国际商法英文版课件韩永红 ISBN9787566301918 PPTChapter 2 4.pptVIP

Chapter 2- 4 The Law of Business Organizations Chapter 2-4 Fundamentals of Business Organization Three major forms of business organization the sole proprietorship the partnership the corporation Six important factors in deciding form of business organization (1) ease of creation and management (2) the ability of the owner (3) continuity of operations (4) tax considerations (5) transferability and (6) the need for capital. Chapter 2 Sole Proprietorships I. What is sole proprietorship? Sole proprietorship is the simplest and oldest form of business. “a sole proprietorship refers to a business entity established under this law in the territories of China, with its capital contributed by one individual. The assets of a sole proprietorship are owned personally by the sole proprietor, who assumes unlimited liability to the extent of his personal assets.” – Sole Proprietorship Law of PRC Chapter 2 Sole Proprietorships II. Advantages and Disadvantages The proprietor receives all of the profits It is often easier and less costly to start a sole proprietorship The sole proprietorship also provides more flexibility unlimited liability – the proprietor alone bears the burden of any losses or liabilities incurred by the enterprise. lacking continuity on the death of the proprietor the proprietor’s opportunity to raise capital is limited Chapter 2 Sole Proprietorships III. Sole Proprietorships under the Law of China Sole Proprietorship Law of PRC took effect as of January 1st 2000. definition on the sole proprietorship rules on its creation, operation, dissolution and other matters related to the sole proprietorship. Chapter 2 Sole Proprietorships the sole proprietor may manage the affairs of the sole proprietorship by himself, or may appoint or hire another person with the capacity for civil act to manage the sole proprietorship The agent or employee shall p