The business partnership

Read the text below and say if you would like to work in a team.

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.

Look through the text again. Divide the text into several parts and name each of them. Give their summary in 3-5 sentences.

In the text find the synonyms to the following words and phrases. Use them in the sentences of your own.

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.

Answer the following questions to the text

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.

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.

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.

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.

*entrepreneur

*income

*misfortune

*a business of your own

*personal capital

*according to the law

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.

Дата добавления: 2014-12-27