AIOU SOLVED ASSIGNMENT 1 CODE 463 AUTUMN 2015
Aiou solved assignment 1 for code 463 Fundamental of
Business or introduction to Business explains the advantages of Partnership.
Following are the main advantages of partnership.
ADVANTAGES OF PARTNERSHIP
EASINESS: Partnerships are relatively easy to establish.
COMPLEMENTARY SKILL: A partnership may benefit from the combination
of complementary skills of two or more people. There is a wider pool of
knowledge, skills and contacts.
COST EFFECTIVE: Partnerships can be cost-effective as each
partner specializes in certain aspects of their business.
CAPITAL: Due to the nature of the business, the partners
will fund the business with startup capital. This means that the more partners
there are, the more money they can put into the business, which will allow
better flexibility and more potential for growth. It also means more potential
profit, which will be equally shared between the partners.
FLEXIBILITY: A partnership is generally easier to form,
manage and run. They are less strictly regulated than companies, in terms of a
the laws governing the formation and because the partners have the only say in
the way the business is run (without interference by shareholders) they are far
more flexible in terms of management, as long as all the partners can agree.
DECISION MAKING: Partners share the decision making and can
help each other out when they need to. More partners means more brains that can
be picked for business ideas and for the solving of problems that the business encounters.
CREATIVE BRAINSTORMING: Partnerships provide support and
will allow for more creative brainstorming.
BORROWING CAPACITY:- Partnerships provide moral support and
will allow for more creative brainstorming.
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