REVISION

FOUR TYPES OF ORGANISATIONS IN THE PRIVATE SECTOR

1) WITH UNLIMITED LIABILITY• __________________• ______________

2) WITH LIMITED LIABILITY• ___________________• ___________________

Sole proprietorship

Partnership

Private limited company

Public limited company

REVISION LIMITED vs. UNLIMITED

LIABILITY FOR DEBT

In businesses with limited liability, owners are responsible* for their company’s debts up to a certain amount if it goes out of business, and do not have to sell their personal assets to repay the debts.

* ______

Source: Longman Business English Dictionary

liable

LIMITED COMPANIES

• a legal ______ (independent legal existence from its

shareholders)

• shareholders have limited liability (liable for the

amount of capital ________)

• in case of bankruptcy, assets are __________ and

the company is wound up.

entity

invested

liquidated

LIMITED COMPANIES• owners put ___ the capital (divided into shares) • shareholders can _______the AGM and take a

share of the profit through dividend• shareholders elect a _______________ and a

Chairperson• the BoD ________managers to run day-to-day

business• documents which need to be ________ : the

Memorandum of Association and Articles of Association

• Registrar of Companies issues a Certificate of Incorporation

up

vote at

Board of Directors

appoint

drawn up

SynonymsBritish EnglishBritish English

companies

shares/stock EQUITIES

shareholders

ordinary shares

preference shares

flotation

Annual General Meeting

Articles of Association

Memorandum of Assoc.

authorised share capital

property

American EnglishAmerican English

corporations

stocks

stockholders

common stock

preferred stock

initial public offering

Annual Stockholders M.

Bylaws

Certificate of Incorporation

authorized capital stock

real estate

STOCKS

• Securities*:- Stocks – equity financing- Bonds – debt financing- money market instruments:

• (derivatives, futures, options)

- * vrijednosnice, vrijednosni papiri HW MK, p 87: Reading Stocks and Shares 1J 2D 3A 4F 5G

6C 7K 8E 9I 10H11L 12 B

STOCKS & SHARES (1)

1. Most companies begin as ……………. limited companies.

2. If they want to grow / expand they must ………. capital.

3. One way to obtain capital for growth is to ……….. , i.e. apply to the stock exchange to become a public limited comp.

4. Smaller or newer companies usually sell their shares on the ………….……. markets.

private

raise

go public

over-the-counter

STOCKS & SHARES (2)5. Issuing shares for the first time is known as

………… a company (making a …….........) or _ _ _.

6. To guarantee to purchase all the securities at an agreed price on a certain day, if they cannot be sold to the public: ……………....

7. After stocks have been issued they can be traded on the .................... market at the stock exchange on which the company is ..................

8. The .............. value of a share – the price written on it – is rarely the same as its market price.

floating flotation

I P O

to underwrite

secondarylisted

nominal

The period in which most stocks fall in value is called a ............ market, and the period during with most stocks (& the stock .........) are rising is called a ......... market.

bearindex bull

Vocabulary: match phrases with the same meaning

Issuing stocks and offering them for sale

To underwrite a stock issue

Equity

Market makers

How many sellers and buyers there are

The price a stock is currently being traded at on the s.e.

A period during which stocks are rising

Bear market

A period during which stocks are falling

Supply and demand

Market price

Bull market

Traders in stock who quote bid & offer prices

To guarantee to buy the stocks if there are no other buyers

Stocks or shares

Going public

Vocabulary: match phrases with the same meaning

Issuing stocks and offering them for sale

To underwrite a stock issue

Equity

Market makers

How many sellers and buyers there are

The price a stock is currently being traded at on the s.e.

A period during which stocks are rising

Bear market

Going public

To guarantee to buy the stocks if there are no other buyers

Stocks or shares

Traders in stock who quote bid & offer prices

Supply and demand

Market price

Bull market

A period during which stocks are falling

MK, p 86 - DISCUSS:What are the advantages and disadvantages of:• Putting your money under the mattres• Buying a lottery ticket• Taking it all to LV or MC• Depositing the money in a bank• Buying gold• Buying a painting (Van Gogh...)

• Investing in property or real estate• Buying bonds• Buying stocks or shares• Investing in a hedge fund• Giving your money away?

Describing graphs, cont.• MK, p 89: Vocabulary• 1C 2E 3C 4A 5D 6E 7D 8A 9B

10C 11E 12B

Handout: Describe the graph in a paragraph (FB stock value in 2013):

1.Identify topic, time frame, explain labels...

2.Describe the overall trend

3.Discuss 3-4 interesting points

4.Give conclusionHW: Finish describing the graph + RB, p 38 II