Файл: Н.П. Морозова Forms of business organization Формы организации предприятий (английский язык).pdf

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•The small business can give an individual a chance to gain experience, which the person may use later on a larger scale.

•Small businesses are particularly well suited for meeting specialized local needs.

•Artisans can provide individualized products for customers who have grown weary of mass-produced goods.

•Small businesses provide a service where knowing one’s customers is important.

•Sole proprietors are reassuring to customers who believe an individual who is accountable will do a good job.

Small businesses often grow into large ones, adding to the economic vitality of the nation. Small business advocates contend that 55 percent of American technical innovation comes from small-and medium-size businesses. Certainly, many of the creative innovators in the American computer industry, including those who built successful companies in what is now known as Silicon Valley, California, started out as “ tinkerers” working on hand-assembled machines in their garages. They have become part of American business lore. By any measurement, small businesses are an important part of the ferment, the creativity, and the competition that provide new strength to the American economy.

Of course, it is true that small businesses often fail. But in the United States “failure” of a small business venture does not carry with it the social stigma or opprobrium for the failed entrepreneur that it does in some countries. Often, failure of a small business venture turns out to be a valuable learning experience for the entrepreneur, who may be more successful the second or third time. Unsuccessful attempts to start a business become part of the larger process of sorting out the market and making it more efficient, according to small business experts.

SECTION 3. PARTNERSHIPS

2. Translate into Russian the following words and word combinations from the text:

1. one way to do so is …; 2. like individual ownership; 3. each partner; each act of any partner; 4. furthermore; 5. beyond that the business is not taxed; 6. most of the reporting that the government requires; 7. have greater profit potential than sole proprietorships; 8. all the others; the others must pay; 9. another major disadvantage; 10. nonetheless; 11. half as many partnerships as corporations.

3. Read the text:

Partnership

When a proprietor wants to expand business, one way to do so is to form a partnership, a business formed for profit by two or more coowners. The right and duties of a partnership are regulated by laws of the state where it is formed and by a legal agreement entered into by the co-owners. Usually an agreement specifies the amount of money each is investing and the duties each partner assumes. A partnership agreement also may provide for “a silent partner” two does not take part in management, but who invests money in the business.

The partnership has the advantage of pooling managerial talent. One partner may be qualified in production, another in marketing. The partnership, like individual ownership, is exempt from most of the reporting that the government requires of corporations. Furthermore, it has a favourable tax position when compared with the corporation. Federal taxes are paid by individual partners on their share of earnings : beyond that the business is not taxed.

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A major disadvantage of the partnership is that each member is liable for all the debts of a partnership: each act of any partner is legally binding upon all the others. If one partner takes a large amount of money from the business and squanders it, the others must pay the debt. Partnership suffer another major disadvantage: decision-making is shared. If partners have serious and constant disagreement, the business is bound to suffer.

Nonetheless, the partnership remains a vital part of the overall business economy. The Internal Revenue Service (служба внутренних доходов) reported that between 1972 and 1980, there were approximately half as many business partnerships as corporations.

обязанности; 4. правовое (юридическое) соглашение; 5. соглашение о создании товарищества; 6. вкладывать деньги в дело; 7. быть квалифицированным специалистом в производстве и маркетинге; 8. как индивидуальная собственность; 9. быть освобожденным от предоставления отчета; 10. более того; 11.

6. Answer the questions:

1. What is the way to expand business for a sole proprietor?

2.What does a partnership agreement specify?

3.What are the advantages of a partnership?

4.What are the disadvantages of a partnership?

5.What part do partnerships play in the US economy?

B

1. Words to be memorized: unlimited (англ.)

partnership – полное товарищество

general (амер.)

limited partnership – коммандитное товарищество. Товарищество с ограниченной ответственностью.

master limited partnership – акционерно – коммандитное товарищество.Открытое коммандитное товарищество.

articles of partnership – соглашение об учреждении товарищества

2. Translate into Russian the following words and word – combinations from the text:

1. in other words; 2. either at the expense of partnership’s property or private property; 3. shares can either be sold or distributed; 4. either in case of insolvency or resignation; 5. besides; 6. at least one general partner; 7. once the investment is gone; 8. however; 9. in order to provide a public record; 10. behind the partnership; 11. for example.

3. Read the text:

(I) Unlimited Partnership (англ.) General Partnership (амер.)

The main feature of unlimited partnerships is equal and collective responsibility for the property for all members of the partnership. In other words, creditors can be paid either at the expense of the partnership’s property or private property of the members. Besides, the agreement can not provide for the exception of property liability of any of the members before a third party. The property of the unlimited partnership is a joint property of its members.

The profit obtained is distributed proportionally to the share of participation in the property of the partnership. Concession of the share of participation can be made only will the consent of the members. The number of members of the partnership is not limited.

The unlimited (general) partnership can be disbanded either in case of insolvency or resignation of one of its members or by resolution of all participants. Unlimited partnerships are not subject to public report.

business that provides its owners with an interesting structure combination. There must be at least one general partner who has full liability, but there are also limited partners who have personal liability only to the extent of their investment in the partnership. Once the investment is gone their liability ends. These partners do, however, enjoy the benefit of the flow–through of income and losses. These types of partnerships are statutory creations and require that the articles of partnership be filed with some government agency in order

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to provide a public record of the limited liability of certain partners. One of the biggest mistakes some businesses make in extending credit to partnerships is failing to verify whose assents, and how many, really are behind the partnership. The list of partners may look impressive, but the extent of a wealthy partners’ investment may be only 5000 dollars, while your contract may be for 250,000 dollars.

Limited partners need to be careful that their actions do not cost them the protection of their limited partner status. For example, a limited partner who begins to assume management responsibilities creates an impression that does not accord with his or her status. So does a limited partner who allows his or her name to be used in the partnership name. Courts can impose general liability when limited partners allow to create these impressions.

(III) Master Limited Partnership

Master limited partnerships carry out business on the basis of a Charter and are to the registered. One or more full members (general partners) and shareholders as investors make a partnership. Shares can either be sold to or distributed among the investors or quoted on the stock exchange. Full members run the partnership and are liable by the partnership’s obligations. The shareholders run the risk of devaluation of their shares. A legal person can act as a full member. This master limited partnership bears characteristics both of a limited partnership and a public limited company.

4. Choose the correct answer:

A partner is …

a)any person who signs any kind of legal document.

b)a person or group of people who take part in a legal agreement or dispute.

c)one of two or more people who run a business.

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6. Give English equivalents to these words and word combinations. Make up your own sentences using them:

1. основная черта полного товарищества; 2. неограниченная и солидарная имущественная ответственность; 3. полученная прибыль; 4. другими словами; 5. личное имущество; 6. перед третьими лицами; 7. рисковать; 8. прибыль распределяется пропорционально; 9. доля участия в имуществе товарищества; 10. в случае банкротства; 11. подлежать публичной отчетности; 12. должен быть зарегистрирован; 13. кроме того; 14. на сумму

по управлению; 18. полные товарищи и акционеры как инвесторы; 19. руководить товариществом; 20. юридическое лицо может действовать как; 21. котироваться на фондовой бирже.

7.Answer the following questions:

(I)1. What is the main feature of an unlimited partnership?

1. In what way is the profit obtained distributed in the unlimited

partnership?

3.In what case can the unlimited partnership be disbanded?

(II)4. What is a limited partnership?

5.How many people does it take to form a limited partnership?

6.In what case can courts impose general liability on a limited

partner?

(III) 7. Why do master limited partnerships bear the features of the limited partnership and a public limited company?

8 .What is the advantage of a master limited partnership?

9.What feature is attractive for investors in a master limited partnerships?