FORM OF BUSINESS ORGANIZATIONS

Partnerships

DEFINITION:

Partnership is an agreement between individuals who agree to jointly own or run an enterprise, contribute to it by combing their money and knowledge, and share in its profits.

Ownership and control:

A partnership is formed when a sole trader finds that more money is needed to expand the business and that someone is needed to help run the firm .partnerships can be formed with a little formality. They are common amongst doctors, veterinary surgeons and other professional occupations.

Partnership:

1. 2 or more partners (usually a maximum of 20) own the company

2. Partners are responsible for all debts (unlimited liability)

3. Partners make all the decisions4. Lack of capitals

ADVANTAGES:

1. Partnerships bring new skills and ideas to a business.

2. More partners means more money for the business . If more people want to share in the ownership and control of the business then they must pay money to do so. This money can be used to expand the business.

3. Partners can help in decision making. A sole trader has full responsibility for making business decisions , whereas in a partnership all decisions are shared.

Disadvantage of partnerships:

1. Partners can disagree. The more the partners the likely are the disagreements to be. If partners can not agree on important decisions affecting the business, the business may suffer.

2. Partners may have unlimited liability. Like a sole trader , partners stand to lose every thing they have if the business go bankrupt. Each can be held responsible for the action of other partners.

3. Partnerships lack capital. Because there are more people in the partnership the business will have more money than a sole trader , but still it is difficult for a partnership to have more than 20 partners. This puts a limit on the amount of money that may be brought in to the business

Interview:

Junaid jamshed

Competitors Threads, Portia etc

Peak month Ramadan

Future plans New branches all over Pakistan

Range of products Men kurtas, sherwanies, vescoats, peshawari chapals, khusse, perfumes, ladies suits

Business name Junaid jamshed (JJ)

location Hyderi

Form of business organization Partnership

Partners/owners Junaid Jamshed & Sohail Hamid Khan

Staff manager Hafiz Umair

Started/ inauguration 13 years ago

Nature of the business Garments business

Special/most selling product Men kurtas

Working hours 11a.m – 10p.m

Economics projectMade by:Students of :beaconhouse school system NORTH NAZIMBAD,CAMBRIDGE

BRANCH KARACHI,PAKISTAN

1.WARDA KHALID 2.MAHNOOR NAVEED

3.HARIS JALEES4.MOHAMMAD BILAL

PRESENTED TO: SIR ABDUL SAMI