H: Writing and organizing a paragraph

The topic sentence of a paragraph tells us what the paragraph is about. It should state the ideas which are going to be discussed in the para­graph. The last sentence is often a summary. Sometimes the concluding sentence of a paragraph does not only summarize what has been said, but may also point out another side of the topic which has not been discussed.

Write a paragraph emphasizing the similarities between a sole pro­prietorship and a partnership. In your first, or topic sentence, write what the similarities are. Then write two sentences about each simi­larity. Conclude your paragraph by mentioning that besides these simi­larities, there are some differences.

Glossary

Ability:a skill or a talent; the capacity or capability to do something.

He has the ability to type 60 words per minute.

This company has the ability to increase production using the present equipment.

Because of my experience as a banker, I have the ability to make financial decisions.

Access:the means of getting to something.

A corporation has a greater access to capital than does a sole pro­prietor.

Articles of co-partnership:the agreement telling the terms and condi­tions of a partnership.

The articles of co-partnership should also provide a method of selling the business.

Articles of incorporation:the agreement telling the terms, conditions and purposes of a corporation. These must be filed in the state where the corporation is chartered.

My lawyer will draw up the articles of incorporation.

Asset:(often plural) anything of value to a company. Anything which can be sold or converted into cash.

The partners each own a share of the assets of the partnership.

Inventory is a current asset because it will be sold during that business year.

Bankrupt:unable to pay one's debts and legally released from the liability.

His business went bankrupt because of poor management and bad financial decisions.

Bills:debts; money which must be paid to someone for a service or product received.

The bill for my telephone service arrives today.

Most suppliers want you to pay the bill within thirty days.

Board of directors:a group of persons elected by stockholders to run a corporation.

The board of directors has decided to pay a dividend of $5 per share. Capital:the money which owners or stockholders invest in a business.

We need some capital in order to purchase new production equip­ment.

Chief executive officer (CEO):the top manager or director of a company.

The board of directors has hired a new chief executive officer tor the corporation.

Comply: obey

The corporation must comply with all the regulations which pertain to it.

Corporation:a group of persons granted a charter to do business as a separate unit with its own rights and responsibilities.

Large businesses are operated as corporations because capital can be easily raised and liability is limited.

Dissolve:to break up a partnership or corporation.

The partnership was dissolved because the two partners wanted to have their own businesses.

Dividends:a share of the profits of a corporation which is given to the stockholders.

The dividend will be paid to owners of record on June 30.

Enterprise:a business, particularly one privately owned.

If the sole proprietor wants to quit, he can simply find someone to purchase his enterprise.

Entity:a separate unit for ownership or legal purposes.

As a separate entity a corporation can own property apart from the individual stockholders.

Equipment:machinery or tools which a business uses for production and operation.

By using new equipment, the company hopes to be able to increase production and reduce costs.

Expertise:special knowledge or ability.

This accountant has expertise in financial planning.

Financial:refers to money or the management of money.

This company is in good financial condition.

The sole proprietor makes all his own financial decisions.

Income tax:a tax which is based on the amount of money a person or company receives for labor, services, or products, and which cannot be added to the price of the labor, services, or products.

The owner of a sole proprietorship pays personal income tax on the profit he receives. The business itself pays no tax.

Inventory:the amount of goods, merchandise, or materials on hand.

Once each year the owners of the store must record all their inventory in order to know which goods they have on hand.

Some new computerized cash registers are able to keep track of inventory.

Liability:(often plural) debt or legal responsibility.

The assets and liabilities of the company must be listed on the balance sheet.

The liability of a corporation is limited to its assets.

The sole proprietor has all the liabilities of his business.

Limited:restricted; not allowed to exceed a certain amount.

A corporation's liability is limited to the value of its assets.

Ownership:refers to a right a person has to things that belong to him.

The ownership of a sole proprietorship can be transferred if the proprietor wants to sell it.

In order to sell a car, you must have an ownership certificate. Private ownership of property is an American tradition.

Partnership:a business owned by two or more individuals.

The owners of a partnership share in the operation and profits of the business.

Profits:the amount of income above costs.

The profits have increased due to a decrease in the cost of raw materials.

Proprietorship:ownership of a small business.

This restaurant is operated as a sole proprietorship. It is owned by one individual.

Purchase:buy.

The individual owner can decide whether or not to purchase new tools and equipment.

Satisfaction:a feeling of pleasure or contentment.

Many small businessmen have the satisfaction of being their own bosses.

Securities and Exchange Commission (SEC):the government commis­sion designed to protect individuals who purchase shares of stock from publicly held companies.

A copy of the corporation's balance sheet must be filed with the SEC.

Date: 2015-02-16; view: 1009