Investment　　 certificates:　　Investment　 certificates　 are　 the
certificates　issued　 by　a　joint　venture　to　testify　the amount of
investment　subscribed　by　the　 parties　to　the　joint　venture. They
are　issued　to　the joint ventures after　the　parties　to　the venture
have　put　in　their　respective　subscribed investment　and　after　the
Chinese-registered　 accountant　has verified the amount　and issued the
verification　report. Without the consent of the other parties　and　the
approval　of　the　examination　and　approval　authority　of　the　joint
venture,　 no　 party　to the joint venture is allowed to dispose of the
certificate by transfer, mortgage or other ways.
　Reserve　 fund:　 The　 reserve　 fund　 of　 a　 joint　venture　is a
special　fund　withheld　from　its　profits　to　make　up for the losses
the　venture　may　be subjected　to　and to guard against accidents. The
proportion　of　the　fund　is　to　 be　 decided　upon　by　the board of
directors,　but　it　is　not　to exceed a certain　amount.　The　reserve
fund　 is in general not to be used for other purposes,　but,　with　the
approval　 of　the　joint venture's examination and approval　authority,
may　 be　 used　 by　the　joint　venture　for increasing its capital or
expanding production.
　Bonus　 and　 welfare　 fund　 for　staff　and　workers: The bonus and
welfare　fund　for　 the　 staff　 and　workers　of a joint venture is a
special　fund　withheld　from　 the　 venture's　profits　to improve the
welfare　of　the　staff　and　workers　and　 encourage　 individuals　or
groups　 who　 have　 made　comparatively　great　contributions　to　the
production　 and　 work.　It　can　be　used　only　for commending　those
who　 have　 made　 comparatively　 great　 contributions　and providing
collective　 welfare　facilities　for the staff and workers, medical and
health service and financial aids.
　Enterprise　 expansion　 fund:　 The　 expansion　 fund　 of　 a joint
venture　is　a　special　 fund　 withheld　 from　 the　joint　venture's
profits　 to expand its production.　 It　can　be　used　for　purchasing
fixed　　assets,　　increasing　 circulating　　funds　　and　 expanding
operation.　 It　 can　also　be used for the trial　manufacture　of　new
products,　　undertaking　 scientific　research　and　running　technical
training for the staff and workers.
　Industrial　property:　The　industrial　property　is　the　proprietary
right　acquired　 in　accordance　with　the law for patented inventions,
new　designs　and　 trade　marks. It is to be protected according to the
law,　although　such　protection　is　strictly　regional.　Exclusive　in
character,　the industrial property　shall　not　be　encroached　upon by
others.　Use　of　such a right by others　must　have　the consent of the
owner　of　the　right and a fixed amount of　reward　for　him.　The　Law
on　Joint　Ventures　Using　Chinese　and　Foreign Investment　stipulates
that　 a　 joint　 venture　 may　 make　its　investment　in　industrial
property,　 to　 which　 provision　 rules　 have　 been　 added　in the
Regulations　 for　 the　Implementation　of　the　Law　on Joint Ventures
Using Chinese and Foreign Investments.
　Knowhow:　Knowhow,also　called technical secret,is technical knowledge
which　can　 be　 transferred　 or　 imparted and which not known to the
public　and　not patented.　Unlike　the　patent　right　whose　effective
period　is limited, knowhow is monopolized by means of secrecy.
　Accrual　 basis:　 This　is　an　accounting method of ascertaining the
income　and　costs　 of　 a　 venture　 in　 a fiscal period (a month, a
season　or　a year). In other　words,　the income and costs of a current
period　should　be　dealt　with　as　such,　no　matter　if　the　sum　is
received　or　paid　in that particular period.　Conversely,　the　income
and　costs　not　of　the　current　period shall not　be　dealt　with　as
such,　 even　if the sum is received or paid in that particular　period.
For　 instance,　 the　 rent　of September should still be entered　into
the　 account　 book as the costs of that month, even if it was paid　in
August　or　October.　The adoption of accrual basis makes it possible to
accurately　calculate　a　venture's　income, costs and profit or loss in
various fiscal periods.
　　Debit-credit　　　bookkeeping　　　method:　　　In　　accounting,the
words"debit"　 and　"credit"　 are　used　to　record　the　increase　and
decrease　of　a venture's application　 of　 funds　 (assets　or　costs)
and　 its　 sources　 of　 funds　(liabilities,　 capital　 or　income).
"Debit"　 signifies　the increase in the application　of　funds　or　the
decrease　in the source of funds and "credit" denotes　the　decrease　in
the　 application of funds or the increase in the source　of　funds.　In
accordance　 with　 the　 principle　 that　a　venture's application　of
funds　 must　 equal　 its　 sources of funds, each item of the ec