Some of these cookies are essential to the operation of the site,
while others help to improve your experience by providing insights into how the site is being used.
English to Chinese: financial lessons Detailed field: Finance (general)
Source text - English Lesson 8
Business Ownership and Planning投资商业企业和计划
As a financial advisor, your clients probably will include small and/or closely held business owners. The business-owner client is much sought after by the professional advisor, as this client usually has a considerable amount of discretionary income available for financial planning and investment opportunities. This lesson acquaints you with the various forms of business entities, as well as with the unique characteristics of the closely held business, a business that is not publicly traded. More often than not, the closely held business is intended to remain within the business owner's family after his or her retirement or death. At the end of this lesson, you will appreciate the unique characteristics of a closely held business, and you will understand some operational and succession concerns associated with such a business.
State a form of available business entity
Identify a characteristic of a type of business entity
Describe the unique factors involved in the context of closely held and/or family business planning
Analyze a given situation to select the most appropriate form of business entity for a given client
Identify an aspect of financing or operating the closely held business
Explain a common technique used in the disposition of the closely held business
Closely held business planning begins with the selection of the appropriate business form or entity. Among these forms are the sole proprietorship, the partnership, the regular or C corporation, the S corporation, and a relatively new form of doing business created by state statute, the limited liability company (LLC). It is important to understand each of these forms of business, including the non-tax and tax characteristics associated with their use.
The next phase of planning for the business owner involves the consideration of the ongoing operational issues inherent in running and growing the business. At the top of this list is finding both the capital and human resources necessary to operate the business as a going concern. Finally, there comes a time in the life of any business (particularly in the family or closely held business) that succession of ownership becomes critical. Such succession may result in a continuation of family ownership, sale to an outsider, or in some cases, liquidation of the business. This lesson concisely addresses all three of these phases in the life of a business.
Considerations in Advising the Closely Held Business Owner
Many businesses in the United States today are small, closely held concerns. From the standpoint of a financial advisor, they all share certain characteristics that make them different from the better-known and better publicized larger corporations.
Some Characteristics of Closely Held Businesses
The closely held business tends to have a small number of owners and, in many instances, these owners are also family members.
This business typically has no identifiable market. As such, valuation of the owner's (and others') interest in the business is quite difficult to ascertain.
Due to the limited marketability of a business interest (and also the lack of control if the client is a minority owner), sizeable discounts, known as fractional interest discounts, may be applied for estate planning purposes in valuing such a business. .
One of the most popular forms of conducting a closely held business today is the S corporation that allows for the limited liability of shareholders/owners but also permits so-called flow-through tax treatment. This "flow-through" of tax attributes to the shareholder/owner is important since deductibility of losses against taxable income is possible and initial business losses are very common in start-up businesses of any type. Another form of entity that is becoming more and more popular for start-up businesses is the limited liability company (LLC). This is particularly the case for those businesses involved in the service sector of the economy.
The double taxation of corporations (first at the corporate level and second at the shareholder level after a dividend is declared) is avoided with the selection of a flow-through form of taxable entity. As noted, most closely held businesses want to be taxed as flow-through entities. This is particularly the case since the "check-the-box" tax regulations became effective on January 1, 1997: Unincorporated businesses affirmatively elect either flow-through or corporate tax treatment merely by checking a box.
Most owners of closely held businesses are involved in the daily management of those businesses in contrast to a shareholder/investor in a large publicly traded business.
Finally, the owner of a closely held business necessarily has to coordinate business planning with his or her own financial and estate planning. It is therefore difficult, if not impossible, to separate the business from its owner.
In addition to knowing these common characteristics of the closely held business, it is also important to understand those personality characteristics that set the closely held owner apart from the majority of employees today. These characteristics serve the owner well in building a business, but can also make planning for succession of the business exceedingly difficult.
Some Characteristics of Closely Held Business Owners
A domineering personality. Most closely held business owners have strong personalities and insist on remaining in control.
Self-worth tied to position within the business. A business owner's self-esteem is often tied to being in charge. So he or she may find it difficult to envision the day when the business may have outgrown its founder or be in need of "new blood."
The lack of independent financial resources. The business often represents the majority of the owner's wealth. As most closely held businesses lack both marketability and liquidity, cash flow and estate planning become very challenging.
An immortality complex. Most owners believe that they can, and should, remain in charge of the business for years to come.
An inability to appreciate growing problems within the business. An owner's inability to perceive problems may cause the business to decline rapidly and steadily before corrective action is taken. Even then, this action may come too late to save the operations of the business.
When engaging in succession planning -- planning for the ongoing life of the business after owners/key business members retire or die -- one should also take these characteristics into account. It is often difficult for business owners to address succession issues. Therefore, the more proactive you can be in this area -- in terms of listening, getting the client to listen, and making recommendations that are heeded -- the more helpful you can be to your client and to his or her overall success.
Formation of the Business
The first and most important decision to be made when advising a closely held business owner is the selection of an appropriate business form or entity type. A brief outline of the types of available business entities follows.
1 Sole Proprietorship
The majority of closely held businesses operated by one individual take this form. No formal organizational documents or annual registrations are required. The sole proprietor has unlimited liability for obligations of the business with all profits and losses flowing through directly to the owner for tax purposes.
At least two individuals must form the partnership entity and each must have a business purpose. It is advisable, though not mandatory, that a written agreement between the partners specifies the rights and responsibilities of each. The partners of a general partnership are jointly and severally liable for the obligations of the partnership. The entity is a flow-through entity for tax purposes, with all income directly taxable to the individual partners.
This form of partnership is defined by state law and must include at least one general partner and one limited partner. The general partner has unlimited personal liability for the obligations of the partnership, while the liability of the limited partner typically is restricted to only his or her investment in the partnership. In return for this limited liability, however, limited partners cannot take part in the active management of the partnership. Unlike the general partnership, a written partnership agreement is required in the limited partnership entity. This business form is frequently used as a means of raising investor capital and is the form of choice for real estate syndicates where proportional losses, if any, may be passed through to the limited partners.
Limited Liability Partnerships (LLPs)
These may be formed in some states under new laws that permit general partners to limit their personal liability for some partnership obligations. In these states, general partners in an LLP are not liable for the acts or omissions of other partners. This form is a favorite of large public accounting firms that wish to limit the liability of their general partners. An LLP must register as such under applicable state law.
Regular or C Corporations
These entities, established under state corporation laws, are referred to as C corporations because they are taxable under Subchapter C of the Internal Revenue Code. They are separate taxable entities with their own tax rates and therefore do not permit flow-through treatment to the shareholder/owners. There is a double taxation event on corporate income -- once at corporate tax rates, and a second time to the shareholder upon payment of a declared dividend. While limited liability is a feature, because of the double tax consequence, most small businesses are not regular or C corporations.
This kind of corporation is a regular corporation under state law that meets certain qualifications under federal tax law and elects not to be taxed as a corporation, which permits flow-through treatment to the shareholder. Also, an unincorporated association that is taxed as a corporation for federal income tax purposes may elect S corporation status. Of all the business entities, the S corporation is unique because its status as an S corporation is determined under federal tax law while it is incorporated under state law. In most respects, the corporation is taxed as a partnership. Stockholders of S corporations are taxed on the net profits of the corporation even if they do not receive taxable dividends. Currently, an S corporation may have no more than 75 shareholders with only one class of stock allowable under law.
Limited Liability Companies (LLCs)
This form of business is also a creation of the states; all 50 states and the District of Columbia now permit such a form. The LLC combines the advantages of the limited liability of corporations with the flow-through tax treatment of partnerships. Persons who have ownership interests in an LLC are referred to as "members." LLCs can also have non-owner "managers," who manage the affairs of a business. Therefore, the entity may be member-managed or manager-managed; however, the former's interest is proportionately worth more because of his or her right of control and participation in business decisions. Given that LLC statutes offer business owners the terrific combination of a single-owner level tax on business income plus limited liability for business debt, it is no surprise that the LLC is the fastest growing type of business entity today.
Family Limited Partnership (FLP)
This form is established and operates like any limited partnership except that, as the name implies, the partnership exists between family members. The entity is primarily used for estate planning purposes to permit gifting of limited partnership interests in a family business at a substantial valuation discount. The general partner in the FLP is typically the parent who manages the business and contributes property to the partnership in exchange for a partnership interest. He or she then makes gifts of limited partnership interests to children, grandchildren, or other family members.
Although nearly all business forms will fall into the standard categories of a C corporation, S corporation, partnership, or LLC, there is also a business trust entity known as a Delaware trust or Massachusetts business trust. This type of entity permits the use of a trust as a form of business. While trusts normally have beneficiaries and owners (or grantors), the Massachusetts business trust form is established such that units are owned by individuals and are separately transferable. This trust also provides limited liability to the beneficiaries or unit holders. This type of trust is taxed as a corporation.
A final type of entity that is available is a tax-exempt business under Section 501 of the Internal Revenue Code. These entities are usually public charities or private foundations. They enjoy exemption from taxation except on income that is deemed unrelated business taxable income (UBTI). Unrelated business taxable income is income of an exempt organization that competes with other taxable operating businesses. For example, income derived from real estate rentals that may be owned and operated by the tax-exempt organization typically constitute UBTI. A separate (and lengthy) process is involved to achieve tax-exempt status with the IRS, and, once achieved, the operations of the entity must be managed carefully so as not to violate the tax-exempt purpose.
Operation of the Business
Most closely held businesses face financing problems -- sometimes on a daily basis. Because managers of the business may not have skills in this area, advisors may be especially helpful in identifying cash flow problems and recommending solutions. As the business grows, its financing needs may change. Typically, in the early years of operation, a business will rely on debt to finance its operations, primarily because the interest paid on this debt is tax-deductible. As such, the effective cost of borrowing funds may be much lower than the stated interest rate on the debt. In addition, closely held business owners typically do not want the to bring in additional equity shareholds because of the inherent obligations inherent and the dilution effect experienced.
Financing needs may sometimes be managed by improving business operations. For example, better inventory control can drastically improve the cash flow of a business. Similarly, stricter controls over accounts payable and receivable may minimize financing needs. Large companies regularly extend their trade payables by delaying payments to cooperative vendors, thus allowing the company use of the funds for an extra few days. Finally, basic strategies, such as scrutinizing collection activities, may be used to reduce the need for external borrowing. Advisors should carefully analyze company financial statements for additional means of maximizing cash flow.
Disposition of the Business
The disposition of a closely held business is an exceedingly complicated, yet fascinating, subject that cannot be detailed in these few pages. Most of the time, deciding which technique to use in disposing of the business revolves around tax considerations. However, a number of non-tax issues also need to be resolved. Generally, the advisor assists the business owner in answering these four questions:
1. Should the business be sold at all or should it be kept within the current closely held context, usually meaning family control?
2. If the business is to be sold, who are its potential buyers?
3. If the business is kept, who should have ownership and control?
4. If the business is kept, who will manage it?
It is only after answering these questions (and remember that these may be difficult answers to obtain given the profile of the closely held business owner) that transfer techniques can be selected.
Disposition or transfer techniques involving a closely held business are many and varied, but primarily break down into those involving either a sale or some form of lifetime gifting. Some of these forms of transfer are briefly mentioned in the following discussion; more detailed coverage is best reserved for an estate planning or trusts and estates course.
Sale transactions usually involve the sale of stock or the purchase of assets. Generally, a potential buyer will prefer an asset purchase, since the liabilities of the business inherent in a stock sale are not included. In addition, the buyer may take advantage of tax deductions in the form of depreciation and amortization of purchased goodwill. Such transactions can be structured in a variety of ways, including:
An outright sale for cash
Traditional installment sales over time
Self-canceling installment notes (SCINs)
Each of these techniques has its own advantages and disadvantages, but all are subject to income tax treatment and need to be analyzed carefully by the advisor.
Gift transactions, on the other hand, do not result in immediate income taxation to the recipient of the gift. Rather, gifts are subject to the unified transfer tax system, which includes both gift and estate taxation. Such gifts may be either outright or arranged as gifts in trust.
Other gifting techniques include:
A systematic annual gifting of a business interest, taking advantage of the annual $10,000 per donee gift-exclusion ($11,000 as indexed for the year 2003)
A family limited partnership (or FLP)
The use of a charitable remainder trust
The Buy/Sell Agreement
Buy/sell agreements are agreements between shareholders of a business and the corporation to provide a market for an otherwise illiquid asset (i.e., the closely held business). One of their primary purposes is the protection of the remaining shareholders when one shareholder attempts to dispose of his or her stock to an undesirable individual or outsider. These agreements are also critical in protecting an S corporation from having its stock transferred to non-qualifying shareholders, which can compromise its S corporation election.
A buy/sell agreement often will have an agreed-upon price for the buyout of a business interest. Sometimes this price is stated as a formula, such as a multiple of earnings or a percentage of "book" or balance sheet value. Typically, if entered into between unrelated parties -- parties at an arm's-length -- the agreement will be viewed as fair and representative of the actual value of the business. The problem arises in the context of a family business where this not assumed.
If a business owner can show that an agreement price entered into with a family member is similar to that negotiated with an unrelated party, this price will be respected for estate or transfer tax purposes. Given the tax rules since October 1990 (when the implementation of very restrictive provisions, known as the Chapter 14 rules, came into effect), the arm's length requirement is an extremely difficult one to meet. Here the professional advisor may play an important role in assisting to draft and negotiate a recognized agreement.
Exercise 1: Selection of an Appropriate Business Form
As you have read, one of the most important decisions a business owner must make is deciding on an appropriate business form.
After many years as a training manager in a large corporation, Laurie Jackson is starting her own educational consulting firm. She has spoken to a number of career and small business advisors, and has developed a list of expectations for her new firm. It is now your role, as her financial advisor, to recommend an appropriate business form.
Ms. Jackson wants:
Something relatively easy to form
Retention of control over daily business operation
Limited personal liability -- that is, she only wants to be liable up to the extent of financial contribution to the business
To be able to deduct any initial business losses against personal income -- that is, flow-through tax treatment
To avoid a separate tax on income from the business -- that is, no double taxation
Flexibility in attracting additional investors to the business
Based on these expectations, what business form do you recommend to Ms. Jackson? Why?
Resources for Small Business Ownership
As you have learned, small and closely held business planning has three phases: 1) formation of the business, 2) financing and operation of the business, and 3) disposition of the business.
The NFIB, a U.S. organization devoted to supporting small businesses, provides much assistance through articles, websites and associations. Below are several aids to entrepreneurs who are considering a business start-up.
A Checklist for Starting a Small Business
If you're in the process of starting a small business, you've probably talked with consultants and financial advisers, studied market research and read dozens of books on the innumerable aspects of beginning a small business. In short, you've left no stone unturned in finding out everything you can about how to make a small business successful.
But there comes a time when you need to begin assembling the pieces involved in moving your idea from paper to reality. To do this, you should prepare a comprehensive checklist that includes everything that you may need to accomplish to get your business up and running. This list is not intended to indicate priorities or any particular order in which things should be done.
1. Develop a name for your business and register that name with appropriate officials.
2. Create a detailed business plan and marketing plan through consultations with the following professionals:
• Financial consultants and advisers, to help create business description, organizational structure, product information, market research and other financial information.
• Marketing and advertising experts, to help with marketing strategies, identification of customer base, pricing, PR, advertising consulting, ad creation and brochures.
• An accountant, to set up and handle your financial and tax details. Keep all records for purchases of equipment and furnishings.
• An attorney, to advise about legal aspects of starting a new business.
• An insurance agent, to advise and set up all necessary business insurance, including property, liability, loss of income, health and life on principals.
3. Set up sources for financing, based on details of the business plan.
4. Develop and print up letterhead, business cards, brochures and flyers.
5. Obtain all permits and licenses required for your business. When applicable, apply for state sales tax permit.
6. Set up business checking and saving accounts.
7. Obtain Employee ID number, if required.
8. Select, lease and design office space.
9. Design and print all in-house/inter-office forms required.
10. Select and purchase all electronic equipment that will be used:
• Computers/printers/modems/scanners/software/Internet provider(s)
• Telephone systems (fixed and mobile)
• Fax machines
• Photocopy machines
• Voice mail
11. Select and purchase all office furnishings that will be needed:
• Office chairs and desks
• Shelves and file cabinets
• Storage compartments
• Carpets and area rugs
• Pictures and other decorations
• Cubicle dividers, if required
• Lunch/snack area equipment
12. Purchase office supplies.
13. Design and create signs and posters advertising your business.
14. Establish means to destroy unused confidential information (shredding, document removal, etc.)
15. Security system.
16. Data storage outside office.
17. Night lighting for buildings and on grounds.
If your business will be home based, the following items should be added to your list:
1. Make sure that all zoning regulations have been satisfied.
2. Design home office for efficiency and professionalism.
3. Check electrical capacity to meet requirements for your equipment.
4. Install any additional telephone lines required for business calls, faxes or Internet.
5. Consult with insurance agent about appropriate business insurance.
6. Consult with tax adviser regarding tax deductions for home use.
7. Make all necessary upgrades to the interior and exterior of your home to maintain professional appearance.
The prospect of going into business can be scary and somewhat overwhelming. As you check items off your list, however, you can see that things are falling into place and rest assured that nothing of major importance is being overlooked.
The NFIB also offers information about the four potential stages of business growth and shows the most common sources of failure at each. These stages are defined as:
During Stage One of a business (Creation), certain activities are always required, including setting up lines of financing, establishing marketing and networking systems, setting up lines of suppliers and distributors, determining pricing and establishing internal operational processes.
Through the initial phase of Stage One expenses may be more than sales, so every new business needs to have adequate cash reserves to survive cash-flow shortages. The single greatest reason for failure of new businesses during Stage One is lack of financial reserves. These reserves can be in the form of cash on hand, established lines of credit through banks or ongoing loan agreements with banks and other loan sources. Cost containment is important and will continue to be so throughout the stages of a business' life cycle. But during Stage One costs will almost always outstrip income, and sources must be secured to avoid business disruptions that can cause bankruptcy or withdrawal of financing.
During Stage Two (Growth), businesses are just beginning to find their core customers and to establish their niches within a community. They need to continue creating new customers. The most common source of failure during Stage Two is not creating loyalty among a large number of existing customers. Continually creating new customers is extremely cost inefficient. It's far more cost effective to establish and maintain successful customer loyalty programs, which keep customers coming back.
The perfect example of a customer loyal program is offering steady customers a discount on future purchases. Customers may have to purchase an initial amount to obtain this ongoing discount, but after that, the discount applies to everything they purchase. When people know they're going to get an additional 20% off on everything that they buy from you, they'll look to you first.
There are innumerable types of customer loyalty programs, depending on your type of business. Check out what your competition is doing, or what other successful businesses have done in your particular field.
During Stage Three (Maturity), when cash flows have become stable and all marketing and operational channels have been established, the most important thing for a business to consider is expanding and diversifying its sales channels. An analogy can be made between a maturing business and a growing plant or vine. The vine grows from its original roots, but as it puts out offshoots, these offshoots in themselves begin to put down new roots, which support the entire plant's ability to continue further growth. The growth of a business, like a vine, is limited when there is only one root. What does this mean for a business in practical terms? It means that as cash flows stabilize and profitability grows, new avenues of income should be explored. It's dangerous for any business to continue depending on one product line, or one source of business for all its income. Diversity is the key to longevity, in most cases.
While a business may not choose to diversify beyond its original field or industry, it should always continue to generate new sources of income within that field. For example, a music store might begin by selling guitars, drums, amplifiers and related equipment. As the business moves through Stages One and Two and enters Stage Three, it could consider branching out, selling band instruments to students and professionals, and establishing relationships with schools to provide cost-effective rental/purchase/repair plans for students. When that new source of income has been stabilized, the business could create an eStore, using its growing purchasing power to offer competitively priced instruments and services to a wider potential customer base. Eventually, additional stores could be opened, broadening the "root structure" and the stability of income potential of the entire operation.
This principle has been taken to the extreme by certain large corporations, which have diversified into a variety of industries. General Electric, for example, one of the country's oldest and largest corporations, has become a conglomerate. It's "roots" today are in industries as diverse as airplane engines, broadcasting and consumer finance. This diversification serves to protect the company from cyclic business changes, giving it a stability that helps support future growth. While a small business could not diversify to the extent of General Electric, by putting down a variety of roots any small business can work toward creating insulation against ups and downs in its particular market segment.
It is absolutely necessary for a business to integrate all costs accompanied with its expansion and diversification. Few people can grasp the scope of this balance without adequate training and education, and without the advice of experienced business professionals such as accountants, attorneys and consultants. To assure success of required Stage Three activities, you should continue your business education in every way you can: reading books on the subject, continuing college classes, seminars, and all other sources of advanced learning.
Stage Four (Decline) is the inevitable result of any business that does not adequately carry out the key activities of the first three stages. The indications of Stage Four are: sales declines over a period of three or more years; the emergence of competitors who successfully take away formerly loyal customers; and the loss of profitability due to continually increasing costs which can occur even as sales increase. When Stage Four signs are seen in a business, it's usually difficult to return to Stage Three. However, some companies, through sound strategic planning, can revert from Stage Four to Stage Three. To do so requires success in five distinct activities:
1. Redesigning the business plan;
2. Setting up adequate funding to implement new directions indicated in the redesigned business plan;
3. Cutting costs;
4. Obtaining personnel capable of managing the expansion or shift to Stage Three activities;
5. Weathering the psychological ramifications that may result as owners, managers and employees adjust to new directions and cost-cutting measures, which may include reduced benefits, salaries, and perks.
Exercise 2: Recommending Business Formation in Response to Client Goals
As a result of completing all required readings in this lesson, you have learned of the six primary forms of business entities:
A sole proprietorship
A general partnership
A limited partnership
A regular or C corporation
An S corporation
A limited liability company (LLC)
Now, consider the six common goals of a client engaged in business planning, given each of the three business phases:
1) Formation of the business
Limit on owner's liability
Retention of control
2) Financing and operation of the business
Ease in raising capital
Minimum of organizational requirements
3) Disposition of the business
Ease of sale
Possibility of gifting interests
For each common business planning goal, explain which of the six business forms best achieves satisfaction of that goal, and why.
Exercise 3: The Operation and Disposition of a Closely Held Business
This exercise briefly tests your understanding of the last two steps of closely held business planning -- the operation and disposition of the business.
1. What are several common methods used by closely held business owners
to improve their business operations and thereby better manage their ongoing financing needs?
2. What are four basic questions that need to be asked by any closely held business owner in succession planning?
3. Disposition of a business often is structured as a transaction involving some form of sale or a lifetime gift. What are several commonly used techniques under each of these general categories?
4. What is the standard that is used before a buy/sell implemented between family members will be respected for estate or transfer tax purposes?
Lesson 8: Quiz
1. Which one of the following taxable entities involves an election under federal income tax law in addition to formation under individual state statute?
A. Sole proprietorship
B. Limited liability company
C. A C corporation
D. An S corporation
2. Which one of the following is a characteristic of the limited partnership form of business entity?
A. A tax is incurred at the partnership level upon making distributions to the limited partner.
B. It may be formed without naming a general partner.
C. It requires the execution of a written partnership agreement between a general and limited partner.
D. Personal liability is incurred for the obligations of the partnership on behalf of all partners.
3. Which one of the following statements correctly describes a characteristic of a regular or C corporation?
A. It generally requires formality of execution under state law.
B. It permits flow-through tax treatment to the respective shareholders.
C. Officers are usually personally liable for the debts of the business.
D. A shareholder's estate can force termination of the entity under state law.
4. A unique factor differentiating the closely held business from the publicly traded corporation is ________________.
A. the lack of the owner's involvement in the daily operations of the business
B. the availability of fractional interest discounts in valuing the business
C. the large number of owners that have made a financial contribution
D. the identified market among businesses of the same type
5. Anthony and Roberto are brothers who want to start a new Italian restaurant in their neighborhood. Both are currently unmarried and without children. They anticipate losses from the restaurant for the first several years, but would like to eventually attract additional investors. They do not, however, want to grow their business too large. Both Anthony and Roberto want to restrict their liability in the restaurant to the extent of their investment. What form of business entity should they use to operate their restaurant?
A. An S corporation
B. A C corporation
C. A general partnership
D. A family limited partnership
6. An initial start-up business most frequently relies upon which one of the following sources of financing?
A. Equity shareholders
B. Venture capital
C. Bank loans
D. Cooperative vendors
7. The use of a buy/sell agreement to transfer a business interest is probably most critical for what form of business entity?
A. An S corporation
B. A regular or C corporation
C. A sole proprietorship
D. A limited liability company (LLC)
8. In a family limited partnership, _________________________.
A. the value of the partnership is increased by using the family as an available market
B. valuation discounts may be obtained for the transfer of a limited partnership interest
C. a bona fide business purpose is not necessary for the entity to be respected for tax purposes
D. the general partner is absolved of responsibility for partnership debts and liabilities
Translation - Chinese Lesson 8
Business Ownership and Planning投资商业企业和计划
C. C 公司
D. S 公司
3. 以下哪一个选项正确描述了常规或者 C 公司的特征？
4. 封闭型企业区别于公开交易公司的一个典型因素是 ________________.
B. C 公司
A. S 公司
B. C 公司
8. 在家族有限合伙企业中， _________________________.
English to Chinese: Corporation Report for Shareholders General field: Bus/Financial Detailed field: Finance (general)
Source text - English To our shareholders:
Sales, demonstrating continuing strength in both domestic and foreign markets, realized a record level of $166,995,000 for fiscal 1979. This figure was up $41,336,000, or 33%, from the previous record level of $125,650,000 established last year.
Consolidated worldwide pretax profits were also the highest in the Company's history at $9,147,000 for the fiscal year ended June 30, 1979. This represents a significant increase from comparable pretax profits of $3,496,000 recorded in the twelve months of fiscal 1978. The provision for income taxes, net of related extraordinary items which resulted from the utilization of prior year's loss carryforwards, remained high at 60% of consolidated pretax income but represented a substantial improvement over the comparable 83% rate recorded in fiscal 1978. The resulting net income for the twelve months after taxes and related extraordinary items was $3,668,000, or $1.02 per share.
We are happy to present our excellent results for 1979, a year which has been well publicized in recent months as a troubled period for the music industry in general. At XXX, our dramatic increases in sales and pretax profits have been a result of the growing strength of our management team and well-planned refinements in our marketing techniques. To be specific, product returns expressed as a percentage of shipments increased by only 1% over the rate experienced in 1978 while advertising and overhead expenses, in spite of inflationary pressures, both improved as percentages of net sales.
While pretax results were excellent, our provision for income taxes remained at an unusually high rate due to the material effect of losses in several foreign subsidiaries where current tax benefits could not be recorded and the significant earnings in foreign countries with relatively high rates of taxation. We have the potential to reduce future income tax expense by up to $2,000,000, depending on our ability to achieve turnarounds in loss operations to utilize loss carryforwards of approximately $4,500,000.
Professional, reliable, high-efficient and timely English-Chinese translator
TAC Certified English-Chinese translator
Mother tongue: Chinese
With over 12 years of translating experience
Address: 8, Unit 1, Building 1
Phone: 86-028-83046055, Cell Phone: 86-13350083729
E-mail : Johnh_hlong@163.com (paypal)
MSN messenger: Johnh_hlong@hotmail.com
Master Degree in Translation Studies, Sichuan University (2005-2008)
B.A. in English Literature, Luoyang University of Foreign Languages(1994-1998)
Test as English Major-8 (1998)
Accounting Practitioner Qualification Certificate issued by provincial Labor Administration(2002)
Accountants' Certificate, Personnel Ministry, China(2004)
Translators' Certificate, Personnel Ministry, China(2005)
Certificate for Completion of Professional Part 1 of ACCA(2006) My ACCA ID Number is 1121708. The courses which I have already passed include Preparing Financial Statements, Financial Information for Management, Managing People, Information System and Corporate and Business Law.
Freelance English-Chinese Translator (07/1998 - present)
Working as a freelance English-Chinese translator for over 10 translation companies in Shanghai, Beijing and Guangzhou in China, and accomplished translation projects in various fields.
Over 14 years professional English>Chinese (simplified and traditional Mandarin) translation in such fields as accounting, banking, business, commerce, contract, economy, electronics, engineering, financing, insurance, law, mechanical and others
Other services: interpretation, website/software localization
Windows XP Professional + SP2, Office 2003, Adobe Acrobat 7.0 Professional, Photoshop 8.1 CS, ACDSee 7.0, AutoCAD 2004, WinRAR 3.2, WinZip 8.1, Trandos 7.0 etc.
PC (Pentium Dual-core 2.5G, 2G DDR RAM, 1000G Hard Disk),
Internet connection: LAN (100 Mbps)
Translators' Association of China
Selected translation projects:
1. English > Chinese
(1) Mannatech Career and Compensation Plan
(2) Introduction of a law firm
(3) Economist’s several articles
(4) The ADC Global Business Conduct Program
(5) LogPad® qick start guide
(6) Prisoners’ Information Book
(7) Award of arbitrators
(8) Introduction about Law Firm partners
(9) Fannie Mae’s Mortgage Products
(10) Working family credit
(11) Lenovo Acquisition
(12) Lockout Standard and Office Safety
(14) International Paper’s Internal Control
(15) Gresham Hotel Employee Manual (for Mr. Beljaev, whose comment: I was quite satisfied with Jiang's translations.Sep. 19, 2006)
(16) Licensing Act and its effects on takeaways and late night refreshment houses
(17) Introduction to Health Serviceces of Mills-Peninsula
(18) Complaint by Seiko Epson Corporation ( Oct. 10, 2006)
(19) Toll Production Agreement by Solvay Engineered Polymers, Inc. (Oct. 25, 2006)
(20) Introductions to several marketing books:How to Recognize and Reward Employees: 150 Ways to Inspire Peak Performance(AMACOM, 2007), 91 Mistakes Smart Salespeople Make (Sourcebooks, 2006) and etc. (Nov. 14, 2006)
(21) Note on Yuan Ban Dragon Balm （for Dragon Balm PTE Ltd Singapore, Nov. 21, 2006）
(22) Notice of Consent, Declination and Assignment and Standing Order (for US District Court Norther District of California, Dec. 17, 2007)
(23) Zhonghe USA Marketing Plans 2007 (for Zhonghe USA, Jan. 5, 2007)
(24) Blue Cross’ Health Brochure (for Blue Cross of California, Jan. 8, 2007)
(25) Marketing Strategies (for Brand New View, a global consulting and training company, Jan. 10, 2007)
(26) Multi Ethnic/Cultural Football Cup briefing and its poster(for Darlington Borough Council, Jan. 12, 2007)
(27) Non-disclosure Agreement (for T-Rex Gear in Colorado, Feb. 1, 2007)
(28) Bio of the lawyer( for Leydig, Voit & Mayer, Mar. 14,2007)
(29) Marketing Strategy——Make Them Think（for Delta Point——the Sales Agency, Feb. 20, 2007）
(30) Legal documents (for Paul, Hastings, Janofsky & Walker LLP, Feb. 24, 2007)
(31) BioSpectrum China webpage (for BioSpectrum China, Mar. 30, 2007)
(32) NYC AMERIGROUP Community Connections Handbook（for AMERIGROUP Community Connections, Apr. 7, 2007）
(33) Proposal to Provide Support to Inner Mongolia North Long Yuan Wind Power Company through Bidding Process, Contract Negotiations and Contract Supervision (for Global Energy Concepts, LLC (GEC), Apr. 21, 2007)
(34) REPLY DECLARATION OF NAN-HORNG YEH IN SUPPORT OF DEFENDANT ACTIONS SEMICONDUCTOR CO., LTD.’S MOTION TO DISMISS FOR LACK OF PERSONAL JURISDICTION AND FORUM NON CONVENIENS (for Actions Semiconductor Co., Ltd, Apr. 27, 2007)
(35) Marketing Strategy——How to Improve Performance through Goal-setting (for Integrity Selling, May 5, 2007)
(36) Non-disclosure and Non-compete Agreement（for Val-Matic Valve and Manufacturing Corporation, June 1, 2007）
(37) Sales Contract (for MTS Systems Corporation, June 4, 2007)
(38) An introduction of Mayer, Brown, Rowe & Maw LLP ( for Mayer, Brown, Rowe & Maw LLP, June 8, 2007)
(39) Master Supply Agreement ( standard contract, June 10, 2007)
(40) Sale Rep Training-------Keeping Tabs on the Competition (for Primary Intelligence, June 14, 2007)
(41) Introduction of Jayco Chemical Industries and its Products (for Jayco Chemical Industries, June 15, 2007)
(42) Caterpillar Policy Letters (for Caterpillar, June 20, 2007)
(43) AIG Travel Structure Presentation(for AIG Travel, July 7, 2007)
(44) Equal Opportunity & Respect in Workplace Policy (for Flowserve, July 18, 2007)
(45) Restated Certificate of Incorporation (for Quovadx, Inc. July 29, 2007)
(46) Localization of the website of Kislev Logistics Ltd (Dec 12, 2009)
(47) Weather Forecast on the mobile phone (May 23, 2010)
(48) PLOT presentation (June 3, 2010)
(49) Court Case (Exhibit pp 1739—1788) (June 8, 2010)
(50) Fi India 2010 (June 13, 2010)
(51) Master Supply Contract (July 30, 2010)
(52) Record of Interview (Aug. 1, 2010)
(53) Supporting you throughout the investment cycle (Aug. 2, 2010)
(54) Conducting the Interview (Aug. 4, 2010)
(55) Fact Sheet of Kroll Ontrack(Sep. 14, 2010)
(56) Introduction on Control Risks(Sep. 25, 2010)
(57) Brochure of Living in Louth for immigrants(Sep. 27, 2010)
(58) Sapient Corporation Code of Ethics and Conduct (Oct. 7, 2010)
(59) Letter from Dr. Gabriella Nagy Law Office (Oct. 8, 2010)
(60) Control Risks and the Construction Industry(Oct. 20, 2010)
(61) EmpireOption Website Localization (Oct. 22, 2010)
(62) IronForex Website Localization(Oct. 26, 2010)
(63) Questionniarre-Business analytics in retail banking(Oct. 27, 2010)
(64) Control Risks Privacy Report 2010(Nov. 1, 2010)
(65) Le Tutor Language School Marketing Materials(Nov. 8, 2010)
(66) OurWorkspace_elearning_TeamSites2010ForOwners.ppt(Nov. 18, 2010)
(67) Hotel Relax Roma Nord (Nov. 22, 2010)
(68) Language Collaborative Voice Talent Agreement (Nov. 23, 2010)
(69) India as a new oil and gas frontier: the "above ground” risks (Dec. 17, 2010)
(70) Localization of a Forex Trading Website Royal CM (Dec. 23, 2010)
(71) Financial aid request to Chinese Government (Dec. 25, 2010)
(72) RiskMap 2011 (Dec. 28, 2010)
(73) Japan: The Still Waters of Due Diligence Run Deep (Jan. 3, 2011)
(74) The hidden risks of Japan Inc: Anti-social forces (Jan. 8, 2011)
(75) Deed of Amendment and Waiver to the Supply Agreement (Jan. 16, 2011)
(76) Greylock Global Opportunity Fund_2.11_Monthly Commentary (Feb. 10, 2011)
(77) Mission Analysis (Feb. 27, 2011)
(78) Now Health International Brochure (Mar. 3, 2011)
(79) AIA Online Module (Mar. 6, 2011)
(80) Continuum ® guideline for servo drive systems (Mar. 12, 2011)
(81) Tax Refresher—VAT （Mar. 17, 2011）
(82) WorldCare individuals & families brochure (Mar. 22, 2011)
(83) SoundTouch Ver. 1.9 (Mar. 25, 2011)
(84) Ask the Tax Doctor (Apr. 5, 2011)
(85) Battling the bribes, India (Apr. 10, 2011)
(86) Doing business in 2nd and 3rd tier cities (Apr. 12, 2011)
(87) What diligence is due for Japanese manufacturing companies (Apr. 15, 2011)
(88) Localization of the game of Sky Force (Apr. 18, 2011)
(89) Election Fever in Malaysia (Apr. 20, 2011)
(90) Upcoming Events of Control Risks (Apr. 21, 2011)
(91) Judges’ Profiles of Asian Marketing Effectiveness Awards 2011(Apr.24, 2011)
(92) Sponsors’ profiles of Asian Marketing Effectiveness Awards 2011 (Apr. 26, 2011)
(93) The moment of Minimal Wage (May 2, 2011)
(94) An Evolution of Aspirations (May 6, 2011)
(95) WMS Global Service Brochure (May 14, 2011)
(96) The Change Guy (May 22, 2011)
(97) The Awkward Guest (May 25, 2011)
(98) Inner Treasure (May 28, 2011)
(99) Tax Refresher • Expatriates Individual Income Tax (June 8, 2011)
(100) Loan Agreement for Airplane Purchase （June 18, 2011）
(101) CAIA Sample Questions (July 15, 2011)
(102) Tax Upon Tax (Aug. 6, 2011)
(103) Christopher Leow Lam Choon- CV (Aug. 11, 2011)
(104) Tax Perspective: Star On the Rise (Aug. 15, 2011)
(105) Individual Income Tax (Sep. 15, 2011)
(106) PE Summit-Control Risks Brochure (2) (Sep. 23, 2011)
(107) Women Managers in ASIA (Sep. 27, 2011)
(108) Website of Power-One (Oct. 10, 2011)
(109) Tax Refresher: Consumption Tax （Oct. 20, 2011）
(110) Q&A about Race Discrimination Ordinance (Oct. 26, 2011)
(111) Security at Sapient Training Manual (Oct. 30, 2011)
(112) Declaration of Capital Spreads (Nov. 11, 2011)
(113) Aviva Customer Cup for Bright Sparks (Nov. 18, 2011)
(114) New Approach to Decisionmaking for OTC (Nov. 23, 2011)
(115) At Loggerheads (Mar. 20, 2012)
(116) SKINS Sponsorship (Mar. 22, 2012)
(117) Making sense of the Strategic value behind CEO pay cheques (Mar. 28, 2012)
(118) FY12 Performance Appraisal (Apr. 1, 2012)
(119) Split Decision (Apr. 3, 2012)
(120) Why The UK (Apr. 10, 2012)
(121) Fraser Riverview Holiday (May 20, 2012)
(122) Humble Leaders and Organisational Humility (May 26, 2012)
(123) Confidentiality Agreement(June 4, 2012)
(124) Fashion is GREAT Britain (June 26, 2012)
(125) Purchase Agreement (July 20, 2012)
(126) BVI Company Legal Opinion (Aug. 20, 2012)
(127) Cayman Company Legal Opinion v 1 (Sep. 1, 2012)
(128) LOE - Chengdu Outlet Project (Sep. 10, 2012)
(129) CONFIDENTIALITY AGREEMENT(Oct. 1, 2012)
(130) Omegeo (April 15, 2013)
2. Chinese > English
(1) The Hotel Market – JIUZHAI (for Sichuan Travel Administration Bureau, 2006)
(2) Company audit reports (for 3 listed companies)
(3) China Flower Expo (for municipal government in Chengdu, China, 2005)
(4) Birth (Marriage) Certificate and Employment History（for Mr. Fayejohn, 2006）
(5) Letter of Hualien County Government (for Hualien County government, Taiwan, Nov. 4, 2006)
(6) Agreement between SHANDONG KERUI PETROLEUM EQUIPMENT COMPANY LTD. and DASK DRILLING LIMITED LIABILITY PARTNERSHIP (beginning and ending of the agreement text, Nov. 23, 2006)
(7) Peter Scherr China Promo of Creative Music (Nov. 24, 2006)
(8) Interview transcriptions from videos of psychiatrist-patient conversations (as dubbing for the video, Nov. 6, 2006)
(9) Certificate (for an Indian Translation Agency, July 27, 2007)
(10) Names and Addresses of Cement Businesses (for some cement businesses In Sichuan, July 28, 2007)
(11) Land Certificate (Oct. 20, 2010)
(12) Birth Certificate (Mar. 26, 2011)
Hope to obtain a freelance position as an English < > Chinese (native, both simplified and traditional) translator/proofreader
RATE: USD 0.04 per source word (reasonable and negotiable). Normally 4000 source words per day.
This user has earned KudoZ points by helping other translators with PRO-level terms. Click point total(s) to see term translations provided.
This user has reported completing projects in the following job categories, language pairs, and fields.
Project History Summary
With client feedback
0 positive (0 entries)
English to Chinese
Law: Patents, Trademarks, Copyright
Keywords: Test as English Major-8 (1998)
Accounting Practitioner Qualification Certificate issued by provincial Labor Administration(2002)
Accountants' Certificate, Personnel Ministry, China(2004)
Translators' Certificate, Personnel Ministry, China(2005)
Certificate for Completion of Professional Part 1 of ACCA(2006)