Evaluation of Partnership as a Business Organization

Introduction to Business

Table of Contents
INTRODUCTION...........................................................................................................................4
MAIN BODY...................................................................................................................................4
1Evaluation of partnership as a business organisations in respect with Mary & Sue Little
dessert shop............................................................................................................................4
2Application of porters five forces for analysing of “Little Dessert shop” and advise on
management of such forces to achieve higher competitive advantage...................................5
3Discussion of macro environmental factors with reference to improvement of businesses.7
CONCLUSION................................................................................................................................9
REFERENCE...................................................................................................................................9

INTRODUCTION
There are different types of business organisation based on the legal formation and other
associated features such as sole partnership, companies, partnerships. Depending on the legal
formation of a business it is different from other associated forms. Present report is based on
making a detailed analysis of evaluating partnership as a type of business with reference to the
partnership business of Mary and Sue with their venture of “Little dessert shop”. There is
application of porters five forces to advice how Mary and sure can achieve a competitive
advantage by management of these forces (Shafiq and et.al 2019). Further there is discussion of
various macro environmental factors that can assist in achievement of business improvement.
MAIN BODY
Evaluation of partnership as a business organisations in respect with Mary & Sue Little dessert
shop
Partnership is a business organisation that consist of two or more individuals coming
together for the purpose of sharing of profits and losses in a business. They are willing to share
all the cost, risks, responsibilities and benefits of running the business (Mustikaningsih and et.al
2019). The agreed profit sharing ration is pre decided and each partners has to pay taxes on their
agreed profit sharing percentage. Partnership is a type of business that is basically divided in two
parts that is general partnership & limited partnerships. In limited partnership has both general
and limited partners.
General partnership is operating the Business and are serving as investors, they do not posses
control over the company and are subjected to some liabilities as general partners.
Limited partnership are not the best choice of business as it consist of lot of filings and the
administrative complexities.
Personal liability is the major concern of general partnership as general partners are personally
liable for partnerships debts and obligations. Each general partner is acting on behalf of
partnership debts and obligations. Their decisions are affecting and binding on partners.
In partnership business each partner may be liable for negligence and misconduct. The Profits
and losses are to be shared between the partners according to the agreed ratio.
The type of partnership business shared by Mary and sue is based on general partnership as they
both have contributed towards 30,000 pounds and have secured a 3 year lease on shop