1. Business English Upper Intermediate U2W09 John Silberstein johnsilb@aol.com

2. Agenda Administrative issue Company Types Prepositions Exercise

3. http://u2w09-2009-fall.wikispaces.com / The WIKI http://u2w09-2009-fall.wikispaces.com /

4. Company Types Corporations Partnerships Sole Proprietorships S-Corporation Trust Non-profit organization

5. Types of Companies: Corporations Corporations The most common form of business organization, and one which is chartered by a state and given many legal rights as an entity separate from its owners. This form of business is characterized by the limited liability of its owners, the issuance of shares of easily transferable stock, and existence as a going concern. The process of becoming a corporation, called incorporation, gives the company separate legal standing from its owners and protects those owners from being personally liable in the event that the company is sued (a condition known as limited liability). Incorporation also provides companies with a more flexible way to manage their ownership structure. In addition, there are different tax implications for corporations, although these can be both advantageous and disadvantageous. In these respects, corporations differ from sole proprietorships and limited partnerships.

6. Types of Companies: Corporations Partnership It is a type of unincorporated business organization in which multiple individuals, called general partners, manage the business and are equally liable for its debts; other individuals called limited partners may invest but not be directly involved in management and are liable only to the extent of their investments. Each partner shares equal responsibility for the company's profits and losses, and its debts and liabilities. The partnership itself does not pay income taxes, but each partner has to report their share of business profits or losses on their individual tax return.

7. Types of Companies: Corporations Sole Proprietorship A business structure in which an individual and his/her company are considered a single entity for tax and liability purposes. A sole proprietorship is a company which is not registered with the state as a limited liability company or corporation. The owner does not pay income tax separately for the company, but he/she reports business income or losses on his/her individual income tax return. The owner is inseparable from the sole proprietorship, so he/she is liable for any business debts.

8. Types of Companies: Corporations Corporations chartered entity limited liability issuance of shares of easily transferable stock a document, issued by a sovereign or state, outlining the conditions under which a corporation, colony, city, or other corporate body is organized, and defining its rights and privileges. Something that exists as a particular and discrete unit:Persons and corporations are equivalent entities under the law. The liability of a firm's owners for no more capital than they have invested in the business. Sale of stock which represents ownership of a corporation

9. Types of Companies: Corporations Corporations separate legal standing from its owners and protects those owners from being personally liable in the event that the company is sued. (a condition known as limited liability) a more flexible way to manage their ownership structure

10. Types of Companies: Corporations Corporations Ownership of a corporation is represented by shares of stock. Stock comes in two basic types, Common Stock and Preferred stock. Common Stock Securities representing equity ownership in a corporation, providing voting rights, and entitling the holder to a share of the company's success through dividends and/or capital appreciation. In the event of liquidation, common stockholders have rights to a company's assets only after bondholders, other debt holders, and preferred stockholders have been satisfied. Typically, common stockholders receive one vote per share to elect the company's board of directors. Preferred Stock Capital stock which provides a specific dividend that is paid before any dividends are paid to common stockholders, and which takes precedence over common stock in the event of a liquidation. Like common stock, preferred stocks represent partial ownership in a company, although preferred stock shareholders do not enjoy any of the voting rights of common stockholders. Also unlike common stock, a preferred stock pays a fixed dividend that does not fluctuate, although the company does not have to pay this dividend if it lacks the financial ability to do so. The main benefit to owning preferred stock is that the investor has a greater claim on the company's assets than common stockholders.