A. Form of ownership

The Michelin group is well known worldwide and in order to operate this big company, the ideal way is make it a partnership which is limited by shares. In the industry of tires manufacturing, a mammoth capital is needed as to maintain its competitiveness with other brands. This is a capital-intensive industry in which the pace of technological innovation is relatively slow. Therefore, for the long-term strategies, the best way of operating the company is to manage the team acting in the shareholders’ best interests. The partnership of this company is categorized into two types, which are the general partners and the limited partners or so called the shareholders.

B. Identification of partners or principal shareholders

The role of the limited partners or shareholders is very important. Nowadays, in order to stay in the game of business, a company must equipped with an enormous amount of capital. Thus, the limited partners or the shareholders play a vital role generating the fund for the company. Unlike general partners, limited partners have no daily management role, cannot encumber the business, and are not personally liable for the business's debts. They are responsible for electing the members of the Supervisory Board and the Managing Partners because a good management will ensure the company running smoothly. The authorities have the power to approve the financial statements presented by Management. Their liability is limited to the amount of their investment. All Michelin shares are registered, which enables the group to better understand the expectations of its shareholders, who receive a return on their investment in the form of a dividend.

As for the general partners, they will have unlimited personal liability for the partnership’s debts. A general partner is also commonly a managing partner, which means that this person is active in the day-to-day operations of the business. They are the pillar of the company as they are...