Understanding the reading

1. What makes an entrepreneur choose partnership instead of sole proprietorship? What characteristics of the sole proprietorship do partnerships have? In what way do they differ?

2. Why is limited liability a mixed blessing?

3. Why are lawyers, doctors and accountants prohibited from forming companies with limited liability in some countries?

4. Why are the majority of businesses all over the world limited companies? What does it mean? What are the advantages of corporations over the other forms of businesses?

5. What disadvantages do the corporations face?

6. What are the rights and duties of a corporation? What should be done in order to be legally recognized as a corporation?

7. What is a share of stock? What role do the stockholders play in the activities of a corporation? Who runs the day-to-day operation of the corporation?

8. What is a dividend? Who decides in what way the profit of the company should be distributed?

9. Why do many corporations arrange for management to own shares of stock?

10. What is understood by a public limited company in Great Britain? In what way does it differ from the similar businesses in the USA?