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prof english

1.1 Starting up

When people want to set up or start a company, they need money, called capital. Companies can borrow this money, called a loan, from banks. The loan must be paid back with interest. Capital can also come from issuing shares or equities. The people who invest money in shares are called shareholders and they own part of the company. The money they provide is known as share capital. Individuals and financial institutions can also lend money to companies by buying bonds.

Discuss the following points.

1. What is necessary to start a company?

2. What is the difference between share capital and borrowed capital?