Assignment 'Introduction to Business"

Topics: Management, Corporation, Business Pages: 6 (1334 words) Published: October 4, 2012
Assignment Content|
Chapter 1| First Question|
Chapter 2| Second Question|
Chapter 2.1| Characteristics of “Partnership”|
Chapter 3| Third Question|
Chapter 3.1| Characteristics of “Business Environment”| Chapter 3.2| Characteristics of “Porter’s Five Forces”|

BM004-4-0 ITB

1. What would be the aims and objectives of the business Luke is planning to implement after graduation? The main aim of the Luke’s business idea is to provide lessons to people especially older people, on how to use the internet and e-mail. He would like to eliminate the “fear” of going back into the workforce among older people and has decided that he will provide hands on experience of the internet. He will show people how to do online searches for information, how to buy products online, and how to use other services available online such as making hotel reservations or holiday bookings. He will also teach people how to create a website and do correspondence online. Luke is going to implement this project by getting a partner because of lack of business knowledge and probably due to lack of sufficient funds. (125 words)

2. Discuss in detail the form of business ownership that you would recommend for Luke’s new business. Justify your answer. Luke Chan’s business idea about providing IT lessons for people who are not enough updated with the widespread use of e-mails and other online applications is especially necessary in contemporary “Age of Technologies”. On the other hand, that project supposed to be planned smart and adequately with many aspects to consider for the business to run efficiently. Luke is qualified in Information Technologies and although he knows that his “entrepreneurial spirit” is much alive he needs to get a partner who is confident in Business Management and affairs like that. Also, Luke fears that he might not have sufficient funds to start up. His housemate Eric who will be graduating from his Business Degree the same time has indicated to Luke before that his goal after graduation was to set up an enterprise that’s why Eric could be really helpful in supporting and proper managing of that project. As Luke going to start and manage their “IT Project” in common with Eric, at first, they definitely should set up type of business ownership as a “Partnership” because it is the most appropriate type of organization for the enterprise which managed by two or more people. The type of organization called “Partnership” is a private and unincorporated type of business organization in which multiple individuals, called general partners, manage the business and are equally liable for its debts; other individuals called limited partners may invest but not be directly involved in management and are liable only to the extent of their investments. Unlike a Limited Liability Company or a corporation, in a partnership each partner shares equal responsibility for the company's profits and losses, and its debts and liabilities. More generally a relationship of two or more entities conducting business for mutual benefit. Now I am going to justify the characteristics, articles, advantages and disadvantages of that type of organization to show in details what is a “Partnership”. Characteristics of “Partnership” are:

* Unlimited liability;
* Limited partners cannot take part in running of business; * New partners can replace withdrawn or retired partner;
* Partnership dissolved by death, mutual agreement or court orders; * Common among small enterprises e.g. family businesses & professional services (lawyers, doctors, engineers). Articles of “Partnership” are:

* Strictly private agreement between the partners and not open to public; * The initial capital to invest;
* Ratio of profit/loses shared;
* Division of managerial responsibilities;
* Salaries to be paid among partners;
* Duration of partnership;
* Terms for its...

References: Environmental Forces That Affect Business (By Chris Dinesen Rogers, eHow Contributor)
Porter 's Five Forces Analysis (By Nohea Reveley-Mahan) 's+Five+Forces+Analysis
ITB Lect Notes Chap 2 Business Environment (Presentation)
ITB Lect Notes Chap 3 Formation & Classification of Org (Presentation)
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