Partnerships.

A partnership is one of the forms of business organization. There are different types of partners in partnership: general partner, limited partner, silent and secret partners.

General partner has unlimited liability. Limited partner has limited liability. Silent partner is known to the public as a member of the firm but without authority in management. Secret partner takes part in management but is not known to the public.

Law, insurance, stockbrokerage, real estate and oil prospecting may have the form of the partnership.

There are some advantages in partnership:

- a big capital;

- diversified management;

- they are easy to form;

- they get tax benefits from the government.

There are some disadvantages in partnership:

- unlimited liability;

- partners may disagree with each other.

Active vocabulary

1. Profit – прибыль

2. general partner – общий партнер, несущий полную юр. ответст-ть

3. limited partner – партнер с ограниченной юр. ответственностью

4. silent partner – партнер без права голоса

5. secret partner – секретный партнер (с правом голоса, но неизвестный общественности)

6. law – юриспруденция

7. insurance – страхование

8. stockbrokerage – биржевое маклерство

9. real estate – недвижимость

10. oil prospecting – добыча нефти

11. quarrying industries – добывающие промышленности

Corporations.

A corporation is one of the forms of business organization. There are some types of corporations: private and governmental. Educational, religious, charitable institutions can also incorporate. State universities, state hospitals and city owned utilities are governmental corporations. Usually such corporations do not issue stock and are nonprofit.

There are several advantages of the corporate form of ownership:

- the ability to attract financial resources;

- it can invest capital in plants, equipment and research;

- it can offer higher salaries and attract talented managers and specialists.

There are some disadvantages of the corporate form of ownership:

- government regulation;

- profit sharing;

- taxes.

Active vocabulary

1. To establish – учреждать

2. stock certificate – сертификат на акции

3. stockholder – акционер

4. to attract financial resources – привлекать финансовые ресурсы

5. to offer high salaries – предлагать высокие зарплаты

6. to attract a large amount of capital – привлекать большой капитал

7. educational, religious, charitable institutions - образовательные, религиозные, благотворительные учреждения

8. to issue stock – выпускать акции

9. nonprofit – неприбыльный

10. to reinvest – вкладывать еще раз

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