Semester 4, Lesson 3 (48)
FORMS OF BUSINESS OWNERSHIP
I. Read the following words
and word combinations and learn their meanings
by heart:
a partnership [`pRtnqSip]
партнерство, товариство; a corporation [,kLpq`reISn] корпорація; production [ргq`dAkSn] виробництво, distribution [,distri'bju:Sn] розподіл; sale [seil] продаж,
збут; goods [gudz] товар, вироби; a profit [`prOfit] прибуток; expenses [iks'pensis] витрати, proprietorship [prq'praiqtqSip] власність;
a stock sertificate [sq'tifikit] (or share [Seз])- акція; a stockholder - акціонер; governmental [,gAvqn'mentl] державний;
receipts [ri'si:ts] грошові
надходження; taxation [tqk'seiSn]
оподаткування; liability [laiq'biliti] боргове
зобов'язання, відповідальність; investment [in'vestmqnt] вкладання
капіталу, інвестиція, вклад,
II. Read and translate the text 7, ask questions to the underlined sentences:
TEXT 7 BUSINESS. FORMS OF BUSINESS
The word
"business" is used in many modern languages. In ancient times it meant trade for things people wanted.
Nowadays business is production, distribution and sale of goods or services to
get some profit.
Production
is making things, producing goods and creating services. Distribution is moving
things from the place of production (works or factory) to the market-place.
As for the
sale of goods and services, it is the exchange of a product or service for
money.
In any
business activity making a profit is the major aim. Profit is defined as the money that remains after paying all the
expenses in business.
In most
countries there are three forms of business. They are the sole proprietorship,
the partnership (both general and limited) and the corporations (publicly held
and close).
Each type of
business structure possesses certain advantages and disadvantages that must be
considered in deciding which form of business organization to select. Some of
these important attributes are: 1. Limited Liability; 2.Taxation; 3.
Formalities; 4.Financing; 5.Management; 6.Life of the Business.
7. Liquidity of Investment.
The sole proprietorship means to go into business for oneself. Everybody has the right to do it. All you need is ideas about the
business, some capital to begin with and knowledge of regulations of this
business. Sole proprietorships are the most numerous kind of business
organization. The reason for their popularity is that they are the easiest and
least costly to organize. Sole proprietors own all the profits of their
enterprises, and they are then
“own bosses". They don’t have to pay the special taxes placed on
corporations. Among sole proprietors are farmers, professional men, small
storekeepers and small manufacturers.
The
partnership is an association of two or more people involved in business. In
partnership it is important to have a written partnership agreement. Partners
share risks and responsibilities in a prearranged manner. There is no
difference between a sole proprietorship and a partnership in terms of owner
liability. It means that in both cases the owners are fully liable for debts.
If a business fails, its creditors have the right to recover their money from
any of the partners. Partners may disagree, causing management conflicts. Most
law, medical, accounting and audit firms are organized as partnerships.
The corporation
is a form of business organization created under a government charter. A
corporation charter is a kind of license issued by the state in which a
corporation is created. The corporation is the so-called "a legal
person", an institution to make a profit. Those, who operate a corporation
have stock certificates. The individuals who own such stock certificates (or
shares) are called stockholders. As a matter of fact, there are privately owned
business corporations and governmental ones.
III. Retell the text according to the following questions:
l. What did the
definition of business mean in ancient times? 2. What is the
modern definition of business? 3. What does production in
business mean? 4. What do we mean under distribution in business? 5 What is the sale of goods
and services? 6. What is the major aim in any business activity? 7. What is profit? 8. How many forms of business can you name? 9. What does a
sole proprietorship mean? 10. What do you need to begin your own business? 11. What is the difference between a sole proprietorship and the partnership?
12. What is a corporation? 13 .What kinds of corporation are there?
IV. Learn the following groups of:
a) synonyms:
Sale - trade - commerce,
production - manufacture, works - plant - mill, important - significant,
individual - person, agreement - contract, aim - goal - purpose, to own - to
possess, goods - merchandise - commodities, form - kind - type, stock
certificate - share, to need - to demand - to require, regulations - laws -
bills, major - main - chief, attribute - feature – characteristic, wage –
salary, to begin – to launch
b) antonyms:
Profit - losses, expenses -
revenues, exchange - sale, advantage - disadvantage, work- leisure,
governmental - private, legal - illegal, product - service.
V. Give
3 forms of the verbs:
To mean, to
select, to lose, to own,
to sue , to held, to cause, to share, to define, to set,
to choose, to tax, to raise, to rise, to arise, to arouse, to slit, to sit
VI. Make up a few sentences
with the verbs «to rise», «to raise», «to arise», «to arouse». Study the Note.
Note: Rise (rose, risen) and arise (arose, arisen) are irregular
and intransitive, i.e. they never have a direct object. Raise and arouse are regular and transitive — they are
usually followed by a direct object. Arouse is often used in the
figurative sense.
The cost of living continues to rise.
Use this money when the need arises.
He raised his offer to $ 500.
The proposal has aroused most discussion.
VII. Try to repeat a tongue twister several
times, as quickly as possible, without stumbling or mispronouncing
1. I saw
Esau kissing Kate. I saw Esau,
he saw me,
and she saw
I saw Esau.
2. I slit
the sheet, the sheet I slit,
and on the
slitted sheet I sit.
VIII. Translate into English:
1. Викладач
сказав, що в стародавні часи слово „бізнес" означало обмін речами, які
були необхідні людям.
2. Олег
повідомив, що слово „бізнес" вживається в багатьох сучасних мовах.
3. Виступаючий
сказав, що торгівля товарами і послугами - це обмін товару або послуги на
гроші.
4. Ми
знаємо, що у будь-якій підприємницькій діяльності основно
метою є одержання прибутку.
5. Оксана
розповіла нам, що кожен тип бізнесової структури має певні переваги і недоліки.
6. Я зрозумів, що одноосібне володіння означає ведення самостійного бізнесу.
7. Викладач розповів, що партнерство - це союз двох або більше людей, зайнятих
однією бізнесовою діяльністю.
8. Бізнесмен
пояснив, що прибуток - це гроші, які залишаються в бізнесі після сплати всіх
витрат.
9. Викладач
сказав, що розподіл - це рух товарів від місця виробництва до ринку.
10. Виступаючий
повідомив, що виробництво - це створення речей, виготовлення товарів і надання
послуг.
IX.
1. Read
and translate the text 8:
TEXT 8 ADVANTAGES
AND DISADVANTAGES
OF EACH FORM OF
BUSINESS OWNERSHIP
Choosing the right form of business
ownership is important because the form
of business ownership you choose will determine how your business is
organized, how the money that flows in and out of your business is
handled, and how your business is taxed.
Use this comparison of the four types of forms of business ownership to
help you choose the best form of business ownership for you when you're
starting a small business in Canada.
Form of
Business Ownership Choices
There are essentially four
forms of business ownership in Canada:
–
the sole proprietorship,
–
the partnership,
–
the corporation
–
and the cooperative.
Let's look at the two main
advantages and disadvantages of each of these forms of business ownership.
The Sole
Proprietorship
Advantages
–
Easiest form to set up.
–
Owner solely controls
the business.
Disadvantages
–
Unlimited liability.
–
Can be hard to raise
capital.
The
Partnership
Advantages
–
Shared risk.
–
Shared management.
Disadvantages
–
Risk of conflict between
partners.
–
Shared decision making.
The
Corporation
Advantages
–
Limited liability.
–
Easier to raise capital.
Disadvantages
–
Most expensive form of
business to set up.
–
Involves a lot of ongoing
paperwork.
The Cooperative
Advantages
–
Owned and controlled by its
members.
–
Limited liability.
Disadvantages
–
Decision making can be slow.
–
Risk of conflict between
members.
2. What one more form of a
business ownership is mentioned in this text?
3. What countries have the cooperative
form of a business ownership?
4. Retell
about main advantages and disadvantages of each of these forms of a business
ownership.
X. Read and translate the meanings
of the following
terms. Translate the sentences with
them.
Business - 1) is a line of
work; a profession; 2) is work as
opposed to leisure; 3) is commercial activities in general, such
as trading, buying and selling,
manufacturing, arranging deals; 4) is a person or group
of people making, distributing, buying or selling
goods or providing services: a firm or company;
5) is the level of commercial
activity; 6) is something that needs to be
discussed or dealt with.
1. Banking
has always been my business.
2. She always puts business before
pleasure. 3. We're in business to
make a profit. 4. The business started
100 years ago. 5. How is business?
6. If there is no more
business. I'll close the meeting.
Transaction - 1) is the act
of doing business or carrying
out a business deal; 2) is a piece
of business done.
1. The transaction of business was concluded
recently. 2. He hoped to make
a 5% profit on each transaction. 3. Banks are open
for the transaction
of business from 09.30 hr. to 15.30 from Mondays
to Fridays.
XI. Translate the following
extracts in written form:
TEXT 9
A. The greatest disadvantage of a sole proprietorship is unlimited liability
that each proprietor faces. Liability refers to legal obligations to pay for
debts or damages. Unlimited liability means, if a business fails,
the owner of the business must assume the debts and in some cases declare
personal bankruptcy. The second disadvantage is that a sole proprietorship
has limited capital. The money that a proprietor can raise is limited by the
amount of his or her savings and ability to borrow. Other disadvantages
may include lack of opportunities for employees, limitations of size and growth and lack of
management resources.
B. A corporation may issue and sell stock certificates. A person who owns a
stock certificate is called a stockholder. Shareholders are the owners of a
corporation and their shares of ownership are represented by stock
certificates. Owners hold shares and are responsible for the firm’s debts only
up to the limit of their investment. If a corporation goes out of business,
the shareholders lose what they have invested, but no more than that, it means
that a corporation has limited liability. When the corporate stockholders
die, their shares of stock are passed on their heirs.
C. A corporation is managed by the Board of Directors. A corporation
acts like a legal person. It has the right of an individual, it also has the
right to own properly, to buy and sell, the right to sue and be sued,
and it must pay taxes. A corporation can offer higher salaries
and thus attract talented managers and specialists. Profitable corporations pay
dividends to their shareholders. It is difficult and expensive to organize a
corporation. The privately owned
business corporation is one type of corporation. Educational, religious, charitable
institutions can also incorporate. Usually such corporations are
non-profitable and don’t issue stock.
XII. Make up your own sentences using such words and word-combinations:
to start one’s business, to
face with, salary, trade name, to pay taxes, profit and losses, knowledge of
regulations, to involve in business,
lack of, to raise capital
XIII.
Individual work. Prepare a presentation about forms of
business. Choose a country. Memorize certain keywords and use them during your
presentation
PRESENTATION
|
1.Starting the presentation |
Good morning/afternoot ladies and gentlemen. The topic of my presentation
today is…. What I’m going to talk
about… |
|
2.Why you are giving this
presentation |
The purpose of this presentation is… This is important because… My objective is to… |
|
3.Stating the main points |
The main points I will be talking about are… firstly,…. secondly,…. next, finally….we’re going to look at…. |
|
4.Introducingthe first point |
Let’s start/begin with… |
|
5.Showing graphics, slides
etc. |
I’d like to illustrate this by showing you… |
|
6.Moving on to the next
point |
Now let’s move on to… |
|
7.Giving new details |
I’d like to expand on this aspect/problem/point Would you like me to axpand on that? |
|
8.Changing to a different
topic |
I’d like to turn to something completely different. |
|
9.Referring to something
which is off the topic |
I’d like to digress here for a moment and just mention that… |
|
10. Reffering
back to an earlier point |
Let me go back to what I said earlier about. |
|
11.Summarizing or repeating
the main points |
I’d like tp recap the main points of my
presentation –
first I covered –
then we talked about –
finally we looked at I’d now
like to sum up the main points which were: |
|
12.Conclusion |
I’m going to conclude by... saying that/ inviting you to/ quoting… In conclusion, let me… leave me with this thought / invite you to… |
|
13. Questions |
Finally, I’ll be happy to answer your questions. Now, I’d like to invite any questions you may have. Do you have any questions? |