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

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2. Read the text:

In dealing with partnerships, the businesses should verify the authority of the signing partner (certain types of agreement require the signatures of all partners). It is also important to distinguish between contracts that partners enter into for the partnership and those that they enter into for personal use of benefit. Partners acting without authority or for personal reasons do not bind the partnership, and the assets of the partnership can not be attached for collection of the contract amount.

Partners themselves need to understand clearly what roles and authority they have in operating the partnership. If there are limitations on what and how much one partner can contract for, those limitations should be made clear both to the partners and those who do business with the partnership. For example, if a partner can sign for office supplies but not for new equipment, suppliers must be made aware of those limitation.

3. Find English equivalents to these words and words combination:

1) имея дело с …; 2) проверить полномочие; 3) требовать подписи всех партнеров; 4) различать контракты; 5) заключить договор (контракт); 6) партнеры, действующие без полномочий, или из личных соображений; 7) имущество (активы) товарищества; 8) в управлении товариществом; 9) ограничения

4. Answer the questions on the text:

1) What should one verify doing business with a partnership?

2)In what cases cannot the assets of a partnership be attached for collection of the contract amount?

3)Must suppliers be aware of the limitation of the partner’s authority?

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1. Do the written translation of the text using a dictionary. The time limit is 45 minutes:

liability because it can be created when the parties do not have a formal agreement to do so. Such “uncreated partnerships” are legally assumed when the impression of a partnership is created in the minds of outsiders. For example, a lender provided the interim financing for the developer’s 1 subdivision 2 project. Ordinarily the transaction would be labeled a loan, and the relationship would be one of borrower and lender. However, the lender had a say in the layout of the subdivision, had to be consulted on the construction of models and homes built on speculation, and was to capitalize the interest on the project in exchange for a percentage of profits from the sale of lots in the subdivision. The lender had just given every signal required to establish that a partnership exists. Even though the lender and the borrower did not set out 3 to form a partnership, their conduct created the impression of a partnership in the minds of contractors, subcontractors and suppliers. The result was that the lender was held liable for unpaid bills on the subdivision as a partner by implication 4 . It was up to the lender to dispel the impressions and rumors in order to keep from acquiring the liability of a partner.

D

1. Read the text and find the answers to the questions:

( I ) Disagreement, Disability, Divorce and Death

(Расхождение, Инвалидность, Развод и Смерть)

1. When must a partnership be dissolved?

These above mentioned “four Ds” present the greatest threat (угроза) to a partnership’s continued existence. A major

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drawback(слабое место) of a partnership is that it must be dissolved every time a partner withdraws (уходить), retires or dies.

2. What must be done if one of the partners leaves the firm?

If a partner leaves the firm, the departure must be made clear to others so that the partner’s liability can end and so that the partner is not tempted(соблазняться) to continue to deal with the suppliers of the firm and perhaps to earn and a profit. For example, one retired partner continued to order the firm’s office supplies as he had for twenty years. He picked up(приобретать) the supplies and then sold them while his old firm was billed(выставлять счет) for the supplies. Once the firm discovered the ploy(хитрость), it refused to pay the supply seller. However, the court(суд) ruled(постановить) that the seller was entitled(иметь право) to payment because no one had ever informed the seller of the change in the partner’s status. Any time a partner leaves a partnership, the firm must give notification(уведомление) to all customers and suppliers and should also publish some general notice of the change in ownership.

3. What special problems does the death of a partner carry? How can such problems be solved in the partnership agreement?

The death of a partner carries some special problems in addition to the notification needs just discussed. For one thing, the heirs(наследник) of the deceased(умерший) partner are entitled to be paid the value of that partner’s interest in the firm, and many firms do not have the cash to do this. One legal strategy is to have insurance policies(страховой полис) on the partner’s and then stipulate(оговорить) in the partnership agreement that the policy payment, in annuity(ежегодный доход, периодически выплачиваемый взнос) form or otherwise, will be considered payment for the partner’s interest in the firm.

4. What can be caused by the divorce(развод) of one of the partners? What can be good legal strategy for avoiding divorce problems?

The divorce of one of the partners can cause(стать причиной) a tremendous drain(утечка, расход) on the partner and the partnership. In many cases, the partners become witnesses(свидетели) as the feuding spouses(враждующие супруги) attempt to value their property and determine who will get how much. The litigation fees(судебные издержки) can be tremendous and the damage to the morale (моральное состояние) of the firm can be even greater. A good legal strategy for avoiding divorce problems is to stipulate in the

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partnership agreement the interest of the married partners and state whether their spouses have disclaimed (отказаться) any interest or have accepted some other property in lieu (взамен) the partnership interest.

5. What if a partner becomes ill or disabled (нетрудоспособный,

инвалид)?

Partnerships give too little thought to the possibility of a partner to become ill, incapacitated (лишенный трудоспособности), or in some way disabled either for an extended period of time or permanently (постоянно). Sometimes partnerships rely heavily on that partner’s skills. The partnership agreement should have a provision (положение) to deal with disability that covers the partner’s share of profits during the time of disability and the consequences (последствия) if the disability becomes permanent. Again, insurance coverage can help here. So can setting a time limit for disability, typically six months. Most businesses can survive for six months in a holding pattern (временно), but permanent changes should be made after that time.

6. What if disagreements between the partners occur?

The optimism of forming a business usually carries with it the idea that partners will always get along (ладить). Unfortunately, disagreements occur sooner or later, and they may become so intense that the business loses customers. For example, two police officers formed a firm to install home security systems. The officers initially were close friends. As their business began to do well, however, they began to disagree with each other, and they often carried on (продолжaли) arguments while they installed the security systems in people’s homes. This annoyed (раздражать) many customers and cost the partners the customer recommendations that are the main means of advertising in this type of business.

Many partnership agreements include arbitration (арбитраж) or mediation(посредничество) provisions for the resolution of disputes. Such provisions should be followed by others stating what will happen to the business if disagreements cannot be resolved, including whether one partner can buy out(выкупать) the other and, if so, how the interest will be valued.

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2. Read the text and render it in Russian and then in English:

(II) Limited Partnership

The limited partnership is a contractual union of entrepreneurs (предпринимателей) participating only by the way of contributions without taking direct part in management (investors) ; and those who apart from (кроме) contributing carry out direct management of the partnership and are fully liable by the partnership’s obligations with their own property (full members).

It takes at least one full member and one investor to form a limited partnership. The limited partnership is to be registered just like any unlimited partnership.

The name of the partnership includes the names of one or two full members; the including of the name of the investor into the name of the firm makes the investor equally and jointly liable by the partnership’s obligations.

3. Read the text and render it in Russian and in English:

(III) А Partnership

A partnership is a legal association of two or more persons as coowners of a business. The partners share profits, losses, and usually the management responsibilities as well. When all the partners are legally equal and equally liable for the firm’s debts, the business is a general partnership. If, however, in addition to one or more partners acting as general partners and running the business, there are others whose liability is limited to the amount of their investment, the partnership is then said to be a limited partnership.

Partnerships are easy to form, and they often have a greater profit potential than sole proprietorships because a number of individuals are pooling their talents. In some industries, the possibility of becoming a partner is an incentive(побуждение, мотив) for talented employees.

Partnerships benefit from having a definite legal standing, as the partners typically have a legal agreement between them. And although each general partner has unlimited personal liability for debts, partnerships typically have a high credit rating owing to the combined talents of the various owners. Still further, and in contrast to sole proprietorships, partnerships may have an unlimited life span, as new partners can replace retiring ones.

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Unlimited liability is a major disadvantage of the partnership. This form of business ownership may also suffer from interpersonal problems among the partners and management difficulties resulting from too many partners having a say in the business’s daily operations. Additionally, in large partnerships, employees may become extremely competitive when they aspire (стремятся) to become partners.

E

1. You are to make a report “Forms of business organization” at the annual students' conference. Your information is in Russian and you have to translate it into English:

Великобритании до 20 человек), занимающаяся тем или иным бизнесом с целью получения прибыли. В Великобритании их деятельность регулируется Законом о товариществах 1890 г. В отличие от акционерной компании товарищество не является юридическим лицом, поэтому партнеры несут неограниченную ответственность по обязательствам товарищества (всем своим имуществом).

партнеров, управляющих делами товарищества и несущих полную ответственность за его долги перед кредиторами, и партнеров с ограниченной ответственностью, не принимающих активного участия в управлении товариществом и несущих ответственность за его долги только в размере своего взноса в товарищество. В Великобритании деятельность таких товариществ регулируется законом о товариществах с ограниченной ответственностью 1907 года.

черты коммандитного товарищества и открытого акционерного общества. От простого коммандитного товарищества оно отличается тем, что имеет право выпускать и пускать в открытую продажу свои акции, которые могут котироваться на бирже. При этом полные партнеры несут неограниченную ответственность по долгам такого товарищества, а держатели его акций - только в размере своего взноса в него.

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Доходы товариществ не облагаются корпоративным налогом (corporation fax), т.е. налогом на прибыль компаний. Участники товарищества включают доходы от его деятельности в свой личный доход, облагаемый налогом по ставкам подоходного налога для физических лиц.

В настоящее время практика организации фирмы в форме товарищества является не очень распространенной. В основном это адвокатские конторы, консалтинговые фирмы, семейные предприятия и т.п. В название товарищества включается фамилия одного или нескольких партнеров, например: Wilson & Sons; Smith, Johnson & Brown. Если в названии товарищества имеется имя собственное без каких-либо других званий (Dr, Sir и т.п.), то при обращении в такую фирму (в письме, факсе) перед ее названием в адресе ставится слово messrs (сокр. от messieursгоспода), например:

Messrs Smith & White

260 London Road Nottingham NG76JF England.

2.Fill in the list of advantages and disadvantages of partnerships:

3.Discuss advantages and disadvantages of partnerships over sole

proprietorships. Use the following cliche:

1) On the one hand ... on the other hand ...

2) Although ...

3) I think ...

4) As far as I can judge ...

5) It is common knowledge that ...

6) etc.

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SECTION 4. CORPORATIONS

2. Read the text:

Corporations. Types of Corporations.

In the United States, a corporation is a specific legal form of organization of persons and resources chartered by one of the 50 states for the purpose of conducting business. When people and resources are brought together to form a corporation, the result – in the eyes of the law – is a person (Indeed, the Latin word “corpus” means “body” or “person”). So, a corporation is authorized by law to act as a private person. A U.S. corporation, distinct from any individual human being, may own property, sue or be sued in court and make contracts. For this reason, a corporation is an ideal vehicle for the conduct of business by many smaller enterprises as well as larger ones, it is the most significant form of business ownership in terms of money, size, and power. Corporations account for 72 percent of all money taken in