Law Essay Example | Topics and Well Written Essays - 750 words - 5

Law - Essay Example In the first case, business partnerships are relatively cheaper and easier to establish. This is because, the Partnership Act 1890 (c. 39) allows two or more people to come together to form a business partnership in their own volition. In this case, all that is needed is the will of these consenting parties. The validity of the will is predicated upon: soundness of mind; the attainment of legal age; knowledge of the nature of the business partnership and the business establishment that the parties are to engage in; and conformance to the law (for instance, a business partnership cannot be formed to sell cocaine since UK law proscribes the trafficking and non-medical possession of psychoactive drugs such as cocaine). Just as Siems (2009, pp- 767-802) points out, partnerships definitely involve multiple ownership and this means that the owners can easily raise more capital. This is because the two or more business partners are able to contribute more funds. Again, it is also true that multiple owners have a higher borrowing capacity. This means that business partnerships have a higher ability to gather credit to serve as start-up or operational capital compared to other forms of business ownerships such as sole-proprietorships. Again, it is easier for business partnerships to benefit from an array of complimentary skills that the multiple proprietors are bringing. The crux of the matter herein is that the two or more owners bring with themselves, a wider pool of knowledge, contacts and skills. These are values that easily propel the organisation into greater stability, faster and more consistent growth and success. It is also worth noting that partnerships can be more cost-effective compared to other forms of business ownerships. This is because, with partnerships, every partner assumes a specific specialty in certain aspects of business operations and management. It is also true