Types of Business Writing a Partnership Agreement
Entrepreneurs should write a partnership agreement
In general, businesses are divided into four broad
categories, depending on their primary function and
the kinds of products they sell.
Manufacturing Businesses
A manufacturing business (manufacturer) converts
materials into goods suitable for use and then sells
those goods to others.
Manufactured products typically fall into two
categories: industrial and consumer.
Wholesaling Businesses
A wholesaling business (wholesaler) buys goods in
large quantities, typically from manufacturers, and
resells them in smaller batches to retailers.
Retailing Businesses
A retailing business (retailer) buys goods, often from
wholesalers, and resells them directly to consumers,
who are the end buyers.
Service Businesses
A service business provides services to customers for
a fee.
Trends in Business Startups
A franchise is an arrangement in which an
established company sells the right for others to use
the company’s name and operating plan to sell
products or services.
Types of Business Ownership
Liability of Business Owners
When considering the types of business ownership,
an important consideration is the owner’s liability.
Unlimited liability means that a business owner can
be legally forced to use personal money and
possessions to pay the debts of the business.
Limited liability means that a business owner cannot
be legally forced to use personal money and
possessions to pay business debt.
Sole Proprietorships
A sole proprietorship - is a legally defined type of
business ownership in which a single individual owns
the business, collects all profit from it, and has
unlimited liability for its debt.
How to Set Up a Sole Proprietorship
1. Naming the Business. An entrepreneur may
choose to use his or her name as the business
name.
2. Tax I.D. Number.
Partnerships
A partnership is a legally defined type of business
organization in which at least two individuals share
the management, profit, and liability.
before they go into business together. A partnership
agreement is a legal document that clearly defines
how the work, responsibilities, rewards, and liabilities
of a partnership will be shared by the partners. It also
specifies what will happen if a partner dies or decides
to leave the business. A well-written partnership
agreement can help partners avoid conflicts and
concentrate on managing and growing the business.
Corporations
A corporation is a legally defined type of business
ownership in which the business itself is considered a
type of “person” (often referred to as an “entity”)
under the law, and limited liability is granted to the
business owner(s).
The owners of a corporation are called its
shareholders or stockholders. A share of stock is a
unit of ownership in a corporation.
Cooperatives
A cooperative is a business owned, controlled, and
operated for the mutual benefit of its members—
people who use its services, buy its goods, or are
employed by it.
Effective Business Communication
The six qualities of good communicator are:
1. Briefness
2. Organization
3. Clarity
4. Relevance
5. Courtesy
6. Suitability
Written Communication
Business Letters
Business letters are used for longer or more official
messages.
Memos
A memo (short for memorandum) is a brief note that
informs employees about a business-related matter.
E-Mail
As you know, an e-mail is a message that is sent and
received electronically over a computer network.
Faxes
Fax is short for facsimile an exact copy of something.
A fax machine uses telephone lines to transmit a
copy of a document.
Spoken Communication
To be a good speaker yourself, remember these points:
1. Speak Clearly
2. Draw in the Entire Audience
3. Encourage Participation
4. Read the Mood of the Room
5. Use Gestures
Telephone Calls
With wireless technology, making business calls is
more convenient than ever. But receiving them is not
always convenient. Here are five tips for making
effective phone calls:
Guidelines for Productive Negotiations
Negotiations may take place in person, over the
phone, by e-mail, or by instant messaging. Whatever
the situation, these guidelines will help make the
discussion productive:

1. Identify yourself immediately. Even people 1. State your offer firmly

who know you might not recognize your 2. Explain your position
voice at first. 3. Look for common ground.
2. Ask if the person has time to talk. 4. Be willing to make compromises
3. If you’re put on hold, be patient. 5. Put the offer in writing
4. If asked to leave a message, be sure to 6. Weigh the short term and long term
include enough information to help the consequences
recipient prepare a response and return your 7. Take time off
call.
5. When someone can take your call, give the
conversation your full attention.

Conference Calls
A conference call allows three or more parties in
different locations to speak to each other over the
same phone line.

Videoconferences
A videoconference offers “the next best thing to being
there.” A videoconference is a meeting in which
participants in different locations see and hear each
other through monitors, cameras, microphones, and
speakers.

Instant Messaging
More and more, advances in technology are creating
forms of communication that combine writing and
speaking. Instant messaging (IM) is one popular
example. Instant messaging is immediate
communication using typed text over the Internet.
Like e-mail, instant messages are written. However,
they are exchanged nearly as quickly as talking.

The Importance of Listening

A critical aspect of communication is listening: to be
more specific, the ability to listen actively. Active
listening is listening consciously and responding in
ways that improve communication.

1. Focus on the Speaker

2. Give Feedback

What Is Negotiation?
Both situations involve negotiation. Negotiation is a
process in which two or more parties reach an
agreement or solve a problem through
communication.

Outlining the Issues

Before you can negotiate, you need to decide what
you hope the outcome will be. Answering these four
questions can help clarify your negotiating goals:

1. What do you need and what do you want?

2. What concessions can you make?
3. What concessions can you ask of the other
party?
4. What will you do if you can’t reach an
agreement?