1. Translate the following derivatives paying attention to the suffixes:

efficient – efficiency – efficiently; severe – severely – severity;

to supplement – a supplement – supplementary; to adapt – adaptation –adaptive; to tend – tendency; sure — to insure – insurance; to produce – production – productive – productivity; legal – legally – illegally;

to own – own – owner – ownership; enterpriser; to borrow – borrowing.

2. Consult a dictionary and put down all the meanings of the words share and due.

3. Translate the following sentence paying attention to the word cushion. Explain the use of the word in the text:

A firm that loses can still repay its debts as long as the loss is no larger than the owner’s own investment in the business, for the owner’s share of the total wealth, the owner’s equity, provides a cushion to protect the creditors.

Text 1 The Sole Proprietorship

a). Read the text, write down the first sentence of every paragraph. Explain their interconnection.

b). Look through the text and say if the sentences make up a plan of the text.

c). Find the definition of a sole proprietorship.

d). Find the sentence “…Moreover, identification of the owner with the business…” and explain it in English. Find a sentence in the first paragraph to express the same idea.

e). Translate the text.

The simplest type of firm is the sole proprietorship. This is a firm owned by a single person. All the firm’s decisions are centered in him, all profit from the firm is his, and he is personally liable for all the firm’s debts. In a sole proprietorship, there is no legal distinction between the personality and possessions of the owner and those of the firm. In fact the owner is the firm, and is personally responsible for everything the firm does.

There are several advantages to the sole proprietorship. It is legally simple and easy to establish. Moreover, the identification of the owner with the business provides a powerful incentive for efficient operation. It encourages careful weighing of the risks involved in the undertaking. Any profit the firm makes accrues directly to the owner, but he is also personally liable for losses. Not only can he lose all he has invested in the firm directly, but, if this is not enough to cover the firm’s debts, he can be sued personally for the balance.

Exercises

1. Find the English equivalents in the text:

частное предприятие, владеть фирмой, доход фирмы, отвечать за долги фирмы, имущество владельца, учредить предприятие, эффективная операция, взвесить риск, предприятие, доход, владелец фирмы, делать вклад в фирму, оплатить долги, привлечь к судебной ответственности.

2. Match the words from list A with their synonyms from list B:

A. type, proprietorship, to center, profit, to be liable, distinction, owner, sole, incentive, efficient, to encourage, to involve, undertaking, possession.

B. private, enterprise, to include, property, to stimulate, successful, possessor, stimulus, difference, to be responsible, income, to concentrate, ownership, kind..

3. Give derivatives of the following words and translate them:

proprietor, person, to possess, to own, to take, busy, profit, to lose.

4. Give possible translations of the words:

sole, liable, encourage, property, firm.

5. Write definitions for the following notions:

sole proprietorship, debt, owner of the firm, to invest in the firm, to cover the debts.

6. Answer the questions:

1. What type of firm is called the sole proprietorship?

2. What is the role of the owner in a sole proprietorship?

3. What are the advantages of the sole proprietorship?

4. What are the possible risks involved in the undertaking?

7. Render into English:

Частное предприятие – это фирма, которой владеет один предприниматель. Он принимает решения и несет ответственность за все долги фирмы. Частное предприятие имеет свои преимущества и недостатки. Весь доход фирмы принадлежит владельцу, что способствует его эффективной работе. Но в случае несения убытков владелец может потерять все, что вложил, и должен заплатить все долги фирмы.