The government can also assist small businesses with taxation, retirement, health & safety requirements and employment protection. See the fact sheet on sources of Government finance and assistance for small businesses for more details of the above together with details of where businesses can obtain information and advice. If a company does not have a partnership agreement the Partnership Act 1890 is applied when it settles any disputes. All partners in the business except for sleeping partners have unlimited liability.
Therefore there are more risks involved than with a sole trader, as an individual also has unlimited liability for the mistakes of his partners. A partnership can operate in any sector of the economy. For example, primary as a group of archaeologists, secondary as a firm of motorcycle manufacturers and tertiary as a partnership of solicitors. Similar to a sole trader, a partnership is likely to be a small business therefore it will have relatively little influence in the market place.
However, their behaviour will be more similar to that of a larger company as they will usually be competing with other local companies in a similar way to how large companies compete nationally. A partnership will often be able to expand and broaden their chosen field by bringing in new partners with different skills. This gives the business an opportunity to grow, as each additional partner will bring with them more capital. The organisation and control of a partnership business is the responsibility of all the partners.
Often there will be a senior partner who may have formed the business himself as a sole trader, or have greater capital invested in the business. The partners will make all decisions together although the senior partner may have the deciding vote. As a partnership is a larger business than a sole trader it will have more funds available to employ staff to deal with the business administration and accounts. They may, however, still use external providers for these services such as accountants and financial advisers at the bank.
The aims and objectives of a partnership will differ greatly from business to business depending on the market they are in. Primarily, each partner will want to make a profit therefore quantitative objectives will be based on production, stock sales, and market share factors. A business such as a firm of accountants or solicitors will have slightly more qualitative aims and objectives such as building a reliable reputation and providing an efficient and professional service so that they can achieve a strong client base.