І. Give the Ukrainian equivalents for the following words and

word-combinations. Use them in the sentences of your own:

to establish a business; to make a profit; to form a corporation; to file for permission; a charter; to give permission; to create a corporation; certificates of ownership; partnership; the number of shares of stock; proprietorship; to attract a large amount of capital; shareholder; stockholder; small firms; an extra tax on corporate profits; corporate form of ownership; profitable; to set up corporation; the major advantage/disadvantage; to attract talented managers and specialists; to issue dividends; financial resources; to invest; corporate income.

II. Fill in the blanks below with the most appropriate terms

from the list:

a corporate charter; corporation; stock certificates; the corporate profits; the number of shares of stock; the owners; shareholders; expansion; financial resources; corporate income.

1. A business _________ is an institution established for the purpose of making profit. 2. People, who would like to form a corporation, must apply for ________. 3. The charter specifies _________, or ownership parts of the firm. 4. The stockholders are ______ of the corporation. 5. To attract greater ______ the company issues _________. 6. Dividend represents a portion of ________ to shareholders. 7. Corporations have great capacity for growth and ________. 8. The government taxes ________ in addition to the taxes paid by _______ on their dividends.

III. Fill in the blanks with prepositions or adverbs if necessary:

1. Nearly 90 per cent... all business is done... corporations. 2. They are established... the purpose... making profit. 3. There are several advantages... the corporate form... ownership. 4. Corporations have great capacity... growth and expansion. 5. Corporations face... some... major disadvantages. 6. The government taxes corporate income... addition... the taxes paid... shareholders... their dividends.

IV. Match each term in Column A with its definition in Column B:

Column A Column B

1. organization	a. A business that is owned by two or more people.
2. sole proprietorship	b. People or groups working for a common purpose and whose tasks are often divided into specializations.
3. partnership	c. Payments made from the earnings of a corporation to its stockholders.
4. corporation	d. Owner of stock in a corporation.
5. charter	e. A business organization created under a government charter.
6. stockholder	f. A document issued by a state government granting a corporation permission to operate.
7. dividends	g. Owners of the partnership have unlimited liability.
8. general partnership	h. A business that is owned by one person.

V. Define which of the following items best completes the statement:

1. Proprietorships are

a. difficult and costly to organize.

b. the most numerous kind of business organization.

c. business with more than one owner.

d. mostly used by large business organizations.

2. One advantage of a partnership is that

a. adding partners brings in more capital to the business.

b. each partner is subject to unlimited liability.

c. partners get along well together.

d. the business continues even if one partner dies.

3. A corporation is an «artificial person». This means the corporation

a. is difficult to organize.

b. can raise only limited capital.

c. is the most numerous form of business organization.

d. can sue or be sued, enter into contracts, and must pay taxes.

4. In a large corporation

a. stockholders run the company.

b. the board of directors owns the corporation.

c. ownership and management are separated.

d. there is no need to operate under a charter and bylaws.

VI. Say whether these statements are true or false and if they are

false say why:

1. Nearly 90 per cent of all business is done by corporations. 2. Because they involve so few people, sole proprietorships and partnerships are not true business organizations. 3. Corporations are better than any other organizational form. 4. There are no real advantages to any of the three main forms of business organizations. 5. Corporations have a lot of owners called stockholders. 6. They can buy and sell their shares without ending the business.
7. Stockholders don’t have to pay a special tax on profits. 8. Stockholders must pay corporate income tax. 9. You have to hire a lawyer to organize a corporation. 10. Corporations have great capacity for growth and expansion.

VII. Answer the following questions:

1. Is nearly 90 per cent of all business done by corporations? 2. What is a corporation? 3. What is necessary to form a corporation? 4. What does the charter state? 5. Does it specify the number of shares of stock? 6. What may a corporation issue? 7. What does a dividend represent? 8. What is the major advantage of the corporate form of ownership? 9. Do corporations have great capacity for growth and expansion? 10. What disadvantages do corporations face? 11. There is also an extra tax on corporate profits, isn’t there?

VIII. Translate into English:

1. Корпорацiя — це організація, створена з метою одержання прибутку. 2. Для того, щоб створити корпорацiю, необхiдно звернутися за дозволом у той штат, де пiдприємство матиме свою штаб-квартиру.
3. Корпорацiя може випускати та продавати акції. 4. Якщо корпорацiя прибуткова, вона видає пайовикам дивiденди або чек на відповідну частку прибутку корпорацiї. 5. Корпорацiя має більше можливостей для залучення фінансових ресурсів, ніж партнерство. 6. Корпорацiя може пропонувати вищу заробітну плату і в такий спосіб приваблювати тала­новитих менеджерів та спеціалістів.

IX. Replace the Ukrainian words and phrases by suitable English

equivalents in the correct form. Retell the passage:

(Корпорація) is a company chartered by (державою) and owned by stockholders. (Акціонери) are represented by (радою директорів), and (несуть відповідальність) for company actions and (борги) only up to the amount each stockholder (інвестував). This feature is called (обмеженою юридичною відповідальністю). (Перевагою)of the corporation is that it is relatively easy to raise (фінансовий капітал). Transferring (власності) is also easy, since it frequently means only (продаж акцій).

(Недоліками) are that corporations are subject to special (урядового регулювання), and that individual stockholders may have a rather limited say in company operations.

X. Memorise the following proverbs with the word «business».

Translate them into Ukrainian:

1. Everybody’s business is nobody’s business.

2. Every man to his business.

3. Business before pleasure.

COMMUNICATIVE SITUATIONS

1. Make a report in your class: «Sole proprietorship is the most common form of business ownership».

2. You would like to open your own business. What type of business organizations would you prefer? (sole proprietorship, partnership or corporation)? Explain your choice.

3. You want to go into business with a partner. Consult a lawyer how to form a partnership.

4. You are at the conference. The theme of your report is: «Advantages and disadvantages of the corporate form of ownership».

5. Discuss with your friends advantages and disadvantages of the three forms of business ownership. Use the table given below:

 

Form of ownership	Advantages	Disadvantages
Sole proprietorship	1. Retention of all profits.   2. Ease of formation & dissolution. 3. Freedom & flexibility of management. 4. Secrecy of operation.	1. Unlimited financial liability. 2. Limited financial resources. 3. Management deficiencies. 4. Lack of continuity.
Partnership	1. Ease of formation. 2. Complementary management technical skills. 3. Greater financial resources. 4. Employee incentive.	1. Unlimited financial liability. 2. Disagreements among partners. 3. Lack of continuity. 4. Complexity of dissolution.
Corporation	1. Limited financial liability. 2. Specialized management skills. 3. Great financial capability. 4. Unlimited life span. 5. Ownership easily transferred. 6. Capacity for growth.	1. Difficult & costly to establish. 2. Lack of personal interest by management. 3. Legal restrictions & government regulations. 4. Lack of secrecy in operation.

GRAMMAR EXERCISES