Word formation. Complete this table by filling in the correct forms.

Verb	Noun
trade
share
	employer
hold
	entrance
	suit
limit
pay
	list
risk

 

Match the columns.

a.

1. to enter into 2. to pay 3. to raise 4. to go out of 5. to run 6. to employ 7. to share 8. to find

a. liability to debts b. property at risk c. debts d. capital e. contracts f. business g. people h. profits

 

B.

1. business 2. legal 3. sole 4. stock 5. share 6. listed

a. trader b. shares c. exchange d. capital e. entity f. person

 

Fill in the gaps with prepositions if necessary.

1) The state may exercise control ___ your business.

2) A sole proprietor is subject ___ full personal responsibility ___ all his debts.

3) If you are a sole proprietor you may engage ___ any type of business you choose.

4) You are to comply ___ any laws that are applicable ___ the type of business you operate.

5) You are entitled ___ all the profits the business makes.

6) A sole owner is personally liable ___ all debts the business incurs.

7) Partners may carry ___ almost any kind of business activity they wish.

8) The Partnership Agreement sets ___ the duration of the partnership.

9) If the company goes ___ ___ business, the responsibility of each shareholder is limited ___ the amount that they have contributed.

Read the text and decide whether the statements are true (T) or false (F).

1) If you are a sole proprietor, you are free from the government control.

2) To start business a sole proprietor has to meet a lot of formal requirements.

3) A sole proprietor risks his own money.

4) A general partnership may be formed by at least two persons.

5) Partnerships do not pay federal income tax.

6) In a limited partnership the general partners have very limited rights in its management.

7) In a limited liability companyeach member pays taxes individually.

8) If a private limited company goes out of business, the liability of each shareholder does not exceed the amount that they have contributed.

9) A public limited company can sell its shares only to its shareholders.

10) A corporation is established by Acts of Parliament.

11) The owners of a corporation are its investors.  

12) The shareholders play an active part in the day-to-day management of a corporation.

 

Chose the phrase which best completes each statement. Sometimes more than one variant is possible.  

1) The state has maximum control over …

a. partnerships

b. corporations

c. public limited companies

d. private limited companies.

2) It is enough to pay a license fee and follow the law if you want to start…

a. limited partnership.

b. sole proprietorship

c. corporation

d. public limited company.

3) You have the greatest liability in case of …

a. corporation.

b. private limited company.

c. sole proprietorship

d. partnership.

4) You are entitled to the highest per cent of profit in case of …

a. limited partnership.

b. sole proprietorship

c. corporation

d. public limited company.

5) This type of business organization has to pay taxes twice ….

a. sole proprietor.

b. partnership.

c. public limited company.

d. corporation.

6) The Partnership Agreement sets out …..

a. the duration of the partnership.

b. the way profits, losses and running costs are distributed.

c. the amount of investment of each partner.

d. the way the partnership is taxed.  

7) In a limited partnership the main investors are ….

a. the general partners.

b. the limited partners.

c. the sleeping partners.

8) If this type of a company intends to raise capital, it will sell its shares to the general public ….

a. partnership.

b. corporation.

c. public limited company.

d. private limited company.

9) The shareholders in a corporation ….

a. get profit from the business.

b. participate in the management process.

c. have liability for debts.

d. do not pay personal income tax.

 

 

SPEAKING