Australia

Australia's prosperity has been founded on its natural re­sources. It produces almost every mineral from gold to uranium. In the Pilbara region of Western Australia whole mountains are being destroyed in order to extract 112 million tonnes of iron ore per year. Diamonds are also mined and the Argyle mine is the world's largest.

Traditionally, Australia was a farming country, even though only 55 per cent of the land can be used for grazing and six per cent for crops. In spite of this, Australian wealth was founded on wool, cattle and wheat. It is still a major exporter of food, making it the breadbasket of Asia. In recent years Australian wines and beers have made an international name for themselves. Beer has always been a favourite drink in Australia, though unlike the British, Australians prefer their beer ice-cold.

Agriculture and mining, however, employ comparatively few people. Tourism is now Australia's largest industry, employing six per cent of the population. More than three million visitors come to Australia each year — many of them from Japan, Korea and Singapore.

With a well educated population and Asian markets nearby, Australia is now developing modern, knowledge-based industries, such as medical science, solar energy, communications and com­puters.

Ответьте на вопросы.

1. What raw materials is Australia rich in?

2. What was Australian wealth founded on?

3. Which branches of industry is Australia developing?

UNIT 10

LEGAL FORMS OF BUSINESS:

SOLE PROPRIETORSHIP AND PARTNERSHIP

Vocabulary

Переведите и выучите слова.

Обратите внимание на произношение интернациональных слов, переведите их без словаря.

Сa pital (n); firm (n); part ner (n); risk (n, v); func tion (n, v); per son (n); personal (a); in vest (v); in ves tor (n); in vest ment (n); li quidate (v); liqui da tion (n); act (v); ac tive (a); ac tively (adv); ac tivity (n); con sult (v); consul ta tion (n); fi nance (n, v); fi nan cial (a); li mit, (n, v); limi ta tion (n); li mited (a); un li mited (a); ma nager (n); ma nage (v); ma nagement (m); obli ga tion (n); for mal (a); for ma lity (n).

Text

Having decided to set up your own business, you shouldchoose the legal form it will take. There are three legal forms to choose from: sole proprietorship, partnership and corporation (limited company). No one form is better than another. Each has its advantages and disadvantages. The important thing is to be sure the chosen form is best for you.

Many businesses are sole proprietorships, which means that they are owned and run by one person. Settingup a sole proprietorship is easy, it does not need many formalities. As a sole trader, a person is fully responsible for the success or failure

of his / her business. Any profits go to the owner, any losses are his or her responsibility as well. If losses become greater than the investment, the owner is responsible for paying them, even if this touches all personal assets. This feature is called unlimited liability.

There is no legal difference between the owner and the business. As the business is personal to the owner, it is liquidated upon the death of the owner. Finances for a sole trader are usually limited to his or her own savings or to what can be borrowed from family or friends. Therefore sole proprietorships are usually small businesses.

When a proprietor wants to expand a business, one way to do so is to form a partnership, a business formed for profit by two or more co-owners. The rights and duties of a partnership are regulated by laws and by a legal agreement made by the partners. Usually an agreement states how much capital each partner has put up, how profits will be shared, and how the business will be run between the partners.

All partners are legally responsible for any of the firm's activities, in other words, each partner has unlimited liability, meaning that all partners are liable for the debts of the business. They share the risks and the profits or losses associated with their business.

A way to avoid the risks of unlimited liability is to form a limited partnership. In a limited partnership there are two kinds of partners — general and limited. General partners have unlimited liability for the business. The liability of limited partners islimited to the amounts of their investments. However, in exchange for this limited liability, limited partners are usually not allowed to take an active part in the firm's management. There must be at least one general partner in such kind partnership.

Ответьте на вопросы к тексту.

1. What legal forms of business are described in the text?

2. How many people can own a sole proprietorship?

3. What liability has a sole trader for his / her business?

4. What happens to a sole proprietorship if its owner dies?

5. How can a person raise funds for setting up a new business?

6. What kind of business is partnership?

7. How are partners' rights and duties regulated?

8. What is the liability of partners for runninga usualpartnership?

9. What kinds of partners are there in a limitedpartnership?

10. Which partners have unlimited liability for the business in such kind of partnership?

Подберите правильное толкование следующих терминов:

a) A sole trader e) Assets

b) A self-employed person f) Debt

c) Sole proprietorship g) Bankruptcy

d) Partnership h) Unlimited liability

1. A person who is working for himself and is not the employee of someone else.

2. An individual acting in business on his own.

3. Full financial and legal responsibility for the operation of the business.

4. Something that is owned by a person or company, such as money, a building, a car.

5. A sum of money borrowed from someone and to be given back.

6. A firm owned by just one person.

7. A business owned by two or more co-owners.

8. The condition of being unable to repay the debts of the creditors.

Выберите нужную форму слова.

1. One of the advantages of a sole (property /proprietor / proprietorship) is that an (own / owner / ownership) can make (decide / decisions / decisive)quickly and (decision / decisive / decisively) withouthaving to consult others. And an individual (propriety / proprietor / proprietorship), by law, paysfewer taxes than does a corporation.

2. As a sole trader, you (decide / decision / decisive on hiring and firing (employ / employees / employment), on better ways of (invest / investor / investment); in fact, you take full (responsible / responsibly / responsibility) for your business. Ifthe business is (profit / profitable / profitably), you can enjoy all the advantages of being self-employed.

3. There are disadvantages to this form of business, however. A sole (property / proprietor / proprietorship) is (responsible / responsibly / responsibility) for all business debts or legal judgments against the business. If the debts exceed the assets of the business, your (own / owner / ownership) (person / personal / personally) assets -home, automobile, savings, (invests / investors / investments) — can be claimed by (credits / creditors). In other words your financial (liable / liability) is unlimited.

Закончите реплики диалога.

Alice: Hello, Jim. I'm glad you're not in a hurry and we have the time to talk today. Can you give me a piece of advice?

Jim: Sure.___?

Alice: You know, I've always been good at cooking. It interests me. I___business - a cafe.

Jim: Good idea. ___alone?

Alice: Yes, I'd like to be fully responsible for it, to____ myself.

Jim: Well, you should know that if you go into business alone it is called___. It is very easy to_____, you can / have / needn't ___.

Alice: It sounds___.

Jim: Wait a moment. I believe I have to tell you about___.

Alice: What do you mean?

Jim: First of all, the most important risk is___.

Alice: So if the business fails, I'll___.

Jim: That's what I mean. And besides it isn't easy ___the necessary funds.

Alice: Well, thank you. I'll have to think it over carefully.