Пойгина Л.Б., Туринова Л.А. - English for Masters. Management Part 2 (1175657), страница 23
Текст из файла (страница 23)
In the event of _________________________, the preferred stockholders are entitled toany dividend in arrears, and to a return of their investments before common stockholders are paid.11. Of the two classes of stock, _________________________ has a considerably greaternumber of shares authorized because its lower par value makes it affordable to more investors.12. The number of shares of a particular class of stock that may be sold is said to be"_____________________" and the stock that is actually sold is said to be"_______________________________".13.
______________________ acquired by the corporation is reduced from the stockoriginally issued.14. The ________________________ remaining in the hands of the stockholders is said to be"________________________".15. Regardless of the class of stock sold, any funds received from the sale in excess of the paror stated value are recognized as a/an _______________________ and recorded as an addition tothe paid-in capital section of the ________________________________.16. If the stock is sold for less than the par or stated value, the deficiency is recorded as a/an_____________________________, which is a reduction in paid-in capital.a)stockholders; board of directorsb)common stock; preferred stockc)preferred stock; stock certificated)stockholders' equitye)executive officersf)preemptive rights; liquidationg)artificial beingh)authorized; issuedi)Incorporators; articles of incorporationj)par valuek)common stockl)corporate liquidationm)net stock; outstandingn)discount,o)treasury stockp)premium; balance sheet62b)Define the advantages and disadvantages of the corporation and compare them with those ofthe partnership 1.
A professional management staff separate from the owners.2. A separate legal existence that permits the acquisition and disposal of assets in the corporatename.3. The cost and difficulty of organizing the corporation.4. The separation of ownership and control of the firm.5. Limited liability for the stockholders to the extent of their investments in the organization.6. The higher rate of taxation on the corporation.7.
Virtually unlimited ability to raise necessary capital.8. Unlimited life that is not affected by changes in corporate ownership.9. Governmental regulation of the creation of the corporation, issuance of stock, and operationsof the organization.10. Negotiability of stock.4.Discussing exercise1.Prepare a list of ten assets that you personally own. Don’t forget that an asset must be ownedand have money value. Prepare a list of ten assets that a business organization would own.Provide comparative analysis.2.
Ms. Jones began a business on April 1, 2009, contributing to the business the followingassets: Cash, $3,000; Office Supplies, $275; Office Equipment, $700; Furniture, $2,100.What is the total value of the assets that Ms. Taylor contributed to the business? What is thevalue of Ms. Jones’ ownership (capital) in the business?3.Two advantages of the corporate form of organization are practically unlimited ability to raisecapital and (a) lack of governmental regulation of activities (b) unlimited life (c) lower rate oftaxation on corporations. Choose the right version.4.The primary difference in the accounting for a corporation, as opposed to a sole proprietorshipor a partnership, lies in the area of (a) income (b) capital (c) liabilities.
Choose the rightversion.5.If a corporation is liquidated, after creditors are paid, a return on investment is made first to theholders of (a) common stock (b) preferred stock (c) treasury stock. Choose the right version.6.The corporate form of organization cannot be adopted by certain forms of (a) charitableorganizations (b) retail businesses (c) "personal service" businesses. Choose the right version.7.The income earned by a corporation and the dividends paid are shown in an account entitled (a)"Common Stock" (b) "Retained Earnings" (c) "Stockholders’ Equity". Choose the rightversion. 5.Summarizing exercisea)Sum up the main points and concepts presented in Text 8.
Right the plan of the Text inthe form of statements. b)Develop your plan into a summary. 63Text 91. Skimming exerciseSkim through the text and (hid out it the best subtitle for each of the logical parts:a) Claims;b) Fire and accident insurance;c) Marine insurance policies;dj Insurance procedures;e) Lloyd's of LondonInsurance: an overviewI_____________________________Companies and individuals protect themselves against loss, damage, or injury by taking out insurancepolicies, which are contracts against possible future risks. The usual process of insuring a business or oneselfis as follows:A proposal form is completed by the firm or person who wants insurance cover.
This tells the insurancecompany what is to be insured, how much the policy is worth, how long it is to run, and under what conditionsinsurance is to be effected, as the policy may not automatically cover the insured against all risks.Underwriters, who will pay compensation in the case of a claim, then work out the premium, i.e. the price ofinsurance.The premium is usually quoted in pence per cent, i.e. pence per hundred pounds. This means that for every£100 of insurance you will have to pay x pence.
So if you insure your stereo for £800 at 25p%, you will haveto pay £2.00 per annum for the premium.If the insurers are satisfied with the information given on the proposal form, they will issue a cover note.This is not Ihe policy itself, but an agreement thai the goods are covered until the policy is ready.
Once the64policy is sent it will tell the client that he is indemnified against loss, damage, or injury under the conditionsof the policy. Indemnification means that the insurance company wil l compensate the client to restore him tohis original position before the loss or damage. Therefore, if you insured your car for £4,000 and threemonths later it was damaged, you would not receive £4,000 for the car. but its market price, which mighthave depreciated by 20% to £3.200.
The insurance company w i l l also have the right of subrogation, whichmeans they can now claim the wrecked vehicle and sell it for any price they can get.In the case of injury or death to an insured person, or in the case of Life Assurance, where a fixed amountis to be paid over the years so that a total sum, or pension, will be paid at the end of a period, the principle ofbenefit payment comes into operation. This means that the injured person wil l be paid compensation basedon loss of earnings or suffering. Life Assurance payments are calculated on annual contributions, plus interestthe company received on investing the premiums.Insurance companies are large institutional investors on the slock market, and by investing premiums theyare able to cover claims for compensation or pay on Life Assurances policies which have matured.II ________________________Fire insurance companies offer three main types of insurance policy:1. insurance of home and business premises and their contents;2.
'special perils' policies, which protect the insured person against loss or damage due to special factors,e.g. flooding or earthquakes;3 consequential loss insurance, which insures against loss of profit in the period after a fire. e.g. while afactory is being rebuilt.Accident insurance covers four areas:1. Insurance of liability, which covers employers' liabilities for industrial accidents, accidents to peopleattending functions on company business, and motor insurance.2. Property insurance, which is part of the service fire offices provide, but also includes a wide range ofprotection against riots, terrorism, gas explosions, etc. Usually, the client takes out an all risk policy offeringfull protection.3. Personal accident insurance, which offers compensation in the form of benefit payments to peopleinjured or killed in outings, playing games, e.g.
ice hockey, or travelling by train, coach or aircraft.4. Insurance of interest protects firms against making costly mistakes. For example, publishers mightwant to cover themselves against libel, i.e. being sued for publishing something which damages someone'sreputation.
Accountants and lawyers protect themselves with insurance of interest. We can also includeunder this head Fidelity Bonds, under which firms insure against their employees defrauding them, orstealing from them.III ___________________Lloyd's is not an insurance company, but an international insurance market consistirig~6f over 260approved insurance brokers' firms and more than 20.000 underwriters whose activites are controlled byLloyd's Council which came into being after the Lloyd's Act 1982, and whose appointments are confirmedby the Governor of the Bank of England.If insurance is to be effected through a Lloyd's underwriter (and remember there are other insuranceassociations as well as Lloyd's, e.g.
The American Insurance Association), the transaction has to go througha Lloyd's broker who. working on a commission basis, will contact one or more underwriters on behalf of hisclient to get a competitive rate. Underwriters finance the insurance, which means they will pay the claims,and take the premiums as their fees.
They usually work in syndicates, spreading the risk. There are more thanfour hundred syndicates with over 160 involved in marine insurance, 170 in non-marine, 50 in aviation, and46 in UK motor insurance. Members of syndicates write the insurance details on a Lloyd's slip which is sentto the Lloyd's Policy Signing Office where it is checked and signed on behalf of the syndicate concerned.The underwriter gets a percentage of the premium he guarantees. If. for example, he accepts 15% of a £1,000policy, he will be responsible for £150 compensation in the event of a claim aind will receive 15% of thepremium.Lloyd's members, as we have seen, are not restricted to marine insurance. Until 1971, they did notgenerally deal in long-term business, i.e.
![](https://s.studizba.com/z.php?f=/templates/si/i/noavatar.png&w=100&h=100&t=1"){kind=avatar}
