Vocabulary

advance	видавати завдаток
bad debts	безнадійні борги
become payable	стає кредиторською заборгованістю
claim sth. back	вимагати
Customs and Excise Department	Митне і Акціозне Управління
due	підлягає сплаті
go over the accounts	перевіряти фінансовий звіт
immaculate	бездоганний; безпомилковий
input	затрати
invoice	виписувати рахунок-фактуру
irrespective of	незалежно від
offset	компенсувати, відшкодовувати
owe	бути в боргу
pending payment	неповна оплата
record keeping	бухгалтерія
tax return	податкова декларація
VAT(Value Added Tax)	ПДВ(податок на добавлену вартість)

Task 10. Put up right words into sentences.

1. It will soon be the end of the financial year, and Coopers’ VAT r……….n is due.

2. The Accounts Manager, Elaine, has kept i……….e records.

3. However, the figures are not looking good, so Elaine and Eric, Coopers’ Managing Director, are g………g o………r the accounts.

4. Eric is rather concerned to note that Coopers o……..s more VAT than c………g back.

5. Elaine explains that the VAT becomes payable to Customs and E………e the instant Coopers r……….s an invoice.

Commercial law

Commercial law (also known as business law, which covers also corporate law) is the body of law that governs business and commercial transactions. It is often considered to be a branch of civil law and deals with issues of both private law and public law.

Commercial law includes within its compass such titles as principal and agent; carriage by land and sea; merchant shipping; guarantee; marine, fire, life, and accident insurance; bills of exchange and partnership. It can also be understood to regulate corporate contracts, hiring practices, and the manufacture and sales of consumer goods. Many countries have adopted civil codes that contain comprehensive statements of their commercial law. In the United States, commercial law is the province of both the United States Congress, under its power to regulate interstate commerce, and the states, under their police power. Efforts have been made to create a unified body of commercial law in the United States; the most successful of these attempts has resulted in the general adoption of the Uniform Commercial Code, which has been adopted in all 50 states (with some modification by state legislatures), the District of Columbia, and the U.S. territories.

Various regulatory schemes control how commerce is conducted, particularly vis-a-vis employees and customers. Privacy laws, safety laws (e.g., the Occupational Safety and Health Act in the United States), and food and drug laws are some examples.

What is Business Law?

Broadly speaking, business law refers to the laws that apply to business entities, such as partnerships and corporations. For the moment, QuizLaw has focused on the laws relating to setting up and creating such a business.

What type of business should I set up?

The four basic choices you have for how to organize your business are:

1. Sole proprietorships.

What is the easiest and cheapest type of business to setup?

The easiest and cheapest type of business to set up is a sole proprietorship. There are very few complications or formalities that you need to worry about following and the associated fees are fairly low. Partnerships are only slightly more complicated and expensive, but still relatively easy for anyone to setup. Corporations and LLCs take considerable more time and expense to setup, but are worth it if you need limited liability or are going to need significant investment/start-up funding.

2. Partnerships.

3. Corporations.

4. Limited liability companies (LLCs).

There is obviously a lot that goes into your decision based on the pros and cons of each business type as well as the circumstances of your particular situation. In addition, you may want to meet with an attorney and/or a tax professional, as the legal and financial ramifications of each business entity may ultimately dictate which way you go.

For many people, the best initial choice is a sole proprietorship or a partnership, because these are relatively cheap and easy to setup, and they are also relatively easy to maintain. But if business liability is a concern, a corporation or limited liability company may be more attractive to you, as they generally provide you with more protection against personal liability.