Sole trade/ sole proprietorship is the most common form of business organization, it’s owned and run by one person.

The main advantage of a sole proprietorship is that the easiest form to start and run. In the event that the owner wants to dissolve the business, a sole proprietorship is as easily dissolved as it is formed.

Sole proprietorship owns all the profits of their enterprises and free to make whatever changes they please. They have minimallegal restriction and not have to pay the special taxes placed on the different state establishment.

The major disadvantage of a sole proprietorship is the unlimited liability. Since the business and the owner are legally the same, the sole proprietor is liable for all financial losses or debts that the business may incur.  

The owners of Unlimited liability companies are personally and entirely liable for the debts of the company. This means they may lose their personal assets (e.g.. their house or car) if the company is in financial difficulties. 

Limited liability company/ Partnership is a business that is jointly owned by two or more people who have combined  their talents and resources for the purpose of earning profit. Partners share their profits and losses and they are responsible for the management of the business and usually agree with each other before making major decision.    

Business Corporation is an institution established for the purpose of making profit. It’s operated by individuals. People who would like to form a corporation must file the permission in the state government. If charter approved, the documents give permission to create a corporation is granted. The charter states should involve legal name, legal address, purpose of business. The number of shares of stock, or ownership parts of the firm are specified in the charter. These shares are certificates of ownership  and are sold to investors  called shareholders or stockholders. If the corporation is profitable it will eventually issue dividend or a check, representing a part of the corporate  profits to shareholders. There are a lots of advantages of corporation: it can attracts a large amount of capital and can invest it in plants equipment and research. Corporations have great capacity for growth and expansion. But there are some disadvantages. It’s difficult and expensive to organize a corporation. There is also an extra tax on corporate profits.

Exercise 1. Give the English for:

компанія з обмеженою відповідальністю, компанія з необмеженою відповідальністю, власник, бути відповідальним за борги  компанії, втрачати власне майно, фінансові труднощі, одноосібна власність, корпорація, товариство, закрита акціонерна  компанія, акціонер, пропонувати акції, продавати акції на фондовій біржі.

Exercise  2. Match words from list A with words from list B that have a similar meaning:

             A                                               B

                 join                                          sole proprietorship