Dialogue 2

(Two friends Susan and Maurice are having supper in a restaurant)

Maurice: Haven't seen you for a long time. What have you been busy with?

Susan: I've been pretty busy. Do you know my friend Nora? I went into business with her.

Maurice: Really? How is it going on?

Susan: Fine, thanks. We get along very well and the shop is at­tracting more and more customers.

Maurice: It sounds well. How many partners are there in your business?

Susan: There are two of us and I am very pleased about it. I've made a right choice. Nora's background is in accounting.

She is very good at keeping the books.

Maurice: And you?

Susan: You know I always liked talking. I guess I am rather good with customers, I enjoy selling things.

Maurice: Well, it sounds interesting. I believe you don't run a risk in your business.

Susan: We haven't had many problems, although I suppose all business can be risky. As partners we are both liable.

Maurice: Did you both put the same amount of money into your business? Do you mind my asking?

Susan: No, we didn't invest the same amount of capital. But I think we've combined our resources very well. I think it's good for both of us.

Maurice: It seems really so. That is one advantage of a general partnership. You can invest less capital than your partner - even no money at all. But you as a partner can contribute important services or skills, sometimes just a name or a reputation.

Susan: Indeed.

Maurice: How did you arrange to distribute profits and losses?

Susan: We share them equally. We hope to be in business for a long time.

Maurice: Nice for you. Now you seem to know a lot about business.

Susan: Not everything yet but the subject becomes quite technical.

Maurice: I am glad to hear it. It's time to go now. See you later. Bye.

Dialogue 3

Secretary: Good afternoon.

Steve: Good afternoon. I'd like to see Mr.Jackson. We have an arrangement with him. My name is Watson.

Secretary: Just a minute, please. I'll let him know you are here.

Steve: Thanks.

Secretary: Mr.Jackson is waiting for you. Do you know where his office is?

Steve: Oh, sure, thank you.

Jackson: Hello, Steve, it's so nice to see you. Sit down, please.

Steve: Thanks, Nick. How are you getting on?

Jackson: Quite all right, thanks. And what about you?

Steve: Everything is all right too. In fact I want to talk to you about my business.

Jackson: Oh, I'll be glad to do something for you.

Steve: Well, Nick. I need some legal advice. John and I are thinking of incorporating.

Jackson: You are going to expand, aren't you? It seems that your partnership has been doing very well.

Steve: Oh, yes. We have a success. Now some businessmen are interested in investing with us. So could you explain to me what sort of legal procedure we have to follow to form a corporation?

Jackson: At first you have to apply for a corporate charter.

Steve: Well?

Jackson: Let me get this straight. You want to issue and sell stock in exchange for investment capital, don't you?

Steve: Exactly.

Jackson: After you obtain the charter the stockholders, as owners, hold a meeting to organize the corporation.

Steve: Does that mean we elect our Board of Directors, adopt bylaws and choose the company's officers?

Jackson: That's what I mean. Though the officers of the company supervise daily management, the stockholders always have final authority. They vote at annual meetings.

Steve: Yes, I see it. By the way, does a corporation have limited liability?

Jackson: It does. It also has the right to own property, to buy and sell and the right to sue and be sued.

Steve: I see. The corporation acts like a person. It has the right of an individual.

Jackson: You are right.

Steve: O. K. Why don't we get together for a game of golf one day next week?