Corporation: A business concern where there is a separate legal entity and are owned by shareholders are classified as corporation. Transfer of ownership and raising funds are easy in this form of organization. No personal legal liability exists among the shareholders.

The reasons for financial troubles in a construction company:

• Inefficient financial management system.
• Improper management of the projects.
• Excessive line of credits and borrowings.
• Improper estimation or poor reporting of job cost.
• Uncomprehensive or restricted business plan.