essential clauses-
strike a deal
legal title
contracting parties
unit of measure
commodity (goods)
tolerance
stipulation
bulk cargo
in conformity with
by sample
quote a price
subject to
firm prices
fixed prices
sliding prices
Answer the questions:
1. Why are standard contracts widely used?
2. What are the essential items of a contract?
3. What information is contained in different sec- ns of a contract?
4. How is quality determined in the contract?
5. What sort of prices may be indicated in a contract?
7
The main forms of business organization
Read and translate the text:
Business is the production, distribution, and sale of goods and services for the benefit of the buyer and the profit of the seller. In the modern world the control of production is largely in the hands of individual business people or entrepreneurs, who organize and direct industry for gaining profits.
The main forms of business organization are described below.
Individual Proprietorship (Sole Trader or Sole Proprietor)
This is the simplest way of starting a business. You are self-employed and fully responsible for all the aspects of the management of your business.
In this form of organization the owner is in sole charge of the business and is responsible for its success or failure. Any line of business is open to an owner.
Although this form of small business has its advantages, it has certain drawbacks. In the first place the single owner is seldom able to invest as much capital as can be secured by a partnership or a corporation. If single owners are able to invest large amounts of capital, they run great risk of losing it all because they are personally liable for all the debts of businesses. This is called unlimited liability.
Partnership
Two or more people starting a business together can set up a partnership. All partners are response for the debts of the partnership and profits and losses are shared between them.
The agreement to form an association of this nature is called a partnership contract and may include general policies, distribution of profits, fiscal responsibilities, and a specific length of time during which the partnership is in effect.
