Текст 2.1. A business corporation is an institution established for the

Текст 2.
1. 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.
2. There are several advantages of the corporate form of ownership. The first is the ability to attract financial resources. The next advantage is that the corporation attracts a large amount of capital it can invest in plants, equipment and research. And the third advantage is that a corporation offers salaries and thus attractstalented managers and specialists.
3. 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 stocks and is nonprofit. If there is a profit it is reinvested in the institution rather than distributed to private stockholders.
4. In some western countries, cities and states federal government and special agencies are establishing governmental corporations now. A few examples of these governmental corporations are state universities, state hospitals and city owned utilities. Governmental corporations are non-profit as a rule and usually they do not
issue stock certificates.
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