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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

I. Change the following sentences into negative and interrogative. Give short affirmative and negative answers

1. A business may be privately owned in three different forms.

2. A public corporation managing a monopoly might do so in a sectional interest.

3. He must have invested all his money into his business.

4. More capital can be raised by bringing in partners or by incorporating.

5. The firm has to pay 1050 in corporation tax on the balancing charge.

6. The government had to negotiate with terrorists to save the lives of hostages.

7. The sums involved in pricing water must take an annual dividend into account.

8. You'll have to share your dividends with your younger brother.

9. Your partner has to guess the name of the product.

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