Corporation

As business became more competitive, new and more complex corporate combinations appear. Single ownerships and the partnerships have finance weaknesses and that is the reason why the corporation came into existence.

A corporation is a business organization authorized by the state to conduct business and is a separate legal entity from its owners. It is the dominant form of American business because it makes it possible to gather large amounts of capital together.

Before a corporation may do business, it must apply for and receive a charter from the state. The state must approve the articles of incorporation, which describe the basic purpose and structure of the proposed corporation.

The stockholders usually meet once a year to elect directors and to carry on other important business. Each share of stock entitles its owner to one vote. A stock holder who cannot attend the meeting can legally authorize another to vote his or her shares by proxy.

Management of a corporation consists of the board of directors who decide corporate policy, and the officers, who carry on the daily operations. The board is elected by the stockholders, and the officers are appointed by the board.

Vocabulary

1. distribution – распределение

2. for the benefit of – на благо (ради)

3. entrepreneur –владелец предприятия, предприниматель

4. direct –руководить

5. gain –получать

6. proprietorship –предпринимательство

7. sole proprietor – единоличный владелец

8. self-employed– обслуживающий собственное предприятие, работающий не по найму

9. be responsible for –отвечать за

10. beinchargeof– возглавлять (отвечать за)

11. failure –провал

11. advantages –преимущества

12. disadvantages - недостатки

13. drawbacks –недостатки, упущения

14. run risk –подвергаться риску

15. lose – терять

16. be liable for –нести ответственность

17. debts –долги

18. set up –создавать

19. losses –убытки

20. share –делить, разделять

21. agreement –соглашение

22. fiscal –финансовый

23. be in effect –действовать, работать

24. public –государственный

25. private –частный

26. raise –собирать

27. stock exchange –фондовая биржа

28. exist –существовать

29. despite –несмотря на

30. assets –активы, капитал

31. sue(besued) – предъявлять иск (выступать в качестве ответчика)

32. bear (bore, borne) –выносить, терпеть

33. carry out –выполнять

34. board of directors –совет директоров

35. retailing –розничная торговля

36. appoint –назначать

37. contribute –вкладывать

38. associatedcompany– дочерняя компания; подконтрольная компания

39. influence –влияние

40. is referred to as –называется

41. parentcompany– компания, владеющая контрольным пакетом акций

42. subsidiary company –дочерняя компания; филиал

43. entity- организация, предприятие

44. charter- документ, содержащий согласие государственного органа на создание корпорации

45. by proxy - по доверенности

Task 1. Find the equivalents.

entrepreneur proprietorship sole trader retailing associated company parent company subsidiary company entity assets debts losses

A - убытки B– розничная торговля C- предприятие D- предприниматель E– компания, владеющая контрольным пакетом акций F- предпринимательство G- активы H– единоличный владелец I- филиал J- долги K– дочерняя компания

Task 2. Complete the sentences.

individual proprietorship is … partnership can … public company can … private company can .. corporation is …

a- be formed with a minimum of two shareholders b- the simplest way of beginning business c- sell shares through a stock exchange d- be set up by two or more people e- a business organization authorized by the state to conduct business

Task 3. Fill in the gaps with the suitable words.

manager top manager employee state employee

1. … is responsible for everything.

2. … works for the state.

3. … is a person who manages people.

4. … is a person who works for someone else.

Task 4. Answer the questions.

1. What is business?

2. What are the forms of business organization?

3. What is individual proprietorship (sole trader)?

4. What are the advantages and drawbacks of small business?

5. What is a partnership?

6. What is a company formed for?

7. What are the main differences between public and private companies?

8. What are the other types of companies?

9. What is a corporation?

10. What are the main types of companies in the UK and USA?

Ex. 6. Read and translate texts I and II about the main forms of businesses in the UK and the USA. Compare them with organization of businesses in Russia.