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Question - Forming partnerships
Divide into groups of three or four according to students' major areas of interest - for example, a group of commerce students, a group of management students, a group of marketing student. Discuss the following and report back to the whole class.
1. If your group formed a partnership to carry out the business of your major area of study, how would you determine who was the senior partner?
2. On what basis can you agree to share profit? Would this be affected by the amount of capital each partner contributed or would you share profits evenly? Would you pay interest to the partners based on their capital contributions?
3. Would you consider paying each partner a salary that reflected their expertise, experience or ability to generate business for the partnership? If so, how would you determine the impact of such factors on the salary of each partner?
4. What other factors would you include in a partnership agreement?
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In the given assignment we have discussed about the partnership agreement. We have mentioned about the different factors that are included in a partnership agreement like the name of the partnership firm,what type of business it is engaged in, terms and types of partners, power to take decisions, where and when the meetings are to be carried out. The agreement also mentions the method through which the partnership can be dissolute.
The assignment in management is a two part assignment dealing 1.Theory of function of management. 2. Operations and Controlling.
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