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Look at your answers and give yourselves the following points.
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1. (a): 1, (b): 2, (c): 0
2. (a): 0, (b): 1, (c): 2
3. (a): 2, (b): 0, (c): 3
4. (a): 2, (b): 3, (c): 1
5. (a): 1, (b): 0, (c): 2
6. (a): 3, (b): 2, (c): 1
7. (a): 0, (b): 2, (c): 1
8. (a): 2, (b): 0, (c): 1
Score 2-7: If you scored this, especially if your score is in the following numbers, then you find the world a very frightening place. You would probably like to do a lot of things, but are afraid of. It’s quite normal to be afraid of doing something new. But it would be good for you if sometimes you did things even though you felt afraid. If you decided to start a business of your own it would be better for you to have partners who you can rely upon.
Score 8-14: A score like this means that you’ve got about the right amount of adventurousness, but you’re still sensible – which is good. Keep that sensible head you’ve got – that’ll help you in taking important decisions.
Score 15-19: This is great, but you’re in danger of taking too many risks. In a lot of ways you’re a very powerful person, with lots of energy. You’ll do almost anything, often without thinking. You’ve got great potential, but don’t get yourself into trouble. If you really use your energy sensibly, you’ll succeed in everything.
Now read a text about sole proprietorships and find out advantages and disadvantages of having and operating a business of your own. Discuss them and compare your ideas with those of your group mates.
The sole proprietors
Many businesses are sole proprietorships, firm owned and operated by a single person. When a person decides to open an independent business, that person is then entirely responsible for its success or failure. Any profits go to the owner; any losses are his or her responsibility as well. If the losses prove to be greater than the investment, the individual is responsible for paying them, even if this depletes his personal assets.
One of the advantages of a sole proprietorship is that an owner can make decisions quickly and decisively without having to consult others. And an individual proprietor by law, pays fewer taxes and at a lower rate than a corporation does.
There are disadvantages of this form of business organization, however. A sole proprietorship ends with the incapacity or death of the owner. The assets can be inherited by a person who may then become an operator, but legally the business dies with its owner. Also, since it is dependant upon the amount of money the owner has saved or can borrow, usually it does not develop into a large-scale enterprise.
In spite of its limitations, the sole proprietorship is well adapted to many kinds of small businesses and suits the temperament of many persons who like to exercise initiative and be their own bosses. Some economic contributions of a small business are:
* A small business is often the starting point for developing a new product or service. One person tries out an idea. If it is successful, the business grows, or the product may be bought by a larger firm.
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*The small business can give an individual a chance to gain experience, which the person may use later on a large scale.
*Small businesses are particularly well suited for meeting specialized local needs.
*Artisans can provide individualized products for customers who have grown weary of mass-produced goods.
*Small businesses provide a service where knowing one’s customers is important.
*Sole proprietors are reassuring to customers who believe an individual who is accountable will do a good job.
Vocabulary
sole proprietor – собственник, владелец, частный предприниматель
sole proprietorship – собственность, частное предпринимательство
to own – владеть, иметь, обладать
to operate – работать, действовать, управлять
failure – провал, неудача
to be responsible for – быть ответственным за
profit – прибыль
losses – убытки
to deplete – истощать, исчерпывать
personal assets – личный капитал
to make decisions – принимать решения
to pay taxes – платить налоги
incapacity – неспособность
to inherit – наследовать
legally – законно, легально
to save money – копить, собирать деньги
to borrow money – занимать деньги
enterprise – предприятие
to adapt – приспосабливать, адаптировать
to exercise initiative – проявлять инициативу
to be one’s own boss – быть самому себе хозяином, начальником
to meet needs – удовлетворять потребности
artisan – ремесленник, мастеровой
weary – уставший, потерпевший терпение
accountable – ответственный, подотчетный
Say True or False
1. A sole proprietor is entirely responsible for his success or failure.
2. Even if the losses are greater than the investment, a sole proprietor will not deplete his personal assets.
3. Sole proprietorships pay more taxes than a corporation does.
4. Legally the business dies with the sole proprietor.
5. Small businesses are particularly well suited for meeting specialized local needs.
Answer the following questions to the text
1. What are sole proprietorships?
2. What are advantages of this form of business organization?
3. If you inherited a business, what would you do with it?
4. What kind of persons would be good sole proprietors? Give your own reasons.
Next to the sentences below write a word or a phrase from the text which you can use instead of the word or words in italics.
1 If losses are greater than the investment, the individual is responsible for paying them, even if this depletes his own capital.
2. He doesn’t have a boss. He works for himself.
3. He had many losses last year, and he asked a bigger company to give him money.
4. An individual businessman can make decisions quickly without having to consult others.
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5. Sole proprietorships can provide individualized products for customers who have become tired of mass-produced goods.
6. To have your own enterprise is a very difficult and responsible business.
In the text find the synonyms to the following words and phrases. Use them in the sentences of your own.
*entrepreneur
*income
*misfortune
*a business of your own
*personal capital
*according to the law
Look through the text again. Divide the text into several parts and name each of them. Give their summary in 3-5 sentences.
It is very hard to say what is more difficult to run a business of your own or to be a member of a partnership.
Read the text below and say if you would like to work in a team.
THE BUSINESS PARTNERSHIP
When a proprietor wants to expand the business, one way to do so is to form a partnership, a business formed for profit by two or more co-owners. The rights and duties of a partnership are regulated by laws of the state where ally an agreement specifies the amount of money each is investing and the duties each partner assumes. A partnership agreement also may provide for a “silent partner” who does not take part in the management, but who invests money in the business.
The partnership has the advantage of pooling managerial talent. One partner may be qualified in production, another in marketing. The partnership, like individual ownership, is exempt from most of the reporting that the government requires of corporations. Furthermore, it has a favourable tax position when compared with the corporation. Federal taxes are paid by individual partners on their share of earnings; beyond that the business is not taxed.
A major disadvantage of the partnership is that each member is liable for all the debts of the partnership; the act of any partner is legally binding upon all the others. If one partner takes a large amount of money from the business and squanders it, the others must pay the debt. Partnerships suffer another major disadvantage: decision-making is shared. If partners have serious disagreements, the business is bound to suffer.
Nevertheless, the partnership remains a vital part of the overall business economy.
Vocabulary
partnership – товарищество, партнерство
to form a partnership – организовать, создать партнерство
co-owner – совладелец
rights and duties – права и обязанности
agreement – соглашение, договор
amount – количество
to assume – принимать на себя, брать на себя
“silent partner” – пассивный партнер
to take part in something – принимать в кем-то участие
ownership – собственность
exempt from – освобожденный от
share of earnings – доля заработка
beyond – сверх, вне, свыше
major – главный, более важный
liable for – ответственный за
debt – долг
to bind upon – связывать, переплетаться с
to squander – расточать, проматывать
Say True or False
1. The rights and duties of a partnership are regulated by a legal agreement between the co-owners.
2. A “silent partner” takes part in the management, but does not invest money in the business.
3. The partnership is liable for most of the reporting that the government requires of corporations.
4. Individual partners are taxed on their share of earnings.
5. Decision making is shared.
6. A partner is not legally binding upon all the others.
7. The partnership remains a vital part of the overall business economy.
Choose the right answer
1. A partnership is ________.
a) a business formed for losses by two or more co-owners
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b) a firm owned and operated by a single person
c) a business formed for profit by two or more co-owners
2. What specifies the amount of money each co-owners is investing?
a) the laws of the state
b) an agreement entered into by the co-owners
3. A “silent partner” is a co-owner ________.
a) who takes part in the management, but who does not invest money
b) qualified in production
c) who does not take part in the management, but who invests money in the business
4. Federal taxes are paid by individual partners on their ________.
a) share of earnings
b) share of losses
c) share of income
5. A major disadvantage of the partnership is that ________.
a) each partner assumes define rights and duties
b) decision-making is shared
c) each member is liable for all the debts of the partnership
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