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1.1. Complete the following sentences:

1. A company

…IS

2. The most common form of com-pany used for business ventures…

3. Limited company…

4. A company — statutorily author-ized in certain states …

5. An unlimited liability company …

1.2. Match the phrases (1–4) with their definitions (a–d) af-ter it:

1. A private company limited by shares

2. A limited liability company (abbreviated by L. L. C. or LLC)

3. A company limited by guarantee 4. An unlimited company

a) an alternative type of corporation used primarily for non-profit organizations that require legal personality. A guarantee company does not usually have a share capital, but instead it has members who are guarantors instead of shareholders.

b) a type of company which has shareholders with limited li-ability and its shares may not be offered to the general public, un-like those of public limited companies. The liability of the share-holders to creditors of the company is limited to the capital original-ly invested, i. e. the nominal value of the shares and any premium paid in return for the issue of the shares by the company.

c) a legal form of business company offering limited liability to its owners. It is similar to a corporation, and is often a more flex-ible form of ownership, especially suitable for smaller companies with a limited number of owners.

d) a company formed by registration under the Companies Act 1985 where the liability of the members is unlimited — that is, they are liable to contribute whatever sums are required to pay the debts of the company should it go into compulsory liquidation. This is not a common form of company.

9

1.3. Choose the right variant and explain your choice:

1. Generally / general, a company may be a corporation, partnership, association, joint-stock company, trust, fund or orga-nized group of.

2. In English / England law, a company is a form of body corporate or corporation, usually registered under the Companies Acts or similar legislation.

3. Companies’ law is the field of law concerning / con-cerned business and other organizations.

4. The most prominent kind of company, usually referred to as a ‘corporation’, is a ‘juristic person’, i. e. / e. g. it has separate legal personality, and those who invest money into the business have limited liability for any losses the company makes, governed by corporate law.

5. The largest companies are usually listed on stock ex-changes around the world, while private companies choose who their shareholders / office workers are.

6. The defining feature of the corporation is that sharehold-ers own the sole rights to vote under / to the company constitution and to appoint the directors who control the company.

7. Partners / competitors may or may not limit their liabil-ity for company losses, although this is increasingly popular.

8. Even single individuals, also known as sole traders may incorporate themselves and limit their liability in order to carry / conduct on a business.

9. All different forms of companies depend / include on the particular law of the particular country in which they reside.

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