Test 6READING 1 hourREADINGPART ONEQuestions 17Look at the sentences below and the following introduction about the types of ownership.Which type of ownership does each sentence 17 refer to?For each sentence 17, mark one letter (A, B, C or D) on your Answer Sheet.You will need to use some of the letters more than once.1. There is no limit to the number of people holding shares in it.2. The company can list on the stock exchange and the share can be sold to the public.3. The company usually is organized by doctor and lawyer.4. The shares of the company are not allowed to be sold to the public5. The company has to publish its accounts each year.6. The members of the company bear limited liability for debts and losses.7. In this form, people can spend their time in doing what they are best at.APartnershipsOn the whole, this is not a popular form of business organization, but it is often used by people in the professions, like doctors, dentists or lawyers, to expand their business. Greater efficiency is possible because people in this sort of association can spend their time doing what they are best at. If one person is sick, then the remaining partner(s) can carry on the work. The main disadvantage is that even with this form of ownership, the amount of money available to the business may be limited. If people quarrel or disagree over decision making there can be problems and serious delays.BPublic (Plc) CompaniesThese are the largest businesses in the private sector. There is no limit to the number of people holding shares in it and many of the larger companies have their shares listed on the stock exchange. The advantage of big businesses like this is that they find it easier to raise money as banks consider them a good risk. There are strict laws governing the setting-up of this kind of business and each year the company has to publish its accounts. The larger such businesses grow, the more difficult it is to control them. Workers in such businesses may feel that management doesnt understand their problems.CPrivate (Ltd) CompaniesSuch businesses are net allowed to sell shares to the public. They must consist of at least two members, but there is no upper limit to the numbers who own the company. The larger size makes it possible for such companies to borrow more money from the banks or from issuing additional shares to its members. The advantage is that such a business is able to offer its members limited liability (responsibility) for debts and losses. Many companies of this type exist in England, Europe and the U. S.DSole ProprietorshipsSole proprietorships, the most common business form, consist of one person doing business with no legal charter. While they offer the owner great freedom and are easy to form, they also present grave financial risks. General partnerships are merely proprietorships with multiple ewers.PART TWOQuestions 812Read the article about corporation merger.Choose the best sentence to fill each of the blanks.For each blank 812 mark one letter (AG) on your Answer Sheet.Do not use any letter more than once.There is an example at the beginningCorporation MergerThe most common kind of consolidation today is the merger. A merger occurs when two or more companies get together to from one companyWith the deregulation of natural gas, the nations 20 interstate pipeline companies became fearful of cutthroat competition. Some felt that they could increase their efficiency and improve their market flexibility by merging. In 1985 Internorth of Omaha paid $ 2, 3 billion for Houston Natural Gas Corporation, (8) . The system connected markets from coast to coast and raised sales to $10 billion.On occasion, mergers have occurred between smaller companies in an industry dominated by a few giant firms. These smaller companies claim that (9) . They maintain that such action increases competition instead of reducing it. The Antitrust Division of the Justice Department has not always agreed with them. Four major waves of mergers have taken place in this country. The first started in 1887, just prior to the pas sage of the Sherman Antitrust Act, and ended in 1904. It involved such giants as United States Steel and Standard Oil trying to create monopolies in their industries. From the end of World War I until the 1930s, large firms swallowed smaller firms to create oligopolies. The monopoly has no chance and the oligopoly little chance of succeeding today under present antitrust policy.The third major merger movement began in the 1960s, reached a peak in 1969, (10) . Many of the acquisitions involved giant firms in one industry buying up large companies in totally unrelated industries. Such mergers are called conglomerate mergers. A classic example is Mobil Oil Corporations purchase of the huge retail chain Montgomery Ward & Company.Mergers in the last ten years were in the thousands. More important