvantages too. One is unlimited liability. It means that each partner is responsible for all debts and is legally responsible for the whole business. Another disadvantage is that partners may disagree with each
Active Vocabulary
to carry on a business вести дело
general partner общий партнер (несущий полную юридическую ответственность за дело)
limited partner партнер с ограниченной юридической ответственностью
silent partner партнер без права голоса
secret partner секретный партнер (с правом голоса, но неизвестный
общественности как партнер)
law зд. юриспруденция
stockbrokerage биржевое маклерство
real estate недвижимость
oil prospecting добыча нефти
quarrying industries добывающие промышленности
to be legally responsible быть юридически ответственным
Comprehension Questions
Vocabulary Practice
Exercise 1. Select the necessary word in the sentence.
1.Partnership very often receive…
from the government. | 1 secret partner
form of ownership in… | liability
they receive tax benefits from the |
government. |3 real estate
4….are the partners with unlimited |
liability. |4 general partner
5….has the authority in management but |
he is not known to public. |5 advantage
it offers a multiple source of… |8 management
to the partners. |9 lax benefits
Dialogue
(Two friends Susan and Maurice; are having supper in a restaurant)
Maurice Haven’t seen you for a long time. What have you
Susan I’ve been pretty busy. Do you know my friend
Nora? 1 went into business with her.
Maurice Really? How is it going on?
Susan Fine, thanks. We get along very well, and the shop
is attracting more and more customers.
Susan There are two of us and I am very pleased about it.
I’ve made a right choice. Nora’ s background is in
accounting. She is very good at keeping the books.
Maurice And you?
Susan You know I always liked talking. I guess I am rather
good with customers. I enjoy selling things.
Maurice Well, it sounds interesting. I believe you don’t run a
risk in your business.
Susan We haven’t had many problems, although 1 suppose
all business can be risky
Maurice Did you both put the same amount of money into your business? Do you mind my asking?
Susan No, we didn’t invest the same amount of capital. But I think we’ve combined our resources very well. I think it’s good for both of us.
Susan Indeed.
Maurice How did you arrange to distribute profits and losses?
Susan We share them equally. We hope to be in business for long lime.
Maurice Nice for you. Now you seem to know a lot about business.
Susan Not everything yet but the subject becomes quite technical.
Maurice I am glad to hear it. It’s time to go now. Sec you later. Bye.
Active Vocabulary
to be busy with заниматься чем-либо
to go into business заниматься бизнесом
to get along well ладить друг с другом
to attract customers привлекать покупателей
to make a right choice сделать правильный выбор
background зд. рабочий опыт
accounting бухгалтерский учет
to run a risk рисковать
to be liable нести юридическую ответственность
amount of money сумма (количество) денег
to put an amount of money вложить сумму денег в
into business бизнес
to combine resources комбинировать ресурсы
to contribute services, skills делать вклад, содействовать умениям и навыкам
to distribute profits and losses распределять доходы и убытки
the subject becomes quite это становится уже делом
Vocabulary Practice
Exercise 1. Transform the sentences according to the model.
Model: Susan is a woman. She does the books.
Susan is a woman who does the books.
Exercise 2. Answer the questions.
10.How will you distribute profits and losses in your partnership?
Exercise 3. Translate into English.
10.Мой рабочий опыт связан с менеджментом.
Exercise 4. Discuss the following problem: A Joint Venture*. Pro and Con.
______________
*A Joint Venture – совместное предприятие
Exercise 5. Make up the dialogue.
Consult the lawyer how to form a partnership. Use your active vocabulary.
Grammar Exercises
Exercise 1. Make the sentences negative.
Model: I am going into business.
I am not going into business.
Exercise 2. Put up four questions of different types (general, special, disjunctive, alternative) to each sentence.
Model: The partners are getting along quite well.
CORPORATIONS
Text
A business corporation is an institution established for the purpose of making profit. It is operated by individuals Their snares of ownership are represented by stock certificates. A person who owns a stock certificate is called a stock-holder.
There are several advantages of the corporate form of ownership. The first is the ability to attract financial resources. The next advantage is the corporation attracts a large amount of capital it can invest it in plants, equipment and research. And the third advantage is that a corporation can often higher salaries and thus attract talented managers and specialists.
The privately owned business corporation is one type of corpora lion. There are some other types too. Educational, religious, charitable institutions can also incorporate. Usually such corporation does not issue stock and is nonprofit. If there is a profit it is reinvested in the institution rather than distributed to private stockholders.
In some western countries, cities, stales, federal government and special agencies can establish governmental corporations. A few examples of the governmental corporations are state universities, state hospitals and city owned utilities. Governmental corporations are non-profit as a rule and usually they do not issue stock certificates.
Active Vocabulary
to establish учреждать
stock certificate акция
stockholder (shareholder) акционер, держатель акций
to attract financial resources привлекать финансовые ресурсы
to offer high salaries предлагать высокие зарплаты
to attract a large amount привлекать большой капитал
of capital капитал
educational, religious, образовательные, религиозные,
charitable institutions благотворительные учреждения
to issue stock выпускать акции
to reinvest вкладывать еще раз
Comprehension Questions