Business: Marketing Mix Essay

Submitted By biglar26
Words: 5262
Pages: 22

Identify the pros and cons of the partnership as a form of ownership. • Pros of having a partnership are that you will have help with your business. When you are gone then they can take over until u get back. Con of having a partnership is that may try and take over the business. They may steal all of the money that the business is making. They may try to make you sale your have of the business. They may try to make to make changes to the business with out u knowing. [Advantages are one of the main characteristics of a partnership is its unlimited liability, although it may be too risky from the viewpoint of the partners, it's highly appreciated and reliable from the perspective of external entities who are in close relations with the partnership such as lending firms, suppliers, banks and other external stakeholders. In addition, the combined personal credit of partners give a better opportunity and easier means of financing business operations or raising additional capital. Similarly, the presence of more than one owner allows closer supervision and a more hands-on management of business operations. A partnership is also easier to organize compared to corporations as the mere consent of partners can perfect the partnership contract. Likewise, each partner also has his/her own personal network that can in one way or another, help the business expand on find more lucrative and better propositions. Disadvantages are despite its many advantages, entrepreneurs often shy away from the idea of forming a partnership because they understand that such form of business ownership gives a particular person a limited control over operations and managerial affairs. It's common that entrepreneurs are people who are ambitious and are up to the challenge of leading so it would be a difficult task to merge egos and control each partner's entrepreneurial spirit. Moreover, partnership is vulnerable to disagreements and dissensions among partners that may lead to the dissolution of the partnership given that such form business ownership is less stable and can be easily dissolved by just the mere withdrawal of one partner. Consequently, a partner may be subject to personal liability in case of fraud, wrongful acts or contracts done in bad faith by his/her associates which is the reason why many people think twice before investing capital in a partnership. By John Louie Ramos Webpage is http://www.helium.com/items/1887642-pros-and-cons-of-partnerships ] •
Discuss funding options for small businesses.

Funding for a small business should be a small loan because it shouldn’t cost that much because it is a small business. I think started with a small business is better because just in case it doesn’t work out then the money you borrowed it is easier to pay back. [Debt Financing is many small businesses start up with loans. If you have good credit and are established with a bank, you may be able to get a small business loan from a bank that knows you. However, banks are often reluctant to loan to unestablished businesses. You can get around this by going through the federal Small Business Administration, which assists entrepreneurs with securing financing, including SBA guaranteed loans. When the SBA backs you for a loan, lenders' risks are diminished and they are more willing to lend. Equity is attracting investors is another way to get money. Selling a share of your business may mean you aren't solely in charge or won't receive all of the business' profits, but it can be a way to start or expand your business. Investors can be private, silent partners you may already know, such as family members, business associates and local entrepreneurs. Venture Capital is when you are looking to expand on a larger scale, venture capital can give your business the shot in the arm it needs. Venture capital also involves selling interest in your company, but instead of with individual investors, with a company or financing group dedicated to…