Franchise
Give 5 examples of a franchise business.
KFC, McDonalds, Burger King, Subway, Hilton, Dairy Queen, Sams Club, Walmart, Starbucks, PizzaHuts, Papa John's, etc...
List four things that two businesses can share with each other when they have a joint venture.
Risks
Costs
Expertise and experience in their own field
Market and product knowledge
Legal Identity:
In which company, the owners and the company have the same legal identity? In which company, the legal identity is separate? What does that mean?
Unincorporated Companies - same identity, meaning, the owners as well as the companies will be sued if products went wrong and harm people.
Incorporated companies - separate legal identities, meaning only companies, not the owners(shareholders) are responsible for the damage or loss.
Public Corporations are owned and controlled by who?
By the state/government.
Why do entrepreneurs decide to come to a franchise agreement and become a franchisee?
2. Less risk of failure
3. Training provided by the headquarters
4. Quality guaranteed
List two reasons that why some businesses would never get into a joint venture.
1. Reputation damage affecting all the firms in the joint venture(one bad, all bad)
2. Different cultures, different styles, leading to fight
Debt Liabilities
In which company, shareholders(owners) have limited responsibilities for the debts?
Limited company, AKA incorporated company
Where does their finance come from?
From the tax that citizens pay.
Congrats! Get the points by no effort!
:-)
Congrats! You are lucky that you chose this question! The only thing you need to do is, to the whole class, brief the joint venture story of either Sony and Ericsson OR Land Rover and Chery
Can get the points if someone from the group is able to brief the story.
Raising Finance
It's easier for which company to raise finance and why?
Incorporated company
Some examples of public corporations from your country?
BBC, China Post