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?

11 Charitable 1

I

12. stock

13. Resources

I

14 Institution

I

15 Investment

1

16 Nonprofit

Vocabulary Practice Exercise 1. Choose the necessary word and put it in the sentence.

1. What kind of... is better: buying stock or buying real estate?

2. To attract greater financial... the company issues the stock.

3. A university can be ... corporation.

4. The partners didn't put the same ... into business.

5. The group of people from different countries are going to ... a corporation.

6. The Red Cross is an international... organization.

7. I want to buy some... in IBM and 17 amount General Motors. I of capital

8. An educational... usually reinvests !

all its money. 18 to establish

Dialogue Secretary Good afternoon.

Steve Good afternoon. I'd like to see Mr. Jackson. We have an arrangement with him. My name is Mr. Watson.

Secretary -lust a minute, please. I'll let him know you are

here. Steve Thanks.

Secretary Mr Jackson is waiting for you. Do you know where

his office is? Steve Oh sure, thank you. Jackson Hello, Steve, it's so nice to see you. Sit down,

Please.

Steve Thanks, Nick. How are you getting on? Jackson Quite all right, thanks. And what about you? Steve Everything is all right too. In fact I want to talk to

you about my business. Jackson Oh, I'll be glad to do something for you. Steve Well, Nick. I need some legal advice. John and I are

thinking of incorporating. Jackson You are going to expand, aren't you? It seems that

your partnership has been doing very well. Steve Oh, yes. We have a success. Now some businessmen

are interested in investing with us. So could you

explain me what sort of legal procedure I have

to follow to form a corporation? Jackson At first you have to apply for a corporate charter. Steve Well?

Jackson Let me get this straight. You want to issue and sell

stock in exchange for investment capital, don't you? Steve Exactly.

Jackson After you obtain the charter the stockholders, as

owners, hold a meeting to organize the corporation.

Steve Does that mean we elect our Board of Directors, adopt bylaws and choose the company's officers?