Self-study 0 task 10. Read the text and give definitions to the underlined key words and phrases Company types

SELF-STUDY 10
TASK 10.1 Read the text and give definitions to the underlined key words and phrases
Company types
In law, there are various types of business entity. For each one there are different legal arrangements to register the company, different requirements for presenting accounts, etc. The main business types are:
Sole trader (UK) / Sole proprietorship (US)- A single person owns and operates a business. Legally, the business has no separate existence from its owner (proprietor). This means that all the debts of the business are the debts of the owner.
Partnership (UK and US)- Two or more people work together and share the risks and profits. Just like a sole proprietor, the partners are fully liable for (= responsible for) any debts the business has. This is referred to in law as 'unlimited liability'.
Company (US and UK) / Corporation (US)- The business is a legal entity that is separate from its owners - the shareholders. The owners are not fully liable for the debts of the business. Instead, their liability (= potential risk) is restricted to their share capital. This is the amount of cash that they have contributed to the company. This is referred to in law as 'limited liability'.
There are two main types of companies:
Private company: the shares (AmE stocks) are private in the sense that they cannot be bought by members of the public. The vast majority of companies fall into this category. They're often smaller companies, with shares held by a few business associates or family members. Public company: the shares are openly traded on a public stock exchange. These are the large, often well-known businesses. The word 'public' should not be confused with 'state-owned'. A 'state-owned enterprise' (SOE) is owned by the government.
Definitions
1. The term “business entity” means a corporation, association, partnership, limited liability company, limited liability partnership, or other legal entity.
2. Arrangement - the action, process, or result of arranging or being arranged.
"the arrangement of the furniture in the room"
3. requirement - a thing that is needed or wanted.
4. The sole proprietor has unconditional and full control over its business. Example: Beauty parlour, barbershop, general store and sweet shop run by a single owner.
5. A partnership is a form of business where two or more people share ownership, as well as the responsibility for managing the company and the income or losses the business generates.

6. Unlimited liability means that any owners/shareholders share responsibility for debts in the case that a business fails, or to settle any legal proceedings (for example, a lawsuit due to employee injury on the job).

7. A shareholder is a person, company, or institution that owns at least one share of a company's stock or in a mutual fund. Shareholders essentially own the company, which comes with certain rights and responsibilities.
8.Share Capital stock is the number of common and preferred shares that a company is authorized to issue, and is recorded in shareholders' equity.
9. Cash is money in the form of notes and coins, rather than cheques or credit cards
10.  Vast majority is The greatest part of something, to the point where alternatives are nearly irrelevant in size
11.Associate a partner or companion in business or at work
12. A stock exchange brings companies and investors together. A stock exchange helps companies raise capital or money by issuing equity shares to be sold to investors. The companies invest those funds back into their business, and investors, ideally, earn a profit from their investment in those companies.