Chapter 1 Forms of Business Ownership.ppt

Forms of Business Ownership 企业产权形式 ☆How many Chinese and foreign companies can you name?☆What is your most admired corporation?☆What company do you wish to work for? The following are some of China’s powerful brands. Can you name their Chinese version? Haier Group TCL Corp., Ltd Lenovo Group ltd., Ltd Huawei technologies Co., Ltd The People’s Insurance Company of China (PICC) Business formats: Sole Proprietorships Partnerships Corporations Limited Liability companies Joint Venture Mergers Acquisitions Franchises Multinationals Sole Proprietorship 个人企业 An organization that is owned, and usually managed, by one person is called a Sole Proprietorship. 个人企业即独资经营企业，是由一名出资者单独出资并从事经营管理的企业。 Sole Proprietorship Advantages Can make decisions quickly Keeps all the rewards Easy to set up Privacy of business affairs Disadvantages Limited sources of finance (e. g. own funds) Unlimited liability, i.e. can lose personal assets Often has limited managerial skills No one to share workload and ideas with Partnerships A partnership is a legal relationship between two persons carrying on a profit-motivated business. 合伙企业是由两人以上组成，在合伙人之间订立合伙协议，共同出资、合伙经营、共享收益、共担风险，并对合伙企业债务承担无限连带责任的营利性组织。 Three key elements of partnership: Common ownership Shared profits and losses The right to participate in managing the operations of the business partnership Advantages Share resources / ideas Can cover for each other. e.g. during holidays More sources of finance than sole trader Partners can specialize, e.g. one may specialize in company law, another may focus on criminal law Disadvantages Usually unlimited liability Limited sources of finance Profits must be shared between partners Slower decision making than sole trader Corporations 公司 The corporation is a legal entity（法人实体）, allowed by legislation, which permits a group of people, as shareholders (for-profit companies) or members (non-profit companies), to create an organization, which can then focus on pursuing set objectives, and empowered（