Partnership

Business may be operated as a partnership. A partnership is an association of two or more persons to carry on a business for profit. The people usually agree either in writing or verbally to become partners. But people who run a business together and share the profits are usually considered partners, even if they do not intend to be. When the owners of a partnership have unlimited liability, they are called general partners. If they have unlimited liability, they are called limited partners. There may be a silent partner as well – a person who is known to the public as a member of the firm but without an authority in management. The reverse of the silent partner is the secret partner – a person who takes part in management but who is not known to the public.

Any business may be operated as a partnership. There are partnerships in professional fields such as medicine, law, accounting, insurance and stock-brokerage. Limited partnerships are a common form of ownership in real estate, oil prospecting, and the mining and quarrying industries, to name a few.

Partnerships are more advantageous than sole proprietorships if one needs multiply sources of capital or diversified management. Like sole proprietorships, they are easy to form, and often receive favored treatment by the government as well as tax benefits. One more advantage is that the partners should not invest the same amount of capital, but they may combine their resources. You can invest less capital than your partner, for example, or even no money at all. But you as a partner can contribute important services or skills, sometimes just a name or a reputation.

All partners have equal rights and obligations in running the business, unless they have agreed on another arrangement. Any disagreement that arises among them is decided by the majority vote. All partners share the profits of the business, but they do not necessary share equity. The size of each share is agreed upon when the partnership is set up. It depends on how much money or property each contributes to get the business started, and on the kind and amount of work each partner is to do. All partners are liable for any debts acquired by the business. These debts are normally paid out of funds or property belonging to the business. If they cannot be paid in this way, any other property of a partner can be taken by the people to whom the debt is owed. A person can lose much money by belonging to a partnership that fails. This is the main disadvantage in case the partners have unlimited liability. Another disadvantage is that the partners may disagree with each other. Complications can also arise with the death of a partner. For example, a share of business could come into the hands of a less desirable associate.

No new partner may be taken into the partnership without the consent of all members. A new agreement must then be made, stating what the new partner must contribute and what will be his share of the profits. A person who wishes to leave the business can agree with the other partners on a price for buying him out. When a partner dies, people named to handle his estate have the same rights.

C. Answer the questions.

1. What is an important difference between a general partnership and a limited one?

2. What is the difference between silent and secret partners?

3. Name the advantages and disadvantages of this form of business ownership.

4. What are some fields in which partnerships are found?

5. In what way do the partners share the profits of the business?

D. Select a word to fit each blank space in the sentences.

1. A ………………………… is known to the public as a member of the firm, but has no authority.

2. A secret partner takes part in …………………………. .

3. You should form a partnership in case you need multiply sources of …………. or ……………………….. management.

4. Partnerships often receive tax ……………….. from the government.

5. …………………….. may start with the death of one of the partners. His share of business can come into the hands of a less desirable ……………………. .

DESCRIBING A COMPANY

A. Read this extract from Nestlé Management Report 1999 and note how the information is organised:

Nestlé, whose head office is in Vevey on the shores of Lake Geneva, is the world's largest food company. Although it is Switzerland's biggest industrial enterprise, only 2% of sales are generated in Switzerland. We are a truly global company employing 230,929 people on every continent. Consequently, our management and staff reflect a truly international outlook. Nestlé now produces the world's favourite brands in 509 factories worldwide. In over 130 years of growth and diversification, we have never lost sight of our core business: improving the quality of people's lives through high-quality, nutritious, and convenient prepared foods and beverages. Today, Nestlé brands are present on almost every supermarket shelf, and some products - like NESCAFE, NESTLE, NESTEA, BUITONI, MAGGI and FRISKIES - are sold in more than 100 countries.

B. Other useful phrases include:

GRAMMAR

1. The Product Manager of a software company is giving a presentation. Select the most appropriate verb from the box below and put it into the correct present tense form.

be not hesitate look for cover include not expect

divide increase specialize employ intend use

help know work have let

Good morning, ladies and gentlemen. My name …… Gilles Latour. I …… in the marketing department as a product manager. In this short presentation I …… to cover three main points. Firstly, the company's major activities; secondly, our present product range; and finally our future plans. If you …… any questions, please …… to ask.

As you …… , we …… in customised software. Our clients …… major corporations on both sides of the Atlantic. We typically …… our activities into control systems and multimedia applications. At present the market for the latter …… substantially. And for the former, we …… to see an increase in the near future. We …… some 250 people at our site in Newtown. And currently we …… engineers for a new project for a Central European client. In addition to the permanent workforce, the company regularly …… consultants at the customers' sites. They …… us in areas such as installation and testing. OK, that …… the first point. Now …… us move on to the products in more detail.

2. Complete the following introduction to a presentation by putting the verbs in brackets into the сorrect tense. You can choose from the present simple, present continuous, present perfect simple or present perfect continuous.

Good morning, ladies and gentlemen. My name is Martin Winkler and I …… (work) in the R&D department here at Brymore. I …… (work) on this current project for two years now. The project team …… (consist) of myself and five engineers. Steven Brookes …… (be) with us since the start of the project and he …… (develop) the prototype which you'll see later. At present we …… (test) the capacity of the prototype and we …… (expect) to have some results later this month.

Now on to the presentation itself. I …… (divide) it into three parts which I …… (write) up here on this transparency. The first part …… (cover) the project brief. The second part …… (deal) with the team, who …… (bring) special knowledge and skills to the project. And the third part …… (look) at the project stages. As you'll see, other companies and institutes …… (help) us and we are very grateful for their assistance.

CASE STUDY

Background

You are at a trade fair.

Trade fairs are opportunities for individuals and companies to make contacts with potential customers and other professionals in the industry. While many companies hope to sign up orders for goods, most are happy to improve consumer awareness of the company and to promote the corporate image.

Task

Work in pairs.

5. Read your role card.

6. Prepare to introduce your company to someone who visits your stand.

7. Use the profile in your role card as a source of key facts about your company.

8. Write a plan of your presentation bearing in mind the key rules of presenting information.

9. Give your presentation to your partner.

Student A:

You are Roberto/a, Zoff Deputy Vice-President – Marketing.

Your company address: CONTA (Florida) Limited Roosevelt Building 120-124 24th Street Tampa FL33660-0047 Tel (1)813 54679900

Be prepared to add other information about:

• the location of head office (Osaka),

• the number of overseas subsidiaries (eight)

• the number of direct employees (890).

Then ask the other person about his/her company.

While listening to his/her presentation interrupt to ask for clarification or additional information whenever you like. Ask about:

• company name, turnover, markets, sales growth

• name/location of American subsidiary

• number of employees in USA

• sales of USA subsidiary

• if the company was recently involved in a major takeover.

YOUR PARTNER WILL START.

Student B:

You are THEO/A MARTIN, Sales & marketing Department

Your company address: Edile International (Singapore) Limited 48 Tannery Row, Cencon Building,Singapore 1336 Tel 747 7676 Fax 747 7688

Name: Edile S.p.A.

Sector: Property development

Markets: Italy, Europe, South East Asia, United States, Argentina.

199-Sales: $373m.

Include any of the following additional information:

Head office: Milan, Italy

Subsidiaries:

Edile International in France, Germany, UK, Argentina, Singapore, United States of America (Chicago and New York) and (planned for next year) Brazil and Japan.

Worldwide employees:

more than 4,000.

Current major project: new Space Research Centre in Houston, Texas.

You visit the stand of a company called Conta Inc. You talk to someone there about Conta. While listening to the presentation interrupt to ask for clarification or additional information whenever you like. Ask in particular about:

• where the company is based

• overseas subsidiaries

• number of employees

Then talk about your own company, Edile S.p.A.

YOU START.

10. Write a follow-up letter asking for further cooperation.