6. Respond to the situations giving a piece of advice. Express sympathy by using one of the following phrases:

• Don’t worry.

• Everything will be all right.

• Everything will turn OK.

• Don’t get upset.

• Things happen.

Model:

- We’ve got many problems. One of them is that we’re constantly suffering from raw material shortages.

- Don’t get upset about it. Things happen after all. You may look for some additional suppliers.

1. My business is in trouble. There’s a chronic shortage of working capital.

2. Productivity is extremely low and we can’t help it.

3. We always fail to receive timely and adequate management information.

4. I can’t catch up with my workload.

5. There’s too much reworking of products and too much scrap and waste left after production. I really don’t know what to do.

6. Desks are always piled high with paperwork. Isn’t it annoying?

7. My younger brother will be seventeen soon and he can’t make up his mind about his future career yet. It’s high time he knew what he wanted.

8. Orders from major customers are lost and we are all worried.

Chapter 8: Corporate Forms of Business

Corporation

Corporation is an institution formed by people who obtain a charter giving them certain legal rights and privileges. A corporation can own property, buy, sell, and manufacture products. Business corporations are the most common type of corporation. It is an institution established for the purpose of making profit. In the United States business corporations make up only about 15 percent of all business enterprises but they account for more than 75 per cent of business assets. Business corporation is operated by individuals whose shares of ownership are represented by stock certificates. People owning stock certificates are called stockholders.

If you want to form a corporation, first of all, you should apply for a Corporate Charter. After you obtain the charter the stockholders, as owners, hold a meeting to organize the corporation. They elect the Board of Directors, adopt by-laws and choose the company’s officers. Though the officers of the company supervise daily management, the stockholders always have the final authority. They vote at annual meetings. But there are two varieties of stock, preferred and common. Preferred stock does not extend voting rights in the corporation to stockholders but gives holders the first claim on the company’s assets after the debts are paid. Only the common stock gives stockholders voting rights. Corporations reward stockholders for their investments by giving them part of the profits. These payments are called dividends.

The corporate form of ownership has several advantages. The first is its ability to attract financial resources. A second advantage is that if the corporation attracts a large amount of capital, it can make large investments in plants, equipment and research. A third is that a corporation can offer high salaries and thus attract talented managers. And the main advantage is that the owners - the stockholders - have limited liability. If the corporation fails, they can lose no more than their investments, but not the personal assets.

Do you know these words?

corporation	акционерная компания
charter	документ, содержащий согласие государственного органа на создание корпорации
common	распространенный
share, stock	доля, акция
stock certificate	сертификат акции
stockholder	акционер, владелец акций
to apply	подавать заявление
board of directors	совет директоров
to adopt	принимать
by-law	устав
officer	должностное лицо, служащий из числа руководящего состава
to supervise	контролировать, наблюдать
authority	право, полномочие
preferred stock	привилегированная акция
common stock	обыкновенная акция
voting right	право голоса
claim	требование, претензия, притязание
to reward	поощрять, вознаграждать
advantage	преимущество
limited liability	ограниченная ответственность (акционера)