Partnership As Form Of Ownership Essay Example | Topics and Well Written Essays - 1500 words

Partnership As Form Of Ownership - turn out ExampleOperating the business becomes easier as partners with different skills manage different activities and more ideas are generated imputable to more than one mind involved in running the business. Taxation is selld between the partners, which con none that the expenses are shared between more than one individual. The cons associated with this level of ownership include the danger of noise (Gitman, 2008, p.119). This means that if one of the partners disagrees, a decision may not be taken as alone the partners are required to agree or agreement may take place which may entrust to conformity with the figurehead of the partnership. More paperwork is involved in the process of taxation as all partners deal to get themselves registered as self-employed. cod to equivalency in sharing of partners, profits are divided according to share of investment even if certain partners may put in more effort and others may not for the success of the business (Moore, 2010, p.167).While raising capital to start a small business, an individual mickle start by financing the businesses himself. Several benefits much(prenominal) as retaining all the profits are associated with this form of financing, but if a small business needs to grow large then it needs to savour for other options (Alterowitz, 2007. P.14). Next best alternative is to ask for assistance from family members and relatives for finance. For this purpose, an entrepreneur has to make the effort of qualification his relatives realize that he/she has a great investment plan and will be quite successful. In very rare instances family and friends invest in a business if an entrepreneur faces such a scenario, he/she can obtain assistance from the government (Great Britain, 2006, p.18). The government has various plans where they finance small businesses or run money in the shape of grants to entrepreneurs to start up their own business. If an entrepreneur is not el igible for such government support options, thebusiness can obtain a loan from banks to start small businesses. Due to the failure of large businesses and the risk of the high amount of loss associated with large businesses, banks and governments are more uncoerced to finance small businesses (Moore, 2008, p.319).