Partnership as a Type of Business Organization

BA3LC91O– Introduction to
Business

Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................3
Partnership as a type of business organization ...........................................................................3
Analysis of Little Dessert Shop based on Porter's 5 forces framework ......................................4
Macro environment factors to improve the business ..................................................................6
CONCLUSION ...............................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Business organization is an entity which is formed to carry on a purpose and achieve goals for
which structures are made and identify the ways in which their structures helps them meet the
goals. In the report a “little dessert shop” based case study will be discussed and it is a
partnership firm which is a start up. In the further report the following points will be addressed in
which different types of business organization will be recognized, relationship between the
business organization and its business environment will be addressed. Also light will be put upon
the organizational structure and marketing strategy and also roles and activities of main
functional areas within an organization will be understood.
MAIN BODY
Partnership as a type of business organization
Partnership is an association of two or more persons which formally agrees to do business
mutually and share their profits and losses. The success of this type of organization depends
upon trust, understanding, cooperation and adjustment by all the parties involved in partnership.
It is defined as a special kind of legal relationship (Shin, Park. and Park, 2019). In this case Mary
Jones and Sue Jackson both set a partnership named “Little Dessert Shop” which was located in
busy Bullring shopping Centre in Birmingham. There are various features of a partnership
business which Mary and Sue should remember such as:
There is an agreement between the parties which means in between Mary and Sue and
there should be a formal and legal agreement between the two. And they both are involved in a
food based start up which is a lawful business.
Another feature is unlimited liability which means Mary and Sue both have unlimited
liability in the business. Mary and Sue are equally liable for the firm and also for payments of
debts.
In case of retirement of death or bankruptcy or insanity of either Mary or Sue the
partnership between them will going to end.
Mary and Sue are in a partnership as the minimum members requires to have a
partnership is 2 and this condition is being fulfilled in this case. And the maximum they can have
is 20.