TERMINOLOGIE Mme DUCRAY CHAPTER 1. THE COMPAGNY CORPORATE GOVERNANCE (la gouvernance) Different types of compagnies The main difference is between a publicly trade company and a privately held. Stock options = benefits sold to employees of the company. General trends A public company is purchased by another public company to become either a subsidiary (a firm takes the control over another one) on a joint venture = jointed asset , risks … The US/UK business models SOLE PROPRIETORSHIP = start a business with your own It’s when a person owns all the assets and all the liabilities Limited (=Ltd sarl) Partnership entities are 2 persons or in a company, the entity is a business structure, so less risk. The limit in determined by the amount of money invested in the company. Unlimited P or C, there is no limit on assets and liabilities. Exercice : Initial public offering (IPO) = first sal of stock by a company to the public. To go public= entrer en bourse Joint venture (JV) =a contractual agreement joining two or more parties to undertake economic activity together Stock option = a right to buy or sell specific securitires or commodities at a stated price within a specified time ; customarily a part of executive compensation package. Owner = entity that possesses the exclusive right to hold, use, benefit from an asset or property. Leveraged buyout (LBO) = takeover of a compagny or controlling interest in a company using a significant amount of borrowed money Limited company = a business structure in which shareholder responsibility for company debt strictly depends on the amount he/she has invested in the company. Sole proprietorship/trader = a business structure in which an indiv and his/her company are considered a single entity for tax and liability purposes Share = a