ENGLISH ECONOMICS

By Joearsa.S

ARTICLES: A-AN / THE

A dan AN disebut Indifiniite article( kt sandang tak tentu) yang berarti;
seseorang,seekor,sebutir,sepotong dll.
A dan AN hanya digunahkan bersama Countable Noun:kt benda yang dapat
dihitung dalam bentuk singular:tunggal.
A untuk benda yang diawali oleh bunyi mati:consonat sound dan AN bunyi
hidup:vocal sound, bila kata-kata itu diucapkan.
examples: a chair a spoon a sweat a blood
a university
an ant an umbrella an egg
a hour
exercises : .cat
.arrow
..powder
ell

THE disebut difinite article( kt sandang tentu/pasti) dan mengikuti benda yang
dapat hitiung dalam bentuk tunggal. THE memiliki dua bunyi: dibaca DE serta
dibaca DI.
THE/DE, apabila menikuti benda yang di awali oleh consonant dan THE/DI,
apabila mengikuti benda yang di awali oleh vocal.

 Moreover, article the....

The , biasanya di pakai untuk suatu: penemuan, sungai, tempat,alat
musik atau nama orang namun telah berubah fungsi e.g:brand atau
mark.
Examples:
THE/DE; the book, the radio, the musi , the united state of america,
the guitar. the yongky.
THE/DI ; the American, the information, the examination.
Tapi THE bisa juga mengikuti untuk suatu benda yang jamak(plural)
asalkan kata tersebut munculnya dua kali dalam suatu rangkaian
kalimat.
Examples:
The dog chases mice, the mice run into holes. The holes full of ten
kilo litters.
EXERCISES: THE APLLE, THE ONE, THE ASHTRAY, THE
AMERICAN

Economic Activity

A. Read the text.

Most people work in order to earn their living. They produce goods and services. Goods are either
produced on the farms, like maize and milk, or in factories , like cars and paper. Services are
provided by such things as schools, hospitals and shops. Some people provide goods; some provide
services.
And other poeple provide both goods and services. For example , in the same garage a man may
buy car or he may buy some service which helps him to mantain his car.
And the work which people do is called their economic activity. Economic activities make up the
economic system. Thus the economic system is the sum-total of what people do and what they
want. And the work which people undertake either provides what they need or provides them with
money. People buy essential commodities with the money.
B.Try me !
Why do most people work?
What do schools, hospital and factories provide?
What two different things can a man buy in, for example a garage?
What is an economic system the sum-total of?
What do we call the work which people do?

C. Do the same as the example.

The services are useful
The workers provide the services.
The services which the workers provide are useful.
The schools and hospitals are essential.
They provide the schools and hospitals.
The work provide them with money.
People do this work.
The work is called economic activitiy.
We do this work.
The goods are valuable.
He buys the goods.

D. Say which statements are true(T) or false(F).

1. Most people produce either goods or services.
2. And most people do not want to buy non-essential commondities and services.
3. A city has its own economic system.
4. Services are either agricultural or manufactured.
5. Cars and paper are agricultural goods.

TO BE (IS,AM,ARE, WAS AND WERE)

TO BE sebagai copula (kata kerja gabung).Adapun kalau diterjemahkan ia memiliki arti
ADALAH serta ADA bilah di pakai berasama dengan NOUN(kt benda) dan
Adjective(Kt sifat). Namun umumnya ia tidak diterjemahkan.

TO BE befungsi menghubungkan antara SUBJECT dengan PREDICATE: noun, adjective,verb serta adverb.
Dan perluh kita ingat bahwa kalimat secara umum mempunyai tiga bentuk:
1.affirmative(+):adalah/ada,
2. negative(-):bukan/tidak,
3. interrogative(?):apakah.
Examples:
I am a boy (noun)= saya adalah seorang anak laki-laki.
I am not a boy= saya adalah bukan seorang anak laki-laki.
Am I a boy= apakah saya seorang anak laki-laki ?

Untuk penggunaan to be dengan verb, maka verb nya harus ditambakan ING. Yang artinya; sedang
berlangsung suatu pekerjaan/kegiatan.atau disebut juga progressive /continuous form. Ia akan memiliki
makna pasive:telah.(be+verb III)

Siti and Jamal are deligent(adjective)= siti dan jamal(adalah) rajin.

Siti and Jamal are not deligent= sit dan jamal (adalah) tidak rajin.
Are Siti and Jamal deligent= apakah siti dan jamal (adalah) rajin?
You are in (adverb) the classroom: kamu didalam kelas.
You are not in the classroom: kamu tidak didalam kelas.
Are you in the classroom ?: apakak kamu didalam kelas?

Joe is teaching English = joe sedang mengajar bahasa Inggris.

Joe is not teaching English = joe tidak sedang mengajar bahasa Inggris.
Is joe teaching English = apakah joe sedang mengajar bahasa Ingrris ?

I was singing a dangdut last night.=saya sedang bernyanyi dangdut semalam.

I was not singing a dangdut last night=saya tidak sedang bernyanyi dangdut semalam.
Was I singing a dangdut last night =apakah saya sedang bernyanyi dangdut semalam?

Siti was told him about me= siti telah menceritakan ke Dia tentang saya.
Siti was not told him about me= siti telah tidak menceritakan ke Dia tentang say.
Was Siti told him about me ?= apakah Siti telah menceritakan ke Dia tentang saya?

Exercises:
Change into good English
Jamal adalah seorang pelaut.
Apakah kamu telah melihat sebuah jam tangan?
Merekah tidak pandai.
Ahmad, Dany dan saya adalah seorang tentara.
Kami ada di atas atap .

Story 1

There is a boy, name is Donte, where the class call him Donte Pe Ak. Pe ak means. He always makes
troubles for the classroom event when the killer/fierce teacher itself teach. One day the fierce
teacher comes for his lesson. and he asks the student one by one about math. Then Donte turn.
Teacher: Donte, what is ten times ten ..?
Donte : hundreds, sir!
Teacher :well done . One more, ok! Can you draw triangle with the same feet? .
Donte : No, sir ! I draw with my hand not with my foot.
Teacher : silly Donte, Pe ak.
Note:
Pe ak mean not briliant/dump/stupid.
Fierce: buas
Turn : gilran
Times : kali (X)
Triangle : segi tiga
Silly : dasar (tertawa karena hal yang bodoh)

subjective

objective

possessive

possessive

adjective

pronoun

PERSONAL PRONOUN

Personal pronoun:kt ganti orang;

-Subject, didepan/pokok kalimat.
-Object, ditengah/ujung
-possessive, kepemilikan

me

my

Mine

You

you

your

Yours

He

him

his

His

She

her

her

Hers

It

it

its

its

We (speaker included)

us

our

Ours

They (speaker not included)

them

their

theirs

Possessive, kt ganti yang berfungsi sebagai kt ganti empunya/promina persona possessive. serta
possessive adjective, pemakaiannya harus dengan kata benda.
Examples: subjective dan objective
They sing a song
we will send them a present.
She is a nurse
I advise her.
Examples: possessive
This is my girl
this is mine.
This is her dress
this is hers.
That is their home
that is theirs.
Exercises:
- This is not my book and its not (you, your, yours) either.
- They will sell (they, their, theirs) car
- That dog is ( I, my, mine).
- (she, her, hers) is a midwife.
- ( you, your, yours ) school is bigger than ours.
where is (he, his, him ) house ?
- Are those (they,them,theirs) a new pricius car ?
- You arent (he,his,him) girl friend, are you?

DEMONSTRATIVE PRONOUN
Demonstrative pronoun/kt ganti penunjuk adalah kata yang dipakai untuk menunujuk suatu
benda. Dalam hal ini juga dipengaruhi oleh jumlah dan jarak dari benda tersebut.
Kata- kata tersebut adalah: this/these(ini=dekat), that/those(itu:jauh).
-This/that, untuk kt tunggal/singular serta diikuti oleh is dan a/an
-these/those, untuk kt jamak/plural serta diikuti oleh are dan di tamba es/s pada benda.

SINGULAR
This That
This is a cat
That is a nice car
This isnt my book
That is not a cute doll
Is that a deer?
Is this an airplan?

PLURAL
these - those
these are cats
those are nice cars
these arent my books
those are not cute dolls
Are those deers?
Are these airplans?

Story 2
Mike is not well. He was tired all the time, and his head often hurt.
go to doctor his wife said.
Mike did not like to visiting the doctor, but after a week, he went. The doctor asked
him a lot of questions and wrote Mikes answers down.
what do you eat in the morning? He asked him. Egg, bread, jam, butter and coffee
Mike answered.
and what lunch do you have? The doctor asked. meat or fish and bread.
what about in the evening? The doctor asked. Egg and bread.
Then the doctor said eat some fruit every day, and eat all the skin of the fruit. The
skin is very good. Well, Mr what fruit do you like best?
Mike was not answer but being faithless and wishesCoconuts, doc.
Faithless:pingsan
Wishes : suara kecil
1.
2.
3.
4.
5.

Did he eat any fruit ?

Did Mike like to see the doctor?
Why did Mike go to the doctor?
Why Mike get faithless?
What do you think of the story ?

THE SCIENCE OF ECONOMICS

A. Read the text.
Economics is a science. This science is based upon the facts of our everyday lives. And it study our
everyday lives. They study the system which affacts our lives. The economit tries to describe the
Facts of the economy in which we live. He tries to explain how the system works. His methods
Should be objective and scientific.
We need food,clothes and shelter and if we get food, clothes and shelter without working, we
probably would not work. But even we have these essential things, we may want other things.
If we had them, these other things (like radio,books and toys for the children) might make life
more enjoyable.
This science of economics is concerned with all our material needs and wants. It is not just
concerned with basic needs like food, clothes and shelter.

B. Try me.
1.What two things do economists study?
2.What should be the methods of the economists be like?
3. What would be happen if we could get the essentials without working?
4.What is the defferention of economics and economists?
5.What is economics concerned with?

HAVE/HAS

Have/has, mempunyai 2 fungsi;sebagai kata kerja penuh(=mempunyai) serta sebagi

kata kerja bantu(=perfect).
Dalam hal ini kita membahas HAVE/HAS sebagai kata kerja penuh(=mempunyai/memiliki)

HAS

HAVE

SHE

HAS

HAVE

JOE

HAS

YOU

HAVE

CAT

HAS

WE

HAVE

BOOK

HAS

THEY

HAVE

HE

HAS

I and Zaki

HAVE

SITI

HAS

Siti,Iman and Cat HAVE

AFFIRMATIVE

NEGATIVE

INTROGATIVE

Joe has an arrow

Joe has not an arrow

Has Joe an arrow?

We have many books

We have not many books

Have we many books?

The table has four legs

The table has not four legs

Has the table four legs?

Dove has two wings

Dove has not two wings

Has dove two wings?

They have a big house

They have not a big hosue

Have they a big house?

Fish has fins

Fish has not fins

Has fish fins?

Ray and his horse have legs Ray and his horse have not
legs

Have Ray and horse legs?

Trucks have eight wheels

Trucks have not eight

wheels

Have trucks eight wheels?

Siti and pegeon have legs

Siti and pegeon have not

legs

Have Siti and pegeon legs?

Memiliki/mempunyai

Tidak memiliki/mempunyai Apakah

mempunyai/memiliki

Try me, please!

1.
2.
3.
4.
5.
6.

Fill the blanks with has or have!

Rudis sisters..............an interesting book .
..........Jakarta many highest towers ?
Tiger and snake.........long sharp fangs.
Razak...........not big nice balloon.
I and you ........a cute doll in the class.
Mr.Joe , Zack and Ray ..........not an expensive car.

Change into good english!

1. Rusa mempunyai ekor pendek.
2. Burung dan Ahmad mempunyai 2 kaki.
3. Apakah capung dan lebah mempunyai sayap?
4. Lumba-lumba tidak mempunyai kaki.
5. Kami mempunyai tali hitam panjang
6. Joefy memilki 2 orang anak laki-laki.
7. Apakah kamu memiliki seekor gajah?
8. Budi dan saya mempunyai sebuah mobil truk.

WHAT IS BUSINESS ?
A business is an organization. It produces goods and services to make a profit.
Business may be divided into goods and service producing firms. The American
business system is known as private enterprise because the factors of production and
the businesses are owned by individuals. This system is based on the right to private
properties. Here are four factors of production which include machinery,building,tools,
and means of transfortation. To produce goods and services in the private enterprise
system, the four factors of production are obtained from the individuals owning the
businesses in exchange for income.
The human element is the core of business. Business needs people as owners,
managers, and consumers. People need business for the production of goods and
services and the creation of job opportunities. The person responsible for operating
the business is called a manager. And the manager may be the owner or profesional
employed by the owner. A profesional manager attempts to achieve the objectives of
the business.

Employees supply the skills and abilities to provide a product or service. They expect
To recieve a wage or salary for the use of their skills and abilities.
The target of business is consumer. A consumer is a person or business who purchase
a goods or service for personal or organizational use. The consumer, in an economics
system, wants better goods and services. A business enterprise attempts to satisfy
such needs and desires or wants.
The most common motive for setting up business is the profit motive. It is the desire
to make a profit as reward for taking risks of running business. Profit or surplus income is total
sales minus the costs of production. It is a measurement of ones
success. A profit is not always gained, and sometimes the business suffers lossess.

1.
2.
3.
4.
5.
6.

What is the products of a business?

What is a consumer?
What are four factors of producion?
Why human element is called the core of business?
What is a manger?
What do the business owner expect?

Of and s
Of and s dapat digunahkan sebagai bentuk kepunyaan. Of digunahkan untuk benda mati, S
untuk benda hidup(manusia dan binatang).
Dalam hal ini S dapat juga digantikan dengan saja.
+ untuk nama orang yang berakhiran dengan huruf S, maka ditambahkan .
+ untuk nama orang yang berakhiran dengan huruf bukan huruf S, maka ditanbakan S.

OF

S=

THESE ARE THE LEGS OF THE CHAIR

.

THESE ARE JOES LEGS.

THIS IS THE HEAD OF THE COLLEGE.

THIS IS THE COW S HEAD

THOESE ARE NOT THE BOOK OF THE

LIBRARY.

ARE THESE YUNUS BOOKS.

IS THAT THE BACK OF THE CAR ?

THAT IS NOT ALIKAS VIEL.

EXERCISES;
+ isilah dengan of atau s, and
1. The tiger.tail is long.
2. Where is the doorthe house ?
3. John .father is sick.
4. The branch ..the tree is big.
5. Those are Lupus........books, arent they?
= gantilah of dalam kalimat dengan s, and
1. The father of bob is Mr Joearsa al Palimbani.
2. Where is the pencil of Jane ?
3. Is that the chair of your teacher ?
4. This is the dictionary of Jamila.
5. This is the blade of Yunus.

Tom lives near the sea. He has a boat. Every Saturday he goes out in his boat.
Tom has a black coat and white hat. His boat is red. One day he sees a
big fish. He says the fish is going to eat me!

More focus, ok!

Ok, please fill the blanks base on the story above.
Toms friends .near the sea too. Theyboats. Every
Saturday theyout in his boats. Toms friendsblack
coats and white....
Their boats.blue. One day theya big fish. They.the
fish is going to eat!

Adjective
Adjective (kt Sifat) ; colour,age,material,shape,weight,price, appearance quality:
handsome,fat,thin,small,big,ugly,flat,straight etc. And abstract quality:
good,cute,deligent,clever etc.
Adjectiive (kata sifat), dipakai untuk menerangkan kata benda. Adapun adjective mempunyai
tingkat perbandingan.(=Degrees of Comparison) yaitu:
= Positive ( tingkat biasa )
= Comparative ( tingkat lebih )
= Superlative ( tingkat Paling )
A. Perbandingan Beraturan ( regular comparison).

POSITIVE

COMPARATIVE

SUPERLATIVE

TALL

TALLER

TALLEST

BIG

BIGGER

BIGGEST

HAPPY

HAPPIER

HAPPIEST

NARROW

MORE NARROW

MOST NARROW

FLUENT

MORE FLUENT

MOST FLUENT

DIFFICULT

MORE DIFFICULT

MOST DIFFICULT

B.Perbandingan Tak Beraturan ( Iregular Comparison).

POSITIVE

COMPARATIVE

SUPERLATIVE

GOOD

BETTER

BEST

BAD

WORSE

WORST

MANY

MORE

MOST

MUCH

MORE

MOST

LITTLE

LESS

LEAST

FAR

FARTHER

FARTHEST

# CATATAN
Tingkat perbandingan dibentuk dengan tambahan akhiran ER/MORE untuk
Comparative/tingakt lebih Serta EST/MOST untuk Superlative/tingkat paling(ter)
Penambahan ER/EST untuk kata sifat yang terdiri dari satu suku kata(bila
diucapkan),
juga untuk semua kata sifat yang terdiri dari dua suku kata(bila diucapakan)
yang berakhiran dengan Y dan OW.
kata yang terdiri dari satu kata(bila diucapkan), namun di akhiri dengan sebuah
huruf
mati yang didahului oleh sebuah huruf hidup. Maka huruf mati akhir harus diulang.

POSITIVE
Bob is tall
Jakarta is a big city
Mary is beautiful

COMPARATIVE
Bob is taller than John
Jakarta is bigger than Bandung
Mary is more beautiful than Suesan

Tim is an honest boy Tim is more honest than Bill

This book is good
This book is better than that one

SUPERLATIVE
Bob is the tallest boy in the class.
Jakarta is the biggest city in Indonesia
Mary is the most beautiful girl in our village

Tim is the most honest boy among us

This book is the best of all

Untuk comparative /lebih untuk membandingkan dua benda + than. Dan untuk
superlative/paling/ter..+ the
Untuk membanding dua benda yang yang mempunyai dua sifat yang sama =
.as..as
Joe is as tall as Hamdan : JOE SAMA TINGGINYA DENGAN HAMDAN

Exercises
1. Jim is ( old,older,oldest) than Ben.
2. That house is (big,bigger,biggest).
3. Mr Joko is the (careful,morecareful, most careful) man.
4. Is george a(good,better,best) student ?
5. Anna is not (rich,richer, richest) than Betty.
6. Is Mary (short,shorter,shortest) than Jane ?
7. Who is the(lazy,lazier,laziest)in your class ?
8. This (bad,worse,worst) book is not mine.
9. Car is (expensive, more expensive, most expensive) than bicycle.
10. Is Paris the (beautiful, more beautiful, most beautiful) city in the world?

POSITIVE
FAT
CARELESS
HIGH
INTELLEGENT
LONG
ATRRACTIVE
THIN

COMPARATIVE

SUPERLATIVE

Mr White found work in small town, and he and his wife

sold their house in London and bought one in the new
town. Mr White went to work by bus every day with
some of his new neighbors.
Last month he was on the bus and one of his new
neighbors was in front of him. Mr White said to him,
one of my teeth is hurting very badly. Is there any good
dentist here ?.
You dont want a dentist answered the naighbour. one
of my teeth hurt a lot yesterday too. But my wife put
her arms round me and kissed me, and the tooth
stopped hurting. Go and try that too.
Mr White stood up Good he said happily, where is
your wife now ?

TENSES
Present tense = kebiasaan/kebenaran umum.
Often, always, usually, sometime ;diletakan setelah subject.
Every morning, every week, every year; diletakan di ujung kalimat(umumnya)
Untuk kalimat affirmative( + ) yang subjectnya: she, he it. Verb nya ditambah es/s.

Es di ta
SHE,HE,IT

THEY,WE,I,YOU

CRIES

CRY

WATCHES

WATCH

BRUSHES

BRUSH

DRINKS

DRINK

GOES

GO

mEs di tambahkan untuk Verb yang

Berakhiran dengan huruf ch,s,sh,x
z,ss serta y yang didahului huruf mati
Dan Y berubah menjadi i
bahkan untuk Verb yang

Berakhiran dengan huruf ch,s,sh,x

z,ss serta y yang didahului huruf mati
Dan Y berubah menjadi i

Penggunaan Do/does untuk kalimat

Negative dan interrogative.

Affirmative

Negative

I drink milk everyday.

He always studies English
They sometimes go cinema
Robert plays football every Sunday

Melakukan/...............

I do not drink milk

He does not always study English
They do not sometimes go to cinema
Robert does not play football every Sunday

Tidak melakukan.......................

Characteristics

Every
Always, sometime, usually......
Siti eats banana everyday.
Everyday, siti..
She/he/it : v + es/s +
Buy + s
Cry + es
Play + s
Study + es

Interrogative
Do I drink milk ?
Does he always study English?
Do they sometimes go to cinema ?
Does Robert play football every Sunday ?

Apakah melakukan...................

Past Tense = kejadian/perbuatan yang telah terjadi pada waktu lampau.

Yesterday, last night, last week, last month : diletakkan pada akhir kalimat.

Untuk kalimat Affirmative ( + ), kata kerja dasar berubah menjadi kata kerja ke 2
dengan ditambahkan D/ED.

Ada 2 macam bentuk lampau, yaitu: Kata Kerja Beraturan (Regular Verb) dan Kata
Kerja Tak Beraturan (Irregular Verb).
Regular Verb

Irregular Verb

Hoped
Worked
Studied
Played
Cleaned
Fixed
Permitted
Gathered
Washed
Talked

Cut
Came
Bought
Ate
Drank
Built
Caught
Ran
Put
Sold

D ditambahkan pada kata kerja yang berakhiran

huruf E, sedangkan ED ditambahkan pada kata
kerja yang berkahiran huruf X, W serta Y yang
didahului huruf mati dan Y berubah menjadi I,
dan jika kata kerja berakhiran huruf mati,
didahului huruf hidup, diucapkan satu suku kata
saja,maka huruf mati harus diulang.
DID digunakan untuk kalimat negative
dan interrogative. Untuk kalimat
negative, kata kerja bentuk lampau
diubah menjadi bentuk dasar
(Infinitive).

AFFIRMATIVE SENTENCE

NAGATIVE SENTENCE

INTERROGATIVE SENTENCE

I worked in the garden yesterday. I did not work in the garden yesterday. Did I work in the garden yesterday?
He ate rice last night.
He did not eat rice last night.
Did he eat rice last night?
They played badminton last week. They did not play badminton last week. Did they play badminton last week?
The children drank milk last month. The children did not drink milk last month. Did the children drink milk last
month?
Mary bought a new book last week. Mary did not buy a new book last week. Did Mary buy a new book
last week?

Telah melakukan...

Characteristics

V 2 (+)
-/? ---- V1 , did.
Siti Markona went to jakarta.
Siti M did not go..
Did Siti go.

Tidak telah melakukan......

Apakah telah melakukan......

Types of Business Organization

Sole Proprietorship
A Sole Proprietorship consists of one individual doing business. Sole Proprietorships are the most numerous form
of business organization in the United States, however they account for little in the way of aggregate business
receipts.
Advantages
Ease of formation and dissolution. Establishing a sole proprietorship can be as simple as printing up business cards
or hanging a sign announcing the business. Taking work as a contract carpenter or freelance photographer, for
example, can establish a sole proprietorship. Likewise, a sole proprietorship is equally easy to dissolve.
Typically, there are low start-up costs and low operational overhead.
Ownership of all profits.
Sole Proprietorships are typically subject to fewer regulations.
No corporate income taxes. Any income realized by a sole proprietorship is declared on the owner's individual
income tax return.

Disadvantages
Unlimited liability. Owners who organize their business as a sole proprietorship are personally responsible for the
obligations of the business, including actions of any employee representing the business.

Limited life. In most cases, if a business owner dies, the business dies as well.

It may be difficult for an individual to raise capital. It's common for funding to be in the form of personal savings or
personal loans.
The most daunting disadvantage of organizing as a sole proprietorship is the aspect of unlimited liability. An advantage
of a sole proprietorship is filing taxes as an individual rather than paying corporate tax rates. Some hybrid forms of
business organization may be employed to take advantage of limited liability and lower tax rates for those
businesses that meet the requirements. These include S Corporations, and Limited Liability Companies (LLC's).
Where S-Corps are a Federal Entity, LLC's are regulated by the various states. LLC's give the option for profits from
the business to pass through to the owner's individual income tax return.

Partnership
A Partnership consists of two or more individuals in business together. Partnerships may be as small as mom and pop type
operations, or as large as some of the big legal or accounting firms that may have dozens of partners. There are different
types of partnershipsgeneral partnership, limited partnership, and limited liability partnershipthe basic differences
stemming around the degree of personal liability and management control.
Advantages
Synergy. There is clear potential for the enhancement of value resulting from two or more individuals combining strengths.
Partnerships are relatively easy to form, however, considerable thought should be put into developing a partnership
agreement at the point of formation.
Partnerships may be subject to fewer regulations than corporations.
There is stronger potential of access to greater amounts of capital.
No corporate income taxes. Partnerships declare income by filing a partnership income tax return. Yet the partnership pays
no taxes when this partnership tax return is filed. Rather, the individual partners declare their pro-rata share of the net
income of the partnership on their individual income tax returns and pay taxes at the individual income tax rate.

Disadvantages
Unlimited liability. General partners are individually responsible for the obligations of the business, creating personal risk.
Limited life. A partnership may end upon the withdrawal or death of a partner.
There is a real possibility of disputes or conflicts between partners which could lead to dissolving the partnership. This
scenario enforces the need of a partnership agreement.
As pointed out, unlimited liability exists for partnerships just as for sole proprietorships. One way to alleviate this risk is through
Limited Liability Partnerships (LLP's). As with LLC's, LLP's may offer some tax advantages while providing some risk protection
for owners.

Corporation
Corporations are probably the dominant form of business organization in the United States. Although fewer in number,
corporations account for the lion's share of aggregate business receipts in the U.S. economy. A corporation is a legal entity
doing business, and is distinct from the individuals within the entity. Public corporations are owned by shareholders who
elect a board of directors to oversee primary responsibilities. Along with standard, for-profit corporations, there are
charitable, not-for-profit corporations.
Advantages
Unlimited commercial life. The corporation is an entity of its own and does not dissolve when ownership changes.
Greater flexibility in raising capital through the sale of stock.
Ease of transferring ownership by selling stock.
Limited liability. This limited liability is probably the biggest advantage to organizing as a corporation. Individual owners in
corporations have limits on their personal liability. Even if a corporation is sued for billions of dollars, individual shareholder's
liability is generally limited to the value of their own stock in the corporation.
Disadvantages
Regulatory restrictions. Corporations are typically more closely monitored by governmental agencies, including federal,
state, and local. Complying with regulations can be costly.
Higher organizational and operational costs. Corporations have to file articles of incorporation with the appropriate state
authorities. These legal and clerical expenses, along with other recurring operational expenses, can contribute to budgetary
challenges.
Double taxation. The possibility of double taxation arises when companies declare and pay taxes on the net income of the
corporation, which they pay through their corporate income tax returns. If the corporation also pays out dividends to
individual shareholders, those shareholders must declare that dividend income as personal income and pay taxes at the
individual income tax rates. Thus, the possibility of double taxation.

Production in economics

Production is a process of combining various material inputs and immaterial inputs (plans, know-how) in order to make
something for consumption (the output). It is the act of creating output, a good or service which has value and contributes
to the utility of individuals.
Economic well-being is created in a production process, meaning all economic activities that aim directly or indirectly to
satisfy human needs. The degree to which the needs are satisfied is often accepted as a measure of economic well-being. In
production there are two features which explain increasing economic well-being. They are improving quality-price-ratio of
goods and services and increasing incomes from growing and more efficient market production.
The most important forms of production are
market production
public production
household production
In order to understand the origin of the economic well-being we must understand these three production processes. All of
them produce commodities which have value and contribute to well-being of individuals.
The satisfaction of needs originates from the use of the goods and services which are produced. The need satisfaction
increases when the quality-price-ratio of the goods and services improves and more satisfaction is achieved at less cost.
Improving the quality-price-ratio of goods and services is to a producer an essential way to enhance the production
performance but this kind of gains distributed to customers cannot be measured with production data.
As a source of economic well-being
In principle there are two main activities in an economy, production and consumption. Similarly there are two kinds of
actors, producers and consumers. Well-being is made possible by efficient production and by the interaction between
producers and consumers. In the interaction, consumers can be identified in two roles both of which generate well-being.
Consumers can be both customers of the producers and suppliers to the producers. The customers well-being arises from
the commodities they are buying and the suppliers well-being is related to the income they receive as compensation for the
production inputs they have delivered to the producers.

Stakeholders of production
Stakeholders of production are persons, groups or organizations with an interest in a producing company. Economic wellbeing originates in efficient production and it is distributed through the interaction between the companys stakeholders.
The stakeholders of companies are economic actors which have an economic interest in a company. Based on the similarities
of their interests, stakeholders can be classified into three groups in order to differentiate their interests and mutual
relations. The three groups are as follows:

Interactive contributions of a companys stakeholders (Saari, 2011,4)

Customers
Suppliers
Producers

The interests of these stakeholders and their relations to companies are described briefly below. Our purpose is to establish
a framework for further analysis.

Customers
The customers of a company are typically consumers, other market producers or producers in the public sector. Each of
them has their individual production functions. Due to competition, the price-quality-ratios of commodities tend to improve
and this brings the benefits of better productivity to customers. Customers get more for less. In households and the public
sector this means that more need satisfaction is achieved at less cost. For this reason the productivity of customers can
increase over time even though their incomes remain unchanged.
Suppliers
The suppliers of companies are typically producers of materials, energy, capital, and services. They all have their individual
production functions. The changes in prices or qualities of supplied commodities have an effect on both actors (company
and suppliers) production functions. We come to the conclusion that the production functions of the company and its
suppliers are in a state of continuous change.
Producer community
The incomes are generated for those participating in production, i.e., the labour force, society and owners. These
stakeholders are referred to here as producer communities or, in shorter form, as producers. The producer communities
have a common interest in maximizing their incomes. These parties that contribute to production receive increased incomes
from the growing and developing production.

Main processes of a producing company

A producing company can be divided into sub-processes in different ways; yet, the following five are identified as main
processes, each with a logic, objectives, theory and key figures of its own. It is important to examine each of them
individually, yet, as a part of the whole, in order to be able to measure and understand them. The main processes of a
company are as follows:

Real process
Income distribution process
Production process
Monetary process
Market value process