Exercise 19. Match terms from the text C with their definitions

1. Shares A. A tax that corporations have to pay apart from ordinary

income tax.

2. Stock exchange B. Gathering of all the stockholders to decide on

principal issues of running a corporation.

3. Directors or managers C. A place where shares are bought and sold.

4. Annual stockholders meeting D. Certificates of ownership indicating that

a definite amount

of money has been invested.

5. Corporate tax E. People who run the corporation but are not

necessarily its owners.

Exercise 20. Identify whether each statement below is true (T) or false (F), according to what you have read in the text. Correct the false statements. Use the following phrases:

Agreement: I agree with you; You are right; Certainly; Exactly so; I fully support you

Disagreement: I can’t agree with you; I am afraid you are mistaken; Not quite so; This is not true; I disagree with the statement that…

1. A corporation is the easiest to start of all forms of businesses.

2. A corporation is owned by stockholders, and run by executives who may or may not be stockholders.

3. An annual stockholders' meeting is the supreme governing body of a corporation.

4. Shares of both public and privately owned corporations are freely sold and bought by bro­kers at the stock exchange.

5. Stockholders who have more shares also have more votes.

6. A corporation ceases to exist with the death of its founder or partner.

Exercise 21. Answer the questions:

1. What is a corporation?

2. What do corporations issue?

3. How many shares can a stockholder own?

4. Has a stockholder any right in a corporation?

5. What types of corporations are there?

6. Why is it difficult to set up a corporation?

7. How can corporations raise the greatest amount of investment capital?

8. What advantages of corporations?

9. What are disadvantages of corporations?