Exercise 1. Choose the necessary word and put it in the sentence


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.

Active Vocabulary

business to own sole proprietorship partnership corporation volume receipt service industry to account for repair shop



частная собственность



объем, количество

денежные поступления

сфера обслуживания

объяснять, отчитываться


Alice Jim Alice     Jim

Alice Jim Alice Jim Alice Jim Alice Jim Alice Jim Alice Jim

Comprehension Questions

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 proprietorship? Why do you think so?

Vocabulary Practice

Exercise 1. Choose the necessary word and put it in the sentence .

1 . Small.. .are very often service industries. I 1 receipts

2. The... industries don't produce material I

goods. I 2 business

3. More than 80 per cent of all business I

...are not from sole proprietorships. I 3 service

4. Less than 20 per cent of European I
businesses are partnerships or... I 4 privately

5. Sole proprietorships...only a small part I

of all business receipts. I 5 account

6. Is this bank owned publicly or.. .? I 6 corporation

7. There are three...of business ownership. I 7 forms


Jim Hi, Alice. How are you getting 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 if 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.

I guess I must learn about the responsibilities of going into business.

Alice Jim   Alise Jim   Alise Jim   Alise   Jim

Are you going into this business by yourself?
Exactly. I'd like to have a cafe with my name on it
where I make the decisions and where I control
the profits.
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 consult
a lawyer to form the business. You can start or
you can stop your business whenever you like.
It sounds encouraging. What else can you tell me?
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.
Well, that's not bad.

Wait a moment. I believe I have to tell you about the risk involved.

What do you mean?

Alice   Jim Alise   Jim   Alise   Jim   Alise   Jim   Alise

First of all, the most important risk is that you have unlimited liability. It means that you are responsible for all your business debts.

So if the business fails, I have to declare personal bankruptcy, don't I?

That's what I mean. You can lose your personal assets.

Well, it's rather disappointing. What other things should I know?

You won't get tax benefits which partnerships or corporations can get.

I know about it. By the way do you know of a good accountant to do my taxes?

Of course. You'll also have to hire a good book­keeper if you can't do your books yourself.

I can't say anything definite about that. I have to think it over. What else, Jim?

Well, I am a bit hungry, why don't we have a snack together and discuss the things in the cafe.

You are right as usual. Let's go.

piece of advice can you give me a piece of advice I am thinking of starting my own business responsibility to make decisions to control the profits sole proprietorship to need a lawyer it sounds encouraging to consult partners a board of directors to put policies into effect quickly to hire to fire to decide on vacation, hours, salary, hiring and firing

Active Vocabulary


не могли бы вы дать мне


я думаю о том, чтобы начать свое дело


принимать решения контролировать прибыль

частная собственность

нуждаться в юристе

это вдохновляет (звучит вдохновляюще) консультироваться с


совет директоров

быстро достичь хороших результатов



решать вопросы, связанные с отпуском, продолжительностью рабочего дня, зарплатой, наймом

to have, unlimited liability


иметь неограниченную юридическую ответственность

to be responsible for all business debts to fail to declare personal bankruptcy personal assets tax benefits to get tax benefits   accountant book-keeper to do books

нести ответственность за производственные долги терпеть неудачу

объявить личное банкротство личная собственность

льготы по налогообложению получить льготы по налогообложению

бухгалтер, счетовод бухгалтер, счетовод

вести бухгалтерский учет

Vocabulary Exercises

Exercise 1. Transform the sentences according to the model

M о d e l: -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.

1. A partner will finance the business.

2. A salesperson will sell the clothes.

3. A decorator will design the interier.

4. A lawyer will do this work.

5. A secretary will mail the letters.

6. A colleague will give me a piece of advice.

7. A book keeper will prepare the tax report.

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?

d) Are the partners responsible for the business debts or fulfillment of the arrangement? 1) I want to go into business with my friend. 2) You can lose personal assets. 3) It is difficult to get tax benefits from the state. 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.

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.

1. Мне нужен совет.

2.Я сам контролирую прибыль своего предприятия.

3.Если вы хотите заняться частным предпринимательством, обратитесь к юристу.

4Директор решает вопросы, связанные с наймом и увольнением.

5.Я боюсь иметь полную юридическую ответственность.

6. Л 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.

1. I want to start my own business.

2. You need a lawyer in this case.

3. Sole proprietorship brings much profit.

4. Sole proprietorship gets tax benefits from the government

Exercise 2. Put up four questions of different types (general, special, disjunctive, alternative) to each sentence.

Model: The partners are responsible for business debts.

a) Are the partners responsible for business debts?

b) Why are the partners responsible for business debts?

c) The partners are responsible for the business debts, aren't they?




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 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 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 other.

Active Vocabulary

партнерство вести дело прибыль


to carry on a business


general partner

общий партнер (несущий полную юридическую ответственность за дело)

limited partner

партнер с ограниченной юридической ответственностью

silent partner secret partner

партнер без права голоса

секретный партнер (с правом голоса, но неизвестный общественности как партнер)

law insurance stockbrokerage real estate oil prospecting quarrying industries advantage disadvantage to be legally responsible

зд. юриспруденция


биржевое маклерство


добыча нефти





быть юридически


Comprehension Questions

1. What is the difference between a general partnership and a limited partnership?

2. Is there any difference between a silent partner and a secret partner? What is this difference?

3. In what professional fields are the partnerships found?

4. In what businesses is the partnership a common form?

5. What are the advantages of a partnership?

6. Discuss the disadvantages of a partnership. Would you prefer partnership or sole proprietorship for business? Give your reasons.

Vocabulary Practice

Exercise 1. Select the necessary word in the sentence.
1. Partnership very often receive... I

I 1 secret partner, I 2 unlimited I liability I I I 3real estate I I 4 general partner I I 5 advantage I 6 profit I 7 capital I I 8 management I I 9 tax benefits

from the government.

2. Limited partnership isa common form of ownership in...

3. Partnerships have many..., one is that they receive tax benefits from the


4...are the partners with unlimited

5....has the authority in management but he is not known to public.

6. A secret partner takes part in...

7. General partners have...

8. One advantage of a partnership is that it offers a multiple source of...

9. A partnership can bring much... to the partners.


(Two friends Susan and Maurice; are having supper in a restaurant)

Maurice Haven't seen you for a long time. What have you

been busy with?
Susan I've been pretty busy. Do you know my friend

Nora? I 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.

Maurice It sounds well. How many partners are there in your


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 I suppose

all business can be risky. As partners we are both


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.

Maurice It seems really so. That is one advantage of general partnership. You can invest less capital than your partner - even no money at all. But you as a partner can contribute important services or skills, sometimes just a name or a reputation.

Susan Indeed.

Maurice How did you arrange to distribute profits and losses?

Susan We share them equally. We hope to be in business for a long time.

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 lime to go now. See you later. Bye.

заниматься чем-либо заниматься бизнесом ладить друг с другом привлекать покупателей сделать правильный выбор зд. рабочий опыт бухгалтерский учет рисковать нести юридическую ответственность сумма (количество) денег вложить сумму денег в бизнес комбинировать ресурсы преимущество делать вклад, содействовать умениям и навыкам распределять доходы и убытки

Active Vocabulary

to be busy with

to go into business

to get along well

to attract customers

to make a right choice



to run a risk

to be liable

amount of money

to put an amount of money

into business

to combine resources


to contribute services, skills

to distribute profits and losses

to share the subject becomes quite textechnical deal

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.

1. Partners are people. They have unlimited liability.

2. This is my partner. He often runs a risk.

3. He is a shop-assistant. He gets along welt with all the

4. Susan is a partner. She puts a big amount of money into business.

5. Jean is my friend. She has the background of accounting.

6. Barbara is my partner. She knows how to attract


7. Tom is a partner. He is good at selling.

8. Jack is my friend. He is a secret partner of my business.

9. Helen is my friend. She had supper with Jack in the restaurant.

Exercise 2. Answer the questions.

1. What do you want to be busy with?

2. Do you want to go into business alone or with a partner?

3. With what partner do you get along well?

4. Imagine you run a shop. What wilt you do to attract


5. Do you need to consult a lawyer, to make a right choice when starting the business.

6. What is your background?

7. Are you a careful person, or do you like to run a risk?

8. How can you combine the resources with your partner?

9. What services and skills can you contribute in your business?

10. How will you distribute profits and losses in your partnership?

11. What kind of partner would you like to be: a general
partner or a limited partner? Why so?

Exercise 3. Translate into English.

1. Члены правления имеют полную юридическую ответственность.

2. Партнер с ограниченной юридической ответственностью не имеет реальной власти.

3. Секретный партнер принимает участие в управлении, но он не известен общественности.

4. Я хочу вложить деньги в недвижимость.

5. Партнерство имеет много преимуществ.

6. Партнерство часто получает налоговые льготы от правительства.

7. Мы хорошо ладим с партнером.

8. Наше кафе привлекает все больше и больше клиентов.

9. Я сделал правильный выбор. Это дело приносит много прибыли.

10. Мой рабочий опыт связан с менеджментом.

11 .Она хорошо разбирается в бухгалтерском деле.

12.Мы вкладываем в дело одинаковый капитал.

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 youractive vocabulary.

Grammar ExercisesExercise 1. Make the sentences negative.

Model: I am going into business.

I am not going into business.

1. Your business is receiving the tax benefits.

2. Your partnership is running the great risk.

3. We are getting along quite well with my partner.

4. They are going to be general partners.

5. The partners are sharing profits and losses with each other.

6. Their partnership is losing their profit every month.

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