Introduction to Business

Introduction to
Business

Contents
INTRODUCTION...........................................................................................................................2
ASSESSMENT 1...........................................................................................................................2
Partnership as a type of business..........................................................................................2
Porters five forces frame work for little dessert business...................................................3
Macro environmental factors affecting the business...........................................................4
CONCLUSION...............................................................................................................................5
REFERENCES..............................................................................................................................6
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INTRODUCTION
A business can be defined as an organisation which are involved in doing commercial or
professional activities. These entities are involved in selling and producing goods and services
for adequate amount of profit. Present report will lay emphasis on little dessert shop case study.
There are two working partners in this shop that is Mary and Sue. Both are in dilemma whether
to go for organic products or not. Study will discuss about the advises given to Mary and her
partner related to issues faced by them. It will also lay emphasis on evaluating partnership as a
type of business organisation. Assignment will highlight about the Porters five forces frame work
for little dessert business.
ASSESSMENT 1
Partnership as a type of business
Partnership can be defined as the legal form of business that exists between two or
more individual (Soltanizadeh and et.al., 2016). They share risk and profits of the business
together. This form of business is efficient for Mary and Sue. There are basically two forms of
partnership one is general and other one is limited. Owners of Little dessert shop is in general
form. In this the partners are involved in managing business and they also carry responsibility
for partnership debts and other obligations. In limited one, the general partners run the business
while limited one only invests. These people have no control over the company.
Advantages of partnership
It has been analysed that partnership business is really beneficial for Mary and Sue as
the expenses are shared and also debts and obligations are been shared. They can both work
and invest in company together. One of the biggest benefits of partnership business is that they
enjoy tax benefits (Akter and et.al., 2016). In this the partnership does not pay tax on its
business and passes through individual partners. Both Mary and Sue can take decisions on
behalf of companies and they can also take out loans. In this both owners of little dessert shop
can make use of their knowledge and expertise to expand and grow the business. This will help
the shop in gaining competitive advantage and they will also be able to be more productive.
There will be also no problem related to cash as the prospective partner can bring out infusion
of cash and also, they can manage all the expenses faced by company.
Business partners are really beneficial to have as one can always go for cost saving.
This is because financial burden is being shared. This can assist Mary and Sue to be more
productive and they can also invest in something better in order to diversify their business.
Thus, opening up to more business opportunities. As one partner is busy in working the other
partner can think about expanding business. This can assist Little shop desserts in earning
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