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III. Answer the following questions.
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1. What kind of association is partnership? 2. What types of partners are mentioned in the text? 3. What is the difference between a general partner and a limited partner? 4. Is there any difference between a silent partner and a secret partner? 5. May any business have the form of partnership? 6. What are the advantages and disadvantages of a partnership?
IV. Translate the following sentences into English.
1. Партнерство позволяет владельцам объединить свои финансовые капиталы для получения максимальных прибылей, а также облегчает получение кредита у банков для расширения деятельности. 2. Партнерство имеет много преимуществ. 3. Партнерство часто получает налоговые льготы от правительства. 4. Партнер с ограниченной юридической ответственностью не имеет реальной власти. 5. Секретный партнер принимает участие в управлении, но он неизвестен общественности.
V. Read and translate the following dialogue.
Dialogue 2
(Two friends Susan and Maurice are having supper in a restaurant)
Maurice: Haven't seen you for a long time. What have you been busy with?
Susan: I've been pretty busy. Do you know my friend Nora? I went into business with her.
Maurice: Really? How is it going on?
Susan: Fine, thanks. We get along very well and the shop is attracting more and more customers.
Maurice: It sounds well. How many partners are there in your business?
Susan:There are two of us and I am very pleased about it. I've made a right choice. Nora's background is in accounting. She is very good at keeping the books.
Maurice: And you?
Susan: You know I always liked talking. I guess I am rather good with customers, I enjoy selling things.
Maurice: Well, it sounds interesting. I believe you don't run a risk in your business.
Susan: We haven't had many problems, although I suppose all business can be risky. As partners we are both liable.
Maurice: Did you both put the same amount of money into your business? Do you mind my asking?
Susan: No, we didn't invest the same amount of capital. But I think we've combined our resources very well. I think it's good for both of us.
Maurice: It seems really so. That is one advantage of a general partnership. You can invest less capital than your partner – even no money at all. But you as a partner can contribute important services or skills, sometimes just a name or a reputation.
Susan: Indeed.
Maurice: How did you arrange to distribute profits and losses?
Susan: We share them equally. We hope to be in business for a long time.
Maurice: Nice for you. Now you seem to know a lot about business.
Susan: Not everything yet but the subject becomes quite technical.
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Maurice: I am glad to hear it. It's time to go now. See you later. Bye.
Vocabulary
to get along – справляться с делом; преуспевать
background – образование
to keep the books – вести бухгалтерские книги
to guess – полагать, считать
to run a risk – рисковать
to suppose – думать, полагать, предполагать
to be liable for smth. – быть ответственным за что-либо
to distribute profits and losses – распределять прибыли и убытки
to share – делить, распределять
Corporation
A business corporation is an organization created by law that allows people to associate together for the purpose of making profit. It is the dominant form of American business because it makes it possible to gather large amounts of capital together.
Before a corporation may do business, it must apply for and receive a charter from the state. The state must approve the articles of incorporation, which describe the basic purpose and structure of the proposed corporation.
The stockholders usually meet once a year to elect directors and to carry on other important business. Each share of stock entitles its owner to one vote. A stockholder who can’t attend the meeting can legally authorize another to vote his or her shares by proxy.
Management of a corporation consists of the board of directors who decide corporate policy, and the officers, who carry on the daily operations. The board is elected by the stockholders, and the officers are appointed by the board.
Some specific duties of the board of directors are to declare dividends, authorize contracts, decide on executive salaries, and arrange major loans with banks. Management's main means of reporting the corporation’s financial position and results of operations is its annual report.
Corporations are also known as joint-stock companies because they are jointly owned by different persons who receive shares of stock in exchange for an investment of money in the company. Shares represent fractions of the company's assets such as cash, equipment, real estate, manufactured goods, etc.
Though the corporation is more difficult and expensive to organize than other business forms, it has a number of advantages. First, investors can limit their personal liability to the amount of money they have invested, thus, if the corporation goes bankrupt, they can lose no more than they have put in. Second, money to operate the business is obtained by the sale of stocks to the general public and this enables the corporation to exist independently of its owners. The corporation also finds it easier to borrow money from banks and it is also a successful means for attracting large amounts of capital and investing the latter in plants, modern equipment and expensive research. Third, salaries large corporations can offer to managers and specialists are high and that allows corporations to hire professional and talented employees. In addition, it allows centralized authority, responsibility and professional management.
The great drawback of the corporate form of ownership is double taxation of profits which means that business corporations must pay taxes on their net income, and then the shareholders are to pay taxes on the income they receive as dividends on their stock. Different kinds of reports to be filed to federal and state regulatory agencies about the corporation activity can also be considered as another disadvantage of this business form. However, in terms of size and influence it is the corporation that has become the dominant business form existing in most countries with free market economy. In addition, separation of ownership and control may allow management to make harmful decisions.
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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 doesn’t 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 nonprofit as a rule and usually they don’t issue stock certificates.
Vocabulary
to associate – объединять, соединять
to apply for smth. – обращаться с просьбой, заявлением за чем-либо
charter – право; документ, разрешающий создание корпорации
to approve – одобрять; утверждать
articles – соглашение, договор
incorporation – объединение, слияние
to elect – избирать; назначать (на должность)
to entitle to smth. – давать право на что-либо
to attend a meeting – посещать собрание
to vote by proxy – голосовать по доверенности
to appoint – назначать (на должность), утверждать (в должности)
joint-stock company – акционерное общество
in exchange for – взамен
fraction – доля, часть
cash – деньги
manufactured goods – промышленные товары
general public alike – обычные люди
to enable – давать возможность или право что-либо сделать
plant – завод, фабрика
salary – заработная плата, оклад
drawback – недостаток, отрицательная сторона
double taxation – двойное налогообложение
to file – регистрировать, подавать документ
charitable institutions – благотворительные учреждения
to reinvest – реинвестировать, делать новое капиталовложение
utility – предприятие общественного пользования
I. Give Russian equivalents to the following word combinations:
dominant business form; charter; to approve the articles of incorporation; to elect directors; to carry on business; to attend the meeting; board of directors; to carry on the daily operations; to appoint; to receive shares of stock; fraction; company's assets; to limit personal liability; to invest money in; to go bankrupt; sale of stocks to the general public; to borrow money from banks; to attract a large amount of capital; to pay taxes on the income; to receive dividends; free market economy.
II. Give English equivalents to the following word combinations:
акционер; голосовать по доверенности; акционерное общество; взамен; деньги; недвижимость; промышленные товары; завод, фабрика; современное оборудование; дорогостоящие исследование; заработная плата; недостаток; двойное налогообложение; делать новое капиталовложение; предприятие общественного пользования.
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