if a business is successful and start to go the owner soon find that I need help with finding money for expansion or in control the activities of the Enterprise.
for example a motor mechanic found out the truth of these when it started on his own already had something of a local reputation.
as I do not have to pay itself over time wait again customer because he was willing to work in the evening when they are cars were not ready for work.
you also save them money by spending time on repairs when larger garage would have replaced expensive part.
a growing business Iowa create problems the motor mechanic realise that he would be able to work more quickly and carry out more difficult and profitable repairs to if he could buy modern equipment.
he calculated that to fit out the garage as in I wished you would need €3000. He he also realised that there was more to business than being a skillful mechanic. he had already spent several days working on a car for a customer who has failed to pay his bill he had just received a notice that his premises will be reassessed for rate and he was not sure what this would involve.
I knew I needed help and when is brother-in-law who had some savings of his own of her to join him in his business and to take over the books and account as well as help with repairs the motor mechanic agreed.
the two men had known each other long enough to be able to trust each other and to expect the others ability.
as soon as two or more people combined together in this way to 1A business with a view to making profit then there is in effect and in laws a partnership.
a formal written agreement is not necessary to start a partnership although it is clearly desirable and sometimes essential if this put are to be avoided and special arrangements made over such matters are sharing earnings controlling sections of the business and retiring.
the more people they are involved in a business there more room is there for me to understand this and this sport and the more likely is it that innocent members of the public find themselves suffering as a result of the way it conducts its affairs.
if for example the motor mechanic and his brother-in-law called and the business collapsed the worst suffer will be those whose debt where left unpaid.
it is recognised there for that partnership should operate against a clear legal framework and there are a number of startups which govern the relationship of partners with each other and with the public.
the principal art is still the partnership act 1890.
the number of partners is limited with 20 but the companies act 1967 lifted this limitation for certain types of partnership notably accountant and solicitors where modern conditions required large firms but when complaint type structures are not allowed by the rules of the professional associations.
partnership and stronger and more stable organisations than soap opera to ship but the structural steel act limitation which makes it unsuitable for modern large-scale industrial and commercial enterprises.
in our next post I will be looking forward I will you be looking at the limitations associated partnership.