Evaluation of Partnership as a Business Organization in Respect with Mary & Sue Little Dessert Shop

INTRODUCTION TO
BUSINESS

Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................3
TASK ..............................................................................................................................................3
Evaluation of partnership as a business organisation in respect with Mary & Sue Little dessert
shop.............................................................................................................................................3
Application of porters five forces for analysing of “Little Dessert shop” and advise on
management of such forces to achieve higher competitive advantage.......................................4
Discussion of macro environmental factors with reference to improvement of businesses.......6
CONCLUSION ...............................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
A business organisation has evaluate into different categories also with different provision
regarding their respective business concerns. It has categorised into separate firms i.e. sole
traders, limited company and other will be limited liability partnership (LLP) and a community
interest company (CIC). (Birch, and et.al., 2017) This report evaluates the partnership firm in
respect with Mary & Sue ‘Little dessert shop’ newly opened in Birmingham, United Kingdom.
Also discuss on the external factors which influence on an organisations goals. With the help of
porter’s five forces model which describes affects of suppliers and buyers power, competitive
rivalry, product substitute and more in context with the firm. An organisation also influenced by
external forces like legal, social and environmental which is also going to analyse here.
MAIN BODY
TASK
Evaluation of partnership as a business organisation in respect with Mary & Sue Little dessert
shop
Partnership firm is considered to be a sorted as well as critical at a same time, in which two
partners are ready to share their capital and profit in a decided ratio also bound by all terms and
conditions in partnership agreement, regarding working hours, salaries, leaves, insolvency,
arrival of new partners and dissolvent. Partners have to mutually agree in decisions, amendments
or investment which sometimes creates a matter of dispute. Also partners are individually liable
to pay cost of any miss happening or loss occurred to the firm, in other words they have
unlimited liability. There are other firms i.e. Limited partnership and General partnership
which are discussed below: Limited partnership: according to this partnership agreement, partners enjoy limited
liability up to the extent of its capital contribution, along with this, the firm can be sue
and be sued by the other members or firm for any fraudulent conduct. Investments are
made by companies’ shareholders who are a part of companies’ profit.
General partnership: according to this, no involvement of external investment considers, as the
profits and losses bear by the partners only, and unlimited liable in any circumstances.
(Cherunilam, 2020)