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29
5. How do you usually learn about job vacancies?
6. When you introduce yourself to a prospective employer, what
information matters most/is the most important?
Compare your answers with the ones given in File 2. Did you
miss anything important?
TOPIC 5. TYPES OF BUSINESS
TEXT 1
There are various ways of defining small and medium busi-
nesses, but according to the US Small Business Administration (SBA),
if a small business is defined as one employing fewer than 500 per-
sons, then there are roughly as many people employed in small busi-
nesses in the United States as there are in large ones. (If small business
is defined more narrowly, as employing fewer than 100 employees,
about 36 percent of all workers are employed in small business.) Fur-
thermore, small businesses (employing fewer than 500 employees)
accounted for 60 percent of all new jobs created in the years between
1976 and 1988, according to the SBA. During the decade of the 1980s,
there was a net growth of 7 million new businesses in the United
States, about half of which were self-employed businesses. Self-em-
ployed businesses are famous for being able to respond almost in-
stantly to changes in demand.
There are some economic contributions of small business. They
are: a small business is often the starting point for developing a new
product or service. One person tries out an idea. If it is successful, the
business grows, or the product may be bought by a larger firm.
The small business can give an individual a chance to gain ex-
perience, which the person may use later on a larger scale.
Small business are particularly well suited for meeting special-
ized local needs.
Artisans can provide individualized products for customers who
have grown weary of mass-produced goods.
Small businesses provide a service where knowing one’s cus-
tomers is important.
Give the definition of small business.
What advantages of small business can you think of?
30
TEXT 2
The different types of business organisation to be found in the
UK and most other capitalist countries may be classified under five
headings: the sole proprietor, the partnership, the joint stock company,
the cooperative society, and the public corporation.
Types of
organization
Legal form Ownership Sources of
finance
Liability Who runs the
business
Sole trader Little or no
legal form
The
proprietor
Personal
savings,
bank loan
Unlimited The owner
Partnership Partnership
Act 1890,
written
agreement
among
partners
2–20
partners
Capital
provided
by partners
Unlimited,
although
some
partners
can have
limited
liability
The partners
Private
Limited
Company
(LTD)
Registered
under
Companies
Act 1985
Sharehold-
ers 2 or
more (no
maximum)
Issuing
shares
(restric-
tions on
selling
them),
bank loan
Limited
Public
Limited
Company
(PLC)
Registered
under
Companies
Act 1985
Sharehold-
ers 2 or
more (no
maximum)
Issuing
shares (can
be freely
sold), bank
loan
Limited
The board of
directions.
Although the
day to day
running is
done by the
directors.
Directors are
elected by
shareholders
Nationalised
Industry
Act of
Parliament
State
owned
Governme
nt
assistance
Limited Board of
directors
appointed by
the govern-
ment
Co-operative Industrial
and Provi-
dent Socie-
ties Acts
Owned by
members,
whether
the cus-
tomers or
workers
Shares, £1
each with
an upper
limit of
£10 000
Limited Management
Committee
elected by the
members
5. How do you usually learn about job vacancies? TEXT 2
6. When you introduce yourself to a prospective employer, what The different types of business organisation to be found in the
information matters most/is the most important? UK and most other capitalist countries may be classified under five
headings: the sole proprietor, the partnership, the joint stock company,
Compare your answers with the ones given in File 2. Did you the cooperative society, and the public corporation.
miss anything important?
Types of Legal form Ownership Sources of Liability Who runs the
organization finance business
TOPIC 5. TYPES OF BUSINESS
Sole trader Little or no The Personal Unlimited The owner
legal form proprietor savings,
TEXT 1 bank loan
There are various ways of defining small and medium busi- Partnership Partnership 2–20 Capital Unlimited, The partners
nesses, but according to the US Small Business Administration (SBA), Act 1890, partners provided although
if a small business is defined as one employing fewer than 500 per- written by partners some
agreement partners
sons, then there are roughly as many people employed in small busi- among can have
nesses in the United States as there are in large ones. (If small business partners limited
is defined more narrowly, as employing fewer than 100 employees, liability
about 36 percent of all workers are employed in small business.) Fur- Private Registered Sharehold- Issuing Limited The board of
thermore, small businesses (employing fewer than 500 employees) Limited under ers 2 or shares directions.
Company Companies more (no (restric- Although the
accounted for 60 percent of all new jobs created in the years between (LTD) Act 1985 maximum) tions on day to day
1976 and 1988, according to the SBA. During the decade of the 1980s, selling running is
there was a net growth of 7 million new businesses in the United them), done by the
States, about half of which were self-employed businesses. Self-em- bank loan directors.
ployed businesses are famous for being able to respond almost in- Public Registered Sharehold- Issuing Limited Directors are
Limited under ers 2 or shares (can elected by
stantly to changes in demand. shareholders
Company Companies more (no be freely
There are some economic contributions of small business. They (PLC) Act 1985 maximum) sold), bank
are: a small business is often the starting point for developing a new loan
product or service. One person tries out an idea. If it is successful, the Nationalised Act of State Governme Limited Board of
business grows, or the product may be bought by a larger firm. Industry Parliament owned nt directors
The small business can give an individual a chance to gain ex- assistance appointed by
the govern-
perience, which the person may use later on a larger scale. ment
Small business are particularly well suited for meeting special- Co-operative Industrial Owned by Shares, £1 Limited Management
ized local needs. and Provi- members, each with Committee
Artisans can provide individualized products for customers who dent Socie- whether an upper elected by the
have grown weary of mass-produced goods. ties Acts the cus- limit of members
tomers or £10 000
Small businesses provide a service where knowing one’s cus- workers
tomers is important.
Give the definition of small business.
What advantages of small business can you think of?
29 30
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