LESSON 3 CORPORATIONS Created By: Putri Anggraeni. NS NIM: 2083310056

LESSON 3
CORPORATIONS

EXERCISE 1 : STRUCTURAL PRACTICE

1. Our business is a paint factory
Our business is growing
Our business, as a paint factory, is growing
2. The owners of a corporation are the stockholders
The owners of a corporation must vote
The owners of a corporation, as the stockholders must vote
3. Mr. Ames is a lawyer
Mr. Ames is giving us information about corporations.
Mr. Ames as a lawyer, is giving us information about corporation
4. Robert is a manager
Robert wants to form a corporation
Robert as a manager, wants to form a corporation
5. A charter is a certificate of incorporation
A charter is granted by a state officer
A charter is a cerificate of incorpration, is granted by a state officer
6. The main officers are the president and the vice president.
The main officers will make decisions
The main officers as the president and the vice president, will mae decisions

EXERCISE 2 : SUBSTUTION DRILL

1. When we obtain the charter, what do we have to do after?
2. When we receive the charter, what do we have to do after?
3. When we receive the certificate, what do we have to do after?
4. When we receive the certificate, what do we should to do after?
5. When he receive the certificate, what do we should to do after?
6. When he get the certificate, what do he should to do after?
7. When he get the papers, what do he should to do after?

EXERCISE 3 : FURTHER STRUCTURAL PRACTICE

1. We mailed the application last week. (wait for a reply)
We have been waiting for a reaply since mailed the application
2. We discussed corportions last month. (plan a change)
We have been planing a change since discussed corporations
3. They received the corporate charter two weeks ago. (plan a meeting)
They have been planing a meeting since received the corporate charter
4. They started the meeting five minutes ago. (vote for directors)
They have been voting for directors since started the meeting
5. He bought some stock five years ago. (make money)
He has been making money since bought some stock
6. He became a company officer last year. (work hard)
He has been working hard since became a company officer

COMPREHENSION QUESTIONS

1. Who are the owners of a corporation?

2. Is a corporation necessarily larger than a sole proprietorship or a partnership?

3. List a least three advantages of the corporate form of ownership?
- The first is its ability to attract financial resources
- A second advantage is that if the corporation attracts a large amount of capital, it can make large investment in plants, equipment and research.
- A third advantage is that a corporation can offer high salaries and thus attract talented managers.
4. What do you think the disadvantages of the corporate form of ownership might be?

5. The business corporation generally issues stock to stockhlders. What types of corporations ssually do not issue stock?

6. Name some well-know corporations from various countries of the world, such as the U.S.A., Germany, Japan, and your own country.what does each corporation on your list do? What types of businesses are likely to take a corporatte form of ownership?

VOCABULARY PRACTICE

Charitable Utilities Institution Nonprofit
Stock Resources Investment

1. Gas, water and electric power companies are utilities.
2. I bought some stock in Pan Am and IBM.
3. What do you think is a better investment, buying stock or buying real estate?
4. The Red Cross is an internasional organization for the relief of suffering in times of war or disaster, it is a charitable organization.
5. The university is a institution corporation; it is an educational nonprofit that reinvests all its money.
6. The company issued stock in order t attract greater financial resources