XI. Read the text and divide it into some meaningful parts giving the proper title to each of them which is better – to buy an existing firm or start

A NEW ONE?

This is one of the most important questions when the person decides to become engaged in a small business. It is known that there are advantages and disadvantages of both buying an existing firm and starting a new one. The advantages of buying an existing business are: a proven business, customers' goodwill, the established lines of supply and credit, trained employees, available physical facilities (equipment and premises) and so on.

Besides, there may be also disadvantages of buying an existing business, for example, the business is losing money, the available employees are not desirable, not very good location for business, the facilities are not completely suited to your business, the equipment may be old or in need of repair and so on.

Starting a new business also has advantages and disadvantages. Starting a new business also requires extensive investigation and analysis. There are factors that may by attractive to start a new business rather than to purchase an existing one. To such factors belong: you may choose the best location for your business, once it is the critical decision between success and failure in many businesses, physical facilities can be constructed to the business planned, you may hire employees you need.

But, nevertheless, there exist some disadvantages of starting a new business: it takes considerable time and expenditures, it is necessary to work up "bugs" (узкие места), to establish new lines of supply and sales. Thus, the entrepreneur has many decisions to make when he decides to become engaged in a small business.

XII. Write a summary of the text

Tip:

SPEAKING

XIII. Practice talking about the following situations

1. You decided to get into business. Choose the trend of business (manufacture, trade, service) and explain why.

1. Tell about benefits and difficulties in business.

2. Tell about the role of small business in economy.

3. Tell about characteristic features of small business enterprise.

4. How to make choice between starting up a new business and buyng an existing one.

SECTION 3.2. DIFFERENT TYPES OF BUSINESS: SOLE PROPRIETORSHIP AND PARTNERSHIP

KEY VOCABULARY

1. Read and remember the pronunciation the following words

enterprise [`entә'praɪz]

responsible [rIs'pɔnsәbl]

alternatively [әl't ә:nәtɪvlɪ]

numerous ['nju:mәres]

efficiency [e'fɪʃɪәnsɪ]

ownership ['әunәʃɪp]

incentive [In'sentɪv]

disadvantage [dɪsәd'va:ntɪʤ]

liability [laɪә'bɪlɪtɪ]

possession [pә'zeʃn]

involvement [ɪn'vɔlvmәnt]

since [sɪns]

entrepreneur [әntrәpre'nә:]

resources [rɪ'sɔ:sɪz]

security [sә'kjurɪtɪ]

prevalent ['pri:vәlәnt]

retailing [rɪ'teɪlɪɳ]

debt [det]

II. Read and translate the following groups of words

sole proprietor, joint stock company, cooperative society, public corporation, one-person business, decision-taker, extremely flexible, easy adjustment, market conditions, repair and maintenance work, personal services.

III. Remember the words given

ability – способность

acquire – приобретать

adjustment – приспособление

borrow – занимать

bear – нести

capable – способный

debt – долг

decision – решение

entrepreneur – предприниматель

enterprise – предприятие

event – случай, событие

failure – неудача

flexible – гибкий

Joint Stock Company – акционерная компания

liability – ответственность

loss – убыток, потеря

maintenance – эксплуатация

partnership – товарищество

possess – обладать

profit – доход

refer to – относиться; ссылаться

repair – ремонт

responsible – ответственный

restrict – ограничивать

retail – розничный

seize – захватывать

sole proprietor – единоличник собственник

since – поскольку; с

strength – сильная сторона; сила

ownership – собственность

success – успех

therefore – поэтому