XVIII. Answer the following questions

1. What are the types of business organisation to be found in the UK?

2. What is the simplest and oldest form of business enterprise?

3. What is the strength of the one-person business?

4. What are the disadvantages of this form of business organisation?

5. Why is the one-person business less important compared with the joint stock company?

6. Where is the one-person business prevalent?

XIX. Read and translate the text and define the advantages and drawbacks of the business organization in question partnership

Partnerships are voluntary combinations of from 2 to 20 persons formed for the purpose of carrying on business with a view of profit. This type of organisation represents a logical development from the one-person business since the obvious method by which such a firm may acquire further capital is to form a partnership. The motive, however, may not be financial and partnerships are often formed in order to bring new ability and enterprise into the business.

The partners usually share in the task of running the business, but a partner need not play an active role. A person who joins a partnership, supplying capital and sharing in the profits, but taking no part in the management is known as a dormant or sleeping partner. Partnerships are a common form of business organisation in such professions as law, accountancy, surveying, and medicine.

The advantages of this type of firm are similar to those of the one-person business. It is a flexible organisation which allows a greater degree of specialization than the one-person business. Partners usually specialize in one or more aspects of the business; one may be responsible for buying, one for selling, one for production, and so on. Since it has greater access to capital, it can achieve greater size than the sole proprietor.

The great disadvantage, like that of the one-person business, is the fact that the liability of the partners is unlimited and they are all fully liable for the acts of the other partners. There are, however, some limited partnerships which have to be registered with the Registrar of Companies. In such firms some partners (e.g. dormant partners) may have their liability limited to some specified sum, but at least one of the partners must have unlimited liability.

The survival of a partnership depends upon the continued harmonious relationship between a number of people in situations which often give much cause for disagreement. Thus, where trading risks are very great, the partnership is not a very stable type of organisation.

XX. Make up a summary of the text.

SPEAKING

XXI. Work in pairs. Discuss advantages and disadvantages of both types of business organizations: sole proprietorship and partnership

Tip:

SECTION 3.3. JOINT STOCK COMPANY

KEY VOCABULARY

I. Read and remember the pronunciation the following words

legal ['lɪgl]

engage [ɪn'geɪʤ]

asset ['esәts]

capable ['kæp(ә)bl]

private ['praɪvɪt]

public ['pʌblɪk]

allotted [ә'lɔtɪd]

abbreviated [әb`rɪvɪ'eɪtɪd]

debentures [dɪ'benʧәz]

2. Remember the words given

employ labour – принимать на работу

annually – ежегодно

distinction – различие

debenture – облигация акционерного общества или компании, долговое обязательство, долговая расписка

allot – распределять, предоставлять, выделять, наделять, предназначать

criminal offence – уголовное преступление

subscribe to – подписаться на акции

file – представлять, подавать какой-л. документ

Registrar of Companies – Бюро регистрации акционерных компаний

productive assets – производственные активы