Definitions
Part of profits that a company gives to its shareholders. (S)
Share
Can a Private limited company (Ltd) "go public" and become a Public limited company (Plc)?
Yes, it can. When it grows and expands its business, it can float its shares on the Stock Market and become a Plc.
What kind of business are Subway, McDonald's, KFC and Benetton?
They are all franchises. A franchise is an agreement in which one business (the franchisee) buys the rights to sell the goods or services of another business /the franchisor), using the franchisor's name.
If a company increases production, the cost of its products increases as well.
Nope! It decreases.
Società a responsabilità limitata
Limited company
Someone who establishes an organisation. (F)
Which is safer: limited or unlimited liability? Why?
Limited liability is safer, because owners can only lose the money they invested, not their personal possessions.
What is crowdfounding?
It's an alternative way of raising finance which involves asking a large number of people for small sums of money rather than asking one or a few sources large sums of money. This can be done on websites platforms and social media.
A sole trader has limited liability for their business, so if the business is in difficulty, the sole trader cannot lose their possessions to repay the debt.
To take legal actions
Intraprendere azioni legali
A (P.)... is an agreement between two to twenty people to take joint responsability for the running of a company.
Partnership= società di persone
Which is the only Stock Exchange based in Italy and where is it?
It's the Italian Bourse and it's based in Milan. (Piazza Affari)
What is a start-up?
A new business that is small and young, usually created to develop an innovative product or service and grow quickly. They are created by an individual or a small group of people who have an idea for a product or service that might solve a problem or fill a business gap in the market. E.g. Uber, Facebook, Twitter, Airbnb and even Google are examples of successful start-ups!
All limited companies are required to produce an annual report and accounts to keep the shareholders informed of the company's performance.
This is true!
Economy of scale
Economia di scala: reduction of production costs resulting from making and selling goods in large quantities.
A (S.T.)... is a business owned and controlled by one person.
Sole trader: impreditore o ditta individuale.
Why could a joint venture between a multinational company and a local company be an advantage?
Because the multinational company brings money and know-how, while the local company knows the market and the culture.
Talking about how business grow, what is an horizontal integration? Provide at least one example.
Two businesses in the SAME INDUSTRY at the same stage of production become ine business. They make the same product or provide the same service, for examples, two coffeehouses chains merge.
A company is called multinational when it sells its goods and services abroad.
It does not SIMPLY sell its goods and services abroad. It is a business that owns the production of goods or services in more than a country. It has a central office which coordinates the management of all its other offices or factories in other countries.
To publish accounts
Pubblicare i bilanci (o i conti annuali): When a company makes its financial results available to the public, usually every year.
If the owners of a company have unlimited (L)....., they risk losing all their money and possessions.
Liability= responsabilità
Talking about how business grow, what is the difference between horizontal and vertical integration?
Horizontal integration= two businesses in the same industry at the same stage of production become one business.
Vertical integration= two businesses that operate at a different stage of production join together. For example, a bag manufacturer buys a factory producing leather.
Talking about how business grow, what is a conglomerate integration?
Two businesses that operate in different markets and have no connection with each other join together. For example, a cinema chain buying a clothes retailer.
A partnership is an organisation that is owned, controlled and operated by its members. They have an equal say in the running of the business and receive a share of the profits.
This is a COOPERATIVE.
To float the shares on the Stock Market
Quotare/lanciare/vendere/collocare le azioni in borsa (=mercato azionario)