Make 3 true/false statements about partnership and corporation.

Exercise 3

Match the English words to their Russian equivalents:

a. товары и оборудование b. преимущества и недостатки c. подоходный налог d. неограниченная ответственность e. личная собственность f. предоставить капитал g. принимать решения

a. income tax b. advantages and disadvantages c. to make decisions d. unlimited liability e. to provide capital f. personal property g. goods and equipment

Exercise 4

a) Supply the missing forms of the words.

verbs	nouns
decide
	owner, ownership
	equipment
satisfy
continue
	bankruptcy
	difference

b) Complete the following sentences with the correct verb or noun from the list above.

1. The sole proprietor can ....... for himself if he wants to form a new business.

2. The.......can keep all the profits of the business.

3. The proprietor made a.........to purchase some new.........

4. The sole proprietorship, partnership, and corporation........in the manner in which they raise capital.

5. If the owner makes the wrong decision, it may.........the business.

6. The proprietor does not wish to........his enterprise, because he was unsuccessful and he doesn’t

get any........ from his efforts.

7. It takes capital to purchase inventory and.......the workshop with the necessary tools.

8. We try to........the customers so that they will........to shop here.

Exercise 5

Match the expressions to their definitions or synonyms on the right.

1. to comply with 2. sole proprietorship 3. to purchase 4. assets 5. is entitled 6. to carry out 7. enterprise

a. to follow b. one-owner business c. to buy d. things of value to a business e. is allowed by law f. to fulfill g. business

Exercise 6

Match two columns to make word-combinations and translate them:

1. business 2. government 3. legal 4. personal 5. corporate 6. legal

a. entity b. wealth c. regulations d. agencies e. profits f. agreement

Exercise 7

Complete the sentences in the most suitable way.

1. A partner is...

a) any person who signs any kind of legal document

b) a person or group of people who take part in a legal agreement or dispute.

c) one of two or more people who runs a business.

2. The investor of the public company has a right to sell the shares belonging to him....

a) only with the permission of the Board of Directors.

b) without the consent of other shareholders of the company.

c) only to the shareholders of the same company.

3. A sole/ individual proprietor is...

a) the managing director of the company.

b) an individual doing business on his own behalf.

c) a hired person in charge of the operation of the company.

Exercise 8

Replace the words in italics with expressions from the text which have the same meaning.

1. The sole proprietor may keep all the profits derived from his business.

2. A sole proprietorship is the easiest to initiate and the easiest to terminate.

3. The joint owners owe all the liabilities and pay personal income taxes on their part of the profits.

4. In the case of business failure, the responsibility of the corporation for its debts is limited.

5. The board of directors keeps part of the profits to increase the capital of the

corporation.

6. The stockholders pay personal income taxes on their profits from stock.

7. The activities of the corporation are closely watched by the government.

Exercise 9

Writing. Make a list of advantages and disadvantages of the three legal forms. Share your findings with the group.

Exercise 10

Speaking. Pair work.Work with your partner and discuss which legal form is better for what kind of business, e.g., for a flower shop, an oil company, a law firm. Give arguments to support your statement. Share your opinions with your group mates.

Exercise 11

Speaking. Role play. Work in groups (or pairs). One of you is a lawyer. Advise your clients who want to start a new business which form to choose. Give your pros and cons. Ask your clients questions about their wishes as t the size of the company, availability of capital, responsibility for decision-making, liability. Your clients should ask you about advantages and disadvantages of each of the legal forms and answer your questions and then come to the mutual decision which form to choose.

Exercise 12

Writing.Write a paragraph (200 words) emphasizing the similarities and differences between 2 of the legal forms discussed in the unit.

Compare the legal forms in terms of capital, use of profits, liability, taxation. Use the following models:

Model 1. (Un)like + N, S+V.

Model 2. In contrast to + N, S+V.

Model 3.S+V, but S+V.

e.g. Unlike partnership, corporation has limited liability,

Exercise 13

Grammar focus 10. Passive Voice.

a) Put the verbs in parenthesis into a passive form:

3) The ownership of a corporation _____ _______(to divide) into shares of stock.

4) The liability of a corporation _____ _______(to limit) to the assets of the company.

5) Corporate profits _____ _______(to tax) twice.

b) Find the sentences in the text in Passive Voice, analize them and translate into Russian.

Exercise 14