Unit ii small-scale business

Glossary

sole proprietorship частное предприятие

to be liable(for) нести юридическую ответственность

debt долг

to cover debts покрыть долги

to sue возбуждать уголовное дело;

подвергнуть судебному разбирательству

to accrue нарастать , накапливаться

efficient производительный, эффективный

to undertake предпринимать что-либо,

брать на себя определенные функции

to borrow занимать, одалживать

equity доля собственности

assets активы

partnership товарищество

estate имущество, состояние

indemnity гарантия от убытков;

возмещение; компенсация

severally отдельно, индивидуально

allot выделять, предназначать, отводить

security обеспечение, гарантия, залог.

incur (liability, losses) нести (юр. ответственность, убытки)

commit поручать, закладывать, передавать

memorandum of association = договор об учреждении акционерного

articles of association общества, устав

GDP= Gross Domestic Product ВВП=Внутренний Валовый Продукт

concert согласие

Ex. 1 Translate the following groups of words paying attention to the word-building elements:

efficient - efficiency - efficiently; severe - severely -severity; to supplement - a supplement - supplementary; to adapt – adaptation – adaptive - adaptor; to tend - tendency; to process – process – processor; to insure - insurance; to produce - production -productive - productivity; legal - legally- illegally; to own - own - owner - ownership; enterprise - enterpriser; to borrow – borrowing - borrower, to promote - promotion-promotional - promoter, liable – liability; to undertake – undertaking – undertaker.

Ex. 2 Consult a dictionary and write down all the meanings of the words "share" and "due". What meaning is suitable for the texts of this unit?

Ex. 3 Translate the following sentence paying attention to the word "cushion". Explain the interconnection between the primary and contextual meanings.

A firm that loses can still repay its debts as long as the loss is no larger than the owner's own investment in the business, for the owner's share of the total wealth, the owner's equity, provides a cushion to protect the creditors.

Ex. 4 Match the words from list A with their synonyms from list B:

A. type, proprietorship, to center, profit, to be liable, distinction, owner, sole, incentive, efficient, to encourage, to involve, undertaking, possession.

B. Private, enterprise, to include, property, to stimulate, successful, possessor, stimulus, difference, to be responsible, income, to concentrate, ownership, kind.

Ex. 5 Build sentences with the words below using the expression

It takes … to do … :

1. nerve to translate a book

2. time and effort to make a quarrel

3. months to survive in a competitive environment

4. talent to buy an apartment

5. a lot of money to write poetry

6. two to learn a language

7. great skill to make jewelry

8. years of work to build a corporation

9. luck to succeed in a business

10. determination to contradict your boss

11. investment to increase output

12. specialized management to keep the right business strategy

13. persuasion to get a majority at a stockholders' meeting

14. well-kept records to operate a business

15. positive balance to achieve production economy

16. good advertising strategy to keep track of the markets

17. capital to bring out a new product

18. resources to raise capital

Assignments to text 1:

1. Read the text and find an answer to the question in the headline.

2. What criteria should a company meet to be classified as a small-scale business?

3. Look through the text and divide it into logical parts.

4. Give reasons for your division writing down the topic of each paragraph.

5. Make up a plan of the text. Supplement every item with key words or word-combinations which would help to retell the text.

6. Translate the text.

7. Explain how small businesses keep “the American dream” alive.

Text 1 What is a Small Business?

The Committee on Economic Development defines a small business as a form that meets two or more of the following criteria: 1) the owners manage the business, 2) one person or a small group of people provide the financing, 3) the owners and employees live near the firm, and 4) the form is small in comparison to others in the same industry (size may be measured in assets, number of employees or sales revenues).

A small business as defined by the Small Business Administration is a business that is independently owned and operated and is not dominant in the field.

Small businesses exist in every type of industry, but are most important in the retail trade (bakery, greeting cards, compact disks, jewellery shops and stores), services (barbershops, restaurants, dry cleaners, dentists, and funeral homes), construction (builders of homes, apartment complexes, swimming pools and roads), wholesale trade (grocery product and beauty supply wholesales).

According to American statistics small firms employ 60 percent of the nation’s private sector labour force and generate almost one half of the GDP (Gross Domestic Product). They furnish two of three workers with their first job and provide many jobs for teenagers, women, minorities and immigrants. Jobs the companies generate are more likely to be filled with younger, older, and female workers. Small firms also introduce many new products. They are important suppliers to large firms.

It is not вy chance that American government encourages activities of business incubators. Business incubator is a facility operated by a government unit, a university, or a private investment group to provide low rent, shared office services, and management advice to business ventures.

So, small businesses keep “the American dream” alive.

Assignments to text 2:

1. Read the text; write down the first sentence of every paragraph. Indicate if they are interconnected and how.

2. Look through the text and indicate if these sentences can make up a plan of this text.

3. Find the definition of a sole proprietorship.

4. Refer to the text; find the following fragment of the sentence from the second paragraph “Moreover, identification of the owner with the business...”. Explain it paraphrasing in English. Find the sentence in the first paragraph expressing the same idea.

5. Translate the text.

Text 2 The Sole Proprietorship

The simplest type of a firm is the sole proprietorship. This is a firm owned by a single person. All the firm's decisions are centred in him, all profit from the firm is his, and he is personally liable for all the firm’s debts. In a sole proprietorship there is no legal distinction between the personality and possessions of the owner and those of the firm. In fact the owner is the firm and is personally responsible for everything the firm does.

There are several advantages to the sole proprietorship. It is legally simple and easy to establish. Moreover the identification of the owner with the business provides a powerful incentive for efficient operation, and encourages careful weighing of the risks involved in the undertaking.

38 percent of small business owners in the USA in a survey gave the following as the main reason for going into business for themselves: to be their own boss and have more control over their work and their lives. Entrepreneurs seldom complain that running their own firm is routine and boring. It’s possible to make a lot of money. Any profit the firm makes accrues directly to the owner. So, the owners can get personal satisfaction from guiding the firm’s growth as well as from making money.

As for disadvantages, being in business for yourself requires your full attention. The owners must “wear many hats” as they can seldom afford to hire enough employees so that each can specialize and be responsible for a special aspect. You might work for months and not take a penny out. You may also have to reinvest your profits in the firm for long-term growth.

In case of failure, not only can an enterpriser lose all he has invested in the firm directly but if this is not enough to cover the firm's debts, he can be sued personally for the balance.

Overall, the two main causes of small business failures are poor management and inadequate financing.

Assignments to text 3:

1. Read and translate the headline of the text.

2. Look through the text and try to find the key sentences in which the main limitations to the size of proprietorship are formulated. How many limitations are discussed in the text?

3. Give annotation of the text before translating it into Russian.

4. Translate the text, now check:

· if you counted the limitations correctly,

· if you missed any important idea before translation.

5. After reading the text 2 and text 3 make up a plan for your report about sole proprietorship as a form of a small-scale business.