Characteristics of Business Ownerships Forms

	Proprietorship	Partnership	Corporation
Ease of formation	Very easy	Relatively easy	More difficult
Owner’s liability	Unlimited	Unlimited for general partners	Limited
Life of firm	Dies with the owner, unless heirs continue operating or sell the business	Surviving partners must deal with the deceased partner’s heirs	Can live beyond owners’ lifetimes
Separate legal entity?	No	No	Yes
Degree of control by Owners	Complete	May be limited for individual partner	May be very limited for individual stockholder

Test 1

1. If I had one million dollars, I (probably establish) a sole proprietorship.

A would probably establish

B will probably establish

C probably established

2. The day before yesterday we (invite) to the annual meeting by the Director.

A are invited

B were invited

C invite

3. Next year we ____________ invest the capital into this business.

A will can

B can to

C will be able to

4. If I (hear) any news, I (report) to the manager.

A will hear, will report

B will hear, report

C hear, will report

5. I haven’t seen my business partners ____________a long time.

A for

B in

C from

Unit 2. Financial management

Exercise 1. Expand on the statements:

1. The secret of reaping the greatest fruitfulness and the greatest enjoyment from life is to live dangerously. F.W. Nietzsche.

2. Time is money. Benjamin Franklin.

Exercise 2. Read the following international words and try to guess their meaning:

product

investor

manager

company

management

information

principle

firm

recommend

analyze

plan

coordinate

risk

system

vice-president

Exercise 3. Choose from the text the words with the following suffixes place them in the alphabetical order and translate them.

- ment – суффикс существительного

- tion – суффикс существительного

- al – суффикс прилагательного

Exercise 4. Read the following words and word combinations. Use them in sentences of your own.

to raise and spend money – заработать и потратить деньги

to affect every aspect of the business – влиять на любой аспект бизнеса

balance sheet – балансовый отчет

income statement – отчет о доходах

statement of cash flows – отчет о движении наличности

to rely on accounting – опираться на бухгалтерский учет

to add value to the business – добавлять ценность бизнесу

financial consequences – финансовые последствия

to maintain the present course – поддерживать настоящий (существующий) курс

to use the assets – использовать имущество

to determine the financial expectations – оценивать финансовые ожидания

to forecast – прогнозировать (предсказывать)

to communicate – общаться, сообщать, передавать

board of directors – совет директоров

Exercise 5. Read the title of the text and predict the main ideas of the text.

Exercise 6. Read the text and find out:

1. What do financial guidelines determine?

2. What is financial management?

3. What do financial managers use accounting information for?

4. Why are financial managers central to most businesses?

5. What are the functions of the financial managers?

6. What capabilities should the financial manager possess?

7. Who do financial manager have to work with?