II. Fill in the blanks below with the most appropriate terms

from the list:

a corporate charter; corporation; stock certificates; the corporate profits; the number of shares of stock; the owners; shareholders; expansion; financial resources; corporate income.

1. A business _________ is an institution established for the purpose of making profit. 2. People, who would like to form a corporation, must apply for ________ . 3. The charter specifies _________ , or ownership parts of the firm. 4. The stockholders are ______ of the corporation. 5. To attract greater ______ the company issues _________ . 6. Dividend represents a portion of ________ to shareholders. 7. Corporations have great capacity for growth and ________ . 8. The government taxes ________ in addition to the taxes paid by _______ on their dividends.

III. Fill in the blanks with prepositions or adverbs if necessary:

1. Nearly 90 per cent ... all business is done ... corporations. 2. They are established ... the purpose ... making profit. 3. There are several advantages ... the corporate form ... ownership. 4. Corporations have great capacity ... growth and expansion. 5. Corporations face ... some ... major disadvantages. 6. The government taxes corporate income ... addition ... the taxes paid ... shareholders ... their dividends.

IV. Match each term in Column a with its definition in Column b:

Column A Column B

1. organization	a. A business that is owned by two or more people.
2. sole proprietorship	b. People or groups working for a common purpose and whose tasks are often divided into specializations.
3. partnership	c. Payments made from the earnings of a corporation to its stockholders.
4. corporation	d. Owner of stock in a corporation.
5. charter	e. A business organization created under a government charter.
6. stockholder	f. A document issued by a state government granting a corporation permission to operate.
7. dividends	g. Owners of the partnership have unlimited liability.
8. general partnership	h. A business that is owned by one person.

V. Define which of the following items best completes the statement:

1. Proprietorships are

a. difficult and costly to organize.

b. the most numerous kind of business organization.

c. business with more than one owner.

d. mostly used by large business organizations.

2. One advantage of a partnership is that

a. adding partners brings in more capital to the business.

b. each partner is subject to unlimited liability.

c. partners get along well together.

d. the business continues even if one partner dies.

3. A corporation is an «artificial person». This means the corporation

a. is difficult to organize.

b. can raise only limited capital.

c. is the most numerous form of business organization.

d. can sue or be sued, enter into contracts, and must pay taxes.

4. In a large corporation

a. stockholders run the company.

b. the board of directors owns the corporation.

c. ownership and management are separated.

d. there is no need to operate under a charter and bylaws.

VI. Say whether these statements are true or false and if they are

false say why:

1. Nearly 90 per cent of all business is done by corporations. 2. Because they involve so few people, sole proprietorships and partnerships are not true business organizations. 3. Corporations are better than any other organizational form. 4. There are no real advantages to any of the three main forms of business organizations. 5. Corporations have a lot of owners called stockholders. 6. They can buy and sell their shares without ending the business. 7. Stockholders don’t have to pay a special tax on profits. 8. Stockholders must pay corporate income tax. 9. You have to hire a lawyer to organize a corporation. 10. Corporations have great capacity for growth and expansion.