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owed from a bank. They decided to start with retailing. Buying is mainly the responsibility of Zhang, and he often visits Guangzhou and Shanghai for purchasing. Cheng, in charge of selling, basically works in the shop, although occasionally also does some purchasing. Zhang closely follows fashion trends and market demands, and the goods he purchases are sold out as soon as they are brought into the shop. 來自 中國最大的資料庫下載 Within 6 months, the two of them have already made 30,000 yuan, enough to pay back the bank loan. Encouraged by the booming business, they have decided to enlarge the business space by taking over the tea shop next door whose business is dull. Zhou Husheng, the owner of the tea shop, was reluctant to sell his business outright, but agreed to value the shop at 30,000 yuan and invest the money in Hongya. Besides, he decided not to take part in Hongya’s daytoday management, because he is not familiar with the fashion business. 來自 中國最大的資料庫下載 In return, however, he asked for 21% of Hongya’s profit, saying that 21% is about half of his share of Hongya’s equity. Having weighed the pros and cons, Zhang and Cheng agree to Zhou’s request and sign an agreement with him to that effect. 來自 中國最大的資料庫下載 Discussion 1. What type of business is Hongya? What kind of relationships are there among Zhang, Cheng and Zhou?