3. Oral Practice

I. Answer the questions:

1. How many legal forms are available to small firms?

2. What factors affect the decision to choose legal form of the business?

3. What are the legal requirements for starting a business as a sole proprietorship?

4. What is the proprietor solely responsible for?

5. What is a partnership agreement? What should it include?

6. What is the corporation?

7. What types of corporation exist?

8. Can you compare the legal forms of business for their advantages and disadvantages?

2. Find antonyms to these words

   1. Markdown

   2. Expensive

   3. To pay attention

   4. Profit

2. Match the words with their definitions

Layout, tax return commitment, monetary unit, markdown

1. A promise; something to which one has committed oneself which one is bound to do a payment which one is bound to make.

2. The standard unit if the currency of a country

3. The way the building and its contents are arranged. A drawing or diagram showing this

4. In Britain, a statement which every taxpayer must be law make once a year

5. A reduction in price usually to encourage a quick sale

2. Choose the best alternative to complete the sentence

   1. A ... provides a total visualization of the firm before operations are started

      1. income statement

      2. complete business plan

      3. balance sheet

   2. There are ... steps in planning

      1. 14

      2. 25

      3. 10

   3. Determine what ... you want from the business

      1. Loss

      2. Assets

      3. Profit

   4. The most important thing in planning a new small firm is that all ... of its operations must be considered

      1. Phases

      2. Expenses

      3. Liabilities

   5. Supply the sentences with the missing words

      1. No commitments contract should be undertaken without clear idea of ... are possible over at least the ... year of operation

      2. Choose your ... form of organisation

      3. Review all aspects of your ... plan

      4. Establish an ... of accounting records

      5. Value in ... should be attached to each assets

   6. Combine these pairs of sentences with an appropriate connector

      1. Sales have decreased. Profit have increased

      2. We were making a loss. We withdrew from the market

      3. The product sold well in the South. In the North, the result were disastrous

      4. We promoted the product at the point of sale. Our competitors used mass advertising

   7. Make up sentences with these words

      1. Provides, before operations, a complete business plan, of the firm, a total visualisation

      2. Must, determine, you, want, you, what profit, from the business

      3. All aspects, review, of your, plan, merchandising

      4. At the firm, a personnel policy, establish