A lot of people involved in different types of activities to
fulfill human requirements and need. In the case of their involvement, they
try to make a profit by performing their activities. People are interested to
make a profit and maximize their wealth. But some of them can be able to reach
their destination, some of them continue their activities moderately and some
of them are lost and close their activities. Today we try to discuss the term
of business, its form, advantages, and disadvantages of the different forms of
businesses separately from my point of view. Generally, a few numbers of
trading firms and manufacturing firms are constructed in the form of a partnership
firm.
Partnership Firm:
The firm which constructs with two or more individuals to make a profit by doing
business activities through an agreement. Here, the agreement should be written and
registered, it's better for the running business operation smoothly. Profit is allocated
among the partners according to the agreement mentioned condition or pro-rata basis.
Keywords:
party involvement two or more, profit distribution, written and registered
agreement.
Merits:
a. Less formal roles and regulation with few legal obligations
b. Easy to start partnership business as like as a proprietorship
firm
c. Easily share the burden to the among partners
d. Access to share knowledge, skills, information, experience, and
contacts, etc.
e. Better to make the decision.
f. Easy fund accumulation process which relies on its number of
partners
g. Easy access to profit
Demerits:
a. The business has no independent legal status as like as a proprietorship firm
b. Unlimited liability
based on its partners' personal liabilities
c. Limited access to capital
with partners limitation
d. Potential for
differences and conflict among the partners
e. Slower, more difficult
decision-making
f. Profits must be shared
among the partners
g. Taxation
Continue.................................
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