Saturday, December 16

Business Partnership:

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A partnership consists of two people to twenty one people who run the business while in a voluntary organisation it can range from 1 to as many as possible but in general charities are quite large. A contract is usually formed called deed of partnership. The deed will state how much capital each party has contributed and the profit and losses will be shared. A local example Lomas smith in Measham. The majority of these partnerships are lawyer, vets and accountants as they can benefit from their shared expertise. Like the sole trader, the amount of liability is unlimited but it is shared between the people in the partnership. The size of a voluntary organisation is usually a medium to medium-large business while the size of a partnership is usually small to small medium. The scale is local to regional for a partnership but for the voluntary organisation it is regional to national. The purpose of a partnership is to gain as much revenue and net profit as possible. Although in the early years of survival is the main key. There are a few problems that might occur like the profit will have to be shared with all the partners and yet again the liability is unlimited so the risks are quite high. Arguments may occur between the partners over certain business decisions. To raise capital is also quite because it is general restricted and the easiest way is to loan money from the bank. A partnership is easy and cheap to set up and the financial information remains private to the partners. The work of the business can be shared in the event of illness/holidays. Also each partner may have a different specialist so every area can be covered. Unlike the partnership, the voluntary organisation’s aim is not to gain profit but a purpose for charitable, social ,philanthropic ,religious ,political reason. Also they rely on occasional or regular volunteers for its operations, and may or may not have paid staff. Objectives will be to maintain enough capital to continue on the business. In a voluntary organisation, the type of sector is tertiary while in a in a partnership it tends to be tertiary in most cases.

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