1. Answer these questions:

1. What is corporation?

2. What is the purpose of establishing corporations?

3. Are business corporations common in the United States?

4. Who are the owners of a corporation?

5. What should you do first of all, if you want to form a corporation?

6. Who elects the Board of Directors, adopts by-laws and chooses the company’s officers?

7. What kind of stocks gives voting rights to stockholders?

8. How does a corporation reward its stockholders for their investments?

9. List the advantages of the corporate form of ownership?

10. What are the major reasons that production of goods like automobiles or steel takes place in large corporations?

2. Translate these word combinations into English:

законное право, владеть собственностью, сертификат акции, избирать совет директоров, ежегодное собрание, привилегированная акция, поощрять акционеров, привлекать капитал, высокое жалованье, ограниченная ответственность, личное имущество

3. Are these sentences true or false?

1. A stockholder is a man who owns a stock certificate.

2. Stockholders have an opportunity to adopt by-laws of the corporation.

3. Common stock gives holders the first claim on the company's assets after debts are paid.

4. Dividends are usually paid if the corporation fails.

5. One of the disadvantages of the corporate form of ownership is that a corporation can offer high salaries.

4. Translate the sentences into English:

Акционерная компания – это объединение, созданное с целью получения дохода.

Акционеры – это люди, владеющие сертификатами акций.

Акционерные компании выплачивают своим акционерам дивиденды.

Существуют два вида акций: привилегированные и обыкновенные.

Акционеры имеют право голосовать на ежегодном собрании.

5. Find the odd one in each of these groups of the basic business words:

company – network – firm – corporation

interest – repayment – loan – shareholder

slogan – fee – money – pay

salary – manager – salesman – employee

coin – banknote – research – check

venture – company – partnership – overheads

assistant – desk – deputy – subordinate

6. Match the words from the left column with their corresponding definitions:

retailer	reduction in the original price of a product
profit	a document giving permission to make or sell something
boom	a company which sells goods or equipment to another company
deposit	a phrase used in advertising to attract attention to the product
discount	a sum of money given in addition to a salary
supplier	the amount of money which is made by a business
license	to place money in a bank account
slogan	a big increase in business activity
bonus	to give employment someone
hire	a person or a shop that sells goods to the public

7. Translate the sentences into Russian:

1. A company is a form of business organization which is owned by its shareholders who appoint directors to control its operation.

2. The day-to day management of the company is carried out by a board of directors.

3. The stockholders are responsible only for the amount of capital they contribute.

4. Limited liability safeguards investors and encourages investment.

5. The divorce between ownership and management may become a problem.

Define the functions of the infinitives, translate the sentences into Russian.

1. To incorporate means to form a corporation.

2. Only through incorporation can our larger enterprises raise sufficient funds for the needs of modern industry.

3. To incorporate you begin by hiring a lawyer to draw up the necessary papers.

4. The corporation is an almost perfect device to raise large sums of capital.

5. If worse comes to worst and the business goes bankrupt, the most investors can lose is their original payment.

6. The stockholders will prefer to elect a board of directors consisting of a dozen or so members to represent them between annual meetings.

7. Normally, the stockholders will be too many to meet for every decision.

8. You will, however, face one major disadvantage when you incorporate: an extra tax on corporate profits.