Corporations

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

There are several advantages of the corporate form of ownership. The first is the ability to attract financial resources. The next advantage is that if 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 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 nonprofit as a rule and usually they do not issue stock certificates.

Vocabulary

corporation корпорация

to establish учреждать

stock certificate акция

stockholder акционер

to attract financial resources привлекать финансовые ресурсы

to offer high salaries предлагать высокие зарплаты

educational образовательные, религиозные

charitable institutions благотворительные учреждения

to issue stock выпускать акции

nonprofit неприбыльный

to reinvest вкладывать еще раз

I. Закончите предложение в соответствии с темой.

The text is about …

a) advantages and disadvantages of corporations;

b) comparison of advantages and disadvantages between partnerships and corporations;

c) what types of corporations are, their advantages and disadvantages.

II. Выберите предложение, соответствующее содержанию текста.

a) A business corporation is an association of a group of people to carry on a business for profit;

b) A business corporation is an institution established for the purpose of making profit;

c) A business corporation is a company organized for production of goods or services.

III. Выберите вариант завершения предложения в соответствии с текстом.

If there is a profit …

a) it is distributed to private stock holders;

b) it is distributed among members of Board of Directors;

c) it is reinvested in the institution rather than distributed to private stockholders.

IV. Выберите правильную форму глагола.

Usually such corporation … stock and … nonprofit.

a) do not issue, are;

b) doesn’t issue, is;

c) didn’t issue, was.

V. Выберите английский эквивалент данным словам.

1) тип 2) учреждение

a) person; a) institute;

b) sort; b) institution;

c) type; c) office;

3) образование 4) устанавливать, основывать

a) training; a) to establish;

b) education; b) to set;

c) instruction; c) to stand.

VI. Заполните пропуски предлогами, где это необходимо.

Their share … ownership are presented … stock certificates.

a) by, of;

b) of, by;

c) in, to.

VII. Согласитесь или не согласитесь с утверждениями. Неверные утверждения сделайте верными.

a) Educational, religious, charitable institutions cannot be incorporated;

b) Governmental corporations are profitable as a rule;

c) Business corporations are established for the purpose of making profit.