B. Unincorporated Businesses

An unincorporated business has no legal existence from that of its owners. So if Joan Smith is running a newsagent’s shop as a sole proprietorship, legally the business is part of Joan Smith even if she chooses to call it something like ‘The Paper Shop’. This is true of partnerships as well. One great advantage of this is that the interest of the owner of the business and the interests of the business tend to coincide. The owner can make decisions, which it is hoped may lead to profits for the business and thus directly benefit the owner.

There are two definite disadvantages, however. Firstly, there may be a great deal of responsibility resting on the owner, who has to make decisions on many areas in which he is not a specialist. (Of course even a sole proprietor may employ people who can make some of these decisions.) A more important disadvantage is that the business may be unsuccessful and make a loss. This will be the responsibility of no one but the owner. The owner will also have unlimited liability for the debts of the business – in extreme cases it may be necessary for the sole proprietor or a group of partners to sell their personal possessions, including their houses, in order to meet their business debts.

6. Do you know the following terms: производство, предмет потребления; товар; сырье, переработка, распределение, потребитель, транспортная перевозка, розничная и оптовая торговля; корпоративный, некорпоративный; легально, по закону, по праву, юридически; учет; владеть магазином; единоличное владение; партнерство, владелец; прибыль, получать прибыль; нести убытки; долг, выплатить долг; ограниченная ответственность, неограниченная ответственность?

7. Read and translate the text. Do not forget to write out the terms.

Here are the words which are to help you better understand the text: incorporated акционерный; private sector частный сектор vs. public sector государственный сектор; legal identity юридическая идентичность, подлинность; private limited company частная акционерная компания; закрытая акционерная компания vs. public limited company открытая акционерная компания; share акция; доля, часть, доля собственности, пай; shareholder акционер, пайщик, владелец/держатель акций; to enjoy the benefits of извлекать прибыль; выгоду; limited liability ограниченная ответственность vs. unlimited liability неограниченная ответственность; disadvantage невыгодное положение; неблагоприятные условия vs. advantage выгодное положение; преимущество; превосходство; to deal with заключать сделку; assets активы; фонды; payments due to причитающиеся деньги (выплаты), подлежащие к выплате; sue вчинить иск, подавать в суд; carry risks нести риски, рисковать.

TEXT 6: CLASSIFYING BUSINESS

Дата добавления: 2015-08-27