The main forms of business organization

1. Business is a pattern of complex operations in the lives of people concerning all those functions that govern the productions, distribution, and sale of goods and services for the benefit of the buyer and the profit of the seller. At present the production control lies in the hands of so called entrepreneurs or individual business people. They usually organize and direct industry on the purpose of making business profits The Industrial Revolution led to some serious changes and, first of all, old forms of conducting business have been substituted by the now ones. This helped various branches of industry function better in changing conditions to which they had adapted. The profits increased. Today the main forms of business organization may be described in the following way.

2. The first form of Individual proprietorship can be presented as a form of business organization where the owner is in main charge of the business and he is responsible for it. Most of individual or single proprietorships are the forms of business ownership in farming, construction and many other industries. Unless an activity is specifically banned by law, no line of business is closed to an owner. Although individual proprietorship has obvious advantages, certain drawbacks can not be denied. Without any doubts, single owners are not able to invest large amounts of capital or, if they do so, they run a great risk of losing money, and having debts. This is called unlimited liability. Only in agriculture is the individual owner still a predominant figure.

3. Partnership is a form of business organization where two or more persons agree to combine their financial assets, labour, property, and skill or some or all of these things. A partnership contract usually includes general policies, distribution of profits, fiscal responsibilities, and a specific length of time during which the partnership is in effect. Despite the fact that most partners handle more business than an individual owner, almost all of partnerships are small businesses, usually in the sphere of law, medicine, real estate and retailing. A partnership can be dissolved if there is an agreement of the partners or one of the partners goes out of the partnership.

4. All the companies of Great Britain and the United States of America can be divided in the following way:

1. Partnerships.

2. Limited Companies and Joint Ventures.

Public Limited Company is an open company with limited liability. It is a company which has been registered and is a juridical person. The shares of such a company can be spread among the wide masses of people.

Private Company is a company the shares of which cannot be offered or sold to the wide masses of people. After the name of such a company the letters JM ltd (limited) are put.

Ответьте письменно на вопросы после текста.

1) What is a business?

2) How many forms are in the business organization?

3) In what way can all the companies be divided?

3.Какие предложения являются верными?

1) At present the production control lies in the hands of so called entrepreneurs or individual business people.

2) Partnership is a form of business organization where one person agrees to combine financial assets.

3) Public Limited Company is an open company with limited liability.