Image: “Excerpt from Raul Renanda’s Book – 99 Untuk Arsitek”
There are various types and forms of business organisation. And that there are diferrences in each kind because of diffrent factors wich must be thought about. There are three main types of business organization.
In pre-partnership, if your business is successful – you will be the reason, if it fails you would also probably the reason. Some of the disanvantages are very obvious, how many hours you want to work each day a week, what happen to the business if you want take a vacation, you will have a problem if you cannot suplly all off your customer’s needs, what problem may result if you are not a good record keeper, if your business fails and you’re a suppliers, then you will personally resposible to them.
Because of some of that disanvantages, some people prefer to form a partnership. There are various kind of partnerships. Then what is general partnership?
A partnership, is a voluntary association between two or more people who carry on a business for the purpose of making a profit. For example, you and your friend decide to buy a houses, fix them up and make prepares, and then re-sale them. If one of you has money to invest and the other has talents such as construction experience to invest, then you can form a partnership. If both of you have money to invest and have no constructions experience, then you can also form a partnership. If you both have construction experience but no money, then as a practical method to make a partnership work, you better think about getting another parther, one with money.
In a general partnership, the partner are expect to share the work equally or contribute equally in time spent in the business, partnership profit and losses of the business, and their equally responsible for expenses, but the partner are takes on the partnership as individuals. Sometimes people entering a partnership will prepare a partnership agreement, but there are some people had been in a partnership for years without any kind of a written agreement. So, a partnership can be easy to form, and has a potential for greater growth or loss. Also, as a practical matter, people may want to think about to going to partnership with friends, sometimes being in business with a friend can be the end of the friendsip.
A cooperation, is the third main type of business organization. One main of advantages of a cooperation is that its life is continous. The owner are called shared holders, and cooperation have offices wich run the company and also directors who make decision in the best interest of the company.
At this point in time. As an Architect, we don’t need to have a detail understanding of any of these business types. What we do need to remember is the genuine information about each form and know that when we become involved in a business and need help in understanding something. Start your own business? or working for other? It’s a choice.