LESSON 1- Created By. ISTIQOMAH Nim: 2083310179

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.