Case Analysis- Abraham's grocery - Assignment Example

Insert Case Analysis: Abraham Grocery General partnership In this structure, it is composed of two or more not married persons who come into an agreement to raise funds, skills, and labor to a business. In this case, there is equal sharing is profits; loss and management of business allowing each partner to have equal liability for debts of the partnership. They normally put their formal terms of the partnership agreement is contained in written (Laing). In this context, Bill Abraham and his sister Doris invested through their small inheritance and started a business, which eventually was very successful.

Limited liability structureIn this partnership, there is a bigger similarity to the general partnership but a small difference is that the partner does not have individual liability for the refusal of another partner. As per the Abrahams and Doris case, they sought for a professional advice to gain more advantages over other failing businesses in town (Laing).Advantages of the general partnershipa) The owner is a receiver of all benefitsb) Require low costs to start since there is no filling chargesc) Free and individual decision is made by the owner related to businessd) Income taxes are the only costs incurred by profitsDisadvantagesa) When the owner dies, business may come to an endb) Rising of capital depends on personal fund funds which also limits the size of business.

Advantages of limited liabilitya) The business will have limited liabilitiesb) Pass through taxationc) Limited ownershipd) Flexibility in the allocatione) Freedom of managementDisadvantagesa) Increased building capitalb) Higher fees ratesc) Regulation fro the governmentd) Taxatione) Lack of case law The structure that is advisable for Abrahams is General partnership because it has fewer disadvantages, and it has centralized management of business.Works CitedLaing, Gregory Kenneth. Different Strategic Types Operating In The Same Industry: A Multiple Case Study. BMS 4.1 (2013): 71. Web.