William Penn Life, 1996 (31. évfolyam, 1-12. szám)
1996-09-01 / 9. szám
Page 2, William Penn Life, September 1996 William Penn LIFE Official Publication of the William Penn Association Published Monthly Office of Publication: 709 Brighton Road Pittsburgh, PA 15233 Phone: 412/231-2979 Third Class U.S. Postage Paid Pittsburgh, PA Permit No. 2724 George S. Charles, Jr. Editor-in-chief Frances A. Furedy Richard W. Toth Associate Editors John E. Lovász Managing Editor NATIONAL OFFICERS George S. Charles, Jr. National President Frances A. Furedy National V.P./Treasurer Richard W. Toth Acting Secretary BOARD OF DIRECTORS Michael J. Hrabar Chairman Roger G. Nagy Vice Chairman Elmer A. Furedy Vice Chairman Anthony C. Beke Louis A. Fodor Barbara A. House Michael R. Kara Andrew W. McNelis George F. Mirkovich Michael F. Tomcsak Elmer W. Toth Frank J. Wukovits, Jr. Frank J. Radvany Secretary of the Board AUDITING COMMITTEE Charles J. Furedy Chairman Margaret H. Boso Secretary Dennis A. Chobody Joseph Hamari Robert A. Ivancso Ernest J. Mozer, Sr. CONSULTANTS Bruce & Bruce Company Actuary Horovitz, Rudoy & Roteman C.P.A. Rothman Gordon Foreman &c Groudine, P.C. General Counsel Dr. Julius Kesseru Medical Director Unsolicited articles, letters, manuscripts, pictures and other material submitted to the WILLIAM PENN LIFE are forwarded at the owner's risk, and the WILLIAM PENN LIFE expressly denies any responsibility tor their safekeeping or return The WILLIAM PENN LIFE reserves the right to edit, revise or reiect any article submitted for publication. Postmaster: If undelivered, please send form 3579 to: William Pe in Association 709 Brighton Road Pittsburgh, PA 15233 WPA hosts successful language camp Participants at our language camp were: (seated, l-r) Lori M. Farkas, James J. Farkas, Frank Kossky, Loma Devine, Phyllis Zugrovich, Dolores Mofnar, John Palasics, Kati Palasics, Janet Palmquist, Kara Kurtz and Albert Kurtz; (standing, l-r) Prof. August J. Molnár, Gabriella Gally, Mary Beth Hassan, Janice Perison, William Zugrovich, Steve Molnár, Veress Taylor Mary (Mimi), Alex Sabo, Susann Veress Winnans, George W. Toth, George Toth, National Director Elmer Toth. Not pictured is National Director Louis A. Fodor (he took this photo). By Louis A. Fodor National Director ROCKWOOD, PA — Just as the Olympics were winding down, 18 members registered for the 7th Annual Hungarian Language Camp were gathering at beautiful Penn Scenic View in Rockwood., The camp ran from Aug. 4 to 10 under the guidance of National Director Louis A. Fodor, assisted by National Director Elmer W. Toth. Welcoming the students at the registration desk were National Vice President- Treasurer Frances A. Furedy and Home Office employee Debra S. Evans. Monday morning a presentation was given by Prof. August J. Molnár, president of the American Hungarian Foundation of New Brunswick, N.J. He touched on the origins of the Hungarians and their journey to present-day Hungary on Aug 15,896. He also discussed his recent trip to Hungary during which he acted as a guide between the sister cities of New Brunswick and Debrecen, Hungary. The students then broke into two groups. Beginners were taught by Gabriella Gally, and the intermediate group was taught by Dr. John Palasics and his wife Kati. In the evening students listened to a recitation by Director Fodor on holiday customs in Hungary. He then played the violin while students sang the slow (hallgató) and other songs (csárdás). The evening ended with the showing of the video, "Hungary: Land of Hospitality.” Similar routines were repeated on Tuesday and Wednesday evenings. On Thursday evening the students presented a talent show with singing, recitation and acting, all of which were done in Hungarian, before an audience that included Board Chairman Michael J. Hrabar and his wife Anna. Afterwards, everyone tried the Hungarian dances demonstrated by Dr. and Mrs. Palasics, including the csárdás, polka and waltzes. Friday we were honored to welcome special guests Endre Csornán and his wife Arlene from the Hungarian Reformed Federation of America. Also present from the Association were former National President Gay B. Banes, retired National Director William C. Kohut and Acting Secretary Richard W. Toth, who all greeted the students. The Home Office donated gifts to all the participants, and the evening was topped off with the traditional bacon roast. Everyone thought they had gained weight and will have to work on a diet. All agreed that this was one of the best language camps we have held, and many expressed the desire to come again. It takes two ♦ ♦ ♦ or more By Emil W. Herman, Esq., General Counsel In my last article I discussed doing business as a sole proprietorship, and the advantages and disadvantages of that form of business entity. This article will address operation of the business as a partnership. If you are starting your small business with the financial or other assistance of one or more people who will be entitled to a share of the profits or will share the losses, you cannot operate as a sole proprietorship. One alternative arrangement is a partnership. There are two types of partnership—general and limited. In a general partnership, each of the partners has a right to participate in partnership decision-making to the extent of his owernship interest, and share in partnership profits and losses to the extent of that ownership interest. A partner’s share of profits and losses, however, does not extend to liability for partnership debts, and this is the major disadvantage of a general partnership—each general partner has full personal liability for partnership debts, which means that his or her liability for those debts can be greater than the ownership interest. For instance, consider rich Uncle Harry, who gave you $500 to start up your new restaurant, and became a 5% general partner. He would stop by weekly to see how things were going, but otherwise did not actively participate in the restaurant business. If someone successfully sued the restaurant because he got sick on the food, however, Uncle Harry might find that he alone was paying that debt. This is because, although the judgment obtained by the sick patron was against all partners, the person holding the judgment can attach the assets of any one or more of the partners to satisfy the debt. Uncle Harry’s assets might be the easiest to attach, and he could end up having his assets used to pay the entire judgment, and not just 5% of it. While he is entitled to a contribution from the other partners, if they do not or cannot reimburse him, he may himself be sick—that he ever became a partner in the venture. The main advantage of a general partnership, aside from the potential of increased investment and sharing of responsibility, is that there is no extra layer of taxation for the partnership. Rather, profits and losses of the partnership are distributed to the partners in proportion to their ownership interests, and taxed at the partner, rather than the partnership, level. The main disadvantage, as with the sole proprietorship, is the unlimited personal liability, as mentioned above. The same ways of reducing risk mentioned in last month’s article on sole proprietorship can also apply here. Another type of partnership, the limited partnership, can reduce the risk of personal liability for some partners. In a limited partnership there are two types of partners—general partners and limited partners. General partners are responsible for the day to day management of the partnership. Limited partners, however, are responsible only for their cash contribution to the partnership. They may not participate in partnership decision-making, or they will lose their status as limited partners. Limited partnerships also have only one level of taxation—at the partner’s level, and not at the partnership level. General partners in the limited partnership continue to have unlimited liability for partnership debts. The benefit of a limited partnership is that limited partners have no personal liability. The most a Limited partner is at risk for is the amount contributed to obtain the limited partnership interest. If Uncle Harry had been a limited partner in your restaurant, his assets could not have been attached to satisfy partnership debt. A limited partnership, therefore, is an entity useful when there are people willing to invest and share profits, but who do not wish to manage the business or take significant risk. General partnerships can be formed without any action on the part of the partners in most states—the partners do not even have to realize they have formed a partnership. Limited partnerships, however, must usually be registered with the state in which the partnership is located, and at least the general partner! s) identified, in some states, a limited partnership interest is considered a security, and the partnership may be required to register with the securities department of the state and the Securities and Exchange Commission, unless an exemption from registration is available. The most important aspect of both limited and general partnerships is the relationship of the parties. A detailed partnership agreement developed before the partnership is formed, or soon thereafter, can avoid major problems for the partners if disputes develop later in the business life of the partnership. Partnership agreements detail how someone becomes a partner, and stops being a partner. Most states permit a partner to withdraw from a partnership at any time, and dissolve the partnership by doing so, unh“’ partnership agreement provides otherwise. The dangdissolution should encourage every partner to in' ‘ ship agreement be in place before beginning F If you have any topics you would like us to send them to: Emil W. Herman, Esa Grant Building, Pittsburgh, PA 15" space considerations, interest to legal discussions.
