Effect of Partnership on Business: A Case Study

Abstract

A partnership offers a lot of advantages which include long term stability and more capitals. However, such an arrangement comes with some disadvantages which include loss of autonomy, liabilities, as well as sharing of profit and emotional issues. Among the many factors that need consideration in a partnership, the one factor of prime importance is the evaluation of the prospective partner so as to ensure he/she is a good match. The purpose of this study is to investigate and analyze the effects of factors as, among others, the loss of autonomy and liabilities on the functioning of partnership based businesses. In this study, taking into account data collected from 50 enterprises in India, statistical methodologies of ANOVA and multiple comparison tests were used for factor comparisons at the significance level of 5%. Results have shown that in most of the partnership businesses the partners were satisfied with each other, except for emotional issues. It would be then important to deeply explore such issues in order to minimize eventual damages caused by such disadvantage.