Exercise 3. Translate into English

1. Члены правления имеют полную юридическую ответственность.

2. Партнер с ограниченной юридической ответственностью не имеет реальной власти.

3. Секретный партнер принимает участие в управлении, но он не известен общественности.

4. Я хочу вложить деньги в недвижимость.

5. Партнерство имеет много преимуществ.

6. Партнерство часто получает налоговые льготы от правительства.

7. Мы хорошо ладим с партнером.

8. Наше кафе привлекает все больше и больше клиентов.

9. Я сделал правильный выбор. Это дело приносит много прибыли.

10.Мой рабочий опыт связан с менеджментом.

11 .Она хорошо разбирается в бухгалтерском деле.

12. Мы вкладываем в дело одинаковый капитал.

Exercise 4. Discuss the following problem: A Joint Venture*. Pro and Con.

______________

*A Joint Venture - совместное предприятие

Exercise 5. Make up the dialogue.

Consult the lawyer how to form a partnership. Use your active vocabulary.

Grammar Exercises

Exercise 1. Make the sentences negative.

Model: I am going into business.

I am not going into business.

1. Your business is receiving the tax benefits.

2. Your partnership is running the great risk.

3. We are getting along quite well with my partner.

4. They are going to be general partners.

5. The partners are sharing profits and losses with each other.

6. Their partnership is losing their profit every month.

Exercise 2. Put up four questions of different types (general, special, disjunctive, alternative) to each sentence.

Model: The partners are getting along quite well.

1. Are the partners getting along quite well?

2. Why are the partners getting along quite well?

3. The partners are getting along well, aren't they?

4. Are the partners getting along well or badly?

1. Jane is doing the books in our firm.

2. We are putting the same amount of money into business.

3. My brother is investing his money in the private cafe.

4. They are distributing the losses unequally.

5. We are combining resources very well.

LESSON 3

CORPORATIONS

Text

A business corporation is an institution established for the purpose of making profit. It is operated by individuals Their snares of ownership are represented by stock certificates. A person who owns a stock certificate is called a stock-holder.

There are several advantages of the corporate form of ownership. The first is the ability to attract financial resources. The next advantage is the corporation attracts a large amount of capital it can invest it in plants, equipment and research. And the third advantage is that a corporation can often higher salaries and thus attract talented managers and specialists.

The privately owned business corporation is one type of corpora lion. There are some other types too. Educational, religious, charitable institutions can also incorporate. Usually such corporation does not issue stock and is nonprofit. If there is a profit it is reinvested in the institution rather than distributed to private stockholders.

In some western countries, cities, stales, federal government and special agencies can establish governmental corporations. A few examples of the governmental corporations are state universities, state hospitals and city owned utilities. Governmental corporations are non-profit as a rule and usually they do not issue stock certificates.

Active Vocabulary

Corporation корпорация

to establish учреждать

stock certificate акция

stockholder (shareholder) акционер, держатель акций

to attract financial resources привлекать финансовые ресурсы

to offer high salaries предлагать высокие зарплаты

to attract a large amount привлекать большой капитал

of capital капитал

educational, religious, образовательные, религиозные,

charitable institutions благотворительные учреждения

to issue stock выпускать акции

nonprofit неприбыльный

to reinvest вкладывать еще раз

Comprehension Questions

1. Who can own a corporation?

2. Is a corporation necessarily larger than a sole proprietorship?

3. What are the advantages of the corporate form of ownership?

4. What can you say about the disadvantages of the corporate form of ownership?

5. Do the corporations issue stock to stockholder?

6. What kind of corporations usually don't issue the stock?

7. What world-known corporations do you know?

8. What types of business usually take the corporate form of ownership?

Vocabulary Practice

Exercise 1. Choose the necessary word and put it in the sentence.

1. What kind of … is better: buying stock | 1charitable

or buying real estate? |

2. To attract greater financial ... the |

company issues the stock. | 2 stock

3. A university can be ... corporation. | 3 resources

4. The partners didn't put the same ... |

into business. | 4 institution

5. The group of people from different |

countries are going to ... a corporation. | 5 investment

6. The Red Cross is an international... |

organization. | 6 nonprofit

7. I want to buy some ... in IBM and | 7 amount

General Motors. | of capital

8. An educational..'. usually reinvests |

all its money. | 8 to establish

Dialogue

SecretaryGood afternoon.

SteveGood afternoon. I'd like to see Mr. Jackson. We have an arrangement with him. My name is Mr. Watson.

SecretaryJust a minute, please. I'll let him know you are here.

SteveThanks.

SecretaryMr. Jackson is waiting for you. Do you know where his office is?

SteveOh sure, thank you.

JacksonHello, Steve, it's so nice to see you. Sit down, please.

SteveThanks, Nick. How are you getting on?

Jackson Quite all right, thanks. And what about you?

Steve Everything is all right too. In fact I want to talk to you about my business.

JacksonOh, I'll be glad to do something for you.

Steve Well, Nick. I need some legal advice. John and I are thinking of incorporating.

Jackson You are going to expand, aren't you? It seems that your partnership has been doing very well.

Steve Oh, yes. We have a success. Now some businessmen are interested in investing with us. So could you explain me what sort of legal procedure I have to follow to form a corporation?

Jackson At first you have to apply for a corporate charter.

Steve Well?

Jackson Let me get this straight. You want to issue and sell stock in exchange for investment capital, don't you?

Steve Exactly.

Jackson After you obtain the charter the stockholders, as owners, hold a meeting to organize the corporation.

Steve Does that mean we elect our Board of Directors, adopt bylaws and choose the company's officers?

Jackson That's what I mean. Though the officers of the company supervise daily management, the .stockholders always have final authority. They vote at annual meetings.

Steve Yes, I see it. By the way, does a corporation have limited liability?

JacksonIt does. It also has the right to own property, to buy and sell and right to sue and be sued.

Steve I see. The corporation acts like a person. It has the right of an individual.

Jackson You are right.

SteveO.K. Why don't we get together for a game of golf one day next week?

Active Vocabulary

bylaws юридические положения для предприятий

I need some legal advice мне нужен юридический совет

to incorporate соединяться, объединяться

to invest вкладывать деньги

to expand расширяться (о производстве)

to follow a legal procedure следовать юридической процедуре