Partnership a business and finally they can shared responsibilities

Partnership and Limited company
businesses are more important business types of all over the world and when
start a business, Mr.Fernando and Perera want to know which business type of
suitable for their business.

Partnership is a good business
structure in the business world. Then, Mr.Fernando and Perera would like to
start a business in Colombo. That means, they want to create their business as
a partners. In the other hand partners want to share their profit and
liabilities equally. Partnership types are General partnership, Limited
partnership, Joint venture and Strategic alliance. General partnership mean is
a partnership in which all followers have a take full obligation and unlimited private
liability for the management of the business. Limited partnership in which the
partner’s liability is limited to their investments. Joint venture a
partnership in which two businesses joint to complete a specific project and
the partnership ends after a specified period of time. Finally, strategic
alliance is a partnership in which two businesses work together for mutual
benefits. Partnership depend on ownership two or more people, legal
requirements, each partner must make a contribution to the partnership,
partners are jointly and severally liable for debts on the business, and
finally life of the partnership is not separate from the lives of the partner.
When Mr. Fernando and Perera choose partnership business the can get more
strengths. These are, they have few legal requirements, share profits and
therefore motivated to work hard, combination of new skills and ideas in to a
business and finally they can shared responsibilities for decision making. In
the other side, partnership has a weaknesses. These are, problems can arise if one
or more partners are lazy and inefficient or even dishonest, there another
weakness is a not a separate legal entity and liable for the actions of the
other partners, and finally discussion between partners can slow down decision
making and hard to find a suitable partner. These are the strengths and
weaknesses of the partnership businesses.

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Other
business type is Limited company. That means, a company that issues shares. In
the other hand, Mr. Fernando and Perera of which have the liability to
contribute to the assets of the company, if any specified in the company’s
article as attaching that to these shares. Then, Limited company divided in
Private Company, public company and Off-shore Company. Thy can start their
business as a private or public limited company. But both companies have a
differences. These are, private company is required minimum two person and
public company is required minimum seven person. Then, another difference is
private company cannot trade share on stock market and public company can trade
share on stock market and then private company may operate different businesses
and public company is generally operate business specific business. Then,
limited company have some strengths and weaknesses. The strengths are, easy and
in expensive to set up. Another strength is share can be sold to family members
and death and illness will not be affect the running of business. Finally, no
liabilities for shareholders. Then as a weaknesses for limited company is
profits have to be shared, and then accounts are not private, share cannot be
sold on the stock market and finally not all decisions made by owners.

 Mr. Fernando and Perera can create a business
as a partnership or Limited company. As well as they can assuming both
companies strengths and weaknesses before starting their business. Finally,
they want to know which type of suitable for their business.