Unit 1

Types of Companies

The sole trader

The sole trader, also known as a sole proprietor, plays a fundamental role in the world
of business ownership and entrepreneurship. This business structure embodies individualism,
with a single person assuming the leadership of a commercial enterprise. While a sole trader
may not necessarily work alone and may employ other individuals, they are the sole decision-
maker in the business. Decisions, strategies, and operations are executed at the sole discretion
of the owner. This autonomy allows for quick responses to changing market conditions.
One of the key characteristics of sole traders is that they receive all profits from the business,
but they also have unlimited responsibility for all losses and debts. In this structure, every
asset of the business is owned by the proprietor, and all debts of the business are the personal
responsibility of the proprietor. The business itself is not considered a separate legal entity.
Launching a sole trader business is relatively straightforward, with minimal legal
requirements. This means lower setup costs and less administrative burden compared to other
business structures. Sole traders also enjoy a degree of privacy concerning their financial
information, as there is no obligation to disclose financial details to the public.
However, sole traders often face challenges in accessing capital. Lenders and investors may
be hesitant to provide funding to a single entrepreneur, which can hinder growth and
expansion. Perhaps the most significant drawback of a sole trader business is the concept of
unlimited liability. This means that the owner’s personal assets, including homes and savings,
are at risk in the event of business debts or legal disputes, emphasizing the importance of
careful financial management.
Sole traders can be found in various industries, including freelance writing, local bakeries,
hairdressing salons, small shops, newsagents, plumbing services, boutiques, and independent
consulting.

The unlimited partnership

An unlimited partnership, also known as a general partnership, represents a

fundamental and traditional business structure where two or more individuals come together
with a shared purpose to engage in commerce. In such partnerships, both responsibilities and
rewards are shared among the partners. Each general partner has an equal right to participate
in the management and control of the business. Disagreements in the ordinary course of
partnership business are typically decided by a majority of the partners, while disagreements
on extraordinary matters and amendments to the partnership agreement require the consent of
all partners.
The most defining feature of an unlimited partnership is the concept of unlimited liability.
Each partner is personally responsible for the business’s debts, lawsuits, and obligations. This
means that personal assets, including homes and savings, can be used to settle business debts
in case of financial distress. Profit distribution among partners is usually outlined in the
partnership agreement, with profits often divided based on each partner’s contribution to the
business.
Unlimited partnerships benefit from the collective skills, knowledge, and experience of the
partners, leading to well-rounded decision-making and problem-solving. Setting up an
unlimited partnership is relatively straightforward, involving fewer formalities and legal
requirements compared to corporations. Partners are directly motivated by the business’s
profitability, as they share in the profits.
Unlimited partnerships can be found in various professional sectors, including law firms,
medical practices, accounting firms, consultancy services, real estate ventures, and more.

The Limited Partnership

A limited partnership is a unique business structure that combines capital infusion

from passive investors, known as limited partners, with the operational expertise and active
involvement of general partners. This partnership is similar to a general partnership but with
distinct roles and responsibilities. While a general partnership must have at least two general
partners, a limited partnership must have at least one general partner and one limited partner.
General partners in a limited partnership have management control, share the right to use
partnership property, share the profits, and have unlimited liability for the partnership’s debts.
Limited partners, on the other hand, are passive investors who provide capital but are not
actively engaged in the daily operations of the business. Their liability is restricted to the
amount of capital they have invested, protecting their personal assets from business-related
debts and liabilities.
Limited partnerships often involve complex legal agreements and formalities, which can be
time-consuming and costly to establish. Legal advice is typically required to draft these
agreements. Disagreements over profit distribution can arise, as limited partners expect a
return on their investment while general partners may seek a larger share due to their active
involvement.
Limited partnerships are commonly chosen by businesses seeking capital investment, as
limited partners contribute financial resources to fund the partnership’s operations and
expansion in exchange for a share of the profits.
Limited partnerships can be found in various sectors, including real estate development,
venture capital investment, private equity funds, and more.

The Private Limited Liability Company (Ltd.)

A Private Limited Company (Ltd) offers a versatile and robust framework for
businesses across different sizes and industries. This business structure has shareholders with
limited liability, and its shares cannot be offered to the general public, unlike those of a public
limited company.
Private Limited Companies are separate legal entities from their owners (shareholders) and
the individuals managing their operations (directors). This separation provides a shield that
protects shareholders’ personal assets in case of the company’s insolvency and bankruptcy.
Shareholders are the owners of the company, while directors are responsible for its day-to-day
operations. Shareholders may or may not be directors, depending on the company’s structure.
Ownership in a Private Limited Company is determined by the allocation of shares.
Shareholders invest capital by purchasing shares, and their ownership stake is proportionate to
the number of shares held. Limited Companies can raise capital more easily by issuing shares
to investors, making it an ideal choice for businesses with growth ambitions. These companies
enjoy perpetual succession, meaning their existence is not dependent on the life of their
shareholders or directors.
Private Limited Companies are subject to strict regulatory compliance requirements, including
financial reporting, annual filings, and tax obligations. Failure to meet these requirements can
result in penalties or legal repercussions.
Private Limited Companies can be found in various sectors, including technology startups,
retail businesses, manufacturing, professional services, restaurants, entertainment, and
franchises.
The Public Limited Company (PLC)

A Public Limited Company (PLC) is a limited liability company whose shares are
freely sold and traded to the public on a stock exchange, with a minimum share capital
requirement. PLCs have a separate legal identity and are characterized by their ability to raise
substantial capital from the public by selling shares of stock.
PLCs typically have a broad base of shareholders, ranging from hundreds to thousands or
more. Shareholders invest in the company by purchasing shares, representing ownership in
the organization. Directors, appointed to manage the company, oversee its day-to-day
operations. The shares of a PLC are often freely transferable, allowing shareholders to buy or
sell their holdings in the open market. Publicly traded companies often enjoy enhanced brand
visibility and credibility, which can attract customers, partners, and suppliers. However,
selling shares to the public can result in the dilution of ownership and the loss of control for
existing shareholders.
At the top of a PLC’s organizational structure is the Board of Directors, responsible for
making critical decisions, formulating long-term strategies, and safeguarding shareholder
interests. The executive management team, led by the Chief Executive Officer (CEO),
oversees daily operations, resource allocation, and implementation of strategic plans.
Departments and divisions represent the functional core of a PLC, responsible for executing
specific functions aligned with strategic goals. These units work collaboratively to drive the
company’s success.
Shareholders exercise their voting rights during annual general meetings (AGMs) to elect
directors, approve financial reports, and make significant decisions that shape the company’s
future.
Public Limited Companies are prevalent in various sectors, including technology, finance,
energy, healthcare, manufacturing, and more.

1. Answer the following questions:

1. What is the primary characteristic of a sole trader business structure?

2. What are some advantages of being a sole trader in terms of control and decision-making?
3. What is the main advantage of launching a sole trader business in terms of setup costs and
administrative burden?
4. What is the concept of unlimited liability in the context of a sole trader?
5. In which industries can sole traders be found?
6. What is the defining feature of an unlimited partnership?
7. How do partners in an unlimited partnership typically make decisions?
8. What is the primary disadvantage of an unlimited partnership?
9. What are some benefits of unlimited partnerships in terms of decision-making?
10. In which professional sectors can unlimited partnerships be found?
11. What makes a limited partnership distinct from a general partnership?
12. What role do general partners play in a limited partnership?
13. How do limited partners differ from general partners in terms of involvement in daily
operations?
14. How does the ownership structure work in a private limited liability company (Ltd)?
15. What is the significance of limited liability in a private limited company?
16. What are some sectors where private limited companies are commonly found?
17. What is the distinguishing feature of a public limited company (PLC)?
18. How do shareholders typically invest in a PLC?
19. How can selling shares to the public affect the ownership and control of existing
shareholders in a PLC?
20. At the highest level of a PLC’s organizational structure, what is the role of the Board of
Directors?
21. Who oversees the day-to-day operations of a PLC?
22. What is the function of departments and divisions within a PLC?
23. How do shareholders exercise their rights in a PLC?
24. In which sectors can public limited companies (PLCs) commonly be found?

2. After reading the previous text, find advantages and disadvantages for the following
types of companies:

Types of companies Advantages Disadvantages

Sole trader
 Unlimited partnership

Limited partnership

Private Limited
Liability Company
(Ltd).

Public Limited
Company (PLC)

3. Decide if the following statements about types of companies are true or false (Explain
your reasoning).

1. A sole proprietorship is a type of company owned and operated by one individual.

2. Sole traders have limited liability for business debts.
3. Sole traders can quickly respond to changing market conditions due to their autonomy.
4. Setting up a sole trader business typically involves high setup costs.
5. Sole traders are required to disclose their financial details to the public.
6. Accessing capital is typically easy for sole traders.
7. The concept of unlimited liability is a significant drawback of sole trader businesses.
8. Sole traders are commonly found in various industries, including freelance writing.
9. A partnership involves two or more individuals sharing ownership and responsibilities in a
company.
10. Unlimited partnerships are also known as general partnerships.
11. Unlimited partnerships do not involve shared responsibilities among partners.
12. In an unlimited partnership, disagreements on ordinary matters require consent from all
partners.
13. Unlimited partnerships offer limited liability to their partners.
14. Setting up an unlimited partnership involves complex legal agreements and formalities.
15. Unlimited partnerships are commonly found in law firms and medical practices.
16. Limited partners in a limited partnership are actively involved in daily operations.
17. Limited partnerships are commonly chosen by businesses seeking capital investment.
18. A Private Limited Company (Ltd) can offer its shares to the general public.
19. Shareholders in a Private Limited Company have unlimited liability for the company’s
debts.
20. Private Limited Companies do not have separate legal identities from their owners.
21. Directors in a Private Limited Company are responsible for its day-to-day operations.
22. Shareholders may or may not be directors in a Private Limited Company.
23. A publicly traded company’s shares are not available for purchase by the general public.
24. PLCs have a separate legal identity from their owners.
25. Directors oversee the day-to-day operations of a PLC.
26. The shares of a PLC are not transferable among shareholders.
27. Publicly traded companies often have enhanced brand visibility and credibility.
28. Selling shares to the public does not affect the ownership or control of existing
shareholders in a PLC.
29. PLCs can be found primarily in the technology sector.
30. Shareholders in a PLC do not have voting rights during annual general meetings.

4. Fill in the blanks with suitable words relating to sole proprietorship businesses and
partnerships:

1. The owner of the business owns the properties and assets and bears all the
_____________ of the business.
2. All decisions for running the business are taken by the ______________ .
3. The owner arranges capital for the business from ______________ resources or loans.
4. The liability of the owner in the business is ________________ .
5. The business does not require registration and almost no ____________ formalities.
6. The sole proprietor may not be able to raise adequate _____________ for the
expansion of business.
 7. The life of the business depends on the life of the ______________ .
8. Due to limited financial resources and limitation of the expertise of the owner, the
business may lack professional _______________ .
9. The business is suitable for simple business where ______________ skill is required.
10. Sole proprietorship caters best to the needs of customers where the market for the
product is _____________ and _______________ .
11. Partnership is basically a ______________ between persons.
12. The name under which the business of partnership is carried on is called
____________.
13. The agreement which lays down terms and conditions of partnership is termed as
_______________.
14. Partners agree to share _______________ of business.
15. It is ___________ (not necessary, necessary) to get the partnership firm registered.
16. The partnership firm is a ____________ (flexible, rigid) form of business
organisation.
17. In partnership, business risk is ____________ (shared, not shared) by all the partners.
18. In comparison to sole proprietorship, it may be possible for partnership firm to pool
______________ (more, less) resources.

5. Fill in the blanks with the following words:

audited – board – borne – branches – capital – centralized – chairman – director -

dividends – done – equity – exchange – extent – geared – General – highly – human
– labour – liability (2x) – losses – made – make – middle – officer – partnership –
public (2x) – profits – report – research – shareholders – sleeping – sole –
statements – subordinate - unlimited

Businesses are organized in different ways. When there is only one owner, the company is
called a _____________ trader. If two or more people associate to form a company, they
____________ up a ______________. In both sole trader organisations and partnerships, the
owners supply the _______________ and as a rule they assume the management of the
organisation. In partnerships only the active partners take part in the management of the
company, whereas the _____________ partners do not. Both forms of business organisations
discussed above have no legal obligation to make periodic _____________ of accounts
available to the public. The owners in both types of companies under consideration have
_______________ liability, that means they are liable to the full extent of their assets for the
debts of the company. It is the owners who are entitled to take possession of all the
______________ the company makes and all losses are _________ by them.
On the other hand, there are limited ____________ companies. Such types of companies are
either private or public. The former type involves that the ___________ has not access to the
company, the shares are sold to a restricted number of people. Shares are the parts into which
the assets of a company are divided. The owners of the company are ___________ and they
hold shares in proportion with the capital they invested in the company. Thus, there are
minority shareholders and majority shareholders. ___________ limited companies (plc) are
accessible to the public, as they are as a rule quoted on the stock ______________. The
management of limited liability companies is entrusted to a _____________ of directors,
elected by the shareholders in the Annual ____________ Meeting. The shareholders are
entitled to the profit ______________ by the company and therefore receive
______________. As for ____________, they are borne by the shareholders, but only to the
______________ of the amount invested in the business, as this is the meaning of limited
_______________. The shareholders have the right to receive the annual financial statements
of the company, accompanied by an independently-_____________ report.
The capital of a company consists of shareholder’s capital (_____________ capital) as well as
of capital obtained from long-term loans, from banks or other financial institutions.
Companies having a high proportion of loan capital are said to be _________ geared. On the
other hand, if loan capital represents a low proportion in the capital of the business, this is said
to be lowly _____________. Companies are organized in a hierarchical or pyramidal
structure. The ______________ holds the highest position in a board of directors. Sometimes
(s)he is the chief executive ____________. The managing ___________ is next in rank.
Senior managers head the different departments of a company such as: marketing, finance,
public relations, ___________ resources, _____________ and development etc. Works
managers and sales managers should be considered members of ______________
management. It consists of assistant managers who ___________ to the senior managers. If
someone reports to somebody else, (s)he is the ____________ of the latter. Large companies
have central offices or headquarters and ___________ in the country or abroad. If decisions
are taken at the headquarters, they are said to have a __________________ management. If
decisions are left to the competence of branch managers, they are said to have a decentralized
management.
In presenting a company as a rule reference is made to the location of the headquarters or
subsidiaries, the amount of business __________, or turnover, size of ____________ force,
type of products or services offered.

6. Match the types of companies with the correct description:

1. Sole Proprietorship
2. Partnership
3. Corporation
4. Limited Liability Company (LLC)
5. Non-Profit Organization
6. Cooperative
7. Franchise
8. Joint Venture
9. Public Company
10. Private Company

A. A company legally separate from its owners, often with shareholders. It has limited
liability, can issue stock, and is subject to complex regulations.
B. A business model where an individual or entity can buy the rights to operate a branch of an
established company.
C. This type of company is owned and operated by a single individual. The owner has
unlimited liability and makes all decisions.
D. Two or more parties collaborate on a specific project or venture, sharing risks and rewards.
E. In this company, two or more individuals or entities come together to run a business.
Partners share profits and responsibilities.
F. These companies exist for charitable, educational, or social purposes rather than profit.
They may be exempt from some taxes.
G. This is a flexible company structure that combines aspects of partnerships and
corporations. Owners have limited liability, and it's easier to set up than a corporation.
H. A corporation whose shares are publicly traded on stock exchanges and owned by various
shareholders.
I. A company where members, often customers or employees, jointly own and operate the
business for mutual benefit.
J. A company whose shares are not publicly traded, often owned by a small group of
individuals or entities.

7. Underline the correct word in italics:

1. My brother is a plumber. He’s autonomous/self-employed.

2. The people who own a private company might include the founder of the company,
some family members, and perhaps a few business associates/companions.
3. In a public company anybody can buy the actions/shares.
4. A public company is listed/posted on a stock exchange.
5. Our railways were recently privatized. I think the service was better before, when they
were a public company/state-owned enterprise.
6. The Purchasing Department is responsible for buying parts and raw materials/making
the final product.
7. If you have a complaint, please contact Consumer Services/Customer Services.
8. All recruitment and selection is done by our Human Relations/Human Resources
Department.
9. lnnoviation is the key to our success and we have recently expanded the Research and
Design/Research and Development Department.
10. In the Legal Department we have three lawyers/advocates trained in commercial law.
11. It’s the CEO’s job to control/run the company.
12. Our Business Development Officer is responsible for/the responsible for finding new
business opportunities.
13. I can’t take that decision. It will have to be referred to higher people/more senior
people.
14. That decision will have to be taken at a higher level/a more superior level.
15. In the department there are six Sales Representatives and their line director/line
manager.
16. The Sales Department has to liaise/liaison closely with Marketing.
17. She is part of/makes part of a team of designers.
18. I am the Financial Controller, and I relate directly/report directly to the Finance
Director.
 8. Three items in each group are closely connected. Cross out the one item that is
different.

1. manufacturer / producer / supplier / maker

2. plant / warehouse / factory / facility
3. equipment / machines / machinery / inventory
4. buying / purchasing / negotiating / procurement
5. waste / sub-assemblies / parts/ components
6. defects / rework / faults /mistakes
7. 200 pieces / 200 items / 200 units / 200 batches
8. produce / assemble / build / put together
9. supplies / products / goods / merchandise
10. subcontract / use an outside company / distribute / outsource
11. inspect / examine / check / control
12. find / replace / detect / discover

9. Match an item on the left with an item on the right:

1. store value for the customer

2. eliminate ‚right first time’
3. unload production all over the world
4. add products in a warehouse
5. outsource fit for purpose
6. coordinate goods from trucks
7. get things waste
8. be the global supply chain

10. Find one wrong word in each sentence. Write the correct word at the end.

1. Our business modal is to get a steady stream of revenue from clients every month.
_____________
2. We customerize our services to fit the client’s needs. ________________
3. Should we do all our recruitment in-the-house? It might be better to outsource
recruitment to a specialist company. _____________
 4. We offer a complete service for all your business needings. _______________
5. In our investments we focus mainly in companies with a high growth potential.
______________
6. We charge a month fee of €600 for our services. ____________
7. We work on a commission basic – 10% of the value of any transactions we handle.
______________
8. They gave us a good service - they were very customer-orientationed._____________

11. Fill in the missing letters. The words are all prepositions.

1. We work with the biggest names _______ the industry.

2. We offer a full range ________ services.
3. We offer a complete publishing service, _________ design and artwork _______
project management and print.
4. We’re a one-stop shop ________ all your travel needs.
5. We provide cost-effective solutions ________ the banking industry.
6. We are focused ______ giving value to our clients.
7. We are actively involved _______ every stage.
8. This will make a direct impact ________ your bottom line.
9. We take a long-term approach _______ value creation.
10. You have access _______ your account online.

12. Match the following brands with their corresponding area of bussiness:

Brands Areas of business

Nike automotive (cars and trucks)
Coca-Cola technology (internet services and search engine)
Apple food and beverages (including confectionery)
McDonald’s fashion (luxury clothing and accessories)
Amazon technology (electronics and appliances)
Google furniture and home goods
BMW technology (electronics and entertainment)
Samsung entertainment (movies, theme parks, and media)
Disney beverages (soft drinks)
Toyota coffeehouse and beverages
Starbucks e-commerce and cloud computing
IKEA automotive (luxury vehicles)
Sony fast food and restaurants
Chanel technology (electronics and software)
Nestlé sportswear and athletic equipment

13. Match the company names to the descriptions below. Then write the industry group.
Cisco – Citigroup – ExxonMobil – General Electric – Intel – Pfizer – Procter &
Gamble – Wal-Mart - PwC – UPS (United Parcels Service)

1. The world’s largest oil producer and distributor: _____________/____________

2. Provides auditing, tax and consulting services to other businesses:
________/________
3. An international company, its services include current accounts, insurance, stock
brokerage, investment banking and consumer finance: ___________/____________
4. Designs and manufactures microprocessors and specialized integrated circuits:
____________/_____________
5. The world’s number one maker of household and personal products; more than twenty
of its brands are billion-dollar sellers (including Ariel, Fairy, Gilette, Pampers and
Pantene): _____________/_________________
6. One of America’s largest and most diverse corporations, its products cover power
generation, jet engines, financial services, medical imaging etc. The name of its
industry group reflects the wide range of activities: __________/___________
7. A global health care company, famous for making Viagra; its competitors include
Glaxosmithkline and Novartis: ____________/____________
8. The largest private employer in the US; 9 out of every 100 dollars that Americans
spend on shopping is spent in their stores: ___________/___________
9. A worldwide delivery company; it also offers customs handling, international trade
management and supply chain design: ____________/_____________
10. Manufactures hardware such as switches and routers that allow the Internet to function
and computers to talk to each other: ___________/___________
 14. Fill in the missing words in the following text:

unlimited partnership - shares - supervisory board - general partners - sole

proprietorship - private assets - liability - legal form - losses – limited partnership -
profits - capital - credit - management - losses - plc - board of directors - limited
partners - partners - general partners

Bernd Schmidt founded a small electrical company in 2021 that he owned alone. This
company therefore had the legal form of a _____________________. As Bernd Schmidt
made considerable ________________, he had to sell private property in order not to go
bankrupt. The local bank had refused him a _______________ because he didn’t seemed
financially strong enough. Bernd Schmidt therefore transformed his sole proprietorship into a
______________ and took two equal partners into the company.
These brought in additional _______________ and agreed to provide unlimited liability, i.e.
with their __________________ - to be liable if further ______________ should arise.
However, this did not occur. Instead of red numbers there were ______________ in the
following years, which were evenly divided among the three ________________. The
company grew and grew, as did the capital requirements. To increase equity, the existing
general partnership was converted into a _________________. Bernd Schmidt and the two
main shareholders remained fully liable (___________________), the new shareholders were
____________________, i.e., their ______________ was limited to the cash deposits brought
in. This legal form was maintained until 2023.
Since Elektro-KG now has more than 3,000 employees, the three ___________________ had
to give up the ___________________ for reasons of age, so they looked for a new
____________________. The high financial requirements on the one hand and the company’s
good reputation on the other required to convert Elektro-KG into a _________________,
whose ______________ were traded on the stock exchange.This step was taken recently. The
______________ is responsible for the management of the company, who is is controlled by a
_____________________.

15. Match the economic activity with its economic sector:

mining - insurance - forestry - steel production - hospitality (e.g. hotels and

 restaurants) - logging - fishing - food processing - wine production - agriculture
- banking - transportation and logistics - oil extraction - computer programming -
shipbuilding - manufacturing (e.g. car production) - livestock farming - legal
services - construction - healthcare - advertising - coffee plantations - textile
manufacturing - paper and pulp production - retail sales – machinery hire –
catering – graphic design

primary sector secondary sector tertiary sector

16. Rearrange the letters of business types and related terms:

1. icncorptoora
2. setraoitprhnp
3. hopewirns
4. durytsin
5. crefhnisa
6. ngnarosatiio
7. evneutr
8. rntreupasehrni

17. Match the words and phrases to their definitions:

1. subsidiary a. an office where people answer questions and make sales over the
phone
 2. factory/plant b. a building from which goods or supplies are sent to factories,
shops
3. call centre c. a place through which products are sold
4. service centre d. a place where faulty products are mended
5. headquarters e. a company which is at least half-owned by another company
6. distribution centre f. the main office or building of a company
7. warehouse g. a building for storing goods in large quantities
8. outlet h. a large building or group of buildings where goods are made
(using machinery)

18. What do the following departments do?

1. R&D 7. Administration
2. Customer Services 8. Legal
3. Human Resources 9. Logisitics
4. Sales and Marketing 10. Public Relations
5. Production 11. IT
6. Finance

19. Match these activities to the correct department:

a) deal with complaints

b) draw up contracts
c) carry out research
d) train staff
e) run advertising campaigns
f) issue press releases
g) operate assembly lines
h) prepare budgets/accounts
i) keep records
j) transport goods
l) install and maintain systems equipment

20. Match the job titles with their correct description:

Chief Marketing Officer (CMO)
Sales Manager
Legal Counsel
Human Resources Manager (HR Manager)
Chief Executive Officer (CEO)
Product Manager
Chief Financial Officer (CFO)
Supply Chain Manager
Chief Technology Officer (CTO)
Customer Service Manager
Chief Operating Officer (COO)
Project Manager

a. Oversees the overall strategic direction of the company and makes high-level
decisions.
b. Responsible for the company's financial planning, budgeting, and reporting.
c. Manages the day-to-day operations, ensuring efficiency in business processes.
d. Develops marketing strategies, manages branding efforts, and oversees advertising
campaigns.
e. Recruits, trains, and manages employees; ensures company policies comply with labor
laws.
f. Oversees the company's technology strategy and ensures all IT systems function
properly.
g. Manages the sales team, sets sales goals, and monitors the company's performance in
the market.
h. Coordinates the development, launch, and management of products throughout their
lifecycle.
i. Ensures customer satisfaction, handles complaints, and maintains customer support
operations.
j. Advises the company on legal matters, ensuring compliance with laws and managing
legal risks.
 k. Oversees the entire supply chain, including procurement, inventory, and distribution
processes.
l. Leads and manages individual projects, ensuring they meet goals and deadlines.

21. Match the job titles with their correct description:

1. Chief Executive Officer (CEO)

2. Chief Financial Officer (CFO)
3. Chief Operating Officer (COO)
4. Chief Marketing Officer (CMO)
5. Chief Technology Officer (CTO)
6. Chief Human Resources Officer (CHRO)
7. Chief Legal Officer (CLO)
8. Chief Information Officer (CIO)
9. Chief Strategy Officer (CSO)

A. Oversees the company’s financial operations, including budgeting, financial reporting, and
risk management.
B. Responsible for setting the company’s strategic direction and long-term goals.
C. Manages the company’s day-to-day operations and ensures efficient business processes.
D. Leads marketing and branding efforts, customer acquisition, and market research.
E. Develops and implements technology strategies, IT infrastructure, and innovation
initiatives.
F. Manages human resources, talent acquisition, employee development, and workplace
culture.
G. Ensures legal compliance, handles corporate governance matters, and manages legal
affairs.
H. Oversees information technology, data management, and cyber-security efforts.
I. Serves as the highest-ranking executive, responsible for overall leadership and decision-
making.

1. Chief Compliance Officer (CCO)

2. Chief Ethics Officer (CEO)
 3. Chief Security Officer (CSO)
4. Chief Sustainability Officer (CSO)
5. Chief Communications Officer (CCO)
6. Chief Product Officer (CPO)
7. Chief Risk Officer (CRO)
8. Chief Customer Officer (CCO)
9. Chief Diversity and Inclusion Officer (CDIO)
10. Chief Supply Chain Officer (CSCO)
11. Chief Investment Officer (CIO)

A. Manages the company's supply chain, procurement, and logistics to optimize operations.
B. Leads sustainability efforts, environmental initiatives, and corporate social responsibility.
C. Identifies and mitigates potential risks to the company's operations and finances.
D. Ensures the company complies with industry regulations and legal requirements.
E. Focuses on enhancing the customer experience, loyalty, and relationships.
F. Handles internal and external communications, public relations, and brand reputation.
G. Drives diversity and inclusion initiatives within the organization.
H. Oversees the development and management of the company's product portfolio.
I. Manages cyber-security, physical security, and risk mitigation strategies.
J. Makes investment decisions on behalf of the company's assets and funds.
K. Promotes ethical behavior and corporate governance throughout the organization.

22. Choose the odd one out:

1. sole trader - unlimited partnership - limited partnership - VAT

2. sole trader - general partner - limited partner - shareholder
3. unlimited partnership - law firms - real estate ventures - sole trader
4. shareholders - limited liability - sole trader - annual filings
5. unlimited liability - limited partnership - business ownership - limited companies
6. directors - corporate governance - decision-making - independent consulting
7. Public Limited Company - annual general meetings (AGMs) - share capital - real
estate development
8. limited partnerships - unlimited partnership - shareholders - technology startups
9. Public Limited Company (PLC) - corporate governance - sole trader – transparency
 10. general partners - profit distribution - limited partner - private equity funds
11. sole trader - independent consulting - management control - unlimited partnership
12. general partners - unlimited liability - boutique - decision-making

23. Choose the right answer:

1. What type of company is owned and operated by a single individual?

a. corporation b. partnership c. sole proprietorship d. LLC
2. What is another name for a sole trader?
a. general partnership b. limited partner c. sole proprietor
d. public limited company
3. What is one of the key characteristics of a sole trader?
a. limited liability b. unlimited liability c. collective decision-
making d. public ownership
4. In a sole trader business, who receives all profits from the business?
a. shareholders b. general partners c. limited partners d. the
proprietor
5. What happens to the personal assets of a sole trader in case of business debts or legal
disputes?
a. they are protected b. they are at risk c. they are shared with
partners d. they become public property
6. What type of businesses are typically found as sole traders?
a. real estate development b. independent consulting c. medical practices
d. technology startups
7. What is the primary difference between a sole trader and a limited partnership regarding
liability?
a. Sole traders have limited liability, while limited partners have unlimited liability.
b. Limited partners have limited liability, while sole traders have unlimited liability.
c. Both sole traders and limited partners have limited liability.
d. Both sole traders and limited partners have unlimited liability.
8. Which type of company offers the same level of liability protection as a corporation?
a. cooperative b. nonprofit c. sole proprietorship d. LLC
9. Which of the following organisations is primarily focused on generating profits for
shareholders?
 a. nonprofit b. cooperative c. public company d. benefit corporation
10. In a partnership, ownership and responsibilities are shared by:
a. one individual b. the government c. two or more individuals or
entities d. employees
11. In an unlimited partnership, how are disagreements on extraordinary matters resolved?
a. by a majority of partners b. by the CEO c. by a public vote
d. by the government
12. What do limited partners primarily provide in a limited partnership?
a. management control b. capital infusion c. decision-making
power d. daily operations
13. What is the main motivation for limited partners in a limited partnership?
a. decision-making power b. a share of the profits c. management
control d. unlimited liability
14. What type of business allows individuals to buy the rights to operate under an
established brand and business model?
a. sole proprietorship b. franchise c. corporation d. co-
operative
15. A joint venture typically involves a:
a. short-term partnership b. single owner c. government entity
d. nonprofit organization
16. What type of businesses often enjoy enhanced brand visibility and credibility?
a. sole traders b. private limited companies c. limited partnerships
d. public limited companies
17. What is one key advantage of private limited companies in terms of shareholder
liability?
a. shareholders have unlimited liability b. shareholders have limited liability
c. shareholders are not responsible for the business’s debts d. shareholders are fully
responsible for the business’s debts
18. What type of businesses are common examples of private limited companies?
a. freelance writers and small shops b. technology startups and
manufacturing c. law firms and consultancy services d. publicly traded
corporations
19. What is the main concern for existing shareholders when a company sells shares to the
public?
 a. enhanced brand visibility b. the dilution of ownership c.
lower setup costs d. annual filings
20. Who is responsible for making critical decisions and formulating long-term strategies in
a public limited company?
a. shareholders b. general partners c. the CEO d. the Audit Committee
21. What is the primary role of the executive management team in a public limited
company?
a. electing directors b. making critical decisions c. safeguarding
shareholder interests d. approving financial reports
22. How do shareholders exercise their voting rights in a public limited company?
a. during annual general meetings (AGMs) b. through daily operations
c. by appointing directors d. by issuing shares
23. In which sectors can public limited companies be found?
a. Law firms, medical practices, and accounting firms
b. technology startups, retail businesses, and manufacturing
c. freelance writing, local bakeries, and hairdressing salons
d. real estate development, venture capital investment, and private equity funds
24. What is the role of the Board of Directors in a public limited company?
a. day-to-day operations b. safeguarding shareholder interests c.
managing financial reports d. annual filings
25. What is the primary purpose of annual general meetings (AGMs) in a public limited
company?
a. issuing shares b. electing directors c. making critical decisions
d. safeguarding shareholder interests
26. Which of the following types of companies can distribute profits to shareholders?
a. nonprofit organization b. sole proprietorship c. corporation
d. worker cooperative
27. A franchise allows individuals to:
a. operate a business using an established brand and business model b. start a
business from scratch with no assistance c. share ownership in a corporation
d. invest in government bonds
28. Which of the following statements is true about public companies?
a. They can choose to keep their financial information confidential.
b. They are always government-owned.
 c. Their shares are not available for purchase by the public.
d. They are required to disclose their financial information to the public.
29. Which of the following business structures is often associated with entrepreneurship
and innovation?
a. joint venture b. corporation c. cooperative d. start-up
company
30. A publicly traded company’s shares are:
a. Owned exclusively by the government
b. Not available for purchase by the public
c. Listed on stock exchanges and can be bought and sold by the public
d. Only available for purchase by employees

Vocabulary

amendment = amendament, corectare

annual general meeting = Adunarea generală anuală
assets = active (ale unei companii)
bankruptcy = faliment
Board of Directors = consiliu de administrație
business = afacere, întreprindere
Chief Executive Officer = director executiv
commitment = angajament, obligație
company = societate, firmă
debt = datorie, creanță, debit
drawback = dezavantaj, defect
entrepreneur = antreprenor, întreprinzător
entrepreneurship = antreprenoriat
equity = capital propriu (al unei societăți)
expansion = expansiune, extindere
general partner = asociat comanditat
labor = muncă
lawsuit = proces, caz judiciar
liability = răspundere, responsabilitate
limited partner = asociat comanditar
limited partnership = societate în comandită
losses = pierderi
ownership = proprietate, drept de proprietate
partnership = parteneriat, asociere, companie
patent = brevet
private limited liability company = societate cu răspundere limitată
public limited company = societate pe acțiuni
regulation = reglementare, regulă
return = profit
sales = vânzări
sole trader = întreprinzător individual, antreprenor individual
share = acțiune
shareholder = acționar
stock exchange = bursă de valori
supplier = furnizor
tax = impozit, taxă
unlimited partnership = societate în nume colectiv
wages = salariu, leafă, plată