A delay due to the different thinking, ideas of

A business organization’s main aim is to archive certain commercial goals, in individual or group basis. Business Organizations are mainly categorized into profitable and non-profitable organizations. On Profitable organizations are implemented for social / public welfare purposes whereas profitable organizations are mainly concerned on profits. partnership business companies include to the profitable organizations .Partnership businessPartnership is the relationship which subsist between two or more people carrying on a business in common with the view of profits. A partnership business consists with two or more people in the business. They have unlimited responsibilities towards the business. In a partnership business partners provide the agreed capital in order to carry out the business. There are many strengths and weaknesses to be considered when starting off a business. Having more partners Is a strength to the business when it comes to the collection of capital. Having many partners with different combinations of skills knowledge ideas and experience is an added strength to the organization which will help to take successful business decisions. Losses and risks are equally shared among the partners rather than one person bearing the whole risk. A partnership business can be easily started with less legal intervention. Weakness of a partnership business is the unlimited responsibility of the partners and partners may end up in conflicts and misunderstanding during the business. Decision making may delay due to the different thinking, ideas of partners. This might take time for all the partners to agree to one decision. The delays may cause complications in the business. Sometimes the process of profit sharing in the business in between the partners may affect the smooth run of the business activities and end up in conflicts. These situations may cause the partnership to come to an end.Limited CompanyA group of people working together can be defined as a company or a legal entity separated from its owners which is incorporated under the companies’ act can be defined as a company. The word corporation is used to define a company in English the word ‘Corpus’ is used in Latin which means the body/ body of people. There are both strengths and weaknesses of Incorporated Companies. When we focus on the strengths, the liability of the shareholders is limited. Ability to raise a large amount of capital, tax reliefs, and ability to transfer shares are the benefits received from an incorporated company. In addition to the above mentioned benefits, ability to gain economies of scale from large scale production can be cited as a distinctive advantage.When looking at the weaknesses of limited company the starting procedure and the managing procedure is complicated and the initial cost is high. Legal influence for the limited company is high. Further the limited companies fall under duel tax paying category where taxes should be paid by both the company profits and shareholders profit share (Dividends). Losses incurred by the company retain within the organisation. In my Opinion a partnership will be the most suitable for Mr. Fernando and Mr. Perera. Since Mr. Fernando and Mr. Perera are new to the business field and to the restaurant industry they will require sometime to establish the brand name and to attract customers as well as to retain customers. They also can start with a smaller amount of capital and the legal requirements which should be fulfilled to commence a limited company is much more complicated than commencing a partnership.2)discuss three main distinctions/differences between financial accounting and management accountingFinancial accounting is a subject which emphases the day today transactions happened in the certain organization .The recording s of transaction directs to a  proper standard financial statements which are named as balance sheet ,income sheet . the way of recording transactions can be manipulated debiting  and crediting.Management accounting provides information related to the decisions on the management functions such as planning ,organizing ,leading  & controlling. The main aims of management accounting are providing information  when taking management decisions  ,providing information organize company functions &providing operational information to conduct the daily operations of the business.Differences between financial accounting  and management accounting Financial accounting is prepared for the past years and management accounting is prepared for the future time.According to the  nature of information , financial accounting supply past information and  management accounting supply information regarding future income & expenditures.Financial accounting is use by the internal & external parties and management accounting is use only by the managers.Financial accounting is a legal requirement &management accounting is not a legal requirement.