I. Make a list of international words. Learn their correct pronunci­ation and meanings.

II. Give Russian equivalents to the following word combinations. Use a dictionary:

to be owned and operated by; to be entirely responsible for; to deplete all personal assets; to develop into a large-scale enterprise; in spite of the limitations; to be well adopted to; to be easy to form; to need diversified management; to get tax benefits; for the purpose of making profit; to reinvest a profit in; to distribute to.

III. In each of the following, select the word or phrase that best completes the statement or answers the question.

1) One advantage of the sole proprietorship form of business organization is that

a.it is easy to raise capital

b.it has unlimited liability

c.there is limited life of the business

d.there is no sharing of profit

2) The legal form of business organization that has only one owner is known as

a. a sole proprietorship

b. a partnership

с. a cooperative

d. a stock company

3) One advantage of the corporate form of business organization is that

a. the number of government regulations is small

b. there is unlimited liability

c. there is easy transfer of ownership

d. taxes are low

4) One disadvantage of the corporate form of business ownership is that

a. it has limited liability

b. it has unlimited existence

c. it requires a sharing of responsibility

d. it must comply with a number of government regulations

5) A corporation that sells stock to the public is known as a

a. private corporation

b. government corporation

c. nonprofit corporation

d. public corporation

6) A law firm might easily be organized as a

a. partnership

b. sole proprietorship

с cooperative

d. private corporation

7) Two partners operating a small amusement park with high-risk rides should consider changing their current partnership to a

a. sole proprietorship

b. limited partnership

c. private corporation

d. cooperative

8) If you have formed a small corporation, you can

a. sell stock to friends

b. list your stock with the New York Stock Exchange

c. borrow against your stock

d. none of these

9) The most common form of business organization for a small business is

a. the corporation

b. the cooperative

c. the sole proprietorship

d. the partnership

IV. Guess the forms of business according to their advantages and disadvantages.

I. This form has several advantages, such as: 1. Simplicity of organization, 2. Owner's freedom to make all decisions, 3. Owner's enjoyment of all profits, 4. Minimum legal restrictions, 5. Ease of discontinuance, 6. Tax advantages.

Among its disadvantages the following are usually mentioned: 1. Owner's possible lack of ability and experience, 2. Limited opportunity for employees, 3. Difficulty in raising capital, 4. Limited life of the firm, 5. Unlimited liability of proprietor.

II. Advantages of the …: 1. Limited liability, 2. Variety of skills, abilities, and ideas, 3. Easy transfer of ownership, 4. Ease of expansion, 5. Unlimited existence, 5. Applicability for both large and small firms.

Disadvantages of the …: 1. Government regulation, 2. Profit sharing, 3. Complexity and high cost, 4. Lack of freedom of action, 5. Taxes.

III. Advantages of the …: 1. Ease of organization, 2. Com­bined talents, judgment, and skills, 3. Larger capital available to the firm, 4. Maximization of personal interest in the firm, 5. Definite legal status of the firm, 6. Tax advantages.

Disadvantages of the …: 1. Unlimited liability, 2. Limi­ted life, 3. Divided authority, 4. Danger of disagreement.