VII. Answer the following questions:

1. What is a business organization? 2. What are the major kinds of business organizations? 3. What is the most common form of business organization? 4. The sole proprietorship is a business owned and run by one person, isn’t it? 5. What is the main advantage of a sole proprietorship? 6. What other advantages does it have? 7. In what businesses are sole proprietorships generally found? 8. What are the major disadvantages of a sole proprietorship?

VIII. Translate into English:

1. Є три форми органiзацiї бiзнесу: одноосiбна власність, парт­нерство та корпорація. 2. Найбiльш поширеною формою органiзацiї бiзнесу є одноосiбна власність. 3. Одноосiбна власність — це бізнес, який пiдпорядкований i провадиться однiєю особою. 4. За винятком певних лiцензiй i внескiв, якi можуть вимагати урядовi органiзацiї, бiльше жодного бюрократизму не iснує. 5. Головним недоліком одно­осібного підприємства є необмежена юридична відповідальність. 6. Оскільки підприємство та власник — та сама юридична особа, власник несе відповідальність за фінансові збитки та борги підприємства. 7. Якщо бізнес зазнає краху, власник особисто бере на себе всі борги. 8. Іншим недоліком одноосібної власності є обмежені фінансові ресурси.

IX. Retell the text a using the following words and

word-combinations:

business organization; the sole proprietorship, partnership; corporation; a profit-seeking enterprise; the main advantage; to dissolve the business; to pay taxes; red tape; to have minimal legal restrictions; small-scale retail and service businesses; to achieve success; to have unlimited liability; to assume the debts; to be liable for; the loss of personal property; savings.

Reading drills

1. Practise the pronunciation of the following words:

a) stress the first syllable:

partner, partnership, jointly, wholesaling, stockbrokerage, management, talent, purpose, profit, common, medicine, limited, benefit, liable, legal, legally;

b) stress the second syllable:

combine, accounting, retailing, responsible, agree, decision, investment, involve, advantage, amount, invest, financial.

Text B

A partnership is a business that is jointly owned by two or more people who have combined their talents and resources for the purpose of earning a profit. Partnerships are most common in such professional fields as medicine, law, accounting, stockbrokerage¹, but they are also found in manufacturing, wholesaling and retailing².

The most common form of partnership is a general partnership³. General partners own the business, work in it and share the profits and losses. They are responsible for the management of the business and usually agree with each other before making any major decisions.

There may be a special type of partnership, called limited partnership⁴. Limited partners are only liable for the amount they have invested in the business. They are usually not involved in the management of the firm.

Partnerships have more advantages than sole proprietorships. Like sole proprietorship they are easy to form and often get tax benefits⁵ from the government.

Partnerships have certain disadvantages too. The major disadvantage is unlimited financial liability. It means that each partner is responsible for all debts and is legally responsible for the whole business. But one of the greatest problems in partnerships is that partners may disagree with each other causing management conflicts.