Pros and cons of the partnership as a form of ownership
A partnership is a form of business that is formed when two or more people slots in a business activity and share profit, loss and investment. Similar to any other from of business ownership, partnership has its advantages and disadvantages as discussed below.
On of the main advantages of the partnership is the fact that it is easy to form since one requires is just an agreement. The partnership allows the divisibility of responsibilities where the owners share the business duties (Lipczynski, 2008). The partners also provide moral support to each other in order to counter challenges and stresses in the business.
On the other hand among the disadvantages of the partnership is that, all the partners are liable for all lawsuits and depts. experienced by the business. Partnership is also risky in sense that business related acts committed by one partner could lawfully bind all the other partners. Generally, the partnership faces a constraint of raising money because the partners are unable to raise a huge amount of cash.
Funding options for small businesses
Raising money for the small business is considered relatively easier than the other categories of the business. The fiscal solution and the small business solution depend on the five main options. This option includes venture capital, angel investing, debt financing, grants, and finance from friends and families (Spinelli & Zacharakis, 2005).
The venture capital is a finance option that involves ownership share or the capital that is pumped in the business in exchange of equity. Angel investing involves the provision of capital by a single person in exchange for changeable debts or equity. Debt financing involves acquiring loans from the banks and other financial institutions at a considerable interest rate. Small businesses also receive grants from well-wishers and other organizations. This source of money is usually considered as “free money” option. The other option of the small businesses is funds from family or friends. These are the people that the small business owners trust hence, they consider them a an alternative for the source of funds. All the five options of finance depend on the amount of the money that the firm wants to raise.
How managerial accounting can help managers with product costing, incremental analysis, and budgeting
The managerial accounting is thorough data that is used in the internal operation of the business. It is an contrary to the financial accounting that provides data that is used by the external members of the firm. It includes cost of turnover, cost of shipping, cost of the product and cost of employee benefits. The managers can use cost of benefits and turnover to draft a budget and offer a better working condition with less cost. Managers can use the data to determine the trustworthy of the employee on the firm’s assets, thus he can be able to come up with appropriate security structure.
Managers also use managerial accounting data to summarize the main benefits, consequences, and disadvantages of their options before they come to the final decision. This is how the managerial accounting assists the managers in the incremental analysis. On the other hand, the managers can determine the appropriate price of their products by determining whether the demand is met by the supply. This depends on the sales of the firm’s product.
The basic components of the marketing process using a product example
In the marketing process, there are five basic components that a firm should consider in order to be competitive in the market. These components involve, target market, differentiation, market goal, marketing strategy and marketing budget.
The target market for coca cola product is the large audience of soft drink consumers that prefers carbonated beverages. The product differentiation of the coca cola company segregate the soft drinks from other brands, and create unique product that make the consumers to think they are consuming the best product in the market. The market goals for the company are to remain competitive in the beverage market and ensure that its main brand, coca cola is well marketed. Coca cola aims to achieve 3 to 4 percent in the market growth.
On the marketing budget of Coca Cola Company, the company increased its global expenditures in 2005 by $350 to $400 million. It was aimed to cover the growing markets such as India, China, Russia, and Brazil. The market strategy for coca cola is guided by there main principles, that is acceptability, affordability and availability. The coca cola products are offered in the market at affordable prices and are available in all markets all over the world. The coca cola products remain the preferred brand in the market.
The roles of social responsibility and technology in the marketing function
Both social responsibility and advanced technology as an essential influence in the marketing function of any company. When companies are providing goods and services to the consumers, they have to stick to a measure of social responsibility. The marketers must consider their responsiveness and actions with regard to social issues (Kotler, 2000). This is because consumers tend to buy products from the companies that portray a genuine concern.
On the other hand, the advancement of technology had influence how the products are marketed to various consumers. This involves marketing in radio, television and in the internet. Nowadays, with the emergency of social media, marketing is made easier and more effective. Therefore, the technological innovation has resulted to increasing sales in the market.
References
Lipczynski, J. (2008). Business. Chicago: Chicago Review Press.
Malhotra, Y., & Malhotra, Y. (2001). Knowledge management and business model innovation. Hershey [PA: Idea Group Pub.
Timmons, J. A., Spinelli, S., & Zacharakis, A. (2005). How to raise capital: Techniques and strategies for financing and valuing your small business. New York: McGraw-Hill.
Kotler, P. (2000). Marketing management. Upper Saddle River, N.J: Prentice Hall
