I. Answer the questions:

1. What are the responsibilities of a board of directors in a corporation? Name them.

2. What are major duties of a Board of Directors?

3. What can we call an effective board of directors?

WORDS TO REMEMBER

permissible	дозволенный
feature	oсобенность, признак, свойство
tax efficiency	налоговая эффективность
operational flexibility	гибкость операций
formation	образование, создание
duration	срок действия
to file papers	подавать документы на регистра­цию
vote	голосование
expiry date	дата окончания
transferability	передача (имущества, права и т. п.)

TEXT E

LIMITED LIABILITY COMPANY (LLC)

The LLC is a relatively new type of hybrid business structure that is now permissible in US. It is designed to provide the limited liability features of a corporation and the tax efficiency and operational flexibility of a partnership. Formation of LLC is more complex and formal than that of a general partnership.

The owners are members, and the duration of the LLC is usually determined when the organization papers are filed. The time limit can be continued if desired by a vote of the members at expiry date (the time of expiration). LLC's must not have more than two of the four characteristics that define corporations:

1. Limited liability to the extent of assets;

2. Continuity of life;

3. Centralization of management; and

Free transferability of ownership interests.

TASKS

I. Speak about:

1. Sole Proprietorships, their advantages and disadvantages.

2. Partnerships, their types, their advantages and disadvantages.

3. Corporations, their advantages and disadvantages.

4. The purpose of a Board of Directors in a Corporation.

5. Major duties of a Board of Directors in a Corporation.

II. Answer the questions:

1. What is business?

2. What is an entrepreneur?

3. What are the forms of small business?

4. What are the advantages and drawbacks of small business?

5. What is a partnership?

6. What are the main differences between public and private companies?

7. What are the types of companies?

8. What is a corporation?

9. What is franchising and what are its advantages?

III. Decide which of the advantages and disadvantages below you would associate with the following forms of business. In some cases there may be more than one correct answer.

1. a sole trader

2. a partnership

3. a private limited company

4. franchising

Advantages

1. You have total control of your business.

1. This is a good way of sharing the pressure and work of starting a business.

2. The financial risks that you are taking are re­stricted.

2. You can increase your capital by selling shares.

3. You can go into business with limited risk and outlay.

Disadvantages

1. There is a danger that conflicts of personality could ruin your business.

2. It may be difficult to expand.

3. You may have to sell your possessions if the company goes into debt.