Extra credit - Book Report/Review Example

Individuals can come together and form a joint business which they own as a group and share all the profits, losses and decision making. This can be in the form of general partnership in which all partners have a right to share all the profits and losses and debts regardless of their shares in the business. There is also a limited partnership in which partners have a limited liability (House 151). This is a form of business owned by shareholders. These enjoy a limited liability and can not be personally made liable for any debt owed by the business beyond their shares.

As owners, they can choose to manage the business or entrust it with the Board of Directors or executives to manage it on their behalf. In both US and Saudi Arabia, sole proprietorship is owned by one person, who assumes the roles of a decision maker, financier and enjoys all the profits or suffers all the losses made by the business alone. In case of any debt, he is the one to pay alone. However, unlike in USA, sole proprietorship is illegal for the foreigners. Only Saudi natives are entitled to operating it.

This slightly differs from US where sole proprietorship is enjoyed by the US citizens and even foreigners. US constitution does not prohibit, but discourages it from being practiced by foreigners. Partnership business is allowed in both USA and Saudi Arabia. In both countries, individuals are allowed to come together and forma a partnership business with one another. This can either take the form of general partnership or limited partnership. Business laws in both countries states that the liability of the general partnership is unlimited while that of the limited partnership is unlimited.

At the same time, a partnership is perpetual. Meaning, it can not be dissolved upon the death of one of the partners because it is a distinct entity from them. All these features are shared with Limited Liability Companies in USA. As different