TYPES OF COMPANIES
15
Unit 2: Types of companies
UNIT OBJECTIVES - MỤC TIÊU
DURATION (9 periods) - THỜI LƯỢNG HỌC (9 TIẾT)
• Provide students with the language and knowledge related to main types of companies and
company finance.
Cung cấp cho sinh viên vốn ngôn ngữ và kiến thức liên quan đến các loại hình công ty cơ bản
và tài chính công ty.
• Provide students with the language of comparison and contrast and the way of writing a
comparison and contrast essay.
Cung cấp cho sinh viên ngôn ngữ về so sánh và đối lập và phương thức viết một bài luận so
sánh và đối chiếu.
• At the end of this unit, students will be able to talk and write about main types of companies,
how they are established, what are their similarities and differences, and the advantages and
disadvantages of each type.
Sau khi kết thúc bài học này, sinh viên có thể nói và viết về các loại hình công ty cơ bản, chúng
được thành lập ra sao, các điểm giống và khác nhau cũng như điểm mạnh và điểm yếu của
từng loại công ty.
In this unit, we will study three most basic types of companies
including proprietorships, partnerships and limited companies.
At the end of this unit, you will be able to talk and write about
main types of companies, how they are established, what
are their similarities and differences, and the advantages and
disadvantages of each type.
Trong bài học này, chúng ta sẽ tìm hiểu về ba loại hình công
ty cơ bản nhất gồm công ty do một nghiệp chủ duy nhất, doanh
nghiệp hợp doanh và công ty TNHH. Sau khi kết thúc bài học
này, các bạn có thể nói và viết về các loại hình công ty cơ bản,
chúng được thành lập ra sao, các điểm giống và khác nhau
cũng như điểm mạnh và điểm yếu của từng loại công ty.

the liability.
Debt or legal responsibility.
Sole ownership of a small business.
The amount of goods, merchandise or materials
on hand.
Company or a group of persons granted a charter to
do business as a separate unit with its own rights
and responsibilities.
A separate unit for ownership or legal purposes.
A business owned by two or more individuals.
TYPES OF COMPANIES
I
n business, there are many
legal forms of organization
but generally, organizations
usually belong to either public
or private sector. Organizations
in public sector are financed by
the state and they do not operate
in order to make profit but to
provide a public service. Examples
of public sector organizations
are schools, hospitals, libraries,
police and the national defense.
The organizations in private
sector, however, operate in
order to make profit and are
split into 2 categories: Non-
limited companies (including
proprietorship and partnership)

the decisions, takes all the risks
and keeps all the profits of the
business. The business itself
pays no tax, but the owner
must pay personal income
taxes on his profits. If a sole
proprietor is successful, he takes
a lot of personal satisfaction
in his enterprise. If he is not
successful and he wants to
close his business and start a
new one, he simply has to sell
his inventory and equipment,
pay his bills, close up shop,
and begin a new activity.
A
partnership consists of two
or more people who share
the ownership of a business
(normally less than 20 people).
A partnership should begin
with legal agreement covering
the various aspects of the
business. Two important items
that need to be covered are
exactly which assets each
partner is contributing, as well
as how the partnership can be
changed or terminated. This
agreement is called the articles

This means that if the company
fails, the liability of the
company's shareholders is
limited to the value of the
shares and not their personal
funds.
T
he limited company is very
different from both a sole
proprietorship and a partnership.
First of all, the limited company
is a legal entity that is chartered
by the state in which it is
incorporated. As a legal entity,
the limited company can own
property that is not the personal
wealth of its owners. It also
means that the limited company
can enter into business agreements
on its own. Forming a limited
company is not easy. There are
many legal procedures to follow.
A legal company raises capital
in a different way from the
proprietorship or partnership.
The ownership of the limited
company is divided into shares
of stock. One stockh older or
shareowner can buy, sell,
and trade his shares without

4. A partnership is, in many ways, similar to a sole proprietorship.
5. All stockholders can decide the use of the company’s profits.
6. A limited company can own property that is not the personal wealth of its
owners.
7. When one person doesn’t want to invest into a limited company, he can
obtain his money back by selling his shares.
8. Profits of the limited company are shared among shareholders in form of
dividends.
Unlike the sole proprietorship
and the partnership, the liability
of a company is limited to
the value of the assets of the
company. The personal wealth
of the stockholders cannot be
used to pay debts in case of
bankruptcy. Limited companies
do not operate like other forms
of business because the
ownership can be easily
transferred through stock sales.
A
s we can see in the three
types of legal organizations
discussed in this lesson, the
main differences between the
types of companies are the
ownership, ability to raise
capital, the size and continuity
of enterprise, the disposition of
profits, tax duties and the legal

(3) companies
or
(4) companies
are called
(6)
or
(7) companies
produce (5)
reports
produce
(8) reports
publish an (9) and hold an (10)
2.2
A stock exchange is a market
where anyone can buy or sell
stocks and shares. The US
equivalent of a PLC is a company
or corporation registered with
the Securities and Exchange
Commission (SEC). SEC-
registered companies, also
known as listed companies,
have to make quarterly reports
(i.e. every three months). They
report on:
a. Sales revenue or turnover:
the money received by the
company in that period
from selling goods or
services.

private ones do too. At this
meeting, the shareholders
can question directors about
the content of the Annual Re-
port and the financial state-
ments, vote to accept or
reject the dividend recom-
mended by the directors, and
vote on replacements for re-
tiring members of the board.
The meeting can also carry
out any other business stated
in the company’s Memoran-
dum of Association or
Certificate of Incorporation.
20
Unit 2: Types of companies
Match the two parts of the sentences in column A and column B according to
what you read in text B
From what you have read in text A and text B, draw a comparison of three forms
of companies by completing the following table. The suggested time for this
exercise is 20 minutes
2.4.
You will hear Laura King describing how she got the original idea for opening
Fasta Pasta. Listen and answer the following questions
1. What was Laura King’s job when he worked for the
pizza restaurant company?
2. What kind of hours was she working at the time?
3. What observation did she make about the home
delivery market?

f. at an annual meeting
2.3
2.4
3.1
21
Listen to Laura King’s description of the customers of the Fasta Pasta
1. What are the differences between the customers she serves (a) at lunchtime and (b) in the
evening?
2. How does he describe the average customer?
In this extract, Laura King answer the question ‘What advice would you give to
young people thinking of setting up their own business?’ Listen and complete
the following pieces of advice with the verbs which she uses
1. …………….what ever you want to do carefully
2. …………….to friends and relatives and people you know about what you want to do
3. …………….in what you’re doing
4. …………… to people and ………….from others
5. …………… the right sort of background
In the following sentences, try to determine the meanings of the underlined
words from the context. Select the word which most similar to the underlined
word. The suggested time to do this exercise is 5 minutes
1. The sole proprietor is liable for all the debts of his enterprise. He owns all the assets, but
he owes all the liabilities.
a. inventory c. capital
b. proprietorship d. debts
2. The different forms of organization are taxed differently on their profits. They also have
different legal obligations with regard to their debts in the event of bankruptcy.
a. case c. cost
b. aspect d. failure
3. His personal assets can be used to settle the debts.
a. wealth c. freedom

3. A money B balance C principal 4. A account B interest C audit
5. A security B safety C salary 6. A lend B borrow C invest
7. A out B up C off 8. A hold B pick C hand
9. A gearing B venture C equity 10. A division B divider C dividend
11. A borrowing B lending C sharing 12. A capital B debt C collateral
Look at the following business cards. What type of business does each one
correspond to: public limited company, sole trader, partnership or private
limited company?
22
Unit 2: Types of companies
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4.2

Business
Advantages
1 You have total control of your business.

2 This is good way of sharing the pressure and work
involved in starting a business.

3 The financial risks that you are taking are restricted.

4 You can increase your capital by selling shares.

Disadvantages

1 There is a danger that conflicts of personality could
ruin your business.

2 It may be difficult to expand.

3 You may have to sell your possession if the company
goes into debt.

4 It is complicated and expensive to set up.

5.2
5.2
2. How do you get on with other people?
a. I get on with almost everybody.
b. I have my own friends and I don’t really need anyone else.
c. I don’t really feel at home with other people.
3. Can you lead and motivate others?

c. Making money is my main motivation.
24
Unit 2: Types of companies
11. How do you react to criticism?
a. I dislike any form of criticism.
b. If people criticize me I always listen and may or may not reject
what they have to say.
c. When people criticize me there is usually some truth in what they say.
12. Can people believe what you say?
a. I try be honest, but it is sometimes too difficult or too complicated to explain
things to other people.
b. I don’t say things I don’t mean.
c. When I think I’m right, I don’t care what anyone else thinks.
13. Do you delegate?
a. I prefer to delegate what I consider to be the least important tasks.
b. When I have a job to do I like to do everything myself.
c. Delegating is an important part of any job.
14. Can you cope with stress?
a. Stress is something I can live with.
b. Stress can be a stimulating element in a business.
c. I try to avoid situations which lead to stress.
15. How do you view your chances of success?
a. I believe that my success will depend to a large degree
on factors outside my control.
b. I know that everything depends on me and my abilities.
c. It is difficult to foresee what will happen in the future.
16. If the business was not making a profit after five years, what could you do?
a. give up easily
b. give up reluctantly
c. carry on

There are basically two ways in which we can write essays that involve comparison and/
or contrast.
One way is to write down all the main points about one of the subjects to be compared, then
to take all the main points about the other subject, like this:
26
Unit 2: Types of companies
6.1
The other way in which we can write essays that involve comparison and/or contrast is to take
each point in turn and contrast them immediately, like this:
II. Language for writing
The followings are the language that are commonly used in a comparison and contrast
essay. Refer to the examples below for the way of using such words and phrases.
A. Comparison structure words
Practice 1
Use the words and phrases in the box above to fill in the blanks below (there may be more
than one choice for one blank):
1. Human workers can detect malfunctions in machinery; (1)… , a robot can be
programmed to detect equipment malfunctions.
Human workers can detect malfunctions in machinery; a robot can (2)…………
Human workers can detect malfunctions in machinery; a robot can, (3)….…… Robots
can detect malfunctions in machinery, (4) ………… human workers can. (5)………….
robots ………… human workers/not only robots but also human workers can detect
malfunctions in machinery. (6)…………. robots ………….human workers are infallible.
27
Unit 2: Types of companies
I. INTRODUCTION
II. BODY
Subject 1 Subject 2 Subject 3
Paragraph 1: Point 1 to Point 1 to Point 1
Paragraph 2: Point 2 to Point 2 to Point 2

2. Robots, (7)………………. human workers, can detect malfunctions in machinery.
3. Robots are (8)…………………human workers because they can both detect malfunc-
tions in machinery.
4. In their ability to detect malfunctions in machinery, robots and human workers
(9)……………
5. Robots and human workers (10)………………because they can both detect malfunctions
in machinery.
6. Robots can (11)…………………human workers in their ability to detect malfunctions in
machinery.
B. Contrast Structure Vocabulary
Contrast structure words fall into two main groups according to their meaning. The first group
shows contrast in the sense of concession or unexpected result. The second group shows con-
trast in the sense of direct opposition. The clauses connected by the words in the second group
are reversible. This means, for example, that while and whereas may be placed at the begin-
ning of either clause with no change in meaning:
- veto: cancel - siblings: brothers and sisters
I am short, whereas my brother is tall and Whereas I am short, my brother is tall are both pos-
sible and are equal in meaning.
It is not always possible to do this with words from the first group, For example, the subor-
dinator even though must be placed at the beginning of the clause It began to rain in the fol-
lowing sentence: We continued our like even though it began to rain.
It would not make sense to write Even though we continued our hike, it began to rain.
Notice that but and however belong to both groups.
•
Contrast structure words - Concession (Unexpected result)
Practice 2
Use the words and phrases in the box above to fill in the blanks below (there may be more
than one choice for one blank):
1. It began to rain; (1)…………………… we continued our hike.
28

whereas
4. but 5. differ from
6. compared (to/with)
7. (be) different
(from)
(be) dissimilar to
(be) unlike
2. We continued our hike (2)……………… it began to rain.
3. It began to rain, (3)……………… we continued our hike.
4. (4)………………. the rain, we continued our hike.
•
Contrast structure words - Direct opposition
Practice 3
1. The term rock music commonly refers to music styles after 1959 that were influenced
primarily by white musicians: (1) …………………………………, rhythm-and-blues
music styles were influenced primarily by black musicians.
2. Innovation in rock music comes not just from the United States; (2)……… …….,
the Beatles and the Rolling Stones were from Great Britain, and the music style known
as reggae came from the Caribbean island of Jamaica.
3. The term rock music commonly refers to music styles after 1959 that were influenced
primarily by white musicians, (3)……… … rhythm-and-blues music styles were
influenced primarily by black musicians.
4. The term rock music commonly refers to music styles after 1959 that we were influenced
primarily by white musicians, (4)……… rhythm – and blues music styles were
influenced primarily by black musicians.
5. Early rock music (5)………………… … later styles in that later styles make use
of electronics to produce new sounds.
6. (6)…………………… earlier rock styles, later styles have a harder sound.
7. The punk, rap, grunge, and techno styles, of the ‘90s’ are very (7)………………… ….
the rock music played by Elvis Presley in the ‘50s, but they have the same roots.

P
- Proprietorship
- Phá sản
- Ban giám đốc
- Vốn
- Giải thể
- Cổ tức
- Công ty, xí nghiệp
- Thực thể
- Thiết bị
- Chuyên môn
- Thuế thu nhập
- Hàng hóa (tồn kho, trong kho)
- Khoản nợ
- Công ty trách nhiệm vô hạn
- Quyền làm chủ
- Quyền sở hữu doanh nghiệp bởi một nghiệp
chủ duy nhất
S
- Stock holder
- Sole trader
- Cổ đông
- Thương nhân cá thể (một mình đứng ra kinh
doanh và tự chịu trách nhiệm về nợ nần của
mình trong kinh doanh
English terms Vietnamese equivalents
A
- Articles of Co-partnership (n)
- Articles of Incorporation (n)
- Asset (n)