The Corporation

The corporation is by far the most complex of the three business structures.

As defined by the Chief Justice Marshall's famous decision in 1819, a corporation " is an artificial being, invisible, intangible, and existing only in contemplation of the law." In other words, a corporation is a legal entity, distinct from the individuals who own it.

Ex. 13

Analyze the ways of noun formation and translate them into Russian.

Legality, fluctuation, availability, requirement, disadvantage, similarity, importance, knowledge, mobility, intelligence, ownership, formation, restriction, approval, decision, flexibility, taxation, freedom, responsibility, investment, insurance, coverage, termination, illness, financing, experience, contribution, agreement, consideration, elimination, dissolution, disposition, permanence, investor, stockholder, lender, disability, accountant, misunderstanding.

Ex. 14

Complete the sentences. Put the necessary verbs into a passive form.

build make spend send

hold take over steal tell

1. They ..................... by an American company last year.

2.Their new factory .................. on the outskirts of town.

3. Over $ 3 million ................... on advertising last year.

4.A prospectus ...................... to all potential investors.

5.Why .............. clients ................ in advance about this increase in fees?

6.An extraordinary general meeting .................. next Wednesday.

7. The share offer ...................... by a leading merchant bank.

8. They claim that plans for the new aircraft ................. by a competitor.

Ex. 15

Find the sentences in the text in Passive Voice and analyze them.

Ex. 16 Grammar focus. Conditional sentences (types 1 and 2).

Model 1: If I see a nice jumper in the shop, I'll buy it.

What will you do if you don't have enough money?

Model 2: If I were Prime Minister, I'd increase income tax.

What would you do if you saw a ghost? What is the difference between these models?

Complete the following sentences:

a) 1. I'll be happy if...

2. If I have a lot of money....

b) 1. If I had 1 million dollars...
2.1 would be very upset if...

Ex.17 Put the verbs in brackets into the correct form.

Model: If share prices continue to fall, we... 'll lose (lose) a lot of money.

If we…paid (pay) the transport costs, would you reduce the unit price?

1. If the men call off the strike, we.... (negotiate).

2. If our competitor. ..(go) bankrupt, we'll increase our market share.

3. If we.. .(change) the packaging, we'd sell more.

4. If we asked for easy credit terms, they (not agree).

5. If a firm... (offer) me a bribe to get an important contract, I'd ask "How much?"

Ex.18 Make up chains of sentences ( 5-7 sentences):

If I won 5 million I 'd buy a plane

If I bought a plane, I'd go to Las Vegas, etc.

Compare the last sentences of your chains with your partner.

Ex.19 What would you do if:

a) you could speak perfect English?

b) you found burglars in your flat?

c) you lost your job?

d) you found a purse?

e) you met a famous film-star?

f) your friend invited you to the party?

Ex.20 a) Work in pairs. How would you feel in the following situations? Would you be pleased, sorry or angry if:

1.you picked up a bargain in the sales?

2. you paid next to nothing for something?

3. you were overcharged in a restaurant?

4. you were overdrawn at the bank?

Glossary:

Access: the means of getting to something.

A corporation has a greater access to capital than does a sole proprietor.

Articles of co-partnership: the agreement telling the terms and conditions of a

partnership.

The articles of co-partnership should also provide a method of selling the

businesses.

Articles of incorporation: the agreement telling the terms, conditions and purposes of

a corporation. These must be filed in the state where the corporation is

chartered.

My lawyer will draw up the articles of incorporation

Asset: (often plural) anything of value to a company. Anything which can be sold or

converted into cash.

The partners each own a share of the assets of the partnership. Inventory is a

current asset because it will be sold during that business year.

Bankrupt: unable to pay one's debts and legally released from the liability .

His business went bankrupt because of poor management and bad financial

decisions.

Bills: debts; money which must be paid to someone for a service or product received.

The bill for my telephone service arrives today. Most suppliers want you to

pay the bill within thirty days.

Board of directors: a group of persons elected by stockholders to run a corporation.

The board of directors has decided to pay a dividend of $5 per share.

Capital: he money which owners or stockholders invest in a business.

We need some capital in order to purchase new production equipment .

Chief executive officer (CEO): the top manager or director of a company .

The board of directors has hired a new chief executive officer for the corporation.

Comply: obey.

The corporation must comply with all the regulations which pertain to it.

Corporation: a group of persons granted a charter to do business as a separate unit with its

own rights and responsibilities.

Large businesses are operated as corporations because capital can be easily

raised and liability is limited.

Dissolve: to break up a partnership or corporation.

The partnership was dissolved because the two partners wanted to have their own

businesses.

Dividends: a share of the profits of a corporation which is given to the stockholders.

The dividend will be paid to owners of record on June 30.

Enterprise: a business, particularly one privately owned.

If the sole proprietor wants to quit,he can simply find someone to purchase his

enterprise.

Entity: a separate unit for ownership or legal purposes.

As a separate entity a corporation can own property apart from the individual

stockholders.

Expertise: special knowledge or ability.

This accountant has expertise in financial planning.

Financial: refers to money or the management of money.

This company is in good financial condition.

The sole proprietor makes all his own financial decisions.

Income tax: a tax which is based on the amount of money a person or company receives for

labor, services, or products, and which cannot be added to the price of the labor,

services, or products .

The owner of a sole proprietorship pays personal income tax on the profit he

receives.

The business itself pays no tax.

Inventory: the amount of goods, merchandise, or materials on hand.

Once each year the owners of the store must record all their inventory in order

to know which goods they have on hand.

Some new computerized cash registers are able to keep track of inventory

Liability: (often plural) debt or legal responsibility.

The assets and liabilities of the company must be listed on the balance sheet.

The liability of a corporation is limited to its assets.

The sole proprietor has all the liabilities of his business.

Limited: restricted;not allowed to exceed a certain amount.

A corporation's liability is limited to the value of its assets.

Ownership: refers to a right a person has to things that belong to him.

The ownership of a sole proprietorship can be transferred if the proprietor

wants to sell it.

In order to sell a car, you must have an ownership certificate.

Private ownership of property is an American tradition.

Partnership: a business owned by two or more individuals.

The owners of a partnership share in the operation and profits of the business.

Profits: the amount of income above costs.

The profits have increased due to a decrease in the cost of raw materials.

Proprietorship: ownership of a small business.

This restaurant is operated as a sole proprietorship. It is owned by one

individual.

Purchase: buy.

The individual owner can decide whether or not to purchase new tools and

equipment.

Date: 2014-12-28; view: 1055