Answer:
Advantages of corporate enterprises: infinity. Equity may be transferred. Limited liability. It is because of these three advantages that firms are more likely to raise capital in capital markets. The limited liability of the company for debt and its unlimited existence reduce the risk to investors; the ease of the transfer of shares increases the liquidity of the investor's assets. Correspondingly, companies have relative constraints: double taxation. Cost of formation. There is a question of representation。
Advantages:
(1) infinity: a company may continue to exist after the withdrawal of the original owner and operator。
(2) limited liability regime: corporate debt is a legal person's debt and not an owner's debt, and the liability of the owner is limited to the amount of its contribution。
(3) equities facilitate transfer
Disadvantages:
(1) double taxation: as an independent legal person, the profits of a company are subject to the income tax of the enterprise and, when profits are allocated to the shareholders, the shareholders are subject to personal income tax。
(2) the costs of formation are high: company law requires the establishment of a company more than the establishment of a sole or joint venture and requires various reports。
(3) there is a question of agency: when the operator is separated from the owner, the operator is called the agent, the owner is called the client, and the agent may harm the client's interests for his own benefit。
A corporate enterprise is an economic organization established, self-employed, self-supporting, corporate and funded by an investor (or shareholders) who has a quorum above the legal level. Our current corporate enterprises are in the form of limited liability companies and limited companies。
The company is a corporate legal person, has independent legal property and enjoys the property rights of legal persons. The company is liable for its debts with all its property。
The shareholders of the limited liability company are liable to the company for the contributions they have made; the shareholders of the limited liability company are liable to the company for the shares they have subscribed to。
Corporate law denied personality
Corporate creditors should be jointly and severally liable for corporate debt when shareholders abuse the corporate independence of the company and the limited liability of shareholders, avoid debt and seriously harm the interests of their creditors。
Advantages and disadvantages of partnerships
Strengths
Increased sources of finance to enable enterprises to scale up and develop production
Multiple property owners facilitate integration to leverage partner resource advantages
The partners worked together
Disadvantages
The partners have unlimited liability for the debt and are at greater risk
Lack of effective control mechanisms between partners, which may result in hitchhiking
Disagreements among partners entail significant organizational coordination costs and reduce the efficiency of decision-making
A partner's withdrawal affects the survival and longevity of the enterprise
Overview of partnerships:
The partnership is a joint venture of two or more financiers. It is not fundamentally different from an proprietary enterprise in terms of its basic characteristics. As in the case of proprietors, the partnership has no legal personality and the partner is the civil subject and has unlimited liability for the enterprise's debt. In a partnership, the enterprise is jointly owned and managed by the financier and shares the surplus or loss of the enterprise, with unlimited liability for the enterprise's debt。
Conditions for establishment of partnerships
1. There are two or more partners, all of whom have unlimited liability under the law。
This is a requirement for the number of partners and for the terms of the partners, and a person who cannot by law assume unlimited liability cannot be a partner。
2. There is a written partnership agreement。
3. Funds actually paid by the partners。
The partner may be financed in money, in kind, land use, intellectual property or other property rights; the property to be financed shall be the legal property and property rights of the partner;
The partners may also be financed by labour by consensus of the partners, and the assessment of funding needs other than currency may be determined by agreement of the partners or entrusted to the evaluation body。
4. Name of the partnership. However, limited or limited liability should not be used in the name。
5. Have a place of business and the necessary conditions for a partnership。
Getting to know the company's relevant knowledge points and suggest the following clicks
Concept and type of company
Conditions for establishment of limited liability companies
Effectiveness of corporate resolutions
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