I left England with £5 and now I'm a multi-millionaire!

A British woman who began a new life in Australia with just £5 in her pocket a few years ago has sold her business for a huge amount of money.

Cherry Haines, 39, who once worked as a market stallholder, made all of her fortune from marketing a new kind of make-up. She left England because there weren't many jobs, caught a flight to the other side of the world, and arrived without any qualifications. She only knew two people.

“The flight cost £1,500, which left me penniless. At first I stayed with a friend. Then I had a bit of luck. The friend gave me the name of Peter Maddox, an Australian businessman. I rang him and told him I was the best salesperson in England and that he should give me a job.” He liked her idea for a sort of make-up that stays on all day, so together they formed a company to market it. At first she was earning just $ 10,000 a year, but later she was getting a great deal of money every year. “Hard work means happiness to me,” she said. Her brother, Roger Haines, who is spending several weeks with her in Brisbane, said “She left school when she was 16. She had very little work experience. But she could sell a fridge to an Eskimo. Ambition has led to success”.

How much money did she have when she left England?

When did she leave England?

How much has she sold her business for?

Why did she leave England?

Did she have any qualifications?

Did she have many friends?

How much did she pay for her flight?

How much did she earn at first?

How much did she earn later?

How long is her brother staying with her?

What did he say about her work experience?

When did she leave school?

Did she have any work experience when she left school?

What was so special about her?

Text 4

A sole proprietorship

Vocabulary

financial rewards– денежное вознаграждение

to fail– потерпеть неудачу

challenging – манящий

sole proprietorship - единоличное владение

the partnership - товарищество

revenues - доходы

expenses – расходы

assets – имущество, фонды, активы

liabilities–(денежные)обязательства, пассивы

regulations– правила, инструкции

legal requirements– законные необходимые условия (требования)

under a rigid charter – строго по уставу

is legally liable for all debts– несет юридическую ответственность за долги

to raise capital - увеличивать, добывать капитал

leery – осторожный, осмотрительный

is pledged to repay– связан обещанием возвращать долги

to dissolve– ликвидировать

to terminate– прекратить деятельность

to file for bankruptcy– заявлять о несостоятельности

to cease business – прекращать бизнес

Many people find the potential independence and financial rewards that can come from owning a small business very appealing. For some, owning their own business has been a lifelong dream. Many people, however, hesitate to pursue this dream because they don’t think they have enough education, experience or money – or are simply afraid they might fail.

Whatever the reason, owning your own business may be one of the most challenging, satisfying, demanding and rewarding things you do in your life. However, there are real risks and difficulties in starting any new business.

While each business is different, there are some basic things every small business needs to succeed. Key among these is a good idea, hard work, knowledge combined with common sense and imagination, plus the willingness and determination to make an idea into reality.

The three traditional forms of business are the sole proprietorship, the partnership, and the corporation.

A sole proprietorship is business owned by an individual and often managed by that same individual. In other words, the revenues, expenses, assets and liabilities of the sole proprietorship are the revenues, expenses, assets, liabilities of the owner. A sole proprietorship is also referred to as single proprietorship, individual proprietorship, individual enterprise, and the one-person business.

A sole proprietorship is the oldest and the most common form of ownership. Some examples include small retail shops, doctors’ and lawyers’ practices and restaurants.

A sole proprietorship is the easiest form of business to organize. All one needs is some knowledge about business, start-up capital and knowledge of regulations. The only legal requirements for starting such a business are a municipal license to operate a business and a registration license to ensure that two firms do not use the same name. The organization costs for these licenses are minimal.

A sole proprietorship offers the owner freedom and flexibility in making decisions. Major policies can be changed according to the owner’s wishes because the firm does not operate under a rigid charter. Because there are no others to consult, the owner has absolute control over the use of the company’s resources. As mentioned earlier, the financial condition of the firm is the same as the financial condition of the owner. Because of this situation, the owner is legally liable for all debts of the company. If the assets of the firm cannot cover all the liabilities, the sole proprietor must pay these debts from his own pocket. Some proprietors try to protect themselves by selling assets such as their houses and automobiles to their spouses and relatives. A sole proprietorship may have difficulty in raising capital because lenders are leery of giving money to only one person who is pledged to repay.

A sole proprietorship can be dissolved as easily as it can be started. A sole proprietorship can terminate on the death of the owner, when a creditor files for bankruptcy, or when the owner ceases doing business.

WORD STUDY

Ex. 8. Match the words listed in the box with their Russian dictionary definitions.

partnership, revenue, charter, liabilities, license, expenses, assets , to dissolve, corporation, bankruptcy, retail shops, a sole proprietorship

1. Форма акционерного общества, объединение нескольких фирм _____________________

2. Любые поступления от продаж или из других источников (напр. доходы от

собственности, процентные доходы от владения акциями и т. п.) ____________________

3. Общая сумма долгов организации, возникших в результате экономических операций

отчетного периода; отражаются в правой стороне бухгалтерского баланса _____________

4. Форма владения, при которой все активы принадлежат одному владельцу____________

5. Разрешение на осуществление какой-либо деятельности ___________________________

6. Денежные траты при осуществлении экономической деятельности (напр., расходы на

производство продукции или услуг) ____________________________________________

7. Прекращать деятельность компании, товарищества и. п. __________________________

8. Форма предпринимательства, представляющая собой объединение двух или более лиц

(партнеров), совместно осуществляющих коммерческую деятельность ______________ 9. Часть бухгалтерского баланса (левая часть), отражающая материальные и

нематериальные ценности организации _________________________________________

10. Состояние невозможности выполнить обязательства, подтвержденное судом

____________________________

11. Документ, содержащий основные принципы деятельности предприятия _____________

12. Магазины розничной торговли ________________________________________________

Ex. 9. Translate the words and phrases given in brackets.

1. There are some (основные положения) every small business needs to succeed.

2. The(организационные расходы)forthese(лицензии)areminimal.

3. If the (активы) of the firm cannot (покрыть долговые обязательства), the sole proprietor

must (оплатить долги) from his own pocket.

4. A sole proprietorship (предоставляет владельцу) freedom and flexibility (при принятии

решений).

5. Because of this situation, the owner (несет юридическую ответственность за долги) of the

company.

6. A sole proprietorship (может быть ликвидировано) as easily as it can be started.

7. Key among the basic things is willingness and determination (сделать мечту реальностью).

8. Because there are no others to consult, the owner has absolute control (над пользованием

ресурсами компании).

Ex. 10. Group the following words into nine synonymous groups.

revenue to follow to terminate careful expenditures to obtain

general to dissolve money obligation popular personal to cease

leery liabilities expenses to receive common

costs to get individual profits suspicious

private income to pursue to chase debts

Ex. 11. Replace the words in italics by the synonyms from the text or Ex. 10.

1. owner may stop doing business

2. so people hesitate to chase the dream

3. difficulty in getting capital

4. A sole proprietorship is also referred to as private enterprise

5. lenders are careful of giving money

6. the owner is legally liable for all liabilities of the company

7. A sole proprietorship is the most popular form of ownership.

8. a proprietor needs an initial capital

9. to operate under a strict charter

10. The organization expenses for licenses are minimal.

11. A proprietorship has a limited life, being ceased on the death of the owner.

12. when a creditor files for failure

Ex. 12. Translate the sentences into Russian.

1. He is leaving the company to pursue his own business interests.

2. We are working together for a common purpose

3. He is deeply in debt.

4. They are liable to sack you if you start complaining about your salary.

5. He’s a hard-worker. He works without cease.

6. The business has liabilities of 2 million dollars.

7. In command economy selling and purchasing of land is under rigid government control.

8. He did his best in a chess tournament in order to obtain a reward.

9. A lot of companies will profit from the fall in interest rates.

10. My project failed.

11. Balance sheet is a statement that shows the financial position of a business enterprise at a

specified date.

12. He has enough flexibility to cope with the job.

COMPREHENSION

Ex. 13. Complete the ideas.

1. For some people owning their own business has been a lifelong dream. . . .

2. While each business is different, there are some basic things every small business needs to

succeed. . .

3. A sole proprietorship is the easiest form of business to organize . . .

4. A sole proprietorship is the oldest and the most common form of ownership . . .

5. A sole proprietorship can be dissolved as easily as it can be started . . .

6. The financial condition of the firm is the same as the financial condition of the owner. . .

Ex. 14. Say if these sentences are true or false. Correct the false ones.

1. Almost all people are ready to start their own business because they are self-confident and

are not afraid to fail.

2. You don’t need to have a good idea, any knowledge, experience, or common sense to start

your own business.

3. A sole proprietorship is the easiest form of business to organize.

4. The organization costs for obtaining registration and municipal licenses are very high.

5. A sole proprietor has absolute control over the use of the company’s resources.

6. A sole proprietorship is a contractual relationship between two or more persons carrying on a

joint business.

7. A proprietorship has an unlimited life, it can’t be terminated under any circumstances.

Ex. 15. Match the questions to their answers below.

1. Why do many people hesitate to start their own business?

2. What are the basic things every small business needs to succeed?

3. Why does the owner have absolute control over the use of the company’s resources?

4. How is a sole proprietorship also referred to?

5. What are the three traditional forms of business?

6. What happens if the assets of the firm cannot cover all the liabilities?

7. In what cases can sole proprietorship terminate?

8. What are legal requirements for starting a business?

9. Why is the owner legally liable for all debts of the company?

10. Why may a sole proprietorship have difficulty in obtaining capital?

A. They are the sole proprietorship, the partnership, and the corporation.

B. Because the financial condition of the firm is the same as the financial condition of the owner.

C. As single proprietorship, individual proprietorship, individual enterprise, and the one-person

business.

D. Because they don’t think they have enough education, experience or money.

E. On the death of the owner, when a creditor files for bankruptcy, or when the owner ceases

doing business.

F. Because lenders are leery of giving money to only one person who is pledged to repay.

G. The sole proprietor must pay these debts from his own pocket.

H. They are a good idea, hard work, knowledge combined with common sense and imagination,

plus the willingness and determination to make an idea into reality.

I. They are a municipal license and a registration license.

J. Because there are no others to consult.

Text 5