Creating, Financing, and Marketing a Business - Essay Example

In addition, the distribution of losses and profits and the design of the organization are more flexible than in other modes of businesses, for example, corporations. Third, partnerships have the capacity to pool funds. This decreases the financial weight of an individual operating a business and increases the rate of growth for the business. Nonetheless, partnerships have disadvantages. First, Conflicts between partners can cause disorders which may hinder the partnership from staying focused and achieving its objectives.

Also, conflicts can make the partners want to leave the partnership. This may create uncertainty over the future of the partnership. Second, a partner is considered an agent of a partnership. Therefore, a partner’s inadequate management ability, inadequate decision making, inadequate negotiation ability, or inadequate judgment may have a negative impact on the partnership and cause every partner significant burdens. Third, partnership law does not adequately safeguard a partner’s investment in the business, except if a partner can give evidence of a partner violating partnership terms (Mohan, 2005).

Finally, it can be difficult to make decisions. Partners in a business partnership may not come to an agreement on the undertakings of the business. Part b Venture Capital Venture capital can be helpful to small businesses when they want to expand or increase their operations. Venture capital comprises trading interest in the business (Mohan, 2005). Moreover, the interest is sold with a finance group or company, not individuals, devoted to assisting the business increase its operations. Debt Financing A small business may be set up through loans.

An individual with a decent credit and is recognized with a bank may get a business loan from a credit company or bank (Mohan, 2005). If a small business is unable to get a loan from a bank, a person may get a loan from the federal small business administration. It helps small business owners acquire funds. Equity Equity entails getting investors to finance a business. A small business may grow by selling a share of the business. Investors can be partners known to the business, for example, local entrepreneurs, business associates, and family members or private partners.

Family and friends are the greatest source for equity and loan deals. These people are less strict on loans and anticipated earnings on investment (Mohan, 2005). Part c Managerial accounting refers to the comprehensive figures utilized for inner company or organization members. Managerial accounting comprise things such as cost of turnover, cost of the product, cost of employee benefits, cost of shipping, and every data that is of importance to a company. Managerial accounting can assist managers utilize the numbers to perform their jobs effectively and effectively, taking into account budgeting, product costing, and incremental analysis.

Human resources managers can utilize the benefits and cost of turnover to give improved salaries and ascertain the budget. General Managers can employ the figures to evaluate product costing and perform incremental analysis. If a General Manager requires establishing if the prices of products are rightly set, he may review the data on sales to determine if demand has been met by supply. If the sales are low, the company may make additional products, buy less, or reduce the price of products (Mohan, 2005).

In addition, managerial accounti