Eng 215

1. Identify the pros and cons of the partnership as a form of ownership.

The most basic type of partnership is a general partnership,. Also, disagreements among partners can complicate decision-making. Finally the death or withdrawal of a partner can create instability and uncertainty in the management and financing of the company.

A General Partnership is subject to partnership agreement; all partners have equal rights in the management of the partnership. The Pros of General is that the partnership may designate particular partners with particular skills to make decisions in that area and reserve the more important decisions to the partnership as a whole. Cons to consider is that each partner has rights in management and may contractually bind the partnership. Each partner is responsible for the contracts that the other partners execute and the liabilities that they incur. The possibility of disagreement and deadlock exists.

The other partnership is Limited. In a Limited Partnership at least one general partner is responsible for the management of the partnership. A limited partner may not participate in the management of the business or the limited partner runs the risk of becoming personally liable for the debts and obligations of the limited partnership. Pros to this partnership include that a general partner may vote on matters related to the business of the partnership provided such matters are subject to the approval of the limited partners. This also must be spelled out in the agreement. Cons are that an individual may be reluctant to invest in this partnership because of the limits on participation in the business. This could also cause the partnership to experience difficulty raising capital.

2. Discuss funding options for small businesses.

For many entrepreneurs, finding the money to fund their business is the top challenge of their start-up year. The vast majority of new firms are funded by the...