Lecture 2
Forms of Business Organizations
Sole Proprietorship
usually operated by one person features advantages disadvantages
Partnership
Two or more owners, maximum 20. General partner: running and legally liable for the debts of business. Limited partner: contributed money or capital only. Advantages Disadvantages
Corporations
A legal entity separated from owners. Limited liability Private companies Listed companies Advantages Disadvantages
Small Business in Hong Kong
SME (Small & Medium Enterprises) Definition: Enterprises engaging less than 100 persons in the manufacturing sector and less than 50 persons in the other sectors.
Organizations that help SME
Trade Development Council Hong Kong Productivity Council HK Chamber of Small & Medium Business
Small Business
Importance of small business Popular forms of small business Reasons for success Reasons for failure Starting and operation the small business
Franchising
Franchisee: the buyer Franchiser: the seller Advantages Disadvantages
Homework
Visit the following websites: www.tdctrade.com/sme/ www.smecentre.com Read Ch.3