Business Plan:Shake a lot - Essay Example

The long term objective of the business is to make a name among the various classes of consumers. The short term objectives include assessing the market for drinks, understanding the tastes and preferences of the consumer and adapting as per their requirements. The main advantage of setting up the business as a ‘partnership’ is that it offers ‘financial protections’. It is a form of “contractual relationship” between the involved parties and is regulated as per the partnership laws of the respective countries.

A partnership business in UK confers various advantages such as flexibility, tax transparency, no requirement for public filings. The process of formation of this type of business is both simple and flexible and does not require any registration. As the profits or losses of the business belong to those of the partners only there are no tax related issues thereby facilitating tax planning. Moreover the partnership businesses do not have to file their statements with any regulatory bodies thus saving them from the time consuming process of public filings.

However, a major disadvantage of the partnership business is that the all the partners are jointly and individually responsible for the deeds or misdeeds of the other partners (Hewitt, 2005, p.55). The persons forming a partnership enter into a written agreement that specifies the responsibilities and rights of all the partners. This agreement covers all the important issues affecting a partnership. To set up this form of business there is no need of any official approval (Clifford, & Warner, 2008, p.7). The Limited Company is another form of business structure with its own share of advantages and disadvantages.

The main benefit for a limited Company is that there is no dearth of financial resources as money can be raised from public through the issue of equity. Moreover the liability of the members is limited to the extent of their ownership in the business. However a limited company