1

RESUME OF BUSINESS OWNERSHIP

Each type of organizations has its advantages and disadvantages that must be carefully
evaluated in the light of the individual context.

THE INDIVIDUAL PROPIETORSHIP

Also calles sole ownership, its the easiest procedure and no legal
procedure. The proprietor owns and operates the business, provide the capital,
and firnishes all the necessary and property. All business transaction and
contract are made in the owners name. The proprietor also has no continuity in
the event of the death of the owner. But the owner must pay income taxes at
normal individuals rates on the full earnings.

THE GENERAL PARTNERSHIP

The general partnership is an association of two or more persons who, as
owner, carry on a business for mutual profit. Partner usually receive drawing
accounts against anticipated earnings or annual salaries that are considered to
be operating expenses of the partnership. A partner also share of profirs in a
partnership[ can be assigned.
SUBPARTNERSHIP
A general partner can enter into a agreement with an outsider, called a
subpartner. Because the subpartner has contracted to participate in the
individual partners share only, he is not personally liable to creditors of
the partnership.
THE CORPORATION
A corporation is entity, created by law, that is composed of one or more
individual united into one body under a special or corporate name.
Corporations have certain privileges and duties, enjoy the right of
perpetual successions, and are regarded by the law as being separate
and distinc from their owners.
THE FOREIGN CORPORATION

RESTI SUHITA-121080002

RESUME OF BUSINESS OWNERSHIP

The acts of a foreign corporation within another state are considered to

be unlawful until the corporation has become certified to do business as a
corporations in that state. Additionally, an uncertified foreign corporation
may not have access to the state courts.

LIABILITY OF A GENERAL PARTNER

The liability of a general partner for the debts of the partnership is based
on two legal principles. To protect him self from future partnership debts, the
retiring partner should give personal notice to firms doing business with the
partnership and publish public notice of his departure.

DISSOLUTION OF A PARTNERSHIP
Dissolution may aso be precipitated by bankcrupty, a duration provision in
the originalpartnership agreement, the decision of a partner to withdraw, the
insnity of a partner, a court of equity degree, or the mutual conset of all parties.

THE LIMITED PARTNERSHIP

A limited partner is one who contributes cash or property to the business
and commensurately shares in the profits or losses but provides no services and
has no voice or vote in matters of management. The limited partnership Is used
principally as a means of raising capital.

STOCKHOLDERS
Stockholder have no liability for obligation of the corporations, and the
corporation, and their responsibility is limited to their investment in the
corporationss stock.

RESTI SUHITA-121080002

RESUME OF BUSINESS OWNERSHIP

CORPORATE DIRECTORS AND OFFICER

The directors must conduct the firms affairs in accordance with its bylaws
and are ultimately responsible to the stockholders. Officer also serve in the
capacity of fiduciaries and may be held personally liable corporation losses
caused by their neglect or misconduct.

THE SUBCHAPTER S CORPORATION

The use of subchapter S corporations can be especially beneficial in the
early years of a business, when operating losses occur and substantial
equipment must be acquired; when there is a high company profitability with no
additional capital needs; and for family income tax planning.

EMPLOYEE STOCK OWNERSHIP

There have always been certain incentives for construction firm to initiate
such plans, for example, where the owner has decided to retire and there is no
suitable heir apparent to carry on the business. Company ownership mayforesee
greater motivation and productivity among its workers if their personal fortunes
were to be more closely tied to the success of the enterprise.

THE JOINT VENTURE

A joint venture relates only to a single project, eventhought its completion
may take a period of years. A join venture serves to combine the resources,
assets, and skills of the participating companies. Such as combination offers the
multiple advancetages of pooling construction equipment, estimating , and office
facilities, personnel, and financial means.
RESTI SUHITA-121080002