Complete the following statements with the words from the above given exercise

 

If you don’t have a ……. to sell these goods, you can’t start your business.

George and I have found some investors and we are starting a business. We are going to ………….. next week.

If you don’t …… this document carefully, you’ll never know it’s the original.

He tried hard to …… a permit to build an underground garage in this area but failed.

First you ….. the documents to the embassy, then they …... a visa within two or three days.

You’ll …….. all the necessary forms for registration by fax.

It’s not so easy to get a …… for the production of alcoholic beverages.

Can you tell me how to ……. the name of our company web site?

Sole proprietorships …… for a business permit at the local office.

 

Exercise III. Articles of Incorporation – charter - bylaws

- The Articles of Incorporation (sometimes also referred to as the Certificate of Incorporation or the Charter) are the primary rules governing the management of a corporation, and are filed with a state or other regulatory agency.

 

- Charter is a document issued by an authority in order to confirm the creation a public or private corporation and grant a corporation certain rights, powers, or functions.

 

- Bylaws are drafted by a corporation's founders or directors after they have been incorporated and under the authority of its Charter or Articles of Incorporation. Bylaws generally cover topics such as how directors are elected, how meetings of directors and shareholders are conducted, and what officers the organization will have and a description of their duties.

 

Answer the questions (copies closed)

What information do the Articles of Incorporation include?

Which document of incorporation is filed with and which one is issued with the authorized agency?

What is a charter issued for?

Who drafts the Bylaws?

When are the Bylaws drafted?

What matters do the Bylaws cover?

 

Activity II. Topic introduction

(Concept p. 93)

 

Grammar Practice

Modal verbs

The following modal verbs are used in the text.

Must have to

Refer to Grammar Supplement, Modal Verbs pp. 262 – 266. Study the Table of Modal Verbs Usage, and then read the points Obligation and necessity p 262 – 263.

Decide if the interpretations explain the usage of the verbs in the statements.

 

1. Government must be able to identify any business organization by name, product or nature of business. – It is compulsory to have the ability to identify a business.

2. Government has to tax an enterprise either as natural person or as legal entity. – It is required by law and rule to tax; it is an imposed obligation.

3. The information about companies must be available for public reference. – It is compulsory, a required necessity.

4. In common law countries (as UK and US) individual businesses and partnerships have to register a business name, get Employer Identification Number with the tax bodies and obtain licenses and permits appropriate for the nature of their business activity. – It is a necessary requirement imposed on businesses.

5. A company has first to apply for registration and then to file the documents for statutory authorization. – It is required by rule.

Activity III. Topic development

(Essential. Business Formation Basics pp. 94-96)

Exercise 1. Questions

Sole proprietorship

Where is it possible to get information about local, state and federal permits?

Why is it necessary to verify the chosen name for the business?

Who registers the name of business?

Why is it necessary to apply for and obtain the EIN with the IRS?

Why is it necessary to get business insurance? Why is it necessary to insure the business?

General partnership

Are the statutory requirements for a partnership registration the same as those of a sole proprietorship? What is different?

What does the partnership agreement determine?

Why is it better to have a written partnership agreement?

Why is it advisable to engage the services of an attorney when drafting the agreement?

What does unlimited liability of partners mean? (see Business Organizations)

How are the responsibilities shared by the partners?