Ownership

A business is an organization of material, human, financial, and information resources that are joined together for a specific purpose. Not all businesses are owned and organized in the same way. Within each industry there can be a variety of types of business organization, each with their own legal structure. How a company is legally constituted will depend on its size and the laws of the country in which it is operating.

In unlimited liability companies the owners are personally and entirely liable for the debts of the company. This means they may lose their personal assets (e.g., their house or their car) if the company is in financial difficulties.

In a limited liability company (Ltd.) the owners are liable only for the amount of money they have invested in the business. This type of company is often quite small, and uncludes many family – run businesses.

Unlimited liability companies are subdivided into sole traders (BrE)/ sole proprietorship (AmE) (a type of business organization owned and run by one person) and partnerships (BrE)/ general partnerships (AmE) (a firm run by two or more partners who share the risks and profits). A lot of professional people like lawyers, accountants and so on, work in partnerships.

Limited liability companies are subdivided into private limited companies (Ltd) (BrE)/limited liability companies (AmE) and public limited companies (PLC) (BrE)/listed companies (AmE). A private limited company/limited liability company is a company which has shareholders (people who own the wealth of a company) but which cannot offer its shares to the public. A public-limited company/listed company is a company whose shares can be bought and sold (publicly traded) on the stock exchange. Its shareholdeers receive a share of the profits every year (paid as dividends). These are large companies, and are run by managers under the supervision of a Board.

A franchise is a type of company in which the business owner allows other people (franchisees) to set up in business using the company’s brandname, products and reputation. This type of company includes McDonald’s and the Body Shop.

Notes: A public limited company is privately owned. It is not run by the state.

Grammar Revision

Present Perfect Simple We use the Present Perfect Simple: for the action or situation which is finished We have painted the whole house. for recent actions or events in the past that have a result in the present You have broken the window! for actions or situations that began in the past and continue in the present Windsor Castle has been a royal residence since the 11th century. Time words or expressions which are often used with the Present Perfect Simple: for, since, just, already, yet, this morning (week), in the last few days, recently, lately/of late, never, ever, so far.

Ex.2. Choose the correct variant:

1. He published/has published a new book twice already.

2. I never was/have been to Italy, but I have gone/went to England last May.

3. I sent /have sent them an E-mail this week.

4. Did you register/Have you registered your ticket yet?

5. The plane from Paris has landed/landed an hour ago.

6. How many schools did you study/have you studied in?

7. The shop never made/has made any money.

8. Did it stop/Has it stopped snowing yet?

9. He was/has been in his office since early morning.

10. Mary called/has called her employer yesterday.

11. I answered/have answered three letters so far.

12. She was/has been away on business since last Monday.