Partnership As Form Of Ownership Essay Example | Topics and Well Written Essays - 1500 words

Partnership As Form Of Ownership - Essay Example Operating the business becomes easier as partners with different skills manage different activities and more ideas are generated due to more than one mind involved in running the business. Taxation is shared between the partners, which mean that the expenses are shared between more than one individual. The cons associated with this form of ownership include the danger of disagreement (Gitman, 2008, p.119). This means that if one of the partners disagrees, a decision may not be taken as all the partners are required to agree or agreement may take place which may lead to conformity with the figurehead of the partnership. More paperwork is involved in the process of taxation as all partners have to get themselves registered as self-employed. Due to equivalency in sharing of partners, profits are divided according to share of investment even if certain partners may put in more effort and others may not for the success of the business (Moore, 2010, p.167). While raising capital to start a small business, an individual can start by financing the businesses himself. Several benefits such as retaining all the profits are associated with this form of financing, but if a small business needs to grow large then it needs to look for other options (Alterowitz, 2007. P.14). Next best alternative is to ask for assistance from family members and relatives for finance. For this purpose, an entrepreneur has to make the effort of making his relatives realize that he/she has a great investment plan and will be quite successful. In very rare instances family and friends invest in a business; if an entrepreneur faces such a scenario, he/she can obtain assistance from the government (Great Britain, 2006, p.18). The government has various plans where they finance small businesses or provide money in the shape of grants to entrepreneurs to start up their own business. If an entrepreneur is not eligible for such government support options, the  business can obtain a loan from banks to start small businesses. Due to the failure of large businesses and the risk of the high amount of loss associated with large businesses, banks and governments are more willing to finance small businesses (Moore, 2008, p.319).