REVISE: Use Croatian expressions to create word partnerships about taxation porezni razredporezni pragporezna olakšica utaja poreza oslobođenje od poreza povrat poreza dio prihoda koji je oslobođen od plaćanja poreza You can use the same word more than once: relief / break allowancetax exemption returnevasionclass / band / bracketthreshold porezni razred  tax + porezni prag  tax + porezna olakšica  tax +...

REVISE: Word partnerships about taxation porezni razredporezni pragporezna olakšica utaja poreza oslobođenje od poreza povrat poreza dio prihoda koji je oslobođen od plaćanja poreza relief / break allowance tax exemption returnevasionclass / band / bracketthreshold Porezni razredtax class / band / bracket Porezni pragtax threshold Porezna olakšicatax break / relief Utaja porezatax evasion Oslobođenje od porezatax exemption Dio prihoda oslobođen od porezatax allowance Povrat porezatax return

HW check NOTE-MAKING Notes comparing the different views on the role of government (Galbraith vs. the Friedmans) Speaking practice Talk from your notes! Hand in your notes! HANDOUT: Creating rapport → MK p 113

TAXATION, MK p 113 In favour Against Which of the statements you find the most convincing and why? Discuss in pairs – try using some strategies for creating rapport: - we (all), us, our, ours, ourselves - question tags: e.g. aren’t we; haven’t you... - negative questions: Isn’t it true that... Don’t we all...

Private sector

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,... GO ON TO ADD ANY WORDS YOU ASSOCIATE WITH EITHER SECTOR Public sectorPrivate sector Talk about them using the words listed!

Reader, p. 22, Task I

incorporate-d businesses vs. un-incorporate-d businesses What is the main difference between an unincorporated and an incorporated business?

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

BUSINESS ORGANISATIONS IN THE PRIVATE SECTOR… … WITH UNLIMITED LIABILITY sole proprietorship OR sole trader partnership (unincorporated) → RB, p 25 A contrastive view … WITH LIMITED LIABILITY private limited company (Ltd.) public limited company (PLC) (incorporated)

Revision: Private sector Vocabulary focus

Opposites Privately-held companies Limited liability Incorporated business Legal entity (legal person) Publicly-held companies Unlimited liability Unincorporated business Natural person (physical person)

HW check Handout – PRIVATE SECTOR (match) 1) overdraft2) liable3) general public 4) creditor / lender5) share 6) access to capital7) liquidate 8) bankrupt9) corporation 10) issue11) register 12) premises13) prospectus 14) incentive15) unlimited liability 16) disclosure of accounts17) dividends

HW check Fill in: 1)liquidate2) premises 3) unlimited liability4)incentive 5) corporation 6) dividends 7) liable 8) disclosure of accounts 9) issue10) general public 11) shares12) access

Match the two columns: Set up Be liable Make Claim Issue Elect Disclose Take over a profit the Board a loss a company shares a business accounts for debts profits

Key: Set up Be liable Make Claim Issue Elect Disclose Take over a business for debts a profit a loss the profits shares the Board accounts a company???

R, p 22, Vocabulary task II 1 overdraft 2 unlimited liability 3 incentive 4 disclosure of accounts 5 general public 6 share 7 access to capital 8 liquidate 9 liability

→ RB, p 22, task III - study

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

COMPANY LAW Companies Act (RB, p 22) Who o_ _ _ the business? Who r _ _ _ _ _ start-up capital? Who c_ _ _ _ _ _ _ the business? Who m _ _ _ _ _ _ it? Who c _ _ _ _ _ the profits? Are the owners personally l _ _ _ _ _ _ _ _ losses? Does the business need to p _ _ _ _ _ _ (d_ _ _ _ _ _ _ _, u_ _ _ _ _) its accounts?...

COMPANY LAW, Companies Act Who owns the business? Who raises start-up capital? Who controls the business? Who manages it? Who claims the profits? Are the owners personally liable for losses? Does the business need to publish (disclose, unveil) its accounts?... takeovers, liquidation, law suits? Advantages and disadvantages DESCRIBE the four types along these lines

Reader, p. 22 (task III) Describing UK businesses Get ready to describe one type... Use sentences! (SP, P, Ltd., PLC)...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. The advantages of SP / P / Ltd / PLC are numerous. For example, … There are also some disadvantages...

HOMEWORK: Study the chart and write about the advantages of: 1 Partnership and sole proprietorship 2 PLC over Ltd. 3 PLC and Ltd. over sole proprietorship and partnership 4 Ltd. over PLC Use sentences, not bullets! Remember to use the linking words for contrast / concession and addition (next slide).

Additional information: and, furthermore, moreover, in addition to, next, then, besides Reason: because, because of, due to, owing to, as, since, therefore, that’s why Contrast: on the other hand, on the contrary, in contrast, although, yet, but, while, whereas Concession: (even) though, anyway, however, nevertheless, in any case, in spite of that, despite Purpose: in order to, so that Result/Consequence: consequently, as a result, therefore, so, thus Giving example: for example, for instance LINKING WORDS:

HOMEWORK: HAND IN ON WEDNESDAY: 1) Describe and compare the 4 types of businesses in the private sector (all four tasks from the PPT – above) GET READY FOR WEDNESDAY: 2) RB, p. 23, task V (read carefully, fill in, look up new words) 3) p. 24: - read & look up new words - make a list of new words with explanations, examples - answer the questions

Progress test 1: Wed, 20 November, 2013, LH 10 Two groups: 3_ _