Language skills

Ex.11. Ask questions to which the following sentences may be answers.

1. Yes, it is. It helps to bring the other three together.

2. It is based on the entrepreneur’s vision of his future company’s nature and size.

3. They are sole proprietorships, partnerships and corporations.

4. It is the easiest and least expensive form of business organisation to organize and easy to dissolve, if required.

5. Because being small, they can react more quickly and successfully to changes at the market.

6. No, they do not. They have to pay only ordinary income tax.

7. Because they may be interested in owning a part of the business, while sole proprietors cannot provide this.

8. One of them is the fact that partners are personally liable for the company’s debts.

9. Yes, it does. It may end upon a partner’s withdrawal or death.

10. No, it is considered by the law as a unique entity.

11. Shareholders are.

12. The board of directors is.

13. They can transfer the ownership through selling their securities.

14. No, it is not permanent. It can be changed as a result of the business’s growing.

15. It can be incorporated.

Ex.12. Answer the following questions.

1. Why is entrepreneurship important?

2. Why would people want to launch their own business?

3. What factors do they consider when choosing the structure of their future business?

4. What forms of business organisation are there?

5. What are advantages and disadvantages of these forms?

6. Why are flexibility and adaptability of sole proprietorships an advantage?

7. What does “limited” or “unlimited liability” mean?

8. Why can partnerships attract more high-calibre workers than sole proprietorships?

9. Which form of business organisation can raise investment funds more easily?

10. Why are there more unincorporated businesses than incorporated ones?

11. How is a corporation managed?

12. What does “double taxation” mean?

Ex.13. Make a presentation of the topic “Forms of business organisation”.

Writing

Ex.14. Write a plan for a summary of Text A. Start with

1. Factors to be considered when choosing a form of business organisation.

2. ____________________________________________________________

3. _____________________________________________________________

Ex.15. Write a brief summary (25-30 sentences) of Text A.

Ex.16. Write an essay “Small business activity in a market economy” (100-150 words).

Discussion points

Ex.17. Discuss the following questions.

1. “A real entrepreneur is somebody who has no safety net underneath them”, said H.Kravis, co-founder of Kohlberg Kravis Roberts & Co. (KKR). What do you think he meant?

2. In what type of a company do people find a better possibility to realize their potential?

3. Prepare a short list of the questions that you would need to ask yourself before starting a business.

Example: How much money will I need?

Compare and discuss the questions you consider important with the questions other students have chosen.