Industries and companies

primary industries

agriculture, forestry, mining

secondary industries

capital goods, durable goods, non-durable goods

capital goods

equipment and machinery used to produce other goods

durable goods

cars, washing machines

non-durable goods

food, clothing

service industries

banking, entertainment, tourism

Economy can be divided into

the private sector, the public sector

the private sector

large corporations, small and medium-sized enterprises, individuals working on a self-employment basis

the public sector

schools, hospitals, state owned enterprises

Types of business

sole trader, partnership, limited partnership, privet limited company, public limited company, franchise

sole trader

responsible for all losses of the business, no one to share the risk with him, no one to take over from him, no capital for expansion

partnership

they share the risk, they also share a profit, tho or more people run the business together

limited partnership

a partner can limit his liability to the amount he contributes, one partner have unlimited personal liability for the losses of the partnership

private limited company

limited liability company, company is responsible for any debts not the owners, shares cannot be sold to members of the public, restriction on the number of members (maximum fifty)

public limited company

large financial institutions, members of the public, run by managers under supervision of a Board, stockholders can sell their shares freely on the Stock Exchange

franchise

business owner allows other people (franchisees) to set up in business using the company's brand name products and reputation, the franchisee has varying degrees of control over how products are marketed and sold

Business expansion

stay private, initial public offering, trade sale, merger, acquisition

stay private

the company increases its sales, number of employees but stay as a private company

initial public offering

the process of issuing shares, moves from large company to company with a stock-market listing

trade sale

the original small company is absorbed, for instance: biotechnology and IT

merger

two established companies join to form one

acquisition

takeover, one established company buys another (subsidiary) by taking controlling stake

auditing

An examination of records or financial accounts to check their accuracy

air freight

a system of transporting freight by air.

semiconductors

An integrated circuit or other electronic component containing a semiconductor as a base material

data processing

The collection and manipulation of items of data to produce meaningful information

general merchandise store

a rural or small town store that carries a general line of merchandise

A peripheral

a device that is connected to a host computer, but not part of it

utilities

electric, gas, water

brokerage

the business of buying and selling shares

consumer staples

beverage, food, personal products

office supplies

paper, post-it notes

consumer discretionary

automobiles, household appliances, consumer services, household durables, leisure facilities

apparel

clothing

integrated circuit

chip

fabrication

manufacturing

beverages

drinks

property

real estate

facilities

rooms, equipment or services that are provided for particular purpose

initial public offering

flotation

partnership

of

run company on

a day-to-day basis

privately-held

shares

constraints

restrictions, obstacle

underwrite the issue

the investment bank takes some risk as they guarantee that all the shares will be purchased