Unit 6.

FORMS OF BUSINESS ORGANISATION

Ex.1. Find the English equivalents in the text.
To earn profit, to suffer losses, financial independence, achievement and self-
fulfilment, assets, vulnerability to lawsuits, the vast majority of small businesses, to run
the business, the most flexible and adaptable form, taxes placed on corporations, to
have unlimited liability, to assume a responsibility, in the eyes of the law, to attract
high-calibre employees, to share ownership, to have a legal agreement, an argument in
favour, the incentive to become a partner, to be jointly and individually liable for the
actions in case of bankruptcy, a drawback, disagreements among partners, to cause
conflicts, to elect a board of directors, to oversee smth, to have distinct advantages,
distinct advantages, to transfer ownership, to disclose information, to be a subject to
double taxation.

Ex.2. Give Ukrainian equivalents of the following words and phrases

Створювати бізнес, потенційний прибуток, розмір та особливості бізнесу, рівень

контролю, мати переваги та недоліки, нести щоденну відповідальність, мати
повний контроль над чимось, ліквідувати бізнес, бути пристосованим до чогось,
з менш привабливої точки зору, брати на себе відповідальність, бути одним й тим
самим із бізнесом, знаходити капітал, розрізняти між, вирішувати розбіжності,
вкладати час та кошти, перспективні працівники, загроза потенційних
розбіжностей, впливати на щось негативно, єдиний об’єкт, одна з найвагоміших
переваг, інкорпорований бізнес, створений згідно державного статуту, накладати
податок на дивіденди, захищати когось від дій.

Ex.3. Give three forms of the following verbs. Find the sentences with these verbs
in the text.
Bring-brought-brought
It brings together the other three – Land, Capital and Labour.

suffer-suffered-suffered
When they are not successful, they suffer losses.

Do-did-done
There are numerous reasons why people do business.

Make-made-made
One of the most important decisions to be made is choosing its structure.
Choose-chose-chosen
The choice will be based on the entrepreneur’s vision.

Have-had-had
Different forms of business organization – sole proprietorships, partnerships and
corporations – have their advantages and disadvantages.

Own-owned-owned

Run-ran-run
Such a firm is owned by one person, usually an individual, who has day-to-day
responsibility for running the business.

Keep-kept-kept
They receive all income generated by the business to keep or reinvest.

React-reacted-reacted
This form of business organisation is the most flexible and adaptable to changing times
because of their ability to restructure themselves and react more quickly.

Pay-paid-paid
Sole proprietorships do not have to pay special taxes placed on corporations.

Attract-attracted-attracted
It is very difficult for a sole proprietor to raise investment funds and to attract high-
calibre employees.

Buy-bought-bought
Partners can be bought out.

Take-took-taken
What steps will be taken to dissolve the partnership.

Contribute-contributed-contributed
They also must decide up front how much time and capital each will contribute.

Raise-raised-raised
Corporations have wider opportunities to raise additional funds through the sale of
securities.

Tax-taxed-taxed
A corporation can be taxed.
Give-gave-given
Unlike in sole proprietorship, prospective employees may be attracted to the business
if given the incentive to become a partner.

Sue-sued-sued
A corporation can be sued.

Hold-held-held
Shareholders can only be held accountable for their investment in the stock of the
company.

Transfer-transferred-transferred
They can transfer ownership through the transfer of securities.

Sell-sold-sold
Corporations that are public, i.e. whose shares are sold to the public.

Mean-meant-meant
It means that in addition to corporate tax levied on the corporation’s profit shareholders
must pay income tax imposed on their dividends.

Grow-grew-grown
For example, he may start his business as a sole proprietorship, but, as his business
grows, he may take on a partner and become a partnership.

Ex.4. Match the words on the left with the definitions on the right.
1. e
2. f
3. a
4. i
5. b
6. h
7. c
8. l
9. k
10. g
11. j
12. m
13. d
Ex.5. Make up verb+noun collocations (there may be several variants).
to have advantages and disadvantages
to do (a) business
to make decisions
to earn (a) profit
to levy taxes
to suffer losses
to assume a responsibility
to pay taxes
to run (a) business
to raise funds
to establish a partnership
to invest capital

Ex.6. Fill in the gaps in the following verb collocations with appropriate
prepositions or adverbs.

To base the choice __on___ one’s vision; to have responsibility __for___ running the
business; to adapt __to___ changes; to place a special tax __on___ corporations; to
distinguish __between___ the business and its owners; to admit potential partners
__to___ the partnership; to attract prospective employees __to___ the business; to be
created __under___ the government charter; to be subject __to___ double taxation.

Ex.7. Choose the appropriate word or phrase to complete the following sentences.
1. choosing its structure
2. advantages and disadvantages
3. sole proprietorships
4. flexible and adaptable
5. unlimited liability
6. share the ownership
7. corporate tax
8. drawback
9. shareholders
 10. a board of directors
11. securities
12. a government charter
13. Dividends

Ex.8. Combine two parts logically to make complete sentences.

1. g
2. i
3. a
4. f
5. d
6. k
7. m
8. b
9. l
10. e
11. h
12. j
13. c

Ex.9. Look through the text again and replace the words in bold with the linking
words and phrases given below.

1. in order to...
2. generally
3. in view of
4. Since, at the same time
5. first and foremost, besides
 6. obviously, to start with
7. like
8. it is a fact that…

Ex.10. Translate into English.

1.