Concept check

Date: 2015-10-07; view: 589.

1.Find words in the texts to complete the sentences.

1) A … … is active in business and assumes unlimited liability.

2) A … … is active in business but not known to the public.

3) A … … doesn't participate in the management function.

4) A … … is inactive but may be known as a partner.

5) A … … is inactive and isn't known to the public.

6) A … … is not a true partner in any sense.

2. Read the sentences and decide whether they are true or false.

1) Partners are motivated to apply their best abilities by direct sharing of the profit.

2) To establish a partnership government permission is required.

3) Creditors don't feel like making loans to a partnership.

4) A general partner is responsible for the full amount of business debts.

5) Elimination of any partner constitutes automatic dissolution of a partnership.

6) Friends are the best business associates.

7) There are relative difficulties in obtaining large sum of capital.

8) A partnership may be more flexible in the decision making process than a sole proprietorship.

3. Choose from the following to complete the diagram below with advantages and disadvantages of a partnership.

1) Unlimited liability of at least one partner.

2) Relative freedom from government control.

3) Low organization cost.

4) Relative difficulties in raising capital.

5) Unstable life.

6) Great motivation.

7) Difficulties in relationship between partners.

8) Tax privileges.