Introduction to Business

Introduction to Business

Table of Contents
Introduction .....................................................................................................................................3
Task .................................................................................................................................................3
Partnership...................................................................................................................................3
Use of Porters Five Forces to analyse Little Shop Dessert Business..........................................4
How Macro Environmental Factor improves the business.........................................................5
Conclusion ......................................................................................................................................6
REFERENCES................................................................................................................................8

Introduction
Business is an activity which involves providing goods and services with a motive of
earning profit. Not all business is successful enough to make profit, but their main purpose is to
generate profit. A business is an organisation where different people work together to achieve a
common goal. The people sell products and services in exchange of money (Frisendal, 2018).
There are various forms of organisation they are sole proprietorship, partnership, corporations,
etc. Little Dessert Shop has formed in partnership, there are two partners in the business. They
mutually decided to run the business. Mary and sue have shared an equal contribution of amount
to establish a shop. Each of them has contributed £30,000 for the smooth functioning of the
business operation.
Task
Partnership
A partnership is a written agreement between two and more people to look out business
operations and share its liability and profitability. The partners invest their money into the
business and each partner is liable for any loss and benefits from any profit. Partners are owners,
they are not employees of the company. A Partnership deed is signed by the partners, in which
the terms and conditions of the partnership is outlined. The purpose of the deed is to understand
the roles of each partners which helps in smooth functioning of the organisation. It avoids the
disputes between the partners. It is not a separate legal entity, the partners are personally liable
for the debts, there is no protection through assets. It clears the confusion of profit and loss
sharing ratios among the partners. The Partnership is formed when the individuals have mutual
understanding and interest. It also helps to access the knowledge, skills, contacts and experience
in business (Cerutti and et. al., 2020). The partners can make the decision easily regarding the
welfare of the company. Partnership is easy to form and dissolve. Little Dessert shop is in
Birmingham city centre, in a very large and popular shopping centre. This shop is owned by two
partners Mary Jones and Sue Jackson. They both have experience in hospitality sector. Mary has
worked as a chef whereas sue as hospitality manager of hotel. They have invested in their shop
£30,000, it secured three months lease on a shop and some working capital to pay the suppliers.
If any one of them left the partnership, it will be dissolved (Larson, 2018).