Types of shares.

The share capital of companies:

a.Nominal or authorized capital-max amount of mony a co is allowed to raise

b.Issued capital-already has been raised

c.partly paid up capital-kogucap-veel loodetav

Types of shares:

a.ordinary shares

b.preference shares

1.cummulative PS-when 1year not paid then next year.

2.Parcipating PS-voting right

3.Redeemable-ost.varsti tagasi,cap.tostmise voimal.

c.Debentures-pole akts.vaid long-term fixd intrest loans.

Types of firms

Private sector:

a.The sole trader.

1.Adv-no formal protcedure,private,indipendent decitions

2.Dis-unlim.liability,no distinction between owner-business(ded), difficult to raise capt techology to expensv

b.The Partnership

1.adv-more capt(still limited),exercises shared

2.dis-unlim liabil(Lim PS act 1907 allows for 'sleeping partners' .At least 1 unlim.),actions of 1partn are binding on others-abs.confidence,lim.techique

c.Limited co-The Private lim&teh public lim

1.adv-lim.liab,co has it own legal existence

2.contr.ownership,control,decitionmaking,risks(capital losses,revenue losses(gearing ratio-how many pref.share

d.co-operatives

Public sector

1.Public co-centr.govn

a.adv-provide essential sots.needs,efficency and rationalization,to avoid abuse of monopoly power,difficult allocation of costs(hinda igale in.on raske maarata),strategic importance/safety,control over the economy,to reduce inequality,political belief(people belive that is wrong when essentials is owned by private

b.dis-lack of the profit,too conservative,too rash(riskib palju),monopoly,bureaucracy(rules)

c.contr.-ministerial,parliamentary(annual),the board council(everyday),consumer protection(councils)(Static efficency-costs of prod,dynamic effic-innovation)

2.Municipal undertakings-local covn

Privatisation adv-efficency,cons.choice,revenue through sales,increasing share ownership,competition,the problem of natural monopolies

Demand-various amounts of a good or service that consumers are willing and can by at various prices in a given period of time-1.income 2.population 3.seasonal factors 4.tastes and fashion 5.change in the price of substitutes 6.change in the price of complements

Supply-the various amount of a good or service producers are willing to put on the market at various prices in a given period of time 1.change in the price of a factor of production 2.change in the state of techology 3.govn intervension 4.new firms entering the industry

Govn intervension-1.imposition of a tax(ad valorem%,specific£) 2.pays subsidy 3.Imposition of a max/min price 4.Implementation of a buffer stock system(max&min) 5.imposition of a quota.