Company structures and legal forms - Business & Legal English-Karteikarten

Limited Liability Company (Ltd)

A business organization in which the business (not the owner) is liable for the company's debts

e.g. They set up a l________________ l______________ c____________ so their personal savings would be protected if the business failed.

sole proprietorship (Am) / sole trader (GB)

a business owned and managed by a single individual

e.g. As a s_______________ p____________/t____________, he runs his own online shop and keeps all the profits.

Private Limited Company (Ltd)

A company which has shares that cannot be sold to the public, and owners' responsibility for debts is limited.

e.g. She set up a p_______ l_______ c__________ with two partners to run a design studio, so their personal savings were protected if the business lost money.

legal person

an entity that the law treats as if it were a person, meaning it can own property, sign contracts, and be sued.

e.g. As a l________ p_________, the company can sign contracts and be taken to court.

certificate of incorporation

license to form a corporation issued by state government

partnership

a business organization owned by two or more persons who agree on a specific division of responsibilities and profits

e.g. They formed a p_______________ so they could share the costs and responsibilities of running the restaurant.

assets

resources owned by a business

e.g. The company sold some of its a____________, including buildings and vehicles, to reduce its debts.

shareholders (GB) / stockholders (Am)

people who own stock / shares in a corporation

e.g. S_______________ attended the annual meeting to vote on important company decisions.

creditors

people or companies that the business owes money to

e.g. The business negotiated with its c___________ to extend the payment deadlines.

debtors

people or companie that owe money to the business

e.g. The company contacted its d____________ to remind them to pay their outstanding invoices.

board of directors

a group of persons who manages the affairs of a company and makes company policy

e.g. The b_______ of d_________ met to approve the company's long-term investment strategy.

regulators

organisations that control and monitor businesses

e.g. Financial r______________investigated the company after reports of unfair business practices.

memorandum of association

this states the name of the company, the address of the head office through which it can be contacted, the maximum share capital for which the company seeks authorization and the declared aims of the business

merger

when two companies combine to form a single company

e.g. After the m___________, the two banks shared resources and reduced duplicate offices.

public limited company (plc)

a limited company with the legal right to sell shares to the general public - share prices are quoted on the national stock exchange

e.g. After becoming a ___________________, the company offered its shares on the stock market to attract more investors.

aquisition

when one company buys another company

e.g. The tech giant completed the a_____________ of a small start-up to expand its product line

subsidiary

a company that is controlled by another, larger company, e.g. Intagram operates under the parent company Meta.

e.g. The multinational owns several s_________________ in Europe and Asia.

bankrupt

not having enough money to pay debts

e.g. After several years of losses, the company went b____________ and had to close all its offices.

liability

legal responsibility for something, especially debts

e.g. As the owner of a small business, she has full l________________ if the company cannot pay its debts.

stakeholders

people or groups who have an interest in a company and can be affected by its actions, e.g. employees, shareholders, community members.

e.g. When the company planned to close the factory, it spoke to __________________ such as employees, local residents, suppliers, and investors to discuss the impact.

liquidation

the process of closing a company and selling its assets

e.g. When the business could no longer pay its debts, it went into _________________ and sold all its equipment.

corporate tax

tax paid by companies on their profits

e.g. The business calculated its _____________________________ after reporting a strong profit this year.

income tax

tax paid on personal earnings

e.g. He has to pay _______________ on the money he earns from his full-time job.

dividends

money paid to shareholders from company profits

e.g. At the end of the financial year, the company paid d__________________ to shareholders as a reward for their investment.

liabilities

money that a company owes

e.g. After reviewing its l_______________, the company realised it had too many unpaid loans and bills.

capital

Money used to start or run a business.

e.g. They raised c____________ from investors to open three new stores in different cities.

corporation

a large company that is legally separate from its owners

e.g. The multinational c_________________________ employs thousands of people and operates in over 20 countries.

company secretary

a senior administrative officer responsible for ensuring a company follows legal and regulatory requirements, especially in areas like documentation, reporting, and board procedures.

e.g. The ____________________________ ensured that all legal documents were filed on time and advised the board on corporate governance rules before the meeting.

shares

small parts of a company that people can buy / units of ownership in a company

e.g. She bought s_______________ in a renewable energy company because she believes the industry will grow in the future.

compliance

following laws, rules, and regulations in business

e.g. The finance department ensures c_______________ with tax laws and corporate regulations.