2. Cross out the unnecessary word.

1. Is he the man who he has got a white Porsche?

2. This is the restaurant where we ate there last Sunday.

3. This is the shop whose its alarm went off last night.

4. The flat where we stayed at was very small.

5. We rarely not go to the cinema.

6. “Do you like my new hat?” – “Yes, I do like.”

UNIT 2

Topic: Forms of Business

Grammar: Past Simple/Continuous – Present Perfect Simple /Continuous – The Definite Article

Vocabulary

sole trader – приватний підприємець

partnership – товариство

private limited company - закрита акціонерна компанія

public limited company - компанія відкритого типу

liability – відповідальність

assets – активи

to commence trade – починати торгівлю

legal entity – юридична особа

shareholder – юридична особа

beyond the amount – понад суму

third party – третя сторона

the Registrar of Companies - - реєстраційне бюро компаній

to compete – конкурувати

unincorporated – не корпоративне підприємство

Forms of business in the united kingdom

As the UK is a country where market economy was established centuries ago, it would be interesting to look at British forms of business organization. The UK economy is mixed, that means that there exist private and public sectors and the first being by far larger then the latter. Four major types of business represent the private sector: sole trader, partnership, limited company and unlimited company. Limited companies in turn can be private limited and public limited. The public sector consists of nationalized companies. Let us review all of these forms in greater detail to identify their main features, advantages and disadvantages. The classification of business forms is illustrated by the following scheme:

Sole trader

The proprietor is the sole owner of a business and has full control of it. He is personally liable for all business debts, i.e. he carries an unlimited liability. This means that if his business fails, not only business assets are to be sold to cover outstanding debt, but also the owner’s personal property. It is easy to start a sole trader’s business at any time. As there are no legal formalities to complete before commencing trade.

Partnership

Partners jointly own a business and each partner is personally liable for the firm’s debt. If any of the partners have limited liability in a worse-case scenario they can lose only the capital they invested in the business. However, they cannot actively run the business and are therefore called “silent” partners. There are limitations to the number of partners: minimum of two and maximum of twenty.

Limited company

A limited company is the most common form of business. A limited company is a legal entity that is separate from shareholders and directors. The shareholders are not liable for the company’s debts beyond the amount remaining unpaid on the shares they hold or guaranteed to a third party. To register a firm as a limited company certain documents must be submitted to the Registrar of Companies who then issued a certificate of Incorporation. This certificate permits the company to start its operations. A limited company is managed by the Board of Directors elected at annual shareholders’ meetings.

Unlimited company

Unlimited companies are less common but sometimes they are useful entities which combine characteristics of both companies and unincorporated business (sole trader or partnership). There are certain businesses, regulated by professional bodies, which are required to be unlimited companies.

Nationalized company

Nationalized company are established by acts of parliament. Usually they are natural monopolies, although there are some exceptions, such as the British Broadcasting Corporation (BBC), which competes with independent radio and TV stations.

Exercise 1. Complete the following sentences.

1. The UK economy is mixed, that means that …..

2. Four major types of business represent the private sector: …..

3. The public sector consists of …..

4. The sole trader is personally liable for …..

5. It is easy to start a sole trader’s business as there are …..

6. Each partner is personally liable for …..

7. A limited company is …..

8. The shareholders are not liable for …..

9. To register a firm as a limited company …..

10. A limited company is managed …..

11. Unlimited companies are less common but sometimes they are …..

12. Nationalized companies are established by …..

Exercise 2. Agree or refute the following statements:

1. The UK economy is mixed.

2. Four major types of business represent the public sector.

3. The sole proprietor is not liable for all business debts.

4. It is easy to start a sole trader’s business at any time.

5. Partners jointly own a business and each partner is personally liable for the firm’s debt.

6. The shareholders of a limited company are liable for the company’s debts.

7. Nationalized companies are established by Acts of Parliament.

Exercise 3. The words in A are in the text. Match a word in A with a definition in B.

A	B
- sole trader	- a person who owns shares in a company
- shareholder	- responsibility
- liability	- to control a business, organization
- to run the business	- to give smth. to a person so that it may be considered or decided upon
- to compete	- to try to do or be better then someone else
- to submit	- a person who owns and runs a business and is the only person responsible for it

Exercise 4. Make up questions to the text and let your partner answer them.

Exercise 5. Translate the following sentences from Russian into English.

1. У Сполученому Королівстві ринкова економіка була введена багато років тому.

2. Приватний підприємець несе відповідальність за всі борги компанії.

3. Якщо бізнес потерпає невдачу, то мають бути продані не лише активи бізнесу, але і особиста власність власника.

4. Якщо деякі з учасників партнерського бізнесу володіють обмеженою відповідальністю, то у гіршому випадку вони можуть втратити лише капітал, який вони вклали в бізнес.

5. Найбільш типовою формою бізнесу є компанія з обмеженою відповідальністю.

6. Для того, щоб зареєструвати фірму як компанію з обмеженою відповідальністю, потрібно надати необхідні документи в Реєстраційне бюро компаній.

7. Компанією з обмеженою відповідальністю керує Рада Директорів, що обирається на щорічних зборах акціонерів.

8. Націоналізовані компанії є звичайними монополіями.

Exercise 6. Fill in the blanks with appropriate words.

About 50% of entrepreneurs start their _________ (1) in industries in which they have some __________ (2). People who come from families whose members were in business themselves are more likely to start their own __________ (3). In a large business the tasks of organizing and operating are done by many hired __________ (4). __________ (5) is a business owned by one person. All debts and all problems associated with the business belong to the __________ (6). ___________ (7) is a business organization that is owned by two or more persons. If the business were to fail, its __________ (8) would have the right to recover their money from any, or all, of the partners. Ownership of a corporation is represented by shares of stock, and for that reason corporate owners are known as ___________ (9).

experience creditors stockholders managers business companies a sole proprietorship a partnership owner

Exercise 7. Would you like to own your own business? Why? If so, would you prefer to buy an existing business or start from scratch? Explain.

1. What product or service would you like to provide?

2. What talents, interests, skills and abilities do you have which would make you successful in this business?

3. Where would you want to locate the business and for what reason?

4. What type of business organization would you prefer (sole proprietorship, partnership, corporation)? Explain your choice.

Exercise 8. Do you have the personal characteristics that might help you become a successful entrepreneur? Read each question on the Rating Scale. Place a check mark on the line above at the point where you believe successful entrepreneurs would rate themselves. Repeat the exercise for yourself by placing an ‘X’ closest to the answer that best describes you. The check mark need not be placed directly over one of the suggested answers if your rating lies somewhere between two answers. Be honest with yourself.

1. Are you a self-starter?

1. I do things my own way. Nobody needs to tell me to get going.

2. If someone keeps me started, I keep going all right.

3. Easy does it. I don’t put myself out until I have to.

2. How do you feel about other people?

1. I like people. I can get along with just anybody.

2. I have enough friends and I don’t need anybody else.

3. Most people bug (annoy) me.

2. Can you take responsibility?

a) I like to take charge and see things through.

b) I’ll take over if I have to, but I’d rather let someone else be responsible.

c) There’s always some eager beaver around (someone who is extremely enthusiastic and enjoys working extremely hard) waiting to show off. I say, let him.

2. How good an organizer are you?

a) I like to have a plan before I start. I’m usually the one who lines things up (prepares everything properly).

b) I do all right unless things get too complicated. Then I lose interest.

c) I just take things as they come.

2. How good a worker are you?

a) I can keep going as long as necessary. I don’t mind working hard.

b) I’ll work hard for a time, but when I’ve had enough, that’s it.

c) I can’t see that hard work gets you anywhere.

2. Can you make decisions?

a) I can make my own mind in a hurry if necessary, and my decision is usually O.K.

b) I can if I have plenty of time. If I have to make up my mind fast, I usually regret it.

c) I don’t like to be the one decides things. I’d probably blow it (not to care about it).

2. Can you stick with it?

a) If I make up my mind to do something, I don’t let anything stop me.

b) I usually finish what I start.

c) It a job doesn’t go right, I turn off. Why beat my brains out?

2. Can you keep records?

a) Since they are needed I’ll keep records even though I don’t want to.

b) I can, but it’s more important to get the work out than to shuffle numbers

c) I would rather hire someone to keep records for me.

Exercise 9. Speak on different forms of business in the United Kingdom.