Business Report Coursework Example | Topics and Well Written Essays - 1500 words

Business Report - Coursework Example 50,000. ?25,000 would be borrowed capital, which would be used in refurbishing the retail premises while the other ?25,000 from my savings would be used in the purchase of the required stock as well as the initial running costs. Type of Business The type of business to be established would be a partnership business. In a partnership business, the law requires that at least two partners form the business. According to the Partnership Act 1890, a partnership business should consist of at least two partners with common business with a view of making profits (legislation.gov.uk, 2013). A partnership is typically an agreement between at least two people willing to finance and operate a given business. The minimum number of the people forming the business is two. Unlike some other forms of business such as sole proprietorship, partnership businesses are entities, which are separate from their partners. In a general partnership, losses and profits flow all through to the tax returns of the partners. In this case, the general partners have equal authorities and responsibilities in running the business. All partners need to be involved in everyday activities of the partnership business (Entrepreneur Media, Inc., 2013). All general partners are involved in making decisions. The law also gives any partner to represent the partnership business even without the other partners’ knowledge. ... These procedures are regardless of whether the partnership would be general, limited, family, or incorporated. The following steps would have to be followed: i. First, we have to determine the number of partners. In our case, the business would be formed by two partners, my friend and I. We would agree between ourselves, as the business partners on, the most important or key issues. One of the key issues to be considered is the limits of liabilities. The limits of liability could be set according to our capital investment, contribution to the business, or the use of goodwill. We would also agree on the level of authority that each of us would hold concerning the partnership business and its operations. Such agreement on authority level would mainly reflect on the issue of making binding agreements and signing contracts on the partnership’s behalf (Global Syndicated News, 2012). ii. Secondly, we would draw up a legal Partnership Agreement that would highlight the key aspects of the partnership business including the roles, liabilities, and authority with regard to each partner. Under the same agreement, we would state about the distribution of assets and profits. In the Partnership Agreement, we would consider partnership elements such as the business name, terms of the agreement, capital employed, provisions of profits and losses, salaries and withdrawals, restrictions and management duties, banking, books to be used, voluntary termination, cases of death, as well as arbitration. Each of these elements would be stated clearly in our Partnership Agreement (The Wall Street Journal, 2013). iii. We would then proceed with an application for a Tax File Number (TFN) for our business (The Wall Street Journal, 2013). iv. We would also