Partnership Accounting
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings, admission of a new partner, etc.
Partner Admission and Withdrawal
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings of a partner, etc.
1.Discuss the advantages and disadvantages of creating a partnership and say why the company format was chosen instead.
2.Discuss whether or not the creation of a partnership could hamper their ability to borrow to fund their operations.
3.Discuss he advantages and disadvantages of forming a company.
4.Discuss whether they should form a public or private company and whether the company should be unlimited or limited. If you suggest that the company should be unlimited, should the company be limited by shares or by guarantee. Give reasons for the type of company chosen.
5.Discuss how the creation of a company may impact the ability of MM, AA, BB and SS to borrow money to fund their operations.
6.Describe and discuss two (2) corporate governance theories that may assist MM, AA, BB and SS in running their business.
7.Discuss how MM, AA, BB and SS may approach the appointment of Directors to their company and whether or not any or all of them should become Directors given their specialisations and years of experience. Discuss how they may address real or potential conflicts of interest.
8.Discuss how they may address the issue of compensations for Directors and senior management in their company.
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