Vocabulary. The sole proprietors

The sole proprietors

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.

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.

*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.

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

Дата добавления: 2014-12-27