Unit 38. Ownership Active Vocabulary

sole trade/sole proprietorship unlimited liability companies private limited companies (BrE) public limited companies dissolve legal restriction losses incur entirely file the permission if charter approved the number shares of stock certificates of ownership shareholder capacity	одноосібна власність компанія з необмеженою відповідальністю закрита акціонерна компанія відкрита компанія з обмеженою відповідальністю припинити діяльність підприємства юридичні обмеження збитки мати, зазнавати цілком звернутися за дозволом якщо статут схвалений кількість цінних паперів свідоцтво власності акціонер обсяг, об’єм
sole trade/sole proprietorship unlimited liability companies private limited companies (BrE) public limited companies dissolve legal restriction losses incur entirely file the permission if charter approved the number shares of stock certificates of ownership shareholder capacity	одноосібна власність компанія з необмеженою відповідальністю закрита акціонерна компанія відкрита компанія з обмеженою відповідальністю припинити діяльність підприємства юридичні обмеження збитки мати, зазнавати цілком звернутися за дозволом якщо статут схвалений кількість цінних паперів свідоцтво власності акціонер обсяг, об’єм

A business is an organization of material, human, financial, and information resources that are joined together for a specific purpose. There are several main kinds of business: sole trade/sole proprietorship, unlimited liability companies, limited liability company which subdivided into private limited companies/limited liability company and public limited companies, corporation.

Sole trade/ sole proprietorship is the most common form of business organization, it’s owned and run by one person.

The main advantage of a sole proprietorship is that the easiest form to start and run. In the event that the owner wants to dissolve the business, a sole proprietorship is as easily dissolved as it is formed.

Sole proprietorship owns all the profits of their enterprises and free to make whatever changes they please. They have minimal legal restriction and not have to pay the special taxes placed on the different state establishment.

The major disadvantage of a sole proprietorship is the unlimited liability. Since the business and the owner are legally the same, the sole proprietor is liable for all financial losses or debts that the business may incur.

The owners of Unlimited liability companies are personally and entirely liable for the debts of the company. This means they may lose their personal assets (e.g.. their house or car) if the company is in financial difficulties.

Limited liability company/ Partnership is a business that is jointly owned by two or more people who have combined their talents and resources for the purpose of earning profit. Partners share their profits and losses and they are responsible for the management of the business and usually agree with each other before making major decision.

Business Corporation is an institution established for the purpose of making profit. It’s operated by individuals. People who would like to form a corporation must file the permission in the state government. If charter approved, the documents give permission to create a corporation is granted. The charter states should involve legal name, legal address, purpose of business. The number of shares of stock, or ownership parts of the firm are specified in the charter. These shares are certificates of ownership and are sold to investors called shareholders or stockholders. If the corporation is profitable it will eventually issue dividend or a check, representing a part of the corporate profits to shareholders. There are a lots of advantages of corporation: it can attracts a large amount of capital and can invest it in plants equipment and research. Corporations have great capacity for growth and expansion. But there are some disadvantages. It’s difficult and expensive to organize a corporation. There is also an extra tax on corporate profits.

Exercise 1. Give the English for:

компанія з обмеженою відповідальністю, компанія з необмеженою відповідальністю, власник, бути відповідальним за борги компанії, втрачати власне майно, фінансові труднощі, одноосібна власність, корпорація, товариство, закрита акціонерна компанія, акціонер, пропонувати акції, продавати акції на фондовій біржі.

Exercise 2. Match words from list A with words from list B that have a similar meaning:

A B

join sole proprietorship

purpose aim

sole trader propose

offer unite

organize stock

personal arrange

share individual

Exercise 3. Match the word with the correct definition from the list below:

sole proprietorship, unlimited company, shares (2), partnership, asset, debt, private limited company, limited liability company, stock exchange, shareholder, wealth;

1. a firm run by two or more partners;

2. a business owned by one person;

3. a company in which the owners are entirely liable for the debts of the company;

4. a company in which the owners are liable only for the amount of money they invested in the business;

5. a company that may not offer its shares for sale to the public;

6. a company whose shares can be bought and sold on the stock exchange;

7. money owed by one person or an organization to another;

8. an item of value belonging to a person or a company;

9. one of many portions into which a company’s capital is divided;

10. a market where stock and shares are bought and sold under fixed rules;

11. a person who owns shares in a company and, is, therefore, a member of the company;

12. owing a large amount of money, goods or property.

Exercise 4. Put an appropriate word in the sentences:

stock exchange, wealth, purpose, shareholders, sole trader, partners, shares, assets, debts, partnership, sole proprietorship.

1. The person operating a … … owns the business by his own way.

2. Formed by two or more persons, the … is considered a business entity. Each partner is responsible for the … .

3. All personal … of each partner are at risk if the business falls.

4. … receive dividends in proportion to the capital they invest.

5. Being a … … she works long hours in her hairdressing business.

6. The partnership collapsed as a result of the criminal activities of one of the … .

7. He has … in Great Britain.

8. He is a man of great … .

9. The … of going to school is to learn .

10. He workers as a computer operator at the New York … … .

Exercise 5. Answer the following questions:

1. Are all businesses owned and organized in the same way?

2. What is the simplest form of business ownership?

3. What are the owners liable for in unlimited liability companies?

4. What are the owners liable for in a limited liability company?

5. What are unlimited companies subdivided into?

6. What is the partnership?

7. What is the private limited company?

8. What is the Corporation? Its advantages and disadvantages?

Exercise 6. What is the difference between:

• sole proprietorship – partnership;

• partnership – corporation.

Exercise 7. Sum up what the texts says about:

• sole trader;

• partnership;

• corporation;

• unlimited liability company;

• limited liability company.