Business Studies

Advantages and Disadvantages of Partnership

len Alfred Ajibola - 13th June, 2022 @ 02:02 PM

Topics in Business Studies

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Academic Questions in Business Studies

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An accounting system focused primarily on a balanced debit and credit side is termed _____.

  • A. Ledger system

  • B. Journal system

  • C. Double entry system

  • D. Balance sheet system

  • E. Principle of accounting system

  • F. Balanced accounting system

With regards to money, which of the following statement is incorrect?

  • A. Money is crucial for the survival of every human being

  • B. Money is completely advantageous

  • C. Money is defined as anything that is generally accepted as a medium of exchange

  • D. Monopoly is said to exist when money and wealth exists in the hands of a few

  • E. Excess money in an economy can lead to inflation

  • F. When a person receives money that isn't commensurate with the job he or she had done, then that's underemployment

Which of the following statement is wrong with regards to business?

  • A. Business involves the exchange of something for another thing or money

  • B. Business is an economic activity

  • C. In business, profit goes beyond money

  • D. Businesses do not have social responsibilities to their customers

  • E. The exchange of services is an aspect of business

  • F. Businesses can be affected by government policies

Consumer _____ are the laws and methods put in place by various agencies so that consumers can enjoy maximum satisfaction on the goods they buy and services rendered to them.

  • A. Protection
  • B. Policy
  • C. Rights
  • D. Defence
  • E. Guide
  • F. Safety

Which of the following is not a characteristics of business?

  • A. The buyer and seller must always come into a contract agreement

  • B. Risk from unforseen circumstances is involved

  • C. They are subject to policies made by the government

  • D. All business transaction is aimed at making profit

  • E. It requires a discontinuous transaction between the buyer and the seller

  • F. Investments are required to begin a business

Which of the following is not a Right of Consumer Protection?

  • A. Right to Education
  • B. Right to Choose
  • C. Right to Safety
  • D. Right to the Good things of Life
  • E. Right to be Assured
  • F. Right to Compel

Which of the following is NOT a government agency of consumer protection?

  • A. Ministry of Sports
  • B. Ministry of Commerce
  • C. Consumer Protection Council
  • D. Ministry of Health
  • E. Ministry of Environment
  • F. National Drug Law Enforcement Agent

Define Consumer Protection.


What is partnership in business?

In business studies, partnership is considered as one of the popular forms of business structures.

Partnership in business is defined as a legally agreed business structure consisting of 2 - 20 persons coming together (excluding married couples) with the aim of utilizing their money and skills for the purpose of building a business together.

Please read on the concept of a business structure here.


Partnership can exist in three forms. These are:

  1. General Partnership (GP)

  2. Limited Partnership (LP)

  3. Limited Liability Partnership (LLP)

Please read the introduction to partnership and its forms here.


Advantages of Partnership

  1. More startup capital is made available.

  2. It is easy to establish.

  3. A partner may be more knowledgeable on the business, thus adding a great value to the business.
    You can read on the forms of division of labour here.

  4. There is a better chance of getting loans.

  5. The burden of a loss in the business is reduced since all the partners share a part of it.

  6. There is no need for complex reporting in partnerships.

  7. They are easy to dissolve if the need arises.

You can read on the advantages and disadvantages of the wholesaler here.

 

Disdvantages of Partnership

  1. There is a risk of disagreement between partners.

  2. Other partners may be liable for a partner's debt in general partnership.

    You can read on the disadvantages of money here.

  3. The nonchalant attitude of some partners can become a liability on the business.

  4. There is a potential instability in partnership since members can easily withdraw from the business.

  5. A partner may be liable for the negative business actions of others.

  6. Debt liabilities can be unlimited.

  7. A fee is payed when the certificate of a limited partnership is filed with the state. This is crucial before a limited partnership can be formed.

Please read limited liability company here.

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Amazing facts in Business Studies

The world's 100 richest people earned enough money in 2012 to end global poverty four times over


NOTABLE POINTS IN Business Studies

Consumer protection refers to the ways or methods through which consumers enjoy maximum satisfaction from the goods they buy and services rendered to them.

The agencies of consumer protection assists in protecting the consumer rights. These agencies may also be referred to as the organs of consumer protection. Basically, we have three of them, they are:

  1. Government Agencies

  2. Independent Agencies

  3. Legislation

Please read on consumer protection here

One of the responsibilities of the government of every nation is to set up agencies or organizations that will protect the interest of the consumers and invariably, the people.

Below are some of the government agencies of consumer protection:

  • National Drug Law Enforcement Agency (NDLEA)
  • National Agency for Food, Drug Administration and Control (NAFDAC)
  • Consumer Protection Council (CPC)
  • Rent Tribunal
  • Ministry of Health
  • Ministry of Commerce
  • Ministry of Transportation
  • Ministry of Environment
  • National Wages and Salaries Commission

Please read on the government agencies of consumer protection here