II. Fill in the blanks below with the most appropriate terms

from the list:

the profits; losses; tax benefits; the management; general partners; sole proprietorships; wholesaling; unlimited financial liability; limited partners.

1. Partnerships are also found in manufacturing, ________ and retailing. 2. _________ are the partners with unlimited liability. 3. General partners own the business, work in it and share ________ and ________ .
4. General partners are responsible for ____________ of the business.
5. Partnerships have more advantages than ____________ . 6. The major disadvantage of a partnership is ___________ . 7. ___________ are usually not involved in the management of the firm. 8. Partnerships very often receive ___________ from the government.

III. Fill in the blanks with prepositions or adverbs if necessary:

1. A partnership is a business that is ... owned ... two or more ... people. 2. The partners are responsible ... the management ... the business and usually agree ... each other ... making any ... major ... decisions.
3. Limited partners are liable ... the amount they have invested ... the business. 4. They are usually not involved ... the management ... the firm.
5. Each partner is responsible ... all debts and is legally responsible ... the whole business. 6. One ... the greatest problems ... partnerships is that partners may disagree ... each other causing conflicts ... management.

IV. Complete the following sentences:

1. A partnership is a business that... . 2. Partnerships are most common in ... . 3. The most common form of partnership is ... . 4. All partners are responsible for ... . 5. There may be a special type of partnership, called ... .
6. Limited partners are only liable ... . 7. They are usually not involved ... .
8. Like sole proprietorship partnerships are ... . 9. The major disadvantage of a partnership is ... . 10. One of the greatest problems in partnerships is ... .

V. Answer the following questions:

1. What is a partnership? 2. In what professional fields are partnerships most common? 3. What is the most common form of a partnership? 4. What is a general partnership? 5. What is a limited partnership? 6. They are usually not involved in the management of the firm, are they? 7. What is the difference between a general partnership and a limited partnership? 8. What advantages do partnerships have? 9. What is the major disadvantage of a partnership? 10. What is one of the greatest problems in partnerships?

READING DRILLS

1. Practise the pronunciation of the following words:

a) stress the first syllable:

operate, corporate, charter, document, grant, company, salary, private, public, specify, share, shareholder, stock, stockholder, dividend, portion, profit, profitable, ownership;

b) stress the second syllable:

establish, permission, headquarter, eventually, certificate, ability, invest, investor, equipment, research, capacity, expansion, expensive, approve, acquire, require, obtain, create, avoid, addition.

Text C

Nearly 90 per cent of all business is done by corporations. A business corporation is an institution established for the purpose of making profit. It is operated by individuals. People, who would like to form a corporation, must file for permission¹ in the state where the business will have its headquarters. If approved, a charter, government document that gives permission to create a corporation, is granted. The charter states the name of the company, address, purpose of business etc.

The charter specifies the number of shares of stock², or ownership parts of the firm. These shares are certificates of ownership³and are sold to investors called shareholders or stockholders⁴. The money is then used to set up corporation. If the corporation is profitable it will eventually issue dividend or a check, representing a portion of the corporate profits to shareholders.

There are several advantages of the corporate form of ownership. The major advantage is the ability to acquire greater financial resources than other forms of ownership. The next advantage is that the corporation attracts a large amount of capital and can invest it in plants, equipment and research. It can offer higher salaries and thus attract talented managers and specialists. Corporations have great capacity for growth and expansion.

Corporations face some major disadvantages. It is difficult and expensive to organize a corporation. The process of obtaining a charter usually requires the services of a lawyer. Most small firms prefer to avoid these expenses by forming proprietorships and partnerships. There is also an extra tax on corporate profits. The government taxes corporate income in addition to the taxes paid by shareholders on their dividends.

COMMENTS

1.file for permission —звернутися за дозволом

2.the number of shares of stock — кількість акцiй основного капiталу

3. certificates of ownership — свідоцтво про власнiсть

4. shareholder/stockholder — акцiонер; власник акцій

VOCABULARY EXERCISES

І. Give the Ukrainian equivalents for the following words and

word-combinations. Use them in the sentences of your own:

to establish a business; to make a profit; to form a corporation; to file for permission; a charter; to give permission; to create a corporation; certificates of ownership; partnership; the number of shares of stock; proprietorship; to attract a large amount of capital; shareholder; stockholder; small firms; an extra tax on corporate profits; corporate form of ownership; profitable; to set up corporation; the major advantage/disadvantage; to attract talented managers and specialists; to issue dividends; financial resources; to invest; corporate income.