January/15/2023

Ruben Villarreal Rodriguez

Vancouver BC

Dear sr. Jay Lo, through out this letter I will be explaining the terminology used on the next
business meting with the “Party people” who want to collaborate with us on their expansion in
Vancouver BC.
Family-owned corporation: How it sounds like, it is a business that has been created with
members of a family and own the majority of the same. This type of business is well known
because of the influence that the members of the family posses above any outside business
partners. Depending on how the business management is, the potential threats that might come
with it are that if the shares of the business is divided by the family members but also with
outsiders, the business might loose control and the family that own the company originally might
have to loose a lot of shares and of course ownership. In this type of cases what the owner must
do is talk with their attorney explaining the situation so he can put “Clauses” on the sales so he
can have the majority of the corporation or business.
Incorporated: Is registering a business legally by registering it with the state. When you
incorporate, you will have to pay fees to make it including taxes and reports that have to be
made. Incorporation can or can not be put in a business but if not the business automatically
becomes “Sole proprietorship” which means that all the fees, taxes, debts and contracts are
handed to you, which in most cases is a down side. Advantages that come with incorporation are
that because of the legal entity, this one protects you from personal liability, which means that
rather than using your own name for contracts you can use the business name, owning assets,
earning income and incur debts.
Management contract: According to “Upcounsel” These are legal agreements that enables one
business to have control over another one’s operations. Normally the management company
takes care of them and provides the period of time that the business will have the ownership.
These types of contracts take about 2 to 5 years (Period of time) (2020). Advantages that comes
with are that the owner can focuses completely on growing their business rather than having to
manage operation tasks. Can also include other tasks like hiring, firing and recruiting. Other than
that, thanks to the management company the business owners can manage more businesses and
with them can also increase effectiveness in it.
 Marriott brand: Is an American multinational company that operates, franchises, hotel,
residential and timeshare properties. Is also the largest hotel chain in the world and posses
around 30 brands and 8000 properties. These properties are divided with Marriott and others by
agreements. For Marriott their beliefs will always stay the same such as putting people first,
integrity, embracing change and serving our world. Marriott through the years it has signed a big
number of management contracts to different hotel developers giving them the liberty to operate
them how they want to. They also use and affiliate operations agreement which includes all the
details that comes when trying to affiliate with them.
Joint venture: According to “BDC” a joint venture is when two or more businesses join together
to collaborate on a particular project. (2021). It is also a legal entity that separates from other
business interest, basically if collaboration is about making houses, the other parts of the
business are not touch, just the construction of houses. On this proses the managers of the
companies have to specify how their collaboration will work and how much of the involvement
will be divided.
Without further ado I hope that the explanation of each of the terms manage to inform you and
make you understand more about them, I will put a reference list where you can actually search
more about them and hope for them to help you.
Kind regards. R.

References
1. Family-owned corporation- https://smallbusiness.chron.com/familyowned-corporation-
81466.html
2. Incorporation- https://carta.com/blog/what-incorporated-means/#:~:text=What%20is
%20incorporation%3F,%2C%20or%20an%20S%2Dcorporation.
3. Management contract- https://www.upcounsel.com/management-contracts
4. Marriott brand- affiliate
agreement-https://www.marriott.com/marriottassets/Multimedia/PDF/Corporate/
Marriott_Affiliate_Operating_Agreement_2019.pdf
5. Joint venture-https://www.bdc.ca/en/articles-tools/entrepreneur-toolkit/templates-
business-guides/glossary/joint-venture#:~:text=Share,the%20companies'%20other
%20business%20interests.