Монологи на английском языке с текстом и переводом. №83. Тема: Различные типы корпоративных структур.

   
Okay, now we're going to talk about some different types of corporate structures. I should point out right up front that we're only going to talk about two business structures today. There are others, but I want to keep things simple to start with. So, we're going to compare just two of them - two business structures. The first one is a general partnership, and the second one is a corporation.
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There are certain advantages and disadvantages to having one or the other of these structures. But I don't want to get ahead of myself. Let's back up a minute and define what we're talking about here. So we've got a general partnership, obviously you need two people for that, and a corporation, which could have one, two, or more people involved. The first step is to form the business.
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With a general partnership, you don't really have to do anything official. You just make the agreement between you and your partner. Probably you will want some kind of legal document drawn up by a lawyer, but you don't need to do anything official at the state or national level. For a corporation, on the other hand, you have to file with the state where you're going to have your business.
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You have to tell the state the name of your corporation, where your business is located, the address, and who the officers of the corporation are. So, the first big difference is where permission for the business comes from. General partnership permission is arranged between the partners. Corporation permission is arranged with the state. Liability is another big difference.
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If the business gets in trouble or has a big debt, who will be held responsible? In a general partnership, both partners are responsible. They share responsibility. In a corporation, the business has the responsibility. What does that mean? In a corporation, you have shareholders. People buy shares of the company. The ones with the most shares have the most power.
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They can say what the company can or can't, should or shouldn't do. But if the company has a debt, the shareholders are not the ones who have to pay it. The company is responsible, not the shareholders. I guess that leads us to the next difference - management. Who manages the company? With a general partnership, the partners manage things. They make all the decisions.
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They share the power equally. With a corporation, a board of directors makes decisions. The board is elected by the shareholders. Now if you remember what I said, the shareholders with the most shares have more votes, so they can elect the people they want. Are you starting to see some of the advantages and disadvantages to each type of business structure? Well, there are more. Let's talk about taxes...
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