What you know about partnership

What you know about partnership

Partnership is a mutual relationship between two persons for some profit making activity. Individual, we call them partners and jointly, we call them partnership. A partnership is a result of an agreement between the social unites or human being for some economic goals. Any partnership requires two or more persons which share their profit in a fix ratio. May be this agreement is in a written or oral format.

What you know about partnership

Main feature for partnership –

ü  Minimum two persons – In partnership, we require two persons at a minimum as per law and maximum is 20. It will not be a partnership if companies not follow the criteria.

ü  Agreement – every partnership have an agreement. Without agreement there is no accountability. If some persons have a relationship & doing work but they did not have a agreement, we not call it agreement.   

ü  Every partnership has some activity/business which produces some economic gain.  There is no partnership for functions and charity

ü  Every business/partnership has a mutual benefit and all those efforts carry out by all partners and all economic gain divided into a fix ratio.

ü  High risk is involved in partnership and partners will be responsible for interested and related party payments.

ü  Partnership requires a high level of blind faith on each others. Very actions should be taken for mutual benefit of the company.  

Business objectives

Business objectives

Every business starts with some objectives. These objectives always define the path or way of business. It also includes future steps and decision according to the demand of the future. Mostly, we found two types of business objectives – economic and social objectives. In economic objectives, we mention economic gain or profit making, production of goods and services, making market share etc. In current environment, every business has some social responsibility/objectives also like employee relationship, customer satisfaction & mix activity for society etc.

Business objectives

Here, we mention some economical objective of a business: -

Economic gain or making profit: - this is the primary goal of every business activity. Economic gain or making profit, we show in terms of income, return on investment and growth etc. Nobody start a business without profit making. Every company or business, if trying to survive in the market or looking for a growth number & income, these activities shows a interest for economic gain or making profit.

Product – goods & services: - every company has some product in terms of goods and services. If a business looking to increase production on the same cost, they are looking for more customers or market share. Price war some time generates cost cutting also.

                                                                                                       

Making market share: - customer is the base for all the business activity. Every business tries to increase the market share by increasing the production on same cost or by cost cutting or by decrease the price of goods and services. A business only exist the market who have a adequate number of customer for their goods & services and they are increasing their customer according to the time run.