Unit 1. Different forms of business Active Vocabulary

an individual business –индивидуальное частное предпринимательство (предприятие )

a sole proprietorship - индивидуальное частное предпринимательство (предприятие )

a general partnership –полное товарищество

a limited partnership –товарищество на вере (коммандитное товарищество)

a corporation –коммерческая корпорация

an alien corporation –сторонняя корпорация

to own -владеть

an owner -владелец

a certificate -свидетельство

to operate –управлять, действовать

a stockholder -акционер

a share-доля, акция

a board of directors – совет директоров

an interest –процентная ставка (процент, интерес)

a profit -прибыль

management -руководство

a charter-хартия, устав

taxation -налогообложение

TEXT

A business may be privately owned in three different forms. Business in the USA may be organized as one of the following forms:

• Individual business (a sole proprietorship);

• general partnership;

• limited partnership;

• corporation;

• alien corporation.

Individual business (a sole proprietorship) is owned by one person.

A general partnership has several owners. They all are liable for debts and they share in the profits. A limited partnership has at least one general owner and one or more other owners. They have a limited investment and a limited liability. A corporation is owned by people called stockholders. Stockholders usually have certificates showing the number of shares which they own. The stockholders elect a director or a board of directors to operate the corporation. Most corporations are owned by a few stockholders. Other corporations are owned by many stockholders who can buy and sell their shares. Usually they have little interest in management of the corporations.

Alien corporations are the corporations of foreign countries. All the corporations have to receive their charters from the state authorities. The charters contain all the powers of the corporation. Many corporations try to receive their charters from the- authorities, like the state of Delaware, though they operate in other states. They prefer the state of Delaware because the laws are liberal and the taxation is rather low. Such corporations, which receive their charters from an outside state, are called foreign corporations.

All the corporations require a certificate to do business in the stale where they prefer to operate.

Exercise 1. Questions on the text:

1. What forms of ownership are there in the USA?

2. What are different ways that business can be privately owned?

3. What kind of business is likely to be a sole proprietorship?

4. Who can be owners of a general partnership, a limited partnership, a corporation, an alien corporation?

5. Why do corporations prefer to receive their charters in the state of Delaware?

Exercise 2. Dialogue

John: Hi, Sara. How are you?

Sara: Fine, as usual, thank you, Nick. What about you?

Nick: I am OK. I am glad to see you.

Sara: So am I. Are you in a hurry?

Nick: No I'm not. We have some time to talk.

Sara: Good. Can you give me a piece of advice?

Nick: Well, I'll try if I can.

Sara: I am thinking of starting my own cafe business. I am good at cooking. Nick: It might be a good idea. Are you going into business by yourself?

Sara: Exactly. I'd like to have a cafe with my name on it, where I can make the decisions alone and where I can control the profits.

Nick: If you go into business alone it is called a sole proprietorship. There is no need to consult partners or a board of directors.

Sara: Yes. I can hire and fire a new employee. I can have my vacation when I want.

Nick: But you have a risk, don't you?

Sara: What do you mean?

Nick: The most important risk is that you have an unlimited liability. You are responsible for your business debts.

Sara: So, if the business fails I have to declare personal bankruptcy, do I? Nick: Yes, you do. You can loose your personal assets. You will not receive tax benefits a partnership or a corporation can also receive.

Sara: Thank you very much for your advice.

Exercise 3. Choose the necessary word and put it in the sentence

1. Small ...are very often service industries.

2. Less than 20 percent of European business is ...

3. .... is only a small part of ail business receipts.

4. Business may be privately owned in the forms, such as …

5. There is no need to … partners or a board of directors

(a sole proprietorship, a corporation, a partnership, businesses, a sole proprietorship, a limited partnership, a general partnership, consult).

Exercise 4. Give Russian equivalents to the following words:

A debt
A limited liability
A partnership
To elect
To operate
To sell
A foreign country
To contain
To hire
An advice
To fail
To loose

Exercise 5. Find the word

Across:

6. a____________ is owned by people

7. the ___________ of the corporation

8. ___________ corporations are the corporations of foreign countries

10. the ________ is rather low

Down:

1. and sell _________ shares

2. is owned by one ________

3. business in the ________ may be organized

4. the corporations of _______ countries

5. little __________ in management