Unit 3. Corporations Active Vocabulary

a business corporation-корпорация

to make a profit on-извлечь выгоду из…

an individual-чатное

a share-акция, доля

an ownership-владелец

a financial resource-финансовый ресурс

an amount of capital-количество (сумма) капитала

to incorporate-включать, содержать

to issue –выпускать, выдавать

to reinvest-реинвестирвать

utility-практичный

TEXT

A business corporation is an institution established for the purpose of making profit. It is operated by individuals. The shares of ownership are represented by stock certificates. A person who owns a stock certificate is called a stockholder.

There are several advantages of the corporate form of ownership. The first is the ability to attract financial resources. The next advantage is that if the corporation attracts a large amount of capital it can invest it in plant, equipment and research. And the third advantage is that a corporation can offer higher salaries and attract talented managers and specialists.

The privately owned business corporation is one type of corporation. There are some other types too. Educational, religious and charitable institutions can also incorporate. Usually such a corporation does not issue stock and it is non-profit making. If there is a profit it is reinvested in the institution rather than distributed to private stockholders.

In some cities and states, federal government and special agencies can establish governmental corporations. A few examples of these governmental corporations are state universities, state hospitals and city owned utilities. Governmental corporations are non-profit making as a rule and usually they do not issue stock certificates.

Exercise 1. Questions on the text

1. For what purpose is a corporation established?

2. What is the owner of a stock certificate called?

   3. What advantages of a corporation do you know?

   4. Who can be the owners of a corporation?

Exercise 2. Dialogue

Steve: Hello, Nick. How are you getting on?

Nick: Quite all right, thanks. And what about you?

Steve: Everything is all right too. I need some legal advice. My friend and I are thinking of forming a corporation.

Nick: You are going to expand, aren't you? It seems that your partnership has been doing very well.

Steve: Oh, yes. We have some success. Some businessmen are interested in investing in us. So could you explain to me what sort of legal procedure I have to follow to form a corporation.

Nick: At first you have to apply for a corporate charter.

Steve: And then?

Nick: You will need to issue and sell stocks in exchange for investment capital, Steve't you?

Steve: OK

Nick : 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 by laws and choose the company's officers?

Nick: That is what I mean. Though the officers of the company supervise daily management, the stockholders always have the final authority. They vote at annual meetings.

Steve: Well, OK.

Exercise 3. Choose the necessary word and put it in the sentence

1.The stockholders have elected the....

2. This .... has issued the stock.

3. The Board of Directors has chosen the....

4. This.... has greatly expanded.

5. We have already applied for a ....

(company officers, board of directors, corporation, company, corporate charter, bank).

Exercise 4. Give Russian equivalents to the following words:

to establish

a purpose

an advantage

a salary

a charitable institutions

an ability

to attract

a stockholder

to invest

as a rule

Exercise 5. Find the word

Across:

1. one __________ of corporation

4) the shares of ____________

8) it can ___________ it in plant

9) special agencies can __________ governmental corporations

10) ________ talented managers

Down:

2. for the _____________ of making profit

3) is called a _____________

5) distributed to _________ stockholders

6) the _________ to attract financial resources

7) they do not _________ stock certificates

		1.		2.							3.
4.								5.
	6.
													7.
	8.
						9.
10.

Exercise 6. Arrange the following words into three groups according to the place of the stress in these words:

I	II	III
■□□	□■□	□□■

(Advantage, management, institutions, financial, corporation, established, salaries, private, investing, organize).

Exercise 7. Translate into Russian:

1. Do be reasonable.

2. Don't be angry.

3. Не has done his exercises.

4. Do come tonight.

5. Do have another cup of tea.

6. Does he do it?

7. Don't go there.

8. They will do their work tonight.

9. Do write me a few lines.

Exercise 8. Translate into Russian:

1. Did you do it?

2. I do not do it.

3. Do you speak English?

4. Did you see him yesterday?

5. Don't have anything to do with him.

6. Don't open the window.

7. They didn't speak to me about it.

8. Why hasn't your brother done it?

9. Не doesn't work here.

Exercise 9. Use the verb «make» or «do»

1. He ___________ a mistake

2. He wanted to _____ a profit

3. He wanted to ______ homework

4. He wanted to _______ business with Mr Smith

5. He wanted to _______ a remark

6. He wanted to ______ a decision

7. He wanted to ______ an exercise

8. He wanted to _______ a meal

9. He _____ a speech

10. He wanted to ______ a deal with Mr.Black.

Exercise 10. Translate into Russian:

1. I do my work.

2. Do I work? I do not work. 

3. Do come!

4. Не did do it.

5. This did take place.

6. The results of the experiments seem to very good

7. Do you work? Yes, I do.

8. Не worked as well as I did.

Exercise 11. Translate into English. Mind the function of the verb «to have»

1. У меня нет ее адреса.

2. У меня был вчера очень интересный разговор с профессором.

3. У него есть очень интересные книги о растениях.

4. У нас завтра будет собрание.

5. Я должен вставать очень рано.

6. Вы вчера обедали в ресторане?

7. У меня не было времени навестить его вчера.

8. Нужно ли вам идти в библиотеку сегодня.

9. Есть ли у вас синие карандаши?

10. У него большая семья.

Exercise 12. Ask the possible questions:

1. My friend and I are thinking of forming a corporation.

2. Some businessmen are interested in investing in us.

3. I have to follow to form a corporation.

4. They vote at annual meetings.

5. There are some other types too.

6. Educational, religious and charitable institutions can also incorporate.

7. Usually such a corporation does not issue stock and it is non-profit making.

Exercise 13. Translate into Russian

1) TO BE

1. Matter is constantly changing and is constantly moving.

2. The Curies had been working for four years before they discovered radium.

3. Energy is measured in the same units as work.

2) TO HAVE

1. He told her what had happened and left.

2. I will have read the story by 10 o’clock.

3. Have you ever been in Moscow?

3) TO DO

1. Why did you not come by the 9 o’clock train?

2. Don’t go away!

3. Does he help you? — Yes, he does.

Exercise 14. Make the right choice

1. Where ___ the Masons buy their fruit?

►do

►don't

►does

►doesn't

2. ___ the cat like to sleep on the sofa?

►Do

►Don't

►Does

►Doesn't

3. We eat pizza, but we ___ eat hamburgers.

►do

►don't

►does

►doesn't

4. ___ Mrs Miller read magazines?

►Do

►Don't

►Does

5. The girls love tennis, but they ___ love riding.

►do

►don't

►does

►doesn't

6. Mr Nelson speaks Spanish, but he ___ speak German.

►do

►don't

►does

►doesn't

7. Max plays tennis, but he ___ play hockey.

►do

►don't

►does

►doesn't

8. ___ Mr Smith teach English?

►Do

►Don't

►Does

9. ___ the children learn to cook at school?

►Do

►Don't

►Does

►Doesn't

10. They ___ work very hard.

►do

►don't

►does

►doesn't

11. Jane is a teacher of English. She ...French.

►does not teach

►teaches not

►do not teach

12. Those shoes are not very expensive. They ... too much.

►are not cost

►does not cost

►do not cost