Business Law
← Management | Geological Aspects Affecting Food Security → |
Introduction
Before getting into any business endeavor, an individual is supposed to make a proper analysis of the merits and demerits of that venture so as to make an informed decision of whether to get into it or not. It is particularly very important for an individual to find out more about a partnership form of business before deciding to be part of it.
A partnership kind of business may be defined as a legal form of a business undertaking that is usually formed by two or more people who share the business responsibilities with respect to the management of the business and the proceeds that are incurred by that business (Business Organization, 2010). Each partner in this form of business shares the responsibility of contributing to the creation and maintenance of the total enterprise through bringing together their capital, knowledge, skills and activities. Each partner is also legally accredited to a share of the business profits.
Merits of a Partnership
Being part of a very strong team of entrepreneurs who build and believe in an enterprise and who are highly committed and devoted to it gives an individual a substantial advantage as opposed to operating a sole proprietorship. A partnership form of business which encourages the integration of a diversity of talents, skills, personalities, training and experience is definitely advantageous especially when it is managed in a manner that mandates each partner to compliment the others. Partnerships are also beneficial in the sense that they encourage the bringing together of a pool of capital to run the enterprise. In addition, the partners can find time to do other things since they are not required to be at the business premises at all times. This is so because they may decide to operate on duties or even find employees to work for them. Partners may also be of more value to one another if each of them possesses a skill that complements the skills of other partners. Finally, a partnership form of business is also advantageous because in case of any risk in the course of running the business, the partners share out the total cost involved and therefore the amount that each partner contributes is reduced significantly (Business Organization, 2010).
Demerits of a Partnership
Despite the fact that the multiplicity of possessions such as character and personalities, training and experience, knowledge and skills and other valuable traits may be beneficial to a partnership, this same diversity can be quite harmful in the sense that it may give rise to conflicts within the business and destroy friendships, and eventually the entire business. In particular, it is important to note that partners often spend a lot of time trying to reinforce their relationships instead of seeking new ways of strengthening their enterprise (Sheffrin, 2003). Other disadvantages of partnerships include: sharing of rewards, complicatedness in the decision making process, sharing of acknowledgment in cases where the business is successful even when the success was effected by a only a single partner or a few of them, and disbanding the business in case a single partner buys out the rest when dissention arises, or due to the death of one of the partners.
How to select a good Partner
There are several attributes that one needs to consider before selecting a potential partner. To determine whether a specific person can be a good partner or not, you need to determine whether you share similar work habits, and goals and objectives of operating the enterprise. You also need to find out whether your strong personal traits correspond or conflict with those of the other person or persons. Dissimilar capabilities will enable you to divide up the business duties appropriately as well as provide for better coverage and solution to any upcoming business problems as each of the partners is able to contribute broadly in his/her area of proficiency (Business Organization, 2010).
Forms of Partnerships
There are several forms of partnership businesses and therefore it is important for any one to understand the legalities that are involved in the formation and operation of each one of them before deciding to enter into any partnership. The most common forms of partnership businesses are the general partnership, the limited partnership and the limited liability partnership. It is important to note that in most forms of partnerships, partners are always normally liable for all the impending business debts and obligations, and this includes court judgments. Therefore, if the enterprise becomes debilitated such that it can not pay its creditors, the creditors have the legal right of acquiring any of the partner’s possessions. This is particularly true for a general form of partnership where each of the partners has unlimited liability for the business debts. For a limited partnership, each partner has also an unlimited liability for the business debts. However, the scope of the limited partners towards the business debts is limited to their levels of financial involvement towards the whole enterprise. Contrary to the aforementioned kinds of partnerships, a limited liability partnership is a form of a partnership business in which some or all of the business partners hold a limited liability for all the business debts. Therefore, in a limited liability partnership, none of the partners is legally accountable or answerable to the recklessness or indiscretion of another partner (Sheffrin, 2003).
Termination of a partnership
One of the major limitations of partnerships is that when one of the partners decides to depart from the business, the partnership normally dissolves especially in cases where proper structures are not formulated to guide the running and termination of the partnership (Sheffrin, 2003). Consequently, when such a situation arises, all the partners are forced to complete any imminent business responsibilities that they might be having, settle all the debts that the business has, and split the existing business assets and profits amongst themselves. In order to prevent the occurrence of such a state of affairs, the partners need to create a buy-sell or buy out agreement as a vital element of their partnership agreement. These agreements may help the partners in planning and deciding on what actions to take in case one of the partners dies, becomes incapacitated, retires or decides to go away to pursue other activities. Another advantage of this agreement is that it can set down the procedures that can allow other partners to buy out the interests of the leaving partner so that the entire business can keep going as usual.
Conclusion
It is actually advisable for anyone to seek the advice of a lawyer before entering into a partnership business. The services of the attorney will be useful during the drawing up the partnership agreement. His services are also relevant because the new business might require specialized legal advice so as to safeguard your intellectual property rights. This includes your ownership rights with regard to the business name, copyrights, trademarks and patents.
Recommendation
It is worthwhile for you to get into a limited liability form of partnership where you will have a limited liability for the business debts. This implies that you will not be liable for the outstanding business debts that existed before you became a partner in that business. However, it is imperative to consult different experts like lawyers and accountants to help you interpret the legal requirements and other necessary conditions before joining any form of partnership.
![]() |
Kyle N.
Tempe, AZ
|
|
Dear Sirs: I have just placed my third order from EssaysEmpire.com this term. I feel confident that my paper will be written on time and that the quality of it will be out of the ballpark. The first two papers I ordered from you got A+ marks, and I know this one will, too. It is so great to be able to sit back and concern myself with my reading and exams while you do the difficult writing projects for me. That is really great. You guys are a class act! |
![]() |
Barry M.
Seattle, WA.
|
|
BRAVO! EssaysEmpire.com has done it again. I have just received another A+ for an EssaysEmpire.com paper! Thanks!Thanks! |
![]() |
Kris K.
San Francisco, CA
|
|
I would like to say thanks to writer #48376 for doing such an astonishing job on my paper. I really gave him very little to go on. Still, he was able to do the research and come up with a champion paper for me. I am speechless. I didn’t expect anything nearly this good. |
![]() |
Celine H.
Calistoga, CA
|
|
Thanks for doing a great job on a paper that was an important part of my semester. You guys rock! |
![]() |
Bryce F.
Capistrano, CA
|
|
Thanks for the excellent job that you guys did on my history assignment and my bio research paper. I never could have done this on my own. |
![]() |
George Sparlin
Nashville, TN
|
|
You guys are fabulous to offer such amazing guarantees for your work. I hired you for my last two papers because there was no risk involved. That was a pretty attractive option, if you ask me. Of course, I didn’t have to cash in on any kind of guarantee, because the work was perfect! Go figure. Thank you, EssaysEmpire.com. |
![]() |
Lonnie K.
Falcon Crest, MA
|
|
I work very long hours. Therefore, I sometimes run behind in my school assignments. This is especially true for the long written assignments. It is so great to know that I can always count on EssaysEmpire.com to help me out. The papers that I buy from you are excellent, without fail. I really appreciate your help . Thanks for everything. |
![]() |
Carolyn C.
Norman, OK
|
|
My paper was completed 3 days earlier than I had requested it. It needed no revisions and was much better than I had imagined. Thanks, EssaysEmpire.com! |
![]() |
Terry M.
Sparta, NJ
|
|
I got an A+ on the paper that you guys wrote for me. I can’t believe it! THANKS!!!! Many, many thanks! This A+ added those few extra points that I needed to stay on the Dean’s Honor List. You’re the greatest, EssaysEmpire.com! |
![]() |
Enrico V.
San Diego, CA
|
|
I was really happy about the speedy turn around time for my paper. It is rare to find a writing service that can write things so quickly without taking away from their quality. Hats off to EssaysEmpire.com! |
![]() |
Gaia W.
Lexington, OK
|
|
EssaysEmpire.com gets an A+ for being the best writing service a student could ever ask for! Thank you for your continued high quality work, guys. I have purchased 6 papers from you over the last two years and they have been exquisite in their workmanship and content. I really appreciate how hard you guys work to please your customers. I’m not surprised that you are reported to be the best writing company online or off. To me, you are exactly that. |
![]() |
Mia W.
Amherst, MA
|
|
Dear EssaysEmpire.com, I would like to put in a good word for Writer #32412. He was really under the gun. I didn’t give him much notice because I had my dates mixed up and my paper was due sooner than I expected. He didn’t let me down, though. He wrote until the paper was perfected. I handed it in on time got an A+ and wish your writers could accept tips, because I would leave this guy a HUGE one! |
![]() |
Sylvia S.
Ardmore, OK
|
|
Dear EssaysEmpire.com, Over the last couple of years, I have used your writing service for a total of five times. I have never had the same writer twice, but I have had excellent results with the writers who were assigned to my projects. I could easily recommend you guys. You’re the greatest! |
![]() |
Tiffany E.
Monroe, LA
|
|
I am 100% satisfied with the writer that you assigned to my project. This person understood exactly what I needed, even though I’m not the best communicator and the instructions were tedious and difficult. I felt certain I would have to send my paper back for a number of revisions, but I didn’t. The writer was able to convey exactly what I wished to express and he did it in record time!Thanks for everything. EssaysEmpire.com is the greatest! |
![]() |
Jennifer C.
Sulphur, LA
|
|
Your writer did a great job on my history paper. I didn’t have to lift a finger, yet I received an A+. I read the paper and felt like I learned an entire semester’s worth of information. That’s how good it was! |
![]() |
Mike G.
Rochester, NY
|
|
Your writing service is different from other writing services. Yours is the only one I have ever dealt with that I can truthfully say is legitimate. The staff is very professional. The writers are the best in the business. I am pleased with the results of my last three orders and plan to return for more soon. |
![]() |
Anne A.
Cambridge, MA
|
|
You dudes are awesome! Wow! I can’t believe I got an A+ on my paper! At best, I expected a B or C! |
![]() |
Pete F.
Sparta, NJ
|
|
Dear EssaysEmpire.com, I have never used a writing service like yours before. None of the ones I have tried previously offered the kind of guarantees that you offer. I even bought a paper that was plagiarized once. I never have to worry about things like that with EssaysEmpire.com! Thanks a million! |
![]() |
Kathy M.
Las Cruces, NM
|
|
To EssaysEmpire.com: Thank you for my outstanding paper. When I read it, I knew that I would get an A+ on it. Also, thanks for adding all of the pertinent details that I asked you to customize. You did a brilliant job. Just brilliant. |
![]() |
Mark R.
Seattle, WA
|
|
I am so happy with my term paper. The writer did a spectacular job!! Thanks to the writing team and also to the customer service team. |