English Unlimited HAK/HUM 3, Schulbuch mit Audio-CD und CD-ROM (mit Handelskorrespondenz)

38 Success 03 LANGUAGE SKILLS EXPLORE LOOK AGAIN EXTRAS Info point: Types of business organisations Read the extract from an article about business organisations. Which companies do you know that are organised in these different ways? Use a dictionary or research new words on the internet to help you. a 47 ‰e term ‘business’ refers to all activities that provide goods and services. ‘A business’ or ‘a business organisation’ is some kind of company, rm, corporation or enterprise. You can classify them according to the type of ownership. Public sector companies (nationalised industries) are owned by the state on behalf of the general public. Typical public sector companies are utilities like water, transport and electricity. In recent decades there has been a trend towards privatisation, turning many of these into private sector companies . Among the private sector companies you can distinguish between a one-man enterprise or (1) sole trader , a (2) partnership , which can be owned by 2 to 20 people, a (3) private limited company (ltd), which can be a family-run rm and a (4) public limited company (plc). ‰e particular type of business organisation determines the legal and nancial obligations of its owners. Co-operatives are jointly owned by consumers who buy from them ( consumer co-operatives ) or by the workforce who work for them ( worker co-operatives ). ‰ey do not aim to make a prot. Franchising is a type of business in which certain rights are purchased from the franchiser by the franchisee. Usually these are exclusive rights for selling goods or services under a specied trade name and within a specied geographical area. Both sides benet from franchising. Charitable organisations , also called non-prot (BE) or not-for-prot (AE) organisations, give their revenues to good causes. These descriptions give you more information on some of the business organisations. Match a–d with 1–4. b Find at least one example of an obligation, an advantage and a disadvantage for each type of organisation. Talk together. Did you choose the same points? c a If a company is a , several people contribute capital, expertise or both. the owners have limited or unlimited liability (depending on the contract). all profits, expenses and the management of the business are shared. conflicts between owners can be a problem. it has greater continuity than a one-man enterprise. the company ceases to exist at the death of one of the owners. c If a company is a , it has a separate legal entity. it has limited liability. more people contribute capital. it has greater continuity than smaller businesses. there is no sale of shares to the public. its accounts must be available for inspection. profits and losses are shared. shares can only be transferred if the other shareholders agree. it is managed by a board of directors and a chairperson . b If a company is a , a relatively small amount of start-up capital is needed. the owner has complete control over the company and keeps all the profits. the owner has unlimited liability. the owner is accountable to the tax authorities. the company has no separate legal entity. there is close contact with employees and customers. illness or time off can lead to problems. shortage of capital can be a problem. it has a relatively small turnover. the company ceases to exist at the death of the owner. d If a company is a , it is the largest type of business in the private sector, often a multinational (company) . its shares are traded on the stock exchange . another company can buy shares in it and make a takeover bid. it is managed by a board of directors and a chairperson. its liability is limited to the money invested. there must be an annual general meeting (AGM) and annual report. it can raise large sums of capital. it enjoys maximum continuity. its size may cause communication problems. its shareholders receive dividends out of its profits. Nur zu Prüfzweck n – Eigentum des Verlags öbv