6

MODULUL 6:
JOINT STOCK COMPANIES
Timpul mediu necesar pentru studiu: 120 minute.

Obiective educaionale
-

n urma studierii acestui Modul, vei dobndi urmtoarele competene i aptitudini:

s utilizezi adecvat terminologia de specialitate din domeniul economic (joint stock,
private limited compnaies, public limited compnaies, joint ventures);
s explici i s interpretezi diveri termeni de specialitate n limba englez;
s evideniezi avantajele i dezavantajele acestor tipuri de companii;
s analizezi asemnrile i deosebirile ntre aceste companii i modelul romnesc.

Cuvinte cheie:
company, Joint Stock, PLC, LTD, Joint Venture.

Cuprinsul Modulului:
Modulul 6: JOINT STOCK COMPANIESEroare! Marcaj n document nedefinit.19
Obiective educaionale .............. Eroare! Marcaj n document nedefinit.19
Cuvinte cheie ............................. Eroare! Marcaj n document nedefinit.19
Cuprinsul Modulului................. Eroare! Marcaj n document nedefinit.20
6.1 .......................Joint Stock Companies ............................................... 121
6.1.1 .................... Private Limited Companies .................................. 123
6.1.2 .....................Public Limited Companies .................................... 124
6.1.3 .....................Joint Ventures..............................................
6.2 ............... Grammar Review: Present Perfect Simple...................... 125

Subiecte pentru autoevaluare: ................................................................ 126

ntrebri de autoevaluare.................................................................... 127
Teste gril pentru autoevaluare.......................................................... 128
Subiecte pentru evaluare i control ........................................................ 130
Teme pentru aprofundarea cunotinelor ......................................... 130
ntrebri de evaluare ........................................................................... 130
Analiz de text ...................................................................................... 131
Referat ................................................................................................... 134
Exerciii propuse spre rezolvare ......................................................... 134
Rezumatul acestui Modul ........................................................................ 138
Bibliografie obligatorie ............................................................................ 138
Bibliografie ............................................................................................... 139

UNITATEA DE NVARE NR. 6

Acest modul i propune spre studiu o form de organizare a afacerilor, i anume:

joint stock compnaies. Sunt enumerate tipurile de companii care se ncadreaz n
aceast categorie i se scot n eviden avantajele i dezavantajele existente ntre
aceste forme de organizare a afacerilor. Sunt reluate noiuni precum business organizations,
managers liability etc.

6.1 JOINT STOCK COMPANIES

A company is a more complex business organisation consisting of an association of people who
both contribute capital and agree to share the resulting profit or loss. In the UK, joint stock
companies can be set up by Royal Charter (The Bank of England), by a special Act of Parliament
(companies which are usually given the monopoly of public utility services such as railways,
canal, gas, water and electricity) and by registration. Registration is the most usual way and the
companies in which the liability of their members is limited to the value of their shares are of
two types: private limited companies and public limited companies.
Dac ai neles paragrafele parcurse pn aici, atunci te rog
s rspunzi la urmtoarea ntrebare:

Can you mention two types of joint stock companies?

...........................................................................................
...........................................................................................
...........................................................................................
...........................................................................................
...........................................................................................
...........................................................................................
Dac consideri c ai rspuns corect, verific-te mai jos. Dac
nu, atunci te rog s revenii asupra paragrafelor parcurse pn
acum, pentru a le aprofunda.

Rspunsul corect la ntrebarea anterioar este:

private limited
companies.

companies

and

public

limited

Dac ai rspuns corect, te felicit!

Dac nu, atunci trebuie s revii asupra paragrafelor parcurse
pn acum, pentru a le aprofunda.

6.1.1 PRIVATE LIMITED COMPANIES

Private Limited Companies have the letters LTD after their name and consist of a number of
shareholders. The shares are held among their members and these companies are not allowed to
invite public to subscribe shares or debentures. The right to transfer shares is only with the
consent of the directors and this restriction implies a high degree of risk.
Dac ai neles paragrafele parcurse pn aici, atunci te rog
s rezolvi urmtorul test gril:

The acronym for Private Limited Companies is:

a. PLD;
b. LPD;
c. LTD;
d. TDL.
Scrie aici rspunsul considerat corect de ctre tine:
...........................................................................................
i apoi, verific-te mai jos dac ai dat rspunsul corect.
Dac ai rspuns corect, te felicit!
Dac nu, atunci trebuie s revii asupra paragrafelor parcurse
pn acum, pentru a le aprofunda.

Rspunsul corect este:

c.

6.1.2 PUBLIC LIMITED COMPANIES

Private Limited Companies have the letters LTD after their name and consist of a number of
shareholders. The shares are held among their members and these companies are not allowed to
invite public to subscribe shares or debentures. The right to transfer shares is only with the
consent of the directors and this restriction implies a high degree of risk.
Dac ai neles paragrafele parcurse pn aici, atunci te rog
s rezolvi urmtorul test gril:

The acronym for Public Limited Companies is:

a. LTD;
b. PLC;
c. LPC;
d. CPL.
Scrie aici rspunsul considerat corect de ctre tine:
...........................................................................................
i apoi, verific-te mai jos dac ai dat rspunsul corect.
Dac ai rspuns corect, te felicit!
Dac nu, atunci trebuie s revii asupra paragrafelor parcurse
pn acum, pentru a le aprofunda.

Rspunsul corect este:

b.

6.1.3 JOINT VENTURES

A joint venture is when two or more businesses pool their resources and expertise to achieve a
particular goal. The risks and rewards of the enterprise are also shared.
The ventures as partners may be either legal or natural persons.
Reasons you might want to form a joint venture include business expansion, development of new
products or moving into new markets, particularly overseas. Your business may have strong
potential for growth and you may have innovative ideas and products. However, a joint venture
could give you: (1) more resources, (2) greater capacity, (3) increased technical expertise, (4)
access to established markets and distribution channels.
Dac ai neles paragrafele parcurse pn aici, atunci te rog
s completezi cuvintele lips n textul de mai jos:

Reasons you might want to form a joint venture

include business .............., development of new
.................. or moving into new............., particularly
overseas.
Scrie aici rspunsul considerat corect de ctre tine:
...........................................................................................
i apoi, verific-te mai jos dac ai dat rspunsul corect.

Rspunsul corect este:

expansion, products, markets

Dac ai rspuns corect, te felicit!

Dac nu, atunci trebuie s revii asupra paragrafelor parcurse
pn acum, pentru a le aprofunda.

6.2.GRAMMAR REVIEW: PRESENT PERFECT SIMPLE

Use

1) denotes an action or state begun in the past and no longer continuing in the
moment of speaking, yet implying the result of the respective action.
e.g. Have you read this book?
2) denotes actions or states begun in the indefinite past and still going on in the
present
e.g. The students have been here since 5 oclock.
3) denotes actions or states begun in the indefinite past and continuing to the moment
of speaking
e.g. No greater dramatist has come after Shakespeare in England.

Form
To have (have/has) + past participle of the verb to be conjugated (V3)
Positive statements Negative statements
I have asked
You have asked

I havent asked

Have I asked?

You havent asked

Have you asked?

He /She/It has asked He/She/It hasnt asked

We

We

You have asked You havent asked

They

Questions

They

Has he/she asked?

we
Have you asked?
they

Signal words
now, up to now, this moment, this time, so far, lately, just, already, since then, since
Monday, for etc.

Subiecte pentru autoevaluare:

ntrebri de autoevaluare
1. Which type of companies can be set up by a Special Act of Parliament?
Scrie rspunsul tu aici:
.............................................................................................................
.............................................................................................................
.............................................................................................................
.............................................................................................................
.............................................................................................................
.............................................................................................................
Rspunsul corect la ntrebarea de mai sus este:
Companies which are usually given the monopoly of public utility services such as railways,
canal, gas, water and electricity.

2. What is shared in a joint venture company?

Scrie rspunsul tu aici:
.............................................................................................................
.............................................................................................................
.............................................................................................................
.............................................................................................................
.............................................................................................................
.............................................................................................................
Rspunsul corect la ntrebarea de mai sus este:
The risks and rewards of the enterprise are shared in a joint venture.

Dac ai terminat de rspuns la ntrebrile de mai sus, verificai-v rspunsurile date

confruntndu-le cu materialul teoretic prezentat n acest Modul.
Nu ai rspuns corect la toate ntrebrile? Nu fii dezamgii,
cci v recomandm s reparcurgei materialul teoretic i cu
siguran vei putea rspunde acestor ntrebri. E simplu! Putei
de asemenea, s v notai eventualele nelmuriri, pentru a le
clarifica n cadrul Activitii tutoriale (AT).
Ai rspuns corect la toate ntrebrile? FELICITRI!!!
Continuai parcurgerea acestui Modul pentru a v pregti
corespunztor n vederea atingerii obiectivelor stabilite pentru
acest Modul.

Teste gril pentru autoevaluare:

1. What are you _____________________? = What are you trying to
say?
a) getting at
b) getting
c) making.
Rspunsul pe care l consideri corect este: ............................
2. Im sorry, Lynn, I didnt _____________________ ( =
understand/hear) that last figure.
a) engage
b) catch/get
c) grasp.
Rspunsul pe care l consideri corect este: ............................
3. Janine has _____________________ a lot to the development of
this company.
a) constrained
b) calculated
c) contributed.
Rspunsul pe care l consideri corect este: ............................
4. Were running a little short _____________________. ( = we dont have much time
left)
a) of time
b) in time
c) time.
Rspunsul pe care l consideri corect este: ............................

5. Bill told me that my issue was _____________________ of the meeting. ( = not part of
what the meeting was about).
a) outside the boundary
b) out the door
c) outside the scope.
Rspunsul pe care l consideri corect este: ............................
6. Lets _____________________ ( = talk) tomorrow.
a)
touch
bases
b)
touch
base
c) touch wood.
Rspunsul pe care l consideri corect este: ............................
7. Shes really good at _____________________ ( = generating) creative solutions.
a) coming up with
b) coming on to
c) getting on with.
Rspunsul pe care l consideri corect este: ............................
8. In business jargon, when something is on someones radar:
a) they are not aware of something
b) they are aware of something
c) they are a pilot.
Rspunsul pe care l consideri corect este: ............................
9. Lets leave that issue for _____________________ .
a) other meeting
b) another meeting
c) the future.
Rspunsul pe care l consideri corect este: ............................
10. Its critical not to _____________________ of the main point.
a) see
b) lose site
c) lose sight.
Rspunsul pe care l consideri corect este: ............................
Dac ai terminat de rspuns la testele gril de mai sus, verificai-v rspunsurile date
confruntndu-le cu cele din tabelul urmtor:
Nr. ntrebrii
1.
2.
3.
4.
5.

Rspunsul corect:
a
b
c
a
c

Nr. ntrebrii
6.
7.
8.
9.
10.

Rspunsul corect:
b
a
b
b
c

Subiecte pentru evaluare i control

Teme pentru aprofundarea cunotinelor

Viziteaz, n scopul familiarizrii cu ele, informaiile postate pe urmtoarele pagini web:
1. Joint Venturing (link:
http://entrepreneurs.about.com/od/beyondstartup/a/jointventures.htm
1. Types of Romanian Companies (link: http://www.romanianlawoffice.com/companiesromania.htm)
Termen: sfritul sptmnii 6.

ntrebri de evaluare
1. What is a company?
2. Which are the steps needed to set up a company?
3. Define private limited companies.
4. Define public limited companies.
5. What is the difference between PLCs and LTDs?
6. Define joint ventures.
7. How many types of joint ventures are there?

Analiz de text
Ai de realizat i de postat ca i document MS Office Word, pe pagina web a disciplinei, la
butonul creat n acest scop n seciunea specific aferent Sptmnii 6, soluia la tema
urmtoare:
Read the following text and then write an abstract about the differences between the
PlCs and LTDs.
A limited company is a business that is owned by its shareholders, run by directors and
most importantly whose liability is limited.
Limited liability meansthat the investors can only lose the money they have invested and
no more. This encourages people to finance the company, and/or set up such a business,
knowing that they can only lose what they put in, if the company fails.
For people or businesses who have a claim against the company, limited liability means
that they can only recover money from the existing assets of the business. They cannot
claim the personal assets of the shareholders to recover amounts owed by the company.
To set up as a limited company, a company has to register with Companies House and is
issued with a Certificate of Incorporation. It also needs to have a Memorandum of
Association which sets out what the company has been formed to do, and Articles of
Association which are internal rules over including what the directors can do and voting
rights of the shareholders.
Limited companies can either be private limited companies or public limited companies.
The difference between the two are:
Shares in a public limited company (plc) can be traded on the Stock Exchange and can
be bought by members of the general public. Shares in a private limited company are not
available to the general public; and
The issued share capital of a plc (the initial value of the shares put on sale) must be
greater than 50,000 in a plc.A private limited company may have a smaller share capital

A private limited company might want to become a plc because:

Shares in a private limited company cannot be offered for sale to the general public, so
restricting availability of finance, especially if the business wants to expand. Therefore, it
is attractive to change status
It is also easier to raise money through other sources of finance e.g. from banks
The disadvantages of a being a public limited company (plc) are:

Costly and complicated to set up as a plc need to employee specialist bankers and
lawyers to help organise the converting to the plc.

Certain financial information must be made available for everyone, competitors and
customers included (would you want them to know how much profit you are making?)

Shareholders in public companies expect a steady stream of income from dividends,

which might mean that the business has to concentrate on short term objectives of
creating a profit, whereas it might be better to work on longer term objectives, such as
growth and investment.

Threat of takeover, because another company can buy up a large number of shares
because they are traded publicly (can be sold to anyone). If they buy enough, they can
then persuade other shareholders to join with them to vote in a new management team.
Shareholders own the company. They buy shares because:
Shares normally pay dividends, which is a share of the profits at the end of the year.
Companies on the Stock Exchange usually pay dividends twice each year.

Over time the value of the share may increase and so can be sold for a profit this is
known as a capital gain. Of course, the price of shares can go down as well as up, so
investing in shares can be very risky.
If they have enough shares they can influence the management of the company. A good
example is a venture capitalist that will often buy up to 80% of the shares of a company
and insist on choosing some of the directors.
Flotation
A company may float on the stock market. This means selling all or part of the business
to outside investors. This generates additional funds for the business and can be a major

form of fund raising. When shares in a plc are first offered for sale to the general public
as the company is given a listing on the Stock Exchange.
Divorce of ownership and control
As a business becomes larger, the ownership and control of the business may become
separated. This is because the shareholders may have the money, but not the time or the
management skills to run the company. Therefore, the day-to-day running of the business
is entrusted to the directors, who are employed for their skills, by the shareholders.
The shareholders are therefore divorced from the running the business for 364 days of
the year. They will have their say at the Annual General Meeting (AGM) of the company,
where the directors present the accounts and results. Very recently a couple of businesses
have had very strong shareholder unrest leading the company to tone down a number of
their decisions.
In practice directors tend to have at least a modest shareholding in the company. This
provides the director with an incentive to achieve good dividends and capital growth for
the share (an increase in the share price).
Source: http://tutor2u.net/business/gcse/organisation_limited_companies.htm
Termen pentru postare: sfritul sptmnii 6.

Referat
Referat. Write an essay on the main steps to form a compnay in Romania.
Termen pentru postare: sfritul sptmnii 6.

Exerciii propuse spre rezolvare:

Rezolv exerciiile propuse mai jos. Rezolvarea lor o vei posta pe pagina web a disciplinei, la
butonul creat n acest scop n seciunea specific aferent Sptmnii 6.

1. Crossword Puzzle
Down: 1. A company consisting of two or more owners who manage it together and have
unlimited liability.
Across: 1. You make them when the company does well.
2. Checked by specialist accountants.
3. A company is highly - when it has a good deal of bank loans.
4. A business where decisions are taken at headquarters rather than at branch level.
5. Losses or expenses are by someone who has to pay.
6. Another name for the capital of share-holders.
7. The management committee of the limited liability company is the of Directors.
8. You make it when the company is not profitable.
9. Shares are traded on the stock
10. The highest position on the Board of Directors.
11. A limited liability company where anyone has the possibility to buy shares.
A
1
2
3
4
5
6
7
8
9
10
11

B
2. Complete with the and a:
(1) joint stock company is ..(2) special kind of partnership. Such
..(3) company has ..(4) common capital called ..(5) stock.

.(6) partners in (7) company are called shareholders, since they

receive shares for their contributions to (8) stock. Shares express ownership
interest and decision making power in (9) company, and shareholders are free
to transfer their shares to someone else without needing consent of (10) other
shareholders. While .(11) normal partnership also has ownership interest,
.(12) difference is that in .(13) partnership, interest can only be
transferred to someone else if all (14) partners agree to it.
3. Using the words in brackets, complete the text below with the Past Simple of
Present Perfect Simple:
1. A: Did you like the movie Star Wars?
B: I dont know. I (see, never) ............ that movie.
2. Arnold (arrive) ............ in London a week ago.
3. My best friend and I (know) ............. each other for over fifteen years. We still get
together once a week.
4. Stinson is a fantastic writer. He (write) ............... ten very creative short stories in the
last year. One day, hell be as famous as Hemingway.
5. I (have, not) ................ this much fun since I (be) ............... a kid.
6. Things (change) ................ a great deal at Thames, Inc. When we first (start) ...............
working here three years ago, the company (have, only) ................. six employees. Since
then, we (expand) ............. to include more than 2000 full-time workers.
7. I (tell) ............... him to stay on the path while he was hiking, but he (wander) ............
off into the forest and (be) ............... bitten by a snake.
8. Listen Sarah, I dont care if you (miss) ................ the bus this morning. You (be)
........... to work too many times. You are fired!
9. Tom is from Colorado, which is hundreds of miles from the coast, so he (see, never)
............. the ocean. He should come with us to Miami.
10. How sad! Andrew (dream) ................ of going to San Francisco before he died, but he
didnt make it. He (see, never) .............. the ocean.
11. In the last hundred years, traveling (become) ............. much easier and very
comfortable. In the 19th century, it (take) .or th........... two or three months to cross North
America by covered wagon. The trip (be) ............. very rough and often dangerous.

Things (change) ............ a great deal in the last hundred and fifty years. Now you can fly
from New York to Los Angeles in a matter of hours.
12. Alex, I cant believe how much you (change) .............. since the last time I
(see)............ you. You (grow) .............. at least a foot!
13. This tree (be) ................... planted by the settlers who (found) ............... our city over
four hundred years ago.
14. This mountain (be, never) .................. climbed by anyone. Several mountaineers (try)
................. to reach the top, but nobody (succeed, ever) .................. . The climb is
extremely difficult and many people (die) ................... trying to reach the summit.
15. I (visit, never)................. Africa, but I (travel) ..................... to South America several
times. The last time weeks in the Amazon, (hike) ............... for a week near Machu
Picchu, and (fly) ................ over the Nazca Lines.

4. Using the words in brackets, complete the text below with the Past Simple of
Present Perfect Simple:
Since computers were first introduced to the public in the early 1980s, technology
(change) ................. a great deal. The first computers (be) .............. simple machines
designed for basic tasks. They (have, not) ............... much memory and they (be, not)
............. very powerful. Early computers were often quite expensive and customers often
(pay) ................... thousands of dollars for machines which actually (do) ................. very
little. Most computers (be.................... separate, individual machines used mostly as
expensive

typewriters

or

for

playing

games.

Times (change) .................... . Computers (become) ..................... powerful machines

with very practical applications. Programmers (create) ................. a large selection of
useful programs which do everything from teaching foreign languages to bookkeeping.
We are still playing video games, but today's games (become).................... faster, more
exciting interactive adventures. Many computer users (get, also) ..................... on the
Internet and (begin) ......................... communicating with other computer users around
the world. We (start) ....................... to create international communities online. In short,
the simple, individual machines of the past (evolve) .................. into an international
World Wide Web of knowledge.

Termen pentru postare: sfritul sptmnii 6.

Rezumatul acestui Modul

A company is a complex business organisation consisting of an association of people who both
contribute capital and agree to share the resulting profit or loss.
Private Limited Companies have the letters LTD after their name and consist of a number of
shareholders.
Public Limited Companies have the letters PLC added to their name and consist of a very small
number of members and they can offer their shares for sale.
Joint Ventures are companies usually constituted with both foreign and domestic capital
contribution.

Bibliografie obligatorie
1. Mirabela Pop, Monica Sim, Business English for Business Students, Editura Universitii din
Oradea, Oradea, 2007, Capitolul 2.
2. Bill Mascull, Business Vocabulary in Use, Cambridge University Press, 2002, Capitolul 12.

Bibliografie disponibil on-line

1. Romanian Company Formation link:
http://www.romanianlawoffice.com/company_formation_romania.htm
2. Present Perfect Simple link: http://www.englishpage.com/verbpage/presentperfect.html

Bibliografie

1. Alexander Hollinger Test Your Business English Vocabulary, Editura Teora, Bucureti, 2000.
2. Bill Mascull, Business Vocabulary in Use, Cambridge University Press, 2002.
3. David Horner 1000 cuvinte cheie n afaceri, Editura Compania, Bucureti, 2002.
4. Ian MacKenzie Management and Marketing with Mini-Dictionary, Thomson & Heinle,
Boston, 1997.
5. Mark Powell - Business Matters, Thomson & Heinle, 1996.
6. Michael Brookes, David Horner Business English Engleza pentru afaceri, Editura Teora,
Bucureti, 2000.
7. Mirabela Pop, Monica Sim, Business English for Business Students, Editura Universitii din
Oradea, Oradea, 2007.