Pros and Cons of Partnership as a Form of Ownership Essay

Q.1 Identify the pros and cons of the alliance as a condition of ownership?A partnership is organize when cardinal or more bulk engage in a art activity and sh atomic number 18 investment, service and loss. Just like any newfangled(prenominal) form of ownership, it has its advantages and disadvantages. by-line we discuss some of the pros and cons of a partnership.Pros of the Partnership(1) quilt of Formation Partnership is comparatively simple to form. All you need to form a partnership is an agreement. A verbal agreement is enough to fix a partnership however it is very untold recommended that partnership be formed based on a written legal partnership agreement.(2) financial realise Partnerships frequently have a depleted wampumup monetary value. With deuce or more people investing capital in the company, the air pull up stakes have a much stronger financial ground. Two or more people chiffonier as well have better access to after-school(prenominal) funds ne cessary to disembowel the business(3) Divided Responsibility In a partnership responsibilities of speed a business are shared step to the fore by the owners. Shared responsibilities ease the conk load on individuals and butt end also increase intersection pointivity by splitting responsibilities in a stylus that individuals can exercise their special skills to maximize the kayoedput.(4) Support Owning and running a business can be very demanding, challenging and stressful. Having a business partner can give you a little two-eyed violet of mind beca engagement a partner can provide moral support when needed.(5) Taxation The income service/loss in a partnership flows through and through the business to individual partners for taxation. In other words the partners are taxed simply on the raw material of face-to-face income i-e how much loss or profit a partner endured.Cons of Partnership(1) Liability In a partnership both partners have un-limited liability (not in LP and LLP). Both partners are amenable for not only their own actions but also the actions of their partners. So, if your partner fails to remuneration a debt, you personally are responsible for paying that debt and vice versa. If soul sues the partnership and the business doesnt have enough coin to conduct the expenses than the partners personal as particularizes allow be at stake.(2) Conflicts and Disagreements Partnerships are for the coarse terminal figure and over the course of epoch conflicts arise and disagreement happens. Whether these are personal or management style conflicts. They can adversely affect the business. When general partners dont agree it can delay the decision take shape time of the company and a bad conflict is enough to dispel a partnership.(3) Dependence on Partners The success of any partnership depends intempe layly on contribution from all partners. If a partner withdraws the business will be crippled, if a partner dies the partnership can die wi th him. notwithstanding you cant make any business decision on your own youre dependent on your partner.(4) Difficulty Withdrawing It is not that open to jack off out of a partnership. Whoever needs to withdraw will be personally liable for any monetary obligations due at the time of withdrawl.Q.2 Discuss funding options for small business?In order to run a business you need capital. Getting the money together to start a new business is the top priority of any entrepreneur. thither are several ways to finance a small business. Following are some options for financing a small business.(1) Personal Resources exploitation your own assets is the most common form of small business financing. You can use money from your saving, ask family or friends for capital or use a credit card.(2) Loans In order to startup a new business, entrepreneur borrows money from the banks. The banks charge an refer rate on the money lent. The business owner mustiness pay the original money borrowed con firming the accumulated interest over the life of the contribute. In todays economy it is not easy to secure a commercial loan with the bank. A better and easier way for a new business to get a bank loan is with loan guarantee from the SBA.(3) apotheosiss Investors Another way to fund a small business is by private investors. Angel Investors are individuals who have a lot of money and are feeling to invest a large amount into a profitable business for financial gain and profits.(4) Venture Capital The companies who fund promising and blue potential companies in exchange for ownership shares are k immediatelyn as venture capital firms. Venture capital is the money provided by venture capital firms to startup businesses that are perceived to have a long term growth potential. It has a high risk for investor but also has potential for above average profit returns.3. Determine and discuss how managerial be can help managers with increase tolling, incremental analysis and budgeti ng?managerial accounting provides accounting reading needed by managers inside an geological formation to run its day to day operations. It provides managers with financial breedings needed to make sound business decisions. Managerial accounting information includes budgeting, harvest-home costing, performance reports, variance analysis and financial ratios.Following we look at three managerial duties that rely on information received from managerial accounting(1) harvest-feast Costing Product costing is the butt of accurately position the cost of a single result, by analyzing all the expenses that accumulated from the beginning (raw material) to the end (sale). In traditional costing method corroborative be are applied to products, based on an overhead rate that is predetermined. The traditional costing system is easier and much simpler but fails to add the cost of non-manufacturing goods that are associated with the production of that item.(2) Activity base Costing Act ivity Based Costing is a new method in costing. Its much more complicated that the traditional costing system. ABC gives a much more accurate product cost. Under activity based accounting associated with production of an item is determined and priced. This priced activity is than assigned to every product that requires the prices activity for production. Managerial accounting provides managers with the financial information needed to determine the cost of a manufactured product.(3) Incremental abbreviation Incremental Analysis is a decision making tool. It is used for the analysis of financial information needed to make an informed decision. In incremental analysis two different options are weighed out in terms of cost/profit and the impact of the outcome of this analysis will have on a particular decision.It basically points our related cost and revenue of each alternative and the impact this alternative will have on future income. afterward using incremental analysis and choosi ng one alternative over the other. The cost change that occurs due to choosing the alternative is called incremental cost. Managerial accounting provides us with the numbers needed to compare two different alternatives, pick the in force(p) one and analyze the difference in cost.Budgeting It helps managers plan and control costs and revenues. Budgeting is a tool for managers to determine how much money needs to be spent in order to generate a certain train of income. Budgeting in simple terms can be called forecasting in budgeting we prepare a very full pointed statement of financial results that are likely to happen in a time period to come. Companies use budget to plan for a future period based on financial statements. Managerial accounting provides managers with the financial statement for budgeting.Q4. Discuss the basic components of the selling process using the product or service of your natural selection as an example? market strategy can be expound as an activity to p osition a product, attract customers while promoting the interest of stakeholders in a business. Marketing makes it possible to communicate the value of a product or service to consumers.Following the basic components of marketing process is explained briefly using artificial jewellery as a product.(1) Product scheme Methodologies, tools and technology used by a business to break up and distinguish its product from its competitors, is called product strategy. In terms of artificial jewellery my strategy would be to describe my product in full detail including where it was made, who it was designed by and what metals were used in its formation. I would also set my product apart by choosing appealing packaging and I would approve the quality of my product by giving guarantees. And above all I would provide exemplary product designs and excellent customer service.(2) Pricing scheme Pricing Strategy is very important in marketing because it generates a turnover for the company and its also important because it affects other components of marketing as well. In terms of artificial jewellery first I would do a thorough research on competition prices, than I would calculate my final cost and select a pricing objective. I would compare my sale price with that of my competitors, and make sure that my price is dishonor than the competitors and value of my product is higher than the competition. Initially, I would keep my profitability low and will try to build clientele base by providing unvanquishable prices.(3) Distribution Strategy Distribution plays a very important theatrical role in marketing strategy. It involves how well the final product is delivered to the consumer. The product must be delivered to the end user in the right quantity, at the purify date and time. In terms of artificial jewelry most of my sales will be distributed at shows and festivals organized by different entities and a major part of my sales is also going to be mesh based. I will c ontact different shipping companies to find out the best courier in terms of price and value. And ship my jewelry through the best medium, at minimum amount of tie.(4) Promotion Strategy Promotion Strategy is also vital part of marketing. A progress strategy includes all the ways used by companies to provide information about their product in such a way that it would lastly increase the companys sale. In terms of artificial jewelry I would offer some sort of coupon and advertise my discount. oblation free shipping (when possible), maintain customer relations and send out promotional information to existing clients.Q.5 Discuss the role of social responsibility and technology in the marketing function.Social Responsibility in Marketing Being socially responsible for an organization means that it cares and shows concerns about the people and environment in which they conduct business. Marketing can be expound as promotion, selling and distribution of a product.Social responsibiliti es in marketing would first of all include truth telling about their product , all the information about the product should be correct and up to date. Companies should be concerned about their environment and take steps to make a cleaner. Companies should also show support for social causes in marketing. follow should market their product in a way that it doesnt relegate any group of people.engineering in Marketing The technological inflate in the past years had definitely revolutionized marketing. The internet has created numerous marketing opportunities for businesses. Now days there are numerous marketing firms that work exclusively on the internet. At first radio changed marketing, than TV and now its the age of hand held devices and internet.Marketers now days know that continuous technological advances require evolution in the marketing process. With technological advances its much simpler and quicker to get customer feedback. It is much simpler to deliver the product to t he customer and to do market research and maintain your brand reputation. Technology had had a great impact on marketing.