Unit 1. Forms of business organization

Exercise 1. Expand on the statements:

1. It is better to give than to lend, and it costs about the same. Phillip Gibbs.

2. When you can measure what you are speaking about, and express it in numbers, you know something about it. William Thomson.

Exercise 2. Read the following international words and try to guess their meaning:

business

type

partnership

organize

individual

product

risk

class

contract

partner

invest

management

active

role

Exercise 3. Choose from the text the words with the following suffixes, place them in the alphabetical order and translate them.

- ship – суффикс существительного

- tion – суффикс существительного

- al – суффикс прилагательного

Exercise 4. Read the following words and word combinations. Use them in sentences of your own.

in the variety of ways – разными способами

to raise some money – находить некоторое количество денег

to make decisions – принимать решения

to control the profits – контролировать прибыль

to put policies into effect quickly – быстро достичь хороших результатов

liability insurance – страхование ответственности

the allocation of future profits and losses – распределение будущих прибылей и убытков

to have unlimited liability – иметь неограниченную юридическую ответственность

to apply for the corporate charter – подавать заявление на корпоративный патент

to elect the board of directors – избирать совет директоров

to adopt bylaws – принимать юридические положения

Exercise 5. Read the title of the text and predict the main ideas of the text.

Exercise 6. Read the text and find out:

1. What are the most common types of business organization?

2. What should individuals do to organize the sole proprietorship?

3. What are the advantages and disadvantages of sole proprietorship?

4. What is a partnership?

5. What are the main classes of partners?

6. What should a person do to establish a corporation?

7. What are the advantages of the corporate form of ownership?