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Vi. Vocabulary practice find an appropriate word for each blank space using the following words.

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  3. Active vocabulary
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corporate debts interests to organize a business taxes public opinion
shareholders participation the experience and knowledge shareholders disinterest dividends

 

1. Corporation is the most expensive way __.

2. Shares of corporations regulate __.

3. If the corporation's assets are not sufficient to meet debts no action can be taken against __.

4. _____ can affect the prices and efficiency of the company's performance.

5. Shareholders are not responsible for ____.

6. A corporation is not damaged by the death or ____ of a particular person.

7. As a separate legal entity, the corporation must pay ____.

8. When the corporation passes along profits to individuals in the form of dividends, the individuals are taxed again on these ____.

9. Sometimes managers are tempted to act more in their own ____ than those of the shareholders.

10. There is the possibility to use ____ of a number of people in corporation.

VII. COMMUNICATION

Fill in the table picking up the advantages of different types of business organization from the list given below. Be ready to prove that you have made the right choice.

Individual proprietorship Partnership Corporation
           

 

> there is a possibility to delegate rights and authority;

> there is a possibility to use the experience and knowledge of a number of people;

> each of the full partners can act on behalf of the partnership;

> it is easy to organize;

> it is easier to attract capital;

> there are potential additional sources of capital;

> shareholder's liability is limited;

> it is the cheapest to organize;

> it is the easiest to start;

> it has the most flexible structure as the authority is all yours;

> working load, ideas, experience and responsibility are shared by the partners.

2. Fill in the table picking up the disadvantages of different types of business organization from the list given below. Be ready to prove all "pros" and "contras" of your choice.

Individual proprietorship Partnership Corporation
           

 

> management observes the interests of the majority;

> full partners have unlimited liabilities;

> it is difficult to control activities;

> it is expensive and difficult to promote;

> it is very difficult to start and liquidate;

> there is a lack of stability:

> personal affairs are easy to mix with business;

> the more shares a partner has the more he loses in case of bankruptcy;

> the rights of shareholders are limited by the Memorandum of Association,

> the interests of the minority are often infringed;

> it is difficult to define the share of each partner.

 


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