郭日僑
刑事頭在
中民八轨赫 去案郭年建
在
年三月三十一日、四月一日、五日及七日上午
城巴至十分鐘一
而退敎近歌連臣角道的石澳道交通擠塞。警方... 下列道路將於一九九一年四月五日上午七
四期星
日八廿月三{一九九一)年十八國民蔡中
新資
新發行的債券總額升至六億五千萬美元。 作,噴射氣流客機將設置十二個行政式乘 《無比石油(MCB )宣佈其聯營之誤一客座位,並附加行政級機艙設施。龍將
Long-AB Umup 行發行五億五千萬美元債券,該公司中 迎合在未經銷好的跑道及高溫圍繞中運 「菲力石油(P)再向證監愬申請自一架噴射氣流超級卅一型客糍,爲了特別
俄。蒻兩項設備粱完畢後,預定明年十 延設-向三菱重工業探琳連續鑄造 一月開工。
審判於四月十五日開始宀可能推遲),我們仍認爲先影將佔優勢,可現 ・通對先鋒路爲有利,但主要案件是處理役淝み利機
劉致訓稅對會回實說勉有加, 容、林紫、馮國榮、樂、錦文、現。
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炳發硬、聘書後 - 並由會長郭油、西·仕廷、陳菜、盧院 「滿抱佳人」粘着一
EXÕE - BRAKAKE- FSCDEKEIH- || 點二五元和三點七五元,畫是由於不動產儲備金提高與及神費者佰代 大通銀行(CMB]九一年和九二年由估三點九五元及四元成爲
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Ietetedeira" | HZINK=ZYŁ
1991 中學會考預習專欄
明德出版社
MILL & DALE PRESS
Commerce (26)
Forms of Business Enterprises
3. Joint Stock Company
3.4 Advantages and Disadvantages of Joint Stock Company
S.K. LAT
3.4.1 Advantages and disadvantages of private limited companies
They are summarised as follows:..
Advantages
a. Limited liability
Shareholders' personal assets are not at risk if the company goes bankrupt..
b. Perpetual continuity
Since it has a separate legal existence, the company continues to exist, independent of its key directors or members.
c. Ability to raise capital
It is much easier to raise capital than in partnership, since the company with its limited liability is able to attract capital from investors.
d. Limited transferability
of shares
Control over transfer of
shares may be stipulated in Articles of Association; thus
outsiders have difficulty in securing control over business by buying large amounts of shares.
e. Higher economies of scale Specialised management and large scale operation has contributed to yield significant economies.
Disadvantages
a. Public inspection
The company'sle. audited annual voce, have to be availablis
inspection by members of the public:
b. No nogal public for
fund
The init Foeraise capital is lifted since the company is restricted to offer shares for public subscription.
c. Conflict of interests
The short-term interests of shareholders are profitability of company; white de interests of Board Qirectors may be long-term growth of business. Thus, conflict may ex
d. Insuffig int personal
touch
To keep good and close
tie with oyees, and customers is difficult to achieve.
4. Co-operative Society
A co-operative society is another form of business unit, which is a self-government and independent body. It is run for the benefit of the society's members. Co-operatives are formed by groups of persons of a particular industry.
The four main kinds of co-operative societies include:
a. producers co-operative,
b. retail co-operative,
c. workers! co-operative, and
d. financial co-operative.
The general characteristics of a co-operative society are:
a. the society is a non-profit-making organization,
b. the society is a self-government and independent unit,
c. the members are its own customers and owfiers of society,
d. a committee, elected by members, has exercised direct control
over the society,
e.. the surplus funds are either used to be distributed to
members as dividends, or set aside for future large project. f. each society deals in daily goods,
g. the society buys in bulk and sells them into smaller quantity
to members,
h. the society has a centuous existence, independent of its
members,
thetety may ofte large lower compared witheesh of its rival operative scoretic should
of Ari ture and Fisheries.
III. Types of Public Business Enterprises.
Beir members sher market,
the Directori
There are two main types of public business enterprises: a. public enterprise, and
b. public control.
1. Public Enterprises
are
Public enterprises are another form of business units, which are owned, controlled and operated by the government. They
to provide services 2100
that private enterprises unwilling to supply. The provision of law and order, defence and some other. social services is under the control of Hong Kong government. The following social services are run by government departments:
a. medical care (hospitals),
b. education
c. housing
(schools).
(public estate),
d. transport (roads, tunnel),
e. water supplies or postal services, etc.
However, it is the practice of Hong Kong government policy
to intervene as little as possible in the operation of the business economy.
1.1 Public Corporation
The Hong Kong government also provides public services through the public corporation.
The main features of a public corporation are follows:
a. it is established by legislation,
b. it is not a government department,
IV.
Reasons for different kinds of business units
There are many different kinds of business units in the business economy. Its possible reasons are described below: a. Different types of business ownership are catered for varying kinds of business. When we go to start trading, we will decide to adopt the form of business ownership which has the least disadvantages and the most advantages. b. The
the
accounting and law professions always use partnership form of business. The partners having different expertise can contribute to specialization of management. c. The sole proprietorship has been the most popular form of
business ownership. It is due to the following factors:
the initial setting up cost is small,
i.
ii. the ease of entry and formation,
iii. the one-man owner work for his own profit, and
iv.
the business affairs and decisions are under his own control.
d. Joint stock. companies are catered for firms which involve in large scale of production. Thses companies can raise the capital funds more easily.
e. The public services, such as housing, transport, water, and education, are best provided by the government. Public enterprises make the best use of economic resources. The provision of these services requires huge sums of initial setting up capital, the private enterprises are not willing to take on these risky projects.
f. Co-operative societies exist to promote the welfare of
members of non-profiting-making organizations.
As a conclusion, each kind of business ownership has its unique dvantages and disadvantages. The best form of business ownership depends on the individual situation.
Recent Trends: Companies privatization and re-domiciling
quignantes privatization
st 13 instructive when we look at the number of listings on the unified Stock Exchange. Only one company applied for delisting in 1986 and 1987. There had been three successful privatizations in 1988. The trend continued to rise from three to nine companies being. privatized in 1989. In 1990 three companies successfully sought to be privatized and several companies are stili. aflog for privatization.
the process of privatization, the controlling takeholders are going to buy out minority interests. What dre Tas underlying reasons? The possible reasons are:
Bare has been declining confidence in the future" economy of Hong Kong as 1997 comes. The effect of delisting from the unified Stock Exchange by privatization is regarded. "Es a vote of confidence crisis.
there has been the introduction of a tighter regulatory regime over the surveilance of standard of listing on the Stock Exchange. c. in view of the price-to-earning ratios in the world financial market, Hong Kong has been one of the most attractive regions to make investment. Moreover, in the years of depressed market, it provides the best buying opportunities for them to buy back their own stock...
LIBR
A
KONG PUBLIC
it has a separate legal entity ind
3.4.2 Advantages and disadvantages of public limited companies
Bath of them are summarised below:
Advantages
a. Limited liability
Shareholder's liability
is limited to the fully
paid price of shares.
having limited liability, the company is able to attract more capital from investors.
b. Appeal to public for fund It is allowed to offer shares for public sales. The ability to raise capital is increased.
c. Transferability of shares Transfer of shares is not restricted. Shares can be bought and sold freely in the stock marke".
d. Specialisation of
management
The company has sufficient resources to instal specialised equipment and recruit qualified personnel. These promote the productivity of the company.
e. Perpetual succession
Having separate legal entity, the company continues to exist, independent of its key directors or shareholders.
f. Economies of scute
Large size, mass production, specialised management, and bulk
buying enable the company to yield significant economies.
g. Ease of borrowing
capability
Disadvantages
a. Complex formalities
It is costly in time and money to form the company. Documents and records have to be submitted to Companies Registry.
b. Public Inspection
Detailed reports, audited annual accounts and
information file have to be available for public inspection.
c. Possibility of take-over
bid
Ease of share transfer facilitates the take-over if another company yields 51% of the voting shares. The company may exercise little control over its ownership.
d. Divorce of ownership from
management
Management is divorced from ownership. The interests of shareholders and Board of Directors may be quite different.
e. Bureaucracy and slower
decision making
The company may become too complex for efficient running, decision-making could be less rapid.
f. Conformity in strict
legal regulations
control,
e. it is the police government to intervene as little as possible in the day-to-day operation and workings of the corporation; however, the general policy is stipulated by the government,
f. it is self-financing; however, the initial setting up
costs are finances by the government,
g. the corporation may sue and be sued in its own name, h. it is usually non-profit-making body; however, any arising surplus may be used to repay any loans. or to finance future large projects,
i. the source of capital is from taxation or loans.
backed by government.
Examples of public corporation include: the Kowloon- Canton Railway Corporation and the Mass Transit Railway Corporation.
2. Public Control
To protect the interests of the public, policies are laid down by the government to influence or control private enterprises, and may be revised from time to time by the government. Public control is the means of government interference in the business economy. Government franchises or licences are granted to private enterprises that provide vital public services. The main public-control private enterprises in Hong Kong include:
a. transport industry
Three franchised bus companies are: The China Motor bus company Limited, The Kowloon Motor Bus Company Limited, The New Lantao Bus Company Limited.
b. public utilities industry
Examples are:
The Hong Kong Electric company Limited, The Light and Power Company Limited.
c. telecommunications industry
Examples are:
The Cable and Wireless (Hong Kony) Limited, The Hong Kong Telephone Company Limited.
licence, exclusive rights, with its Under the franchise or specified legal Hire and business areas, are entrusted to certain private enterprises to run their business.
Advisory committees are set up by the government to control; the standard of the services provided by the franchised companies and to assess the granting of price increases.
IV. Factors that affect the choice of different types of business
ownership
The influential factors that may determine the choice of form
of business ownership are listed below:
a. the amount of capital to be available,
b. the need for stability and continuity of ownership,
c. the extent of managing control to be retained,
d. the degree of divorce of management from ownership.
e. the ease of capital-raising ability..
the degree of secrecy or privacy of business information and
audited accounts, and
g. the tax liability.
2. Companies re-domiciling
A total of 61 companies listed in Hong Kong had moved their headquarters abroad by the end of 1990. It constituted 11% of the territory's total market capitalisation. However, the Financial Secretary had insisted that any government action to prevent local companies domiciling elsewhere would damage Hong Kong's status as a free international financial centre.
from
re-
Companies domiciling have far reaching negative effects on the public's confidence towards the future economy of Hong Kong. In what ways do the government take steps to lessen the negative effects of the companies switching domicile? The possible actions include:
a. the government would encourage local companies to stay by emphasising Hong Kong's attractive investment opportunities and business environment.
b. the government would take steps to protect interests of
shareholders in the re-domiciled companies by introducing. a tighter regulatory regime in the standards of listing on the stock exchange. c. the overseas-incorporated companies continued to be subject to Hong Kong securities regulations so as to protect the interests of investors in the Hong Kong market.
VII. Self-assessment question
1. Explain why the sole proprietorship is most suitable for
small bustness.
2. Distinguish between a Memorandum of Association, and the
Articles of Association of a limited company.
3. Compare and contrast the main characteristics of a public limited company with those of a private limited company in Hong Kong.
4. State the main features of a public corporation with
reference to the Mass Transit Railway Corporation.
5. State the main features of A consumers' co-operative
society.
6. What are the influentital factors that will determine the
form of business ownership?
7. Why is partnership most suitable for the accounting
profession?
8. Distinguish between a public limited company and a general
partnership with reference to:
(a) transfer of shares.
(b) divorce of management from ownership,
(c) number of member's, and
(d) liability of members.
9. Describe the reasons
business units.
for
the different kinds of
END