Please help with the following:
- Identify the pros and cons of partnership as a form of ownership.
- Discuss funding options for small businesses.
- Determine and discuss how managerial accounting can help managers with product costing, incremental analysis, and budgeting.
- Discuss the basic components of the marketing process using a product or service of your choice as an example.
- Discuss the roles of social responsibility and technology in the marketing function
While completing the above, please be sure to also:
- Distinguish between the major forms of business ownership and compare the advantages and disadvantages of each.
- Define entrepreneurship and the nature and importance in the U.S. economy of small businesses.
- Describe the basic accounting process and the financial statements used in business.
- Identify the basic components of the marketing process (product, promotion, pricing, and distribution).
- Use technology and information resources to research issues in business.
When going into business there are several different types of ownership that one can have in or over a company. A partnership is one such type of ownership. This type of ownership is a business relationship that two or more people enter into in hopes of carrying on a business or trade. These individuals bring money, property, skill, or other resources to the table, and together share the profit or losses of the company (IRS, 2012).
When going into business with a partner there are many things that need to be considered before writing up the agreement. This is because when two or more people have a vested interest in an organization and how it is run the changes of disagreements arising is much higher. For this reason one of the cons to being in a partnership is that all partners are not only liable for their actions and decisions, but also for those of the other partners (SBA.gov, n.d.). The chances of disagreements are much higher on things like how the organization should be run, financial disagreements, how the profits should be split, or the losses should be distributed. The need to discuss decision with the other partners before they are made is necessary to ensure that everyone agrees. This time that is needed to contact the other partners before a big decision is made could cost the company profits, a big client, or even the support of the employees. There is a need to at times compromise ones feeling, thoughts, beliefs, or decisions to ensure harmony among the partners. One other major drawback of a partnership is the instability of it. While all partners involved were eager to get started in the beginning one or more of them could get bored and force the partnership to dissolve (SBA.gov, n.d.). For this reason and many more the need for a partnership agreement that maps out how certain issues will be handled is essential for the protection of everyone involved.
While a partnership comes with many cons that should be weighed very carefully they also come with pros that may out weigh the cons, or make them a little easier to handle. For instance partnerships are one of the easiest and most inexpensive ways to start up a business (SBA.gov, n.d.). This is due to the fact that there are several individuals bringing in funds, property, or other resources that could be harder for one person to come by alone. The shared financial commitment of those in a partnership makes it easier to fund the start up, and to keep the company moving forward. Another pro of a partnership is the knowledge and skills that each member of the partnership brings to the table. While one partner may not be good at financial matters another may, the diversity of the partners allows them to benefit from each other's strengths. Some partnerships have employee incentives that are an added bonus because they help to ensure the talent is never lacking (SBA.gov, n.d.).
When considering opening a business the question that comes to mind is how to fund it. There are many different options for funding a small business. A few of these options are debt financing, grants, or equity financing. Debt financing is basically taking out loans from banks or putting expenses on personal or company credit cards. This type of financing creates debt to fund the business, but can have some advantages if done properly. In debt financing there bank or credit union has no control over the business so all decision on how it is run remains in the hands of the business owner (National Federation of Independent Business, 2013). As soon as the money is paid back in full the relationship between the business owner and the bank ends, also depending on the type of loan that is taken out the interest that is paid could be tax deductible (NFIB, 2013).
Of course like most things there are ...
The solution describes financing and marketing a business.