GB: Types of business
1) sole_= individual proprietor (__ liability for debts)
2) partnership (_liability for debts)
3) company:
a) limited company (or_) =_ person
limited by shares X limited by_
private limited company (abbreviation:_)
X_limited company (abbreviation:_)
b) _company
Setting up a company:
a memorandum of_is filed with the_of
Companies + other documents -> a certificate of_is issued and the company is
ready to do business (public limited companies need also a trading_)
Vocabulary:
a share can be defined as_
shareholders can get dividends = proportion from_which the company makes
ultra vires activity means an activity_the capacity of a company
Raising capital
By selling shares
By selling_(bonds)
U 11 - Running a business
According to the text, are the statements bellow true or faise? Correct the false statements.
1. Companies limited by guarantee need to register their articles of association.   T F
2. According to the text, articles of association detail for example rules about whether the majority is required to pass resolutions.      T F
3. Every private company must have only one director.     T F
4. A director of a company must not hold any shares of the company.     T F
5. A director may hold shares of another firm with which the company is doing business. T F
6. A limited company must put an independent auditor's report as well as a profit and loss account before a general meeting of the company's members annually.     T F
7. The crime of insider trading was not recognized in English law until 1985.     T F
■a Individual proprietorship	. •   One owner owns a business • May employ some individuals or may be the only worker • Commonly used in retail establishments, service business, agriculture "~ • No incorporation necessary • Business comes to an end on death • The proprietor controls all the decisions and receives all the profit • Unlimited personal liability for the debts of the business • Capital provided by owner • Earnings are not subject to the corporate income tax, they are taxed as personal income
Partnership	• Capital provided by partners • Common for law firms, medical associates, and also retail and service businesses • No incorporation necessary • Unlimited personal liability of each person • Uncertain duration of business (it is dissolved by the death of a partner) *
Limited companies	• Incorporation necessary • A corporate structure is required: shareholders (owners of the business), djj^gjojrs (responsible for the management of the business), officers (agents of the business) • A separate le^al^entity capable of holding property, contracting, suing, and being sued • May be established with a perpetual life • Double taxation: paying corporate income taxes and personal income taxes • Shares cannot be listed on the Stock Exchange • Needs only one Director
Public limited companies	• Incorporation necessary • A corporate structure is required: shareholders (owners of the business), directors (responsible for the management of the business), officers (agents of the business) • A separate legal entity capable of holding property, contracting, suing, and being sued • May be established with a perpetual life • Double taxation: paying corporate income taxes and personal income taxes • Shares are listed on the Stock Exchange • Needs at least two Directors