III. Partnership

A partnership is an association of two or more persons to carry on a business for profit. When the owners of the partnership have unlimited liability they are called general partners. If partners have limited liability they are called «limited partners». There may be a silent partner – a person who is known to the public as the member of the film but without authority management. There is a secret partner, it is a person, who takes part in management but who is not known to the public.

Any business may have the form of the partnership, for example medicine, law, accounting, insurance. Limited partnerships are a common form of ownership in real estate, oil prospecting, quarrying industries…

Partnerships have more advantages than sole proprietorships. They are easy to form and often get benefits from the governments.

Partnerships have some disadvantages. One is unlimited liability. It means that each partner is responsible for all debts and legally is responsible for the whole business. Another disadvantage is that the partners can disagree with each other.

Vocabulary

1. To carry on a business (for profit)

2. an association

3. a general partner

4. a limited partner

5. a silent partner

6. a secret partner

7. an authority

8. to have authority in

9. law

10. insurance

11. ownership

12. a real estate

13. oil prospecting

14. quarrying industries

15. to be legally responsible for

EXERCISES ON THE VOCABULARY

1. Fill in the gaps with the suitable words. (Consult the text)

1. A partnership is an association of two or more persons … … … for profit.

2. When the owners of the partnership have … … they are called general partners.

3. A silent partner is a person, who is known to the public as the member of the film, but he has no … in management.

4. A secret partner is a person who … … management, but who is not known to the …

5. Limited partnerships are a common form of … in real estate.

6. Partnerships are … to form and they can get … from the government.

7. Unlimited liability means that all partners are … … all debts and are … responsible for the whole business.

8. The partners can also … with each other.

2. Match the words and their definition

a general partner a person who is known to the public as the member of

the firm but without authority in management;

a limited partner a person who takes part in management but who is not known to the public;

a silent partner a person who has unlimited liability; a secret partner a person who has limited liability.

3. Translate the sentences from Russian into English

1. Мы с другом партнеры, поэтому мы ведем дела вместе.

2. Партнеры, так же как и частные собственники, наделены неограниченной юридической ответственностью.

3. Наша фирма имела много недвижимости. Но мы обанкротились и потеряли все имущество.

4. В отличие от частного бизнеса, партнерство получает льготы по налогообложению.

5. Неограниченная юридическая ответственность значит, что каждый партнер будет отвечать за долги в случае банкротства.

6. Они вложили свои деньги в партнерство.

7. Перед тем как организовать партнерство, хорошо все обдумайте, т.к. очень часто между партнерами возникают разногласия.

8. Управлять бизнесом оказалось трудной задачей, и они потерпели неудачу.

9. Секретный партнер не известен в компании, но имеет власть в управлении.

10. Мои друзья занялись бизнесом, организовав партнерство, и быстро достигли хорошего результата.

EXERCISES ON THE TEXT

1. Agree or disagree. Correct the false statement.

1. A partnership is an association of two or more persons to carry on a business for profit.

2. General partners are the owners who have limited liability.

3. A silent partner has authority in management.

4. A secret partner takes in management.

5. Partnerships usually never get benefits from the government.

6. The unlimited liability is the advantage of partnership.

2. Discuss advantages and disadvantages of partnership (make a table)

3. Compare two types of proprietorship. Discuss their advantages and disadvantages. Use the following words and phrases:

while, both…and, to the contrast in comparison with in spite of the fact	on the one hand on the other hand though nevertheless however
Sole proprietorship	Partnership

4. Make up a dialogue on the given situation

Situation: One of you is a member of a partnership; you friend is going to take part in some business, you are trying to explain him, that partnership is a suitable business for him.

5. Answer the questions:

1. What type of partner would you like to be?

2. What is the difference between a general partner, a limited partner, a silent partner and a secret partner?

3. What is a limited partnership?

4. What business can have a form of partnership?