INTERIOR ARCHITECTURE

DESIGN MANAGEMENT & BY LAW 341

Lecture 2
Business
Association
 1st you need to make decision about issues such as:

The form of business

structure

The ownership and

Insurances management structure

The location of the

Financial Requirements practice

The size of the practice

Accounting Methods

Staffing
To successfully manage the practice, you
will need to address:
Management Styles Employee Relations

Fee Structure Quality Assurance

Overheads and Costs Marketing

The process will require you to
master:

COMMUNICATION
CONDUCT OF MEETING
FORMS OF BUSINESS STRUCTURE:

SOLE
PROPRIETOR PARTNERSHIP

FORMS OF
BUSINESS
STRUCTURE

PROPRIETORY COMPANY TRUST

 SOLE PROPRIETOR

•
The simplest form – you can hang out your
sign and start.
•
You are entitle to ALL of profits, BUT you
are also personally liable for ALL of its
debts and responsibilities!

6
 ADVANTAGES
Low Start-
Ease of formation
up costs
More All profits
Owner in
freedom from goes to the
direct control
regulations owner

Maximum Easy to
Privacy change legal
Structure
 DISADVANTAGES
Narrow
Unlimited personal Liability Management
Base

Difficulty in
Lack Of Loneliness
Raising
Continuity and Isolation
Capital
 PARTNERSHIP
Is to have one or more partners-
people who can provide additional
capital and expertise
 ADVANTAGES
Low Start-
Ease of formation
up costs
Broader Limited
More sources
management outside
of Capital
base regulation

Privacy of Easy to
Affairs change legal
Structure
 DISADVANTAGES
Unlimited personal Lack of
liability. Continuity

Friction
Divided Limitations on
Between
Authority size
Partners

Less flexibility
in transferring
ownership
interest
PROPRIETARY COMPANY
HAVING OTHER PEOPLE THAN YOURSELVES
AS OWNERS OF YOUR FIRM WHO WANTS
TO PROVIDE CAPITAL INTO YOUR FIRM
BUT YOU DO NOT WANT TO LOOSE YOUR
HARD EARNEST ASSETS IF SOMETHING
GOES WRONG, SO, A COMPANY MAY BE
YOUR CHOICE.
Companies are legal entities, able to
entre into contracts , own
properties, earn profits, pay
taxation etc.
Directors
Owners
(Shareholders)

Directors
 ADVANTAGES
The management
The liability of the shareholder is
is centralized in a
limited to their amount of shares
board of director

Withdrawal
It has a continuous without Larger Capital to
existences jeopardizing the be available
company

The owners of the company can

also be the employees of the
company
 DISADVANTAGES
It is more expensive
It involves closer regulation by government to organize and
and the courts. maintain

You may be Extra Reporting

Less privacy
restricted by the requirement
regarding financial
company’s necessitates more
and other affairs
constitution. record keeping

Director’s duties impose

a heavy responsibility
TRUSTS
A Trust is not a legal entity- it is simply holds property in trust for
beneficiaries.

A small number of businesses are operated under a trust

structure which gives the administrators of the trust wide
discretionary powers over the distribution of the trust income
and capital.
BUSINESS NAME
BUSINESS NAME REGISTRATION HELPS TO IDENTIFY THE
PERSON BEHIND THE NAME, AND SERVES TO AVOID THE
CONFUSION OF DUPLICATION OF BUSINESS NAMES IN THE
SAME INDUSTRY.
 AN ADVICE
WHICHEVER BUSINESS STRUCTURE YOU
CHOOSE , IT STRONGLY RECCOMMENDED
THAT YOU SEEK THE ADVICE OF AN
ACCOUNTANT AND A LAWYER TO BOTH
CHOOSE THE MOST APPROPRIATE
STRUCTURE FOR YOU, AND TO SET IT UP.
IT CAN BE BOTH DIFFICULT AND
EXPENSIVE TO MAKE CHANGES LATER.