This paper consists of four questions which are answered based on the book Small Business Management: Entrepreneurship and Beyond which is authored by Hatten Timothy and published in 2008. Small businesses have a major impact to the large businesses and they support them. It is the small businesses which are the majority consumers of the goods and service which are produced by the large businesses. For example Microsoft is a large company whose most of its products are used by small companies. They are the ones which buy in large quantities and upgrade them often to be competitive…
For example Zara clothing in clothing industry was started in 1975 in Spain it has grown to be an international business. It has distinguished its self in the clothing industry by leading in fashion design for ladies, men and children they have as well diversified to shoes productions and their pricing is much competitive. They are advantaged because they lead in the clothing industry which is full of style and taste and it is as well innovative. They lead in designs and by the time the competitor’s catch-up with the design in the market it gets more designs in supply….
In conclusion an example of general partnership business is where two licensed dentists would partner in a business and both be involved in the dentistry work and share liabilities and profits. While, if only one of the partner would only invest in setting up the clinic and incur costs of running the business but is not involved in the daily running of the clinic then the business would be a limited partnership. The dentist who would be running the business in daily bases would earn a salary. But the profits and loss made by the business is shared by both of them depending on their investment ratio.
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