Английский язык: Аннотирование и реферирование текста

53 of – state business activities without paying a special fee. The corpora- tion must file reports regularly with the government. This may require the services of specialized and expensive employees. Other disadvantages of the corporation include : • The sharing of profits. • Double taxation – the profits of a corporation are taxed as cor- porate income, and as the stockholder’s income. • A higher rate of taxation than any other form of business or- ganization. (However, if you form a Subchapter 5 Corporation, which is ideal for new and low income business, your corporation may be taxed at individual rates). What are the advantages of franchises? Franchising offers distinct advantages to you if you want to own your own business but lack the expertise and facilities to do so. The franchisor normally provides many things; things that you, as a sole proprietor, would have to provide yourself. You would receive techni- cal advice on design and layout of facilities, market research findings, and help in advertising, buying, and inventory. Other advantages of franchising include : • Smaller than usual capital investment. • Less working capital necessary. • A product or service that usually has prior public acceptance. • Better-than-average profit margins. What are disadvantages of franchises? Franchises do have disadvantages for the franchisee. You must do things according to the rules of the parent company. Depending on the company, this may restrict your freedom of action. Your must main- tain certain standards of service. Commonly, the franchise agreement requires the franchisee to pay a percentage of the profits back to the parent company. Canceling the contract may sometimes prove difficult.