Essay Discuss the Advantages and Disadvantages of Partnerships
1946 WordsSep 5th, 20128 Pages
Accounting for partnerships
Accounting for partnerships – Discuss the advantages and disadvantages of partnerships. Identify and discuss the Financial Accounting Standards (FAS) that govern accounting for partnerships including both creation, operation, and liquidation. What are the tax consequences of partnerships.
The legal definition of a partnership is pretty simple. It is an association of two or more persons who have not incorporated; and carry on a business for profit as co-owners. A partnership exists if these conditions are met, even though the people involved may not know it or even intend that the business be a partnership--and even if they don't actually make a profit. Partnerships can be flexible; the partners…show more content…
Then the partners include the income and deductions in their individual tax returns. Not as widely as they once were. As a way of organizing a business, they appear to be giving way to the limited liability form of business organization. This form of organization has many of the advantages of partnerships and few of the disadvantages.
There are two main types of partnerships recognized in the United States: general partnerships and limited partnerships. In a general partnership, each partner has unlimited liability for the debts and obligations of the partnership. Moreover, any partner can bind the partnership contractually to third parties. For these reasons, it is important to define in a written agreement what decisions partners can make individually and which ones require a vote of the partners. In addition, most states require that the partnership file a certificate in the county in which it will do business. Unlimited liability means that if you're a general partner, not only can you lose whatever money or other property you have put into the partnership, but also your house, boat, and stock portfolio might go to pay the claims of the partnership's creditors. In terms of management responsibility, general partners carry the load--they actively run the business on a day-to-day basis. In a limited partnership, there must be at least one limited partner and one general partner. The advantage of being a limited partner is
The problem with partnership working is that there are too many partners.
Partnership working can be defined as a group of individuals, agencies or organisations with a shared interest, working together to achieve a specific objective. Partnerships are usually formed to address specific issues and may be short or long term. (Dewhurst, 2009) Although there is an acknowledgement that there is an absence in the definitions of partnership working, Powell, Glendinning & Rummery (2002) has offered the following minimal definition. “The involvement of at least two agents or agencies at least with some common interests or inter-dependencies; and would also probably require a relationship between them that involves a degree of…show more content…
The downside to this case was that because of Emson’s professional background and the NHS stigma of a doctor being ill, the correct procedure was not followed and so no one had any chance of working together to support her as information was passed on. After the inquiry into Daksha’s death, several recommendations were issued in order to prevent a repeat of this tragic incident happening again. Some of the key recommendations were; a code of practice against mental health stigma, binding on all NHS employees, guidance on treatment of mothers-to-be and new mothers with mental illness, and guidance on child protection for children of mental health patients. In this case, a clear lack of communication between professionals has been identified, and as communication is a vital aspect of partnership working, a clear picture is depicted that in this case, that skill was not used. Some writers have reflected that not acknowledging barriers to partnership working is in itself, a cause for failure (Rummery & Glendinning, 2000) and that it is important to recognise the hurdles in advance.
According to Mark Lymbery, the concepts of “partnership” and “collaboration” have become amongst the most critical theme of “new” Labour’s social policy, particular in respect of the delivery of health and social care. Although the terms are rarely