Relationship Between Partnership And Partnership - 1484 Words

When considering most of the law cases filed in court, business law cases have formed greatest percentage due to their frequency of occurrence. Agreements formed before the start of the business are broken in the course of running the business which leads to a law case especially for those businesses operated by more than one individual. Partnership form of business is the most adopted one at the state level where we have two or more people starting a business where they share profits and loses equally. I did research on partnership dispute that once occurred due to disagreement on terms of payments and who were the sole contributors to the business. Partnership involves more than one party where we can have a general partnership or†¦show more content†¦Due to lack of uniform sharing of profit, a dispute came about from this legal form of business. (Prat, 2010) While checking on the advantages of partnership form of business, it is believed that it is the easiest form of business to form as it only requires voluntary agreement between the partners and the business can be formed. The agreement is not in a fixed form, can be written or oral making if easier and flexible while forming it. This indicates that there are few legal formalities required during the formation hence fewer resources used. Since it involves many partners, there is expectation of high initial capital as compared to other forms of business. This high capital leads to increased scale of operation for the business which raises its profits. (Goldsmith, 2006) The limited partners if included in the partnership assist in investing the business from outside the business hence marketing their business as well as maintaining a competitive advantage. This form of business incorporates different skills and experts from different fields when they partner to come up with one business . This improves the management of the business from various skilled people. Risks experienced in this form of business are shared equally among all partners which reduce the impact to a single partner. Since there is monitoring of one another functioning in the business, there is reduced wastage which translates to more efficient functioning of