1. The forth factor of production is labour.
2. Entrepreneur is a person who looks after small children.
3. The entrepreneur is the person who undertakes production with a view to profit.
4. It is not necessary for the successful small-business owner to work hard and intelligently.
5. Entrepreneurs prefer to take risks in order to be his or her own boss.
6. Entrepreneurs are only interested in making money.
7. A driving force in entrepreneurship is charisma.
8. If you want to be really successful, you should identify your dreams before going into
business.
9. If you had a positive relationship with your father you can become a successful businessman.
10. None of the entrepreneurs had a job before they started their first business.
12. Catering trade is number one business.
Ex. 7. Complete the ideas.
1. To organize three factors of production in order to produce goods and services someone must
take the decisions of...
2. A driving force in entrepreneurship is addictiveness....
3. Successful entrepreneurs do everything possible to minimize the real risks...
4. Many businesses fail because their owners were only interested in money....
5. The common things for all the entrepreneurs are:...
DISCUSSION
1. Suppose you have $75,000 of start-up capital. What business will you invest it in? (You may
open a pizza restaurant, a shoe repair shop, an accounting firm, a sport centre, a retail shop).
Give your reasons.
2. Would you like to expand your business if it does well? To what extent?
3. Will you hire a specialist to run your company or will you be your own boss?
4. What will you do first as soon as you make a profit: invest it in your company or start buying
luxuries?
5. Do you agree with the adage: () You cant get rich working for someone else?
SUPPLEMENTARY READING
Text 3
I left England with £5 and now I'm a multi-millionaire!
A British woman who began a new life in Australia with just £5 in her pocket a few years ago has sold her business for a huge amount of money.
Cherry Haines, 39, who once worked as a market stallholder, made all of her fortune from marketing a new kind of make-up. She left England because there weren't many jobs, caught a flight to the other side of the world, and arrived without any qualifications. She only knew two people.
The flight cost £1,500, which left me penniless. At first I stayed with a friend. Then I had a bit of luck. The friend gave me the name of Peter Maddox, an Australian businessman. I rang him and told him I was the best salesperson in England and that he should give me a job. He liked her idea for a sort of make-up that stays on all day, so together they formed a company to market it. At first she was earning just $ 10,000 a year, but later she was getting a great deal of money every year. Hard work means happiness to me, she said. Her brother, Roger Haines, who is spending several weeks with her in Brisbane, said She left school when she was 16. She had very little work experience. But she could sell a fridge to an Eskimo. Ambition has led to success.
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How much money did she have when she left England?
When did she leave England?
How much has she sold her business for?
Why did she leave England?
Did she have any qualifications?
Did she have many friends?
How much did she pay for her flight?
How much did she earn at first?
How much did she earn later?
How long is her brother staying with her?
What did he say about her work experience?
When did she leave school?
Did she have any work experience when she left school?
What was so special about her?
Text 4
A SOLE PROPRIETORSHIP
VOCABULARY
financial rewards
to fail
challenging
sole proprietorship -
the partnership -
revenues -
expenses
assets , ,
liabilities () ,
regulations ,
legal requirements ()
under a rigid charter
is legally liable for all debts
to raise capital - ,
leery ,
is pledged to repay
to dissolve
to terminate
to file for bankruptcy
to cease business
Many people find the potential independence and financial rewards that can come from owning a small business very appealing. For some, owning their own business has been a lifelong dream. Many people, however, hesitate to pursue this dream because they dont think they have enough education, experience or money or are simply afraid they might fail.
Whatever the reason, owning your own business may be one of the most challenging, satisfying, demanding and rewarding things you do in your life. However, there are real risks and difficulties in starting any new business.
While each business is different, there are some basic things every small business needs to succeed. Key among these is a good idea, hard work, knowledge combined with common sense and imagination, plus the willingness and determination to make an idea into reality.
The three traditional forms of business are the sole proprietorship, the partnership, and the corporation.
A sole proprietorship is business owned by an individual and often managed by that same individual. In other words, the revenues, expenses, assets and liabilities of the sole proprietorship are the revenues, expenses, assets, liabilities of the owner. A sole proprietorship is also referred to as single proprietorship, individual proprietorship, individual enterprise, and the one-person business.
A sole proprietorship is the oldest and the most common form of ownership. Some examples include small retail shops, doctors and lawyers practices and restaurants.
A sole proprietorship is the easiest form of business to organize. All one needs is some knowledge about business, start-up capital and knowledge of regulations. The only legal requirements for starting such a business are a municipal license to operate a business and a registration license to ensure that two firms do not use the same name. The organization costs for these licenses are minimal.
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A sole proprietorship offers the owner freedom and flexibility in making decisions. Major policies can be changed according to the owners wishes because the firm does not operate under a rigid charter. Because there are no others to consult, the owner has absolute control over the use of the companys resources. As mentioned earlier, the financial condition of the firm is the same as the financial condition of the owner. Because of this situation, the owner is legally liable for all debts of the company. If the assets of the firm cannot cover all the liabilities, the sole proprietor must pay these debts from his own pocket. Some proprietors try to protect themselves by selling assets such as their houses and automobiles to their spouses and relatives. A sole proprietorship may have difficulty in raising capital because lenders are leery of giving money to only one person who is pledged to repay.
A sole proprietorship can be dissolved as easily as it can be started. A sole proprietorship can terminate on the death of the owner, when a creditor files for bankruptcy, or when the owner ceases doing business.
WORD STUDY
