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4/20/22

What is partnership?

 What is partnership?

Partnership simply means a form of business an agreement between two or more people or business firms that come together to invest and do business with the aim of making profit at the end of the investment periods and after that the profit is distributed among the investors according to the total amount each individual has contributed to the organization. 

In partnership both profit and loss in the business affects all the parties involved, when the business is going well every body benefit likewise all risks ate also carried by all partners.
Business partnership increase participation of individuals and entreprenuers in economic activities which is good for the growth and development of the country at large.
A tree can not make a Forrest. 

Two heads is better than one.

This are qoutes that are all aim to encourage encourage partnership amongst people despite their differences, they come in Harmony with the common aim to make profit and grow their empires.


Partnership

 


Types of partnership:

  1. Limited partnership
  2. General partnership
  3. Joint partnership or venture

Limited partnership:

This type of partnership allows outside participation of investors to invest their money in a certain Business. Involvement is limited liability and the maintenance of the business is mostly under the control of the investors with the higher capital in the investment. This type of partnership is a bit complicated, and decisions making are mostly flexible because of the nature of agreement were by most of the decisions are taken by the major contributed.

General partnership:

In this type of partnership, all the investors share equal liability, labour, time ,risk and benefits of the business. When it comes to distrubiting the devident all participants collect equal share of the profit generated in the course of doing the Business, likewise when there is a loss it is bound on all members , all investors share the risks that is involve in the business.

Joint partnership:

This are the short time collaboration in business, and most atimes discountinue when most partners are not satisfied with the outcome on the return on investment. But if the partnership out come is good it can turn to a general partnership,there after attracting more investors into the business

Advantages of partnership:

The advantages of partnership in business are as follows;
  1. Easy to start and maintain
  2. Devident are shared among partners
  3. Resources are provided by the members who are partners in the business
  4. Both the benefit and the labour are shared among partners
  5. Investors are given the opportunity to contribute and brings opinions that will make the business grow

Disadvantages of partnership:

The disadvantages of partnership in business are as follows;
  1. The issue of different opinions when there are more investors
  2. Profit are shared according to the shareholders investment
  3. Partners are responsible for there action on like cooperation were investors can be shield
  4. Disagreement can erupt at any time if there is no trust amongst members.

What is partnership in business:

Partnership in business is when two or more individuals firms agree to bring their resources ,   experience together to invest in a particular Business opportunities for example real estate, agriculture, automobile etc. This partnership requires a joint agreement on how profit will be shared according to the amount of capital one had contributed to the business.
Usaully the members involve brings equally share of capital which is then invest in the a specific business, a specific account is open for the business and the signatures of the partners most be clear before money is withraw in the account. They can decide to Choose 
thier chairman and secretary  who can serve as their directors for the main purpose of co-ordinating and organizing the meetings to be help achieve a rancour free organization.

What is public private partnership:

Partnership



When the government of a country and the private sector collaborate to provide ammenities.
For the benefit of the common people it is called a public private partnership. The private sector provides setting percentage of the capital while the government provide the enabling environment and also invest along side the private sector to make live easy for the citizens.
When the government is interested in doing business with the private sector the economy is favoured and more investors will begin to come into the country because the will make profit ,when engage in partnership with the government they private sector also share in the risks and benefit of the outcome of the partnership.

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