PRIVATE SECTOR 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 …

Finish the sentence

If a company goes b____ the owners ...

1. ______ (partnerships, sole traders), because _______.

2. ___________ (PLCs, Ltds), because _______.

Match up the pairs and explain your decision: Unlimited liability Limited liability

Incorporated business Unincorporated

business

Resource Bank, p. 23/VFind 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

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?

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.

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)

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

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.

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.

READING (RESOURCE BANK, P. 24)COMPLETE THE TABLETitle:Names of 2 doc.s

Drawn up by

Contains Intended for

Sent to

Result

Title: FORMING A LIMITED COMPANYNames

of 2 doc.s

Drawn up by

Contains Purpose Sent to

Result

Mem

oran

du

m o

f A

ssociatio

n

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. R

eg

istrar o

f Co

mp

an

ies

Ce

rtificate

of in

corp

ora

tion

Articles

of

Asso

ciation

-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.