TEST 8
TASK1. Complete the following extract by choosing the correct word or phrase for each blank space from the list below.
TASK2. Rewrite the following passage filling in the gaps with the words which have already appeared in the text. Put the words in the appropriate form.
TASK3. The Articles of Association govern the running of a company and set out the rights and obligations of members and directors. In the following table are the main sections of the Articles of Association. The details below describe the terms and conditions in each section. Match each section to its description.
TASK1. Complete the following extract by choosing the correct word or phrase for each blank space from the list below.
The defendants, who were the proprietors and vendors of a medical preparation called “The Carbolic Smoke Ball”, inserted in the Pall Mall Gazette and in other newspapers the following advertisement:
“$100 reward will be paid by the Carbolic Smoke Ball Company to any person who catches influenza, colds, or any other disease caused by taking cold, after having used the ball three times daily for two weeks according to the printed directions supplied with each ball. $1000 is deposited with the Alliance Bank, Regent Street, showing that we are serious. During the last epidemic of influenza many thousand carbolic smoke balls were sold as preventives against this disease, and in no case was the disease caught by those who had used the carbolic smoke ball. One carbolic smoke will last a family several months, making it the cheapest remedy in the world at the price of $5. The ball can be refilled at a cost of $2.5. Address, Carbolic Smoke Ball Company 27, Princess Street, London.”
TASK2. Rewrite the following passage filling in the gaps with the words which have already appeared in the text. Put the words in the appropriate form.
COMPANY FORMATION
The money needed to start a business is called capital. If a person does not have enough capital he may borrow some from the bank in the form of a loan or overdraft. Capital which is borrowed is called loan capital. Before the bank will give a loan he must pay up some security (such as his house) in case he cannot pay back the money.
If a business owned by one man (a sole proprietor) runs into trouble, the owner is liable to pay all the debts to his creditors, even if he has to sell his private possessions. A sole proprietor is personally liable to his creditors. Unlike a sole proprietor, all the investors in a limited company have limited liability. Investment in a limited company is in the form of shares. Everyone who buys shares in the company is a shareholder. The liability of each shareholder is limited to the amount of his investment.
TASK3. The Articles of Association govern the running of a company and set out the rights and obligations of members and directors. In the following table are the main sections of the Articles of Association. The details below describe the terms and conditions in each section. Match each section to its description.
Sections:
1. Share Capital - f
2. Calls - a
3. Transmission of Shares - b
