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1.4. Answer the questions and then, in groups of two or three, compare your answers:

1. What is a company? Give as many definitions as you can. 2. How many types of companies do you know? Will you

name them?

3. What is a private company limited by shares (a limited lia-bility company, a company limited by guarantee, an unlimited company)?

4. Do you agree that every company needs its law?

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2. TYPES OF COMPANIES

Text 2

Read the text and remember the word combinations in bold type:

Business is the activity of producing, buying and selling goods and services. A business, a company, a firm or more for-mally, a concern, sells goods or services. Large companies consid-ered together are referred to as big business.

A company may be called an enterprise, especially to em-phasize its risk-taking nature.

Businesses vary in size, from the self-employed person working alone, through the small or medium enterprise (SME) to the large multinational with activities in several countries.

A large company, especially in the US, is a corporation.

The term corporation often is used specifically as business corporations. Corporations may be formed for local government (municipal corporation), political, religious, and charitable purposes (not-for-profit corporation), or for government programs (government-owned corporation). As a generic legal term, ‘corpora-tion’ means any group of persons with a legal personality. Histori-cally, the modern business corporation emerged from the blending of the traditional corporation with the joint-stock company.

Modern business corporation is the dominant type of corpo-ration nowadays. In addition to its legal personality, it has at least three other legal characteristics: a) transferable shares (shareholders can change without affecting its status as a legal entity), b) perpetu-al succession capacity (its possible continued existence despite shareholders' death or withdrawal), and c) limited liability

The defining legal rights and obligations of a corporation consist of the capacities to sue and to be sued, to have assets, to employ agents, to engage in contracts, and to make by-laws govern-ing its internal affairs. Other legal rights and obligations may be assigned to the corporation by governments or courts.

The adjective corporate is often used in these combinations: corporate culture;

corporate ladder; corporate headquarters;

corporate logo; corporate image;

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corporate profits.

2.1. Answer the questions beginning with ‘What’:

1. What is the difference between business and big busi-ness?

2. What is a corporation?

3. What types of corporations do you know?

4. What is the dominant type of corporations today?

5. What combinations with the word ‘corporate’ can you name?

2.2. Correct the mistakes in the sentences 1–6 using words in bold type from the previous text:

1. Before we employ people, we like to put them in job situ-ations to see how they do the work and fit into the corporate ladder.

2. The company has built a grand corporate logo as a per-manent symbol of its power.

3. Our stylish new corporate culture shows our wish to be seen as a more international airline.

4. The economy is growing and corporate headquarters are rising.

5. The rules were introduced to protect women working in factories, but today they make it harder for women to climb the corporate image.

6. Companies hit by computer crime are not talking about it because they fear the publicity will harm their corporate profits.

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