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6. Answer the questions:

  1. What are the three principal forms of business organization?

  2. What is a sole proprietorship?

  3. What are the main positive and negative features of a sole proprietorship?

  4. What is a partnership?

  5. What should partners have to be able to run their business?

  6. What is a corporation?

  7. Who are the owners of a corporation?

  8. Who oversees the major policies and decisions in a corporation?

7. Match the types of business organizations on the left with the definitions on the right1.

1. charity

a) an organization which is part of the state administration.

2. cooperative

b) a company whose shares are publicly available

3. enterprise

c) a company which owns another

4. government agency

d) a firm where shareholders’ liability is limited

5. holding company

e) a firm based in a tax heaven to avoid higher taxation

6. limited company

f) an organization to relieve poverty, advance religion or education, etc; benefits from some financial concessions.

7. minority interest

g) two or more partners working together for profit, without limited liability

8. multinational

h) a company owned by the state

9. nationalized company

i) a friendly association of people

10. offshore company

j) a firm, usually without commercial activity, created to be parent to other companies

11. parent company

k) a new commercial activity

12. partnership

l) a company whose shares are not publicly available

13. private company

m) firm owned by a parent company

14. public company

n) company in which another firm has less than a 50% of interest

15. society

o) an organization operating in several countries

16. subsidiary (affiliate)

p) a democratic firm owned by its workers.

8. Underline the odd word in each group1.

type of organization:

limited company

cooperative

donation

Example:

1.

public limited company:

investment

shareholders

donors

2.

money that people put in:

profit

donations

investment

3.

staff:

volunteers

employees

shareholders

4.

limited company:

board of governors

shares

profit

5.

charity:

donors

investors

surplus

6.

trust:

council of trustees

shares

board of governors