VOCABULARY. Entered into agreement – вступить в договор

entered into agreement – вступить в договор

specifies – устанавливает

to provide for – предусматривать

silent partner – пассивный партнер

to pool - объединять

is exempt from the reporting -освобождено от отчетов

on their share of earning – в зависимости от доли заработка

is legally binding upon all the others -обязательно для всех партнеров

Ex. 1. Read the text. Find ten words that you don’t know, check them in the dictionary

And give their translation.

When a proprietor wants to expand the business, one way to do so is to form a partnership, a business formed for profit by two or more co-owners. The right and duties of a partnership are regulated by laws of the state where it is formed and by a legal agreement entered into the co-owners. Usually an agreement specifies the amount of money each is investing and the duties each partner assumes. A partnership agreement also may provide for a “silent partner” who does not take part in the management, but who invests money in the business.

The partnership has the advantage of pooling managerial talent. One partner may be qualified in production, another in marketing. The partnership, like individual ownership, is exempt from most of the reporting that the government requires of corporations. Furthermore, it has a favourable tax position when compared with the corporation. Federal taxes are paid by individual partners on their share of earning; beyond that the business is not taxed.

A major disadvantage of the partnership is that each member is liable for all the debts of the partnership; the act of any partner is legally binding upon all the others. If one partner takes a large amount of money from the business and squanders it, the others must pay the debt. Partnerships suffer another major disadvantage: decision-making is shred. If partners have serious disagreements, the business is bound to suffer.

Nevertheless, the partnership remains a vital part of the overall business economy.

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Ex. 2. Write T (true) and F (false) next to the statements below.

1. The rights and duties of a partnership are regulated by a legal agreement between

the co-owners. ____________

2. A “silent partner” takes part in the management, but does not invest money in the business. __

3. The partnership is liable for most of the reporting that the government requires of

corporations. ___________

4. Individual partners are taxed on their share of earnings. _________

5. Decision-making is shared. _____________

6. A partner is not legally binding upon all the others. ______________

7. The partnership remains a vital part of the overall business economy. ________________