II. Answer the questions.
1. What sectors are found in the UK economy?
2. Who are private sector firms owned by?
3. What are the key features of unincorporated businesses?
4. What does unlimited liability mean?
5. What is the difference between limited and unlimited liability?
6. Who run the business in a limited company?
7. What does the name “public limited company” mean?
III. What meaning have the following words and word combinations?
Incorporated business, limited liability, private sector, entrepreneur, partnership, sole trader organization, legal existence, business debts, firm’s resources, retirement of an existing partner, separation of ownership and control, annual general meeting.
IV. Match each concept with its definition.
|
a) has no separate legal existence from its owners. b) the profit belongs to a single owner. c) means that owners of a company can only lose the amount they have invested. d) is owned by individuals, entrepreneurs. e) means that owners of a business have to use their personal wealth to meet debts, that cannot be paid from their firm’s resources. f) can invite the public to invest in their shares. g) seeks to make profit by producing and selling goods and services. |
V. Complete the table using the information from the text.
Explain the difference between limited and unlimited liability.
-
Limited liability
Unlimited liability
-
a) … a separate legal existence …
a) …
b) …
b) … for business debts
c
)
…c) … run the business themselves
VI. Put a word or phrase in the correct place to complete the following sentences.
-
a single owner, companies, run the business, business debts,
entrepreneurs, a limited company.
The owners of unincorporated business are responsible for …
The term “sole” refers to the fact that there is …
Private sector firms are owned by …
Ownership and control are separated in …
The owners of partnerships normally …
The shareholders of … elect directors, who appoint managers to run the company.