Partnership as a Type of Business Organization

BA30591E– Introduction to
Business
SUMMATIVE
ASSESSMENT

TABLE OF CONTENTS
Introduction......................................................................................................................................3
Main body........................................................................................................................................3
1. Partnership as a type of business organisation........................................................................3
2. Competitive analysis using Porter’s Five force framework....................................................4
3. Macro environmental factors...................................................................................................6
Conclusion.......................................................................................................................................7
References........................................................................................................................................8

Introduction
A business is referred to an entity, organisation or enterprise that undertake in industrial,
commercial and professional functions in order to gain profits and achieve the organisational
objectives through strategic management (Pozdniakov and et.al., 2018). The business decisions
and strategies are impacted by macro environmental factors and competition around them. This
report will evaluate the case study of Little Desert Shop formed by the business type partnership
in Birmingham, UK and how the owners are dealing with business challenges and dilemmas to
keep their profit margins high, gain competitive advantage and potential customers.
Main body
1. Partnership as a type of business organisation
Business organisations can take many forms as per the capital, business needs, goals and
can be such as sole proprietorship, partnerships, corporations and limited liabilities company.
Sole proprietorship is the most common form of business ownership which is entirely owned by
one person who rums it for their benefit. All the capital is invested by the owner and the profits
and all unlimited liabilities and debts are subjected to the owner. Corporation are distinct entities
which are assumed a legal person in itself and taxed as personal income. The liability is limited
to the debts of the owner and personal assets are not used for recovery of debts. The limited
liability company on the other hand is quite similar to limited partnership where there are
advantages of income of the partnership and the liability in limited. Partnership means the
business organisation which is established by the capital of two more people and can take forms
of general and limited (Cappellino, 2020).
The business organisation that is established by Mary Ones and Sue Jacksons, i.e. the
Little Desert Shop is based on a partnership form of organisation. In UK partnership is a very
common form of organisation which enables people to formally partner-up with other individual
to start a limited company or general partnership. For setting up the partnership, a name has to be
chosen, a nominated partner is selected and registration with HM revenue and customs. Both the
owners have relevant experiences in the hospitality sector and have utilised their redundancy
money to fund their start-up capital for this business venture in the hospitality sector (Prawiro,
2020). In partnership-based organisations, the owners invest certain percentage of capital, so
both Mary and Sue have invested £30,000 each and have leased a shop for a 3-year period in the
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