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Self-control

What does business do?

Business is a difficult thing . It has many important elements: money, taxes, customers, transport, banks.

Why do people do business?

Why do they like small business?

People do business, provide services, buy and sell goods for a profit. There is no business without a profit. What business is good? All businesses are good. Production of goods is profitable, different services: for example, at hotels, motels, are profitable, too.

Communications are good business, too. For example, telephone and mail services. Financial services, for example, banking and insurance, work very well, too.

So, people do different businesses for a profit. They do what they like to do. For example, many families in America run small businesses now.

It is very popular to be a businessman or a businesswoman. Women like to do business: to run a firm, to be a bank manager, or a shop keeper.

It is a new and very interesting tendency in modern life.

UNIT 2. PARTNERSHIPS

A partnership is an association of two or more persons to carry on 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, quarrying industries, 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 carry on 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 - секретный партнер (с правом голоса, но неизвестный общественности как партнер)

law - зд. юриспруденция

insurance - страхование

stockbrokerage - биржевое маклерство

real estate - недвижимость

oil prospecting - добыча нефти

quarrying industries - добывающие промышленности

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 are the partnerships found?

4. In what businesses is the partnership a common form?

5. What are the advantages of a partnership?

6. Discuss the disadvantages of a partnership. Would you prefer partnership or sole proprietorship for business? Give your reasons.

Vocabulary Practice

Exercise. Select the necessary word in the sentence.

9. A partnership can bring much...

to the partners.

Dialogue

(Two friends Susan and Maurice; are having supper in a restaurant)

Active Vocabulary

to be busy with - заниматься чем-либо

to go into business - заниматься бизнесом

to get along well - ладить друг с другом

to attract customers - привлекать покупателей

to make a right choice - сделать правильный выбор

background - зд. рабочий опыт

accounting - бухгалтерский учет

to run a risk - рисковать

to be liable - нести юридическую ответственность

amount of money - сумма (количество) денег

to put an amount of money into business - вложить сумму денег в бизнес

to combine resources - комбинировать ресурсы

advantage - преимущество

to contribute services, skills - делать вклад, содействовать умениям и навыкам

to distribute profits and losses - распределить доходы и убытки

to share - делить

the subject becomes quite technical - это становится уже делом техники

deal - сделка

Exercise. Translate into English.

1. Члены правления имеют полную юридическую ответственность.

2. Партнер с ограниченной юридической ответственностью не имеет реальной власти.

3. Секретный партнер принимает участие в управлении, но он не известен общественности.

4. Я хочу вложить деньги в недвижимость.

5. Партнерство имеет много преимуществ.

6. Партнерство часто получает налоговые льготы от правительства.

7. Мы хорошо ладим с партнером.

8. Наше кафе привлекает все больше и больше клиентов.

9. Я сделал правильный выбор. Это дело приносит много прибыли.

10.Мой рабочий опыт связан с менеджментом.

11.0на хорошо разбирается в бухгалтерском деле.

12.Мы вкладываем в дело одинаковый капитал.

Self-control

Setting up a new business

To set up a new business you have to solve a number of problems. For example, where do you get your supplies from? What is the price you pay for them? What premises- do you work from? What type of control do you want to keep in your business? All this depends on the type of your work, because you may work as a sole trader, a partnership or a limited company.

To work as a sole trader means that you are personally responsible for the business and take all profits after paying income taxes, but you must remember one thing: you are also responsible for all business debts.

Partnership means a group of people (between two and twenty) working as one firm. They share responsibility for decision making, profits, and debts. Partnership is useful and effective when all partners have high professional skills.

A limited company (Ltd) is a company formed by two or more shareholders who put the money into the business and get a share of the profits. Here the financial responsibility (or liability) of the shareholders is limited. When the business goes bankrupt every shareholder loses his share.

So we can see that different types of business organizations have advantages (pluses) and disadvantages (minuses).

What business is better: small business or big business?

As we know there are two general types of business: small business on the one hand and big business on the other. Many people think that small business is more interesting than big business. At the same time they think it is more popular than the big one. Experience shows that small business is better for the people who own it, and big business is better for the employees who work in it. Why is it so? May be because in small business labour costs and overheads are less than in big business. So poor people can make more profit. But in big business richer people can spend money on all types of coats and stimulate workerswith higher wages. Only experience can help you to understand this difference and to know what you like more and what you like less. Sometimes the least profitable business may become the most interesting one.

UNIT 3. CORPORATION

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 financial resources. The next advantage is the corporation attracts a large amount of capital it can invest it in plants, equipment and research. And the third advantage is that a corporation can often higher salaries and thus 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.