Shareholders, flexible and adaptable, drawback, corporate tax, dividends, share the ownership, advantages and disadvantages, securities, sole proprietorships, a board of directors, unlimited liability, choosing its structure, a government charter.
1. One of the most important decisions to be made in organizing a new business is __________.
2. Different forms of business organisation sole proprietorships, partnerships and corporations have their __________.
3. Most small businesses start out as __________.
4. A sole proprietorship is __________ to changing times.
5. A sole proprietor has __________ for his businesss debts.
6. In a partnership, partners __________ of a single business.
7. A partnership does not pay __________ like corporations.
8. A serious __________ of partnerships is the threat of potential disagreement among partners.
9. The owners of a corporation are its __________.
10. The shareholders elect _________ to oversee the major policies and decisions.
11. Corporations have wider opportunities to raise capital through selling its _________.
12. Corporations are to be created under __________.
13. In addition to corporate tax, income tax is levied on shareholders __________.
Ex.8. Combine two parts logically to make complete sentences.
| The choice of the form of a business organisation is based on | a | all income generated by the business to keep or reinvest. | |
| A sole proprietorship is owned by one person, who has day-to-day responsibility for | b | for the actions of the other partners. | |
| Sole proprietors receive | c | information about their finances and activities. | |
| Sole proprietors may have problems in | d | between the business and its owners. | |
| In a partnership, the law does not distinguish | e | when ownership changes. | |
| Partnerships are relatively easy | f | attracting high-calibre employees. | |
| Prospective employees may be attracted to a partnership | g | the entrepreneurs vision regarding the size and nature of the business. | |
| Partners are jointly and individually liable | h | only for their investment in the stock of the company. | |
| Management conflicts in a partnership caused by disagreements may | i | running his business. | |
| A corporation does not dissolve | j | to double taxation. | |
| Shareholders are held accountable | k | to establish. | |
| Corporations are subject | l | adversely affect the business. | |
| Open (public) corporations are to disclose | m | if given the incentive to become a partner. |
Ex.9. Look through the text again and replace the words in bold with the linking words and phrases given below.
In view of, first and foremost, besides, like, at the same time, obviously, to start with, since, it is a fact that..., in order to..., generally.
1. An entrepreneur may choose to incorporate his business so that he could prevent his creditors from pursuing his personal assets.
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2. Shareholders have limited liability for the corporations debts. In general, they are accountable only for their investment in the stock of the company.
3. Considering various requirements, sole proprietorships, partnerships and corporations have their advantages and disadvantages.
4. A partnership pays only ordinary income tax because the co-owners use the profits gained as their personal income. Concurrently, they are jointly and individually liable for the actions of the other partners.
5. If we enumerate advantages of a sole proprietorship, more than anything else it is the easiest and least expensive form of ownership. In addition to this, it does not have to pay special taxes placed on corporations.
6. Clearly, corporations have a number of disadvantages. In the first place, the process of incorporation is costly and time-consuming.
7. Similar to proprietorships, in partnerships the law does not distinguish between the business and its owners.
8. It is well known that a lot of partnerships are dissolved at crisis times.
