Corporation
A business corporation is an institution established for the purpose of making profit. It is operated by individuals. Their shares of ownership are represented by stock certificates. A person who owns a stock certificate is called a stock-holder.
There are several advantages of the corporate form of ownership. The first is the ability to attract financial resources. The next advantage is that a 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.
The privately owned business corporation is one type of corporation. There are some other types too. Educational, religious, charitable institutions can also incorporate. Usually such corporation does not issue stock and is nonprofit. If there is a profit it is reinvested in the institution rather than distributed to private stockholders.
In some western countries, cities, states, federal government and special agencies can establish governmental corporations. A few examples of these governmental corporations are state hospitals and city owned utilities. Governmental corporations are non-profit as a rule and usually they do not issue stock certificates.
Business Partnerships in the USA
When a proprietor wants to expand a business, one way to do it is to form a partnership, a business formed for profit by two or more co-owners. The rights and duties of a partnership are regulated by laws of the state where it is formed and by a legal agreement entered into by the co-owners. Usually an agreement specifies the amount of the money each is investing and duties each partner assumes. A partnership agreement also may provide for a «silent partner» who does not take part in the management, but who invests money in the business.
The partnership has the advantage of pooling managerial talent. One partner may be qualified in production, another in marketing. The partnership, like individual ownership, is exempt from most of the reporting that the government requires of corporations. Furthermore, it has a favorable tax position when compared with the corporation. Federal taxes are paid by individual partners on their share of earnings; beyond that the business is not taxed.
A major disadvantage of the partnership is that each member is liable for all the debts of the partnership; the act of any partner is legally binding upon the others. If one partner takes a large amount of money from the business and squanders it, the others must pay the debt. Partnerships suffer another major disadvantage: decision-making is shared. If partners have serious and constant disagreements, the business is bound to suffer.
Nonetheless, the partnership remains a vital part of the overall business economy.
- Федеральное агентство по образованию
- I. Введение
- Указания по работе с текстами для самостоятельной работы дома (10 тыс. Знаков).
- I семестр Outside Sources of Financing
- Vocabulary
- Short-term financing
- Long-term financing
- 1. Short-term financing is money that will be used for one year or less and then repaid.
- Answer the questions:
- Accounting General definition of accounting
- The basis for the accounting process
- A balance sheet
- An income statement
- The importance of the above two statements
- 1.General definition of accounting
- 2. The basis for the accounting process
- 3. A balance sheet
- 4. An income statement
- 5. The importance of the above two statements
- Answer the questions:
- In other words, the management is the process of coordinating the resources of an organization to achieve the primary organizational goals.
- Questions to the text:
- Forms of business in the usa Active vocabulary
- Questions to the text:
- Is the record-keeping and report-filing so necessary for sole traders in the usa?
- Forms of Business Ownership Active vocabulary
- III семестр Text 1. Currency and Other Forms of Exchange
- In which two ways might a creditor who needed the money dispose of a Bill? Text 2. Depositing Money with a Bank
- Questions on the text
- In what circumstances an overdraft on current account is permissible?
- Text 4. Bank Investments
- In general the banks do not lend to industry for long periods of time or for investment projects. They regard themselves as providing working capital rather than fixed capital.
- Assets and Liabilities
- Bookkeeping as Part of Accounting Cycle Active vocabulary
- Accounting Information Active vocabulary
- Questions to the text:
- Специальность мен, гму IV семестр (6-летки) the manager's role /3 000 3hak0b/
- Decision-making /4 000 знаков/
- In carrying out management functions, such as planning, organizing motivating and controlling, a manager will be continually making decisions. Decision-making is a key management responsibility.
- Traditional economies
- Market economies
- 2. Freedom of choice and enterprise.
- 4. Competition.
- 5. Markets and prices.
- Command Economies
- Mixed Economies
- Notes to the text:
- Inflow (out flow) приток (отлив, отток)
- If the company is doing badly and the shareholders sell their shares they get…
- If there is a regular inflow of receipts from sales and regular outflow of payment for expenses … corporate finance
- Notes to the text:
- Interest on bond has to be paid out …
- Why finance?
- I. Ответьте на следующие вопросы к тексту:
- In financing business operation, a company relies almost entirely on short-term financing.
- The Balance Sheet
- What is accounting?
- In 1440s they were ... Who developed accounting further as a result of information needs.
- In the 19th century managers had to develop accounting systems ...
- Accounting
- Notes to the text
- Vocabulary Exercise
- Bookkeepers, accountants and controllers
- Notes to the text:
- Auditor and their report
- Notes to the text:
- Sole Proprietorship
- Corporation
- Large Corporations in the usa
- Corporate Finance
- What Special Problems Face Small Business
- Starting-up Financing
- 3 Семестр additional material banks and financial intermediaries
- In the form of checking accounts, savings accounts, or other types of bank deposits.
- Commercial banking
- Types of banks
- Bank of england
- Additional Material
- 4 Семестр managing in future
- Financial statements
- Bookkeping
- What is accounting
- The development of accounting thought
- The profession of an accountant in the usa
- Accounting industry in the usa
- Bookkepping as part of accounting
- Modern accounting system
- 1. Goods and services
- 2. Resources
- 3. Households
- 4. Markets
- The role of government
- The role of government (to be continued)
- The mixed economy
- In a mixed economy the government may also be a producer of private goods such as steel or motor cars. Examples of this in the uk include nationalized industries such as steel and coal.
- Can inflation be beneficial?
- Market Economy (1400)
- Mixed Economies (500)
- Содержание: