Pass-through taxation | A | Any technique to multiply gains and losses. | |
Ownership liability | B | A separate legal entity, an LLP provides liability protection for all general partners as well as management rights in the business. | |
S corporations | C | Probability of loss arising from the buyers reneging on the contract, as opposed to the buyers inability to pay. | |
Tort | D | unincorporated business organization | |
Professional corporations | E | separately taxable entities | |
Nonprofit corporation | F | pass-through tax entities | |
Memorandum of association | G | A state chartered organization which acts as a separate legal entity and is the most structured business entity. | |
Limited liability partnership | H | The extent to which the owners of a business are liable for the debts of the company. | |
Limited partnership | I | Tax due both on any salary drawn from the corporation and from any dividends received from the corporation. | |
Leverage | J | A body of elected or appointed members who jointly oversee the activities of a company or organization. | |
Contract risk | K | company formation | |
Corporation | L | A legal entity that is formed as a non stock corporation with the intent to not realize a profit. | |
C corporations | M | A separate legal entity, this type of business includes a general partner and one or more limited partners who invest capital into the partnership, but do not take part in the daily operation or management of the business. | |
Incorporation | N | Method in which a firms owners pay income tax on the firms income and not the firm. | |
Business trust | O | The document that governs the relationship between the company and the outside. | |
Board of Directors | P | a civil wrong | |
Personal income tax | Q | Corporate entities for which many corporation statutes make special provision, regulating the use of the corporate form by licensed professionals. |
Complete the following texts using the suitable words or phrases from the box.
Text 1
A | debts | E | unlimited liability |
B | partnership | F | enterprise |
C | legal entities | G | risks and profits |
D | limited liability | H | legal action |
Partnerships and Sole Traders
A partnership is a business arrangement in which several people work together, and share _____(1)_____. In Britain and the US, partnerships do not have _____(2)_____ for debts, so the partners are fully liable for any _____(3)_____ the business has. Furthermore, partnerships are not _____(4)_____, so in case of a _____(5)_____, it is the individual partners and not the _____(6)_____ that is taken to court. In most continental European countries there are various kinds of partnership which are legal entities.
A sole trader business is an _____(7)_____ owned and operated by a single person who has _____(8)_____ for debts.
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Complete the text. Replace the Russian words and phrases by the English equivalents.
Limited Liability
A company is a business that is a . In other words, it has a , the . It can , and can if it . A company , even if the change. Most companies have , which means that the owners for the business's debts. These companies are known as . Their liability . The limitation of liability to risk their money to become , while leaving the of these companies to , known as executive directors.
1.5.4 Text for discussion.
a. Look up the dictionary or Unit 1 Glossary for the meaning and pronunciation of the following words and word-combinations and use them to discuss the problems outlined in the text.
Sole trader; The Partnership Act of 1890; unanimity; majority vote; precluded by size.
b. Briefly scan the text and outline the list of major points.
c. Read the text more carefully and comment on the following items:
- the common features of a sole trader and a partnership;
- the main provisions of The Partnership Act of 1890;
- the difference between private companies and public companies;
- the disadvantages of a company as opposed to partnerships and sole traders.