Finance English practice: Unit 6 — Company Law 2

Biz English

Apr 14, 2016

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Complete the sentences below. Use the key words if necessary.
- Private and public companies
  
  key words
  Private companies ○ open market ○ public limited companies ○ stock exchange ○ corporation ○ listed companies ○ quarterly reports ○ turnover ○ gross profit ○ net profit ○ quoted companies ○ interim report ○ Annual Report ○ auditors’ report ○ Annual General Meeting ○ Extraordinary General Meeting
  
  usually have 'Limited' or 'Ltd' at the end of their name. They are not allowed to sell their stocks or shares on an . Most companies are private; there are about one million private companies in Britain, compared to around 2,000 (PLCs). These companies have 'plc' at the end of their name and their shares are publicly traded on the London Stock Exchange. A is a market where anyone can buy stocks and shares. The US equivalent of a PLC is a company or registered with the Securities and Exchange Commission (SEC).
  
  SEC-registered companies, also known as , have to make (i.e. every three months). They report on: sales revenue or — the money received by the company in that period from selling goods or services, — turnover less cost of sales, — gross profit less administrative expenses and tax.
- Companies on the London Stock Exchange, known as , have to produce a half-yearly which informs shareholders about the company's progress. These reports are not audited.
  
  All companies with shareholders or stockholders have to send them an each financial year. This contains a review of the year's activity, and an examination and explanation of the company's financial position and results. There are also financial statements and notes, and the on the financial statements.
  
  Public companies have to hold an , and most private ones do too. At this meeting the shareholders can question directors about the content of the Annual Report and the financial statements.
  
  If there is a crisis, the directors or the shareholders can request to hold an to discuss the situation.
British English or American English?
- Annual General Meeting (AGM)
  - British English
  - American English
- Extraordinary General Meeting(EGM)
  - American English
  - British English
- Annual Meeting of Stockholders
  - American English
  - British English
- Special Meeting
  - American English
  - American English
Choose words with the following meanings
- Behaviour that breaks the law. — . . .
  misconduct
  - misconduct
  - gross profit
  - turnover
  - net profit
- Sales revenue minus the cost of sales, before deductions for administration expenses, interest charges, etc. — . . .
  gross profit
  - net profit
  - gross profit
  - turnover
  - misconduct
- Sales revenue minus the cost of making and selling the goods, and deductions for administration expenses, interest charges, etc. — . . .
  net profit
  - misconduct
  - turnover
  - gross profit
  - net profit
- The total amount of money a company receives from selling goods or services. — . . .
  turnover
  - turnover
  - gross profit
  - misconduct
  - net profit
Match the two parts of the sentences.
- Only quoted or listed companies . . .
  can have their shares traded on stock exchange.
  - are contained in their annual reports.
  - if there is a crisis.
  - are not checked by external auditors.
  - about their sales and profits every three months.
  - at an annual meeting.
  - can have their shares traded on stock exchange.
- American corporations publish details . . .
  about their sales and profits every three months.
  - are contained in their annual reports.
  - are not checked by external auditors.
  - can have their shares traded on stock exchange.
  - if there is a crisis.
  - at an annual meeting.
  - about their sales and profits every three months.
- Companies' financial statements, and the auditor's report, . . .
  are contained in their annual reports.
  - if there is a crisis.
  - can have their shares traded on stock exchange.
  - at an annual meeting.
  - about their sales and profits every three months.
  - are contained in their annual reports.
  - are not checked by external auditors.
- Quarterly and six-monthly reports . . .
  are not checked by external auditors.
  - are not checked by external auditors.
  - are contained in their annual reports.
  - about their sales and profits every three months.
  - at an annual meeting.
  - can have their shares traded on stock exchange.
  - if there is a crisis.
- Shareholders can ask company directors questions . . .
  at an annual meeting.
  - about their sales and profits every three months.
  - are contained in their annual reports.
  - can have their shares traded on stock exchange.
  - if there is a crisis.
  - at an annual meeting.
  - are not checked by external auditors.
- Companies can hold an emergency general meeting . . .
  if there is a crisis.
  - are not checked by external auditors.
  - can have their shares traded on stock exchange.
  - are contained in their annual reports.
  - at an annual meeting.
  - if there is a crisis.
  - about their sales and profits every three months.

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