UNIT 1. COMPANIES
Company • Is a business organization. It is an association or collection of individual real persons and/or other companies, who each provide some form of capital. This group has a common purpose or focus and an aim of gaining profits. This collection, group or association of persons can be made to exist in law and then a company is itself considered a "legal person". The name company arose because, at least originally, it represented or was owned by more than one real or legal person.
Types Of Companies • There are different types of companies such as sole proprietorship, partnership, corporation, international corporations and so on.
Entrepreneurship (sole proprietorship) • Is one-person business, it offers opportunities to be boss, run the business, make the decisions and keep the profits. You can start or you can stop your business whenever you like. There is no need to consult partners or a Board of Directors. You do everything by yourself. You decide on your vacation hours, salary, hiring and firing. But Sole Proprietor has unlimited liability. It means that he is responsible for all his business debts.
Partnership • An association of two or more persons to carry on a business for a profit. Partnership offers opportunities often not available to the one-person business: more capital, more skills, more ideas. Having a partner you don’t need to do everything by yourself. And, at last, you can take a little vacation without having to shut down the business. Disadvantages are unlimited liability, more paper-work. Inter -personal relations with your partner or partners may require both time and tact.
Corporation • Is a group of persons authorized to act as an individual for business purposes. Owners of corporations are shareholders.
– To form a corporation one should apply for a corporate charter. Obtaining the charter the shareholders, as owners, hold a meeting to organize the corporation, elect the Board of Directors and choose the company’s officers/ Though the officers of the company supervise daily management, the shareholders always have the final authority. They vote at annual meetings. – The most important advantage of the corporate form of ownership is limited liability, which means that business is legally separated from its owners.
Governmental Corporations • Are nonprofit and they do not issue stocks. For example, educational, religious corporations.
Multinational Corporations • A multinational corporation (MNC) or multinational enterprise (MNE) is a corporation enterprise that manages production or delivers services in more than one country. It can also be referred to as an international corporation. • Some multinational corporations are very big, with revenues that exceed some countries' gross domestic products (GDPs). Multinational corporations can have a powerful influence in local economies, and even the world economy, and play an important role in international relations and globalization.
Public limited company(PLC) and Private limited company (LTD) – Private limited company has shareholders with limited liability and its shares may not be offered to the general public, unlike those of a public limited company (plc). – "Limited by shares" means that the company has shareholders, and that the liability of the shareholders to creditors of the company is limited to the capital originally invested, i. e. the nominal value of the shares and any premium paid in return for the issue of the shares by the company.
Dotcoms • A dot-com company, or simply a dotcom (alternatively rendered dot. com or dot com), is a company that does most of its business on the. Internet, usually through a website that uses the popular top-level domain, ". com" (in turn derived from the word "commercial").
Mergers and takeover – Merger is the creation of a new company by joining two separate companies. – takeover is the purchase of one company (the target) by another (the acquirer, or bidder)
Alliance • An alliance is an agreement or frien dship between two or more parties, made in order to advance common goals and to secure common interests.
Task № 1 • What type of companies do your prefer? Why?
Task № 2 • Vocabulary/ • Explain the meaning of the word in English
Task № 3 • Situation/ • You are …. . • List advantages and disadvantages of your activity
Task № 4 Group discussion