Н.П. Морозова Forms of business organization Формы организации предприятий (английский язык)

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•The small business can give an individual a chance to gain experience, which the person may use later on a larger scale.

•Small businesses are particularly well suited for meeting specialized local needs.

•Artisans can provide individualized products for customers who have grown weary of mass-produced goods.

•Small businesses provide a service where knowing one’s customers is important.

•Sole proprietors are reassuring to customers who believe an individual who is accountable will do a good job.

Small businesses often grow into large ones, adding to the economic vitality of the nation. Small business advocates contend that 55 percent of American technical innovation comes from small-and medium-size businesses. Certainly, many of the creative innovators in the American computer industry, including those who built successful companies in what is now known as Silicon Valley, California, started out as “ tinkerers” working on hand-assembled machines in their garages. They have become part of American business lore. By any measurement, small businesses are an important part of the ferment, the creativity, and the competition that provide new strength to the American economy.

Of course, it is true that small businesses often fail. But in the United States “failure” of a small business venture does not carry with it the social stigma or opprobrium for the failed entrepreneur that it does in some countries. Often, failure of a small business venture turns out to be a valuable learning experience for the entrepreneur, who may be more successful the second or third time. Unsuccessful attempts to start a business become part of the larger process of sorting out the market and making it more efficient, according to small business experts.

SECTION 3. PARTNERSHIPS

	1. Words to be memorized:	A
		- совладелец
	co-owner
	to specify	- точно определять, устанавливать
	to be exempt from	- быть освобожденным от
		(уплаты налогов и т.п.)

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to pool	- объединять в общий фонд,
	складывать
share (n)	- доля, часть, акция, пай
(v)	- делиться, разделять
to earn	- зарабатывать
earnings	- заработок, прибыль
to be liable for	- быть обязанным, быть ответствен-
	ным за
equal liability	- обязательство с солидарной ответ-
	ственностью должников
to bind (bound)	- связывать, обязывать
approximately	- приблизительно

2. Translate into Russian the following words and word combinations from the text:

1. one way to do so is …; 2. like individual ownership; 3. each partner; each act of any partner; 4. furthermore; 5. beyond that the business is not taxed; 6. most of the reporting that the government requires; 7. have greater profit potential than sole proprietorships; 8. all the others; the others must pay; 9. another major disadvantage; 10. nonetheless; 11. half as many partnerships as corporations.

3. Read the text:

Partnership

When a proprietor wants to expand business, one way to do so is to form a partnership, a business formed for profit by two or more coowners. The right and duties of a partnership are regulated by laws of the state where it is formed and by a legal agreement entered into by the co-owners. Usually an agreement specifies the amount of money each is investing and the duties each partner assumes. A partnership agreement also may provide for “a silent partner” two does not take part in management, but who invests money in the business.

The partnership has the advantage of pooling managerial talent. One partner may be qualified in production, another in marketing. The partnership, like individual ownership, is exempt from most of the reporting that the government requires of corporations. Furthermore, it has a favourable tax position when compared with the corporation. Federal taxes are paid by individual partners on their share of earnings : beyond that the business is not taxed.

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A major disadvantage of the partnership is that each member is liable for all the debts of a partnership: each act of any partner is legally binding upon all the others. If one partner takes a large amount of money from the business and squanders it, the others must pay the debt. Partnership suffer another major disadvantage: decision-making is shared. If partners have serious and constant disagreement, the business is bound to suffer.

Nonetheless, the partnership remains a vital part of the overall business economy. The Internal Revenue Service (служба внутренних доходов) reported that between 1972 and 1980, there were approximately half as many business partnerships as corporations.

4.	Match each English word on the left with the Russian
translation on the right:
I.	1. to own	a. совладелец
	2. own	b. хозяин, собственник
	3. owner	c. свой собственный
	4. ownership	d. обладать, иметь
	5. ownerless	e. бесхозный, бесхозяйный
	6. co-owner	f. владеть совместно
	7. to co-own	g. собственность, владение
II.	1. profit	a. пользоваться, извлекать пользу
	2. gross profit	b. прибыль, выгода
	3. net profit	c. выгодно, с прибылью
	4. profitable	d. чистый доход
	5. profitably	e. спекулянт, барышник
	6. to profit	f. участие в прибылях
	7. profiteer	g. спекулировать
	8. to profiteer	h. валовой доход
	9. profit-sharing	i. прибыльный, выгодный
5. Find in the text the English equivalents:
1. расширить дело; 2.		способ получения прибыли; 3. права и

обязанности; 4. правовое (юридическое) соглашение; 5. соглашение о создании товарищества; 6. вкладывать деньги в дело; 7. быть квалифицированным специалистом в производстве и маркетинге; 8. как индивидуальная собственность; 9. быть освобожденным от предоставления отчета; 10. более того; 11.

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федеральные	налоги;		12. доля	прибыли;	13. крупный
недостаток; 14.	быть	ответственным		за долги товарищества;
15. взять крупную cумму денег; 16. растратить					деньги;	17.
заплатить долг;	18.	страдать от; 19. принятие решений;				20.
расхождения; 21. тем не менее; 22. приблизительно.

6. Answer the questions:

1. What is the way to expand business for a sole proprietor?

2.What does a partnership agreement specify?

3.What are the advantages of a partnership?

4.What are the disadvantages of a partnership?

5.What part do partnerships play in the US economy?

B

1. Words to be memorized: unlimited (англ.)

partnership – полное товарищество

general (амер.)

limited partnership – коммандитное товарищество. Товарищество с ограниченной ответственностью.

master limited partnership – акционерно – коммандитное товарищество.Открытое коммандитное товарищество.

	general partner		полный товарищ, партнер
	full member
		- партнер с ограниченной ответственностью,
	limited partner
			компаньон-вкладчик
	private property	-	частная собственность
	joint property	-	совместная собственность
	to distribute	-	распределять
	to disband	-	распускать
	statutory	-	установленный законом

articles of partnership – соглашение об учреждении товарищества

charter	-	устав
public record	-	документ публичного характера
shareholder	-	держатель акций, акционер
stock exchange	-	фондовая биржа
to quote	-	котировать, назначить цену

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devaluation	- девaльвация, обесценивание
a legal person	-	юридическое лицо
issue of securities	-	выпуск ценных бумаг

2. Translate into Russian the following words and word – combinations from the text:

1. in other words; 2. either at the expense of partnership’s property or private property; 3. shares can either be sold or distributed; 4. either in case of insolvency or resignation; 5. besides; 6. at least one general partner; 7. once the investment is gone; 8. however; 9. in order to provide a public record; 10. behind the partnership; 11. for example.

3. Read the text:

(I) Unlimited Partnership (англ.) General Partnership (амер.)

The main feature of unlimited partnerships is equal and collective responsibility for the property for all members of the partnership. In other words, creditors can be paid either at the expense of the partnership’s property or private property of the members. Besides, the agreement can not provide for the exception of property liability of any of the members before a third party. The property of the unlimited partnership is a joint property of its members.

The profit obtained is distributed proportionally to the share of participation in the property of the partnership. Concession of the share of participation can be made only will the consent of the members. The number of members of the partnership is not limited.

The unlimited (general) partnership can be disbanded either in case of insolvency or resignation of one of its members or by resolution of all participants. Unlimited partnerships are not subject to public report.

(II)	Limited partnership
The limited	partnership is a relatively new form of doing

business that provides its owners with an interesting structure combination. There must be at least one general partner who has full liability, but there are also limited partners who have personal liability only to the extent of their investment in the partnership. Once the investment is gone their liability ends. These partners do, however, enjoy the benefit of the flow–through of income and losses. These types of partnerships are statutory creations and require that the articles of partnership be filed with some government agency in order

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to provide a public record of the limited liability of certain partners. One of the biggest mistakes some businesses make in extending credit to partnerships is failing to verify whose assents, and how many, really are behind the partnership. The list of partners may look impressive, but the extent of a wealthy partners’ investment may be only 5000 dollars, while your contract may be for 250,000 dollars.

Limited partners need to be careful that their actions do not cost them the protection of their limited partner status. For example, a limited partner who begins to assume management responsibilities creates an impression that does not accord with his or her status. So does a limited partner who allows his or her name to be used in the partnership name. Courts can impose general liability when limited partners allow to create these impressions.

(III) Master Limited Partnership

Master limited partnerships carry out business on the basis of a Charter and are to the registered. One or more full members (general partners) and shareholders as investors make a partnership. Shares can either be sold to or distributed among the investors or quoted on the stock exchange. Full members run the partnership and are liable by the partnership’s obligations. The shareholders run the risk of devaluation of their shares. A legal person can act as a full member. This master limited partnership bears characteristics both of a limited partnership and a public limited company.

4. Choose the correct answer:

A partner is …

a)any person who signs any kind of legal document.

b)a person or group of people who take part in a legal agreement or dispute.

c)one of two or more people who run a business.

5. Fill in the blanks with prepositions where necessary:
1) The name ---- the firm. 2) In case ---- insolvency.						3)
Responsibility ----		the partnership’s obligations. 4) Liability before
---- the third party. 5)To be subject ----				public report. 6) Shares can
be sold ----	or distributed		---- the investors. 7) To be quoted ----			the
stock exchange. 8) Run ----			the risk. 9) The risk ----		devaluation	---
- shares.

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6. Give English equivalents to these words and word combinations. Make up your own sentences using them:

1. основная черта полного товарищества; 2. неограниченная и солидарная имущественная ответственность; 3. полученная прибыль; 4. другими словами; 5. личное имущество; 6. перед третьими лицами; 7. рисковать; 8. прибыль распределяется пропорционально; 9. доля участия в имуществе товарищества; 10. в случае банкротства; 11. подлежать публичной отчетности; 12. должен быть зарегистрирован; 13. кроме того; 14. на сумму

их вклада в	товариществе; 15. прибыль и убытки;	16.
предоставление	кредита; 17. принимать на себя ответственность

по управлению; 18. полные товарищи и акционеры как инвесторы; 19. руководить товариществом; 20. юридическое лицо может действовать как; 21. котироваться на фондовой бирже.

7.Answer the following questions:

(I)1. What is the main feature of an unlimited partnership?

1. In what way is the profit obtained distributed in the unlimited

partnership?

3.In what case can the unlimited partnership be disbanded?

(II)4. What is a limited partnership?

5.How many people does it take to form a limited partnership?

6.In what case can courts impose general liability on a limited

partner?

(III) 7. Why do master limited partnerships bear the features of the limited partnership and a public limited company?

8 .What is the advantage of a master limited partnership?

9.What feature is attractive for investors in a master limited partnerships?

		С
1. Words to be memorized:
sign	-	подписывать
signature	-	подпись
authority	- полномочие, власть, сфера компетенции
to distinguish	- различать
to attach	- налагать арест, описывать имущество
collection	- взыскание, инкассирование

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2. Read the text:

(I)	Signatures and Authority

In dealing with partnerships, the businesses should verify the authority of the signing partner (certain types of agreement require the signatures of all partners). It is also important to distinguish between contracts that partners enter into for the partnership and those that they enter into for personal use of benefit. Partners acting without authority or for personal reasons do not bind the partnership, and the assets of the partnership can not be attached for collection of the contract amount.

Partners themselves need to understand clearly what roles and authority they have in operating the partnership. If there are limitations on what and how much one partner can contract for, those limitations should be made clear both to the partners and those who do business with the partnership. For example, if a partner can sign for office supplies but not for new equipment, suppliers must be made aware of those limitation.

3. Find English equivalents to these words and words combination:

1) имея дело с …; 2) проверить полномочие; 3) требовать подписи всех партнеров; 4) различать контракты; 5) заключить договор (контракт); 6) партнеры, действующие без полномочий, или из личных соображений; 7) имущество (активы) товарищества; 8) в управлении товариществом; 9) ограничения

касательно того, на что и на какую сумму		один партнер	может
заключить	контракт; 10) например;	11) подписать	на; 12)
поставщики должны быть поставлены в известность.

4. Answer the questions on the text:

1) What should one verify doing business with a partnership?

2)In what cases cannot the assets of a partnership be attached for collection of the contract amount?

3)Must suppliers be aware of the limitation of the partner’s authority?

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1. Do the written translation of the text using a dictionary. The time limit is 45 minutes:

(II)	The Uncreated partnership
	A partnership is a particularly dangerous animal in terms of

liability because it can be created when the parties do not have a formal agreement to do so. Such “uncreated partnerships” are legally assumed when the impression of a partnership is created in the minds of outsiders. For example, a lender provided the interim financing for the developer’s 1 subdivision 2 project. Ordinarily the transaction would be labeled a loan, and the relationship would be one of borrower and lender. However, the lender had a say in the layout of the subdivision, had to be consulted on the construction of models and homes built on speculation, and was to capitalize the interest on the project in exchange for a percentage of profits from the sale of lots in the subdivision. The lender had just given every signal required to establish that a partnership exists. Even though the lender and the borrower did not set out 3 to form a partnership, their conduct created the impression of a partnership in the minds of contractors, subcontractors and suppliers. The result was that the lender was held liable for unpaid bills on the subdivision as a partner by implication 4 . It was up to the lender to dispel the impressions and rumors in order to keep from acquiring the liability of a partner.

	Vocabulary notes:
1. developer	– застройщик
2. subdivision	– участок земли под строительство жилого
	массива
3. set out	– намереваться
4. by implication	– косвенно, в порядке презумпции.

D

1. Read the text and find the answers to the questions:

( I ) Disagreement, Disability, Divorce and Death

(Расхождение, Инвалидность, Развод и Смерть)

1. When must a partnership be dissolved?

These above mentioned “four Ds” present the greatest threat (угроза) to a partnership’s continued existence. A major

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drawback(слабое место) of a partnership is that it must be dissolved every time a partner withdraws (уходить), retires or dies.

2. What must be done if one of the partners leaves the firm?

If a partner leaves the firm, the departure must be made clear to others so that the partner’s liability can end and so that the partner is not tempted(соблазняться) to continue to deal with the suppliers of the firm and perhaps to earn and a profit. For example, one retired partner continued to order the firm’s office supplies as he had for twenty years. He picked up(приобретать) the supplies and then sold them while his old firm was billed(выставлять счет) for the supplies. Once the firm discovered the ploy(хитрость), it refused to pay the supply seller. However, the court(суд) ruled(постановить) that the seller was entitled(иметь право) to payment because no one had ever informed the seller of the change in the partner’s status. Any time a partner leaves a partnership, the firm must give notification(уведомление) to all customers and suppliers and should also publish some general notice of the change in ownership.

3. What special problems does the death of a partner carry? How can such problems be solved in the partnership agreement?

The death of a partner carries some special problems in addition to the notification needs just discussed. For one thing, the heirs(наследник) of the deceased(умерший) partner are entitled to be paid the value of that partner’s interest in the firm, and many firms do not have the cash to do this. One legal strategy is to have insurance policies(страховой полис) on the partner’s and then stipulate(оговорить) in the partnership agreement that the policy payment, in annuity(ежегодный доход, периодически выплачиваемый взнос) form or otherwise, will be considered payment for the partner’s interest in the firm.

4. What can be caused by the divorce(развод) of one of the partners? What can be good legal strategy for avoiding divorce problems?

The divorce of one of the partners can cause(стать причиной) a tremendous drain(утечка, расход) on the partner and the partnership. In many cases, the partners become witnesses(свидетели) as the feuding spouses(враждующие супруги) attempt to value their property and determine who will get how much. The litigation fees(судебные издержки) can be tremendous and the damage to the morale (моральное состояние) of the firm can be even greater. A good legal strategy for avoiding divorce problems is to stipulate in the