Setting up a new business

1. To set up a new business you have to solve a number of problems. For example, where do you get your supplies from? What is the price you pay for them? What premises do you work from? What type of control do you want to keep in your business? All this depends on the type of your work, because you may work as a sole trader, a partnership or a limited company.

2. To work as a sole trader means that you are personally responsible for the business and take all profits after paying income taxes. But you must remember one thing: you are also responsible for all business debts.

3. Partnership means a group of people (between two and twenty) working as one firm. They share responsibility for decision making, profits, and debts. Partnership is useful and effective when all partners have high professional skills.

4. A limited company (Ltd) is a company formed by two or more shareholders who put the money into the business and get a share of the profits. Here the financial responsibility (or liability) of the shareholders is limited. When the business goes bankrupt every shareholder loses his share.

So we can see that different types of business organizations have advantages (pluses) and disadvantages (minuses).

2. Найдите в первой колонке русские эквиваленты английских слов и словосочетаний:

1) to set up a business   2) supplies 3) premises 4) to keep control 5) a sole trader 6) a partnership 7) a limited company 8) income tax 9) business debts 10) a share of profits 11) a shareholder   12) to share responsibility 13) decision making

a) единоличный владелец, частный предприниматель b) подоходный налог c) товарищество d) сырьё и материалы e) учредить/создать предприятие f) осуществлять контроль g) доля прибыли h) акционер i) делить ответственность j) помещения, здания k) компания с ограниченной ответственностью l) долги (задолженность) предприятия. m) принятие решений

3. Переведите на русский язык интернациональные слова, встречающиеся в тексте "Setting up a new business"

problem, control, type, partner, company, personally, group, effective, professional, limit(ed), financial, organization, to form.

4. Найдите соответствующие ответы на вопросы и напишите их в той последовательности, в которой заданы вопросы.

Вопросы:

1) What problems have you to solve to set up a business?

2) What does the work of a sole trader mean?

3) What does partnership mean?

4) What is a limited company?

5) What can you tell about the financial responsibility of shareholders? What does the phrase “limited liability” mean?

Ответы:

a) It is a company formed by two or more shareholders who put the money into the business to get a share of the profits and it is operated by managers.

b) The problems of supplies, prices, premises and type of control.

c) The financial responsibility of the shareholders is limited and every shareholder loses his share when the business goes bankrupt.

d) In this form of business partners share responsibility for profits, debts, decision making.

e) You are personally responsible for the business and take all profits after paying income taxes. It is the simplest form of business organization.

5. Закончите предложения, выбрав соответствующий вариант окончания.

1) the disadvantage of a sole trader… 2) partnership is useful and effective when… 3) the advantage of a limited company is…

a) …all partners have high professional skills. b) …is that the owner is personally responsible for the business debts. c) …the partners may disagree with each other. d) …the financial responsibility of shareholders is limited.

Контрольная работа № 1

Вариант 5

Прочитайте текст и переведите на русский язык в письменной форме.

Borrowing money

1. When people set up a new business they need help in financing it. In this case they must know how much money they need to borrow and how many workers they need to employ. To do it they usually draw a cash flow chart.

2. What is cash flow? Money can do two things: it comes in and goes out. This is called cash flow. When it comes in faster than it goes out the business is effective and vice versa.

3. Borrowing money from the bank. The bank managers will lend you money only when they think your business is a good investment. Bank lending money may ask you to provide a security. Security is property that guarantees your ability to pay off your debts if your business goes bust. Sometimes it is enough to provide a guarantor (your friend or relative who can repay your loan for you).

4. There are different forms of borrowing money. The main two are overdraft and loan. Overdraft. You can take out more money than you have in your account. The bank sets up the limit. You pay interest on all the sum you borrow on a daily basis. The bank can ask you to repay your overdraft at any moment.

5. Loan. This is safer than an overdraft because the period of you repay is fixed. But you pay interest on the whole loan though you may need less.