Export Project – Legal Assignments 2009/2010
Law Assignment 1: the Multinational Enterprise
Table of Cotents
1. Investigate the different business forms available for worldwide expansion. 3
2. Which differences do you encounter in the business forms in civil law states and in common law states? In which way could this have an effect on your specific choice? 4
4. Describe the most common company form used by foreign investors in Saudi Arabia and explain why this is the case. 6
5. In some countries foreign ownership is limited to a certain percentage or certain industries. Explain why this is using the example of Mexico. 7
6. Look at the LVMH company website critically. Give two remarks 8
7. Sources 8
31. Investigate the different business forms available for worldwide expansion.
The different type of business forms are:
Sole proprietorship: characterized by its full liability of a single individual as owner. This owner is fully liable for all of the businesses debts and obligations, as a matter of fact creditors can and will look at the person’s personal accounts and assets.
Partnership: this type is business form is formed by two or more owners that venture together for the sake of profit. There are 3 basic sub forms, namely general partnerships, limited partnerships and limited liability partnerships.
General partnership is the most common type and it basically states that all owners are personally responsible and liable for all the company’s debts and obligations.
Limited partnership separates partners into two categories, where in one the partners are thrown to the lions and in the other the partners can stay behind the fences. These are called general partners; those that invest, participate in the management of the business, and are fully liable for the debts of the business, and limited partners that basically only invest and will not mingle any further in the management and responsibilities of the...