Pros and Cons of Partnership as a Form of Ownership Essay

Q.1 Identify the pros and cons of the partnership as a form of ownership? A partnership is formed when two or more people engage in a business activity and share investment, profit and loss. Just like any other form of ownership, it has its advantages and disadvantages. Following we discuss some of the pros and cons of a partnership. Pros of the Partnership (1) Ease of Formation: Partnership is comparatively simple to form. All you need to form a partnership is an agreement. A verbal agreement is enough to start a partnership however it is much recommended that partnership be formed based on a written legal partnership agreement. (2) Funding: Partnerships generally have a low startup cost. With two or more people investing capital in the company, the business will have a much stronger financial ground. Two or more people can also have better access to outside funds needed to run the business (3) Divided Responsibility: In a partnership responsibilities of running a business are shared by the owners. Shared responsibilities ease the work load on individuals and can also increase productivity by splitting responsibilities in a way that individuals can use their special skills to maximize the output. (4) Support: Owning and running a business can be very demanding, challenging and stressful. Having a business partner can give you a little peace of mind because a partner can provide moral support when needed. (5) Taxation: The income profit/loss in a partnership flows through the business to individual partners for taxation. In other words the partners are taxed only on the basic of personal income i-e how much loss or profit a partner endured. Cons of Partnership: (1) Liability: In a partnership both partners have un-limited liability (not in LP and LLP). Both partners are responsible for not only their own actions but also the actions of their partners. So, if your partner fails to pay a debt, you personally are responsible for paying that debt and vice versa. If someone sues the partnership and the business doesn’t have enough money to cover the expenses than the partners personal assets will be at stake. (2) Conflicts and Disagreements: Partnerships are for the long term and over the course of time conflicts arise and disagreement happens. Whether these are personal or management style conflicts. They can adversely affect the business. When general partners don’t agree it can delay the decision making time of the company and a bad conflict is enough to dissolve a partnership. (3) Dependence on Partners: The success of any partnership depends heavily on contribution from all partners. If a partner withdraws the business will be crippled, if a partner dies the partnership can die with him. Moreover you can’t make any business decision on your own you’re dependent on your partner. (4) Difficulty Withdrawing: It is not that easy to get out of a partnership. Whoever needs to withdraw will be personally liable for any monetary obligations due at the time of withdrawl. Q.2 Discuss funding options for small business? In order to run a business you need capital. Getting the money together to start a new business is the top priority of any entrepreneur. There are several ways to finance a small business. Following are some options for financing a small business. (1) Personal Resources: Using your own assets is the most common form of small business financing. You can use money from your saving, ask family or friends for capital or use a credit card. (2) Loans: In order to startup a new business, entrepreneur borrows money from the banks. The banks charge an interest rate on the money lent. The business owner must pay the original money borrowed plus the accumulated interest over the life of the loan. In today’s economy it is not easy to secure a commercial loan with the bank. A better and easier way for a new business to get a bank loan is with loan guarantee from the SBA. (3) Angels Investors: Another way to fund a small business is by private investors. Angel Investors are individuals who have a lot of money and are looking to invest a large amount into a profitable business for financial gain and profits. (4) Venture Capital: The companies who fund promising and high potential companies in exchange for ownership shares are known as venture capital firms. Venture capital is the money provided by venture capital firms to startup businesses that are perceived to have a long term growth potential. It has a high risk for investor but also has potential for above average profit returns. 3. Determine and discuss how managerial accounting can help managers with product costing, incremental analysis and budgeting? Managerial accounting provides accounting information needed by managers inside an organization to run its day to day operations. It provides managers with financial information’s needed to make sound business decisions. Managerial accounting information includes budgeting, product costing, performance reports, variance analysis and financial ratios. Following we look at three managerial duties that rely on information received from managerial accounting: (1) Product Costing: Product costing is the process of accurately determine the cost of a single product, by analyzing all the expenses that accrued from the beginning (raw material) to the end (sale). In traditional costing method indirect costs are applied to products, based on an overhead rate that is predetermined. The traditional costing system is easier and much simpler but fails to add the cost of non-manufacturing goods that are associated with the production of that item. (2) Activity Based Costing: Activity Based Costing is a new method in costing. It’s much more complicated that the traditional costing system. ABC gives a much more accurate product cost. Under activity based accounting associated with production of an item is determined and priced. This priced activity is than assigned to every product that requires the prices activity for production. Managerial accounting provides managers with the financial information needed to determine the cost of a manufactured product. (3) Incremental Analysis: Incremental Analysis is a decision making tool. It is used for the analysis of financial information needed to make an informed decision. In incremental analysis two different alternatives are weighed out in terms of cost/profit and the impact of the outcome of this analysis will have on a particular decision. It basically points our related cost and revenue of each alternative and the impact this alternative will have on future income. After using incremental analysis and choosing one alternative over the other. The cost change that occurs due to choosing the alternative is called incremental cost. Managerial accounting provides us with the numbers needed to compare two different alternatives, pick the right one and analyze the difference in cost. Budgeting: It helps managers plan and control costs and revenues. Budgeting is a tool for managers to determine how much money needs to be spent in order to generate a certain level of income. Budgeting in simple terms can be called forecasting; in budgeting we prepare a very detailed statement of financial results that are likely to happen in a time period to come. Companies use budget to plan for a future period based on financial statements. Managerial accounting provides managers with the financial statement for budgeting. Q4. Discuss the basic components of the marketing process using the product or service of your choice as an example? Marketing strategy can be described as an activity to position a product, attract customers while promoting the interest of stakeholders in a business. Marketing makes it possible to communicate the value of a product or service to consumers. Following the basic components of marketing process is explained briefly using artificial jewelry as a product. (1) Product Strategy: Methodologies, tools and technology used by a business to differentiate and distinguish its product from its competitors, is called product strategy. In terms of artificial jewelry my strategy would be to describe my product in full detail including where it was made, who it was designed by and what metals were used in its formation. I would also set my product apart by choosing appealing packaging and I would back the quality of my product by giving guarantees. And above all I would provide exemplary product designs and excellent customer service. (2) Pricing Strategy: Pricing Strategy is very important in marketing because it generates a turnover for the company and it’s also important because it affects other components of marketing as well. In terms of artificial jewelry first I would do a thorough research on competition prices, than I would calculate my final cost and select a pricing objective. I would compare my sale price with that of my competitors, and make sure that my price is lower than the competitors and value of my product is higher than the competition. Initially, I would keep my profitability low and will try to build clientele base by providing unbeatable prices. (3) Distribution Strategy: Distribution plays a very important role in marketing strategy. It involves how well the final product is delivered to the consumer. The product must be delivered to the end user in the right quantity, at the correct date and time. In terms of artificial jewelry most of my sales will be distributed at shows and festivals organized by different entities and a major part of my sales is also going to be web based. I will contact different shipping companies to find out the best courier in terms of price and value. And ship my jewelry through the best medium, at minimum amount of tie. (4) Promotion Strategy: Promotion Strategy is also vital part of marketing. A promotion strategy includes all the ways used by companies to provide information about their product in such a way that it would ultimately increase the company’s sale. In terms of artificial jewelry I would offer some sort of coupon and advertise my discount. Offer free shipping (when possible), maintain customer relations and send out promotional information to existing clients. Q.5 Discuss the role of social responsibility and technology in the marketing function. Social Responsibility in Marketing: Being socially responsible for an organization means that it cares and shows concerns about the people and environment in which they conduct business. Marketing can be described as promotion, selling and distribution of a product. Social responsibilities in marketing would first of all include truth telling about their product , all the information about the product should be correct and up to date. Companies should be concerned about their environment and take steps to make a cleaner. Companies should also show support for social causes in marketing. Company should market their product in a way that it doesn’t offend any group of people. Technology in Marketing: The technological boom in the past years had definitely revolutionized marketing. The internet has created numerous marketing opportunities for businesses. Now days there are numerous marketing firms that work exclusively on the internet. At first radio changed marketing, than TV and now it’s the age of hand held devices and internet. Marketers now days know that constant technological advances require evolution in the marketing process. With technological advances it’s much simpler and quicker to get customer feedback. It is much simpler to deliver the product to the customer and to do market research and maintain your brand reputation. Technology had had a great impact on marketing.

Review Related Literature

CHAPTER II REVIEW OF RELATED LITERATURE I. INTRODUCTION This review of related literature focuses on how to process used to automate a sales order fulfillment process. Such a system contains a list of order to be filled, and then prompts workers to pick the necessary items, and provides them with packaging and shipping. The said business needs an inventory system to help them to record the tracking of the business flow and help them to make it easier for them to monitor items. This inventory system involved the progresses of the daily process of buying and selling of their products.LOCAL LITERATURE * Julie’s Bakeshop System Since 1999, Julie’s Franchise Corporation has garnered a string of Franchise Excellence Awards for consistently high achievements of growth and development in all aspects of franchise operations that uphold the stringent standards of the Julie’s Bakeshop System: Quality; Customer Service; Cleanliness; Sanitation; Maintenance; and Reliable Mana gement. They Transacting Business and Visitors who register to transact business on the site and make use of the various services offered by Julie’s bakeshop.They use Personally Identifiable Information to customize the Site, to make appropriate service offerings, and to fulfill buying and selling requests on the Site. We may email Visitors and Authorized Customers about research or purchase and selling opportunities on the Site or information related to the subject matter of the Site. We may also use Personally Identifiable Information to contact Visitors and Authorized Customers in response to specific inquiries, or to provide requested information. Goldilocks System Goldilocks was opened in 1966 as a family business and started as a simple one-door apartment in a two-story structure at 2300 Pasong Tamo Street in Makati. It first opened its US branch in 1976, at Artesia, California. Goldilocks uses login information, including, but not limited to, IP addresses, ISPs, and br owser types, to analyze trends, administer the Site, track a user’s movement and use, and gather broad demographic information. FOREIGN LITERATURE ‘sponge and dough’ system of Franz Family Bakeries Franz Family Bakeries has produced bread products in the North Western US since 1906 and commissioned a $42m bakery in Springfield, Oregon, as part of a centennial celebration To produce its breads and buns, Franz uses a ‘sponge-and-dough' system. Sponges are produced in a 2,000lb horizontal mixer and receive a 4-4. 5 hour ferment at a temperature of 80? F and 80% relative humidity in an automated fermentation room with a capacity of 9,000lb per hour. The semi-automated fermentation room for the bun line produces 5,000lb an hour.Two 2,500lb horizontal mixers feed the bread line every 10 minutes with a continuous stream of chunks feeding the divider. The bun line has a 1,200lb sponge mixer and 1,600lb horizontal mixer from where the dough is sent to the divider ev ery 12 minutes. * Spooner Vicars Bakery Systems Spooner Vicars Bakeries is to be the world leader in ‘Total Supply ; Service† to our customer base and increase market leadership, through faster responses, on-time deliveries, professionalism, quality and technological advancement and to be the best in our industry.Spooner Vicars Bakery Systems may use cookies for the purpose of improving user experience and to facilitate the transfer of data between the site and the individual. Data submitted to the site may be transferred within Spooner Vicars Bakery Systems, including to subsidiaries, strictly in order to fulfill or expedite a user's request. Data submitted to this site will not be shared or sold to any outside parties, unless specifically requested by the user.

Kosovo Independence Essay Example | Topics and Well Written Essays - 1250 words

Kosovo Independence - Essay Example Social order and political progress in most societies emerge from the interplay of the way social institutions are managed and run, as well as its overall relation with social forces. As a result, most societies become victims of social and political conflict when social institutions fail per se to regulate the social behaviors of diverse population and interest groups (Raeder p.1). Kosovo gained independence in 2008 when major international states recognized and ratified its charter for statehood. The culmination of Kosovo independence came about after witnessing one of the worst political conflicts that disintegrated the larger Yugoslavian nation. The post-independence Kosovo has become of great interest to many political analysts who in various capacities evaluates the interplay of social and political forces, together with their ability to motivate conflict in the society. Therefore, it is important to evaluate post-Kosovo independence within the major social and political stages proposed in Edmund Burke theory. Stage 2: Society becomes divided by the change (Independence) Kosovo has various political parties, but the two leading parties are the Democratic Party of Kosovo (PDP) and the Democratic League of Kosovo, with former being the largest and newest, which also reigns in the country, and the latter being the second largest party and the oldest party in the country. These two parties are predominantly composed and supported by the Albanians, with the Serbians, who are the second largest community being represented by the Independent Liberal party. Independence is associated with changes that political leaders and other interest groups envision for the new society. On large scale and even smaller, the independence changes may be the source of discontent and subsequently some people, groups, and civil society may be opposed to the new changes. Edmund Burke observes that society in this stage manifest some level of discontent that eventually results into social, political, and cultural divisions. As a result, the people together with discontent groups may become vocal in speaking against the changes proposed or carried out by the new power and this form of opposition may be in words or violence. Immediately after Kosovo was declared independent in 2008, internal discontent and discomfort between two major ethnics Serbs and Albanians emerged, which led to violent incidents in the Northern Mitrovica in December 2008 (Notholt p.33). Despite this independence, the two communities have always been in conflict, with the Serbs feeling ill-treated by the majority Albanians to an extent that they have always advocated for separation of the assembly among ethnic lines. The violence continued up to the first few weeks of 2009. At the same time, during April 2009, there was ethnic conflict between Serbs and Albanians again this time due to returning Albanians families to their homes in North Mitrovica. The gravity and intensity of these violent protests were eased by the intervention of Kosovar police and KFOR troops after a few days. What surveys have revealed is that in the larger Kosovar state, there is still dissatisfaction among the population about the economic, social and political progress (Eifler and Seifert p.157) and the blame of the population has shifted from UNMIK to the Kosovo government. People see the government as doing little to rectify and make their life better. In post-independence period, Kosovo cannot be described to have succumbed to this stage of independence and conflict as proposed by Edmund Burke. What can be said is that social, economic, and political divisions in the country have to be addressed through restructuring of economic, social, and political aspects that are framed on an inclusive

Astronomy in Japan Research Paper Example | Topics and Well Written Essays - 1250 words

Astronomy in Japan - Research Paper Example The ease, by which astronomy was accepted in old Japan was perhaps related to the fact that it complements the Japanese mythology, which is also institutionalized by the government. The Sun goddess Amaterasu has a central role in governance through the royal family, then there are the Moon God, and the stars and how they are interrelated and how their festivities are celebrated to strengthen Japanese traditions and rituals. It appeared that astronomy along with its place in religion gave some form of legitimacy to the myths that forms the anchor of the imperial tradition. From its first introduction in Japan to the present, astronomy have always been important to the Japanese culture. It is easy to understand this because it suits how the Japanese generally see the world. This is demonstrated best in how it is easily integrated in the Shinto traditions. Astronomy is compatible with the Japanese way of life, it reinforced their religion as well as their imperial traditions. Najita reflected this best when he said that human knowledge must rest ultimately on the proposition that the universe is an infinite absolute preceding all human and historical experiences and that what men know, therefore, must be tested with reference to the best-know science of studying the universe, which is astronomy. This is why, although, astronomy is not a Japanese invention, Japan was able to embrace it and a achieve a kind that is uniquely its own.

Over 30 Workers Trapped After Chilean Copper Mine Collapse Essay

Over 30 Workers Trapped After Chilean Copper Mine Collapse - Essay Example Information is powerful. It can have devastating effects if it is not handled with the necessary caution. In the case of the collapsed Chilean mine, the people involved had diversity, (O’Rourke, 2010). They happened to come from different backgrounds, beliefs and culture. This means they receive information differently. Some can become extremely frightened the mere thought that their loved ones, friends and relatives might die (BBC news, 2010). The company had to bear a lot with this disaster that took place. This involved keeping the families of the miners calm and fully assured that their interests are going to be taken care of. This had to be a message of hope and patience against a precise enthusiastic mainstream media which presented raw information to the audience. The employees too were totally scared of losing their colleagues. They were expecting an exceptionally strong assurance from the mining company, as well. This left the copper mining company with the responsibility of knowing how to regulate the release of communication and how much information to release to both the relatives and the employees. The company needed to establish communication between families and the employees. The families needed to know whether their relatives handled enough food and other resources. They needed someone to assure them that enough was being done to rescue them, (BBC news, and 2010). At the same time, they wanted commitment b y the company that all of their relatives would be rescued alive. The company needed to sound more convincing that the mainstream media. This is because the media did was doing sensational reporting without paying much attention to the plight of families and employees. The media were also looking for whom to blame which deed little to address the need of the families. The company needed to communicate with the relatives of the tapped employees, detailing how it was going to meet the needs of the trapped copper

News paper summary Essay Example | Topics and Well Written Essays - 500 words - 6

News paper summary - Essay Example Its stock dropped by more than 5% in three months. It also reported of various cyber-attacks that it has received. Its shares have also dropped by 10% in 12 months that are contradictory to gains of a company such as NASDAQ Internet Index that increased by 31%. The drop seems to indicate that investors are raising questions concerning its future. Its revenue growth has remained stagnant for the past two years, and the scenario will be the same in coming years. The article, HP chairman Whitworth to Step Down to Focus on Health, is about HP management and in particular its chairman Mr. Whitworth. He has served on several US boards, but now wants to retire and concentrate on his health. He has lived with throat cancer since April 2013. Relational managers will be meeting soon to discuss on how to appoint a new chairman. It manages more than $ 6 billion and features prominently in shareholder activism. He joined the HP Company in 2011 when it was turmoil and led to its stability. Relational investors are more worried of his wealth than effect on the firm. The article, Real-Estate Investors See No Problem with Puerto Rico, points out at the deteriorating economic conditions at Puerto Rico and how real-estate investors are taking advantage of the situation. Property managers and private-equity firms are buying and developing luxurious and high-end hotels on the island. Property deals have up scaled by more than $ 1 billion. The investments bet on its turn around, tourist’s credit concerns, and changes to the tax code that withdraws tax on such investments. The hotel business is on the rise, and the valuations are level to those seen before the wake of the global recession. The article, S&P Weighs Restarting Talks on US Suit, is about Standard and Poor’s Ratings Services and its lawsuit with the Justice department. The company is on discussion and negotiations on penalties on the range of

Money , its for a History of economic thought class Essay

Money , its for a History of economic thought class - Essay Example Money is the difference between that person who is sleeping hungry and that one who affords to have his pets on a special diet. In this sense, it is the promoter of inequality. Once inequality checks in, the consequences are unlimited there is anger, dissatisfaction, deception and every other emotion and act that epitomizes dissent. It is at this point that â€Å"money costs too much†. This is because it gets to a point where it costs life, peace and relationships. The focus of this essay is on relationships the concern is how money comes between people, how money blurs our sight that we soon forget the emotional, patriotic and sometimes blood bond that hold us together. The essence of this inquiry has been informed throughout the semester, having the opportunity to journalize different experiences regarding money has really brought to the fore the value we place on money. This is because unless we place too much value on money higher than the value we place on our social rela tions then it would never be possible for money to downplay our relations. Unfortunately, the exposure I have had throughout this course and the materials I have read have brought to the fore the disheartening truth that money has a much greater force, it costs too much. Economically, money is considered a medium of exchange the means through which we are able to acquire different goods and services. Historically, it has not always been represented by coins and notes but at some point gold and other valuable metals were the preferred means of exchange. However, history teaches us that the problem has not been with the nature but on the value placed on these materials. Any material in which extreme value has been placed has thrown people into frenzy they are continually interested in amassing that which has value. The burst of the Mississippi bubble brings this act of desperation and thirst for value into perspective. It depicts the race to hold that which has value and disposing tha t which has less value. This has been a historical trend, one that has only aggravated over time, the fundamental question is at what cost? The answer may not be as a definite, but it is evident, it is at a much higher cost. Over the past few months I have been able to watch the documentary â€Å"inside job†. The film directed by Charles Ferguson traces the root of the financial crises that only became so apparent in 2007-8. However, following the film clearly illustrates that the financial crises had been ongoing for a while. The signs had been there of a slowdown but were largely ignored. The reason for this ignorance is the basis of this study. The crisis was driven by a need to compound on gains made, a need to amass assets that were being speculated to appreciate in value. Given the capital limitation enforced by the market dynamics, people had to borrow and banks, which are also the primary lenders had to lend for speculative purposes and had also to invest in these spe culations. In any case, the banks were the first to participate in these speculative ventures. The result was an imbalance between the asset base and money borrowed by investments banks. At the end, the speculative ventures never bore the anticipated results and the banks were left indebted. People who had entrusted their hard earned money had lost their confidence on the very people who represented a chance of higher value. This