Prepare the topic «London as historical and financial centre».

MODULE 3

TYPES OF PROPRIETORSHIP

 

Part 1 «SOLE PROPRIETORSHIP»

 

What types of business do you know? Give your ideas about their main characteristics.

2. Read the text and find out the main types of proprietorship:

 

TYPES OF PROPRIETORSHIP

A business may be 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 per cent 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 beauty shops, different repair shops and restaurants.

 

VOCABULARY

to own to be privately owned owner ownership property proprietorship sole proprietorship

partnership corporation to account for receipts service industry repair shop

 

EXERCISES

 

Match the words to their definitions.

 

proprietorship own corporation business receipts partnership repair shop

· money received by a business · a business owned by two or more partners · something which is owned or ownership with · its rights and duties according to the law · a place where something broken can be mended · a group of people who are permitted by law to act as a single unit for purpose of business · to posses or have a lawful right · a particular money-earning activity or place, such as a shop or factory

4. Answer the questions to the text:

a) What types of proprietorship are there?

b) What forms of business are typical for European countries and America?

c) What business can be a sole proprietorship?

d) What business can’t be a sole proprietorship?

5. Read the dialogue and guess the meaning of the words in bold:

 

· Hi, Alice. How are you?

· Fine, as usual, thanks. Jim, what about you?

· I’m O.K. It’s nice to see you.

· Me too. I’m glad you are not in a hurry and we have time to talk today.

· Sure.

· Can you give me a piece of advice?

· Well, I’ll try.

· You know I’ve been always good at cooking. It interests me. I’m thinking of starting my own business – café.

· It might be a good idea.

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

· Are going into business by yourself?

· Exactly. I want to have a café with my name on it where I make the decisions and where I can control the profits.

· I’ll try to help you. If you go into business alone, it is called a sole proprietorship. In such case you needn’t consult a lawyer to form a business. You can start or stop it 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 policies into effect quickly. You decide on your vacations, hours, salary, hiring and firing.

· Well, that is not bad.

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

· What do you mean?

· 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 and corporations can get.

· I know about it. By the way do you know a well-qualified accountant to do my taxes?

· Of course. You’ll have to hire a skilled 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’m a bit hungry, why do not we have a snack together and discuss the things in the café.

· You are right as usual. Let’s go.

 

VOCABULARY

to give a piece of advice responsibility

to make a decision to be good at

to control the profit Board of Directors

to start one’s own business to decide on

to go into business alone vacations

to consult a lawyer hours

to form a business hiring

to put policies into effect quickly to hire

unlimited liability firing

to be responsible for to fire

to declare personal bankruptcy to involve

to get tax benefits debts

to do books accountant

to think over bookkeeper

to discuss skilled

to go bankrupt salary

to employ

employer

employee

 

EXERCISES

 

6. Find the synonyms among the words below:

to run a business surplus administration to fire to involve to rule a business to go in to business bookkeeper

accountant to employ to include profit to think over to be successful to sack

to make a decision to go bankrupt to start a business to put policies in to effect to fail to hire board of directors