Reading Comprehension

Good writers lead the reader along so that the reader will be convinced by their logical presentation. A good reader should think about what is coming next. He should be able to anticipate (guess) the information which a writer will present in his next sentence. If the reader is prepared for what the writer is about to say, then it will be easier for the reader to pay attention to the passage and remember what he has read. As in listening, certain words serve to indicate what is coming next. For example, if the first sentence in a paragraph says, "Entrepreneurship involves (includes) several important activities ...," you should expect that the author will explain what those activities are in the next sentences.

F: Comprehension questions

Read the following questions and think about them as you read Paragraph 7. Try to anticipate what the author is about to say. Then answer the questions about entrepreneurship.

1. How does the entrepreneur initiate business?

2. How does he manage the business?

3. How many activities of entrepreneurship does the author mention?

4. What did you expect Paragraph 8 to explain?

G: Anticipating information

Anticipate what you would expect to find following these sentences and list this information after each one.

1. When a company goes bankrupt, it causes problems for many people.

2. But the entrepreneur takes the biggest risk of all.

3. If he is skillful and lucky, he will make a good profit.

Vocabulary Review: Rephrasing

Rewrite the following sentences. Replace the words in italics with expressions from the text which have the same meaning.

H: Rephrasing expressions

1. Everyone connected with a business takes a chance.

2. When a company defaults on its debts, it causes problems for many people.

3. Workers may have to seek employment elsewhere.

4. The owner of the business takes the greatest risk.

5. People to whom the company owes money may lose.

Writing

I: Writing a paragraph

Write a paragraph about the four basic factors of business. Your first sentence should be a topic sentence. It should state what the four basic factors are. Then you should write two sentences about each of the factors. You should discuss the factors in the same order in which they were presented in the lesson. However, do not copy exactly from the lesson.

Oral Practice

Debate

Resolved: Business being essential for all economies, any society that does not put the needs of business first cannot be successful. (Present the argu­ments for and against this statement. These should be oral presentations which have been assigned, researched, and prepared in outline form in advance of the actual debate.)

Glossary for Lesson One

Basic Factors in Business

Accounting: a system of recording and summarizing business and financial transactions and analyzing, verifying, and reporting the results.

You did not receive the proper payment due to an accounting error.

Agriculture: farming, raising livestock, producing crops. Agriculture is an important industry in California.

Bankrupt: unable to pay one's debts and legally freed from the responsibility of paying them.

After suffering losses for years, the business finally went bankrupt.

Bond: an interest-bearing certificate of public or private indebtedness.

Both the government and utility companies borrow money by issuing bonds.

Capital: money or property and equipment used for production.

The company can raise capital by issuing new stock.

The company has made capital improvements by purchasing new machinery and equipment.

Creditor: one to whom the business owes money.