A-Read this text carefully:
The Steps in Starting a Business
Nearly every person who makes
the decision to start a business is an entrepreneur
because he or she is willing to take a
risk. Usually people decide to start a business to gain profits and to
“do something on their own” or to be their own boss.
Entrepreneurs then gather the factors of
production and decide on the form of business
organization that best suits their
purposes. Anyone hoping to become an entrepreneur must also learn as much as
possible about the business he or she plans to start. This process includes
learning about the laws, regulations, and tax codes that will apply to the
business.
Elements of
Business Operation
To start a business, you must make
potential customers aware that your services are
available for a price. You could have
one-page fliers printed to advertise your business
and pass them out. You could also buy advertising
space in the local newspaper.
Every business, regardless of size,
involves four elements: expenses, advertising,
receipts and record keeping, and risk.
Expenses
If you own a painting business, you will
need to purchase brushes and paint. As your
business grows, you might invest in paint
sprayers so that you can complete jobs faster.
This new equipment would add to your income,
but will probably take more money
capital than you have on hand.
Advertising
You will quickly find out that letting potential
customers know that you are in business
is costly. Once you have customers,
however, information about your business will spread by word of mouth.
Receipts and
Record Keeping
No matter how small your business is,
having a system to track your expenses and
income is key to your success. All receipts should
be safely filed and saved.
Risk
Every business involves risks. You must
balance the risks against the advantages of
being in business for yourself - including profit
versus loss.
Depending on the kinds of jobs you do, you
will need equipment and replacement
parts. At first, you might buy parts as you
need them for a particular job: In time, you will
find it easier to have an inventory.
An inventory is a supply of whatever items are used in
a business.
Probably one of the first things you want
to do, if you have not already done so, is buy
a computer. With the computer, you also
should purchase the programs that will allow you to keep track of all your
expenses and all your receipts. Many such programs exist and are relatively
inexpensive. Programs write checks for you, calculate your monthly profit and loss,
tell you the difference between what you own and what you owe (called net
worth),and so on. As an entrepreneur, you are taking many risks, but the
profit you expect to make is your incentive for taking those risks. For
example, if you spend part of your savings to pay for advertising and
equipment, you are taking a risk. You may not get enough business to cover
these costs.
B- Re-read
the text and answer all the questions:
1-What is the general idea of the text?
2-Comment on this quote “Nearly every
person who makes the decision to start a business is an entrepreneur
because he or she is willing to take a risk”?
3- Decide whether these statements are true
or false? Justify your answers?
a-Computer
programs are so expensive.
b- Only huge
companies need accounting records to meet success.
c-To gain
money you have to spend money.
d-Every
entrepreneur needs to be aware of different laws and regulations related to
business.
4- Find in the text words or expressions meaning
the same as:
a-to set up b-director c-charges d-buy
5- What do the two underlined words in the
text refer to?