chapter1.2精选.ppt

Review Sole proprietorship owned and managed by one person enjoy all the profitsresponsible for all the debts. Unlimited liability personally liable for the debtsIf he goes bankrupt, he may lose his personal properties Partnership Partnership ---- Ⅰ Definition An association of two or more persons to carry on as co-owners of a business for profit. 由两个或两个以上的人组成的、以共同所有者身份经营的、以盈利为目的组织。 Partnership ---- ⅡTwo types of partners General partners 普通合伙人 very active in the management ,take unlimited liability, at least one in each partnership. 积极参与公司管理，承担无限责任,每个合伙企业里至少有一名。 Limited partners 有限合伙人stay away from management , assume limited liability. 远离公司管理，承担有限责任。 Partnership ---- Ⅲ comparison with sole proprietorship Similarity Differences Similarity Unlimited liability Same in essence Differences Street corner grocery stores Florists Restaurants Beauty saloons Law firms Dental clinics Accounting firms Advertising firms The same weakpoint ----unlimited liability Resolution---- Forming a corporation Corporation Corporation----Ⅰstructure Corporation----Ⅱstatus The backbone of modern economies. account for only 20% of all firms contribute nearly 90% of all sales revenues provide jobs for about 70% of all Corporation----Ⅲ advantages Limited liability Easy to expand Separated ownership and management Continuous life Conclusion: overcome most of the weakpoint of the above forms. Limited liability not personally liable for the debts. If the corporation is sued, only the corporations assets are at risk. The assets of the board members or CEO are usually safe. Easy to expand Bonds or stock shares can be issued to the public. Bank loans can be got for huge assets as collateral. Which form can raise more capital? Separated ownership and management Owners—shareholders Managers—hired professional managers with expertise in marketing, producing, law. The management is more efficient. Continuous life The ownership of a corporation is in the form of its