Unit 10 Forms of Business

Large Corporations in the USA

Although there are many small and medium-sized corporations, bigger business units are needed to perform certain services in the vast economy. Large corporations can supply goods and services to a greater number of people across a wider geographic area than small businesses. They serve consumers across the nation and across the world. Corporate products tend to cost less per unit sold. Moreover, consumers benefit from the availability of corporate “brand names”, which they recognize as guaranteeing a certain level of quality wherever purchased.

Large corporations also have the financial strength to research, develop and produce new goods. Their scientific know-how, innovation and technical capability are critical to maintaining the nation’s competitiveness and productivity.

In the USA, a corporation is a specific legal form of organization of persons and resources chartered by one of the 50 states for the purpose of conducting business. When people and resources are brought together, the result in the eyes of the law – is a person (Indeed, the Latin word “corpus” means “body” or “person”). A US corporation, distinct from any individual human being, may own a property, sue or be sued in the court and make contracts. For this reason, a corporation is an ideal vehicle for the conduct of business by many smaller enterprises as well as larger ones.

The corporate form of business is a more flexible instrument for large-scale economic activity than the sole-proprietorship or partnership.

First, the corporation itself has legal standing, it safeguards its owners. Second, the owners of shares of stock have limited liability; they are not responsible for debts. Third, corporate stock is transferable. An owner of stock can sell his or her holdings at any time or pass the stock along to heirs.

Note:

to sue – подавать в суд

heir – наследник

A Business Plan

Life may be very chaotic when you are starting or running a small business. The telephone calls to make, the letters to write, the decisions to take – all the day-to-day emergencies can push aside the sort of long-term strategic planning which is essential to keep your enterprise on the right track.

Doing a business plan before you start your firm is vital because it will spotlight potential problems before they arise and suggest ways to solve them – saving your time, money and headaches. A business plan consists of organized answers to a series of carefully thought-out questions vital to starting any successful company. Assembling this plan will be your first opportunity to manage your new business.

When people talk about a business plan they are usually referring to a formal written document. A written document helps to focus your thinking and gives you something to refer to later. Doing a business plan you write long-term objectives, estimates and forecasts on paper. There is nothing like writing something down to help clarify your mind and reveal your uncertainties and weaknesses.

But a business plan is more than a document, it is the entire process you go through to clarify and evaluate your prospective company. Once you have put down your plan, do not necessarily accept that it is set in concrete. Forecasts and objectives change as new bits of information and your better experience emerge.

As it is important for your plan to look professional, you may consider seeking advice and help on its production. This is available from enterprise agencies and training courses, accountants and corporate finance specialists. If your forecasts are likely to be fairly complicated and need changing, you might consider using a computer programme designed to enable you to produce forecasts and to examine the effect changes will have on the results.

Notes:

to spotlight – сделать что-либо центром внимания; выдвинуть на первый план

to manage – управлять, руководить

to refer to something – ссылаться на что-либо

to evaluate – оценить

to be set in concrete – быть неизменным, не подлежать изменениям