Businesses(1) are structured in different ways(2) to meet(3) different needs(4). The simplest(5) form of business is called an individual or sole(6) proprietorship(7).
The proprietor owns(8) all of the property(9) of the business and is responsible for everything. For legal purposes(10), with this kind of(11) business, the owner(12) and the company(13) are the same(14).
This means(15) the proprietor gets to keep(16) all of the profits(17) of the business, but must also pay(18) any debts(19). Another kind of business is the partnership(20).
Two or more people go into business together(21). An agreement(22) is usually(23) needed to decide how much(24) of the partnership each(25) person controls.
One kind of partnership is called a limited liability(26) partnership. These have full(27) partners and limited partners. Limited partners may not share(28) as much in the profits, but they also have less responsibility for the business. Doctors, lawyers(29) and accountants(30) often form partnerships to share their risks and profits.
A husband(31) and wife(32) can form a business partnership together. Partnerships exist only for as long as(32) the owners remain alive(33).
The same is true of individual proprietorships. But corporations are designed(34) to have an unlimited lifetime(35).
A corporation is the most complex kind of business organization. Corporations can sell stock(36) as a way to raise(37) money. Stock represents shares(38) of ownership in a company. Investors(39) who buy stock can trade(40) their shares or keep them as long as the company is in business. A company might(41) use some of its earnings(42) to pay dividends as a reward(43) to shareholders(44).
Or the company might reinvest the money back(45) into the business. If shares lose value(46), investors can lose all of the money they paid(47) for their stock.
But shareholders are not responsible for the debts of the corporation. A corporation is recognized(48) as an entity(49) — its own(50) legal being(51), separate from its owners.
A board(52) of directors controls corporate policies(53). The directors appoint(54) top company officers(55). The directors might or might not hold(56) shares in the corporation. Corporations can have a few(57) major(58) shareholders. Or ownership can be spread(59) among(60) the general public. But not all corporations are traditional businesses that sell stock. Some nonprofit(61)
groups are also organized as corporations.
For VOA Special English, I’m
Carolyn Presutti.You can learn more about business and economics and
learn English at the same time at voaspecialenglish.com. We’re also on
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VOCABULARY
- Businesses = negócios
- Ways = formas
- Meet = satisfazer
- Needs = necessidades
- The simplest = a mais simples
- Sole = individual
- Proprietorship = propriedade
- Owns = possui
- Property = propriedade
- legal purposes = propositos legais
- kind of = tipo de
- owner = dono
- company = empresa
- the same = o(a) mesmo(a)
- means = significa
- gets to keep = consegue manter
- profits = lucros
- must also pay = deve tambem pagar
- debts = dividas
- partnership = parceria
- together = juntos
- agreement = acordo
- usually = normalmente
- how much = quanto
- each = cada
- limited liability = responsabilidade limitada
- full = complete, cheio
- may not share = podem não compartilhar
- lawyers = advogado
- accountants = contadores
- husband = esposo
- as long as= enquanto
- remain alive = permanecerem vivos
- designed = projetado(a)
- unlimited lifetime = period de vida ilimitado
- sell stock = vender ações
- raise = arrecadar
- shares = cotas
- Investors = investidores
- Trade = comercializar
- Might = pode (possibilidade)
- Earnings = ganhos
- Reward = recompensa
- Shareholders = acionistas
- Back = de volta
- lose value = perder valor
- paid = pagaram
- recognized = reconhecida
- entity = entidade
- own = próprio(a)
- being = ser
- board = junta, comissão
- policies = diretrizes
- appoint = nomeiam
- officers = funcionários
- hold = possuir
- a few = alguns, algumas
- major = importante
- spread = distribuido
- among = entre
- nonprofit = sem fins lucrativos