IV. Language

Exercise 8. Find in the text and put down English equivalents to the following word combinations:

З правової точки зору; власний капітал; знання місцевих законів; головний партнер; додаткові джерела; діяти від імені цілого партнерства; малий бізнес; бути відповідальним за всі борги; складати письмову угоду; необмежена відповідальність; повільний ріст бізнесу.

Exercise 9. Fill in the blanks with appropriate words:

1. A … invests his or her own capital and personal assets to start a business.

(customer, shareholder, sole proprietor)

2. Individual proprietorship is flexible, because the sole proprietor himself/herself holds all the … .

(royalty payments; authority; subscription)

3. The … is a legal document, and its contents are regulated by law.

(corporate tax, Statute, stock)

4. Senior partners have unlimited personal … in partnership.

(failure; loans; liability)

5. In partnership the … make a written agreement.

(franchisee, owners, co-owners)

6. A sole proprietor decides what he or she will do to achieve the objective of any business - … .

(failure, profit, shares)

Exercise 10. Make up the possible word combinations out of the following and translate them:

1. to get 2. to achieve 3. to require 4. to raise 5. to pool 6. to pay 7. to cease 8. to get rid of

a. money b. corporate tax c. a partner d. the objective e. to exist f. the capital g. property h. a loan

V Comprehension

Exercise 11. Tell whether each statement below is true (T) or false (F), according to what you have read in the text. Correct the false statements. Use the following phrases:

Agreement: I agree with you; You are right; Certainly; Exactly so ; I fully support you

Disagreement: I can’t agree with you; I am afraid you are mistaken; Not quite so; This is not true; I disagree with the statement that…

1. At least two partners are needed to start a sole proprietorship.

2. A sole proprietor only requires the investment capital and knowledge of local laws to start his or her business.

3. It is the sole proprietor alone who decides what to do to achieve profits in his or her busi­ness.

4. Sole proprietorships are very inflexible.

5. It is easy to raise money for sole proprietorships and they grow quickly.

6. Partnerships may have an unlimited number of partners.

7. Partners may be liable for all the debts of their business.

8. Partnerships do not need any legal documents in order to set up business.

9. Every partner can speak and act for the entire partnership.

10. In case of bankruptcy of a partnership, those partners who invested less capital suffer more.

Exercise 12. Answer the questions:

1. What are the simplest ways of organizing a business?

2. How many partners can partnership have?

3. How can a person organize a sole proprietorship?

4. What are the advantages of a sole proprietorship?

5. What are advantages of a partnership?

6. Are there any disadvantages in a sole proprietorship? List them.

7. Are there any disadvantages in a partnership? List them.

8. What documents are needed to start a partnership?

9. Who has unlimited liability in a partnership?