PROBLEM OF PARTNERSHIP BUSINESS
1.poor sources of fund: the major source of fund for the partnership business is from their little savings and gift from friend which is not enough to start a capital outlay of a standard business and hence the business fails within a short period of time.
2. Poor feasibility study: not business that can survive without overcastting and knowing the future of that business that is how it can survived and whether it is gainful
3. Lack of lay down rules: most partnership business do not have a laydown rule as a guide to the business and ownership and most of the time, the terms of agreement which will lead to quarrying and winding up.
4. Inability to differentiate between business and personal affair. This happen personally where the partners take up the business property as their personal property
5. Negligence on the part of some partners: most of their workers because of the numerous engagements easily show a non challant attitude toward define responsibilities.
6. Wrong decision taken: this has made many investors to wind up thanking government decision are trials to every other decision.
7. Lack of competitive awareness: many partners in Nigerian don’t take the reactions of the competitors into consideration, like issue of pries tags special discount etc.
8. Personal strength and weakness in business: many of the business do assess their strength and weakness in business, hence they experience failure.
Summarily, many business do not have adequate training, as a result, the business folds up as a man’s business. Lac of the tehnologioal kow how also causes their failure. They likewise ignore the accounting procedure of handling business, having poor accounting records.
In this study the researcher intends to deal with the following problems:
- Common problem facing partnership business in the area of planning, finance and management
- The cause of this problem
- How to solve the problem
- The future prospects of partnership business in Nigeria