6. Stocks & Shares
• Scan the article on page 91 to answer the
questions in 1B
ANSWERS:
1. Because a non-incorporated business (i.e. one that
is not a company) has unlimited liability for debts. If
it owes money, the people involved in it are not
protected from bankruptcy and can lose their
personal possessions. A company provides legal
protection and limited liability.
2. In order to raise capital, generally to expand the
business.
3. Shares give their holders part of the ownership of a
company. Shareholders receive a proportion of a
company’s profits as a dividend, and may be able to
make a capital gain by selling their shares at a
higher price than they paid for them.
7. Bonds
*** What is a bond?
http://www.youtube.com/watch?
v=svOsKnWlW-g
***What is the difference
between stocks and bonds?
http://www.youtube.com/watch?
v=TnLeJ62qqCs
8. SHOW ME THE MONEY!
• bankers vs. small business owners
• only one loan to give
• think of a product/service and
prepare facts/figures about costs,
sales projections, profit margins,
repayment periods, existing
competitors, new competitors,
etc.
• the bankers will decide who to
give the loan to (and
professionalism points!)