Text 7 . Basic Forms of Business Organization

New words :

1. Implication- предпосылка, условие, значение, смысл, вывод

2. Commitment- затраты, вложение капитала, обязательство

3. Financial commitment- финансовое обязательство

4. Sole proprietorship- единоличное владение, индивидуальное, частное предприятие

5. Partnership- товарищество

6. General partnership- компания с неограниченной (имущественной) ответственностью

7. Limited partnership- компания с ограниченной (имущественной) ответственностью

8. Virtue- хорошее качество, преимущество, эффективность

9. To establish- основывать, создавать, учреждать

10. Complication- сложность, запутанность, осложнение

11. Income tax- подоходный налог

12. Shortcoming- недостаток

13. Sue- возбуждать, возбудить иск (дело) против, подавать в суд на

14. Drawback- недостаток, помеха, препятствие

15. Separate- отдельный, особый, отдельно

16. Apart from- за исключением, кроме, помимо, отдельно

17. Stock- акция, акционерный капитал

18. Stockholder- ам. владелец акций, акционер

19. Claim- требование (например, о возмещении убытков), претензия, иск, рекламация

20. Settlement of claims- урегулирование, удовлетворение требований (претензий, исков, рекламация)

The form of business organization that a firm chooses has important implication both on the financial commitment of the owners to the results of the company and on the way the firm operates. In some countries the basic forms of business organization are: sole proprietorship, partnership, corporation.

Sole proprietorship.

A business form for which there is one owner.

Simplicity is its greatest virtue.

A sole proprietorship can be established with few complications and little expense.

Proprietorship pay no separate income taxes. The owner merely adds any profit or subtracts any losses from the business when determining personal taxable income. Its shortcoming is that the owner has unlimited liability for all debts of the firm. This means that when the organization is sued, the personal property of the owner, as well as the assets of the business, may be seized to settle claims. Another problems with a sole proprietorship is the difficulty in raising capital. The proprietorship has a final drawback. In estate planning, no portion of the enterprise can be transferred to members of the family during the proprietor’ lifetime. For these reasons, this form of organization does not afford the flexibility that others forms do.

Partnerships.

A partnership is similar to the sole proprietorship except that the business has more than one owner. Partnerships, like proprietorships, pay no income taxes. Individual partners include their share of profits or losses from the business as a part of their personal taxable income. One advantage of this business from the relative to the proprietorship is the capability of raising a greater amount of capital.

In a general partnership all partners have unlimited liability. Because each partner can bind the partnership with obligations, general partners should be selected with care.

In most cases there is a formal arrangement that sets forth the powers of each partner, the distribution of profits, the amounts of capital to be invested by the partners, and the procedures for reconstituting the partnership in the case of the death or withdrawal of a partner. Legally the partnership is dissolved if one the partners dies or withdraws.

In limited partnership, the liability of limited partners is confined to the amount of capital they have contributed.

Corporations.

The corporation is a business form separate from its owners. The principal feature of this form of business is that the corporation exists legally separate and apart from its owners. This has a series of favourable features.

The firm’s life is not limited by the lives of its owners. The corporation can continue even though individual owners die or sell their stock. An owner’s liability is limited to his investment. His personal assets cannot be seized in the settlement of claims. This is another important advantage, since capital can be raised in the corporation’s name without exposing the owners to unlimited liability.

A possible disadvantage of the corporation is related to taxes. Corporate profits are subject to double taxation since the company pays taxes on the income it earns and the stockholders must also pay a tax dividends received.

Tasks

1. Find in the text the English equivalents for these words and word combinations: финансовое обязательство владельцев; облагаемый доход; личное имущество владельцев; простота – его главное имущество; каждый партнер может связать компанию обязательствами; официальное соглашение, которое излагает (формулирует) права каждого партнера; процедуры воссоздания товарищества; главная характерная особенность этой формы бизнеса; подвержены двойному налогообложению; обязательства владельца ограничиваться его вкладом.

2. Agree or disagree with the following statements:

1. Partnerships pay income taxes

2. Personal capital is provide by more than one owner in a partnership

3. All the partners have limited liability in a general partnership

4. The personal property of the owner, as well as the assets of the business, may be seized to settle claims in a sole proprietorship.

5. The liability of limited partners in a limited partnership is not confined to the amount of capital they have contributed.

6. The corporation exist legally separate and apart from its owners.

7. A possible disadvantage of the corporation is related to taxes.

3. Make up dialogue on the text.

Дата: 2018-12-28, просмотров: 236.