2009新商贸英语课件2.pptVIP

Choices of Business Organizations Sole Proprietorship Definition Sole owner of a business which has no partners and no shareholders. The proprietor is personally liable for all the firms obligations. Sole Proprietorship Features The proprietor has sole management authority All his business income is taxed as his personal income It dissolves upon his death A sole proprietor has unlimited legal liability for all business obligations, and this liability extends to both business assets and personal assets. A General Partnership Definition Business owned by two or more persons who are personally responsible for all its liabilities. A General Partnership Features In its simplest form, it is a sole proprietorship of two or more persons It is created by the agreement of the parties Each partner has unlimited liability for all business obligations and this liability extends to both partnership assets and their personal assets All partners have the right to participate in the management of the business and receive their share of partnership income Each partner is taxed individually on his share of partnership income A Limited Partnership It consists of at least one general partner and one or more limited partners The general partner has unlimited liability for all business obligations The liability of each limited partner is “limited” to the amount of capital he has contributed to the business General Corporation Definition Business owned by stockholders who are not personally liable for the business’s liabilities. General Corporation Features Shareholders have limited liability for business obligations The only risk a shareholder faces is the loss of the capital invested in the business It also offers an easy transfer of the shareholders stake to outside investors or to their heirs Advantages of Corporation Owners personal assets are protected from business debt and liability Corporations have unlimited life extending beyond the illness or death of the own