Business LAw 2 - Assignment Example

Introduction General partnership is a business organization in which two or more persons come together to form a business with the aim of realizing profits. In opting for this form of business organization, we considered several factors in the formation of businesses and opted for this form of business given the several flexibility associated with the business. These include; during the formation of the business, the legal requirements are not tedious and lengthy (Dobson, & Stokes, 2008). One undergoes few legal formalities and the business will be granted the permission to legal exist as opposed to other forms of business organization like the limited companies.

In the partnership, the partners are directly involved in the daily running of the business and have the opportunity to acclimatize with the requirement of the business and ensure efficient and smooth running of the business (Fletcher, 2002). In addition to these, there are also different expertise brought together in running of the business hence specialization and division of labor. Policies of the Company during Formation During the formation of the company (partnership), we will have to form the reference policies that will be used for the daily running of the business. . In this sense, the profit or losses realized in the business will be shared according to the assets and capita contributed during the formation of the business. II. Division of Duty and Responsibilities The duties in the partnership will be equally divided given the number of the partners in the business.

In the business, there will be no dormant partner and expenditures incurred following outsourced labor will be considered liabilities of the partners of the business (Gage, 2004). III. Dissolution of the partnership Partnership will be in existence until such a time that the following hypothetical situations stipulated in this agreement realized; death of a partner, when the business run into bankruptcy, and when declared by court of law as engaging in unscrupulous business (Hall, 1984). During the dissolution f the partnership, the business assets and the profit or losses will be shared according to the stipulation given by the clause describing Capital and profit sharing. IV. Incorporation of the new Partners The partnership will remain open for the incorporation of new partnership given they make asset and capital contribution equivalent to those already in the business.

The contribution of each partner will be proportionately be determined and profit and losses shared according to the proportion made in the contribution (Lowe, 1999). Policies on the Breach of sale and Purchase of Products In the partnership business and just like any other business, there are sales and purchase of products. These operations in the business require that certain terms and conditions be made and the parties have to adhere to them, failure to