4 Flashcards
What are the typical selection criteria that founders use when choosing a legal structure for their business?
The primary focus of innovations within companies is to introduce something new, such as new products, processes, or ways of doing business.
What are the main categories of legal structures available to founders in Germany?
The term “innovation” is derived from the Latin verb “innovare” and means “to renew.”
What is the central term in the German Commercial Code (HGB) that determines the applicability of its special rules for businesses?
The text highlights three key definitions of innovation: an invention that leads to entrepreneurial success, what defines who wins and who loses in the market (with a focus on successful commercialization), qualitatively novel products or processes that differ noticeably from a comparative state
What is the definition of a “merchant” (Kaufmann) according to the German Commercial Code (HGB)?
The definition by Lyons, which states that innovation is “what defines who wins and who loses.”
Which groups of entrepreneurs and businesspeople are specifically addressed by the German Commercial Code (HGB)?
If the emphasis is on novelty, innovation is defined as “qualitatively novel products or processes that differ ‘noticeably’ from a comparative state—however this is to be determined.”
When does the HGB apply to entrepreneurs who are also (founding) owners?
The dimensions used to characterize innovations are: content-related, novelty-degree-related, subjective, actor-related, process-related, and normative.
What is the key characteristic of a sole proprietorship in terms of ownership and liability?
Product and process innovations.
What is the distinction between a “trade” and “freelance work” in the context of German commercial law?
Process innovations are realized through novel factor combinations, their main goals are increased efficiency and process improvement.
Who is considered a “small business owner” (Kleingewerbetreibender) and what are the implications of this classification?
Product innovations also include recycling and focus on new or significantly changed uses.
What are some reference points that help determine when a sole proprietor’s business activity reaches a level requiring entry in the commercial register?
Service innovations are often called product-service systems, due to their immateriality, heterogeneity, inseparability, and transience.
What freedoms and obligations does a sole proprietor have in terms of power of attorney, place of jurisdiction, and company name?
Market innovations encompass new sales or procurement markets, their primary objective is to open up new customer or supplier potential.
Which occupational groups are typically classified as freelancers (Freiberufler) in Germany, and what is the main criterion for this classification?
Structural innovations are renewals in corporate structure, their typical aims are to increase employee qualification/motivation or rationalize processes.
What is the key difference between a partnership and a sole proprietorship?
Cultural innovations represent improvements in the social sphere, an example is a change in cooperation between employers and trade union representatives within a company.
What is a partnership under civil law (Gesellschaft bürgerlichen Rechts, GbR) and how is it formed?
The term is used broadly, from minor design changes to groundbreaking innovations, making it unclear when something is truly an innovation.
What are the liability implications for partners in a GbR?
The target groups considered can be: an individual, all managers of a company, an entire industry, a nation, or even all of humankind.
