的研究生商务英语课件1.pptVIP

Unit 1 Setting up a Business Brief Introduction Forms of business: 1.Sole proprietorship 2.Partnership 3.Corporation 4.Franchising Sole proprietorship A business owned and controlled by one person. Advantages Simple to establish. Freer in decision-making. Easy to keep operational and financial secrecy. Less tax burden. Exclusive use of profits. Disadvantages Unlimited liability Limited access to capital. Limited managerial expertise. Partnership An association of 2 or more persons to carry on as co-owners of a business for profit. Advantages Improved access to capital and credit. Greater possibility for good management. Definite legal framework. Better prospects for growth. Disadvantages Unlimited liability Internal conflicts Problem of continuity Corporation At least three incoporators(stockholders or shareholders) needed to form a corporation. A corporation is a legal person. Advantages Limited liability Easy to expand Separated ownership from management Continuous life Disadvantages Double taxation High organizing costs Lack of secrecy Franchising A licensing agreement, under which the franchisor grants the franchisee the right to sell or use the former’s product, service or method in return for a royalty from the latter. Advantages Have instant customer recognition but still enjoy some independence as a sole proprietor. Receive training and guidance from the franchisor. Have less difficulty getting bank loans than a sole proprietor of a small business. Disadvantages Franchise arrangements may reduce risks, but do not guarantee success. High royalty makes business running with no profits or even at a loss. Franchisee has to sacrifice some independence for most of details of business operation. Discussion: 1. In which field will you set up your business? Explain your choice. 2. Will your business be a sole proprietorship, a partnership or a corporation? Explain your decision. Terms: Sole proprietorship个体经营，个体户 Partnership合伙公司 Co