English lessons for 10

th

-11

th

Forms (economy and business)

Lesson # 1 – A SOLE PROPRIETORSHIP

A business can be privately owned in three different forms: the sole proprietorship, the

partnership and the corporation. The sole proprietorship is the most common in many western

countries. For example, more than 80 per cent of all businesses in the United States are sole

proprietorships.

However, it is evident that sole proprietorships do not generate the greatest volume of

businesses. They account for only 16 per cent of all business volumes, for example, in America.

What kind of business is likely to be a sole proprietorship? First of all, service industries such as

laundromats, beauty shops, different repair shops, restaurants.

ACTIVE VOCABULARY

business

-

дело, предприятие

to own

-

владеть

sole proprietorship

-

частная собственность

partnership

-

партнерство

corporation

-

корпорация

volume

-

объем, количество

service industry

-

сфера обслуживания

to account for

-

объяснять, отчитываться

repair shop

-

мастерская

COMPREHENSION QUESTIONS

1.

What are three different ways that a business can be privately owned?

2.

What forms do most European countries have?

3.

What forms do the businesses in the Russian Federation have?

4.

Name some businesses that are likely to be sole proprietorships. Why do you think so?

5.

Name some businesses that are not likely to be sole proprietorships. Why do you think

so?

VOCABULARY PRACTICE

Exercise 1. Choose the necessary word and put it in the sentence

1. Small … are very often industries.

1.

volume

2. The … industries don’t produce material goods.

2.

business

3. More than 80 per cent of all business…is not from sole

proprietorships.

3.

service

4. Less than 20 per cent of European businesses are partnerships

or …

4.

privately

5. Sole proprietorships … only a small part of business volume.

5.

account for

6. Is this bank owned publicly or …?

6.

corporations

7. There are three … of business ownership.

7.

forms

VOCABULARY EXERCISES

Exercise 1. Transform the sentences according to the model

Model: I am thinking of starting mu own business.

I am thinking of opening a cafe.

1.

start a car-repair shop

2.

hire a book-keeper

3.

fire an employee

4.

consult a board of directors

5.

sell mu business

6.

do my books myself

7.

consult a lawyer

8.

fins a specialist

Exercise 2. Answer the questions

1.

Are you thinking of starting your own business?

2.

What business do you want to start?

3.

How do we call the business if you go into it alone?

4.

Who is going to make the decisions and control the profits in your business?

5.

Do you need a lawyer if you want to start a sole proprietorship?

6.

Why don’t you have to consult the partners in a sole proprietorship?

7.

How many employees are going to hire for your business? In what cases will you fire

them?

8.

What does it mean to have unlimited liability? Are you ready for it?

9.

What will you do, if your business fails?

10. What will you do to put policies into effect quickly?

11. What businesses have tax benefits in this country?

12. Can you do your books yourself?

13. Are you going to hire a book-keeper?

Lesson # 2 – PARTNERSHIPS

A partnership is an association of two or more persons to run a business for profit. When

the owners of the partnership have unlimited liability they are called general partners. If

partners have limited liability, they are “limited partners”. There may be a silent partner as

well – a person who is known to the public as a member of the firm but without authority in

management. The reverse of the silent partner is the secret partner – a person who takes

part in management but who is not known to the public.

Any business may have the form of the partnership, for example, in such professional fields

as medicine, law, accounting, insurance and stockbrokerage. Limited partnerships are a

common form of ownership in real estate, oil prospecting, consulting services, etc.

Partnerships have more advantages than sole proprietorships if one needs a big capital or

diversified management. Like sole proprietorship, they are easy to form and often get tax

benefits from the government.

Partnerships have certain disadvantages too. One is unlimited liability. It means that each

partner is responsible for all debts and is legally responsible for the whole business. Another

disadvantage is that partners may disagree with each other.

ACTIVE VOCABULARY

partnership

-

партнерство

to run a business

-

вести дело

profit

-

прибыль

general partner

-

общий партнер (несущий полную

юридическую ответственность за

дело)

limited partner

-

партнер с ограниченной

юридической ответственностью

silent partner

-

партнер без права голоса

secret partner

-

скрытый партнер (с правом

голоса, но неизвестный

общественности как партнер)

law

-

здесь означает юриспруденция

insurance

-

страхование

stockbrokerage

-

биржевое маклерство

real estate

-

недвижимость

oil prospecting

-

добыча нефти

consulting services

-

консультационные услуги

advantage

-

преимущество

disadvantage

-

недостаток

to be legally responsible

-

быть юридически ответственным

COMPREHENSION QUESTIONS

1.

What is the difference between a general partnership and a limited partnership?

2.

Is there any difference between a silent partner and a secret partner? What is this

difference?

3.

In what professional fields the partnerships can be found?

4.

In what businesses is the partnership a common form?

5.

What are the advantages of a partnership?

Discuss the advantage of a partnership. Would you prefer partnership or sole proprietorship

for a business? Give your reasons.

VOCABULARY PRACTICE

Exercise 1. Choose the necessary word and put it in the sentence

1.

Partnerships very often receive …

from the government.

1. secret partner

2.

Limited partnership is a common

form of ownership in …

2. unlimited liability

3.

Partnership have many …, one if that

they receive tax benefits from the

government.

3. real estate

4.

… are the partners with unlimited

liability.

4. general partners

5.

… has the authority in management

but he is not known to public.

5. advantage

6.

Secret partner takes part in …

6. profit

7.

General partners have …

7. capital

8.

One advantage of a partnership is

that it offers a multiple source of …

8. management

9.

A partnership can bring much … to

the partners.

9. tax benefits

VOCABULARY EXERCISES

Exercise 1. Transform the sentences according to the model.

Model: Susan is a woman. She does the books.

Susan is a woman who does the books.

1.

Partners are people. They have unlimited liability.

2.

This is my partner. He often runs a risk.

3.

He is a shop-assistant. He gets along with all the customers.

4.

Susan is a partner. She put a big amount of money into business.

5.

Jean is my friend She has the background of accounting.

6.

Barbara is my partner. She knows how to attract customers.

7.

Tom is a partner. He is good at selling.

8.

Jack is my friend. He is a secret partner of my business.

9.

Helen is my friend. She had supper with Jack in the restaurant.

Exercise 2. Answer the questions.

1.

What do you want to be busy with?

2.

Do you want to go into business alone or with a partner?

3.

With what partner do you get along well?

4.

Imagine you run a shop. What will you do to attract customers?

5.

Do you need to consult a lawyer, to make a right choice when starting the business?

6.

What is your background?

7.

Are you a careful or risky person?

8.

How can you combine the resources with your partner?

9.

What services and skills can you contribute in your business?

10. How will you distribute profits and losses in your partnership?

11. What kind of partner would you like to be: a general partner or a limited partner? Why

so?

Lesson # 3 – CORPORATIONS

A business corporation is an institution established for the purpose of making profit. It is

operated by individuals. Their shares of ownership are represented by stock certificates. A

person who owns a stock certificate is called a stock-holder.

There are several advantages of the corporate form of ownership. The first is the ability to

attract financials resources. The next advantage is that if the corporation attracts a large

amount of capital it can invest it in plants, equipment and research. The third advantage is

that a corporation can offer higher salaries and attract talented managers and specialists.

The privately owned business corporation is one type of corporation. There are some other

types too. Educational, religious, charitable institutions can also incorporate. Usually such

corporation does not issue stock and is nonprofit. If there is a profit, it is reinvested in the

institution rather than distributed to private stockholders.

In some western countries, cities, states, federal government and special agencies can

establish governmental corporations. A few examples of these governmental corporations

are state universities, state hospitals and city owned utilities. Governmental corporations

are non-profit as a rule and usually they do not issue stock certificates.

ACTIVE VOCABULARY

corporation

- корпорация

to establish

- учреждать

stock certificate

- акция

stockholder (shareholder)

- акционер, держатель акций

to attract financial resources

- привлекать финансовые ресурсы

to offer high salaries

- предлагать высокие зарплаты

to attract a large amount of capital

- привлекать большой капитал

educational, religious, charitable

institutions

- образовательные, религиозные,

благотворительные учреждения

to issue stock

- выпускать акции

nonprofit

- некоммерческие организации (без

цели получать прибыль)

to reinvest

- реинвестировать (вкладывать еще раз)

COMPREHENSION QUESTIONS

1.

Who can own a corporation?

2.

Is a corporation necessarily larger than a sole proprietorship?

3.

What are the main advantages of the corporate form of ownership?

4.

What are the main disadvantages of the corporate form of ownership?

5.

Do the corporations issue stock to a stockholder?

6.

What kind of corporations don’t issue the stock usually?

7.

What world-known corporations do you know?

8.

What types of business usually take the corporate form of ownership?

VOCABULARY PRACTICE

Exercise 1. Choose the necessary word and put it in the sentence

1.

What kind of … is better: buying stock

or buying real estate?

1. charitable

2.

To attract greater financial … the

company issues the stock.

2. stock

3.

A university can be … corporation.

3. resources

4.

The partners didn’t put the same …

into business.

4. institution

5.

The group of people from different

countries are going to … a

corporation.

5. investment

6.

The Red Cross is an international …

organization.

6. nonprofit

7.

I want to buy some … of IBM and

General Motors.

7. amount of capital

8.

An educational … usually reinvests all

its money.

8. to establish

VOCABULARY EXERCISES

Exercise 1. Transform the sentences according to the model.

Model: We are the company officers. We supervise daily management.

We, as the company officers, supervise daily management.

1.

My friends are the stockholders of IBM corporation. They hold annual meetings.

2.

These businessmen are the organizers of this corporation. They issue and sell stock in

exchange for investment capital.

3.

A corporation is the owner of the property. It has limited liability.

4.

Dick is a manager. He want to form a corporation.

5.

A corporate charter is a certificate of incorporation. A charter is granted by a state

officer.

6.

The stockholders are the owners of the corporation. They have final authority in

management of the company.

7.

The owners of the corporation are the stockholders. The owners of the corporation

must vote.

Exercise 2. Transform the sentences according to the model.

Model: We organized our corporation a year ago (to invest much money).

We have been investing much money since we organized our company.

1.

They became company officers (to supervise daily management).

2.

My friend bought the stock of the company five years ago (to make money).

3.

They received the corporate charter a month ago (to plan a meeting).

4.

We advertised the application last week (wait for reply).

5.

He became a member of the board of Directors (work hard).

6.

We elected a new Board of Directors last month (plan change).

Exercise 3. Answer the questions.

1.

In what corporation would you invest money?

2.

What legal procedure do you have to follow if you want to form a corporation?

3.

Who has the final authority and who supervises the daily management of a corporation?

4.

How often do the stockholders choose the company officers?

5.

The stockholders have unlimited liability, don’t they?

6.

In what way can a corporation act?

7.

What do you think about the possibilities of forming corporations in this country?

8.

In what spheres of industries is a corporate form of proprietorship the most beneficial in

this country?