X. Oral practice.

Exercise 22. Fill in the table and be ready to speak:

Corporation

Advantages	Disadvantages
1. ease in …	1. difficult and expensive to …
2. limitation of …	2. difficult to …
3. the opportunity of …	3. the greatest care of …, neglecting …
4. the financial power to …	4. more strictly …
	lesser
	6. pays …. (double ……..)

Exercise 23. Discuss another ad and ads of corporations.

XI Reading

Exercise 24. Read the text D:

Text D

Franchising

A very interesting form of business is franchising, because it combines some advantages of both corporations and small businesses, such as sole proprietorship or partnership. In franchising, a large company (corporation) allows one or several entrepreneurs (franchisees) to use the corporate brand name. But in return, a franchisee has to pay the company a part of her or his profits and also must observe the company's format. For instance, most McDonald's restaurants around the word are owned by franchisees with the McDonald's corporation as a franchiser. All the McDonald's fast food restaurants are practically identical whether they are owned by the corporation itself or by franchisees. That is the corporation's format that all franchisees have to observe.

Franchisees get training from the company that helps them manage their business and advertising. This continuous support is one of great advantages of franchising. Not less important is using the brand name of a company that is known and advertised nationally, or even worldwide. It is easier for a franchisee to raise money from banks than it is for a sole proprietor, because a franchisee has a large company's support. But there are disadvantages as well:

• a franchisee has less independence than other sole proprietors;

• he or she has to pay a part of his or her profits to the company (royalty payments);

• a franchisee cannot sell his or her business if he or she does not have a franchiser's agreement or doing so;

• renewal of the franchise is not automatic, so a franchisee can lose his or her franchise.

XII Comprehension

Exercise 25. Try to formulate definitions for the following terms:

•franchising

•franchiser

•franchisee

• royalty payment

Exercise 26. Summarize the advantages and disadvantages of franchising.

XIII Oral Practice

Exercise 27. Summarize the information from the text B, C and D.

Be ready to speak on the following plan.

1. Definition of sole proprietorship. Its ad and ads.

2. Meaning of partnership. Its ad and ads.

3. Meaning of corporation. Its ad and ads.

4. Definition of franchising. Its ad and ads.

Exercise 28.

1. Prove that a form of business is a form of ownership.

2. Choose any business in your home city that you know. List its advantages and disadvantages.

3. If you decided to go into business, would you choose:

   1. to open your own business as a single proprietor?

   2. to form a partnership?

   3. to start a corporation

   4. to run as a franchisee

Give your reasons.

Use phrases: I’m of the opinion that; in my view; I’m of the belief that; I’d conclude that; to my way of thinking; it seems to me; I’ve always been convinced that.

Exercise 29. Dialogue. You are consulting a visitor who is one of several people organizing a partnership. Fill in the answer’s to your visitor’s questions:

Visitor: We are five. Isn’t too many for a partnership?

You: No, …

Visitor: Partnership is pooling. Do partners pool any capital?

You: Certainly not. They also …

Visitor: What documents must we prepare?

You: You need to prepare …

Visitor: What is an Agreement on Capital and Dividend Share?

You: ……

Visitor: What does the statute regulate?

You: ……

Visitor: Can we write anything we like in the Statute?

You: No, ….

Visitor: Thank you. You’ve helped me a lot.

Exercise 30. Make up the dialogues of your own on the following situations. Dramatize them. Use useful phrases from Ex. 28 and Appendix 1.

Situation 1. You are going to start a business as a single proprietorship in your city. Ask your friend who is a prosperous businessman about its advantages and disadvantages.

Situation 2. You are a very good programmer. You are going to start working as a programmer for a big software corporation. Since you have some doubts about it, you are interested in your friend’s suggestion to start a partnership to develop software. Ask him all possible questions about his or her suggestion.

Situation 3.You are interested in franchising. Discuss with your friend which businesses are most convenient to franchise.