IV. Answer the following questions.

1.What is the role of business? 2. How do different businesses differ?

3. What are the rights and duties of a corporation?

4. What should be done in order to be legally recognized as a corporation?

5. What is a share of stock? What role do the stockholders play in the activities of a corporation?

6. Who runs the day-to-day operation of the corporation? 7. What is a dividend?

8. Who decides in what way the profit of the company should be distributed?

9. What are the advantages of corporations over the other forms of businesses?

10. What disadvantages do the corporations face?

11. Why do many corporations arrange for management to own shares, of stock?

V. Say whether these statements are true or false, explain why?

1. Corporations are easy to organize, decisions can be made quickly profits are shared with only a few people, and the owners are responsible for success or failure of the business. 2. If the corporation makes a loss the board may decide to reinvest some of the profit in the corporation for expansion, modernization, or research and development.

3. If the corporation goes bankrupt or is sued, the stockholders lose the value of their stock. They are personally responsible for any money the corporation owes.

4. Bonds represent ownership in the corporation.

5. In corporations with many owners or stockholders the individual share of profits in the form of dividends is comparatively small.

6. In very large firms the shareholders have very little to do with the day-to-day running of the firm.

VI. What sort of company is it?

<== попередня сторінка	\|	наступна сторінка ==>
III. Read and translate the text.	\|	There are many types of business organization and the different terms can be confusing. Match the various types of organization with their definitions.

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