Company Presentation

a. limited (liability) company- a company where the shareholders will lose only what they have invested if the company goes bankrupt, and will not lose other property that they own; Ltd

b. holding company- a company that completely or partly owns other companies and may also carry out normal business activities itself

ex: IRI, the Italian state holding company which controls Alitalia

c. public limited company- a limited company whose shares are freely sold and traded

d. private limited company- a company whose shares are not openly traded and can only pass to another person with the agreement of other shareholders

e. parent company- a company that owns other companies

ex: Costs are two thirds lower at Japan Air Charter, a subsidiary that employs foreigners, than at the parent company.

f. daughter company/ subsidiary- a company that is completely or partly owned by another company

g. sister company-one of two or more companies that are owned by the same parent company

h. group- a large business organization that consists of several companies that all have the same owner

ex: the Coca-Cola Group, the Rover Group

h. sole trader- a legal form of company in some countries for someone who has their own business, with no other shareholders

ex: The bank has over one million business accounts, from sole traders to the largest corporations

i. joint venture- a business activity in which two or more companies have invested together

ex: Saudi Arabian and Japanese officials agreed on a joint venture to build oil refineries in both countries.

Match the following sentences with the words or phrases in the box

a. this company holds more than 50% of the voting shares in another company

b. members of the public can only invest in this company if they are invited to do so

c. investments in many companies can be made by buying shares on this market

d. the public at large can be shareholders in this company

e. fifty-one per cent of the voting shares of this company are held by another company

f. this exists when several companies are in a relationship of owning and being owned

g. a group of five accountants have decided to form an association to carry on business in common and make a profit

subsidiary, partnership, private limited company, public limited company, group, stock exchange, holding company

Tick the correct characteristics for each business type

Public limited company Private limited company Sole trader Partnership

Single individual owns the company

Two or more owners/ directors

Quoted on stock exchange

Unlimited liability

Limited liability

Owner is self-employed

Company presentation

We can describe the organization in terms of:

1. Hierarchy

Examples:

1. The company is headed by the MD

2. The sales director reports to the MD.

3. The sales director is under the MD.

4. The sales director is accountable to the MD.

5. The sales director is supported by a sales team.

6. The sales director is assisted by a sales assistant.

2. Responsibilities/ functions

Verbs frequently used to describe company organization include:

to be in charge of

to be responsible for

to support or to be supported by

to assist or to be assisted by

to be accountable to