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7. In pairs, prepare a short checklist of the questions that you would need to ask yourself before starting a business.

Example: How much money will I need?

8. Translate into English.

  1. Партнерство дуже просто заснувати.

  2. Чому все у цьому бізнесі поставлено на карту?

  3. Чи ви довіряєте своєму партнерові?

  4. Ви не мусите брати цього партнера.

  5. Ви не мусите ризикувати своїми активами.

  6. Вам слід з’ясувати, як буде розділено прибуток.

  7. Власники несуть відповідальність за сплату боргів, які вони мають (в які вони влізли).

  8. Угода чітко визначить, скільки ви вклали у партнерський бізнес.

  9. Компанія з обмеженою відповідальністю існує окремо від своїх власників.

10.Директорів призначають акціонери.

_____________

HaveyouevervisitedMcDonalds? Where? What’s your impression?

Text B

For many people in recent years an excellent alternative way of starting a business has been via a franchise – and many franchised businesses have flourished. You contract to run an outlet on behalf of the named organisation concerned. Certain things are prescribed for you but you still have considerable independence. You will be rewarded according to your success and you have the benefit of a national organisation supporting you with training, advertising, and so on.

Franchising is a business system in which a company (or franchisor) sells an individual (or franchisee) the right to operate a business using franchisor’s established system or format.

As part of the franchise agreement the franchisee pays an initial sum of money, a franchise fee or front end fee, to the franchisor and agrees to pay a royalty or management service fee for continuing advice and assistance, which is usually calculated as a percentage of annual turnover. The franchisee may also pay an advertising fee to contribute to the franchisor’s annual advertising and marketing costs. The franchisee also has to find the necessary capital to open the business.

              1. In pairs, decide if the points below refer to (a) franchisees or (b) franchisors.

They can easily get advice on how to deal with specific problems.

2.

They do not have to borrow large amounts of capital to expand.

3.

They must respect certain rules.

4.

They have to buy supplies from particular sources.

5.

They are responsible for national advertising.

6.

They can only sell certain products.

7.

They have to seek approval before selling the business.

8.

They provide regular reports on the level of sales.

9.

They can develop their business without having to deal with the problems of recruiting and managing personnel.

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