Bachelor Examination Requirements Quiz

Course Information

• Course Title: English 1 (Key Qualifications Language 1)
• Course Description: Doing Business in Germany
• Professor: Prof. Dr. Prof. h.c. Bernhard Schellberg
• Faculty: Business Law
• University: University of Applied Sciences Schmalkalden/Germany
• ECTS Credits: 2.5
• Level: Bachelor
• Course Assessment: Final Exam (60 minutes)
• Total Workload: 75 hours
• Start Date (2024): October 15th
• Lecture Time: Tuesday, 14:15-15:45
• Lecture Hall: D0301
• Course Website: https://studip.hs-schmalkalden.de/dispatch.php/course/overview?cid=615c0ce56536530c7e16c0b9d54dca7d

Chapter 1: Introduction

• Germany is the world's fourth-largest economy and a major driver in Europe
• Germany's industry focus centers around engineering, especially in automobiles, machinery, metals, pharmaceuticals, and chemicals
• Germany has a strong logistical and technological infrastructure, a skilled workforce, and a stable economy.
• The course Doing Business in Germany covers the legal and taxation system in Germany.
• It discusses establishing and operating companies (focus on limited liability), labor and tax framework, and commercial, antitrust, and intellectual property laws.
• The course also provides information regarding access to capital markets and related banking and finance laws in Germany.
• The course will emphasize legal terminology, case studies, and improving language skills relevant for business law discussions and negotiations.
• Students will practice their spoken communication skills through presentations and debates on legal topics.
• Collaborative group projects will foster teamwork and problem-solving skills.
• Students are encouraged to use smartphones or tablets as aids for short presentations and discussions during lectures.

Chapter 2: Germany - An Overview

• Baker & McKenzie presented at the course; they provided information on the career opportunities at their company.
• The course first part discusses "Doing Business in Germany" based on a 2015 Baker & McKenzie publication.
• The overview covers the political system, particularly any changes since 2015.
• The course material requires students to analyze the "Civil Law" and "Common Law" systems.
• The importance of Germany is justified by its Gross Domestic Product (GDP) and relative ranking in the global economy.
• Students should use the provided sources to understand and explain GDP and its connection to a country's prosperity.
• Recent importance of the BRICS countries (Brazil, Russia, India, China, and South Africa) is discussed, including their growing global influence and implications for international relations.
• A lecture overview is to be prepared on these aspects.

Chapter 3: Legal Forms of Doing Business

• Types of long-term finance classified as debt and equity.
• When a firm borrows money, it promises to repay with interest in debt financing.
• Debt holders can force bankruptcy if the firm doesn't fulfill this promise.
• Equity financing does not offer such promises; equity holders are paid after any debt is satisfied.
• Therefore equity is considered a residual claim.

1. Starting Up as a Sole Proprietorship

• A sole proprietorship is an unincorporated business owned by one individual.
• The owner keeps all the profits and bears all costs.
• The owner is personally liable for all the firm's obligations.
• Sole proprietorships are primarily used for small businesses.
• Advantages: Ease of starting, few regulations, and no corporate taxation.
• Disadvantages: Unlimited personal liability, difficulty obtaining significant capital for growth, and life limited to the owner's lifespan.
• There is a closed-book exam on this topic with 10-minute questions about sole proprietorship characteristics, advantages, and disadvantages.

2. Partnership

• A partnership is formed when two or more persons or entities associate for a for-profit, non-corporate business.
• Partnership agreements outline decision-making structure and profit distribution.
• Partners are liable for business obligations.

2. General Partnership (OHG)

• OHG is a common partnership type in Germany for small and medium-sized trading companies.
• OHG is not a legal entity, it owns partner assets and assumes liabilities.
• Partners have joint and several liability for all liabilities.
• Partnership agreements define decision-making and profit distribution among partners.
• Similar advantages and disadvantages as a sole proprietorship.

3. Limited Partnership (KG)

• Limited partnerships limit the liability of some partners to their contributions.
• Typically, there are general partners with unlimited liability and limited partners.
• Limited partners contribute capital with liability confined to the contributed amount. They cannot lose more than they invest.
• The business operations are overseen by general partners.
• The course includes discussion of an example case study.

4. Limited Liability Incorporated Entities

• Limited liability companies (GmbH) and stock corporations (AG) offer limited liability to shareholders
• These are legal entities.
• The amount needed to start an GmbH or AG is a 25,000 Euro minimum for a GmbH.

4.1 Limited Liability Company (GmbH)

• GmbH (Gesellschaft mit beschränkter Haftung) is formed by one or multiple persons for any purpose permitted by law.
• The company is a legal entity with independent rights and obligations.
• Company assets are separate from personal assets.
• The company's obligations are to the extent of its assets. A specific form and amount of capital is needed for each company.
• A meeting of shareholders must be held in case of illiquidity.
• There is a case study for students to analyze.

4.2 German Stock Corporation (AG)

• AG (Aktiengesellschaft) is one legal form with access to capital markets governed by German law.
• Shares can be bearer shares (no register/unlimited) and registered shares (register/limited.).
• The shares in an AG must have a minimum share capital of 50,000 euros.
• A complex three-tiered organizational system is used, including management board, supervisory board, and general meeting.

4.3 Societas Europaea (SE)

• SE is a European entity, governed by European community law and national laws.
• SE helps manage cross-border business operations through a unified management approach.
• The course material emphasizes SE as a convenient option for managing cross-border businesses.

5. Branch

• Foreign companies can establish a branch or subsidiary in Germany.
• Branches are used to pursue business activities and operations in Germany, but the branch isn't an independent legal entity; this includes an establishment and subsidiary.

Test your knowledge on the details required for participation in the Bachelor examination, focusing on the 'Doing Business in Germany' course. This quiz covers registration deadlines, ECTS indications, and characteristics of Germany's economy.