PRIVATE SECTOR TYPES OF BUSINESSES

Start-ups  to set up  to establish  to found  to form  to start a business a company

COMPANY LAW (Companies Act)  Who owns the business?  Who raises start-up capital?  Who controls the business?  Who manages it?  Who claims the profits?  Are the owners personally liable for losses?  Does the business need to publish (disclose, unveil) its accounts? ...

Words, words... Opposites?  Privately-held companies  Limited liability  Incorporated business  Legal entity (legal person)

Opposites (key)  Privately-held companies  Limited liability  Incorporated business  Legal entity (legal person)  Publicly-held companies  Unlimited liability  Unincorporated business  Natural person (physical person)

Match the two columns:  Set up  Be liable  Make  Claim  Issue  Elect  Disclose  Take over  a profit  the Board  a loss  a company  Shares  a business  the company’s accounts  for the company’s debts  profits

Key:  Set up  Be liable  Make  Claim  Issue  Elect  Disclose  Take over  a business  for debts  a profit  a loss  the profits  Shares  the Board  Accounts  A company

Example of UK 1.Sole proprietorship s. trader, s. owner, s. proprietor 2.Partnership:general partnership, limited partnership 3.Private-limited company (Ltd.) 4.Public-limited company (Plc.)

Answer the questions (R:p.20) 1.Sole proprietorship 2.Partnership 3.Private-limited company 4.Public-limited company  Who owns the business?  Who raises start-up capital?  Who controls the business?  Who manages it?  Who claims the profits?  Are the owners personally liable for losses?  Does the business need to disclose its accounts?

Answer the questions (R:p.20) 1.Sole proprietorship 2.Partnership 3.Private-limited company 4.Public-limited company  Ownership?  Start-up capital?  Control?  Management?  Claim on profits?  Liability?  Disclosure?

Describing UK businesses (R: p.20) ...is a type of business which...  It is controlled by... and managed by...  This business is financed by...  Business decisions are made by... ... has/have a claim on profits. ... is (are) /is not(are not) personally liable for... because this business has limited/unlimited liability.

Privately-held vs. publicly-held companies  Privately-held companies are owned by the company's founders, management or a group of private investors. Privately-held companies  A public company is a company that has sold a portion of itself to the public via an initial public offering of some of its stock. The company’s shares are listed on the stock exchange.public companyinitial public offering  Attention! The meaning of “public”: private sectorvs.public sector

Ideas for a presentation? US  Sole proprietorship  General partnership  Limited partnership  C corporation  S corporation  Limited liability company (LLC) ...?  Australia?  Canada?  Croatia? (compare)

Words, words, words,...  fraudulent...  dishonest....  form a company (synonym?)  specialise... company law (preposition?)  trading (meaning?)  to call a...  to appoint...  to issue...  “off-the-shelf” company (meaning)?  “osnivači” in English? R: p.21,22

Assignment (Part 1) Contrastive chart, R: p abbreviations for a corporation? 2.Adjectives describing a partner in a partnership (tot. 7)? 3.Abbreviation for “brothers”? 4.What does LLC stand for? 5.What is the US equivalent for AGM? 6.Find a plural form for “Mr”. 7.What is the closest UK equivalent for the Croatian komanditor?

Assignment (Part 2) When setting up a business, what are the advantages of: 1.Partnerships over sole traders 2.Sole traders over partnerships 3.Plc and Ltd over sole traders and partnerships 4.Ltd over plc 5.Plc over ltd