1. PRIVATE SECTOR 2

2. Write true sentences In the private sector profit goes to …. The aim of public sector organisations is to … The aim of private sector organisations is to … The chairperson in public corporations and PLCs is chosen by …

3. Finish the sentence If a company goes b____ the owners... 1. ______ (partnerships, sole traders), because _______. 2. ___________ (PLCs, Ltds), because _______.

4. Match up the pairs and explain your decision: Unlimited liability Limited liability Incorporated business Unincorporated business

5. Resource Bank, p. 23/V Find the expression in the text that means: Give money Start a business Personal wealth The company doesn’t have enough to pay back its debts Ask friends for money The opposite of profit The opposite of paid Contribute capital Go into business Form a company/ partnership/etc. Personal fortune The assets do not cover the debts Raise capital from friends Loss unpaid

6. Answer the questions: 1. Why should unlimited liability make doctors and lawyers act responsibly? 2. How do private limited companies become public limited companies in Britain? 3. How is this done in America? 4. What happens if a limited company goes bankrupt?

7. How does an Ltd. become a PLC? IPO = Initial Public Offering, flotation a company issues common stock or shares to the public for the first time.

8. Liquidate (v) Liquid (n):  General English: a fluid that has no independent shape (~ will take any shape you want it to)  Econ.: liquid assets: cash, or assets that can be easily turned into cash (~ cash can buy anything) To liquidate a company:  to close a co. and sell its assets (for cash)

9. Founding a company: Verbs Found = to establish, to set up Founded, founded, founding Find = to discover sg Found, found, finding Fund = give money for a particular purpose Funded, funded, funding

10. Fill in the gaps with the correct form of found, find or fund A group of investors _____ the equipment for the new lab at our school. Three businessmen together ____ a new company that produces a new type of biofuel. _____ an investor is not an easy task, but the effort will really pay off when you ___ the investor who is willing to invest in your business.

11. Fill in the gaps with the correct form of found, find or fund A group of investors funded the equipment for the new lab at our school. Three businessmen together founded a new company that produces a new type of biofuel. Finding an investor is not an easy task, but the effort will really pay off when you find the investor who is willing to invest in your business.

12. READING (RESOURCE BANK, P. 24) COMPLETE THE TABLE Title: Names of 2 doc.s Drawn up by ContainsIntended for Sent to Result

13. Title: FORMING A LIMITED COMPANY Names of 2 doc.s Drawn up by ContainsPurposeSent to Result Memorandum of Association lawyer special- ising in co. law -name of co. -type of business -total share capital -kind of shares -guarantees limited liability Co.’s dealings with the outside world. Registrar of Companies Certificate of incorporation Articles of Association -powers and duties of directors -issue & transf. of shares -calling of GMs -salary, appointment of managing director Set of rules how the co. will be run. Internal use.