GROUP ASSIGNMENT 1

Task 1: Look at the following business types. Read what the people say below and match their
businesses with the correct business type.

a. Esther Jackson: “We set up our business together two years ago. I'm an accountant and Mark
is a builder. We trade under the name of MH Property Services. Mark does all the building work
while I deal with all the paperwork. Mark and I share all the profits. We didn't have to register
the business anywhere. We took out a loan from the bank when we set up, to buy a van and any
tools that Mark needed. The bank insisted on securing the loan on our house, but as we were
confident about the future of the business, we decided to take this risk.”
partnership
This type of business is a ____________________________.

b. Harriet Higgins: “I own shares in Express Enterprises, which I bought two years ago through
a stockbroker. Express Enterprises has just announced that it has made record profits this year.
It has declared a dividend, which provides an excellent return on my investment. This dividend is
to be distributed soon. All of the shareholders will be delighted that the price of shares has risen
by 21 pence each since this announcement was made. Stockbrokers are reporting that a lot of
people are interested in buying Express Enterprises' shares.”
public limited company
This type of business is a ____________________________.

c. Hassan Abdullah: “I own a consultancy firm. I have office premises in Birmingham and I
employ two full-time employees. I have just completed the annual return for the last year of
trading, providing details of the capital, the shareholders, address of the registered office and
other information. My accountant is preparing the annual financial accounts. Business
fluctuated last year, but I am optimistic that it will grow and provide a steady income.”
sole trader/sole proprietor
This type of business is a ____________________________.

d. Elliot Solomon: The four of us set up our accountancy business about 18 months ago. After
considering the options, we decided on this type of business structure. Most new professional
services are using this structure. There is less risk involved as we are only liable for the amount
of money we contributed to the business. Tax was another consideration. We didn't want to pay
corporation tax which is generally at a higher rate, so we opted for this. We each have to pay
income tax on our share of the business profits.'
limited liability company
This type of business is a ____________________________.
e. Suzanne Marshall: “I am a maths teacher. I used to work in a big school, but decided that I
wanted to do private tutoring, specialising in helping children who find it difficult to understand
maths. The business is very successful and I have a waiting list of parents who are interested in
their children having lessons with me. I don’t want a big business, I’m happy just doing the
hours I want. I can be as flexible as I want. If I need more money, I just accept extra pupils. The
business is easy to run and I'm not restricted by rules and regulations.”
sole trader
This type of business is a ____________________________.
Task 2: Fill in the blanks with appropriate words of industry types, business models, and types
of companies.
Industry types: primary, secondary, tertiary
1. Shippmaking is considered as the ______ industry because it produces finished, usable
products for marine purposes.
2. Hospitality is a ______ industry that involves hosting guests in such areas of restaurants and
hotels.
3. Oil and gas extraction is a ______ industry that involves the process of extracting oil via
pump jacks and other artificial lift devices for further refinery processes later.

Business models: B2B, C2C, B2C, B2B2C

4. The ______ e-commerce sales follow the retail model, where a business sells directly to
individuals, but business is conducted online as opposed to in a physical store.
5. John set up his online business last year with the ______ model to sell ready-made and
healthy food to office workers.
6. Starbucks is an example of the ______ business model because this type of company sells
their products directly to customers.
7. AIA Life Insurance follows both ______ and B2C business model as the company sells their
products and services directly to businesses and consumers.
8. In 2020, Vietnamese VinGroup has officially launched its ______ e-commerce platform
VinShop to connect goods directly from manufacturers to grocery store owners, and finally sell
the products to end users.

Types of company: holding, subsidiary, state-owned, public limited

non-government, foreign, private, limited liability
9. Heineken Vietnam Brewery is a ______ business because its shares are not listed and traded
on the stock market, but it amounted to approximately 0.95% of the nation’s total GDP through
its value chain last year.
10. In September 2016, the pharmaceutical and medical device company Johnson & Johnson
(J&J) announced they were buying Abbott Medical Optics for $4.3 billion and become the
______ company of Abbott.
11. Ebay Inc. is an American multinational e-commerce ______ company based in San Jose,
California and one share of EBAY stock can currently be purchased for approximately $63.11.
12. Instagram has been the ______ of Facebook Inc. since 2014 with the acquiring capital at 1
billion USD, and Facebook Inc. has exerted ultimate control over anything that happens at
Instagram.
13. Vietnam Electricity (EVN) was established by the government as a ______ company in
1994, and has operated officially as a one-member limited liability company since 2010.
Task 3: Choose the correct answer for each sentence.
1. Under the Company law, a company and its members are ______ legal personalities, which
means that a company has separate rights, duties, and ability to sue and be sued ensured by law.
A. single B. ideal C. distinct D. incriminating
2. Under the Company law, members of a private limited company are generally not ______
responsible for the money owed by the company.
A. enforceably B. personally C. morally D. validly
3. The Articles of Association are made to define fundamental regulations relating to the
purposes and ______ affairs of a company to achieve the business objectives.
A. domestic B. local C. internal D. external
4. Under the Company law, a company has its own rights and duties under the law just like a
______ person.
A. revoking B. living C. formal D. natural
5. A company is a group of people which is treated as a legal person, with a ______ identity
from its shareholding members.
A. justified B. separate C. voidable D. proximate
6. Companies have an inherent flexibility, implying that a company initially formed by a sole
proprietor can grow to be a ______ listed company.
A. publicly B. widely C. commonly D. fraudulent
7. The “Articles of Association” regulates the company's internal management and ______
affairs, including matters such as the rights and obligations of shareholders and directors,
conduct of meetings and corporate contracts.
A. managerial B. innovative C. incorporated D. administrative
8. As business becomes increasingly globalized, company lawyers in one jurisdiction have to be
more aware of the company laws of other jurisdictions as well as international ______.
A. regulations B. customs C. traditions D. rules
9. Because of the limited liability of the members for its debts, as well as its separate
personality and tax ______, the company has become the most popular form in business.
A. offer B. remedy C. treatment D. invasion
10. Generally, the ______ of a company consists of two documents, the Memorandum of
Associations and the Articles of Association.
A. constitution B. proprietor C. inter alia D. fund
11. Once you have filed the required statutory forms as well as the constitutional documents with
Companies House, a ______ of incorporation will be issued to you.
A. degree B. qualification C. license D. certificate
12. Under the Company law, if a person decides to form an unincorporated business on his or her
own, that person will be a sole ______.
A. vehicle B. proprietor C. franchise D. management
13. A ______ is a form of business organization that is authorized to act as a legal entity
regardless of the number of owners.
A. corporation B. legislature C. partnership D. personality
14. A company is a voluntary ______ of persons recognized by law, having a distinctive name
and common seal, formed to carry on business for profit.
A. stakeholder B. agenda C. track D. association
15. One drawback of public limited companies is that there can be a loss of ______ by the
original owners as additional shares are sold.
A. affair B. control C. fund D. vehicle
16. Under the Company law, the directors are required to have regard to the desirability of the
company ______ a reputation for high standards of its business conduct.
A. balancing B. submitting C. maintaining D. winding
17. Under the Company law, the directors are required to have regard to the need to ______ the
company's business relationships with suppliers, customers, and others.
A. foster B. initiate C. activate D. associate
18. Under the Company law, the directors are required to have regard to the impact of the
company's ______ on the community and the environment.
A. privileges B. benefits C. operations D. commitments
19. In limited companies, the assets of the owners and the business are entirely separate, thereby
protecting the personal assets of the owners from the claims of the company’s ______.
A. creditors B. directors C. regulators D. contractors
20. A company is a stable form of business organization with perpetual ______, which means its
life does not depend upon the death, insolvency, or retirement of any or all shareholders or
directors.
A. consent B. existence C. claim D. discretion