Choosing A Suitable Business Structure

When it comes to partnerships Alex, Bill, Carl, and Devon will have two options- a general partnership or a limited partnership. Partnerships are beginning to be a business form of the past. Once upon a time, partnerships were “the default form of business and provided the benefit of pass-through taxation, but lacked the important feature of limited liability” (Chrisman, 2010, p. 465). In a general partnership, each partner associated with the entity will be held liable for their own business decisions as well as

The below table compares and contrasts business structures on the basis of the most common issues, naming: taxation, liability, risk and control, continuity of existence, transferability and expense and formality (Quickmba, n.d.). Also, you will notice that in the table the similarities are extended from one structure to the other, while differences are kept in separate cells.

The partnership is a form of business that could be possible in Shania’s scenario due to the other individuals showing interest in the business idea. She can create a partnership with one or more persons and sharing of the profits is divided equally, unless an agreement states otherwise (Kubasek, et al., 2015, p. 423). Some of the benefits of a partnership are the ability to raise more capital and to share ownership responsibilities (Block, et al., 2015, p. 9). With committed partners it is possible to have a successful partnership.

Our business is a partnership type of business because it’s owned by two people. Through our partnership, we will increase the level of our business, making decisions and implementation of changes can be fast, and we cover each other for holidays and

· More capital- a number of people together can inject more finance into the business than one person alone. · Expansion- with the new skills, increased labour and greater capital a partner brings the business will have an increased potential for future growth. Disadvantages of Partnership = ==

The forms of business organization that Helena and Francine could form are a sole proprietorship, a partnership or a corporation. First, they could start a sole proprietorship, which is a type of business that one person owns and operates. They could do this type of business if only one of them plans to operate the business, and only one of them plans to be liable for it.

For this assignment my task is to choose two contrasting businesses within the Borough of Newham and describe the type of businesses, purpose and ownership. One has to be a large profit making business, like PLC or Ltd, and the other a small business, profit, not-for-profit, sole trader, partnership or small ltd. For the first business, I have chosen one of the largest retail in the world, Tesco PLC, and for the second I have chosen the charitable organization, Cancer Research UK, that is a not-for-profit business.

Legal Structure of a Business Orgnanisation Business organisations are the different legal forms a business can adopt. The key distinction is that some businesses provide limited liability for any debts the business incurs. Others have unlimited liability - which obviously doesn't [IMAGE]Unincorporated Incorporated Up Arrow Callout: Sole-trader Up Arrow Callout: Partnership Up Arrow Callout: Private Limited Company (ltd)

Furthermore, both parties entered into a shared business partnership. Justice Dixon in a judgement discussed a partner relationship as “a stronger case of fiduciary relationship… ‘Their mutual confidence is the lifeblood of the concern. It is because they trust one another that they are partners in the first instance; it is because they continue to trust one another that the business goes on’ … The relation is based, in some degree, upon a mutual confidence that the partners will engage in some particular kind of activity or transaction for the joint advantage only. In some degree, it arises from the very fact that they are associated for such a common end and are agents for one another in its accomplishment.” The culmination of friendship and the above considerations by Justice Dixon strengths that fact that the relationship in its totality is one that equity would assign as a fiduciary

There are three main types of business organizations the Cardigans can file their home decor business as, one sole proprietorship, two partnerships and three corporations. Sole proprietorship is the simplest form of business organization. Usually in sole proprietorship one person has complete control of their business;however, one assumes all liabilities. According to Miller (2013), “The sole proprietor is free to make any decision she or he wishes concerning the business—including whom to hire, when to take a vacation, and what kind of business to pursue” (Miller, 2013, p. 445). A major disadvantage of the sole proprietorship concept is that a person has unlimited liability. Since sole proprietorship consist of one person let 's use Cora

As any good businessman should do, all options were weighed, which included the idea of a partnership. This is a positive choice when it comes to the fact that your profits are only taxed once and a partnership certificate can be bought easily and locally.5 A partnership also brings in other ideas, as well as generates other people's money. This makes it easier to gather the startup costs and get the business going. A partnership also opens the doors for expansion of my business because of the possible connections my partners might have.

Partnership is the relation which subsists between persons carrying on a business in common with a view of profit. There are four conditions in which all must be satisfy are the followings:

The second legal form of business is a partnership. This form of business combines the partners financial and skill resources. On the down side, it requires a partnership agreement and the partners may not always agree on important business topics. The partners are still personally liable for all debt and legal actions. This form of business could answer the skill set issues needed to start the firm. It could also allow for a low startup cost do to the partners polling their money. (Holland, 1998, para. 3)

For centuries hundreds of partnerships have been formed some lasted short period and many have been running since long. Partnership in simple terms is an agreement done orally, under seal or inferred by the course of businesses between two or more people to finance and operate a business. I believe it is an agreement that is relatively easy to establish as compared to forming a company. It all depends on the factors such as taxation, type and size of business, finance requirements and establishment costs. Its overall aim of achievability factor then matter whether if one wants to target locally or is ambitious enough and can co-ordinate on wider scale with broader policies. Running a partnership is no doubt a delicate matter in terms of

Another purpose to having a partnership is that with partners, your business will have a greater financial source to allow funds for the business start-up costs and debts. Essentially, not all the payments are going to you, but to all the partners involved.