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INACAP
English V
Teachers: Patricia Candia
Name: ______________________

An Overview of the Different Types of Companies|

What is a Company?

Companies have to obey all the rules of the Companies Act, which is a long and
complicated law. If more than 10 people want to start a business together, they will have
to go to a lawyer to form a partnership or a company.

The law sees a company as separate from its shareholders and directors. This means that
the assets and debts of the business belong to the company and the assets and debts of
the shareholders and directors have nothing to do with the Company.

In The UK In The USA Description

Sole Trader Sole It has only one owner who manages
Proprietorship the business himself.

.
Limited Liability Partnership A partnership has two or more
Partnership owners, partners, who contribute
something toward the business
(LLP)

Private Limited Limited Liability The members report any profits or

Company Company losses on their personal income tax
returns. They limit exposure of their
(Ltd)
personal assets from legal action or
debts of the company.
Public Limited Corporation It is an entity A public limited company
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Company differs from the private version in that

(Plc) it is able to sell its shares to the
public, and may be quoted on the
stock exchange or alternative
separate from the shareholders. The
shareholders are not responsible for
any debts or legal proceedings filed
against the corporation.

S Corporation The S corporation is different from the

corporation as the business does not
file a tax return. The shareholders
report profits and losses on their
personal tax returns.
Guarantee Nonprofit Nonprofit organizations include
Company Organization charities, religious or education
institutions, as well as some museums
(non profit)
and other artistic entities. Unlike other
types of businesses, the nonprofit
does not exist to earn a profit for its
directors or officers.
Cooperative The cooperative business is
structured so that its members are
also its owners and users. Members
vote for a board of directors. All
members have an equal vote
regardless of how many shares they
own.

Business Organization Structure Examples

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The following examples are basic structures. Ultimately, you will need to choose and tailor a
structure that best fits your business goals and needs - either adopting a basic model or
combining different models.

Functional Organization Structure

COMPANY
MANAGEMENT

FINACE PERSONNEL PRODUCTION SALES PURCHASING

DEPARTMENTNT DEPARTMENT DEPARTMENT DEPARTMENT DEPARTMENT
E
ACCOUNTING RECRUITMENT R& D MARKETING STORAGE

WAGES TRAINING LABORATORIES / SALES TEAMS

FACTORIES

WELFARE AFTER SALES

WAREHOUSE

CUSTOMER
MAINTENANCE SERVICE

Functional organizations are structured around job functions. This type of business
structure is suitable for small to medium-sized businesses that do not have a wide range of
products or production requirements.

The main functions of a company determine the basic departments of it:

1. The Production Department.

2. The Sales and Marketing Department.

3. The Finance Department.

4. The Purchasing Department.

5. The Personnel Department or Human Resources Department.

Some other sections are:

Recruitment Training - Wages Welfare - Accounts - Sales Team Maintenance

Advertising After Sales - Warehouse Maintenance.
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Another example of an Organization Chart

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COMPANY ORGANIZATION

In this section you will find some useful vocabulary and expressions used in Business in
terms of:
a. Hierarchy
b. Responsibilities / functions
c. Titles
d. Affiliates
e. Structure

a) Hierarchy:
The company is headed by the Managing Director.
The Sales Director reports to the Managing Director.
The Sales Director is under the Managing Director.
The Sales Director is accountable to the Managing Director.
The Sales Director is supported by a sales team.
The Sales Director is assisted by an Assistant Sales Manager.

b) Responsibilities / functions:
The Finance Department is responsible for accounting.
The R & D (Research and Development) Department takes care of new
product development.
The Administration Manager is in charge of personnel.

c) Titles: The main managerial titles for UK and USA are.

UK USA
Chairman President / Senior Vice-President
Managing Director Chief Executive Officer (CEO)/ Senior Vice President /
General Manager
Finance Director Finance Manager
Sales Director Sales Manager
Production Director Production Manager
Purchasing Director Purchasing Manager
Personnel Director Personnel Manager

Were there any new buzzwords created

while I was out to lunch?

Other positions in a company are:

Assistant to the Finance Manager (or any other manager) (Subgerente)

Assistant to the Principal. (Subdirector en escuelas)
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Chief of Accounts (or any other section)

Executive Officer
Representative - Sales Assistant Accountant - Personal Assistant / Secretary
Receptionist - Clerk Cashier - Technician - Designer - Computer Programmer

Note: The Directors and Chairman of a company usually sit at the Board of Directors
(UK) / Executive Board (USA).

d) Affiliates:

X is the parent company.

A, B and C are subsidiaries (more than 50 % owned by the parent).

X Tek USA

A 70% B 60% C 55%

Tek Chile Tek Argenina Tek Brasil

e) Structure:

Car Division

Sales Department
Production Department

Advertising
Methods Maintenance Section After-sales
Section consistsSection
The Car Division Section
of the Production Department and the Sales Department.
The Production Department comprises the Methods Section and the Maintenance
Section.
The Sales Department is made up of the Advertising Section and the After-sales
Section.
EXERCISES.

Complete the sentences with the appropriate concepts.

1. The Managing Director ___________________________ to the Board.

2. The Managing Director ___________________________ for running the company.
3. The Managing Director ___________________________ by four executive
departments.
4. ______________________ the Managing Director, there are five regional divisions.
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5. Each Regional Manager ___________________________ of a territory.

6. The five regions _____________________________ by two other sections
Marketing and Technical Services.
7. The section Leaders ____________________________ to the Regional Managers.
8. In addition to the ______________ company, Rossoman has three _____________
9. The subsidiaries _________________ Rossoman France, Rossoman Germany and
Rossoman Japan.
10. The subsidiaries ___________________ to the Export Sales Department.

Match the jobs in the box with the descriptions below.

managing director personal assistant sales representative training officer
purchasing manager laboratory technician quality control manager

1. I organize training courses for the members of staff language, computer, etc.
___________________________
2. I set up the equipment and do experiments and tests. _______________________
3. I am the senior executive. ___________________________
4. I check that products are made to the right standards. _______________________
5. IVittel
Pierrer visit customers and try and increase
is a s_______________ business.
of the Nestl _____________________________
Group. It has millions of
6. I work with the Managing Director. I am responsible for the diary, organize his travel,
c___________ all over the world.
and take calls for him. ____________________________
7. I buy everything the company needs, from raw material to stationery.
It is the__________________________
water d_______________ of the group and has many famous
b_______________ such as San Pellegrino, Contrex, Panna and Aquarel. There
are sixty-seven p____________ s______________ producing billions of liters of
bottled water. The main r_____________ c_____________ of the Nestl Group is
in Lausanne and there is a network of seventeen other center on four continents
employing 2,500 staff. This research helps produce safe and affordable water for
everybody.
Read the text below about the French company Perrier Vittel and fill in the gaps.Use the
words from the box.
A Product
recent p_______________
takeover is Nestl Pure
subsidiary Life. leader
market The company bottles
research this water
center turnover
Division
locally brandscountries
in developing customers market and
such as Pakistan shareBrazil.production sites acquisition

Nestls interest in water began in 1969 with the a_________________ of 30% of

A Company Description:
Vittel. After the t_______________ of Perrier in 1992 the new company Perrier-
Vittel became a major part of the Nestl Group. Today water sales represent 8.8%
PIERRIER VITTEL
of the groups t_______________. The group is the international m____________
l_______________ for bottled water with a 15% m____________ s___________.
A new CEO, Frits van Dijk took over in 2000 and he aims to keep Perrier-Vittel at
the front of the bottled water market in both sales and technology.
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Questions to Study: What (type of business) do you do?

What business are you in?
What company do you work for? We are in the computer business.
Which company are you with? We're in computers
Who do you represent? We sell . . .
I work for ABC Company. We produce . . .
I'm with ABC. We manufacture . . .
I represent (the) XYZ (company). Our major products are . . .
What is the name of your company? Describing Jobs
Where are you located? What do you do?
The name of our company is . . . . What do you do for a living?
Our company is located in . . . . What is your occupation?
Our headquarters is in . . . What type of work do you do?

Where do you work?

I'm a salesman. (job-general)
I'm in sales. (general)
I'm in the toy business. (industry)
I'm a contractor at JBX. (specific)
I'm a consultant for YXL.
What company do you work for?
I work for Bellwest. (company name)
I work at Wellbest. (general)
I'm with Westbell. (industry)

What do you do there?

What do you do at Bellwest?
I'm a software engineer. (job title)
I work in the sales department. (place in company)
I'm in customer service. (general area)
I work as an instructor.
I build houses. (specific job)
I clean the restrooms.

Describing Projects
What are your current projects? We are in the process of . . .
What are you working on (at present)? We are developing . . .
What are your major initiatives in this We are designing . . .
area? We are building . . .
We are marketing . . .
We are currently working on . . .
________________