Lesson 1 - Company Departments
1. Types of companies
Match the following types of companies with their definitions:
A. Sole trader/ one-man business
C. The franchise
D. Joint stock companies
E. Private limited companies (LTD)
F. Public limited companies (PLC)
G. .Joint ventures
1) a type of partnership, in which the business is granted by the owner and is controlled by a contract which states how it is to be run;
2) a more complex business organization consisting of an association of people who contribute capital and agree to share the resulting profit or loss; the liability of the members is limited to the values of their shares.
3) the simplest form of business organization, the sole proprietor has control of his capital with almost complete freedom from external interference.
4) temporary partnerships commonly constituted for carrying out a particular trading objective; the partnership is to be dissolved when the objective is completed.
5) consists of a small number of persons who contribute the capital for the business, either in equal or in agreed proportions, and take an active part in the management of the business, but also share the resulting profit or loss.
6) consist of a very small number of members and they can offer their shares for sale to people who wish to buy on the Stock Exchange.
7) consist of at least two members (shareholders), and are not allowed to invite public to subscribe shares or debentures; the right to transfer shares is only with the consent of the directors.