Professional Documents
Culture Documents
HOMEWORK Types of Business Form in Civil Law and Common Law
HOMEWORK Types of Business Form in Civil Law and Common Law
y l yu cu
1. How many business forms are there in the world?
2. Compare the main business forms in civil law and common law?
I.
Answer
Question I
Main business forms in the world
1. Sole Proprietorship;
2. Partnerships;
3. Corporations
4. Limited Liability Company
Number of
Owners
Liability for
Firms
Debts
Owners
Manage the
firm
Sole
Proprietorsh
ip
yes
Partnership
More than
2
Many
yes
Maybe
(they can
hire CEO
but still
hold
responsibilit
y)
yes
At least 3
founders
or general
partners,
no limit on
limited
partners
1
Founder
Yes
Limited
partner
No
Corporation
Limited
Partnership
Single
member
Limited
Liability
No
Yes
(among
their
shares in
Ownership
Change
Dissolves
Firm
yes
Taxation
yes
Personal
No, hire
officers to
manage
Yes
no
Double
Yes
Personal
No
No
no
no
Income tax
License
tax
Personal
Company
Limited
Liability
Company
with more
than two
member
II.
Unlimited
company)
Yes
( among
their
shares in
company)
No ( they
can hire
someone
else)
No
Double
Question II
1. Some definitions:
a. Civil Law states: Germany, Vietnam, Japan
b. Common Law: England, British Common Wealth countries and the United
States
2. Comparison
a. Comments:
-
Common Law have more business forms and more specific description to each
types
enterprise
Partnership: a company of two or more
No right to vote
No right to be in BOD
No legal representatives
Silent Partnership:
Secret partnership:
personal liability.
Partnership limited by shares: a company of
personal liability
is taxed as a corporation
Common law limited liability company: An
unincorporated association that is treated as a
partnership for tax purposes ans that provides
limited liability for its owners
Business trust: a business arrangement in
which the owners of a property, known as
beneficiaries, transfer legal title to that property
to a trustee who then manages it for them. tHe
the public
Limited Liability company: a corporation
Advantage:
III.
Additional examples
Corporation
Limited company
Unlimited company
Limited partnership
Not-for-profit corporation
Partnership
Sole Proprietorship
England: