商业英语入门chapter1.ppt

1、Forms of Business Ownership,Sole Proprietorship,An organization that is owned, and usually managed, by one person The sole proprietor is usually an active manager, working in the shop everyday.,ADVANTAGES,You can be your own boss. You can make business decisions without having to ask anyone else. Yo

2、u also get to keep the profit from the business and have the freedom to wind up your business whenever you want. It is the easiest form of business to start.,DISADVANTAGES,It is often difficult for the owner to raise capital. The owner is personally responsible for all the aspect of the business. He

3、 /She has unlimited liability. The owner must spend long hours working. It is also difficult to hire and keep high-achievement employees.,PARTNERSHIPS,A legal relationship between persons carrying on a profit-motivated business. It may be a partnership between two people, or among thirty; the law do

4、esnt set a limit on how many partners may be involved. Three key elements of any general partnership are 1. common ownership 2. share profits and losses and 3 the right to participate in managing the operations of the business.,TWO TYPES OF PARTNERSHIP,A general partnership: a business with at least

5、 one general partner who has unlimited liability for the debts of the business, A limited partnership: an arrangement where a person can contribute to a business without being involved in the affairs of the partnership.,ADVANTAGES,A partnership allows two or more people to work together and bring di

6、fferent skills and resources to the business. When two or more people pool their money and credit, it is easier to pay the rent, utilities, and other bills incurred by a business.,DISADVANTAGES,Because the partnership is not considered to be separate from its owners, the partners are personally resp

7、onsible for liabilities of the partnership. There exists division of profits. There may be disagreements among partners. It is usually difficult to terminate.,JOINT VENTURES,Joint venture is the pooling of resources and expertise by two or more business, typically from different areas or countries t

8、o achieve a particular goal. The risks and rewards of the enterprise are shared. Partnerships occur when two or more entities decide to work together in a business.,ADVANTAGES,If successful, a joint venture can offer:access to new markets and distribution networks.increased capacity.the sharing of r

9、isks with a partner.access to specialised staff and technology. A joint venture is that it isnt as final as a merger or takeover.,DISADVANTAGES,If the objectives of the venture are not 100 per cent clear, or not communicated to all the staff involves, problems are likely to arise, There is an imbala

10、nce in levels of expertise, investment or assets brought into the venture by the different partners. Different cultures and management styles result in poor integration and cooperation between the partners. The parent businesses dont provide sufficient leadership and support in the early stages.,LIM

11、ITED LIABILITY COMPANIES,a type of business ownership combining several features of corporation and partnership structures It is not a corporation or a partnership. Its owners are called members not shareholders or partners. The number of members are unlimited and may be individuals, corporations, o

12、r other LLCs.,ADVANTAGES,Limited liability Flexible profit distribution No minutes（无会议记录） Flow through taxation转移课税,DISADVANTAGES,Limited life Going public( 上市) Added complexity,CORPORATIONS,The corporation is a legal entity, allowed by legislation, which permits a group of people, as shareholders(

13、for-profit companies), to create an organization, which can then focus on pursuing set objectives, and empowered with legal rights which are usually only reserved for individuals, such as to sue and be sued, own property, hire employees or loan and borrow money. The primary advantage of a for-profit

14、 corporation is that it provides its shareholders with a right to participate in the profits( by dividends) without any personal liability because the company absorbs the entire liability of the organization.,TYPES OF CORPORATIONS,Private: attempts to earn a satisfactory profit. Public: owned and ru

15、n by the government Closed: stock held by only a few owners and not actively sold on the stock market Open: stock held by numerous people and actively sold on the stock market Municipal: cities and townships that carry out business Domestic: incorporated in one province or country and doing business

16、 within that province or country,TYPES OF CORPORATIONS,Foreign: incorporated in one province or country and doing business in another province or country Alien: incorporated in one nation and operating in another nation Non-profit: service organization incorporated for limited-liability status,NON-P

17、ROFIT CORPORATIONS,They are not profit-seeking enterprises, such as many universities and religious organizations. The not-for-profit enterprise is prohibited, by law, from distributing any earnings to owners. It exists because the founders believe that the firm provides something (e.g. help to the

18、homeless, education) of value that is not being provided well or at all by other enterprise. The not-for-profit firms provide jobs for millions of employees.,ADVANTAGES,Limited liability Skilled management team Transfer of ownership Greater capital base stability,DISADVANTAGES,Multiple taxation Diff

19、iculty and expense of starting Government involvement Lack of secrecy Lack of personal interest Credit limitation,Nature,A legal entityan artificial legal “person”With the approval of the appropriate governmental authority formation of a national bank vs. an ordinary corporation,Formation,Incorporat

20、ors (=3) apply for a charter To prepare and file the articles of incorporationIncorporators hold an organization meeting to elect the first board of directors and adopt the corporations bylaws,Formation contd,stock assets stockholdershave a voice in the control and management of the company With vot

21、ing stock vote at the annual meeting participate in the election of the board of directors,Formation contd,board of directors overall management selects officers officers implement the policies of the board of directors manage everyday affairs,Characteristics,Separate legal entity Limited liability

22、Transferability of ownership Continuity of existence Capital-raising capability Taxation Regulation and supervision,Separate Legal Entity,to run business apart from owners Stockholders receive stock certificatesownership interests are separate and distinct from the corporation,Limited Liability,The

23、liability of stockholders is limited to their equity in the corporation Distribution to shareholderslimited Board of directors formally declares a dividend to make distribution of retained earnings legal,Transferability of Ownership,Sharesroutinely transferred The corporationnotes transfers of owner

24、ship,Continuity of Existence,Stocks transferability Stockholder liquidate investment by selling it at a price negotiated with a buyer, or at the exchanges quoted market price if the stock is trade on a stock exchange,Capital-raising Capability,Characteristics of Limited liability of stockholders Sto

25、ck transferability Enhance the ability of the corporation to raise capital by issuing shares of stock,Taxation,Corporations are subject to federal income taxes on their earnings shareholders: income taxes state income taxes real estate tax personal property tax franchise tax,Regulation & Supervision

26、,State laws limit the powers a corporation may exercise Identify reports that must be filed Define the rights and liabilities of stockholders,Regulation & Supervision contd,If stock is issued to the public comply with the laws governing the sale of corporate securities If stock is listed and traded

27、on organized security exchanges various reporting and disclosure requirements,Chairman vs. CEO vs. President,Chairman Chairman of the Board Appoint CEO & President Call for board meeting Uppermost representative of shareholders Dismiss anyone except Member of the Board & Member of the Board of Super

28、visors Source of executive power, in theory Strong power vs. honorary,Chairman vs. CEO vs. President contd,President came into existence earlier than CEO with real power and social status not many shares in the modern organization similar to general manager in China,Chairman vs. CEO vs. President co

29、ntd,CEO can be used on executive officer without privilege and honor highest executive power and responsibility within some area, e.g. Band of Brothers,MERGERS &ACQUISITIONS,A merger is the result of the combination of two companies( or corporations) to form a new company. An acquisition is one comp

30、any buying the property and obligations of other company.,THREE MAJOR TYPES OF MERGERS,A horizontal merger joins firms in the same industry and allows them to diversify or expand their products A vertical merger is the joining of two firms involved in different stages of related businessesa manufact

31、urer merging with a supplier of component products, or a manufacturer merging with a distributor of its products. A potential competition merger (conglomerate) unites firms in completely unrelated industries. The primary purpose is to diversify business operations and investment.,FRANCHISES,A franch

32、ise is the right to use a business name and sell products or services, usually in a specific geographic territory,ADVANTAGES,It is a way to reduce risk and receive support from a large network. The preliminary work has been done with an infrastructure well established, a product line in place, and t

33、he marketing strategy developed. The customer bas may be set, sometimes with good name recognition. The franchiser usually provides management assistance and training and may offer financial support.,DISADVANTAGE,A franchise offers less freedom than an independent business. The franchiser often dema

34、nds a large share of the profits, referred to as royalty payments(专利权税). The reputation of one franchisee could be adversely affected by the fallings of others. Many franchisees face restrictions in the reselling of their franchises with transfer of ownership possibly requiring approval of the franc

35、hiser.,CASE STUDY: McDonalds,Brand franchising McDonalds owns or leases the site and the restaurant building. The franchisee buys the fittings, the equipment and the right to operate the franchise for twenty years. To ensure uniformity throughout the world, all franchisees must use standardized McDo

36、nalds branding, menus, design layouts and administration systems.,CASE STUDY: McDonalds,Advantages for the franchisee: Being their own boss Selling a well established, high quality product Intensive initial training Continuous support Benefit from national marketing carried out by McDonalds Forecast

37、ing,CASE STUDY: McDonalds,Advantages for the franchiser Franchises bring entrepreneurs, full of determination and ideas, into the organization. Franchising enables McDonalds to enjoy considerably faster growth and the creation of a truly global brand identity. Economies of scale Financial benefit Sc

38、ope for innovation,Business start-up,WHAT DOES IT TAKE TO BE AN ENTREPRENEUR,Trait NO. 1: seeing opportunity where others do not. Trait NO. 2: self-motivated Trait NO. 3: willing to make sacrifices Trait NO. 4: know where they are headed Trait NO. 5: arent afraid to fail,HOW TO DISCOVER A WINNING BU

39、SINESS,Examine your own skill set for business ideas. Keep up with current events and be ready to take advantage of business opportunities. Invent a new product or service. Add value to an existing product Investigate other markets. Improve an existing product or service. Get on the bandwagon.,HOW T

40、O START UP YOUR BUSINESS,Evaluating your chance for success Getting started Building a business plan Organizing your business,EVALUATING YOUR CHANCE FOR SUCCESS,Market assessment Financing assessment,GETTING STARTED,Learn from others Get some experience,BUILDING A BUSINESS A PLAN,A business plan is

41、a detailed written document that defined the goals of your business and describe the means you will use to attain those goals. The advantages the business will have in relation to competition, and resources and qualifications of the owner(s). Essential components should be included in any plan: 1. d

42、escription of the business 2. the marketing plan 3. the operations management plan.,ORGANIZING YOUR BUSINESS,Choosing a form of organization Naming your business Beginning operations Where to open your business When to open your business Buying or leasing equipment Getting licenses and permits Marke

43、ting your product or service Hiring employees,Licenses: two types, general and special. A general business license is assesses annually for the privilege of operating a business in the jurisdiction. A special license is one that is issued to a business that will provide products or services that req

44、uire regulation. Permits: stat and local government regulate the safety, structure, and appearance of the community through the use of local laws, called ordinances. Zoning ordinances, which regulate how property can be used, are a common type of ordinance. Once the jurisdiction determines that you

45、have complied with such ordinances, it will issue a permit that will enable you to operate your business.,NOW THAT YOU ARE UP AND RUNNING,Determining if you are succeeding The first step to success: in fancy The second step: survival The third step: nominal success Avoiding common pitfalls securing

46、your success Managing risk,SECURING YOUR SUCCESS,Opening all the mail yourself. Practicing computer security. Maintaining confidentiality. Using locks, alarms, and cameras.,MANAGING RISK,Once you have identified a risk, you can elect to: Prevent it by, for example, practicing good fire safety. Avoid

47、 it by, for example, subcontracting a part of your product manufacture job involving hazardous materials.spread it by, for example, backing up your computer files and keeping the copy at a separate location Absorb it by assuming that certain losses are an acceptable coast of doing business. Transfer it by sharing the risks with an insurance company.,