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Churkina_Angliyska_mova_2006_chastina_1.doc
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I. Make up situations of your own using the given words and word combinations

1. Three different forms of business (advantages; basic forms; common; corporation; disadvantages; form; partnership; simplest; sole proprietorship; western countries).

2. Starting a proprietorship (account for; advantages; business; consider; easy; going out of; legal; limited; organization; procedures; registering; required; right form; service industries; simplicity; volume of business).

3. Unlimited liability (association; avoid; business; carry on; claim; complex; creditors; debts; different; forms; liable; limited; loans; major; organization; organizational; partnership; profit; proprietorship; savings; source; unlimited liability).

4. Partners (authority in management; bear the liabilities; day-to-day; general partners; limited partners; management; member; public; put up; reverse; run the business; secret partner; share; silent partner; stockholders; voice).

5. A limited partnership (accounting; advantages; debts; disadvantages; disagree; diversified management; form; incorporate; insurance; law; legal; legally; medical; medicine; oil prospecting; organization; ownership; professional fields; quarrying industries; real estate; responsible for; stockbrokerage; superpartnerships; tax benefits).

6. A business corporation (ability; advantage; amount; attract; equipment; financial; higher salaries; individuals; institution; invest; making profit; managers; ownership; purpose; research; resources; shares; specialists; stock certificates; stockholder; talented).

7. Educational, religious, charitable institutions can also incorporate (certificates; city owned utilities; establish; governmental corporations; hospitals; institution; issue; non-profit; private; profit; reinvested; state universities; stockholders; stocks).

II. Complete the open dialogue and learn it by heart

K.

J.

I am of the same opinion. A business may be privately owned in three different forms.

K.

J.

As far as I remember, these forms are a sole proprietorship, a partnership and a corporation.

K.

J.

I believe that of the three basic forms, the proprietorship is the simplest and the most common form in many western countries.

K.

J.

I don't think so. Simplicity has its advantages but it is not the only thing to consider when choosing the right form of business organization.

K.

J.

I fully agree with you. But it is evident that sole proprietorships do not do the greatest volume of business.

K.

J.

As I see it the source of capital for a proprietorship is usually the owner’s own savings and loans from banks.

K.

J.

On the contrary, if a proprietorship fails, creditors can claim the owner’s property to pay off the debts of the business.

K.

J.

Generally speaking to avoid the problem of unlimited liability a special form of organization known as the limited partnership is used.

K.

J.

As far as I know a partnership is an association of two or more persons to carry on a business for profit.

K.

J.

As far as I am concerned starting a partnership is less complex than starting a corporation, but somewhat more so than starting a proprietorship.

K.

J.

In any case partnerships have more advantages than sole proprietorships. Like sole proprietorships they are easy to form and often get tax benefits from the government.

K.

J.

As a rule partnerships have certain disadvantages too, so each partner is responsible for all debts and is legally responsible for the whole business.

K.

J.

I am declined to think that the advantages of the corporate form of ownership are the following: the ability to attract financial resources which can be invested in plants, equipment and research.

K.

J.

I can’t agree with you, the third advantage is that a corporation can offer higher salaries and thus attract talented managers and specialists.

GRAMMAR EXERCISES

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