VOCABULARY. To specify – подробно излагать

to specify – подробно излагать

initial investment - первоначальный взнос

the means of sharing profits or losses – способы деления прибылей и убытков

limited partnership -товарищество на вере; товарищество (компания) с ограниченной

ответственностью

general (unlimited) partnership –товарищество (компания) с неограниченной

ответственностью

joint ventures – совместное предприятие

silent partner – партнер без права голоса

entity - экономический объект, хозяйственное подразделение

which often give much cause for disagreement – что часто служит причиной для

разногласий

trading risks – торговые риски

A partnership is a business owned by two or more persons associated as partners. Partnerships are created by an agreement, oral or written, which expresses the rights and obligations of each partner. Partners’ interests can be protected by an “Agreement of Partnership” that specifiesall the details of the partnership. The partnership agreement includes such terms as the initial investment of each partner, the duties of each partner, the means of sharing profits or lossesbetween the partners each year.

There are three types of partnerships: general (unlimited) partnerships, limited partnerships, and joint ventures. When the owners of the partnership have unlimited liability they are called general partners. If partners have limited liability they are “limited partners”. There may 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 most common form is the general partnership, often used by lawyers, doctors, dentists, and accountants. Limited partnerships are a common form of ownership in real estate, oil prospecting, etc.

The advantages of this type of a firm are similar to those of the one-man business. It is a flexible organization in which partners usually specialize in one or more aspects of the business; one may be responsible for buying, one for selling, one for production, and so on. Partnerships, like sole proprietorships are easy to start up. Partnerships are a stronger entity and can attract new employees more easily than proprietorships. It is also easier for partnerships to raise additional capital. Creditors are more willing to lend money to partnerships than to proprietorships because all of the partners are subject to unlimited financial liability.

The great disadvantage, like that of the one-man business, is the fact that the liability of the partners is unlimited and partners together are legally liable for all the debts of the firm. If one of the partners cannot cover his or her share of the debts the other partners must pay all debts.

Partnerships are not as easy to dissolve as sole proprietorships. The survival of a partnership depends upon the relationship between a number of people in situations which often give much cause for disagreement.Thus, when trading risks are very great, the partnership is not very stable type of organization.