Types Of Business Partnership And Its Benefits
For running a small business a sole owner may be enough. But, when any large enterprise business is concerned, partnership type of business becomes very much necessary and essential. It provides opportunities for the owners of the business in order to share the business tasks in order to earn greater profits. On one hand the concept of a partnership business can prove to be productive by suggesting freedom of action for an individual business owners and on the other hand can result into a destructive relation.
A business partnership can be of various types which depends upon the character of partnerships. For example, in a joint venture type of partnership, the business requires the partners to agree upon the management of the different business functions and the profit and loss that takes place are divided among the partners, according to the agreement. In a general partnership form of business, the partners can possess a part of the business, each, with indefinite legal accountability for the debts of the partnership. But, in case of a limited partnership business, the sole authority rests with a single or multiple partners, referred as general partners. Although the general partners have sole authority, they are equal in all other respects like the other partners in terms of sharing profit and loss, looking after the functions of the business.
Consistent decision making is the primary factor to a partnership business. Therefore in order to establish a successful partnership firm the following points should be taken into consideration:
It is very much important to examine the skills and potential of the participating partners. Based on specific skills like technical, marketing, finance management the partners should be given specific duties. All partners that are included in a partnership should perform the agreed authorities and must follow the same tactical decisions for profit of the company. Often the ides of equal participation's results in consequent failure and disagreements. So, the involvement of a third partner can help in decision making process removing animosity.
An IT outsourcing services company [http://brownjohn038.blog.com/2014/05/10/it-outsourcing-services-company-before-and-after-making-a-deal/] can deliver you with various skill sets and expertise to take care of your business so that you can focus on the important business functions. Communication on a constant and regular basis, between the business partners is necessary for building and maintaining the partnership. Sharing of opinions and views at fixed interval enables the scope of constant communication. Such effective communication can help in removing objections, providing constructive ideas,in turn, maintaining the relationships. A partnership agreement is not necessarily required to be based on legal documents, rather oral agreements between the members who are actively participating can craft a strong partnership based business. But in order to prevent the chances of future disagreements, it is always preferred to put the legal settlements under proper documentation, along with evidences and proofs.
Summarizing from the above points it can be concluded that a business partnership should be based upon the equity invested by each partner.
A business partnership can be of various types which depends upon the character of partnerships. For example, in a joint venture type of partnership, the business requires the partners to agree upon the management of the different business functions and the profit and loss that takes place are divided among the partners, according to the agreement. In a general partnership form of business, the partners can possess a part of the business, each, with indefinite legal accountability for the debts of the partnership. But, in case of a limited partnership business, the sole authority rests with a single or multiple partners, referred as general partners. Although the general partners have sole authority, they are equal in all other respects like the other partners in terms of sharing profit and loss, looking after the functions of the business.
Consistent decision making is the primary factor to a partnership business. Therefore in order to establish a successful partnership firm the following points should be taken into consideration:
It is very much important to examine the skills and potential of the participating partners. Based on specific skills like technical, marketing, finance management the partners should be given specific duties. All partners that are included in a partnership should perform the agreed authorities and must follow the same tactical decisions for profit of the company. Often the ides of equal participation's results in consequent failure and disagreements. So, the involvement of a third partner can help in decision making process removing animosity.
An IT outsourcing services company [http://brownjohn038.blog.com/2014/05/10/it-outsourcing-services-company-before-and-after-making-a-deal/] can deliver you with various skill sets and expertise to take care of your business so that you can focus on the important business functions. Communication on a constant and regular basis, between the business partners is necessary for building and maintaining the partnership. Sharing of opinions and views at fixed interval enables the scope of constant communication. Such effective communication can help in removing objections, providing constructive ideas,in turn, maintaining the relationships. A partnership agreement is not necessarily required to be based on legal documents, rather oral agreements between the members who are actively participating can craft a strong partnership based business. But in order to prevent the chances of future disagreements, it is always preferred to put the legal settlements under proper documentation, along with evidences and proofs.
Summarizing from the above points it can be concluded that a business partnership should be based upon the equity invested by each partner.
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