Exercise 2. Answer the questions.

1. What do you want to be busy with?

2. Do you want to go into business alone or with a partner?

3. With what partner do you get along well?

4. Imagine you run a shop. What will you do to attract customers?

5. Do you need to consult a lawyer, to make a right choice when starting the business?

6. What is your background?

7. Are you a careful person, or do you like to run a risk?

8. How can you combine the resources with your partner?

9. What services and skills can you contribute in your business?

10. How will you distribute profits and losses in your partnership?

11. What kind of partner would you like to be: a general partner or a limited partner? Why so?

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.

11.0на 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 shares 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 offer higher salaries and thus attract talented managers and specialists.

The privately owned business corporation is one type of corporation. 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, states, federal government and special agencies can establish governmental corporations. A few examples of these 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 sertificate 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

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