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  1. Chose the phrase which best completes each statement. Sometimes more than one variant is possible.

  1. The state has maximum control over …

  1. partnerships

  2. corporations

  3. public limited companies

  4. private limited companies.

  1. It is enough to pay a license fee and follow the law if you want to start…

  1. limited partnership.

  2. sole proprietorship

  3. corporation

  4. public limited company.

  1. You have the greatest liability in case of …

  1. corporation.

  2. private limited company.

  3. sole proprietorship

  4. partnership.

  1. You are entitled to the highest per cent of profit in case of …

  1. limited partnership.

  2. sole proprietorship

  3. corporation

  4. public limited company.

  1. This type of business organization has to pay taxes twice ….

  1. sole proprietor.

  2. partnership.

  3. public limited company.

  4. corporation.

  1. The Partnership Agreement sets out …..

  1. the duration of the partnership.

  2. the way profits, losses and running costs are distributed.

  3. the amount of investment of each partner.

  4. the way the partnership is taxed.

  1. In a limited partnership the main investors are ….

  1. the general partners.

  2. the limited partners.

  3. the sleeping partners.

  1. If this type of a company intends to raise capital, it will sell its shares to the general public ….

  1. partnership.

  2. corporation.

  3. public limited company.

  4. private limited company.

  1. The shareholders in a corporation ….

  1. get profit from the business.

  2. participate in the management process.

  3. have liability for debts.

  4. do not pay personal income tax.

SPEAKING

Fill in the table writing out advantages and disadvantages of different types of company organization. Say, in what type of company you would like to work. Give reasoning using the table.

Advantages

Disadvantages

Corporation

Public limited company

Private limited company

Limited partnership

General partnership

Sole proprietor

Possible advantages:

  1. You have total control of your business.

  2. This is a good way of sharing responsibilities.

  3. The financial risks are restricted.

  4. You can increase your capital by selling shares.

Possible disadvantages

  1. There is a danger that conflicts of personality could ruin your business.

  2. You may not have enough knowledge in economics and law to run your business.

  3. It may be difficult to expand.

  4. It’s vital to expand your business in order to increase profits and enlarge everybody’s share and you’ll have to work more intensively

5. You may risk your own possessions if the company ruins.

ADDITIONAL READING