1 Answers

The differences mainly as follows:

1.Key Factors:
Shareholder Partners: The key factors are capital and human resources. While human factors are considered, capital plays a crucial role.
Business Partners: Primarily human-oriented. The amount of investment is not determined by the partner but rather based on the partner's capabilities.

Shareholder Partners: Hold actual shares.
Business Partners: Hold virtual shares. They are not the actual owners of company shares but have profit-sharing rights. Only at the end may they own some actual shares.

Shareholder Partners: Bear the highest risk. In the event of bankruptcy, they need to share the committed and registered capital proportionally.
Business Partners: Bear relatively lower risk. Generally, the partnership capital they submit can be refunded, and they may receive other benefits. If the company incurs losses, the partnership capital might be discounted, but this is rare. Companies engaging business partners usually have developed to a certain level, facing fewer unknowns compared to shareholder partners in the startup phase.

4.Operational Complexity:
Both types of partnerships involve considerable complexity in planning, including numerous designs and rules.

5.Exit Mechanism:
Shareholder Partners: Exiting is relatively difficult, as removing a shareholder is not simple.
Business Partners: Exiting is more convenient. The exit mechanism can be set by the company and does not involve regulatory issues.