The Sole Trader, Partnership, Banking, Meeting

The Sole Trader
Unlimited liability = problem for sole trader, who is responsible for all the debts in his business.
Partnerships
= type of business between 2 and 20 persons as members - Partnership Act
- banks only 10 partners
sleeping partner = person, who left business but he is still keeping his investment and
sharing in any profits
Deed of Partnership = legal document outlines the rights and duties of each partner.
Limited partners – the liability ends with the amount of money put into the business
- one of partners must be with unlimited liability

Limited liability companies
= capital divided into shares, which will be sold to members (shareholders)
fail of company – shareholders lose what they had paid in for shares and nothing more.
a) Private = owned by a family, who elect a board of directors
- shares can be sold privately with agreement of the other shareholders
b) Public = largest, household names, min 2 shareholders, who are allowed to sell their shares to the public
Annual general meeting (AMG) = invitation to all shareholders to hear the policies of the company, called once a year
Chairmans´s Report = the Balance Sheet + Profit and Loss Account (audit)
The power of shar. is limited to the proportion of shares held.

MEETING
- 5 types:
1. Negotiating = 2-sided discussion, to resolve conflict
2. Informing = flow of information tents to one way
3. Solving problems = the creativity of group, discussion flows around the table
4. Making decisions = involve in a decision-making process, fairly well structured
5. Collecting and exchanging ideas = to present, inform and receive reactions to ideas
- 5 mistakes:
1. Inadequate structure = (nedostatečná struktura) failure to keep to its purpose
2. Distribution and absorption of information (rozdělení a vstřebávání inf.) = quick reading and members assume that they understand all problems
3. Minutes
4. Agenda setting (prostředí) = not planned – diverse, lose interest in the whole proceedings
5. Chairperson (předseda) = allows too much free discussion

BANKING
a) central bank – leads the interest rate structure, accepts deposits, make loans to the com.
banks, manages the national debt, controls issuing bank notes …..
- Bank of England, B. of Japan, Bundesbank ….
b) commercial banks – privately owned banks, také deposits and make loans,
fin. services (= insurance, credit cards, foreign exchange …)
A deposit = current account (demand deposits) and deposits account (time deposits)
credit card = magnetized card issue by a bank against which purchases
- may be used to withdraw cash from a cash dispenser
overdraft = the client is allowed to overdraw their current up to an agreed limit.
loan = the lending sum of money, made by individuals, companies, banks …
UK banks = BIG FIVE = Lloyds, the National Westminster, Barclays …
US banks = different systém: commercial = state bank and national bank are chartered by the federal government
CZ banks = KB, IPB, Československá obchodní banka

RAISING CAPITAL
a) start-up capital = on the beginning of business,
- own savings, kept in deposit account, building society, an overdraft, a bank loan
bank loan: bank proven record of success, want to see a business plan (details about the aims)
banks provide services: bank standing order, deposit account, bank statements, advice on business …
b) circulating capital = purchases – raw materials – work in progress – finished goods – sales – cash collection – cash- profit- cash …. a znova