Q1. What is meant by partnership? How this
ownership style is different from other ownership styles? Explain some of the
advantages of partnership?
Participation is an agreement in which two or more people acquire a share of
the profit and liabilities of the investment. Various arrangements may be. All
partners may share tasks and aids equitably, or some partners have limited responsibility.
Not every partner is certainly involved in the organization and actions of the
investment. In some authorities, partnerships benefit from a decent tax rate
The form of partnership of business
organizations goes beyond the limits of personal ownership. When a business
expands, a man is not able to arrange funds and risk.
He cannot monitor and manage all the
functions of a personal business. Therefore, two or more people will combine
their capital and skills to start and run a business; therefore, participation
means the extension of individual ownership.
Partnership is a voluntary association
of two or more persons who agree to participate jointly in a company share
their all profits and loss. They combine their all resources and skills to work
together. Some of the famous definitions of partnership include.
Partnership is a relationship between
competent persons for the purpose of creating a contract, which agrees to use a
legal business with respect to personal gain.
A partnership or company, often called
it, followed by a group of men who joined the capital or service to track down
some of the companies.
Partnership is the connection between
people who have decided to share business profits that everyone or any one of
them has for everyone.
Two or more peoples may form an
agreement by written or oral agreement that will cooperatively assume full
responsibility for the business.
Individuals who collaborate are
individually called “partners” and collectively
“companies”. The name under which it trades is called the
Ownership Style: Individual ownership is the
main type of business ownership, while the owner is only responsible for this
business. It’s not a legal entity that separates its owner from business,
meaning that the owner has all the responsibilities and responsibilities of the
business on a personal level. In return, the owner retains all profits from the
business. This type of commercial property is easy and inexpensive to create
and regulate the government, giving it a kind of flexibility of ownership with
Partnership Style: Contribution are a type of
business ownership in which two or more people act as partners. There are two
types of partnerships, which include public participation and limited
participation, which mainly involve coverage of responsibilities by the owners.
In a full partnership, all business owners have unlimited liability in the
business (the same as a single company). For a limited partnership, at least
one of the partners has a limited responsibility, which means that they or not
personal liability in personal business debt. Regardless of the type of
business, they are relatively easy and inexpensive to create, regulate and
apply only one tax, like a private company. The added benefit of a partnership
is a combination of knowledge and resources that has come to the table with the
help of additional owners. Profit must be shared among equity holders and there
is always the potential for differences between partners in business decisions.
This type of property is often useful in the early stages of the business. In
which several people are involved. Given the distribution of profits and extra
resources, this type of ownership is often expected to have a higher growth
rate and then a private company.
Advantages of Partnership:
Capital: Due to the nature of the business, the partners will trust the
business with startup capital. This means that the more partners there are, the
added money they can put into the business, which will allow improved
flexibility and more potential for growth. It also means more possible profit,
which will be equally shared between the partners.
Flexibility: A partnership is generally easier to form, manage and run business.
They are less strictly regulated than companies, in terms of the rules
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 extended as all the partners can agree.
Shared Responsibility: Partners
can share the responsibility of the running of the business. This will agree
them to make the most of their abilities. Rather than splitting the
organization and taking an equal share of each business mission, they might
well split the work according to their skills. So, if one partner is respectable
with figures, they strength deal with the book keeping and accounts, while the
other partner strength have a flare for sales and therefore be the main sales
person for the business.
Decision Making: Partners
share the decision making and can help each other out when they need to. More
partners mean more brains that can be chosen for business ideas and for the
solving of problems that the business encounters.
Q2. What is franchising? What are the advantages of franchising?
Explain franchising in detail with examples?
Ans. Franchise: Franchising refers to the method of
practicing and using another’s perfected business idea. In a franchise
relationship, the franchisee is granted the right to the market product or a
service under a marketing plan or a system that uses the symbol, design, name,
logo, and advertising owned by the franchisor.
Advantages of franchising:
• Provides independent franchises for small business
ownership that are supported by the benefits of a large business network.
• You do not necessarily need a business to enforce your
franchise. Franchisors usually provide the training you need to use your
• Franchisees have more success rates than starting a
• You can make financial security easier for franchises. It
may cost less to buy a premium to start your business of a similar kind.
• Franchises often have proven fame and image, proven
management and work practices, access to national advertising and ongoing
Franchising with example: A franchise is the license to
make or sell a product under certain conditions granted by the owner of these
rights. In other words, a franchise is the right to produce a licensed product
by the owner of the license. In this contact, the franchisee pays the
franchiser for the right to use the licensed material.
We often think of restaurants like McDonalds, Subway, and Burger
King when we hear the term franchise, but these companies aren’t actually
franchises themselves. The way it works is the McDonalds Corporation owns the
licensing rights to its product names, processes, and distribution network. No
other company can call its sandwich the Big Mac without permission from
McDonalds. That is where the concept of franchises comes into play. In an
effort to grow their global business McDonalds found out it would be too costly
to actually build buildings and run thousands of restaurants. Instead, they
decided to sell the rights to use the name McDonalds along with the products
and processes. This way the corporation doesn’t have to invest in new fixed
assets, but it can make a profit while expanding the reach of its brand. A
franchise McDonalds store is typically privately owned and must pay the greater
corporation an amount each year to maintain its franchise. It must also adhere
to specific production and quality requirements. Have you ever wondered why
every McDonalds franchise is exactly the same? Well, that’s because each
franchise is required to make their burgers, shakes, and fries exactly how the
corporation tells them to.
Q7. What are the advantages of business website? How website play
an important role in any business development?
Ans: Advantages of business website:
1 – Increase New Business:
If you need a plumber or electrician, you might want to start your
search instead of searching through the yellow pages. It’s easier to simply
turn the “plumber” into a search engine. By increasing the number of
people searching for even local services, you can rest assured that your main
rivals, either the website or the one you choose. This is a very real advantage
of a website.
2 – Save Money:
Advertising in articles, magazines and other traditional online
media is usually cheaper than online advertising and for many businesses,
something from the efficiency rule decreases, and even more people turn into
the web. Even businesses that simply use their website as an online brochure to
necessarily directly capture traffic, save considerable costs due to printing
costs. Of course, electronic media are widespread for the environment.
3 – Provide Information:
Websites can be set up to provide the exact information that your
customers need. Some companies simply need a basic business explanation,
address, and phone details. Others add recommendations, photographs, and other
detailed information that, if properly created, can create a level of trust in
your company that is hard to get to it offline. The website designed to allow
the user to quickly navigate to the product or service information most
interested in – often much more than the same brochure printed. Naturally,
information can be kept fully up to date, more peace of mind and increased
4 – Beat the Competition:
If there are a lot of competitors, how many of them have good
websites? Or in fact, how many people have websites? By creating a better
online presence that is better off selling them, you can get market share at
the expense of your competition.
5 – Attract a New Type of Customer:
Following on from the theme of the new business, people are using
more and more mobile phones, PDAs and other handheld plans to access the
Internet. Some of them may be in groups that you cannot access or target
before. With the right website, you are suddenly driven into your world.
6 – Get Interactive Feedback:
Modern websites are something of a multimedia issue. You can add a
blog and may include videos, audio, live chat, opportunities, RSS feeds and
even podcasts. All these elements can attract customers and create attention.
You can specialize in your subject matter and communicate directly with
potential customers, creating reputation as you offer. By entering talks with
potential customers and customers in this way, you can ask for the kind of
feedback that offline marketers can only dream about.
7 – Develop a Brand:
All large companies have a recognizable brand. While Coca-Cola is
a globally recognized brand, most of us are on a relatively smaller scale. It
is said that global Internet access will make small businesses make their
reputation and brand fast and in the most cost-effectively priced framework.
Businesses who have never considered brand or brand value before can now take
this to their full advantage in gaining a share of the mind and thus a market
share. A well-designed and well-built website is the starting point.
8 – Create Return Business:
Everyone can easily lose a business card or forget the name of the
builder seen in the local phone book. However, if they have stored their
favorite Web site in their “Web Browser”, they can reappearance to
your site whenever they need more information or help. Reusing interactive
media, useful information, questions and answers, and community software can
maintain a high level of conversation and thus help customer loyalty. Another
great advantage of a website.
9 – Provide Guidance and Information:
In an offline world, you may regularly have a great idea or
information that will be very helpful to your client base. However, sitting and
creating a letter or e-mail to keep them close to date was almost impossible:
after all, you have a business to run. At the moment, with a decent website,
you can add this information directly to the site and let your subscribers know
at some point in time to write your information. Newly updated information will
not only bring your customers back to their site, but will also help convince
search engines that you have a higher position to determine the relevant related
conditions, resulting in more traffic and potential new business. You increase.
You also need to convince potential customers that you are the best company for
the product or service you are looking for.
10 – Create Privileged Connections:
With modern Internet security, online payments can be made
securely, but other information can also be transferred safely between
computers. For example, you can create passwords, for example, to allow you to
enter restricted Web sites. Many website owners have made this a link to create
a VIP section, maybe for strategic business partners or major customers. Given
the current economic climate, regardless of (or sometimes) online growth, even
more time is considered for online presence.