Pre-reading Activities. 1. Study the following rules of word-building
1. Study the following rules of word-building. Use the dictionary and tell what parts of speech (части речи) these words are.
| an owner à | ownership |
| a partner à | partnership |
| a proprietor à | proprietorship |
| liable à | liability |
| responsible à | responsibility |
2. Complete the chart.
| NOUN | VERB | ADJECTIVE |
| own | ||
| liability | - | |
| vary | ||
| benefit | ||
| personal | ||
| disadvantage |
Reading
Read the text carefully and do the tasks that follow.
A business (also known as enterprise or firm) is an organization designed to provide goods or services. Although forms of business ownership vary greatly, there are several common types: the sole proprietor, the partnership, the joint stock company, the cooperative society, the public corporation, etc.
The sole proprietor is the simplest and the oldest form of business enterprise and is often referred to as the one-person business. A single person provides the capital, takes the decisions, and assumes the risks. He or she is responsible for the success or failure of the business, and has, therefore, the sole rights to profits.
The great disadvantage of the sole proprietor is that the owner is personally liable for the debts incurred by the firm and his liability is unlimited. All his personal possessions are at risk.
Partnerships are voluntary combinations of from 2 to 20 persons formed for the purpose of carrying on business with a view of profit. The motive, however, may not be financial. Partnerships are often formed in order to bring new ability and enterprise into the business. They are flexible organizations which allow a greater degree of specialization, but the liability of the partners is unlimited and they are fully liable for the acts of other partners.
The joint stock company consists of an association of people who contribute towards a joint stock of capital for the purpose of carrying on business with a view of profit. A change in membership or a transfer of stock has no effect on the existence of the company. Unlike partners in a partnership, a stockholder in a joint stock company has no agency relationship to the company or any of its members.
A cooperative is a business organization owned and operated by a group of individuals for their mutual benefit. They are limited liability businesses that can be for-profit or not-for-profit. Members often have a close association with the enterprise as producers or consumers of its products or services, or as its employees.
Choosing the right form of business ownership is important because the form of business you choose will determine how your business is organized, how the money that flows in and out of your business is handled, and how your business is taxed.
Comprehension Check
1. Read the text again and decide whether these statements are about the sole proprietor, the partnership, the joint stock company, or the cooperative society.
1. This type of business is easy to organize, but it needs agreement; partners receive all income and partners have unlimited liability.
2. This type of business is easy to organize, the owner has complete control and receives all income.
3. In this type of business the owner has unlimited liability.
4. Such a company has some features of a corporation and some features of a partnership. It sells fully transferable stock, but all shareholders have unlimited liability.
5. This is a jointly owned commercial enterprise (usually organized by farmers or consumers) that produces and distributes goods and services and is run for the benefit of its owners.
2. Answer the questions.
1. What is the purpose of any business?
2. Do forms of business vary? What are they?
3. In what way is the sole proprietor often referred to?
4. Are there any disadvantages of sole proprietorship?
5. What are partnerships?
6. Is the motive of a partnership to make a profit?
7. Is the joint stock company the simplest and the oldest form of business enterprise?
8. What are the characteristics of a cooperative?
9. Why is choosing the right form of business important?
Reproduce the context in which the following word-combinations are used.
- common types
- one-person business
- an association of people
- to take decisions
- to be responsible for
- to be liable for
- to carry on business
- to own and operate
- benefit
- profit
Vocabulary Focus
1. Complete the gaps choosing the right alternative.
1. In a partnership, the business is … by two or more people.
a) varied b) assumed c) owned
2. Every job has its … .
a) disadvantages b) enterprise c) tax
3. Demand for certain products … with the season.
a) contributes b) flows in c) varies
4. Mr Lee … many charities.
a) assumes risks of b) contributes to c) flows in
5. He packed all his … into one bag.
a) possessions b) ownership c) liabilities
6. I didn’t get much…from this transaction.
a) responsibility b) benefit c) disadvantage
7. The baker has … business here for years.
a) varied b) carried on c) flown in
2. Look through the text once again and find the English equivalents.
предоставлять товары и услуги
несколько стандартных типов
быть ответственным за успех или неудачу
исключительное право на прибыль
нести персональную ответственность за долги
быть образованным с целью;
с целью ведения бизнеса
передача фондов
агентские (посреднические) отношения
коммерческий или некоммерческий
контролировать потоки денег
3. Change the words on the right to complete the sentences below.
| 1. He is the … of 2 houses. | ownership |
| 2. You are … for the damage caused by your action. | responsibility |
| 3. The … for this deal is yours! | responsible |
| 4. An association of persons joined as partners in business is a … | partner |
| 5. I’m proud to be his …! | partnership |
| 6. He spent only his … money to buy this flat. | ownership |
Talking points
1. The choice of the form of business or business organization depends on various factors. Share your ideas about them.
2. Partnerships consist of two or more partners who are both responsible for the business. They share assets, profits, liabilities, and management responsibilities for running the business. Before making a decision concerning whether to have a partner or not, it is better to prepare a "for" and "against" list. What are the most common reasons for joining with another person to start the business? Discuss all the advantages and disadvantages with your partner and make a "for" and "against" list.
3. In your opinion, do men or women make more successful business people? Why?
Summary Points
1. Summarize the main idea of the text below.
There are numerous reasons that make people think about owning a business of their own. Personal independence, unlimited profit potential, the opportunity to work at something they really love are some of the reasons people have given for trying entrepreneurship. Many business leaders begin their careers as entrepreneurs after four years of undergraduate college training and even additional graduate school training. Others become successful entrepreneurs without special training.
Many colleges now offer programs that teach students how to start and operate a business. Basic information is combined with hands-on experience and the advice of successful business consultants. These programs help potential entrepreneurs decide whether their own ideas are good and how to follow through with them.
A common way to learn about business, and the opportunities for starting one similar to it, is to learn while working for someone else. It provides a source of steady income to people while they are planning to start their own businesses. About 50 percent of entrepreneurs start their businesses in industries in which they have some experience.
2. Divide the text into logical parts and use appropriate vocabulary to make its summary.
Unit 11