Unit 8 Organisation, Іноземна мова

Unit 8 Organisation

Vocabulary

In order to be able to discuss organisation and its structures you need to consider the definition of organisation and the related terms. For this purpose you can use the following information resource: 

http://quizlet.com/8761764/

forms-of-business-organizations-flash-cards/

Read and listen to the terms and their definitions.

Language focus: practise spelling in the Speller section, then go to Learn to check up your knowledge of the terms. Use the same information resource: 

http://quizlet.com/8761764/

forms-of-business-organizations-flash-cards/

Reading

Read the article by Neil Kokemuller to get to know about the opportunities for investing in different types of businesses

Information resource: 

http://www.ehow.com/list_6836923_types-can-invest-his-money.html

Types of business organizations that an entrepreneur can invest his money in

Each type of business organization has inherent strengths and weaknesses that must be taken into account before an investment decision. Some of the most important factors that can impact an investor's decision on how to invest could include the amount of capital required, rules and regulations for the business, preference for individual or partnership investments, and tax consequences of the investment.

Sole Proprietorship

Generally the most simple of business setups, a sole proprietorship is operated by an individual. In its simplest form, a sole proprietorship is an extension of the individual, which means you can usually include earnings from your business on your individual tax return.

An advantage of this type of investment is that you are largely responsible for the success or failure of the investment and you control most of the important decisions that affect the result.

Partnerships

A partnership has similar utilities to a sole proprietorship, yet is an arrangement between two or more parties to enter a business relationship. Partners decide how much each party is to invest in the business and what share of ownership each partner carries.

While somewhat similar in scope to a sole proprietorship, a partnership adds the challenge of involving other stakeholders in your business. This makes decision-making more complex, but it does allow you to share the burdens of financial responsibility, and incorporates a broader range of skills, knowledge and experience.

Corporations

Corporations are owned by shareholders who may have different levels of ownership. Corporations are taxed on profits and shareholders must pay taxes on earnings.

Investment into a corporation is a relatively simple process as there are thousands of publicly trade companies accessible through an online broker. You bear little burden for high-level decision-making and more often make your investment decision based on your analysis of the company and its potential. Investment gains occur when company and share values increase and losses result if they decrease.

S Corporations

Some small-business owners and partnerships elect to apply for status as an S Corporation, often in lieu of the popular Limited Liability Company (LLC). S Corporations must have fewer than 100 shareholders and must meet additional restrictions. Shareholders report individual earnings on personal returns, which avoids double taxation faced by regular corporations and shareholders.

An S Corporation offers an investor similar functional benefits to a partnership or LLC. Your investment could be major or small, depending on the size of the business and number of shareholders. The tax incentives are often a primary motivator to invest in this type of entity as opposed to a partnership or regular corporation.

Limited Liability Company

Many small-business entrepreneurs and partnerships form Limited Liability Companies because of a key benefit of limited personal liability for owners with regard to the business' actions and debts. This business structure ideally protects the individual investor from ruin if the business goes under.

LLCs are a popular form of business investment for an entrepreneur because they expands on the benefits of sole proprietorship or a partnership by offering better risk management.

Answer the questions:

1. What are the main types of organisations?

2. What are the key differences between them?

3. Which of the organisations provide the best opportunities for investment?

Grammar review

Noun combinations

We can combine two or more nouns in several ways:
1. We use 's (possessive) to express a relationship between a person or organisation and another person or thing.
Julia's desk 
her husband's car
This very often means that the relationship can be expressed using "have".
Julia has a desk. 
Her husband has a car.
2. When two (or more) nouns are used together, the first nouns function as adjectives and describe the last noun.
a business card
a job description
a company credit card
a management training program
3. Two nouns are joined by "of" when the ideas are more abstract
the cost of living
independence of mind
4. Some compound nouns are written as one word.
database
answer phone
letterhead
headquarters
5. When compound nouns are used with a number in expressions of measurement, the first noun is singular.
a six-lane motorway
a four-day week
a five-year-old boy

For more information see Market Leader. Course book. Intermediate business English/ D.Cotton, D.Falvey, S.Kent: Longman, 2001 (p. 137) [1]

Check your understanding of grammar and do the exercises:

http://www.better-english.com/grammar/nounnoun.htm

http://englishzone.mx/Level03/L2U10b.htm

Language focus: to check up your knowledge of organisation forms play the game Scatter, then do the Test. Use the information resource: 

http://quizlet.com/8761764/

forms-of-business-organizations-flash-cards/

Skills: Socialising

Improve your business socialising skills. Listen to the conversation and put down some useful expressions for making business contacts when you're outside the office (Part 12).

Use the information resource:

http://www.bbc.co.uk/worldservice/learningenglish/

general/talkaboutenglish/2009/02/090211_tae_bltg.shtml 

For more information see Market Leader. Course book. Intermediate

business English/ D.Cotton, D.Falvey, S.Kent: Longman, 2001 (p. 62-69) [1] 

Revision: check up your knowledge of the topic at 

http://www.tutor2u.net/business/quiz/limited-companies/quiz.html

З повагою ІЦ "KURSOVIKS"!