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Business Enterprise

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In addition, it also engages in several deals geared towards profit making. I t also involves taking risks in the distribution of goods and services. When starting a business, it is important to start by conducting a market analysis. These enable one to identify the existing opportunities and dangers in relation to the strengths and weaknesses of the organization. A firm can come up with affordable prices through rebating their customers at the end of every year. This process depends on the amount of products purchased by the customer. They can also carry out price reduction such as offering commissions on the products purchased. Market analysis involves assessment of the market size, trends, profitability distribution channels and industry cost structure among others. Entrepreneurs should find an appropriate way of raising capital in order to advertise their business ideas. Equity financing is one of the ways of financing a business. Its major advantage is that the new business owner can refund the loaned amount through a fixed period. Other business financing sources include personal funding, friends and family, debt financing, loans, government funding among many others (Aaker amp. McLoughlin, 2010). When starting a business, there are various structures one can use depending with the business. Limited Liability Partnership ensures that the accountability of partners is limited to one’s amount of money invested into the business. LLPs often experiences risks, losses and responsibilities like any other business. It is similar to an ordinary partnership though it offers limited personal responsibility for debts. When forming a limited liability partnership, one has to ensure that at least two partners are designated members. The two members are authorized to carry out extra statutory duties in relation to the supervision of the business. Just like limited companies, Limited Liability Partnership businesses should be registered at Companies House thus increasing the sum of paperwork that is needed. The partners in an LLP remain self-employed though they share tax depending on the amount profit acquired (Schell, 1999). In United Kingdom, LLPs are directed by the Limited Liability Partnership Act of 2000. A UK LLP is a corporate body. it has a continuing legal survival independent of its members. A UK LLP’S members have a collective responsibility. The partners can often settle in an LLP Agreement with no several responsibilities for one’s actions. Unlike sole traders, the LLP itself, not individual members are answerable for any debts it encounters unless the individual has personally guaranteed a loan. Members in an LLP cannot lose more than what they had invested in the absence of wrongful trading or fraud. In relation to tax, the LLPS do not pay UK tax, but its members pay in relation to their income. The taxing process is often free as the individual is responsible for one’s tax depending on the income (Crouch, 2000) LLP is an exceptional entity in its creation of collective and individual rights and duties. It is flexible and contains no strict requirements for its approval because of its simple partnership- based principles applies the way of default supplies. LLP structures are also beneficial in terms of finances and enhancing staff morale. The business builds staff loyalty by considering them business partners. The LLP also faces some few challenges such as the junior members pursuing to participate in management decisions.