Major Facts About Partnership And Business

A partnership can be defined as an association of two or more persons who have agreed to combine their labor, property, and skill, or some or all of them, for the purpose of engaging in legal business and sharing profits and losses between them.

Partnerships present the involved parties with special challenges that must be communicated before agreement. Overarching goals, levels of give-and-take, areas of responsibility, lines of authority and success, how success is evaluated and distributed, and often a variety of other factors must all be negotiated. Once agreement is reached, the partnership is typically enforceable by civil law, especially if well documented. Partners who wish to make their agreement affirmatively explicit and enforceable typically draw up Articles of Partnership.

A partnership is particularly very attractive if it helps to pool the talents or skills of partners for their mutual benefit. Partnerships require individuals who are compatible, honest, healthy, capable, dedicated and equally motivated to succeed. And because of the voluntary nature of partnerships, they are reliably easy to set up.
The term business in this definition includes every trade, occupation, and profession. Therefore, this article becomes very necessary for every individual to have the idea of ​​bargaining / planning and negotiation in any kind of business level.

Humans are social beings, partnerships between individuals, businesses, interest-based organizations, schools, governments, and diverse combinations thereof, have always been and remain commonplace. In the most frequently associated instance of the term, a partnership is formed between one or more businesses in which partners (owners) co-labor to achieve and share profits and losses. Partnerships exist within, and across, sectors. Non-profit, religious, and political organizations may partner together to increase the likelihood of each achieving their mission and to amplify their reach. It is sometimes considered as alliance, governments may partner to achieve their national interests.

A partner acts as an agent of the firm in the conduct of its business. A partner must, however, exercise the highest degree of good faith in all transactions with the other partners, devote time and attention to the partnership business, and must account to the other partners for any secret profits made in the conduct of the partnership business. The liability of a partner for partnership debts is said to be unlimited, except when the partner is a limited one in a limited partnership organized in accordance with the provisions of a state statute permitting such limitation of liability.

A partnership comes into existence by a contract entered into by the parties concerned. No formality is required but the agreement could be writing, inferior from conduct or oral. The agreement to form a partnership is known as a "Partnership Contract", the most important provision of which spells out the manner in which profits are to be distributed.

Partnerships are governed by the law of contract. It is advisable for individuals who wish to form a partnership to draw up what we called "Articles of Partnership". The article of Partnership essentially contains these items below:
• Name of Partnership
• Name and Addresses of each partner
• Statement of Business Purpose (s)
• Duration of the Partnership
• Name and Location of the Business
• Amount Invested by Each Partner
• Ratio for Sharing Profit
• Accounting Records and their Accessibility to Partners
• Specific Duties of Each Partner
• Provision or the Dissolution of Partnership and Sharing of Net Assets.
• Provision for Protection of Surviving Partners, Decedent's Estate, etc.
• Restraints on a Partner's Assumption of Special Obligations.

There are five types of partners:
1. Active Partner: – This is the partner who participates in all the activities of the partnership.
2. Dormant or Sleeping Partner: – This is the partner who does not take an active part in the activities of the partnership but shares in the profit.
3. Nominal Partner: – This is a person who lends his name to a lends his name to the partners for a consideration.
4. Secret Partner: – This is a partner who takes an active part in the affairs of the company but he / she is not known by the public as part of the partnership.
5. Silent Partner: – This is a partner who is known by the public as part of the partnership; But he / she does not take an active part in the management of the enterprise.

1. Greater Source of Capital: – The pooling of the individual resources of each partner helps to raise a large capital. It makes it possible for an individual with the know-how, new product, invention, or new idea but no money, to work with man with money who is interested in the project.

2. Greater Specialized Management: – The ownership of a business by two or more people makes it possible for them to pool their skills and judgment for the benefit of all concerned.

3. Greater Incentive for Employees: – Employees in partnerships tend to enjoy better fringe benefit package and higher salies. They have better prospects for earned recognition and promotions.

4. Legal Recognition: – There is a partnership law that regulates the relationship between partners themselves, and between the partners and their parties that they have to deal with.

1. Personality Clashes: – Partnership require cooperation, trust and dedication but failure on the part of one of the active partners to discharge his / her own responsibilities that could have led to personality clashes and to the end of the partnership. Partnerships are known to have ended because the members could not agree on the best course of action to take on an important issue.

2. Difficulty in Withdrawals: – The contribution of each partner ceases to be the property of the individual making the contribution. When a partner needs money, he / she can not withdraw his / her contribution or borrow money from the partnership without the express permission of the other partners. Many entrepreneurs dislike this lack of flexibility characteristic of partnerships.

3. Unlimited Liability: – Each partner is held liable for the obligations of the partnership. If one of the partners makes a costly mistake in the execution of the affairs of the partnership, creditors can sue, and if they obtain judgment against the partnership, each partner may have to sell his / her personal assets to meet the obligations.

4. Short Length of Life: – Factors like, death, prolonged ill-health, withdrawal, bankruptcy, insanity or of sorts could lead to the end of the partnership.

Conclusively, governmentally recognized partnerships may enjoy special benefits in tax policies. Among developed countries, for example, business partnerships are often favored over corporations in taxation policy, since dividend taxes only occur on profits before they are distributed to the partners. However, depending on the partnership structure and the jurisprudence in which it operates, owners of a partnership may be exposed to greater personal liability than they would as shareholders of a corporation.

Purpose of Online Advertising

Nowadays online advertising is a popular trend among all business owners. Online advertising has emerged as one of the most powerful tool of advertising. This is because the wide reach of Internet and online advertising websites.

The dependence of people over Internet has increased drastically. They now knock the doors of search engines or various online service providers in any specific domain of their interest. Therefore, having a strong online presence helps business owners or online traders in getting more and more number of customers for their particular products and services.

Having strong presence does not mean just owning a domain name and a website. You need to be easily noticeable and your potential customers should identify and get you easily. For that, you need to promote your online presence. It does not matter whether you are providing services of products online or not. Even if you are operating an offline business, you need to have your strong identity over internet, so that the potential customers of your products and services segment can find you easily.

Online advertising helps businesses in targeting global customers. You can operate your business from anywhere in the world and serve your customers across the globe if you have your strong presence online. Therefore, online advertising serves your aspirations of getting global exposure within very short span of time.

Online promotion of your online identity, your products or services being offered by you is very cost effective. You do not have to spend lots of money for promoting yourself on internet. Your expenditure in online promotion is just a fraction of what you had to spend on traditional modes of advertising in popular print and electronic media. Therefore, cost effectiveness is the most important purpose behind stress on online advertising. Through online advertising people can expect maximum returns of their investments.

There are different forms of Internet Advertising. Banner advertising and pop-up ads are now matter of past. They are still present and equally popular as they were before, but now the stress is on search engines based advertising. People now understand that if they are getting top search engine rankings in almost all popular search engines, then no one can stop them from getting success in their business.

Internet Promotion – Advantages and Disadvantages

The emergence of globalise trade, increase in foreign investment and cross-border transactions have put many small businesses under pressure to find innovative ways to continue to market their products and services. This is especially difficult given that they often operate on tight marketing budgets.

In the quest for cheap marketing alternatives, these small businesses continue to use conventional marketing tools such as newspaper, magazine, radio and television advertisements, unaware of the advantages that Internet Promotion offers. All too often, these entrepreneurs focus on the disadvantages of Internet Promotion and fail to adequately take advantage of the opportunities that it presents. Moreover, their preoccupation with conventional marketing strategies is driven by a misconception that these are cheaper than Internet Promotion.

To most small business entrepreneurs, marketing or promoting their products or services via the Internet can be a daunting task. However, with adequate information small businesses can benefit significantly from Internet Promotion while minimising the disadvantages that it presents. In fact, it may prove to be the marketing strategy that generates the highest return on investment.

The Advantages

Cost Effective and Enduring Marketing Strategies

The Internet has become the information superhighway for the buying public. Most persons prefer the hassle free transactions that Internet shopping can offer. As a result, the Internet has become the most powerful selling tool. Internet Promotion offers cost effective ways for small businesses to enhance their product or service distribution networks. For example, the use of portals can help create new marketing channels and logistics, or provide better or faster product access for customers.

In comparison to other forms of marketing, Internet Promotion presents the advantage of reduced budget and storage costs, when compared with printing brochures, producing television or radio advertisements or managing a call centre. It presents a fast and cost effective option for penetrating new markets.

Market Penetration

With millions of person using the Internet to search for products and services, small businesses can penetrate other markets at a fraction of the cost of traditional marketing methods.

Websites act as virtual storefronts, allowing businesses to stay open 24/7. Internet Promotion gives a business greater visibility, thereby creating more opportunities for increasing its customers at relatively low cost. Never before has it been easier for an upstart business to be able to reach out to literally millions of potential customers and to position themselves for success, without the need for costly infrastructure and overwhelming marketing costs. Thanks to the Internet, new businesses can become popular almost overnight.

Low Cost, Instant Communication

Email makes business communications instant, whether the customer or business affiliate is across the street or across the globe. It makes it easier for customers to maintain contact and readily facilitates repeat purchasing. An effective online strategy can therefore turn a small web business into a virtual cost saver and income-generating machine. The net result is that the small business can gain significant competitive advantage in a given market.

Many online businesses have therefore resorted to the use of ezines, blogs, pop-up ads and other online marketing tools to let customers know about new products or services as well as provide information relevant to their respective industry. The benefits of this strategy are two fold. Marketers can effectively heighten brand awareness for relatively new products on the market whilst strengthening customer relationships, with shorter time frames.

Content is Timeless

Internet Promotion also provides the advantage of being enduring. Whereas participation at a trade fair or conference loses sales impact, once it is over, and an advertisement in a newspaper or business magazine may quickly lose its sales generating value within a day or two or as soon as the next issue is released; Internet Promotion is often timeless. Apart from the dates and sometimes prices, much of your website content remains valid years after.

Real Time Statistics For Measuring Success of Promotion Campaign

One of the most significant advantages of Internet Promotion is that its success is measurable. Marketers can use tools that provide real time statistics, on unique visitors, repeat visitors, click through rates (CTR) on advertisements, thereby allowing them to evaluate the effectiveness of a promotion campaign. This enables marketers to determine what works for their particular market and to make timely changes in their marketing strategies.

Time Saving

Another important advantage of Internet Promotion is that it saves time since it generally does away with counselling on product uses and benefits, service information and sales administration. Visitors can access “frequently asked questions” to help themselves, and can buy online, without the involvement of staff. This saves time and money. So, whether 10 or 10,000 visitors visit the site, the increased cost is marginal whilst the savings can be immense.

But like any business approach, Internet Promotion is not without its risks and weaknesses.


Difficulty in Attracting Customers

Small business may not have the resources to pay for paid directory inclusion, pay per click inclusions and often have to rely solely on search engine optimisation or word of mouth to drive traffic to their sites. With millions of businesses selling the same product and services, competing with more established businesses can be frustrating and costly venture for small business.

On the other hand, larger companies can offer promotions, pay for directory inclusions, implement pay per click campaigns as well as employ the “who is who” in internet marketing to develop campaigns that generate traffic and leads.

Difficulty in Evaluating Legitimacy of Transaction

Another notable disadvantage of doing promoting businesses online is that it may be difficult for the businesspersons and consumers to thoroughly evaluate the legitimacy of a transaction. Small businesses are particularly vulnerable to thieves using stolen credit cards and stolen information to do online transaction.

With Internet credit card and identity fraud on the rise, small businesses are forced to finance costly security measures to reduce their vulnerability to fraudulent transactions.

Salespersons and Customers are Isolated

Another disadvantage of promotion via the Internet is that the customers and businesspersons are isolated. There is little personal contact between customer and salesperson prior to and after the sales is closed. Thus, the prospect for repeat sales may thus be diminished. Entrepreneurs are therefore compelled to adopt marketing strategies to drive online users back to their site.

From all indications, it appears that the advantages of Internet promotion, far exceed the disadvantages. With adequate knowledge, entrepreneur can benefit significantly from Internet promotion, especially small business owners.

More and more, the growth and outreach of the Internet’s, its ease and accessibility for customers is becoming inevitable. Small business would therefore be well advised to start their web advertising function in order to improve their competitiveness online.

Evaluating Credit Card Offers: Essential Terms You Must Understand

Credit card offers, they're everywhere! They appear in your mailbox. They pop up while you're surfing the Internet. They're in slick brochures next to the cash register or gas pump. They're in full-page ads in the Sunday papers.

If you need a new credit card, how do you choose? You should evaluate each offer carefully, and to do that you must understand these essential terms.

Annual Percentage Rate (APR) :

The interest rate charged on your account balance. (But see "Balance Calculation Methods," because the rules for computing interest from your balance and your APR can vary.) Your statement will typically show the APR and a monthly and / or daily rate based on the APR that's actually used to calculate your Monthly interest. There may be several APRs applicable to different portions of your balance, for example an introductory rate, a regular purchase rate, and a regular cash advance rate.

A fixed APR is set by the credit card company, which can generally change it with as little as 15 days advance notice, especially if you run afoul of any of the "gotchas" in the terms. These "gotchas" are often very consumer-unfriendly. For example, many companies these days reserve the right to raise your rate if you've been late on a payment to another, unrelated company.

A variable APR is tied to some widely used economic index, such as the Prime Rate. It may be stated as "prime + x%, currently y%," for example "prime + 7%, currently 13.5%." This means that when the Prime Rate is 6.5%, your APR is 13.5%. When the Prime Rate goes up or down, so does your APR. But beware, because some of the same "gotchas" apply to variable APRs as to fixed APRs. Read the fine print. It may state that if you're late with one payment, your APR will no longer be variable but will rise to an exorbitant fixed rate, usually over 20%.

The penalty APR is the rate to which your APR will immediately be raised when you violate any of the "gotchas" in the terms. This rate is usually at least 50% higher than the regular APR. Again, be sure to read the fine print to see what situations will trigger the penalty APR. You'll often see these: failure to pay this or any other account on time, exceeding your credit limit on this or any other account, excessive credit balances on your accounts in aggregate.

Balance Calculation Methods:

These are important to understand, because your APR is only part of the story when it comes to calculating the interest you'll be charged each month. The other part is how the balance is calculated to which the APR is applied. In any case the balance is multiplied by the daily or monthly interest rate. But the balance calculation is not as straightforward as you might think.

1. Two-Cycle Balance. This is the worst method from a consumer's point of view because it can lead to the highest interest calculations. Unfortunately, it's also becoming the most widely used method. To calculate the balance, add together the average daily balances for the current billing period (sometimes even including new charges) and the previous period. Here's why this is so unfriendly to you. Say you have run a balance for a few months and finally pay it from $ 200 down to zero at the end of May. You think it's safe to use the card in June for a new $ 100 purchase, and if you pay the $ 100 by the end of the June grace period, you will not owe any interest on it. But you're wrong. Since your average daily balance in May was not zero (say it was $ 120), and since you used the card in June, your interest will be calculated on May's average balance again, so even if you pay the whole June purchase in June, you Will still owe additional interest. In other words, you must wait two months, allow the account to cycle once with a zero balance, before it's safe to use it again – "safe" in the sense that you will not incur extra interest if you pay the balance in full By the end of the grace period.

2. Average Daily Balance. This was once the most common calculation method and is still popular. Add the daily balance for each day in the billing cycle, then divide by the number of days in the cycle. Depending on the terms, this may or may not include new charges.

3. Adjusted Balance. This is the best method from a consumer's point of view, but it's rapidly going the way of the dodo. Take the balance at the beginning of the billing cycle, then subtract any payments or other credits recorded during the cycle. Do not include new charges during the cycle. For example, if your beginning balance was $ 1200, and you paid $ 400 during the cycle, the balance to which your monthly rate will be applied is $ 800, regardless of any new charges.

Balance Transfer:

This means that you're charging card X to pay off (all or part of) the balance on card Y. So the balance is, in effect, transferred from card Y to card X. Why would you want to do this? Usually to take advantage of an introductory low interest rate when applying for a new card. Look closely at the terms. Sometimes these introductory rates last only a few months. The best ones are for the life of the balance. You will often have to pay a transaction fee equal to 3% of the balance transferred. Sometimes these fees are capped at $ 75 or so. Be sure to see whether or not the transaction fee excepts what you'll save in interest. If so, do not do it. Sometimes the credit card company will agree to waive the fee, especially on a new account. Do not be afraid to ask.

Cash Advance:

A cash loan charged immediately to your credit card account. Usually there is no grace period for paying off a cash advance, which means you'll be charged interest starting from the day of the loan, even if you pay it in full by the end of the billing cycle. Also this type of charge may have a higher APR than purchases or balance transfers. Check your terms. Note that some kinds of transactions, like buying casino chips or lottery tickets, may be valued as cash advances. This can also apply to writing a purchase check to your own bank account. Be sure to read the fine print.

Credit Limit:

The upper limit on your account balance. Exceeding it may result in penalties. Be very careful if your balance is close to the limit ("maxed out"), because you can exceed it without charging anything new if you fail to pay enough. Remember that just because the company has approved you for a certain limit does not mean you can afford to take on that much debt.

Disclosure Chart:

An important portion of the Terms and Conditions statement. It's a little bit like the Nutrition Statement on a food package because the law dictates what has to be listed here. If you can not stand to read all the fine print, be sure that you read this part.

  1. Fixed APR or APRs after any introductory rate (s) have expired
  2. Rule (s) for calculating variable APR (s) if applicable
  3. Grace period
  4. Annual fee if applicable
  5. Minimum per-cycle finance charge
  6. Additional fees if applicable, such as cash advance fees
  7. Balance calculation method
  8. Late payment and delinquency fees
  9. Over limit fees

Grace Period:

The time, calculated from the account cycle date, during which you can pay the balance in full without having any interest charged. This usually applies only to purchases, and only if you've paid the previous month's balance in full and on time. (Sometimes even that's not enough. See "Two-Cycle Balance" calculation method for an additional "gotcha.")


This can be very misleading. It does not mean the company is guaranteeing to issue you the card in the offer. It just means that they chose you to receive this offer based on some general screening of your credit report. They always reserve the right to deny or alter the offer based on a more detailed examination of your records.