Doing Business Together with a Partner

It’s common knowledge that doing business has become very popular everywhere. At present it is a comparatively new and perspective tendency in modern life. So, not long ago I made up my mind to go into business. Following my lawyer’s advice I chose small business in the field of services. It goes without saying that I weighed all pros and cons before making a decision. I understand that production of goods is very profitable but provision of services is profitable too. After all, people do business for profit.

At first I wanted to be a sole trader, but then I changed my mind and organized a partnership. I went into business with my friend Jean. She has a solid background in accounting; she is good at keeping the books and ordering stock. As for me, I enjoy selling and like talking to customers.

So far our business is going pretty well, and the shop is beginning to attract more customers. I won’t be boasting if I say that we begin to make a good profit. By the way, we have a certain arrangement for distribution of profits and losses. They are equally shared. I hope to be in business for a long time.

Ex. 8. Compose a story, using the following words in the proper form.

How I Started my Business

not long ago

to make up one’s mind

to set up a small business

to be frank with you

to have no experience in

to consult the lawyer

to advise

to choose a business

in the field of

production of goods

provision of services

to weigh all pros and cons

to have to solve many problems

what customers to serve

how many customers to serve

how to attract them

to manage

to find a successful solution of

to be satisfied with

to make progress

how my business in prospering

to make big profits

Ex. 5. Read the text and do the tasks.

The Main Forms of Business Organization

Business is production, distribution, and sale of goods and services for the benefit of the buyer and the profit of the seller. In the modern world the control of production is largely in the hands of individual business people or entrepreneurs, who organize and direct industry for gaining profit. The main forms of business organization are described below.

Individual Proprietorship (Sole Trader or Sole Proprietor)

This is the simplest way of starting a business. You are self-employed and fully responsible for all the aspects of the management of your business. In this form of organization the owner is in sole charge of the business and is responsible for its success or failure. Any line of business is open to the owner.

Although this form of small business has its advantages, it has certain drawbacks. In the first place the single owner is seldom able to invest as much capital as can be secured by a partnership or a corporation. If single owners are able to invest large amounts of capital, they run great risk of losing it all because they are personally liable for all the debts or their businesses. This is called unlimited liability.

Partnership

Two or more people starting a business together can set up a partnership. All partners are responsible for the debts of the partnership and profits and losses are shared between them.

The agreement to form an association of this nature is called a partnership contract and may include general policies, distribution of profits, fiscal responsibilities, and a special length of time during which the partnership is in effect.

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