Business is one of the most revenue earning activity to both the nation and individuals. Arguably, there are various major forms of business ownership in the world today. In most case, choice of business ownership depends on group or individual objectives, capital, number of members, as well as the outcomes of the business ownership. This business ownership includes partnership, sole proprietorship, corporations, as well as limited liability companies. Each of this business ownership has various advantages and disadvantages.
Certainly, compared to other business ownership, partnership can be bad or good. One of the pros of partnership is that it is easy to form. This is so because the legal documents needed to begin a partnership are straight forward, the cost of starting is kept at minimal, as well as sharing of startup capital. Additionally, partners enjoy direct rewards from the business. In fact, the motivation of the partners comes from the direct share of profits (Longenecker, 2008).
Generally there is a possibility of improved growth; this implies that it is easy to attract capital to finance a business which operates under the partnership as compared to sole proprietorship. It is much easier to make and execute decisions than it could be in various corporations (Pride, Hughes, & Kapoor, 2011). Moreover, partnership is flexible and has freedom from bureaucracy. The sharing of expenses, risks, as well as, responsibilities are an advantage to the partners.
On the other hand, there are various disadvantages of being part of the partnership business. Partnership has unlimited liability; it implies that the liability of the business depend on the partners. Another disadvantage is that is unstable, when a partner decides to quit the business will be affected tremendously (Longenecker, 2008). Furthermore, the firm is tied to judgment and acts of a partner; hence, it is difficult to make decisions, manage, and raise long term capital.
Small business are in most cases limited to sources of funds, despite the problem they still have various options to solicit funds to start a business. Debt financing is one of the options of funding small businesses. This is a type of financing option that is provided by financing institutions through the provision of loans. It is difficult because most banks nowadays loan already established businesses. Another option of getting money to fund small businesses is through equity. This is done through attracting investors, as well as selling of shares (Pride, Hughes, & Kapoor, 2011). Grants and donations from family members and friends is an option for funding small business. When it is difficult to receive funds through debts, then it is advisable to turn to friends and family for help. In most developed countries, high net-worth investors fund small businesses. Probably, venture capital is also part of funding options for small business.
Managerial accounting helps managers in various ways. Based on incremental analysis, the managerial accounting provides manages with information that is needed to make decisions. This is by use of differential and marginal analysis. Managerial accounting identifies various relevant costs and revenues of the expected and alternative future incomes. The managers benefit by accepting new additional business, eliminating segments, as well as selling and buying of the product (Jiambalvo, 2009). Additionally, managerial accounting provides information that is helpful in evaluating and monitoring of the business. In fact, managers establish business budgets depending of evaluated information on managerial accounting. Generally, managerial accounting information that is helpful to the managers includes cash flow analysis, fund flow analysis, ratio analysis, as well as budgetary control (Jiambalvo, J2009).
There are four basic components of the marketing process. These include product, promotion, price, as well as distribution. In marketing every product, the marketing mix should be adhered to ensure that the product or service becomes competitive in the market. For example, Nokia is one of the leaders in the cellular phone providers. In terms of product, they have various types of Nokia series, which is of high quality and unique design. The designs include flat sets, flip sets and slide sets (Ferrell, & Hartline, 2010). The price too makes a product has a competitive advantage. The price of Nokia series suits various classes of people in the world. Nokia Company uses skimming price as a strategy. Nokia promotes its products through advertisements, sales promotion, personal selling, as well as public relations. The advertisements are made through TV, social networks, newspapers, radio, as well as bill boards. The distribution or place form part of the marketing process. It entails providing the service or product to the customer at the right place. For example, Nokia galleries are distributed in many countries in the world.
Social responsibility is crucial in marketing; this is because it provides a greater opportunity to an organization to be discernible in the community. It is done through been involved in various activities of the community. Social responsibility helps in marketing because organizations show much concern for the environment and the people in which are potential customers of their products (Ferrell, & Hartline, 2010). Companies and organization become socially responsibly through charity events, provision of necessities, as well as being sponsors in various sports events. Through social responsibility, the organizations win customers loyalty, as well as increased revenue. Additionally, technology is the enablers and a catalyst to the marketing mix. Technology enhances promotions, distribution, price, and place. In 21st century, a social network which is a product of technology has become the best avenue for marketing services and products.
References
Ferrell, O., & Hartline, M. (2010). Marketing Strategy. Chicago: Chicago Press.
Jiambalvo, J. (2009). Managerial Accounting: New Jersey: Wadsworth.
Longenecker, J. (2008). Small Business Management: Launching and Managing New Ventures.
New York: Springer.
Pride, W., Hughes, R., & Kapoor, J. (2011). Business. London: Wiley.
