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Effective Alignment

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We are in the era of technology wherein the stance of globalization is on its peak. The business activities are so high in this current environment and the time is not so far when we set up a business on the moon as well. In the filed of business, the recording and interpreting the data is so important but the thing which is beyond from just crunching the number is the establishment of partnership or alignment in a business.

The main theme of this paper is to pen down a situation where we align a partnership with any other business personnel. Our main emphasize of this assignment is on describing the pros and cons of the partnership along with the possible barriers of partnership. We have decided to complete this piece of work with immense care and study which will benefit all the readers equally. To accomplish the same, we first decide to incorporate a short briefing of partnership and then we will shift the gears towards our case. The essence of partnership is very important in the field of business and accounting (Lewis, R, 2004). A partnership is an arrangement where entities and/or individuals allow cooperating to expand their interests. In the most regular instance, a partnership is formed between one or more businesses in which partners (owners) co-strive to achieve and split profits or losses. Partnerships have widely unstable results and can award partners with singular challenges. Levels of give-and-take, areas of responsibility, outline of penalize, and overarching goals of the partnership must all be negotiated. Now after the basic introduction of the term partnership, we are ready to leap over the personal alignment of partnership which we have created (Rachev, S.T, 2008).

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I have engaged in a partnership alliance only one time. I have always an inclination to open a brokerage house because my studies are totally relevant to it. The only problem which I faced is the lack of sufficient funds to operate such a business. Once, one of my colleague furnished his intentions before me regarding the opening of a brokerage house, I instantly replied that I am interested in the partnership. That was my first ever partnership in a business and I was so desperate. There are a number of factors which I had used to come up on the decision of partnership. The first factor is obviously the dearth of funds; the second is that I want to multiply my income quickly so I used partnership as my earning multiplier. Making a partnership like this is relatively easy than making a partnership with a client. The reason behind the fact is that, the client is the most influential thing for an organization. Factors which influence the alignment of partnership with the client include the promise to earn a specific amount of profit over the investment of the client with any risk and keep in touch with the client before taking any economic decision. According to a large number of finance professionals such type of influential factors eliminate the factor of independence and objectivity from the investment decisions which may harm both the partnership among the client & the partner and their fiduciary relationship as well. Their can be a number of advantages and disadvantages of partnership. The most prominent advantage of the partnership is that every partner has a specific level of risk bearing or liability but the decision making stance is disturb due to the occurrence of more than one partner is the biggest disadvantage of partnership. The techniques used to identify the alignment include the potential benefit recognition resulting from that alignment and the amount of risk associated with it. Before initiating the alignment, both the parties have to comply with the partnership rules described in Partnership Act to better operate the business. Proper documentations are required to reduce the potential barriers among the alignment which resultantly enhance the relationship between the partners.

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