República Bolivariana de Venezuela

Ministerio del Poder Popular Para La Educación Superior

Universidad Nacional Experimental Simón Rodríguez

Núcleo: Chacao

Facilitador: Autor:

Caracas, octubre de 2014

ELEMENTARY READER IN ENGLISH
BUSINESS ASSOCIATIONS

People transact business in different ways. The simplest one is the sole proprietor
ship. This means that a business, for example a ship, is owned by only one person.
This is also called sole trader. There are associations called partnerships in which
two or more people decide to enter into business contributing either with their work
(working partner) or with their capital (sleeping partner). In general a contract is
signed specifying each person’s obligations and the amount of profits to be
received. This contract is very important because it provides solution to conflicts in
case of disagreements or problems between partners. In most cases partners
invest equal capital, get equal profits, and share authority. Partnerships are also
categorized as of LIMITED LIABILITY, which means that each partner is liable, in
case of bankruptcy, only for the money invested in the business. On the other
hand, in case of partnership of UNLIMITED LIABILITY, partners are responsible
not only for the money invested in the business but also for their private assets.

A Corporation is another kind of business association. It is owned by stockholders

who invest money in a business buying shares. A stockholder owns a part of the
company proportional to the number of shares he has bought.

Generally stockholders do not take part in running the business. They hire the most
efficient person they can find to managethe business. If a business fails, the
stockholders lose only the money they have paid for the shares. If the business is
profitable, they can make good money.

1) Re-read the text and complete these ideas.

a) A sole proprietorship is: This is also called sole trader
b) A partnership is: in which two or more people decide to enter into
business.
c) A corporation is: is another kind of business association
 d) Partners entering into business contribute: in which two or more people
decide to enter into business contributing either with their work (working
partner) or with their capital.

2) Scan the text and decide whether the sentences are TRUE OR FALSE

a) In case of bankruptcy of an unlimited liability partnership, the partners are

responsible for their private assets: TRUE
b) Some partners don’t invest money in the partnership: FALSE
c) It is not convenient to sign a contract because it doesn’t solve any situation:
FALSE
d) Stockholders always sign a contract when they buy shares: TRUE

3) Write synonyms for these words

a) To do business: TO START A PARTNERSHIP
b) Business associations: A Corporation
c) Owner: stockholder
d) People associated to do business: JOIN THE SHAREHOLDERS TO UNDERTAKE A
CORPORATION.
e) Responsibility: COMMITMENT
f) Same: PARALLEL
g) To manage a business: FORMALISE A Corporation

4) Match the given words with their definitions

a) Sole proprietorship sole trader.
b) Partnership of business two or more people.
c) Corporations is business association
d) Contract specifying each person’s obligations and the amount of profits
to be received.
e) Limited liability means that each partner is liable, in case of bankruptcy,
only for the money invested in the business.
f) Unlimited liability the partners are responsible not only for the money
invested in the business but also for their private assets
g) Stockholder owns a part of the company proportional to the number of
shares he has bought.

-Document that identifies each person’s obligations: contract

-Owned by only one person: sole trader
-Business association owned by investors who buy shares: Corporations
-Partnerships which each partner is liable only for the money invested:
limited liability
-Business association formed by two or more persons: association
-Owner of a part of a company proportional to the shares he bought:
stockholders.
-Partnerships in which each partner is also responsible for their private
assets: UNLIMITED LIABILITY.