Short Essay: Business Organizations-Summary

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Business Organizations-Summary
It is recommendable that Jack Smith and Carl Jones form a joint venture partnership to open the lawn mower sale and service center because they will be co-owners of the business. There are several advantages of partnership, like mutual agreement, because both partners act as agents for each other. Besides, there is unlimited liability for the general partners concerning their obligations. Additionally, at the end of each financial year, the profits or losses, where necessary, will be shared equitably unless there are clauses stated in the agreement signed between the two. The tax considerations are associated with filing for income tax, meaning that no substantial taxes get paid by the partners. Also, dissolving the partnership does not follow a tedious process because it could be either through an agreement, unilateral act, death or bankruptcy, or death of a partner...