time, incorpora tion is envisaged as a potential form of business organization, depending upon business growth, tax laws, and the number of family members involved in the operation.
Management responsibilities for the business will be shared by the two partners. Similarly, the operational respon sibilities for the business will initially be shared by these
1 2two individuals. The hiring of additional employees is plannedas business volume expands.
The facility required for the business will be leased. Retail, warehouse, maintenance, and office space is required. Equipment required for operation of the business is listed in Table 1, which may be found beginning below on this page. The on hand or to be acquired status of each item of equipment is also indicated, together with equipment values. Those items which are on hand are owned free and clear by the partners. These items of equipment will be capitalized, when the business is organized. It is anticipated that all equipment will qual ify for depreciation over a five year time period, with no residual values projected.
Those items of equipment which are to be acquired will require external financing. It is anticipated that external financing will be available at 11 percent (Schilit, 1987). The total values for both (1) equipment now on hand, and (2) equip ment to be acquired are also indicated.
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Item Status Value ($)
On Hand To Be
Acquired
Dump truck To be acquired 16,000
[table continued on following page]
[table continued from preceding page]
Item Status ...