Reading types of proprietorship

Proprietary for the means of production is the most important question in economic relations. The proprietor of the means of production owns and uses them in order to organize production and derive a profit.

There have existed many forms of proprietorship in the history of civilizations.

In the 19 century the main proprietor was a capitalist entrepreneur, while the 20^th century saw different types of group proprietorship. The typical form of the group proprietorship is a joint – stock company. Along with the group proprietorship there exists private one. A business may be privately owned in different forms. These forms are the sole proprietorship, the partnership and the corporation.

The sole proprietorship is the most common in many western countries. Sole proprietors (or individual proprietors-Am.) are individuals carrying out economic operations in various spheres of business activities (industrial, trade, transport, banking etc.) and concluding commercial deals on their own behalf. The legal form is not indicated in the name of the firm. The hired staff is not referred to as proprietors. The proprietors must carry out business activities and keep the books reflecting the results of the latter. The contents of the books are a commercial secret not accessible to a third party. In case of a lawsuit the books can be open for the court provided the proprietor acts either as a plaintiff or a defendant. Also, the books can be made public in case of either insolvency or inheritance.

Sole proprietors are not subject to public report. Therefore it is not possible to get true information of their activities. The sole proprietor is not a legal person and is fully liable with his property by the obligations of his firm. Millions of sole proprietors in the world carry out business activities mainly in the sphere of various services and retail trade (laundromats, beauty shops, different repair shops, restaurants and so on). But it is evident that sole proprietorships do not do the greatest volume of business.

In the economy of the late 20^th century the role of state proprietorship is also of great importance. In western countries it mainly includes large industrial enterprises, banks and industries which serve the production and social spheres – transport, energy generation, means of communication and so on. The appearance of state-owned enterprises is caused in part by the desire of state to speed up the scientific-technical revolution. For example, nuclear power industries in the USA, Great Britain, France were created as state-owned. The character of state-owned proprietorship largely depends on the social forces influencing state power (monopolies or non-monopolized bourgeoisie, bureaucracy or the public).

Comprehension check

I. Was the text difficult or easy to understand? Did you learn anything new about business? If you are a businessman, what type of ownership will you prefer?

II. Answer the following questions.

1. Why, do you think, the question “Who owns the means of production? ” is important in economic relations?

2. What types of proprietorship do you know?

3. What type of private proprietorship is widely spread in western countries?

4. Does the name of a sole business have the name of its owner?

5. In what cases can the books of the firm be made public?

6. Sole proprietorships do the greatest volume of business, don’t they?

7. In which spheres of business do sole proprietorship normally work?

8. What is a sole proprietorship?

9. Nuclear power industry in France is privately owned, isn’t it?

III. Complete the sentences.

1. Different social forces as … act upon state power.

2. Individuals … operations in different …

3. A third party cannot freely get an access to …

4. The proprietors must keep the books reflecting …

5. The books are secret unless the owner acts as … in the court.

6. A joint-stock company is a form of …

7. Usually the service industry like transport is …

8. The desire of state to speed up … results in …

IV. Translate into English.

1. Чтобы разобраться в отношениях собственности, следует выяснить вопросы: кому принадлежат средства производства и произведенные продукты? Кто владеет, кто пользуется, и кто распоряжается ими?

2. В 20 веке получили развитие различные виды групповой собственности.

3. В середине 80-х годов 20 века в США было около 3 млн. корпораций.

4. Индивидуальная частная собственность представлена главным образом в сельском хозяйстве, религии, торговле, сфере услуг.

5. Мелкие хозяйства основаны на личном труде производителя и его семьи.

6. В индивидуальной частной собственности находится также значительное число мелких и средних фирм, использующих наемный труд.

7. В современном мире частная собственность играет большую роль: она стимулирует инициативу и предприимчивость, ответственное отношение к труду.

8. В бывшем СССР, странах Восточной Европы, некоторых странах Азии государственная собственность в результате социальных революций начала и середины 20 века стала господствующей.

9. В начале 90-х годов в нашей стране, в странах Восточной Европы начался процесс денационализации и приватизации государственных предприятий.

10. В ряде стран существуют также коллективные (“народные“) предприятия, перешедшие в собственность коллектива. Трудовой коллектив, будучи собственником, участвует в управлении производством.

Word power

I. Give English equivalents for the following words and phrases from the text.

Право собственности, получать прибыль, групповая собственность, индивидуальное предпринимательство, заключить сделку, получить лицензию, судебный иск, истец, ответчик, отвечать по обязательствам, розничная торговля, государственная собственность, частично, ускорить, немонополизированная буржуазия.

II. Match synonyms in columns A and B.

A. B.

proprietorship to perform

company transaction

to carry out to possess

evident to act upon

to own firm

deal private

mainly ownership

liable responsible

to influence obvious

public largely

III. What words can go after these verbs? Make up as many phrases as you can. Use some of them in your own sentences.

to derive, to carry out, to conclude, to hire, to own, to open, to speed up, to create.

Grammar Revision

Translate the following sentences into Russian paying attention to the modal verbs.

1. You have a good business grasp. You should absolutely start your own business.

2. The newspapers were to announce who the buyer was a few days later.

3. The government had to introduce this law to curb unemployment.

4. To economize on the electricity they have to reduce the working hours.

5. We don’t know when they are to complete the construction of a new plant.

6. We may be told that the world economy is in the doldrums.

7. To my mind such purchases cannot be done yet as the project has not been realized yet.

8. They will be able to increase production if they install equipment of a new type.

9. Do you think that women ought to get the same pay as men?

10. Any person who has the capital, the time and the experience can start any business he or she chooses.

11. The proprietor must do enough planning not to be a failure.

Quick Reading

Read the text quickly (3 min). Name the factors one needs to consider when he or she wants to start his or her business.

Ask your friend some questions to find out if he or she suits to be an entrepreneur.