Question

Describe a type of business that you would like to own and discuss whether or not you would open your business as a sole proprietorship or a partnership.

Answer 1

I would like to start a bridal store. I am much interested to start a shop of bridal wear because people are willing to spend a huge amount of money for their wedding dress to make it small beautiful and memorable. There are plenty of opportunities in bridal wear business like customised dresses, hand worked clothes, embroidered clothes etc..
If I am starting a bridal wear boutique I want to start it as a partnership business.
Partnership business
A partnership business is a kind of legal relationship work by two or more individuals agrees to share management and profit or loss.
Basically it provide the advantages of large amount of capital. It requires a huge amount of capital to start business especially textile business. As the number of partners increases the borrowing capacity of the business will also increases. While in call proprietorship the capacity to risk capital is limited.
Partnership business allows you to share the risk among partners. As the nature of business is uncertain risk can happen at any time. If there is only one person in a business then the burden of risk will also very high. Partnership allows to share the risk among partners equally. It is not an easy thing to start a business alone, managing a business alone can feel stress.
The another reason for doing a partnership business is I don't have any previous business experience. Partnership business is a better option if you don't have any business experience in past.
A partnership business allows access to better knowledge and experiences for the efficient running of business.
In a partnership business we can divide the work in business according to their skill and experience . One can do purchasing related activity while other one can focus on sales and so on. If we are doing a sole proprietorship we have to do all these alone.
Another reason of selecting a partnership business is that it helps to take a better decision then taking a decision alone. Combined decision allows greater achievement in business. Where as install proprietorship all the responsibility to take the decision is centred at only one person.