FOUR TYPES OF ORGANISATIONS IN THE PRIVATE SECTOR 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

Synonyms American English British English corporations companies stocks stockholders common stock preferred stock initial public offering Annual Stockholders M. Bylaws Certificate of Incorporation authorized capital stock real estate British English companies shares/stock EQUITIES shareholders ordinary shares preference shares flotation Annual General Meeting Articles of Association Memorandum of Assoc. authorised share capital property

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 10H 11L 12 B

STOCKS & SHARES (1) private 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. 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 secondary listed nominal

The period in which most stocks fall in value is called a 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. bear index 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): Identify topic, time frame, explain labels... Describe the overall trend Discuss 3-4 interesting points Give conclusion HW: Finish describing the graph + RB, p 38 II