PRIVATE SECTOR TYPES OF BUSINESSES
to set up to establish to found to form to start a business a company Start-ups
COMPANY LAW (CompaniesAct) • Who ownsthe business? • Who raises start-up capital? • Who controls the business? • Who manages it? • Who claimstheprofits? • Are theownerspersonallyliable forlosses? • Doesthe business need to publish(disclose, unveil) itsaccounts? • ...
Privately-held companies Limited liability Incorporated business Legal entity (legal person) Words, words... Opposites?
Privately-held companies Limited liability Incorporated business Legal entity (legal person) Publicly-held companies Unlimited liability Unincorporated business Natural person (physical person) Opposites (key)
Set up Be liable Make 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 Match the two columns:
Set up Be liable Make Make Claim Issue Elect Disclose Take over a business for debts a profit a loss the profits Shares the Board Accounts A company Key:
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.)
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? Answer the questions (R:p.20)
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-heldcompanies • Privately-held companies are owned by the company's founders, management or a group of private investors. • 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. • Attention! The meaning of “public”: private sector vs. public sector
US Sole proprietorship General partnership Limitedpartnership C corporation S corporation Limitedliabilitycompany (LLC) ...? Australia? Canada? Croatia? (compare) Ideas for a presentation?
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.23 • 3 abbreviations for a corporation? • Adjectives describing a partner in a partnership (tot. 7)? • Abbreviation for “brothers”? • What does LLC stand for? • What is the US equivalent for AGM? • Find a plural form for “Mr”. • What is the closest UK equivalent for the Croatian komanditor?
Assignment (Part 2) Whensettingup a business, what are theadvantagesof: • Partnershipsover sole traders • Sole tradersoverpartnerships • Plcand Ltd over sole tradersandpartnerships • Ltd overplc • Plcover ltd