Vocabulary tasks

A Advise a kind of business organization for:

1 a photograher who wants to have his photoshop

2 a family who dreams to join in restaurant business

3 three solicitors each specializing in different areas of business law

4 two businessmen who have a project to launch the production of souvenirs

5 two truckdrivers and a barge captain who have an idea to enter shipping

business

6 some businessmen and their investors with the idea to manufacture furniture

7 a number of architects and two owners of small construction firms who have

an idea to expand the construction business in the perspective developing area

В Find the word and the word combinations in the text. Make up simple sentences with these words.

1 share/shares

2 shareholder

3 share capital

4 nominal value of shares

5 cost of shares

6 transfer the shares

7 subscribe for the shares

8 offer one's shares

С Finish the sentences.

1 The liability of the company's members is limited_______

2 When the company goes into liquidation because of its debts each

member_________

3 The company which has no more than fifty members who have right to

transfer their shares is called_______

4 A public limited company can_______

D Say the following in another way.

1 - the company, whose regulation is governed by one of various Companies

Acts.

2 - a separate "legal persona".

3 - the most common type of organization.

4 - the company that must not invite the public to subscribe for its shares and

debentures.

5 - the company that has no limit to the total number of members except that

there must be at least seven.

E Match the words with the proper definitions.

1 affiliate 2 trading company 3 joint-stock company 4 subsidiary 5 associated company 6 holding company

a) a company of which at least 20% but not more than 50% of the equity is held by another company or group of companies. b) a limited company that uses its capital to buy securities as investments to make a profit from dividends. c) a company formed for special purpose of holding the whole, or more than a half, the share capital of one or more other companies. d) a company which is partly or wholly owned by another company. e) a limited company which is actively trading, i.e. buying and selling products and services for profit. f) a corporation, which has its capital devided into many small units of stock.

7 investment trust

g) a company the half of which capital is owned by another company called either a holding company, or a parent company.

F Match the following sentences (1—11) with the words or phrases (a - k) below. Write your answers in the grid below.

1 The holder of these has lent the company money but has no voting rights.

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

3 The investors give these people the power to run the company.

4 This company holds more than 50% of the voting shares in another company.

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

6 Investments in many companies can be made by buying shares on this market.

7 The public at large can be shareholders in this company.

8 The golf club was set up with no intention of making a profit.

9 Fifty- one per cent of the voting shares of this company are held by another company.

10 This is the meeting which is held once a year for the shareholders.

11 This exists when several companies are in a relationship of owning and being owned.

a	subsibiary	b	group
c	non-profit-making	d	stock exchange
e	partnership	f	directors
g	private limited	h	debentures
i	public limited company	j	holding company
k	annual general

G Competitive Tendering and Joint Bids.

Read the following definitions and match them to words in bold in the advertisement below.

1. A group of companies who work together only for a particular contract. consortium .

2. A company owned and run by two or more people who do not receive interest on capital invested in the company.

__________________.

2. A company which is 100% owned by a parent company.

__________________.

2. A project with two or more partners.

__________________.

2. Someone brought in to work on part of a large project.

__________________.

2. A formal proposal to do something at a certain price in a certain time period.

__________________.

Puertos Secos S.A. CALL FOR BIDS Puertos Secos S.A. (the sponsor) invite offers for the operation of a dry port facility at Barajas, Madrid. Tenders will be accepted from any partnership, private company, or consortium, including companies operating with wholly-owned subsidiaries, or partially-owned subsidiaries, or other joint-venture agreements. The use of sub-contractors is acceptable. However the contract will be awarded to a single individual or company who shall be responsible for the management of the project. Details from: Ministerio de Asuntos Interiores, Departamento de Transportes, c/Bernardino Obregon, 44-48, 28012 MADRID. Tel: (9)1 530 09 06

H Company Strength and Market Position

Complete the words below to match the given meanings.

To grow, to get bigger.	e x p a n d
To stop activities that do not make much money and to reduce the number of staff.	r _ t _ _ _ _ l _ _ _
The action of winning ownership and control of another company.	_ _ q _ _ _ _ _ _ _ n
To join two companies to create one bigger company.	_ m _ _ g _ _ _ t _
A company that is owned by a parent company.	s _ _ s _ _ _ _ _ _
One company taking control of another, smaller one.	t _ _ _ - o _ _ _
Where one company is the only supplier to a particular market.	m _ _ _ p _ _ _
Where a parent company sells a subsidiary (the opposite of number 3 above).	d _ v _ _ t _ _ _ _ _
A large group, owning and controlling many companies.	h _ _ _ _ _ g c _ _ __ _ y
An illegal agreement between two or more companies to fix high prices.	c _ _ t _ _
Fixing low prices until a competitor goes out of business.	p _ _ _ _ w_ _
Two companies joining together to create one company.	m _ _ _ _ _
A de-merger, two companies separate.	b _ _ _ _ - u _

Notice the difference in meaning between the verbs take over and overtake.

Take over: obtain or assume control of something, or gain control of something from somebody else.

Overtake: to catch up with and pass a person, a vehicle travelling in the same direction or a competitor.

A takeover (notice spelling of noun) is generally a hostile merger where the company taking control of another does so against its wishes. A merger is usually a common decision, welcomed by both parties.