2. 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

3. 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

4. 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

5. 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

6. 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

7. 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 H 11L 12 B

8. 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

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

10. 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

11. 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

12. 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

13. 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?

14. 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