CHALLENGE! Open to: ALL TEAMS Task: MIND MAP one of the following topics: - Types of economic systems - Economic sectors & employment - Public and private sector - Types of businesses in the private sector Get input on mind-mapping – on my web site! Deadline: 26 November

CHALLENGE – cont. Prizes: 1 Opportunity to meet a HR specialist (1) (Coca-cola,RTL) + exhibition (web & Otvoreni dani) 2 Huge chocolate bar + exhibition (1 ) 3 Chocolate bar + exhibition (a.m.a.n. ) Help: Contact my “demosica” Željka ASAP

Public vs. private sector Classify the following: the army, private ownership, profit, public utilities public goods, businesses, organisations, need municipal enterprises, government agencies, merit goods, entrepreneurs, public corporations,... Public sectorPrivate sector Talk about them using the words listed!

Reader, p. 22, Task I unincorporated vs. incorporated businesses GLOSSARY legal identity identity recognized by the law legal entity an organization considered as separate, independent unit for legal purposes limited liability [liability = uncountable noun, no plural] the legal position of being responsible for paying only a limited amount of the company’s debt if it goes out of business – you and your business are two separate entities unlimited liability the owner is responsible for any debts the business runs up (owner’s personal wealth may be claimed) – you and your business are legally one and the same entity Careful! Very similar! → UNINCORPORATED BUSINESS

Reader, p. 22, Task I unincorporated vs. incorporated businesses GLOSSARY legal identity identity recognized by the law legal entity an organization considered as separate, independent unit for legal purposes INCORPORATED BUSINESS → limited liability the legal position of being responsible for paying only a limited amount of the company’s debt if it goes out of business – you and your business are two separate entities UNINCORPORATED BUSINESS → unlimited liability the owner is responsible for any debts the business runs up (owner’s personal wealth may be claimed) – you and your business are legally one and the same entity Careful! Very similar!

R, p 22, Vocabulary task II overdraft unlimited liability incentive disclosure of accounts general public share access to capital liquidate liability

BUSINESS ORGANISATIONS IN THE PRIVATE SECTOR… … WITH UNLIMITED LIABILITY sole proprietorship OR sole trader partnership → R, III … WITH LIMITED LIABILITY private limited company (Ltd.) public limited company (PLC)

SOLE PROPRIETORSHIP, PARTNERSHIP OR BOTH? owned by one person only (may employ other workers) medicine, accountancy, law farmers, small scale manufacturers, retailers, hairdressers… owned by partners unlimited liability possibility of specialisation profits and losses shared equally direct control of business sole claim on profits

SOLE PROPRIETORSHIP, PARTNERSHIP OR BOTH? owned by one person only (may employ other workers) - SP medicine, accountancy, law - P farmers, small scale manufacturers, retailers, hairdressers…- SP owned by partners - P unlimited liability – SP, P possibility of specialisation, P profits and losses shared equally, P direct control of business, SP sole claim on profits SP

PRIVATE LIMITED COMPANY, PUBLIC LIMITED COMPANY OR BOTH? limited liablity for debts profits paid as dividend payments shareholders shares available to general public disclosure of accounts more difficult to sell shares possibility of takeovers finance easily available

PRIVATE LIMITED COMPANY (Ltd.), PUBLIC LIMITED COMPANY (PLC) OR BOTH? limited liablity for debts – Ltd., PLC profits paid as dividend payments - Ltd., PLC shareholders – Ltd., PLC shares available to general public - PLC disclosure of accounts - PLC more difficult to sell shares – Ltd. possibility of takeovers - PLC finance easily available – Ltd., PLC

Check this out! siness/aims/limitedcompaniesrev_print.shtml siness/aims/limitedcompaniesrev_print.shtml

Reader, p. 22 (task III) Describing UK businesses...is a type of business which... It is controlled by... and managed by... This business is financed by... Business decisions are made by has/have a claim on profits.... is (are) /is not(are not) personally liable for... because this business has limited/unlimited liability. Pick one and practice describing it! Next! R, p 25 – check it out! A contrastive view Eng. vs. Cro.

Reader, p. 23, task IV Public limited company ≠ Public corporation HOMEWORK: Reader, p. 23, task V (read carefully, fill in, look up new words) p. 24 (read, look up new words, make a list of new words with explanations, examples)