C: Vocabulary in context

Word meaning can be determined by the sentence. The following sen­tences indicate the meaning of the word directly as in a definition or indirectly by means of another element of the sentence. Read the follow­ing sentences and try to understand the meanings by using the context.

1. A sole proprietorship is a business owned and operated by one person.

2. The business operator must comply with the legal regulations. (Hint: What do you do with regulations? You either obey them or break them.)

3. The sole proprietor purchases the goods and equipment. The sole proprietor owns all the assets. (Hint: After he purchases, he owns.)

4. When he terminates his business, he simply sells the inventory and equipment. (Hint: Contrast this sentence with No. 3.)

5. If he is successful, he takes a lot of personal satisfaction in his enterprise. If he is unsuccessful, he might decide to close up shop.

6. His ability to borrow capital is determined by his personal wealth because his personal wealth serves as collateral to guarantee the loan.

7. He is entitled to keep all the profits of the business.

8. His personal property can be used to settle the debts. (Hint: What does a person do about his debts?)

9. He appreciates his freedom to make business decisions.

10. He bears the responsibility (is responsible for) his business decisions.

D: Matching

Match the expressions to others with similar meanings.

1. appreciates ___a. takes blame or credit for

2. comply with ___b. one-owner business

3. sole proprietorship ___c. things of value to a business

4. purchases ___d. goods

5. assets ___e. business

6. inventory ___f. go out of business

7. close up shop ___g. follow

8. is entitled ___h. is allowed by law

9. enterprise ___i. buys

10. bears responsibility for ___j. enjoys

11. borrow ___k. things he owns besides his business

12. personal property ___l. use something which belongs to someone else

E: Multiple choice

Many of the sentences and paragraphs in this lesson compare or con­trast certain aspects of business ownership; that is, they point to simi­larities or differences. For example, in Paragraph 2 two successive sentences begin: "If the sole proprietor is successful . . ." and "If he is not successful . . ." These two sentences begin with introductory clauses, one affirmative and one negative. They are opposites, so we might expect the results of these conditions to be opposite as well. Paragraph 4 contains the sentence: "Partners are like sole proprietors because they both own all the assets, owe all the debts ..." This sentence emphasizes similarities in the two forms of ownership. There are many words and phrases which indicate comparisons and contrasts to the reader or listener.

Words and Phrases Indicating Comparisons Words and Phrases Indicating Contrasts

in addition but

also while

and although

together not as

as unlike

like different

furthermore on the other hand

both however

another

as well as

Sometimes these words can help us guess the meaning of new vocabulary since when we hear or read them; we can expect to find either two comparable ideas or two contrasting ideas.

In the following sentences, try to determine the meanings of the underlined words from the context. Try to think of contrasts or opposites. Select the word which most nearly means the same as the underlined word.

1. The sole proprietor is liable for all the debts of his enterprise. He owns all the assets, but he owes all the liabilities.

a. inventory b. proprietorship с capital d. debts

2. The different forms of organization are taxed differently on their profits. They also have different legal obligations with regard to their debts in the event of bankruptcy.

a. case b. aspect с cost d. failure

3. is personal assets can be used to settle the debts.

a. wealth b. capital с freedom d. inventory

4. The articles of co-partnership explain how the partnership is started and how it should be dissolved.

a. initiated b. sold с ended d. regulated

5. When the sole proprietor stops doing business, he simply sells his inventory and equipment.

a. labor b. machines for making с debts d. profits goods

6. In addition to the benefits of running a sole proprietorship, there are also some unfavorable aspects.

a. profits b. disadvantages c. assets d. satisfaction

7. He has freedom to make his own decisions, but he bears sole responsibility for errors when he makes a wrong choice.

a. profits b. loses с. takes all the blame d. does not have freedom

8. His responsibility for debt can be greater than his investment in the business.

a. partnership b. assets с. profits d. capital

9. A partnership doesn’t have some of the disadvantages of a sole proprietorship, but it shares some similarities.

a. benefits b. problems c. agreements d. associations

10. If the owner of a partnership wished to stop doing business, both managers would have to agree on how to dissolve the partnership.

a. partners b. corporations c. shops d. profits

F: Comprehension questions

Paragraph 6 discusses the corporation. You have noticed that the dis­cussions of the sole proprietorship and the partnership had some simi­larities of form. The outlines parallel each other. Read the following questions about Paragraph 6.

1. From the first sentence do you expect that the discussion of the corporations will parallel the discussions of the sole proprietorship and partnership in form?

2. Are the other two forms of legal organization more similar to each other than to the corporate form of ownership?

3. What is a difference in the way a corporation raises capital?

4. What happens to the profits of a corporation?

5. How can a stockholder terminate his interest in a corporation?

6. If a corporation goes bankrupt, how does this differ from the bank­ruptcy of a sole proprietorship or partnership?

7. What is a problem associated with the size of a corporation?

G: Rephrasing words

Rewrite the following sentences. Replace the words in italics with expressions from the text which have the same meaning.

1. The sole proprietor may keep all the profits derived from his busi­ness.

2. A sole proprietorship is the easiest to initiate and the easiest to terminate.

3. There is the opportunity to be successful, but also the owner takes a chance on financial ruin.

4. His personal assets can be used to pay the debts in the event of bankruptcy.

5. The joint owners owe all the liabilities and pay personal income taxes on their part of the profits.

6. The ability to borrow money is greater in a partnership because the personal property of the partners can be used to get a loan.

7. In the case of business failure, the responsibility of the corporation for its debts is limited.

8. The board of directors keeps part of the profits to increase the capital of the corporation.

9. The stockholders pay personal income taxes on their profits from stock.

10. The activities of the corporation are closely watched by the govern­ment.

Date: 2015-02-16; view: 1439