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Complete the sentences in the most suitable way.
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1. 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 runs a business.
2. The investor of the public company has a right to sell the shares belonging to him....
a) only with the permission of the Board of Directors.
b) without the consent of other shareholders of the company.
c) only to the shareholders of the same company.
3. A sole/ individual proprietor is...
a) the managing director of the company.
b) an individual doing business on his own behalf.
c) a hired person in charge of the operation of the company.
Exercise 8
Replace the words in italics with expressions from the text which have the same meaning.
1. The sole proprietor may keep all the profits derived from his business.
2. A sole proprietorship is the easiest to initiate and the easiest to terminate.
3. The joint owners owe all the liabilities and pay personal income taxes on their part of the profits.
4. In the case of business failure, the responsibility of the corporation for its debts is limited.
5. The board of directors keeps part of the profits to increase the capital of the
corporation.
6. The stockholders pay personal income taxes on their profits from stock.
7. The activities of the corporation are closely watched by the government.
Exercise 9
Writing. Make a list of advantages and disadvantages of the three legal forms. Share your findings with the group.
Exercise 10
Speaking. Pair work. Work with your partner and discuss which legal form is better for what kind of business, e.g., for a flower shop, an oil company, a law firm. Give arguments to support your statement. Share your opinions with your group mates.
Exercise 11
Speaking. Role play. Work in groups (or pairs). One of you is a lawyer. Advise your clients who want to start a new business which form to choose. Give your pros and cons. Ask your clients questions about their wishes as t the size of the company, availability of capital, responsibility for decision-making, liability. Your clients should ask you about advantages and disadvantages of each of the legal forms and answer your questions and then come to the mutual decision which form to choose.
Exercise 12
Writing. Write a paragraph (200 words) emphasizing the similarities and differences between 2 of the legal forms discussed in the unit.
Compare the legal forms in terms of capital, use of profits, liability, taxation. Use the following models:
Model 1. (Un)like + N, S+V.
Model 2. In contrast to + N, S+V.
Model 3. S+V, but S+V.
e.g. Unlike partnership, corporation has limited liability,
Exercise 13
Grammar focus 10. Passive Voice.
a) Put the verbs in parenthesis into a passive form:
3) The ownership of a corporation _____ _______(to divide) into shares of stock.
4) The liability of a corporation _____ _______(to limit) to the assets of the company.
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5) Corporate profits _____ _______(to tax) twice.
B) Find the sentences in the text in Passive Voice, analize them and translate into Russian.
Exercise 14
Grammar focus 11. Conditional sentences (type 2).
IF_______II FORM OF THE VERB, ______WOULD+INFINITIVE______.
e.g. If they signed the contract tomorrow, they would perform it in time.
Translate the sentences into Russian, pay attention to the Conditional 2:
1. If the proprietor could get credit in the bank he would be able to save his business from bankruptcy.
2. If they wished to form partnership, they would address a lawyer for advice.
3. If they wanted to settle their debts, they would conduct negotiations.
4. If they planned to expand their business, they would reinvest their profits.
5. If the company didn't comply with all regulations, it would get into trouble.
Exercise 15
Speaking. Say, w hat would you do if:
1. you could speak perfect English?
2. you found burglars in your flat?
3. you lost your job?
4. you found a purse?
5. you met a famous film-star?
6. your friend invited you to the party?
GLOSSARY
1. access (n.) - the means of getting to something.
e.g. A corporation has a greater access to capital than does a sole proprietor.
2. agreement (n.) - contract between two parties where one party makes an offer, and the other party accepts it.
e.g. The agreement has been reached and signed by the parties.
3. articles of co-partnership -the agreement telling the terms and conditions of partnership.
e.g. The articles of co-partnership should also provide a method of selling the businesses.
4. articles of incorporation -the agreement telling the terms, conditions and purposes of a corporation. These must be filed in the state where the corporation is chartered.
e.g. My lawyer will draw up the articles of incorporation.
5. asset (n.) - (often plural) anything of value to a company. Anything which can be sold or converted into cash.
e.g. The partners each own a share of the assets of the partnership. Inventory is a current asset because it will be sold during that business year.
6. bankrupt (v.) - unable to pay one's debts and legally released from the liability.
e.g. His business went bankrupt because of poor management and bad financial
7. bills (n.) - debts; money which must be paid to someone for a service or product received.
e.g. The bill for my telephone service arrives today. Most suppliers want you to pay the bill within thirty days.
8. board of directors -a group of persons elected by stockholders to run a corporation.
e.g. The board of directors has decided to pay a dividend of $5 per share
9. capital (n.)- t he money which owners or stockholders invest in a business.
e.g. We need some capital in order to purchase new production equipment.
10. chief executive officer (CEO) - the top manager or director of a company.
e.g. The board of directors has hired a new chief executive officer for the corporation.
11. comply with (v.) - obey.
e.g. The corporation must comply with all the regulations which pertain to it.
12. corporation (n.) - a group of persons granted a charter to do business as a separate unit.
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e.g. Large businesses are operated as corporations because capital can be easily.
13. debt (n.) - an amount of money which must be paid to someone.
e.g. By selling his business he was able to pay off all his debts.
14. dissolve ( v.) - to break up a partnership or corporation.
e.g. The partnership was dissolved because the two partners wanted to have their own businesses.
15. dividends (n.) - a share of the profits of a corporation which is given to the stockholders.
e.g. The dividend will be paid to owners of record on June 30.
16. enterprise (n.) - a business, particularly one privately owned.
e.g. If the sole proprietor wants to quit,he can simply find someone to purchase his enterprise.
17. entity (n.) - a separate unit for ownership or legal purposes.
e.g. As a separate entity a corporation can own property apart from the individual stockholders.
18. expertise (n.) - special knowledge or ability.
e.g. This accountant has expertise in financial planning.
19. goods (n.) - items which can be moved and are for sale.
e.g. Consumer good are goods bought by the general public and not by businesses.
20. income (n.) - money which person receives as salary or dividends.
e.g This year his income is higher than the previous year.
21. income tax -a tax which is based on the amount of money a person or company receives for labor, services, or products, and which cannot be added to the price of the labor, services, or products.
e.g.The owner of a sole proprietorship pays personal income tax on the profit he receives. The business itself pays no tax.
22. inventory (n.) - the amount of goods, merchandise, or materials on hand.
e.g. Once each year the owners of the store must record all their inventory in order to know which goods they have on hand. Some new computerized cash registers are able to keep track of inventory
23. liability (n.) - (often plural) debt or legal responsibility.
e.g. The assets and liabilities of the company must be listed on the balance sheet. The liability of a corporation is limited to its assets. The sole proprietor has all the liabilities of his business.
24. limited (adj.) - restricted; not allowed to exceed a certain amount.
e.g. A corporation's liability is limited to the value of its assets.
25. ownership (n.) - refers to a right a person has to things that belong to him.
e.g. The ownership of a sole proprietorship can be transferred if the proprietor wants to sell it. In order to sell a car, you must have an ownership certificate. Private ownership of property is an American tradition.
26. partnership (n.) - a business owned by two or more individuals.
e.g. The owners of a partnership share in the operation and profits of the business.
27. profits (n. ) - the amount of income above costs.
e.g. The profits have increased due to a decrease in the cost of raw materials.
28. proprietorship (n.) - ownership of a small business.
e.g. This restaurant is operated as a sole proprietorship. It is owned by one individual.
29. purchase (v.) - buy.
e.g.The individual owner can decide whether or not to purchase new tools and equipment.
30. raise capital (v.) - to get money or to organize a credit.
e.g. The company is trying to raise the capital to fund its expansion.
31. share (n.) - one of many parts into which a company's capital is divided and owned by the shareholders.
e.g. He bought a blocks of shares offered by this company.
32. share (v.) - to own or use something together with someone else.
e.g. Three companies share the market.
33. tax (n., v.) - money taken by the government to pay for government services.
with its own rights and responsibilities.
e.g. Tax inspector is an official who decides how much tax someone should pay.
UNIT 7 A
CIVIL JUSTICE
Section I
Exercise 1
Pronunciation Practice.
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