"Forms of Business Organizations"
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