Вопрос № 800780 - Английский язык

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Corporations issue small units of ownership known as shares of stock. A person who owns one or more shares of stock is a shareholder (also called a stockholder).
The corporation uses the money received from the initial sale of stock to buy equipment, supplies, and inventory; to hire labor; and to pay other expenses. As goods and services are produced and sold, more income flows into the business. Often earnings are reinvested. Money is borrowed to provide for further expansion, and sometimes more shares of stock are sold.

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Because liability is limited to investment, and because owners buy and sell their interests with comparative ease, many persons invest in corporations. Thus, great sums of money are raised. Small and large investments by thousands of persons and institutions are combined to fund the giant corporations.

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Because liability is limited to investment, and because owners buy and sell their interests with comparative ease, many persons invest in corporations. Thus, great sums of money are raised. Small and large investments by thousands of persons and institutions are combined to fund the giant corporations.

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With substantial capital, efficient corporations generally have greater financial strength than do other forms of business organization. This enables corporations to attract superior workers by offering big salaries and fringe benefits. Moreover, because the corporation is not automatically dissolved by the death of any owner, it usually provides better assurance of continued employment.

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In terms of purpose, a corporation is either public or private. A public corporation is established for a governmental purpose. State hospitals and state universities are public corporations. A private corporation is established by private citizens for a business or charitable purpose. Sometimes a private corporation is called public because its stock is broadly owned by the general public. This differentiates it from a private corporation where the stock is owned by only one or a small number of shareholders. The latter type is also known as a close or closely-held corporation.

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Private corporations are classified as profit-making, nonprofit, and public service corporations. A profit-making corporation is a private corporation organized to produce a financial profit for its owners. Examples abound: banks, manufacturing and merchandising companies, and airlines. A nonprofit corporation is organized for a social, charitable, or educational purpose. Churches, colleges, fraternal societies are typically organized as nonprofit corporations. 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.