ЧАСТЬ V. УЧЕБНЫЕ МАТЕРИАЛЫ ДЛЯ ЧТЕНИЯ И ПЕРЕВОДА Text 12
SOLE PROPRIETORSHIP, PARTNERSHIP, CORPORATION
1.There are three forms of organisation of your business. These forms are the sole propiertorship, the partnership and the corporation. Which of these forms of organization you choose depends on such questions as the size of your business, whether you are the only owner of your business or you have partners
2. Sole Proprietorship. A sole proprietorship is the simplest organizational form. There is one owner of the business, who usually takes the title of President. So he or she can make any decision without consulting anyone. Such kinds of business are in the service industries, such as repairing shops, restaurants, etc.
Partnership. A partnership means that there is more than one owner to carry out business. And each partner declares his or her share of profit or loss on the personal income tax return.
There is a special type of partnership, called a limited partnership, where the limited partner is not involved in the management of the firm.
This form of organization is useful in such professional fields as law, insurance, and some industries, for example, oil prospecting.
But partnership has some disadvantages. Partnership business fails when one of the partners loses his interest or disagrees with the other.
5.Corporation. A corporation is a more formal way of organization. It is established for the purpose of making profit and operated by managers. Corporation involves registration with a state department of commerce. There are some advantages, such as being able to attract financial resources, and to attiract talented specialists and managers due to high salaries. In general, this form is economically better for business when its profit reaches a great sum of money.