PRIVATE VS PUBLIC COMPANIES

• What is the focus of the CSEC program discussed?

  Principles of business
• What are the two types of companies mentioned?

  Private and public limited companies
• What is a company considered in legal terms?

  A legal entity
• Who owns a company?

  Its shareholders
• What do shareholders elect to manage a company?

  A board of directors
• Who handles the day-to-day operations of a company?

  Managers appointed by the board
• What is a key distinction between companies and sole traders?

  Companies can own property
• What happens if a sole trader's business incurs damages?

  The owner is personally liable
• How is a company treated in legal matters?

  As a separate legal person
• If someone slips in a Microsoft store, who do they sue?

  Microsoft, not Bill Gates
• What is the difference between shareholders and stakeholders?

  Shareholders own shares in the company
• What do public companies do with their shares?

  Trade on stock exchanges
• What is a dividend?

  A share of the company's profits
• What do shareholders do at annual general meetings?

  Elect a board to run the company
• What is the role of the board of directors?

  To oversee company management
• What is required for company registration?

  Articles of Incorporation
• What does the certificate of incorporation signify?

  Legal recognition to operate as a company
• What are bylaws in a company?

  Rules governing the company's operations
• What is limited liability?

  Loss is limited to the investment amount
• How does limited liability differ from unlimited liability?

  Limited liability protects personal assets
• What can companies do that sole traders cannot?

  Borrow money in the company's name
• What is the advantage of having professional managers in a company?

  They bring diverse expertise to the business
• What happens to shares in a company?

  They can be bought and sold
• What are the advantages and disadvantages of companies?

  Advantages:

  • Limited liability
  • Ability to own property
  • Can borrow money
  • Professional management

  
  

  Disadvantages:

  • More paperwork for registration
  • Higher operational costs
  • Potential for shareholder disputes
• How do companies raise funds from the public?

  By issuing shares to investors
• What is the role of a CEO in a company?

  To oversee the company's operations
• What is an example of a public company mentioned?

  Microsoft
• What is the significance of stock exchanges?

  They facilitate trading of company shares
• What is the Eastern Caribbean Stock Exchange?

  A stock exchange for public companies
• What happens when a company makes a profit?

  Dividends may be paid to shareholders
• How does the ownership structure of a company affect its management?

  Shareholders elect a board to manage
• What is the purpose of a name search in company registration?

  To ensure the name is unique
• What is the Articles of Incorporation?

  Documents outlining company structure
• What is the role of the board in a company?

  To provide strategic direction
• What is the significance of the certificate of incorporation?

  It allows the company to operate legally
• What is the difference between a public and private company?

  Public companies trade shares publicly
• What is the impact of limited liability on investors?

  They risk only their investment amount
• How do companies manage risks associated with limited liability?

  By diversifying investments and operations
• What is the role of professional managers in a company?

  To bring expertise in various fields
• How can shares affect a company's capital?

  Shares can be sold to raise funds