The Sole Trader Unlimited liability = problem for sole trader, who is responsible for all the debts in his business. Partnerships = type of business between 2 and 20 persons as members - Partnership Act

  • banks only 10 partners
sleeping partner = person, who left business but he is still keeping his investment and sharing in any profits Deed of Partnership = legal document outlines the rights and duties of each partner. Limited partners – the liability ends with the amount of money put into the business

  • one of partners must be with unlimited liability

Limited liability companies = capital divided into shares, which will be sold to members (shareholders) fail of company – shareholders lose what they had paid in for shares and nothing more. a) Private = owned by a family, who elect a board of directors

  • shares can be sold privately with agreement of the other shareholders
b) Public = largest, household names, min 2 shareholders, who are allowed to sell their shares to the public Annual general meeting (AMG) = invitation to all shareholders to hear the policies of the company, called once a year Chairmans´s Report = the Balance Sheet + Profit and Loss Account (audit) The power of shar. is limited to the proportion of shares held.

MEETING

- 5 types:

1. Negotiating = 2-sided discussion, to resolve conflict

2. Informing = flow of information tents to one way

  • 3. Solving problems = the creativity of group, discussion flows around the table
  • 4. Making decisions = involve in a decision-making process, fairly well structured
  • 5. Collecting and exchanging ideas = to present, inform and receive reactions to ideas

- 5 mistakes:

  • 1. Inadequate structure = (nedostatečná struktura) failure to keep to its purpose
  • 2. Distribution and absorption of information (rozdělení a vstřebávání inf.) = quick reading and members assume that they understand all problems

3. Minutes

  • 4. Agenda setting (prostředí) = not planned – diverse, lose interest in the whole proceedings

5. Chairperson (předseda) = allows too much free discussion

BANKING

a) central bank – leads the interest rate structure, accepts deposits, make loans to the com. banks, manages the national debt, controls issuing bank notes …..

  • Bank of England, B. of Japan, Bundesbank ….
b) commercial banks – privately owned banks, také deposits and make loans, fin. services (= insurance, credit cards, foreign exchange …) A deposit = current account (demand deposits) and deposits account (time deposits) credit card = magnetized card issue by a bank against which purchases

  • may be used to withdraw cash from a cash dispenser
overdraft = the client is allowed to overdraw their current up to an agreed limit. loan = the lending sum of money, made by individuals, companies, banks … UK banks = BIG FIVE = Lloyds, the National Westminster, Barclays … US banks = different systém: commercial = state bank and national bank are chartered by the federal government CZ banks = KB, IPB, Československá obchodní banka

RAISING CAPITAL

a) start-up capital = on the beginning of business,

  • own savings, kept in deposit account, building society, an overdraft, a bank loan
bank loan: bank proven record of success, want to see a business plan (details about the aims) banks provide services: bank standing order, deposit account, bank statements, advice on business … b) circulating capital = purchases – raw materials – work in progress – finished goods – sales – cash collection – cash- profit- cash …. a znova