Lesson 1
A Sole Proprietorship
Dialogue
John : Hi Carol, How Are you?
Carol : Fine, thanks John, How Are You?
John : Fine it’s good to see you
Carol : You, too. I’m Glad you have time to talk today
John : Sure
Carol : I’d like some advice
John : Well, I’d be happy to help in any way I can
Carol : You know, I’ve been designing clothes for quite a while and I have always been interested in fashion. I’m thinking of starting my own business a boutique
John : I think you might have a good idea
Carol : Well, I need to learn about the responsibilities of going into business
John : Are you going into this business by yourself?
Carol : Yes, I’d like to have a company with my name on it, where I make the decisions and where I control the profits.
John : You seem determined, so I will try to help you. If you go into business alone, it’s called a sole proprietorship. In this case, you probably won’t even need a lawyer to form the business. You can start or stop the business whenever you like.
Carol : That’s good. What other encouraging things can you tell me?
John : You don’t have to consult partners or a board of directors, so you can put your policies into effect quickly. You decide on your vacation, hours, salary, hiring and firing
Carol : It sounds good
John : Wait a minute. I feel I have to tell you about some of the risk involved too
Carol : What kinds of risk ?
John : The most important risk to remember is that you have unlimited liability. This means that you are responsible for all your business debts
Carol : Does that mean that I have to declare personal bankruptcy if the business fails?
John : Exactly. You could lose personal assets
Carol : It sounds frighting. What else should I know?
John : You won’t get some of the tax benefits others types of business get. Do you have financing? That’s usually difficult for small business to get
Carol : Yes I know. Fortunately, that’s taken care of. By the way, do you know of a good accountant to do my taxes?
John : Sure, You’ll also have to hire a bookkeeper unless you think you can do your books yourself
Carol : I’m not sure about that yet. I have to think about it. What else john?
John : Well, before we get into other things, why don’t we have a cup of coffee?
Carol : As usual, you have good advice, John
Exercise 1: Structural Practice
Example: start my own business
= I’m thinking of starting my own business
1. Open a boutique
Answer : I’m thinking of opening a boutique
2. Call a lawyer
Answer : I’m thinking of calling a lawyer
3. Pay my taxes
Answer : I’m thinking of paying my taxes
4. Sell my shop
Answer : I’m thinking of selling my shop
5. Hire an employee
Answer : I’m thinking of hiring an employee
6. File for bankruptcy
Answer : I’m thinking of filing for bankruptcy
7. Manage it my self
Answer : I’m thinking of managing it my self
8. Fire my accountant
Answer : I’m thinking of firing my accountant
Exercise 2 : Substitution Drill
Statement: There are several advantages to having a sole proprietorship
Example: Many
There are many advantages to having a sole proprietorship
(Note that you will always be substituting for different word in the sentence.)
1. Owning
There are many advantages to owning a sole proprietorship
2. Disadvantages
There are many disadvantages to owning a sole proprietorship
3. Starting
There are many disadvantages to starting a sole proprietorship
4. In
There are many disadvantages in starting a sole proprietorship
5. A new business
There are many disadvantages in starting a new business
6. Boutique
There are many disadvantages in starting a new boutique
7. Will be
There will be many disadvantages in starting a new boutique
8. A lot of
There will be a lot of disadvantages in starting a new boutique
Exercise 3: Further Practise
Notice this sentences:
I’m going to have a bookkeeper do the books
Use the structure to respond to the following cues:
Example: A bookkeeper will do the books
I’m going to have a bookkeeper do the books.
1. An accountant will prepare the tax report
Answer : I’m going to have an accountant prepare the tax report
2. John will give me advice
Answer : I’m going to have John give me advice
3. A lawyer will do this work
Answer : I’m going to have a lawyer do this work
4. A secretary will mail the letters
Answer : I’m going to have a secretary mail the letters
5. A friend will finance the business
Answer : I’m going to have a friend finance the business
6. A salesperson will sell the clothes
Answer: I’m going to have a salesperson sell the clothes
7. A decorator will design the shop
Answer : I’m going to have a decorator design the shop
READING
A business may be privately owned in three important forms. These are the sole proprietorship, the partnership and the corporation. The sole proprietorship is the most common in America Business. More than 80 per cent of all business in the United States are sole proprietorships.
Sole proprietorship; however, do not do the greatest volume of business. They account for less than 16 per cent of all business receipts. What kind of business is likely to be a sole proprietorship? These small businesses are very often service industries such as Laundromats, beauty shops, repair shops and restaurants.
COMPREHENSION QUESTIONS
1. What are three ways that a business can be privately owned?
Answer : These are the sole proprietorship, the partnership and the corporation
2. What form do most American business have?
Answer : More than 80 per cent of all business in the United States are sole proprietorships
3. What form do most business in your native country have?
Answer : In my country do most business are sole proprietorships
4. Do sole proprietorship s make the most money that is, do they have the greatest volume of business?
Answer : Yes, they do
5. List some business that are likely to be sole proprietorships. Why?
Answer : These small businesses are very often service industries such as Laundromats, beauty shops, repair shops and restaurants.
6. List some business that are not likely to be sole proprietorships. Why?
Answer : CV, Firma, PT, because that is partnership
VOCABULARY PRACTICE
From the words listed below , select a word to fit each blank space in the sentences. Use each word only once.
Corporations
Forms
Account for
Privately
Service
Business
Receipts
1. A sole proprietorship is very often a small business that deals in a service.
2. The service industries do not manufacture product .
3. Eighty- four per cent of all business receipt are not from sole proprietorships.
4. Less than 20 per cent of American businesses are partnerships or corporations.
5. Sole proprietorships forms only a small part of all business transactions.
6. There are three important account for of business ownership.
