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Lesson 1. Types of proprietorship.

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Lesson 1. <!--

Types of proprietorship.

A business may be privately 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 percent 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 Laundromats, beauty shops, different repair shops, restaurants.

Comprehension questions

1.     What are three different ways that a business can be privately owned?

2.     What forms do most European countries have?

3.     What forms do the businesses in the USSR have?

4.     Name some businesses that are likely to be sole proprietorships. Why do you think so?

5.     Name some businesses that are not likely to be sole proprietorships. Why do you think so?

business

to own

sole proprietorship

partnership

corporation

volume

receipt

service industry

to account for

repair shop

Vocabulary practice

Exercise 1. Choose the necessary word and put it in the sentence.

1.     small… are very often service industries. 1 receipts

2.     the … industries don’t produce material goods. 2 business

3.     more than 80 per cent of all business … are not from sole proprietorships. 3 service

4.     less than 20 per cent of European businesses are partnerships or …4 privately

5.     sole  proprietorships … only a small part of all business receipts. 5 account

6.     is this bank owned publicly or …? 6 corporation

7.     there are three … of  business ownership. 7 forms

 

piece  of advice

can you give me a piece  of advice

I am thinking of starting my own business

responsibility

to make decisions

     sole proprietorship

to need a lawyer

it sounds encouraging

to consult partners

a board of directors

to put policies into effect

quickly

to hire

to fire

to decide on vacation, hours, salary, hiring and firing

to have unlimited liability

to be responsible for all business debts

to fail

to declare personal bancruptcy

personal assets

tax benefits

to get tax benefits

accountant

book-keeper

to do books

Exercise 3. Answer the questions.

1.     Are you thinking of starting your own business?

2.     What business do you want to start?

3.     How do we call the business if you go into it alone?

4.     Who is going to make the decisions and control the profits in your business?

5.     Do you need a lawyer if you want to start a sole proprietorship?

6.     Why don’t you have to consult the partners in a sole proprietorship?

7.     How many employees are you going to hire for your business? in what cases will you fire them?

8.     What does it mean to have unlimited liability? Are you ready for it?

9.     What will you do, if your business fails?

10. What will you do to put  policies into effect quickly?

11. What businesses have tax benefits in this country?

12. Can you do your books yourself?

13. Are you going to hire a book-keeper?

Exercise 4. Translate into English.

1.     мне нужен совет.

2.     я сам контролирую прибыль своего предприятия.

3.     если вы хотите заняться частным предпринимательством, обратитесь к юристу.

4.     директор решает вопросы, связанные с наймом и увольнением.

5.     я боюсь иметь полную юридическую ответственность.

6.     я не отвечаю за производственные долги.

7.     малые предприятия имеют льготы по налогообложению.

8.     хороший бухгалтер сможет вести дела лучше, чем вы.

9.     мне нужно нанять бухгалтера.

10. мне нужно проконсультироваться с юристом.



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