合肥工业大学财务管理原理双语课件Chapter2 The business,tax,and financial environments.ppt

chapter 2 Chapter 2: The business, tax, and financial environments Study objects: The business environment The tax environment The financial environment The capital market What does it mean? Corporation, n. an ingenious device for obtaining individual profit without individual responsibilityAmbrose Bierce, The Devil’s Dictionary The Business Environment There are four basic forms of business organization: sole proprietorships (one owner), partnerships (general and limited), corporations, and limited liability companies (LLCs) Sole proprietorships outnumber the others combined by over 2 to 1, but corporations rank first by far when measured by sales, assets, profits, and contribution to national income Why shall we know the form of business organization? Financial decision rights Risk Different legal status Different capital market positions All these will have different impact on business FM Sole proprietorships The sole proprietorship is the oldest form of business organization. As the title suggests, a single person owns the business, holds the title to all its assets, and is personally responsible for all of its debts. The advantage of a proprietorship Pays no separate income tax Easily formed No separate of ownership and management, so little agency cost The disadvantage of a proprietorship Unlimited liabilities for its owners, so more risky Difficult in raising capital (small in scale, and this gives the investors bad impression). In China, most national banks rank private business as the last one, this is why some private businesses grow so slowly Difficult in transfer ownership (risk to its owner) Limited life (stakeholders will not try his best to cooperation) 6年锐减810万个体户背后 第一财经日报,王石川 国家工商总局的数据表明，1999年我国实有个体工商户3160万户，到了2004年，这一数字下降为2350万户，6年间净“缩水”810万户，平均每年减少135万户。国家工商总局的另一组数据显示，截至2005年底，全国内资企业实有350万户，比上年净减少30.1万户，下降7.9%。 为什么6年锐减810万个体户？ “国内私企平均寿命只有2.9岁” 中央党校研究室副主任周天勇：以下是抑制创业活力的关键因素。 沉重的税费负担 缺位的创业服务 困难的融资环境 Partnerships A partnership exists when two or