What is a Corporation?

A business corporation is an institution established for the purpose of making profit. It is formed as a result of the efforts of one or more persons called promoters. Corporation is operated by individuals. Their shares of ownership are represented by stock-certificates. A person who owns stock-certificates is called stockholder.

Stockholders indirectly control the affairs of a corporation by electing the directors. They form a corporation’s board of directors.

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

There are different forms of corporations such as a private corporation, a nonprofit corporation and a public service corporation.

A private corporation is established by private citizens for a business and profit.

A nonprofit corporation is organized for a social, charitable or educational purpose. Usually such corporation does not issue stocks and is nonprofit. If there is a profit it is reinvested in the company rather than distributed to private stockholders.

Finally, a public service corporation (also called a public utility) is generally a private company that furnishes an essential public service. Electric, gas and water companies are examples.

1.2. Соедините слова с их русскими эквивалентами

1. stockholder a) предлагать 2. promoter b) благотворительный 3. offer c) акционер 4. charitable d) владение 5. ownership e) доставлять, предоставлять 6. furnish f) учредитель 7. affair g) преимущество 8. distribute h) устанавливать, организовывать 9. advantage i) распределять, распространять 10. establish j) дело

1.3. Переведите словосочетания на английский язык.

Совет директоров, частная корпорация, оборудование, заработная плата, некоммерческая корпорация, корпорация общественного обслуживания, акция, корпоративная форма собственности, выпускать акции, привлекать финансовые ресурсы, предлагать более высокую заработную плату.

1.4. Ответьте на вопросы.