1工商管理导论讲义-2010.9.20.docx

Lecture 1 Sett ing Up a Busin ess .Objectives and Tasks Be familiar with the major forms of bus in ess. There are four, n amely, sole proprietorship, partn ership, corporati on and fran chis ing. Know the adva ntages and disadva ntages of the differe ntforms of bus in ess. Memorize the related tech ni cal terms. . Major contents There are four major forms of bus in ess in a market economy Sole proprietorship, part nership ,corporati on and fran chis ing. 1.Sole Proprietorship ? Defini tion A sole proprietorship is a bus in ess owned and con trolled by one pers on. Advantages Simple to Establish Freer in Decisio n-Maki ng Easy to Keep Operati onal and Finan cial Secrecy Less Tax Burde n Exclusive Use of Profits Disadva ntages ☆ Un limited Liability ☆ Limited Access to Capital ☆ Limited Man agerial Expertise Part nership ? Defini tion A partnership is an association of two or more persons to carry on as co-workers of a bus in ess for profit. (By the US Uni form Partn ership Act.) Advantages Improved Access to Capital and Credit Greater Possibility for Good Man ageme nt Defi nite Legal framework Better Prospects for Growth Disadva ntages ☆ Un limited Liability In ternal Con flicts Problem of Continuity Corporati on ? General Introduction If your bus in ess keeps grow ing and n eeds huge sums of capital, you may have to choose a differe nt form. To form a corporati on, at least three in corporators are n eeded. All the in corporators are limited liabilities. A corporati on is a legal pers on. in corporators elect directorate (Board Chairma n, CEO) elect preside nt Advantages Limited Liability Easy to Expa nd Separated Own ership and Man ageme nt Con ti nu ous Life Disadva ntages Double Taxati on High Orga nizi ng Costs Lack of Secrecy A Special Form: Fran chis ing ? Defini tion Franchising is a licensing agreement, under which the franchisor grants the franchisee the right to sell or use the former ' s products, service or method in return for a royalty from the latter.