商务英语 Level 4 Unit 1 Part 4 Vocabulary【Company milestones】

Vocabulary【Company milestones】

to establish
To establish a company means to start one.
It involves making a business plan, choosing an office, and applying for permits and licenses.
Many Internet entrepreneurs established their businesses in their twenties.
Many countries provide support for college students to establish their own businesses.

to merge
When two companies merge, they combine into a larger company.
A merger often happens when two companies of a similar size agree to enter a partnership.
Mergers allow companies to combine their resources and increase their market share.
Mergers can help businesses better compete in the international market.

to acquire
To acquire a company means to buy it.
An acquisition usually happens when a larger company decides to purchase a smaller one.
Through an acquisition, the buying company can acquire new resources and a larger market share.
Before an acquisition, the buying company will analyze how profitable the acquisition could be.
They rejected an acquisition proposal from Apple.
When Microsoft acquired Nokia, tens of thousands of employees lost their jobs.

to go public
When a company goes public, it transfers ownership from private individuals to the public.
After going public, a company can trade its shares on the stock market.
This means the company has access to more capital.
But it also means the company will have more pressure from shareholders to be profitable.
The company went public in September at thirteen dollars a share.
Mars has no intention to go public.

to go bankrupt
A company that is unable to pay its debts can file for bankruptcy.
When a company goes bankrupt, its assets are sold to pay off its debt.
The company was declared bankrupt by the court.
If we fail to recover losses immediately, we will go bankrupt.
Lehman Brothers' bankruptcy led to an earthquake in global markets.

---

Question

1. One part of establishing a company is making a business plan.
2. What happens during an acquisition?
   > A larger company purchases a smaller one.
3. What happens when companies merge?
   > They enter a partnership.
4. What is part of establishing a company?
   > making a business plan
5. To acquire a company means to buy it.
6. Going public can place great pressure on the company to be more profitable.
7. Going public grants a company access to more capital.
8. Under what circumstance does a company go bankrupt?
   > The company is unable to pay its debts.
9. What happens when a company goes public?
   > It becomes publicly traded.