Vocabulary Building Introduction

Sometimes the meaning of a new word can be learned by analyzing the word. Analysis means looking at the different parts of something. The word ownership, for example, is made up of the verb own followed by two suffixes, -er and -ship. Sometimes when a suffix is added to a word, the spelling is changed. Close analysis of the word will show its parts.

A: Word analysis

Read Paragraph 1 and make a list of the words which are formed with the suffixes: -ation, -tion, -ent, -ence, -ity, and -ship.

Which of these words are used as nouns? Analysis of the sentences will reveal the different parts of the sentences: the subjects, the verbs, etc.

B: Vocabulary fill-ins

Paragraphs 1 and 2 contain several nouns which are derived from verbs. Read Paragraph 2. Study the nouns and the verb forms listed below.

Differ difference own owner, ownership

Continue continuity decide decision

Equip equipment satisfy satisfaction

Bankrupt bankruptcy

In the following sentences supply the correct verb or noun from the list above.

1. The sole proprietor can _______________ for himself if he wants to form a new business.

2. The ________________ can keep all of the profits of the business.

3. The proprietor made a ___________________ to purchase some new

4. The sole proprietorship, partnership, and corporation ___________ in the manner in which they raise capital.

5. If the owner makes the wrong decision, it may. _____________ the business.

6. The proprietor doesn't wish to ______________ his enterprise, because he has been unsuccessful and he doesn't get any ________________ from his efforts.

7. It takes capital to purchase inventory and________________ the workshop with the necessary tools.

8. We try to ____________ the customers so that they will _______________ to shop here.

C: Vocabulary in context

Word meaning can be determined by the sentence. The following sen­tences indicate the meaning of the word directly as in a definition or indirectly by means of another element of the sentence. Read the follow­ing sentences and try to understand the meanings by using the context.

1. A sole proprietorship is a business owned and operated by one person.

2. The business operator must comply with the legal regulations. (Hint: What do you do with regulations? You either obey them or break them.)

3. The sole proprietor purchases the goods and equipment. The sole proprietor owns all the assets. (Hint: After he purchases, he owns.)

4. When he terminates his business, he simply sells the inventory and equipment. (Hint: Contrast this sentence with No. 3.)

5. If he is successful, he takes a lot of personal satisfaction in his enterprise. If he is unsuccessful, he might decide to close up shop.

6. His ability to borrow capital is determined by his personal wealth because his personal wealth serves as collateral to guarantee the loan.

7. He is entitled to keep all the profits of the business.

8. His personal property can be used to settle the debts. (Hint: What does a person do about his debts?)

9. He appreciates his freedom to make business decisions.

10. He bears the responsibility (is responsible for) his business decisions.

D: Matching

Match the expressions to others with similar meanings.

1. appreciates ___a. takes blame or credit for

2. comply with ___b. one-owner business

3. sole proprietorship ___c. things of value to a business

4. purchases ___d. goods

5. assets ___e. business

6. inventory ___f. go out of business

7. close up shop ___g. follow

8. is entitled ___h. is allowed by law

9. enterprise ___i. buys

10. bears responsibility for ___j. enjoys

11. borrow ___k. things he owns besides his business

12. personal property ___l. use something which belongs to someone else