III. Answer the following questions.

1. How can you explain the fact that sometimes people who run a corporation are not its owners?

2. What is the role of public opinion and how can it affect the activity?

3. Why is the corporate form of business a very flexible instrument for large-scale economic activity?

4. How can you explain the fact that usually management observes the interests of the majority shareholders?

IV. Complete the following sentences.

1. Corporations issue shares ...

2. In private limited companies ...

3. In public limited companies ...

4. Companies invite people ....

5. Whether the share price goes up or down depends on ...

6. The corporate form of business is very flexible instrument for ...

7. Shareholders are not responsible for ....

8. The corporate business organization has drawbacks as well as...

9. As a separate legal entity, the corporation must....

10. The rights of shareholders are limited by the Memorandum of Association, the interests of the minority ...

V. True-false questions

Decide whether the statements are true or not. Correct the wrong ones.

1. _ Corporation is the easiest way to organize a business.

2. _ In private limited companies shareholders can trade shares to anyone who is prepared to buy them through intermediaries, while in public limited companies only few people own shares and trade them directly.

3. _ Corporation is not liable for the whole of its debts.

4. _ If the corporation's assets are not sufficient to meet debts shareholders will have to pay them.

5. _ Only the owners run a corporation.

6. _ Whether the share price goes up or down depends greatly on the performance of the corporation as well as on the public opinion.

7. _ Public opinion cannot affect the prices and the efficiency of the company's performance.

8. _The corporate form of business is also very flexible instrument for small business development.

9. _An owner of a share can sell his or her holdings at any time or pass the share along to heirs.

VI. Vocabulary practice Find an appropriate word for each blank space using the following words.

corporate debts	interests	to organize a business	taxes	public opinion
shareholders participation	the experience and knowledge	shareholders	disinterest	dividends

1. Corporation is the most expensive way __.

2. Shares of corporations regulate __.

3. If the corporation's assets are not sufficient to meet debts no action can be taken against __.

4. _____ can affect the prices and efficiency of the company's performance.

5. Shareholders are not responsible for ____.

6. A corporation is not damaged by the death or ____ of a particular person.

7. As a separate legal entity, the corporation must pay ____.

8. When the corporation passes along profits to individuals in the form of dividends, the individuals are taxed again on these ____.

9. Sometimes managers are tempted to act more in their own ____ than those of the shareholders.

10. There is the possibility to use ____ of a number of people in corporation.