Scan the text to determine whether these statements are true (T) or false (F), and if they are false say why

Scanning

Understanding the reading

COMPREHENSION

2.4.1.Give extensive answers to the questions. Use the following expressions to present your answers:

§ It ran through my mind that ….

§ … beyond the shadow of a doubt.

§ To begin with ….

§ I’m afraid I don’t know up from down ….*

§ Frankly speaking, I am in a real predicament ….**

1. What makes an entrepreneur choose partnership instead of sole proprietorship? What characteristics of the sole proprietorship do partnerships have? In what way do they differ?

2. Why is a limited liability a mixed blessing?

3. Why are lawyers, doctors and accountants prohibited from forming companies with limited liability in some countries?

4. Why are the majority of businesses all over the world limited companies? What does it mean? What are the advantages of corporations over the other forms of businesses?

5. What disadvantages do the corporations face?

6. What are the rights and duties of a corporation? What should be done in order to be legally recognized as a corporation?

7. What is a share of stock? What role do the stockholders play in the activities of a corporation? Who runs the day-to-day operation of the corporation?

8. What is a dividend? Who decides in what way the profit of the company should be distributed?

9. Why do many corporations arrange for management to own shares of stock?

10. What is understood by a public limited company in Great Britain? In what way does it differ from the similar businesses in the USA?

e.g. In my opinion it is true that... / I’m afraid it is false that... because...

1.	If the business has debts and one of the partners dies, the others are barely responsible for his debts.
2.	Corporations are easy to organize, decisions can be made quickly, profits are shared with only a few people, and the owners are responsible for success or failure of the business.
3.	If the corporation goes bankrupt or is sued, the stockholders lose the value of their stock. They are personally responsible for any money the corporation owes.
4.	Bonds represent ownership in the corporation.
5.	In corporations with many owners or stockholders the individual share of profits in the form of dividends is comparatively small.

2.4.3 Develop the following ideas. Make use of the active vocabulary given in brackets:

1. The advantages of sole proprietorships explain why so many people start businesses and try to run them alone.

(to be a one-owner business; to be easy to organize, to make decisions; to receive profits; to run the business; to encounter difficult problems; to have limited resources; to deal with the problem of limited liability; to take the personal property to pay the debts of the business; to start an entirely new enterprise)

2. To increase their chances of success entrepreneurs often choose partnership instead of sole proprietorship.

(to be an entrepreneur, to contribute equal capital; to have equal authority in management; to be easy to organize; to be responsible for success or failure of the business; to lose a personal fortune in the case of bankruptcy; unlimited liability for debts)

3. The majority of businesses are limited companies, in which investors are only liable for the amount of capital they have invested.

(to go bankrupt; assets do not cover the debts; to form a corporation; to raise the large amount of money needed; to have the right to buy, sell, and own property; to make legal contracts; to hire and fire workers; to set prices; to be legally recognized to be sued, fined and taxed; to obtain a charter of incorporation; to issue shares of stock; to represent ownership in the corporation; to buy and sell shares of stock)

4. Corporations have disadvantages as well as advantages.

(to be filed with the state or federal government; to issue a charter; to set up a corporation; to pay stockholders regular dividends; to keep detailed records; to be subject to double taxation; to include something. on income tax forms; to control the business; to invest own money in the business; to arrange for management to own shares of stock)

2.4.4 Match each of the phrases on the left with an appropriate explanation on the right. Use the grid below:

1.	company (UK) / corporation (US)	A	a company whose shares are not publicly available
2.	public company	B	an organization which is part of the state organisation
3.	private company	C	an organization operating to make a profit
4.	cooperative	D	a company which owns another
5.	enterprise	E	a firm where shareholders’ liability is limited
6.	government agency	F	firm owned by a parent company
7.	limited company	G	documents showing income, expenditure, assets and liabilities, sales records, etc.
8.	offshore company	H	two or more partners working together for profit, without limited liability
9.	minority interest	I	a new commercial activity
10.	parent company	J	cash items, or items that can easily be changed into cash for the present financial year
11.	partnership	K	a company whose shares are publicly available
12.	subsidiary (affiliate)	L	items of value which are not easily changed into cash but which the business needs.
13.	company accounts	M	a firm based in a tax haven to avoid higher taxation
14.	fixed assets	N	a democratic firm owned by its workers
15.	current assets	O	company in which another firm has less than a 50% interest

C

2.4.5 There are five main types of legally constituted company. Tick the correct characteristics for each business type, or write “possibly” if the characteristic could apply. Give a brief description of the companies:

	public limited company	private limited company	sole trader	partnership	co-operative
single individual owns a company
two or more owners / directors
quoted on stock exchange
workers run the company
unlimited liability
limited liability
owner is self-employed

2.4.6 Scan the text again and find the English equivalents for the following:

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